The Walmart Marketplace for CPG Brands- Episode 206
INTERVIEW WITH STEVEN CLEERE
DESCRIPTION
In today’s podcast, our guest is CPG retail marketing expert Steven Cleere and our theme is the CPG retail industry. We talked about Walmart, the opportunity of growing there, advantages and differences between Walmart and Amazon.
Make sure to tune in to find out more!
Steven is a host of Nexxt Level Brand’s Podcasts and he is Co-founder and Managing Partner (Emeritus) of the TMI Group (TradeMarketing Inc.). Steven has worked in the advertising and marketing agency industry for over 30 years. While enjoying a successful career as a guidance owner, he began working with small businesses, as a volunteer, at the agency Renaissance Entrepreneurship Center in San Rafael, Calif. in their Food Business Incubator.
“I don’t want to leave the idea that as an emerging brand you should not be on Walmart, because you should be. You should be on all platforms that you can be on.”
KEY TAKEAWAYS
Walmart hasn’t been seen as a legitimate competitor of Amazon in recent years.
Walmart is trying to do in 2 years what Jeff Bezos 20 years did.
The advertising promotion component is one of the first things Walmart didn’t do right, it was not refined as much it was on Amazon.
ROI is not as good as Amazon’s and that was the major killer for a lot of brands we spoke with.
Walmart has walmart.com but is fulfilled from your local store and Amazon has one set up distribution, it is either them or vendor.
For the past two years, Walmart started offering their fulfillment service but it was only for clients who have an invitation.
Performance Index on Amazon used to be measured by SKU and now is measured by the total number of SKUs.
If your Performance Index score on Amazon is over 500 then you won’t be subject to storage limitations for certain SKUs starting in October.
If you are selling 100 units daily on Amazon, on Walmart you will sell 20-25 for the same SKU.
You shouldn’t avoid Walmart, you should be on all the platforms you can be on.
You need to be wherever the shoppers are.
Walmart forced big CPG brands, like Procter & Gamble, to completely change their delivery and distributions systems. In fact, P&G was more efficient under Walmart’s demands.
For large CPGs Walmart was the most profitable account they have.
Walmart’s buying groups are combined, if you are performing well in the market place you have an opportunity to get your product sell in some store and that is something Amazon can’t give you.
Steven and his wife Debra are currently working on the NexxtLevel Brands Community, created to serve entrepreneurs and their teams as they launch, grow and scale their Consumer Packaged Goods businesses. The NexxtLevel Brands Community provides both a platform and a forum to give you a ‘graduate school’ in building a CPG business.
MENTIONED IN THIS EPISODE
Connect with Kiri Masters
Learn more about Bobsled Marketing
Connect with Steven Cleere
Learn more about Nexxt Level Brands Podcast
