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I think I have the opposite reaction from the same data. The reason I can't get my own sugar water on a grocery store shelf is because the grocery store doesn't
by handmodel 5y ago
I think I have the opposite reaction from the same data. The reason I can't get my own sugar water on a grocery store shelf is because the grocery store doesn't want to give space to something that only sells half as well. And, they are humans too, so I'm sure they are biased by the ads/perception of what they think other people want.
I think a lot of the long-term bonus of ads is to simply build a moat that other competitors find difficult to surmount.
- nickff 5y agoI think you're overlooking a couple of grocery-specific issues. Many major retailers will require that new brands invest a certain amount of money in advertising product to their region/market before stocking the product. It's also common to 'lease' shelf space to manufacturers.
- handmodel 5y agoI think we largely agree. I know people who have launched food items (bug snacks) that were piloted in a dozen or so Whole Foods. They didn't sell enough in the trial period that they weren't given offer/lease to return. It was a super niche product they were making but were up against a couple products that I've at least seen ads for online. I think, theoretically, if those other companies didn't have a brand presence then perhaps my friends snacks would have had a slightly better shot at staying on the shelfs. However, from the other products data they may have seen no short-term gain from their ads.