The ceramic industry launch tremendous amounts of new products every year: porcelain tile that look like woods, cements, polishing, stones, marble, different sizes, finishes, etc.
No one needs that much.
It is a weakness for the industry, because they do not have a stock of the products they “claim to sell”. There are certainly exceptions, but the industry copies that strategy.
There are too many similar products, almost the same. A blind product test shows that the consumer does not distinguish one product from another, nor does he identify Brands.
In mass market, P&G or Unilever know where their products are and what weight they have on display; in what type of stores, by brand and presentation, own and the competition (bi-monthly reports includes physical and weighted distribution – example: Nielsen). It takes a lot of effort to have a good display and stock, that’s why they measure it. Continuity matters.
Supermarkets register one product and cancel another, because they respect the limits on the quantity of the target SKU. P&G and Unilever have been working to concentrate their product and brand portfolio for decades, seeking critical mass and strength in physical distribution.
Physical distribution should be measured by sub-brand or collection, not just by brand.
Stock display in stores is one of the highest value assets of a factory.
Does the porcelain industry know in which stores is your product displayed, how much, where and at what price, collection by collection?
What is the factory index: annual m2 production / SKU?
What is the index of each collection: annual production m2 / SKU?
Author: Julio Sol
