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Article | April 30, 2006
Concentrate on 'small' to win precious real estate
Unilever may be onto something in the quest to maximize space on cluttered store shelves. At Wal-Mart, Unilever has introduced an All sub-brand called Small & Mighty.
The 32 oz of liquid inside each bottle is 3X concentrated. That means 32 oz of All Small & Mighty retailing for $3.97 cleans 32 loads of laundry while 100 oz of regular All cleans 32 loads for $4.37. All Small & Mighty fits perfectly with Wal-Mart’s lowest-price/value proposition. From a packaging standpoint here’s the real deal. Twenty-one of the 32 fl oz All Small & Mighty bottles fit in the same shelf space as eight of the 100 fl oz All bottles. In identical shelf space at my local Wal-Mart the retail ring per shelf set is $83.37 for All Small & Mighty vs. $34.96 for regular All.
This scenario appears to be a winner all the way around. Wal-Mart improves sales per square’. With fewer out-of-stocks Unilever and Wal-Mart sell more bottles of detergent. Consumers see the brand as innovative and view the lighter smaller package as easier to carry and space saving in the home. This marketing tactic is a natural to extend into other household cleaning products. Can it be adapted for other categories? A glut of products is eroding shelf space in virtually every category so the ability to manipulate a product to reduce the package size might make the difference between a retailer stocking your brand or someone else’s.
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