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The Marketing Edge
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Understanding the
multiples
The UK supermarket
chains, or multiples, are dynamic, sophisticated and very
effective marketing machines. They constantly identify
trends in consumer needs, frequently ask ‘what market
are we in’ and always strive for competitive advantage.
Any producer that can
help them achieve competitive advantage will be attractive
to them. This can be achieved by:
(a) providing exclusivity
of supply
(b) offering a cost and therefore retail price advantage
(c) making available tailor-made promotional activity.
Consistency of product
quality, availability and delivery will be crucial for
the relationship to be maintained.
Suppliers must decide
whether the conditions set by the multiples is acceptable
to them; offering exclusivity of supply to one multiple
may sour a current or potential relationship with another.
Price cutting may have a knock-on affect and begin to spiral
out of control.
Over the past decade
the multiples have been working hard at developing sustainable
relationships with smaller producers and now realise the
competitive advantage they can gain by doing so. Working
with the multiples still offers many smaller suppliers
considerable challenges, but the rewards of high exposure
and big volumes may make their bureaucratic idiosyncrasies
worth accepting.
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