Thanks to its buying power, the group has already helped many independents survive in the face of ever-increasing pressure from the multiples. At the Stoneleigh event it unveiled a strategy designed to help members do more than just survive. It enables them to be part of a potent consumer brand. Commercial director John Heagney describes it as "the biggest project we have ever done".
The strategy is simple bring the Nisa retail brand and Today's wholesale brand together under one strong integrated image. Members achieve cost savings through increased volumes, the company can begin to develop a clear and consistent consumer brand, and Nisa-Today's retail members will be in a stronger position to fight against the rapid encroachment of Tesco, the Co-operative Group, and the like.
The initial driver was a desire to streamline the group's own brands by simplifying the range of own labels and combining both retail and wholesale volumes. According to Ramsden, not only does this provide cost savings but it allows the company to enhance its product range and capitalise on growth areas. "The higher volumes will mean better promotions and exclusive packs, as well as the ability to offer smaller case sizes for convenience outlets."
The entire 1,500-strong own label offer, currently worth more than £250m, will be relaunched over the next six months under four main brands, with each featuring the new Nisa-Today's logo. The logo will appear on all consumer touch-points, such as vehicle livery and promotional material, and a new strapline has been developed Driving Down the Cost of Living. There are plans for national press ads for the first time.
On top of this the group will be putting the logo on all new retailer fascias in order to reinforce the image to the consumer. And, as part of its store development programme, it is offering three new fascias: Metro, Local and Extra. Extra is for stores of 3,000 sq ft or more that have a wide range of products (3,500 lines minimum), a strong chilled offer, long opening hours and all the services customers expect from a large c-store, such as National Lottery and ATMs.
Heagney describes the Local fascia as "a proper, neighbourhood c-store" sited in "chimney pot" locations. This will typically be about 2,500 sq ft but can go down to 1,500 sq ft and will also have a strong chilled offer. Metro is for town/city centre locations with more emphasis on impulse, on the go' and chilled ranges and less grocery. Typically, there will a large lunchtime trade from local workers, and ranges such as Nisa-Today's new Healthy Choice will be important.
The strategy does not stop there. Plans for new fascias for Today's Group members will shortly be revealed. "It will be the first time we have ever worked with wholesalers' retailers, using our same store development team to help deliver new fascias," says Heagney. And the company plans a new symbol group for Today's Group members. Details are expected within six weeks.
According to Heagney, Nisa-Today's achieved its best-ever chilled food sales last week and its members' businesses are well ahead of last year in like-for-like sales. He says this is because "we take notice of our members. Every one has a voice."
Members and suppliers at Stoneleigh appeared to speak with one voice, agreeing the new strategy was a positive move. Heagney expects to see some multi-store operators adopting new fascias quickly.
As the market consolidates further, independents will not be able to rely solely on the cost benefits of being a member of a buying group. They will have to offer the right range, based on real insight into local market needs. They will have to convey a strong, and trusted, image.
When it comes to his members, Ramsden believes the new strategy will do the trick.
Nisa-Today's new private label brands
>>HERITAGE, VALUE AND FUN FACTORY
n Nisa-Today's Heritage: this will be the flagship brand. Launched five years ago, the Heritage range within chilled, fresh and frozen is now worth £80m. The brand will be extended to cover ambient, grocery, chilled, frozen, fresh, household and health & beauty.
n Nisa-Today's Value: economy range covering core commodities. Initially offering 20 price-fighting lines, it replaces Right Price and Everyday Value. Packaging is red, white and blue.
n Fun Factory: the existing kids' confectionery and soft drinks brand will get a new look.
n Cellars International: the beers and spirits brand remains.
{{ANALYSIS }}
The strategy is simple bring the Nisa retail brand and Today's wholesale brand together under one strong integrated image. Members achieve cost savings through increased volumes, the company can begin to develop a clear and consistent consumer brand, and Nisa-Today's retail members will be in a stronger position to fight against the rapid encroachment of Tesco, the Co-operative Group, and the like.
The initial driver was a desire to streamline the group's own brands by simplifying the range of own labels and combining both retail and wholesale volumes. According to Ramsden, not only does this provide cost savings but it allows the company to enhance its product range and capitalise on growth areas. "The higher volumes will mean better promotions and exclusive packs, as well as the ability to offer smaller case sizes for convenience outlets."
The entire 1,500-strong own label offer, currently worth more than £250m, will be relaunched over the next six months under four main brands, with each featuring the new Nisa-Today's logo. The logo will appear on all consumer touch-points, such as vehicle livery and promotional material, and a new strapline has been developed Driving Down the Cost of Living. There are plans for national press ads for the first time.
On top of this the group will be putting the logo on all new retailer fascias in order to reinforce the image to the consumer. And, as part of its store development programme, it is offering three new fascias: Metro, Local and Extra. Extra is for stores of 3,000 sq ft or more that have a wide range of products (3,500 lines minimum), a strong chilled offer, long opening hours and all the services customers expect from a large c-store, such as National Lottery and ATMs.
Heagney describes the Local fascia as "a proper, neighbourhood c-store" sited in "chimney pot" locations. This will typically be about 2,500 sq ft but can go down to 1,500 sq ft and will also have a strong chilled offer. Metro is for town/city centre locations with more emphasis on impulse, on the go' and chilled ranges and less grocery. Typically, there will a large lunchtime trade from local workers, and ranges such as Nisa-Today's new Healthy Choice will be important.
The strategy does not stop there. Plans for new fascias for Today's Group members will shortly be revealed. "It will be the first time we have ever worked with wholesalers' retailers, using our same store development team to help deliver new fascias," says Heagney. And the company plans a new symbol group for Today's Group members. Details are expected within six weeks.
According to Heagney, Nisa-Today's achieved its best-ever chilled food sales last week and its members' businesses are well ahead of last year in like-for-like sales. He says this is because "we take notice of our members. Every one has a voice."
Members and suppliers at Stoneleigh appeared to speak with one voice, agreeing the new strategy was a positive move. Heagney expects to see some multi-store operators adopting new fascias quickly.
As the market consolidates further, independents will not be able to rely solely on the cost benefits of being a member of a buying group. They will have to offer the right range, based on real insight into local market needs. They will have to convey a strong, and trusted, image.
When it comes to his members, Ramsden believes the new strategy will do the trick.
Nisa-Today's new private label brands
>>HERITAGE, VALUE AND FUN FACTORY
n Nisa-Today's Heritage: this will be the flagship brand. Launched five years ago, the Heritage range within chilled, fresh and frozen is now worth £80m. The brand will be extended to cover ambient, grocery, chilled, frozen, fresh, household and health & beauty.
n Nisa-Today's Value: economy range covering core commodities. Initially offering 20 price-fighting lines, it replaces Right Price and Everyday Value. Packaging is red, white and blue.
n Fun Factory: the existing kids' confectionery and soft drinks brand will get a new look.
n Cellars International: the beers and spirits brand remains.
{{ANALYSIS }}
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