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Trade Marketing is a branch of marketing that focuses on increasing demand for a product at the distributor, retailer or point of sale level, rather than at the end consumer level. This strategic approach is designed to improve collaboration between manufacturers and sales channels, optimizing how a product is presented and sold in the market. At its core, Trade Marketing seeks to ensure that manufacturers and merchants work together to maximize sales and profitability. The main objective is to increase the rotation of products in the stores, building solid commercial relationships of trust with the sales channels, so that they are promoted preferentially to the Shoppers or Buyers of the stores. This, in turn, helps manufacturers ensure better market positioning, greater brand visibility, and increased sales. Trade Marketing began to take shape in the 1960s when manufacturers sought more effective ways to collaborate with retailers to influence the presentation and sale of their products. At this time, mass production had increased competition on store shelves, and manufacturers needed to ensure their products stood out. Starting in the '80s, Trade Marketing was formalized as a "distinct" discipline within marketing departments. Manufacturers began to recognize the importance of adapting their strategies not only to consumers but also to retailers, and other distribution channel partners. Specific strategies were developed to manage the relationship with retailers, optimize product placement, and improve promotions and merchandising at the point of sale. Relationship between Category Management and Trade Marketing Yes, Category Management is a key function within Trade Marketing. It is a process that involves the management of product categories as strategic business units, to maximize sales and profitability. This practice is closely aligned with the objectives of Trade Marketing since both seek to optimize the product offering at points of sale and improve collaboration between manufacturers and retailers. With the rise of information technology and electronic commerce, Trade Marketing began to use data and analysis to improve decision-making, and the concept of Category Management flourished in the early 2000s. Collecting and analyzing data on sales, consumer behavior, and promotional effectiveness allowed companies to adapt their strategies more effectively to meet the needs of retailers and consumers. Specifically, 3 key areas in common justify classifying Category Management as an area of Trade Marketing specialization: Point of Sale Focus: Both focus on improving the presentation and availability of products at the point of sale, ensuring that the right products are available at the right time and place to meet consumer demand. Store Sell-Out Data Analysis: Category Management uses data analysis to understand consumer purchasing behavior and market trends, allowing Trade Marketing companies to develop more effective and personalized strategies. Manufacturer-Retail Collaboration: At the heart of both functions is collaboration between manufacturers and retailers. Category Management often requires collaborative work to direct the definition of product assortment strategies, pricing, promotions, and in-store placements that will benefit both the retailer and the manufacturer. This joint planning process is known as a Joint Business Plan. In today's digital environment, Trade Marketing has continued to evolve, integrating digital tools and advanced analytics to create more precise and personalized strategies. Collaboration between manufacturers and retailers has intensified with the development of e-commerce platforms, omnichannel marketing, and customer relationship management (CRM) solutions. The objective is still to improve product visibility and increase sales, but with a much more integrated approach between physical and digital stores, which makes it necessary for commercial teams to develop skills in what we know as Digital Trade Marketing. In summary, Trade Marketing has gone from being a sales tactic to a comprehensive strategy that encompasses market analysis, collaboration between channels, and optimization of the purchasing experience for the end consumer. Its evolution reflects changes in the market, technology, and consumer expectations, continually adapting to improve business performance and customer satisfaction. If you also want to delve deeper into the differences between Trade Marketing and Shopper Marketing, I recommend you read our other post, available at this link.

In the current digital age, consumer manufacturers and retail chains are facing unprecedented challenges. E-commerce is rapidly growing, consumer behaviors are changing, and technology is advancing. This demands a drastic rethink of traditional business models. To not only survive but also thrive in this new landscape, companies need to innovate their business models. It is no longer an option; it's a necessity. In this article, we will explore few ideas of how consumer manufacturers and retail chains can adapt to the digital era by innovating their business models. Embracing Direct-to-Consumer (D2C) Channels One significant shift has been the move towards Direct-to-Consumer (D2C) sales channels. Traditional intermediaries are bypassed as manufacturers and brands engage directly with consumers online. This approach not only enhances customer relationships and data collection but also increases profit margins. By embracing D2C, businesses can offer personalized products and experiences, fostering brand loyalty and differentiation in a crowded marketplace. In the digital age, data is king. Consumer manufacturers and retail chains can harness the power of data analytics to understand customer preferences, behaviors, and purchasing patterns. By leveraging this information, businesses can create personalized marketing campaigns, product recommendations, and shopping experiences. Personalization not only improves customer satisfaction but also drives sales and enhances brand loyalty. However, while the shift towards D2C channels offers numerous advantages, it is not without its challenges, particularly when it comes to the potential impact on relationships with key retailers. As manufacturers navigate this new terrain, understanding and mitigating these risks is crucial. Alienating Key Retail Partners: One of the most significant risks of adopting a D2C model is the potential alienation of existing retail partners. Retailers may view the manufacturer's move to D2C as a direct threat, fearing that it undercuts their business and turns their suppliers into competitors. This perceived competition can strain relationships, leading to a reduction in shelf space, less favorable terms, or even termination of partnerships. Brand and Pricing Conflicts Manufacturing companies embarking on D2C strategies must carefully consider their pricing and branding approaches. Pricing products lower on their direct channels than what is available in retail can lead to significant friction with retail partners. Similarly, exclusive promotions or products offered only through D2C channels can alienate retailers who feel they are being bypassed or undercut, damaging long-standing business relationships. Channel Conflict and Cannibalization Channel conflict is a common concern when manufacturers sell through multiple channels. Retailers may be wary of stocking products that are also sold directly to consumers by the manufacturer, fearing cannibalization of sales. This situation can create a competitive environment between the manufacturer's channels, leading to inefficiencies and a dilution of efforts to market and sell products effectively. Logistical Challenges and Costs Expanding into D2C requires manufacturing companies to take on additional roles and responsibilities that were traditionally handled by retailers, such as customer service, fulfillment, and returns. This shift can lead to significant logistical challenges and increased costs. If not managed properly, these new responsibilities can strain the manufacturer's resources and affect the overall quality of service, potentially harming the brand's reputation. Strategic Misalignment and Resource Allocation Embracing D2C channels often requires a shift in strategy and resource allocation. Manufacturing companies must ensure that this new focus does not detract from their core business or lead to neglect of their traditional retail channels. Misalignment between D2C efforts and overall business goals can lead to fragmented strategies, confused messaging, and inefficiencies across the organization. Mitigating the Risks To mitigate these risks, manufacturing companies should adopt a balanced and strategic approach to D2C: Transparent Communication: Maintain open and honest communication with your key accounts about D2C strategies and goals to alleviate concerns and foster collaboration. Channel Differentiation: Differentiate product offerings, promotions, and pricing strategies across channels to minimize direct competition with retail partners. Invest in Relationships: Continue to invest in and support retail partnerships, ensuring that the move to D2C adds value to the overall brand and product ecosystem. Integrated Approach: Develop an integrated channel strategy that aligns D2C and retail efforts, leveraging the strengths of each to maximize overall market reach and customer satisfaction. Customer Focus: Prioritize the customer experience across all channels, ensuring consistency in service, quality, and branding. Conclusion By carefully navigating the complexities of adopting D2C channels, manufacturing companies can leverage the advantages of direct customer engagement while maintaining healthy and productive relationships with key retail partners. The digital era presents both significant challenges and opportunities for consumer manufacturers. By innovating their business models to embrace D2C channels, companies can not only survive but flourish. TMC Consultores stands ready to guide businesses through the complexities of innovation and digital adaptation, ensuring they remain competitive and resilient in the face of change.

In recent years, we have witnessed a phenomenon that redefines the global retail and manufacturing landscape: the rise of private labels. This change represents an evolution in marketing strategies and poses new challenges and opportunities for manufacturers of mass-consumption products. Inflation has been a very important catalyst for the shift towards private labels. With the increase in prices of consumer goods, buyers have sought alternatives that allow them to maintain their purchasing power without sacrificing quality. Private labels have emerged as an attractive solution, offering products at more affordable prices without compromising quality standards. According to recent data, traditional brands are growing between 3% and 5% annually, while private brands are growing at a rate of 18% to 25% in the retail segment. Europe has been a pioneer in the adoption of private labels, with a significant market share. The success of private labels in Europe is largely attributed to discount stores or Hard Discounts, which have capitalized on the demand for quality products at discounted prices. In Western Europe, private brands represent 36% of the market, a trend that continues to rise and has rapidly expanded in Latin America (See Tuti's success story in Ecuador). In the United States, the strategy has been to focus on the innovation and quality of private brands. Retailers have invested in development and marketing to ensure that their private brands not only match, but often surpass, those of manufacturers in quality. This has led to sustained growth and positive consumer perception. The US cosmetics market, a significant segment for private brands, is projected to reach $106.74 billion by 2029, growing at a CAGR of 2.63%. Additionally, Walmart has demonstrated the success of private brands with four of the top five brands in the United States, with Great Value being one of the most purchased by 72.7% of consumers. Challenges and Opportunities for Manufacturers in the Face of the Growth of Private Brands For mass-market manufacturers, the growth of private brands represents a significant challenge, but also an opportunity to innovate and adapt. It is crucial for manufacturers to collaborate with retailers to develop private label products or improve the differentiation and value of their own brands to remain competitive. Among the main challenges we can find: Price Competition: Price pressure is a significant challenge, as private labels often offer lower prices due to lower marketing and distribution costs. Loss of Bargaining Power: As retailers concentrate and gain influence, manufacturers may face difficulties in negotiations, losing power to large chains. Need for Differentiation: With the rise of private labels, manufacturers must do more to highlight the value and uniqueness of their own brands to justify a price difference. Adaptation to Sustainable Consumption: The growing interest in eco-sustainable products requires manufacturers to modernize their production and distribution processes. However, not everything is a challenge on this issue of Private brands. We can mention some of the main opportunities that manufacturers are finding: Collaboration with Retailers: Working together with retailers to diversify the offer can be a successful strategy, allowing manufacturers to have an active role in the development of private brands. In this sense, starting a collaborative planning process or Joint Business Plan with your key account is an opportunity. Disruptive Innovation: Moving from incremental to disruptive innovation can open new markets and meet future consumer demands. Production Cost Reduction: Producing your key account's private label can increase the uptime of your factory and reduce the unit cost of the rest of your portfolio. Portfolio Renewal: Diversifying and renewing portfolios in response to changing consumer preferences can help manufacturers stay relevant and competitive. Conclusion Private labels have proven to be more than a passing trend; They are a disruptive force in the mass consumption and retail markets. Manufacturers must recognize this paradigm shift and adapt their strategies to thrive in this new market environment.

The hard discount phenomenon has been gaining strength in Latin America in recent years, offering a value proposition focused on low prices and operational efficiency. This business model, which is characterized by its limited variety of products, smaller spaces and a strong commitment to own brands, has found fertile ground in the region due to the growing price sensitivity of consumers. The hard discount channel originated in Germany in the 1960s offering a wide variety of private label products, at low prices and a focus on efficiency and simplicity. In Europe, the Hard Discount channel already represents between 20% and 40% of retail in the countries of the bloc and in Latin America, this channel is in full development: Brazil: The number of stores grew 10% in 2022, reaching 12,000 stores, which represents a penetration of 25% and sales of around US$35 billion annually. Colombia: In 5 years, the number of stores has increased 9 times, reaching 3,750 stores in 2023, with a penetration of 36% and sales of US$ 5.5 billion per year. Mexico: It already has more than 2,000 stores, 20% household penetration and US$ 2.5 billion in sales per year. Ecuador: How has Tuti achieved success? Ecuador has witnessed a notable success story with the TUTI store chain. This hard discount format has managed to capture the attention of the Ecuadorian market thanks to its strategy focused on offering essential products at competitive prices, without sacrificing quality. TUTI has differentiated itself by its local focus, adapting its product assortment to the preferences and needs of Ecuadorian consumers, while maintaining an agile and efficient operating model. The company has achieved excellent supply chain management, ensuring product availability and rapid response to market demand. Additionally, TUTI has focused its efforts on creating a simple and fast shopping experience for the customer, reducing waiting times and offering a pleasant shopping environment. TUTI has implemented an effective communication strategy that highlights the values of price and quality, connecting emotionally with the Ecuadorian consumer. This has been complemented by a strategic location of its stores, facilitating access to a greater number of customers. The hard discount model represented by TUTI in Ecuador is a clear example of how companies can adapt to the economic and social realities of Latin America. By focusing on the basic needs of consumers and maintaining an efficient operation, TUTI has managed to not only survive in a competitive market, but also thrive, proving that it is possible to offer quality products at affordable prices. Sales in MM$ Tuti Tuti has multiplied its sales by 80x in three years, achieving 31% household penetration nationwide (according to Kantar), above or on par with retailers already well established in the country, this in a single region, Costa. Recently, they have entered the Sierra, capturing 39% household penetration in months. In summary, TUTI's success story in Ecuador reflects the opportunities that exist for hard discount formats in Latin America. Its focus on low prices, operational efficiency and adaptation to the local market has been key to its growth and acceptance by consumers. This not only benefits the local economy, but also offers a valuable purchasing alternative for Ecuadorian families, reinforcing the idea that quality does not always have to be at odds with price. It is necessary for traditional supermarkets to adapt to this new disruptive reality, establishing a clear positioning and role in their business for each category, enhancing their development in close association with some manufacturers, building loyalty among their regular customers, creating customer experiences. differentiated purchases and strategically using promotions to reduce the impact of the average sales ticket. At TMC we can give you support to develop the category for the benefit of your brands, with quick implementation solutions. Sources: Kantar World Panel, Euromonitor, ABRAS Brazil, ANDI Colombia, ANTAD Colombia, SIC Ecuador.

Understanding shopper behavior is more critical than ever in the fast-evolving landscape of consumer products. As market dynamics shift and consumer preferences change, businesses face new and complex challenges in shopper research. At TMC Consultores, we're dedicated to helping you navigate these challenges with insights and strategies that can drive your success. 1. Adapting to the Digital Shift The digital shift is one of the most significant changes affecting shopper research today. As more consumers turn to online platforms for their purchasing needs, traditional research methods must evolve. Understanding the digital shopper's journey, from awareness to purchase, is crucial. Companies must integrate digital analytics, social media listening, and online behavior tracking to gain a comprehensive view of their consumers' preferences and behaviors. 2. Dealing with Data Overload In today's digital age, data is abundant. While this provides an opportunity for deeper insights, it also presents the challenge of data overload. Sifting through massive datasets to find actionable insights can be overwhelming. It's essential to focus on relevant metrics and employ advanced analytical tools to derive meaningful conclusions. At TMC Consultores, we emphasize the importance of strategic data analysis to ensure that our clients make informed decisions based on accurate and relevant information. 3. Understanding Omnichannel Shopper Behavior The line between online and offline shopping is increasingly blurred. Consumers might research a product online but purchase it in-store, or vice versa. This omnichannel behavior makes shopper research more complex. Companies need to understand not just who their customers are, but how they interact with different channels during their shopping journey. Integrating data from various touchpoints is essential to create a unified view of the customer journey. 4. Emphasizing Personalization and Experience Today's consumers expect personalized experiences tailored to their needs and preferences. This shift requires companies to understand their customers at an individual level. Shopper research must go beyond demographics to include psychographics and behavioral data. By leveraging advanced analytics and AI, businesses can uncover insights into individual customer preferences and deliver personalized marketing messages and product recommendations. 5. Ethical and Privacy Considerations As shopper research delves deeper into personal data, ethical and privacy considerations become increasingly important. Consumers are more aware of their data rights and expect transparency and respect in how their information is used. Companies must navigate these concerns carefully, ensuring compliance with data protection regulations while still gaining the insights needed to understand their customers. Conclusion The challenges in shopper research for consumer products are significant but not insurmountable. By adapting to digital shifts, managing data effectively, understanding omnichannel behavior, personalizing customer experiences, and respecting privacy and ethical standards, businesses can stay ahead in the game. At TMC Consultores, we're here to help you meet these challenges head-on, with expert advice and innovative solutions tailored to your needs. Let's navigate the future of shopper research together, transforming challenges into opportunities for growth and success. Written by Carlos Ignacio Alfonzo, managing partner of TMC Consultores Comerciales. If you are interested in learning about TMC's consulting or training products in this area, write to us at contacto@tmcconsultores.com and we will immediately contact you. If we are not yet connected on LinkedIn, it will be a pleasure to have you in my network of contacts. If you want to evaluate the Shopping Experience of your customers in your strategic stores, write to me at cialfonzo@tmcconsultores.com and we will schedule a meeting. #shopperexperience #customerexperience #shopperresearch #shopperbehavior

If a mass consumption company or a network of stores does not understand the difference between Trade and Shopper Marketing in commercial management, it is surely limiting its competitive position regardless of whether its operation is only digital or if it does so omnichannel, that is, through a combination of physical and digital. One of the main discussions in consumer companies and retailers is the need to align digital channels with physical operation to guarantee that the Shopper's purchasing experience is the best possible. We know that having a physical and digital sales operation has significantly complicated the commercial operation, from strategic planning and monthly sales estimates to the design of the perfect omnichannel store. Initially, some processes and functions were simply duplicated as a result. Some companies have decided to assign the responsibility of developing e-commerce to a Sales Manager with experience in e-commerce. It is not wrong, but experience shows that it is necessary to add some other important characteristics to the profile of this professional to ensure that the objectives are sustainable in the long term, without conflicting with the other sales channels. Companies that did not have a Trade Marketing unit responsible for the INTEGRAL development of all sales channels, saw in the short term an increase in internal friction in their commercial operation, as well as the dissatisfaction of their customers as a result of frequent inventory failures, communication, promotions, and outdated prices, among others. When the commercial operation is not integrated, manufacturing companies and retailers see their internal operating costs increase at rates that are usually greater than the increase in their digital sales. Although for some executives, Trade Marketing is still the little-understood “other Marketing”, more tactical than strategic that tends to get lost between the Sales and Marketing departments of organizations, and on certain occasions the great recipient of the “rest of responsibilities” that no one wants. , the reality is that for many companies, it has been a function that has played a fundamental role in aligning the needs of Shoppers, Manufacturers and Retailers. Trade Marketing is responsible for accelerating the rotation of strategic brands in all channels (including digital) above the competition, that is, increasing market share per store. When the Sales and Distribution departments are responsible for increasing the sales volume to the store (Selling - IN), Trade Marketing is responsible for making that product "leave the store" (Selling - OUT), that is, that the Shoppers buy it more than the competition. The first Trade Marketing departments were born in the late 80s and early 90s to manage certain commercial actions, in many cases in isolation, aimed at retail trade, especially large accounts. The first promotions, merchandising materials and “tailored” displays began to be developed; brand strategies were adapted from a general market vision to a vision by commercial channel and/or region. New customer classification models and territory coverage and management strategies were developed that had to show alignment between modern and traditional channels. Starting in the mid/late 90s, the Trade Marketing function was strengthened with the consolidation of the different Category Management models (today we are going through 3.0), ECR, among others, which come to support the integration of actions and programs joints and optimize the interfaces between Retailers and brands. Perhaps the biggest criticism of traditional models was that they had focused on processes to optimize the supply chain and little on the client (consumer/shopper) and their needs and behaviors. With the development of the Internet at a global level, stores began to open new digital channels in parallel to their physical operation and the Shoppers began to present more accelerated changes in their purchasing behavior, since every day they were more informed, with greater capacity to comparison of offers and benefits, as well as becoming a generator of opinions and content. As a result, the old and increasingly expensive practices of merchandising, display, and promotion were losing effectiveness and efficiency. Traditional merchandising based on posters has lost its effectiveness. To obtain a different result, you have to play with the new rules of omnichannel multisensory stimulation. To face this problem, some companies decided to create a unit exclusively dedicated to understanding the needs of the Shopper or Client, their mission, and purchasing habits by channel to guarantee that their offers were always more visible and relevant than those of the competition in any type. of store. Some (perhaps the majority) incorporated this "function" into Trade or Customer Marketing, others into Brand Marketing, and some others are creating new departments focused 100% on the topic and reporting directly to the Commercial Department. Today, analyzing the most successful companies, we can see that they have applied Shopper Marketing not as a specific functional unit but as a "Commercial Skill", that is present transversally throughout the commercial structure, especially in the functions of channel managers, category, key account and in advertising agencies. Shopper Marketing came to enhance the Trade Marketing function since its focus is to know in depth the individual, their needs, motivations, and emotions every time they buy the category in any channel, whether physical or digital, to be able to modify their PURCHASING BEHAVIOR. With the advance of Neuroscience and studies of Shopper behavior, the most successful companies can design promotional activities that break with the supply routine, awakening interest in trying something new. That understanding is fundamentally in what, how, and when you buy our and other categories and brands. To do this, we must analyze our information and that of the Retailer, in addition to observing the shopper during the purchasing process. The combination of ALL will give us a greater possibility of detecting actionable opportunities (Insights). From there, strategies will be derived to effectively stimulate the buyer's EMOTIONS to persuade them to buy more, more expensively, or more frequently from our brand throughout the process. Knowing the Shopper and their purchasing behavior in depth is now as important as it was in the 80s to know the consumer for the creation of the advertising campaigns that moved the industry. Increasing a company's persuasive power so that the target shopper buys more, more expensively or more frequently its strategic brands through any physical and/or digital sales channel is now a critical skill for any manufacturer or retailer. In conclusion The main difference between Trade and Shopper Marketing is that the latter is not an organizational function that carries out a variety of tasks and has a large number of responsibilities, tasks, and budgets. It is clearly, as we mentioned previously, a skill that encompasses functions such as Marketing, Trade Marketing, and Key Accounts, among others. The executive who has this commercial skill will be able to take better advantage of the available inputs: market studies, sales data, field observation, etc. to generate actionable insights that improve the effectiveness of their promotional actions and commercial results. Specifically, companies that manage to develop Shopper Marketing skills in their commercial teams will be able to see a positive impact on their results in a few weeks, making the most of all the information contained in their systems: Creation of new and more effective customer segmentation models, using Machine Learning to analyze the millions of transactional data by Shoppers that are collected in administrative systems through all channels and that was previously impossible with traditional Excel sheets. Improve the quality of execution in all physical and digital stores. Increase satisfaction and retention rates of shoppers and retailers. Greater internal coordination in planning the promotional calendar by brand, channel, or key account. Greater profitability of the commercial operation with shorter response time to launches and news. The great challenge for manufacturers and retailers is to update their commercial processes, structures, and job profiles as soon as possible to incorporate the key skills of OMNICHANNEL Shopper Marketing, creating multifunctional mechanisms for the development, coordination, and control of all sales channels, and enabling the entire team with the skills required to carry it out. Written by Juan Manuel Domínguez R. CEO of TMC Commercial Consultants. If you are interested in learning about TMC's consulting or training products in this area, write to us at contacto@tmcconsultores.com and we will immediately contact you. If we are not yet connected on LinkedIn, it will be a pleasure to have you in my network of contacts https://es.linkedin.com/in/juanmanueldominguezr If you want to discuss some ideas on how to implement it in your company, contact us at contacto@tmcconsultores.com and we will respond immediately.

Most of us don't think much about how light can affect our mood. It is no secret that lighting, natural or artificial, affects our mental state. We've all heard of "mood lighting": candlelit dinners, moonlit walks, sunrises and sunsets. Now, the intensity of lighting and color is being explored concerning the intensity of our emotions and its impact on the Customer Experience. New research published in the Journal of Consumer Psychology indicates that the intensity of a light source and a particular color can increase both the positive and negative associations we have with a specific store, category, or product. Color temperature is a characteristic of visible light (the part of the electromagnetic spectrum visible to the human eye), measured in Kelvin (K). Each grade range will make a store feel a particular way and, in turn, will make your customer perceive things differently, which will affect their purchasing decisions. High Kelvin (K) levels make the environment bluer and colder and, conversely, the lower the Kelvin level, the color temperature increases. Now, how do you use light and color to achieve the store's commercial objectives? REDUCE THE LENGHT OF YOUR CUSTOMERS VISIT TO INCREASE THE NUMBER OF TICKETS DURING PEAK HOURS. The way you light your store can help determine the average amount of time you want your customers to spend in the store. The intensity of the light can accelerate or reduce the purchasing and consumption process within the store. Bright light with high Kelvin levels produces blue light which increases alertness levels and the feeling of a "cooler" environment, while lower, red light has a "calming" effect. The bluer light is closer to midday sunlight and has an alerting property. Exposure to blue light can give us extra energy because it activates a photopigment called melanopsin that tells our brain to be alert. The article published in the Journal of Consumer Psychology describes how participants in this research were exposed to different wavelengths of light during specific work sessions. Those exposed to bright blue light were more productive and were able to complete cognitive tasks faster and more accurately than the control group. The higher light intensity increased their alertness not only during the exposure but for half an hour after the experiment ended. Excited by the results, the researchers later created a variety of scenarios by varying the intensity of the lighting. The participants were exposed to different scenarios and had to respond about their feelings regarding positive and negative facial expressions, words, and images of people, places, and products. The results showed that the level of light intensity affected the participants' evaluation of all aspects. The greater the intensity of the light, the results were always greater, whether in a positive or negative sense. This seems logical, remembering the old saying "At night all cats are brown" because with good light we can capture a greater amount of detail in people and things, but the interesting thing is that the intensity of the light also influenced the level of acceptance of positive and negative words. Another interesting aspect of the results is the fact that participants indicated that they felt the temperature in the room increased as the light intensity increased when in reality the temperature remained stable. Based on these results, we can understand why Supermarkets, Minimarkets, Convenience Stores, Construction Materials, and Fast Food usually use intense lighting with high levels of Kelvin to make the purchasing process and stay in the store quick, conveying security. , cleanliness, and spaciousness. INCREASE THE LENGTH OF YOUR CUSTOMER VISIT TO INCREASE CONSUMPTION AND THE TICKET VALUE Scientists have discovered that light affects how much we eat, how quickly we eat, the type of food we choose, and even our perception of flavors. In a general sense, we eat slower and eat less food in restaurants with softer, dimmer lighting. However, less healthy food selection is also more likely in darker restaurants. Researchers believe this is because softer lighting can make us less alert and relaxed, meaning we are less likely to think about our food choices (and evaluate how caloric they are), but more likely to eat at a relaxed pace, rather than quickly consuming what's on our plate. In hotels, cafes, restaurants, discos, and clubs they use warmer lights to create more welcoming environments that make the customer lose track of time and increase their consumption. INCREASE THE PERCEPTION OF THE FLAVOR OF YOUR DISHES WITH THE CORRECT LIGHTING Light not only affects what we eat, but it can also have an impact on how things taste. A recent study, for example, found that backlighting affected the final rating of a wine brand by the same group of participants. The bottom line is that bright light is recommended for wine and food tasting, where the focus of the experience is the product and the visual impact is critical to the final evaluation of the product. CONTROL THE EMOTIONS YOU WANT TO TRANSMIT IN THE STORE Capturing natural sunlight can make a big difference. A recent study found that shoppers who shop in stores that take advantage of natural light report a much greater sense of overall well-being than shoppers whose purchases were made in stores with artificial light and no windows. Natural light can even help reduce symptoms of depression. Light also determines how we see color. Color is a powerful communication tool and can be used to signal actions, influence mood, and even influence physiological reactions. Certain colors have been linked to increased blood pressure, increased metabolism, and eye strain. Despite the general lack of formal research in this area, the concept of color psychology has become a hot topic in the retail sector. Much of the evidence in this emerging area is anecdotal at best, but at TMC Consultores we have spent a lot of time and effort collecting key observations about the effect of color on purchasing behavior. While feelings about color are often deeply personal and rooted in one's experience or culture, we can conclude that reactions are quite similar throughout Latin America. Colors in the red area of the color spectrum are known as warm colors and include red, orange, and yellow. These warm colors evoke emotions ranging from feelings of warmth, stimulation, happiness, optimism, closeness, and comfort to feelings of anger, fear, frivolity, and hostility. Colors on the blue side of the spectrum are known as cool colors and include blue, purple, and green. These colors are often described as calm, reliable, authentic, and refreshing, but they can also evoke feelings of coldness, boredom, sadness, inferiority, or indifference. Black can be associated with modernity, sensuality, elegance, security, and emotional protection, but it can also suggest threat, sadness, and emotional coldness. White is clear and pure, clean, young, it is also modern, but it can also convey emptiness, be hostile, inexpressive, and sterile. SMART LIGHTING IS THE FUTURE Historically, retail has considered lighting as a simple resource necessary for the operation of its businesses. Having a good lighting system in the retail environment can change the results of a business, being able to adapt the space to the product to stand out in busy commercial environments, and create pleasant and attractive environments for customers and employees. Lighting systems in most modern stores are being used as a base platform for data transmission or positioning systems that allow us to understand the behavior of buyers and generate strategies to increase sales. Additionally, it allows you to create a schedule by category or sector of the store and automate any lamp outside or inside the store depending on the day of the week and time of day. Smart lighting options not only use less energy and lower your monthly electric bills, but they also last longer than standard light bulbs, which is another cost benefit of switching to smart lights. Written by Carlos Ignacio Alfonzo, managing partner of TMC Consultores Comerciales. If you are interested in learning about TMC's consulting or training products in this area, write to us at contacto@tmcconsultores.com and we will immediately contact you. If we are not yet connected on LinkedIn, it will be a pleasure to have you in my network of contacts. If you want to evaluate the Shopping Experience of your customers in your strategic stores, write to me at cialfonzo@tmcconsultores.com and we will schedule a meeting.

Most consumer goods companies stop earning millions of dollars per year by continuing to implement the same shopper activation solution in all the chain stores that sell their products. The first step? Segment your key account stores based on the mission and purchasing habits of their customers. Are all stores of the same brand or flag (account) selling exactly the same? No! Although the account does not make major differentiations and some stores seem the same from the point of view of image and size, they will surely have big or small differences: they will be in different regions and cities, different areas within the same city and, above all, they will have shopper profiles. with different purchasing missions even for the same category. It should also be noted that the performances of a category and its respective brands change from one location to another. In summary, these analyzed elements affect product demands and purchasing behaviors very differently from one store to another. This being so, it is essential to look for ways to group (segment) stores that present similar behaviors, especially associated with profiles and purchasing missions, which will allow us to define differentiated assortment, space, communication, and promotion strategies. We could argue that the ultimate goal is to create a unique strategy for each store and technology already allows us to do so. But why key account stores are not segmented correctly? The most frequent answers to this question are: We haven't thought about this. We don't know how to do it. The account will not give us sales data per store. The account has its segmentation model I think we already covered the first answer with the introduction of this article. Let's now look at the other three. How to segment the account stores? There are several ways to segment, from the most traditional using demographic and geographic statistics to the most current ones, which are what we are using at TMC Consultores, where we incorporate Machine Learning (ML) algorithms that can process high amounts of data, generating much more precise and dynamic results (which are continuously adjusted) and, as a result, significantly increase sales volumes. For obvious reasons, we are going to focus on these new technologies in the rest of the article. Store segmentation with ML algorithms The data provided by each buyer when visiting a store has tremendous value when processed with the rest of the purchase tickets that are generated over a period of time. 12 months is recommended. Algorithms can detect purchasing patterns from the millions of data generated and group stores that have similar behaviors into clusters or segments. Artificial Intelligence processes convert data into knowledge. Store Segments Once the stores were grouped and analyzed, we detected interesting patterns that we could hardly obtain through more traditional means. We are going to see segments of stores that not only have similar sales of references (SKUs) but also similar purchasing behaviors. For example, we will observe by segment: References that sell more on certain days of the week or times of the day than others. Correlations of when a category, brand, or reference is purchased, with other categories, brands, or references. Different purchasing missions for the same category. For example: in one store we can observe predominantly planned purchasing and in another store, impulse purchasing. If we additionally cross-reference this data with the sales volume of each store, we will be able to adapt and focus differentiated actions for groups of similar stores, and include and exclude stores, according to the strategic importance that each one may have. The Success Photo by Segment Perhaps the most obvious and immediate thing to implement is the design and execution of the Success Photo by store segment, for the same account. That is, define the assortment, brands and main references, planograms, displays, and even prices, when advisable, by segment. The data generated by the Retailer can be continuously incorporated into the algorithm so that it generates adjustments to references and spaces and even moves a store from one segment to another when it detects changes in purchasing behaviors. Once again, the keyword is knowledge. But the Retailer has its segmentation model Of course, but it is not necessarily built based on your strategic objectives or thinking about your categories and brands. If you consider that the Retailer's segmentation adapts to your needs and requirements, great. Just take advantage of it. But if not, better make your segmentation. Execution Capacity It requires greater effort and more resources to execute actions in a differentiated manner in 4 store segments than in just one. However, all the companies with which we have worked on this issue corroborate that it is an investment with a very rapid recovery. The results in incremental sales and investment optimization of Trade Marketing generate a very high return. Conclusions The commercial functions of Trade Marketing and Key Accounts today have ML technologies at their fingertips, which will allow them to take advantage of existing information like never before to segment the accounts' stores, to focus initiatives and strategies of brands where the target Shopper and the predominant purchasing mission are. If you want to know our store segmentation ML algorithm and increase your sales by making the necessary adjustments, write to me at jmdominguez@tmcconsultores.com, and let's schedule a meeting. Written by Juan Manuel Domínguez R. CEO of TMC Commercial Consultants. If you are interested in learning about TMC's consulting or training products in this matter, write to us at contacto@tmcconsultores.com and we will immediately contact you. If we are not yet connected on LinkedIn, it will be a pleasure to have you in my network of contacts https://es.linkedin.com/in/juanmanueldominguezr

The digital era has reached pharmacies, marking a before and after in the way health services are provided. This transformation not only responds to the need for efficiency and precision but also to consumer demand for more accessible and personalized services. For pharmacy managers, directors, and owners, understanding and adopting these trends is essential for growth and sustainability in today's market. Below, we explore the main digitalization and technology trends for this type of store and provide some examples that can serve as a reference. Technological Innovation at the Service of Health Mobile Applications and Virtual Care Mobile applications have become essential tools to improve the customer experience in pharmacies. They allow everything from prescription and appointment management to virtual consultations with pharmacists, offering unprecedented convenience. A notable example is Walgreens' mobile app, which allows users to renew their prescriptions, chat in real-time with pharmacists, and schedule vaccinations, all from their smartphones. Automation in Inventory Management Inventory automation through intelligent systems allows pharmacies to optimize their stock, reduce errors, and predict the demand for medications. One success story is CVS Health's inventory management system, which uses predictive analytics to ensure essential medications are always available to patients. Telepharmacy: Remote Consultations Telepharmacy has taken a leading role, allowing remote consultations that save time and provide crucial access to pharmaceutical care. An example of this is Rite Aid's telepharmacy service, which offers virtual consultations, improving access to medical care for people in remote areas or with travel limitations. Points of Sale and Self-Service Kiosks Self-service kiosks and smart point-of-sale systems streamline transactions, improve the shopping experience, and collect valuable data on consumer preferences. CVS Pharmacy has implemented self-service kiosks for checkout, reducing wait times and improving customer satisfaction. Data Security and Regulatory Compliance With digitalization, data security has become a priority. Pharmacies must implement robust security solutions and comply with regulations such as HIPAA. Companies like Epic Systems offer electronic health record solutions that comply with these regulations, ensuring the privacy and security of patient information. References for Implementation For those interested in delving deeper into the implementation of these technologies, resources such as the American Medical Association (AMA)'s "Digital Health Implementation Playbook" and the Healthcare Information and Management Systems Society (HIMSS) guides offer frameworks and best practices. in the digitalization of health services. Conclusion Digital transformation in pharmacies is a reality that offers numerous opportunities to improve customer service, optimize operations, and expand services. For industry leaders, adapting to these trends is not just an option, but a necessity to stay relevant in a constantly evolving market. At TMC Consultores, we support pharmacies on this path towards digitalization, ensuring that they make the most of available technologies to strengthen their position in the health sector. If you want to know more about our retail services, click here.

In Venezuela's complex and dynamic business environment, FMCG distributors face a number of unique challenges that can affect their long-term profitability and sustainability. At TMC Commercial Consultants, we have identified the main obstacles that these distributors must overcome to achieve and maintain success in the Venezuelan market. This article breaks down these challenges, offering clear insight and potential strategies to navigate this environment. 1. Economic and Financial Volatility The Venezuelan economy has historically been volatile, with high inflation rates and fluctuations in the value of the local currency. This instability presents a significant challenge for distributors, affecting price planning, inventory management, and purchasing strategies. Suggested Strategies: - Currency Diversification: Maintain reserves in more stable currencies to protect against the devaluation of the bolivar. - Dynamic Pricing: Adjust prices regularly to reflect changes in costs and inflation. 2. Access to Financing Limited access to bank financing is a considerable obstacle, making it difficult to expand and maintain adequate inventory levels. Suggested Strategies: - Alternative Financing: Explore non-traditional financing options, such as crowdfunding or loans from private investors. - Strategic Partnerships: Alliances with manufacturers to obtain flexible payment conditions or direct financing. 3. Logistics and Distribution Logistical problems, including poor infrastructure and fuel shortages, can increase operating costs and affect efficiency in product distribution. Suggested Strategies: - Route Optimization: Use logistics planning software to minimize distances and delivery times. - Fleet Investment: Acquire or rent more fuel-efficient vehicles suitable for local conditions. 4. Government Regulations The regulatory environment in Venezuela can be complex and changing, presenting a challenge for distributors who must keep up to date with new laws and regulations. Suggested Strategies: - Ongoing Legal Advice: Have the support of experts in Venezuelan commercial law to navigate the regulatory landscape. - Operational Flexibility: Develop a business model adaptable to legal and regulatory changes. 5. Fluctuating Demand Fluctuations in demand for consumer products, exacerbated by economic instability, require effective inventory management to avoid overstocking or product shortages. Suggested Strategies: - Market Analysis: Conduct market studies regularly to anticipate changes in demand. - Just-in-Time Inventory Management: Adopt inventory strategies that minimize excessive storage and reduce the risk of obsolescence. Conclusion Distributors of mass consumption products in Venezuela face a challenging environment that requires agility, innovation and careful strategic planning. At TMC Consultores Comerciales, we recommend addressing these challenges with a combination of solid financial strategies, logistics optimization, legal adaptability and a proactive approach to demand management. With the right strategies, it is possible to overcome these obstacles and create a profitable and sustainable business in the Venezuelan market.

In today's dynamic business world, manufacturers and retail chains face unique challenges in the commercial valuation of their companies before and during critical processes such as mergers, acquisitions, or capital investments. What does the Commercial Valuation of a company consist of? The commercial valuation of companies is a critical step that determines the credible ability of a company to continue generating sales and growth and the risks associated with its operation. This exercise influences the calculation of the financial value of the business to reduce risks in investment decisions, negotiation strategies, mergers, purchases, and capital contributions. Manufacturers and retail chains seek precision and a deep understanding of the market in their valuations. However, when it comes to investing in an ongoing consumer company, it is of utmost importance to know the capacity of the commercial team to deliver results, as well as the evaluation of the risks associated with its supply chain, the profile of distributors, competitiveness in stores, levels of coverage, distribution and the quality of service and execution in strategic stores, among other key things that can greatly affect the projected result of the business and the risk of the operation. Lack of adequate information and underestimation of these aspects as well as intangible assets, such as brand value, and consumer and customer loyalty, are common pains. These challenges can lead to inaccurate valuations, negatively affecting negotiations and the outcome of merger, purchase, or capital contribution processes. The Importance of Choosing the Right Advisor Choosing an advisor with specific experience in the commercial area in the consumer and retail industry is essential. TMC Commercial Consultants in its 28 years of operation in Latin America has managed to position itself as a strategic ally in the commercial valuation processes of consumer product manufacturers and store chains that need to calculate or justify their value in the market, as well as funds from investment and financial entities involved in large-scale merger, purchase or capital contribution processes. Due to the focus and specialization of our team in the commercial area, we have the ability to get the job done in less time. We know exactly what we have to validate and have advanced data analysis tools and methodologies to guarantee accurate assessments. TMC has managed to positively impact the strategic decisions of numerous companies throughout the region. Ready to calculate the value of your company? Contact us and we will get started right away More information: visit our page. Written by Carlos Ignacio Alfonzo, managing partner of TMC Consultores Comerciales . If you want to learn about TMC's consulting or training products in this area, write to us at contacto@tmcconsultores.com and we will immediately contact you. If we are not yet connected on LinkedIn it will be a pleasure to have you in my network of contacts. #commercialvaluation, #mergersandacquisitions, #capitalcontributions, #strategicconsulting, #business, #entrepreneurship, #investment, #storechain, #manufacturers, #businessgrowth, #businessstrategy

In the fast-paced world of business, the key to sustained success lies not just in making daily decisions but also in stepping back, analyzing, and planning for the future. One powerful tool often overlooked is the Annual Business Review (ABR). Today, let's delve into the transformative impact of ABRs and how partnering with TMC can elevate your company to new heights. The ABR Advantage: A Strategic Pause for Progress Running a business can sometimes feel like a relentless sprint, with each day demanding immediate attention to urgent matters. Amidst this hustle, the Annual Business Review emerges as a strategic pause—a moment to reflect, analyze, and recalibrate. It's not just about looking back; it's about leveraging insights to propel your business forward. The ABR acts as a compass, ensuring that your business strategies align with your long-term goals. Assessing past performance is a critical step in optimizing future endeavors. Our expertise enables us to dissect key performance indicators, identify trends, and unlock opportunities for improvement without the risk of getting lost in data. The business landscape is rife with uncertainties. A comprehensive ABR allows us to identify potential risks and develop strategies to mitigate them. Embarking on the Annual Business Review journey is not just a formality; it's a commitment to your company's evolution and long-term success. Why should you consider running an Annual Business Review now? With the ongoing recovery from the global pandemic, retailers and CG manufacturers need to assess how their business has adapted and identify any lingering challenges. A thorough annual business review provides an opportunity to evaluate the company's overall performance over the past years to avoid repeating past mistakes, solve root causes of frequent problems, and consolidate learning to move faster towards the defined objectives for this year. Considering the 2024 scenario, these are the most relevant reasons that will help you justify running an ABR in the following weeks: Some changes came to last regarding consumer and shopper behavior. An ABR in 2024 will allow you to analyze recent trends, understand shifts, and adjust product offerings and marketing strategies to meet changing demands. The CG industry and retail have experienced an IT revolution: with technology playing a crucial role in business and becoming more accessible every day, the ABR will contribute to challenge resource allocation, both financial and human to ensure that the business remains focused on its mission and vision, outsourcing certain services. The challenges to global supply chains have been evident in recent years. The ABR will help to assess the resilience of your supply chain, identify potential vulnerabilities, and implement strategies to enhance flexibility and responsiveness. E-commerce continues to grow in relevance vs physical stores. Take the time to evaluate the performance of online channels, enhance the user experience, and implement trade marketing digital strategies that align with the current buyer behavioral trends. Rapid changes in the business environment require companies to be agile and adaptable. An ABR will facilitate a proactive approach to change management, allowing you to adjust your strategies and operations in response to emerging trends and challenges. It is an excellent time to gather feedback from employees regarding their experiences, challenges, and suggestions for improvement. A regular review cycle fosters a culture of continuous improvement within the organization. It encourages learning from past experiences, adapting to changes, and continuously seeking ways to enhance efficiency and effectiveness. Sharing the annual review results with stakeholders, including investors, customers, and partners, enhances transparency and trust. The insights gained from the annual review will be critical to setting the annual goals and priorities for the upcoming months. Ready to unlock the full potential of your company? Let's connect and embark on a transformative journey through the Annual Business Review. Your success story begins with a strategic pause—let's make it happen! #AnnualBusinessReview #BusinessTransformation #StrategicConsulting #BusinessSuccess #DataDrivenDecisions