A state of independence

A meeting of minds or a marriage of convenience? The relationship between independent brands and independent retailers is like any other — reinforced by the right mindset and a willingness to support the other. Marketing and PR Expert Alison Gallagher-Hughes looks into why and how this can be good for business.

Shelf space for independent brands can help your business thrive.

Alison Gallagher-Hughes Journalist and PR expert who owns Tillymint Communications, a marketing communications agency which specialises in a range of B2B and B2C industries, including the pet sector. Visit www.tillymint.co.uk or email info@tillymint.co.uk

It’s best described as a symbiotic relationship. A mutually benefi cial working arrangement between independent manufacturers and retailers which enables both to meet their business objectives and sales targets. For manufacturers, this means a defi ned route to market — that coveted premium shelf space, brand visibility, recognition, and advocacy.

For retailers, the choice must seem endless and there’s a balance between stocking well-known grocery lines — the major brands that are seen in every supermarket — and lesser-known independents. As part of an industry that is continually innovating, extending customer choice and stocking brands that could provide you with differential is extremely appealing. It’s not just about what customers are buying now but also what they might buy in the future, thinking about emerging market segments (the growth of the Millennial pet owner, for example), trends, and behaviours will inform choice.

Nigel Baker, CEO of the Pet Industry Federation, says: “The independent shop is all important because it’s the one place where a pet owner can go and talk about their pets, and get recommendations about products, which they will not get in any large superstores to the same degree. I think that’s quite important. If you want someone to talk to, who is knowledgeable and been in the marketplace for a long time, the independent shop is a great source of information. And as such, if your product is in store in an independent shop, and it’s been put on the shelf, chances are, they will understand that product and be able to recommend it, so that that relationship between the person going into the shop, the product on the shelf, and the independent retailer is really important, both for product recommendation, but also to get new products into the marketplace.”

Ultimately, the bottom line for any business must be profi t. And when entering into a new deal, retailers should ensure that there is a suffi cient gross margin between wholesale and recommended retail prices to make products worth stocking. When dealing directly with manufacturers, review the fi ne detail before signing on the dotted line. Minimum order quantities and discounts need to be considered to allow your business to benefi t from any brand growth or larger orders in the future.

Nigel adds: “One of the issues that always happens in this trade is that a lot of manufacturers use independent retailers as a stepping-stone and then go off into the rest of the marketplace. And in many ways, that is not a bad thing, it can encourage demand — providing those independent retailers are protected on margin and maintain an advantage on price. Manufacturers must be careful about protecting their distribution channels, as nine times out of 10 an independent retailer will be going to a wholesaler and they should not be put to a disadvantage.”

Considering stock fl ow and how quickly products are likely to fl y out or stay on the shelf is another issue. Noone wants to see ‘dead’ stock collecting dust and this is particularly relevant when it comes to food items with expiration dates. There is a window for sale, and demand must meet investment.

Personal and professional relationships can be all important. Effi cient and responsive customer service is essential for timely dispatch and replacement of damaged goods. Fostering a good relationship with a brand account manager is also worth its weight. They will have targets — and perhaps bonuses — to achieve. Sales is a competitive environment and those with responsibility for regions will be going head-to-head with others. Use these relationships to get added value from the brand — events, promotional merchandise, and early notice of new products in development, for example.

Graeme Wilson, Director of Creature Comforts, Scotland’s leading independent pet retailer concurs with this approach. It stocks a range of independent brands including Acana, Anthos, Robbie’s Holistic Cuisine, Eden, and Canagan alongside its own food brand Forresters.

“I think it’s really important to develop good working relationships in business,” he says. “We know that we can go back to any of our suppliers if anything is not right, just phone them up if there are any problems, from a burst bag to a late delivery, and get it resolved.”

“Many of our independent suppliers provide excellent support and we have developed a strong bond with them, receiving excellent customer service that has gone above and beyond. They actively try to support us and in turn, we will continue to support them.”

Deborah Burrows is Managing Director of Healthy Pet Store, a bricks and mortar outlet in Totton, Southampton which also has a strong e-commerce offer. Edgard and Cooper, Little Big Paw, Carnilove and Forthglade are among the independent brands it stocks.

She believes that independent retailers are best placed to support entrepreneurs and their growth to help them establish themselves in the market.

“Independent brands often have a unique product which solves an immediate problem they have experienced personally, and which has yet to be copied or is overlooked by the larger retailers as being unviable for them to list. Being an independent retailer, we are more agile and can bring products on board quickly so we can work with them to support them with challenges they might face earlier on, such as packaging problems. As an independent retailer, we also love the personal story behind independent brands; something which is often lost in corporations,” says Deborah.

From the manufacturers perspective, the pet sector provides a unique marketplace which enables advocacy, leading to informed buying decisions.

Matthew Gerrard is Managing Director of Doodlebone, which launched in 2014 and is based in Oxfordshire. It produces a range of dog accessories from harnesses, collars, and leads to blankets, treats, and compostable poop bags.

“There aren’t many sectors which aren’t dominated by big box multiples. You think of hardware for example, there used to be lots of little hardware stores on the high street which are no more,” he refl ects. “But the pet industry still has that diversity, an independence of a trade which gives it life and gives it vibrancy. So, for service and the quality of offering that independents bring, they are very important to the trade and to us as a brand.”

This unique proposition led to Matthew putting independent retailers at the heart of his marketing strategy.

“ “ Ultimately, the bottom line for any business must be profi t.

It now accounts for around 75 per cent of Doodlebone’s sales.

“I set this business up shortly after uni. And I had always wanted a business that could supply independently run trade. It was always part of the plan from the outset,” adds Matthew.

Bricks and mortar outlets provide expertise and brand advocacy — essential ingredients for dog owners looking for the ideal harness fi t for their breed.

“They can be ambassadors for your brand. They understand the market very well, they understand what consumers and dogs need, and they can deliver a level of service that’s diffi cult to replicate by major multiples.”

As companies grow, many move away from being family or founder-owned businesses but retain a family ethos within their workplaces and in their dealing with independent retailers.

Fish4Pets, based in Worcestershire, puts their ‘Fishionaries’ at the centre of their mission to convey their brand as champions of fi sh.

Marketing Director Jo Mulgrew says: “Independents are key ambassadors for our brand. They recognise the unique selling points of our products and help educate prospects into the benefi ts of feeding fi sh. They are passionate about the products they stock and many of our top tier independents are like an extension of our own team. They are engaged and excited by our range and really get into the science, which because we only use fi sh, is easy to understand and communicate.

“To support our independents, we offer training faceto-face with our small, expert team of reps and customer services advisors. We also have an e-learning platform. We offer pop-up demo days and lots of in-store product merchandising options, from PoS (point of sale), to fullybranded displays and merchandisers. We also now provide bi-monthly marketing materials they can use on their own social platforms, which provide engaging content and help support promotional offers which we tailor throughout the year.”

Karnlea is a new name to the industry which has chosen independent retailers to spearhead the launch of its Bone Broth range. As an “ambient category product” which can be used as a supplement, treat, or supporting food for dogs and cats, owner Lara McCullough is keen to harness the power of independents to convey its nutritional benefi ts and the ways it can be used.

“Karnlea is the fi rst UK brand to offer a fresh-packed bone broth. It’s a new concept: a 100 per cent natural product that is Tetra packed to maintain high nutrient levels with off-the-shelf convenience. As a new product, we know that there is work to do to help inform and educate prospective customers which is why we are putting independents front and centre stage of our marketing strategy,” she reveals.

Although Belfast-based Karnlea may qualify as a startup, Lara is far from being a pet sector newbie. She founded and recently sold two well-established brands which in contrast were “Amazon heavy.”

“That company grew organically through digital sales. It wasn’t a deliberate sales strategy, it just happened. In comparison, Karnlea offers something totally new so we have made an active decision to work with independents which want products that can help solve customer pet problems like skin, coat, and digestive issues.”

Lara has launched Karnlea.

Why Independent Brands Need You

● Brand Visibility – this isn’t just about acquiring premium shelf-space (although that’s a signifi cant win) but also conveying company credentials, its ethos, product range, variation, life stage (puppy, adult, senior), ingredients, and categorisation. ● Convenience and Accessibility – during lockdown, manufacturers noted an increase in direct sales via ecommerce sites with many people buying pet food in bulk in order to ‘stay at home and stay safe’. Despite changes to customer behaviour, there is evidence that shoppers like the convenience of being able to top up on supplies, seek advice and try pet accessories at bricks and mortar outlets. ● Advocacy — awareness and understanding of the brands you carry, how they should be used and knowledge of other products within a range can be crucial in helping customers make their buying decisions. ● Positioning — being in the right place, at the right time helps manufacturers position their brands which can be reinforced by pricing and packaging to make them appear more desirable. ● Reach and Availability — establishing a strong geographical presence and getting products ‘on the ground’ is essential in order to secure a market share. ● Eyes and Ears — all products have a lifecycle and knowing when to reinvent them through brand variation and product development is key. Product managers may use trusted retailer networks to support research and testing programmes.

Why You Need Independent Brands

● Differential — whether you are boutique and bijou or a market-style industrial site outlet, the products you offer can make you stand out from the competition – other pet stores and grocery outlets. Shelf space is fi nite, so choose wisely and measure sales to ensure that you are carrying the right products. ● Sales and Marketing Support — some manufacturers will offer practical help to support your business. This may include merchandising and display (which also helps them with brand blocking), promotions, events and marketing collateral. They are also investing in marketing which in turn helps make their products more recognisable in-store. ● Training and Development — in order to be a brand ambassador you need to understand what’s behind the brand. Many manufacturers will see this as a worthwhile investment to assist you in helping educate and inform a customer. ● Market Research — manufacturers will always have their eye on the bigger picture with access to fi nancial and market research to identify emerging trends and geo-demographics. Tap into this where possible to assist in planning and forecasting. ● Industry Awareness — we glean our industry awareness from many different sources (including PPM!). Manufacturers will likely be members of professional bodies, trade associations and attend trade shows — often sharing information and opportunities with their stakeholders.

Independent brands will often offer retailers product training.

Independent pet shops can be sources of knowledge for customers and advocates for brands.