Retailers Must Enhance Their Value Statement In 2010

Position Your Brand With New Items Offering Added Value

In an earlier article, I elaborated on the changing buying mentality of the consumer in these challenging times. Customers have migrated towards more of a needs-based buying mentality from a mixed wants and needs based buying pattern that we have witnessed in more buoyant markets.

Spring is a mere two months away and retailers should be scrutinizing their product mix to ensure that they offer new products with added value for the new buying mentality. Customers are becoming more discriminating with their purchases and will buy new and innovative items that offer a higher level of durability, quality or that simply do more for them for less money.

What attributes will customers look for this year? It’s obvious that price will be the top criteria in the buying decision process. However other product attributes will induce customers to buy of they’re impressed with new an innovative items:

Merchandise that last longer - a car battery that can last 60 months, likely that last car battery you’ll ever need to buy

Items that can do more than one task - a cell phone with a built-in camera is a popular example

Products that are “green”, waste less and are good for the environment - concentrated cleaning supplies with all natural ingredients appeal to many families

Products that now offer more for the same price - food products with 20% more such as cereals, or other consumables appeal to value conscious consumers

Other strategies to add value to products, if you do not plan on adding new and innovative new merchandise lines can include:

Enhanced or extended warranties that are included at no extra charge and offer longer protection for the consumer

Added bonus items added to products will also improved the perceived value of the purchase.

This year, consumers will look for durability, versatility and price as top purchasing criteria in order to maximize the return on investment of their hard earned dollars. This approach to purchasing will be universal within the consumable, clothing and hard goods categories.

Take Action Today:

1) Review your current inventory mix and plan to introduce new product lines that do more for the customer for a great price.

2) Examine the other outlined strategies to enhance your value statement to the consumer.

3) Aggressively promote your enhanced value statement through media advertising and in store signs. Make sure the customers know what’s new and improved in your store!

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