| Devising an inventory management program that will | | | | managing a sell-through section is not easy. Suppliers |
| generate maximum sales and profitability requires an | | | | must not only have a large number of video titles |
| advanced computerized program that is difficult and | | | | available but also be able to analyze the section's |
| costly for a retailer to implement, but should be | | | | potential for succeeding. To do that, the supplier |
| offered as part of the supplier program. | | | | should already be familiar with the supermarket |
| Failure to customize video sell-through programs to | | | | industry and have a demonstrated ability to provide |
| the needs of individual stores most often will result in | | | | solid retail support at store level. A successful |
| erratic sales performance and lower than expected | | | | program requires constant, efficient in-store service |
| profitability. Because the dynamics involved in | | | | by a fully trained, experienced service staff. The |
| achieving sell-through success are different in each | | | | supplier must be able to execute at store level. |
| store, the program must be tailored to the individual | | | | One solution to ensuring that the supplier selected |
| situation. A cookie-cutter approach that treats all | | | | can fulfill the program's promise may be for retailers |
| stores within a chain as essentially the same is a sure | | | | to choose a company they already have a buying |
| recipe for disappointment. | | | | relationship with or that at least has considerable |
| The supplier must devise an inventory management | | | | experience servicing supermarket departments. |
| program -- including the size of the section, the | | | | Ensuring that the video sell-through program is |
| category of titles to be stressed, the price points to | | | | managed primarily by the supplier -- rather than |
| be offered, and the signage and promotions to be | | | | requiring extensive in-store labor -- can be crucial to |
| featured -- to the particular demographics of the | | | | maximizing in-store profitability. The difference |
| store. As retailers often do not have the time or | | | | between staffing the department and selling product |
| extra resources to manage the complicated section | | | | and having to run the entire operation -- from |
| on a store by store basis, especially with the | | | | selecting titles initially to charting sales to restocking |
| enormous number of titles involved in video | | | | the fixtures -- is significant and can tie up a |
| sell-through, finding a supplier who provides that | | | | tremendous amount of valuable time. |
| service is vital to cashing in on the category's full | | | | The best programs minimize the amount of in-store |
| potential. | | | | labor necessary to run the section by providing a |
| Although many suppliers are now jumping into the | | | | complete inventory management service. The other |
| sell-through video marketing arena, choosing a | | | | option -- to manage the section in-store with minimal |
| company that has extensive video experience in the | | | | outside help -- is often frustrating and can eventually |
| supermarket environment is important. Properly | | | | lead to failure. |