Packaging is a key element of products selected by Wal-Mart.
With nearly 9,000 locations in 15 countries, Wal-Mart Stores Inc. is by far the largest retailer in the world. Having a product added to its merchandising selection can be a major coup for a manufacturer. Not surprisingly, the company's headquarters in Bentonville, Arkansas, is regularly visited by manufacturer representatives eager to crack one of the hundreds of product categories offered by the giant retailer. The products selected must meet a rigid set of criteria that includes the manner in which the product is manufactured, packaged, distributed and marketed.
Instructions
Overcoming Predictable Objections
1. Propose only those products that are is consistent with Wal-Mart's value-driven business model. They should appeal to a customer base accustomed to low prices. The retailer is unlikely to add something new that will erode the sales of an existing item. Establish a compelling point of difference that is easily discernible to the buyer and, ultimately, the average consumer. Have a firm grasp on the category in which the product will compete, including market share data and projected growth.
2. Package the product in a manner that draws attention while optimizing every inch of shelf space. Wal-Mart buyers look favorably on items that fit snuggly on the shelf and are easily stacked. As a result, many Wal-Mart vendors have adopted packaging with squared corners, as opposed to the more traditional rounded bottle shape. The packaging should have a unique identity and not seek to mimic the look of a competing brand.
3. Establish a production and distribution pipeline that is suited to the demands of a high volume retailer. Wal-Mart has been a pioneer of "Just-In-Time Distribution," which is designed to minimize the amount of space used to store inventory before it is shipped to stores or placed on shelves. The company expects its vendors to deliver shipments to its distribution centers in a timely fashion. The ability of a vendor to meet demand -- and handle returns -- in an efficient manner is as crucial as the product itself.
4. Anticipate the objections of buyers. Be prepared to explain the niche the product fills and the value it offers consumers. Unless the product is a high-profile introduction from an established company, buyers are predisposed to say no. Be prepared to offer projections on how many units will sell in a given period of time ("average turns" ), the expected markup and how much space is required to merchandise the product. The marketing plan created to support the product will also be a primary concern for the buyer.
5. Contact Wal-Mart either online or by phone to begin the formal application process. Those applying to be vendors are asked to furnish a detailed profile of their companies, including third-party financial reports. Products must include a universal product code (UPC) identification number and must be manufactured in accordance with laws covering labor practices and environmental impact. Those considered must demonstrate they have the production capacity to accommodate high volume orders and returns. Only those companies that overcome these administrative hurdles are invited to meet with a buyer at the retailer's headquarters.
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