Vendors Don't Get It

This morning's Supermarket News headlines featured this item. These links don't last long, so here's the whole thing:

ARMONK, N.Y. (February 22, 2005) - A global survey of more than 100 retailers and consumer products companies shows a disconnect between the two groups that could threaten productivity, according to IBM Business Consulting Services here, which conducted the survey. Only 9% of retailers surveyed by IBM felt their suppliers had a good understanding of their business objectives. Retailers expressed low satisfaction with suppliers in areas like consumer insight development and promotional design and execution, according to IBM. "Having historically focused on the consumer as their only 'customer,' consumer product companies must now seek ways to better understand and provide added value to their retail trade customers as well," said John Breuer, Consumer Products Industry Partner, IBM BCS, in a statement. "They have to balance the rapidly evolving needs of savvy consumers with powerful retail customers who are demanding exclusive services, pricing and products. To do that effectively, CP companies must redefine the way they do business."

The quote in bold (my emphasis) is full of truth. It's not good enough to make a good product these days. That's just the starting point. Like it or not, selling to large retailers -- and gaining access to their customers -- is about much more than that. If that's the distribution path you want, then you better do your homework and be prepared to play by the new rules.