I.

Introduction

On the past week, I have explored the products available in different store types around

Metro Manila. I have been to SM Supermarket, North Edsa branch, and 7-eleven, Sienna Del

Monte branch on July 29, 2011, and to RJ’s Sari-sari Store, in East Canumay, Valenzuela

City, on July 30, 2011. This paper aims to show you the findings that I have learned through

the store checking of my chosen product, toothpastes.

II. Learnings

A. Distribution

PRODUCT VARIANTS SM SUPERMARKET 7-ELEVEN RJ's Sari-sari Store

    100mL 50mL 25mL sachet 100mL 50mL 25mL sachet 100mL 50mL 25mL sachet
Close-up Regular N/A 1SKU N/A 1SKU N/A 1SKU 1SKU 1SKU N/A N/A N/A 1SKU
  Icy Frost 1SKU 1SKU N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
  White Now 2SKU N/A N/A N/A 1SKU N/A N/A N/A N/A N/A N/A N/A
    TOTAL: 6 SHELF KEEPING TOTAL: 4 SHELF KEEPING TOTAL: 1 SHELF KEEPING
UNITS OF CLOSE-UP UNITS OF CLOSE-UP UNITS OF CLOSE-UP
    TOOTHPASTE TOOTHPASTE TOOTHPASTE
    100g 90g 50g sachet 100g 90g 50g sachet 100g 90g 50g sachet
Colgate Fresh Confidence Night N/A N/A N/A N/A N/A 1SKU N/A N/A N/A N/A N/A N/A
  Fresh Confidence CC N/A N/A N/A N/A 1SKU N/A N/A N/A N/A N/A N/A N/A
  Triple Action N/A N/A N/A N/A 1SKU N/A 1SKU N/A N/A N/A N/A N/A
  Twin Pack N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 1SKU
    TOTAL: 0 SHELF KEEPING TOTAL: 4 SHELF KEEPING TOTAL: 1 SHELF KEEPING
UNITS OF COLGATE UNITS OF COLGATE UNITS OF COLGATE
    TOOTHPASTE TOOTHPASTE TOOTHPASTE
    190g 75g 25g   190g 75g 25g   190g 75g 25g  
Pepsodent Regular 1SKU 3SKU 1SKU   N/A 1SKU N/A   N/A N/A N/A  
  Whitening 1SKU 1SKU N/A   N/A 1SKU N/A   N/A N/A N/A  
    TOTAL: 7 SHELF KEEPING TOTAL: 2 SHELF KEEPING TOTAL: 0 SHELF KEEPING
UNITS OF PEPSODENT UNITS OF PEPSODENT UNITS OF PEPSODENT
    TOOTHPASTE TOOTHPASTE TOOTHPASTE
    150mL 100mL 50mL   150mL 100mL 50mL   150mL 100mL 50mL  
Hapee Icy Fresh Red 2SKU 1SKU N/A   N/A N/A N/A   N/A N/A N/A  
  Fresh and Cool White 2SKU 1SKU 1SKU   N/A N/A N/A   N/A N/A N/A  
  Kiddie Strawberry N/A N/A 1SKU   N/A N/A N/A   N/A N/A N/A  
    TOTAL: 0 SHELF KEEPING
TOTAL: 8 SHELF KEEPING TOTAL: 0 SHELF KEEPING UNITS OF HAPEE
    UNITS OF HAPEE TOOTHPASTE UNITS OF HAPEE TOOTHPASTE TOOTHPASTE
    100g       100g       100g      
Sensodyne Original 1SKU   N/A   N/A  
  Gumcare 1SKU   N/A   N/A  
  Gentle Whitening 1SKU   N/A   N/A  
    TOTAL: 3 SHELF KEEPING TOTAL: 0 SHELF KEEPING TOTAL: 0 SHELF KEEPING
UNITS OF SENSODYNE UNITS OF SENSODYNE UNITS OF SENSODYNE
    TOOTHPASTE TOOTHPASTE TOOTHPASTE

The number of varieties of products available on a store depends on the size, the location

and the number of possible customers the store may have. In the table above, we can see that SM

Supermarket has the most number of products available and RJ’s Sari-sari Store, on the other

hand, has the least number of products available.

This is caused by the size of the store; since the sari-sari store has the least space, the

owner needs to choose the product that will be more sellable in the area. This is also caused by

the location; sari-sari stores are most likely to be located around residential areas. So, the owner

chooses to sell products that are categorized as the basic needs of the residents. And the number

of possible customers; since the customers will most probably be the residents around the area,

the owner will limit the stocks in the store to provide enough for the people.

As we can see on the table above, SM Supermarket is not selling Colgate toothpastes.

According to www.sminvestments.com, since July 2009, SM has not been carrying Colgate-

Palmolive products, insiders say that Colgate-Palmolive pulled out their products from SM

stores. This was due to either an issue with the billing process or a disagreement with the terms

of trade.

B. Pricing

PRODUCT VARIANTS SM SUPERMARKET 7-ELEVEN RJ’s Sari-sari Store 

    100mL 50mL 25mL sachet 100mL 50mL 25mL sachet 100mL 50mL 25mL sachet
Close-up Regular -- 37.75 -- 6.13 -- 46.00 27.00 8.00 -- -- -- 8.00
  Icy Frost 63.75 39.75 -- -- -- -- -- -- -- -- -- --
  White Now 66.75 -- -- -- 75.00 -- -- -- -- -- -- --
    100g 90g 50g sachet 100g 90g 50g sachet 100g 90g 50g sachet
Fresh Confidence
Colgate Night -- -- -- -- -- 82.00 -- -- -- -- -- --
  Fresh Confidence CC -- -- -- -- 78.00 -- -- -- -- -- -- --
  Triple Action -- -- -- -- 75.00 -- 48.00 -- -- -- -- --
  Twin Pack -- -- -- -- -- -- -- -- -- -- -- 7.00
  190g 75g 25g   190g 75g 25g   190g 75g 25g  
Pepsodent Regular 57.75 34.75 7.5   -- 41.00 --   -- -- --  
  Whitening 72.75 38.75 --   -- 45.00 --   -- -- --  
    150mL 100mL 50mL   150mL 100mL 50mL   150mL 100mL 50mL  
Hapee Icy Fresh Red 61.75 46.75 --   -- -- --   -- -- --  
  Fresh and Cool White 59.75 42.75 29.75   -- -- --   -- -- --  
  Kiddie Strawberry -- -- 36.75   -- -- --   -- -- --  
    100g       100g       100g      
Sensodyne Original 99.00   --   --  
  Gumcare 110.00   --   --  
  Gentle Whitening 110.00       --       --      

Prices of products in different store types differ due to different factors. For example,

convenient stores and supermarkets. In convenient stores, which products are most expensive,

since they are open 24 hours, they need to pay more for their overhead. To be able to balance

their expenses with their sales, they need to increase the markup to the prices of their products.

Another is, for some travellers, they can buy things they need along the way. They do not need to

change their path, which is time consuming, to go to supermarkets. For supermarkets, they offer

a lower price because they can buy in volume from their suppliers. Also, they are serving at a

regular number of hours, so they do not need to give a higher markup to have profit.

For sari-sari stores, they also offer a high price because it gives the consumer

convenience. For example, if a consumer will only buy toothpaste, he would not go to a

supermarket just to buy toothpaste, a better choice would be visiting a sari-sari store nearby.

C. Facing

PRODUCT SM SUPERMARKET 7-ELEVEN

Close-up 25% 40%
 Colgate -- 40%
Pepsodent 15% 20%
Hapee 15% --
Sensodyne 5% --
Other brands 40% --

The space given to a product brand depends on the number of SKUs that they have paid

for, which is depending on the number of variants they have. For example, in SM Supermarket,

Close-up has the most percentage of space on the shelf for toothpastes. This is because it has the

most number of variants; therefore it needs to pay an SKU per variant, resulting to a larger space

on the shelf compared to other brands that has less number of variants.

D. Merchandising

An organized display is a factor that attracts a customer to buy a product. A product must

be visible for the consumers to buy it. In SM Supermarket, toothpaste products are properly

displayed with their product brand facing the customers. This will give the customer more

convenience in finding the brand he plans to buy. Also, some brands have extra shelves on the

aisles and near the cashiers. This may attract more customers to buy a product, because they are

more visible than those on the original shelves. They may give a customer the idea of buying that

product after they have seen it displayed on the more visible parts of the store.

In convenient stores, since they have a limited space, not all products are displayed with

the product brands facing the customers. They have to maximize their space, besides, most of

their customers will have a specific product to buy set in mind before they go to the convenient

store.

III. Conclusion
 Different types of stores have a lot of differences, but they have one goal, that is to attract

customers. Each has their own strategies in doing it, because each type has a different role in

the society. A supermarket supplies the needs of the people even from different cities. A

convenient store serves well for busy travellers. A sari-sari store provides the basic needs of

the people in a neighbourhood. There are factors we must first consider before we compare

the three store types because they fall in different categories.

IV. Recommendation

On my store check, I have not seen promos on my chosen products. I believe it is better

for a product to have promos like savings, buy one take ones, tie ups with other products and

other more, because it can attract more customers to buy those products. Especially for those

brands that are new in the market, they can build up their name faster if they will make an

alliance with different but related products that are already known to the possible customers.

The products on the shelves must be organized all the time. If many of a product were

bought that day, it should, at once, be replaced by a new stock, because though that will give the

customer an idea that that particular product is sellable, the blank space will give way for the

display to be disorganized. And a customer will never be attracted to an unorganized display of

products.