how come soft drink companies have their own people set up displays in supermarkets and gas stations, instead of the workers having to put it out like the other products?
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It’s not just soft drinks, but the salted snacks brands and cereal brands, and others, often have their own people do stock management and display. In part, they want to be sure they are shelved correctly. They pay the stores for a certain amount of shelf space and this way they can ensure they get the full space allotted to them. Encroaching on other brand’s’ shelf space is common. They also want to make sure it’s displayed on the shelves neatly.
So because when a promotion is on the shop will just put out the easy ‘st thing. as the wharehouses are quiet small and they gave a lot of delivery’s so stuff gets buried behind other stuff .
I used to work for Britvic who is Pepsi supermarkets would just drag out a pallet of the nearest cola so they would send us in to do the job and they sold more product.
Because then the vendors are responsible for inventory and not the store. They dont have to worry about product expiring because anything nearing its expiration date will get pulled and moved to a higher traffic location to sell it.
On top of what everyone else has said regarding shelf space and product management
Grocery stores/gas stations are like real estate – all these suppliers are competing for a limited amount of space to put their products in. Suppliers will offer whatever they can (including favors such as stocking shelves) to get more “real-estate” (via displays or extra shelving). More real-estate on shelves/displays means more products/bigger variety of products being put into the store, which means more sales for the supplier. Since one supplier is already offering these favors, everyone else now has to do the same in order to stay on equal footing.
It’s done as an incentive to encourage stores to stock more of them. “If you stock our products, we’ll do all the work of putting up a display that’ll help you sell more and make more money.”
This is done for a lot of products besides soft drinks. Companies pay for prime placement of their products, part of that payment (and also to ensure it’s displayed how they want), is sending their own people to do it.
Grocery stores set up contracts where they essentially rent shelf space.
Vendors (like soda bottlers) are expected to stock their own goods on those rented shelves.
There is a concept pioneered by many of the fast moving consumer goods companies especially soft drinks called “vendor managed inventory” where the supplier decides how much and what mix stock is held in stores. Sometimes even prices. The companies are essentially renting shelf space. Retailers would get in a lot of trouble for colluding on deals and sale timing. But the vendors can know if store A is having a big sale on something influenced by sales then store b is likely to not sell as much. The total soft drink sales in an area is pretty steady but the mix by stores can vary a lot. The biggest and most powerful retailers Walmart, Costco, Target have pushed back on these things because it gave the most information and power to the suppliers but smaller places it is a good arrangement for maximizing total sales.
It’s true, you often see people in special uniforms restocking and arranging soft drinks instead of supermarket or gas station employees. Here are a few reasons why:
**1. Attention-grabbing displays:** Soft drink companies want their products to stand out and be the first thing you see. They invest in eye-catching displays that wouldn’t fit the standard shelves and require special skills to set up. Think of it like building a cool fort instead of just throwing toys in a bin!
**2. Promoting new flavors and deals:** These special people, often called merchandisers, are experts at showcasing new flavors and promotions. They know how to arrange the drinks to tempt you with the latest and greatest options.
**3. Keeping things tidy and stocked:** They make sure the display looks its best, facing bottles forward and refilling empty spaces quickly. This keeps the soft drink section looking inviting and avoids customers missing out on their favorite drink.
**4. Faster restocking with specialized knowledge:** They’re trained on specific products and know exactly where everything goes. This helps them restock faster and more efficiently than someone who might not be familiar with all the different flavors and sizes.
**5. Representing the brand directly:** They act as mini-ambassadors for the soft drink company, answering questions you might have about their products and promotions. So, next time you see them, feel free to ask about the newest flavor or a cool recipe using their drinks!
Remember, this doesn’t apply to all drinks or stores, but it’s a common practice for big brands to invest in making their products stand out!
It’s space. Soft drinks, chips, bread etc are high volume products that take up a lot of physical space. The backroom of supermarkets can only accommodate so much stock/backstock. That’s why the companies send trucks everyday.
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