The Key to Securing Your Fair Share in the Growing RTD Category
Competing for limited shelf space is a continuous challenge in the beverage alcohol industry, especially in emerging sub-categories. The growth and popularity of the Ready to Drink (RTD) category, for example, have been driven by consumers’ desire for high-quality, portable cocktails and flavor innovation. As the RTD cocktail category grows at an estimated CAGR of 14.20% between now and 2030, every Supplier aims to get their fair share of space in the set.
The Fair Share Challenge
Wine and spirits companies have a wealth of category management insights to help optimize assortment strategies and understand overall market share to compete more effectively. There’s retail data surrounding sales, movement, and inventory, just to name a few, and visual planograms from Retailers outlining placement and space changes.
After analyzing that treasure trove of information, Suppliers have the insight to conclude two important data-driven facts:
- I know how my products are performing.
- I can confirm my product is the third-largest selling item.
What Suppliers are left wondering is: Do I have the third-largest amount of space, considering I have the third-largest selling item? Suppliers should know this as it helps seize growth opportunities in your category segment.
What’s the Missing Link?
Despite all the visually rich data provided in a planogram, Suppliers don’t have quick and easy access to the numerical information behind each planogram. With planogram PSA files from hundreds or even thousands of retail locations, the effort required to extract the numbers is manual and labor-intensive. But the data is the key to calculating the Fair Share Index, and insights from the Fair Share Index are the missing link to a comprehensive share of shelf analysis.
A Tech Enabled Solution
Let’s be honest—sticking with manual processes in today’s digital landscape is not going to generate timely insights or support agile teams that can course-correct and stay competitive. The modern solution lies in space analysis technology paired with high-performance automation.
One such technology solution is Planomart. Today, it is the only solution on the market that can extract numbers from PSA files in minutes, not months. Planomart gives smaller category management teams the capabilities of a 30-person army. The powerful Planomart solution can calculate Fair Share Index with true space data in the numerator effortlessly, eliminating a cumbersome task and fast-tracking insights.
The magic of Planomart is that it can build a space management story that confirms the following:
- Your product performance.
- Your product is the third-largest selling item.
- You do not have the third-largest amount of space at retail.
- There are four competitors over-indexed.
- You are not getting your fair share.
Put Insights to Work with Retailers
The next time a Retailer attempts to take space away because they believe a replacement product will increase their overall profits, it’s your job as the Supplier to say, “Are you sure?”
Utilize the Planomart solution on a tablet or smartphone to present your case to the buyer. Leverage insights to outline over- and under-indexed products and highlight how you’re helping them grow the category and support their customers. Take this opportunity to get in the buyer’s ear because they don’t often possess an in-depth analysis of all brands and vendors. Be a good partner, collaborate, and impress buyers with a neutral, unbiased space analysis that outlines facts and provides answers based on data, not guesswork.
