The reason why products cannot be sold on shelves is because of these ten points!
The inability to sell products on shelves is a problem faced by many enterprises, so what is the reason for these problems? We can only achieve "targeted treatment" by finding the cause.
I Product reasons
1. Wrong product selection
The regionalization characteristics of products in the market are becoming increasingly evident, and markets in different regions require different specifications, packaging, and flavors. Even for flavors with the same name, the requirements of different markets are different. However, many companies operate in different regional markets without realizing the regional differences, resulting in unsold products once they are on the shelves.
A certain instant noodle enterprise is also quite cautious in product selection in order to develop the Northeast market. The main selling specification for products in the Northeast market is 30 packaging. However, in order to launch the market as soon as possible, the enterprise has decided to promote 24 packaging that differs from the specifications of its competitors, in order to implement a differentiation strategy and achieve the emergence of the product. However, after the launch of the 24 pack product, the result was quite eye-catching. Except for a few markets with certain sales, the original idea of using this specification as the main selling variety by the enterprise was completely failed. Moreover, in order to handle the inventory left in the hands of customers and the products stranded in the market, the enterprise must not allocate special fees to handle it, Finally, the company had to change its decision to operate the market with 30 packaged products and achieve remarkable results.
2. The product concept is too advanced or the launch time is not well controlled
It is entirely correct to achieve significant breakthroughs in the market by grasping the potential demand of the market and developing targeted products. However, if the product concept is too advanced, it can lead to an awkward situation where the product is placed on the shelf but cannot be sold after being launched.
A laundry detergent enterprise in Shandong Province, under the pressure of low profits from ordinary laundry detergent, decided to launch sterilized laundry detergent through research on foreign laundry detergent products. However, due to the fact that this type of laundry detergent is not accepted and recognized by domestic consumers, the product appeared on shelves but cannot be sold after being launched, In addition, the company does not have more funds and strength to promote this concept of product and has to declare that the product has come to an end. However, with the arrival of SARS, Chinese people suddenly became interested in this concept of products due to health concerns. Therefore, laundry detergent companies such as Libai seized this opportunity and quickly brought the concept of products to the market and gained great popularity.
3. Product aging
Product aging means that the product's lifecycle has entered a period of decline, but if companies are not aware of this issue and continue to increase efforts to sell such products, there will be a situation where products are placed on shelves but cannot be sold.
4. The product enters a period of extinction
Social changes and the rapid advancement of science and technology can lead to certain products disappearing on their own. It is not surprising if such products are still on the shelves and cannot be sold. For example, a few years ago, pagers still had a place in the communication market in China, but now with the popularization of mobile phones, pagers have no market. If stores still put pagers on shelves, it may not be surprising that they cannot be sold.
5. Products developed behind closed doors
2、 Price reasons
1. Pricing is too high
If a company sets prices based on its own requirements, regardless of the specific market situation, it will lead to consumers not buying the products after they are placed on the shelves and unable to sell them.
In 2004, Uni Hefei Company developed a strong new product. When pricing, the company disregarded the specific market situation and the unanimous opposition of distributors to pricing from the perspective of the company's own profits. As a result, the product was not accepted by the market as soon as it was launched, leading to a sharp decline in market sales. Later, the company had to increase promotion efforts and reduce prices to reverse the situation.
2. Pricing is too low
Just like overpricing, if a company sets a price too low, it will also make consumers not buy it, because for certain products, the price too low will make consumers doubt the positioning of the company's products and believe that there is a problem with the quality of the products, so they will not buy - your product is priced so low, and your quality will inevitably have problems, leading to products being left unattended on the shelves.
A certain company's weight loss product is very popular in the market, but in order to quickly increase sales and expand market share, the company took advantage of a holiday opportunity and suddenly lowered the price. However, once the price is lowered, consumers are actually afraid to purchase - your price has dropped so much, indicating that there is a problem with your quality. Once I buy such a product, who will be responsible for it? It is still for the sake of life that I cannot buy it.
3. Unreasonable pricing of channels
Unreasonable pricing and chaotic pricing system in the channel result in a lack of sufficient motivation for the channel and the inability to sell products on the shelves.
3、 Display reasons
A good display not only improves product sales, but also serves as a promotional and stimulating reminder to consumers for new products in new markets. However, if a company does not understand product display, it can cause a situation where products cannot be sold on shelves in the market, especially in new markets. The display of products should be vivid and have sufficient visual impact on consumers.
4、 Promotion reasons
The purpose of promotion is to solve the problem of products being sold on shelves, but improper promotion not only wastes money for enterprises but also leads to the problem of products not being sold on shelves. The main manifestation is that the promotion does not combine the needs of the store and consumers, which cannot stimulate their interest in promoting and purchasing. The promotion methods and products have just been adopted by competitors, and the promotion efforts are too large or too small.
5、 Reasons for the execution ability of marketing personnel
For new markets and products, after the product is placed on the shelves, a series of tasks such as tally, promotion, market follow-up, and display need to be carried out by the company's marketing personnel to quickly make the product recognized and purchased by consumers. However, if the execution power of marketing personnel is not strong, they often ignore the product after it is placed on the shelves. As a result, when the product cannot be sold on the shelves for a long time and needs to be returned, they start to look for objective reasons.
6、 Dealer reasons
If distributors do not take the product seriously, they will not actively promote it, necessary after-sales service is not guaranteed, customer relationships are not maintained, and the distribution area is too small, all of which can lead to the situation where the product cannot be sold on the shelves.
7、 Reasons for competing products
Some companies will take measures to eliminate competitors in the market when the market is in a strong position, and increase efforts to inventory the market when the peak season arrives. This will make those stores that have pressed a large amount of inventory eager to promote and quickly recover funds, while other products cannot be taken into account, making these vulnerable products even more difficult to sell on the shelves. Generally speaking, vulnerable products are most likely to be unsold on shelves.
8、 Reasons for weak market control
If a company lacks control over the market, such as causing chaos in the market price system due to hoarding, it will reduce the enthusiasm of consumers and stores to consume and promote the product.
9、 Reasons for corporate policies
If enterprises lack a regional strategy and strategy, they often make the decision to launch a new product and force it to be promoted nationwide, and establish strict reward and punishment systems. This will lead to marketing personnel not being fined or receiving rewards in order to produce products in the market according to market needs, resulting in products that are not suitable for the local market being laid out in the market. However, the results are self-evident.
10、 Market out of stock
If a product is out of stock for a long time, once consumers switch to other products, the situation where the product cannot be sold when it is placed on the shelf becomes a smooth chapter.
