Does cadbury and coca cola pay for shelf space in supermarkets?

Question

im doing and assignment and need to know if big companies pay money to supermarkets for them to put their products in the best place and how much do they pay

Answer 1

That's a great question I'm not sure what the answer is, as a marketing major, I'm ashamed to admit that. I know that shelfing is very important - eye level items are typically more expensive then the items below or above. Eye level items are usually the most popular too - Id imagin that heinz ketsup is placed higher on the shelf compared to Hunts.

I believe the answer is basically NO to the question though b/c the supermarket wants the shelves to continually be restocked (or wants the items sold quickly) and if you have to pay them to shelve it that may raise a red flag. That being said I would not be suprised if newer items whether new companies or existing companies promoting new products would offer a commission or a kickback if they stock their product in a 'hot spot'

Answer 2

Yes only big box stores especially Walmart one of the benefits Walmart can pay on consignment if they display coca cola in different parts of the supermarket .Smaller companies give Walmart perks like vacations, free product

Answer 3

Yes - paying shelf space or slotting is a well known practice.

It can be as much as $25,000 per item.

See the following article "Supermarket Space is Pricey; Some Say Shelf Fees Limit Competition" by Dinah Cardin

Link: http://www.sbc.senate.gov/record.cfm?id=191105

Answer 4

They certainly do. These fees are for the allocation of shelf space to their products, as well as for other consideration, and are called slotting fees. For example, some companies pay supermarkets a slotting fee to be the lowest priced supplier in their category.

Some slotting fees are amazingly significant. For example, the national candy companies pay the supermarkets thousands of dollars an inch sometimes to get their candies there at the check out line, where you always see them.

Answer 5

The way to get products into the store is to pay, you would pay even more to get them in a place that is "marketable." This however causes problems, shelf space fees limits competition, which in turn drive up every day prices for the consumer. The website below is a great find for your report.

Answer 6

cadbury coca cola pay shelf space supermarkets

Answer 7

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Answer 8

every product you see in a grocery store (big name stores-Kroger,Publix etc..) pays whats called a slotting fee, for the privilege of being there

Answer 9

yes they do. Price depends on store/location/popularity of product.

Answer 10

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