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Merchandising in retail chains

Due to the growing share of competition in the market, attracting the attention of your target audience – one of the most effective ways to promote. Proper interaction of the product with the buyer at the point of sale increases the likelihood of its purchase. To implement the task, there is a whole range of activities, for which a separate marketing direction is responsible – merchandising.

 

What is merchandising

To increase the percentage of sales, companies develop their own strategies, which are implemented in various ways. At points of sale, special attention is paid to the location of products, informing visitors about the benefits of the product, working out its attractiveness against the background of competitors' offers, etc. All events pursue the main goal – influence the decision of the visitor of the outlet to purchase their product.

Merchandising – this is a separate vector of work, a marketing strategy aimed at stimulating sales in retail. With its help, conditions are created for optimal interaction between the client and the company's product. Qualitatively performed actions in this direction can significantly increase the percentage of sales, which has been proven by numerous studies. For example, 75% of shoppers make a purchase decision while in front of a shelf in a store. If you present your product correctly at this moment, then the probability of choosing in its favor increases. It is this task that merchandising – stimulates to buy using various tools of influence.

Target goals:

  • cause a desire to buy
  • build loyalty to a particular brand or brand
  • increase the percentage of sales
  • reinforce the desire to purchase products of a particular company
  • make the offer recognizable at a glance on the packaging

All of them are achieved by organizing a whole range of activities, the development of which requires preliminary preparation and preparation of a strategy and methods of implementation.

 

Merchandising Tasks

Properly set tasks will help you achieve your goals. To promote and grow sales, you need:

  • provide as much product information as possible
  • talk about the benefits of buying
  • inform about the location of products on the sales floor
  • monitor the actions of competitors and make sure that your own offer has competitive parameters
  • pick up tools of influence that convince you to buy the product "here and now".

Completing these tasks will increase sales, as well as track the place of your product in the list of other offers.

Attention should be paid to the communication interaction. It is communication with customers through the external design of the product, its placement on the shelf that makes it possible to influence the decision to purchase and, as a result – to increase sales.

Tools used by merchandising in their work:

  • correct design of price tags
  • development of layout planogram
  • using trade equipment
  • designing points of sale with promotional materials

Development of – the task of marketing, which knows the right methods of influencing consumers, using non-verbal means of communication.

 

Rules, principles of product placement

The way the products are placed on the shelf, in what part of the hall it is located, in what product neighborhood, directly affects the level of sales. Manufacturers who are aware of this fact take the issue seriously, developing a complete strategy for the placement of their range.

Methods by which company representatives can influence the buyer on the trading floor:

  • offer assortment
  • color contrast
  • place advertising objects
  • brand the outlet
  • implement a set of measures

When implementing the methodology, it is necessary to correctly select and apply the means to be used. This includes objects and design that can influence the attention of the buyer, attract and keep him at the shelf with products, and motivate him to purchase. They are divided by location into internal and external.

External merchandising tools:

  • exterior design of facades, signboards and shop windows
  • advertising in parking lots
  • advertising on the territory adjacent to the store

Internal tools:

  • stands for placing marketing materials: handouts or fixed (posters)
  • shelves with pockets for flyers
  • price tags
  • garlands with product image
  • floor stickers
  • 3D structures
  • sound ads

The purpose of posting such materials – remind the visitor of the existence of such a trademark and its presence on the shelves in this network. At the same time, it is important not to overdo it with the amount of advertising and adhere to a number of rules:

    1. The color scheme of materials should be associated with a specific brand
    2. It is better not to use several contrasting colors at the same time, so as not to tire the visitor's eyes
    3. Don't use too many small elements
    4. The main means of communication should be placed in a spacious room
    5. Striving for the optimal combination of practical and functional side of communication tools

It is also necessary to take into account the peculiarities of laying out products on the shelves. 3-5 shelves are considered optimal for the consumer. They are at "eye level". If the target audience is younger, then it is advisable to lower such a product one shelf lower so that it is accessible to its consumer. There are other principles, the application of which helps in indirect sales:

  • positioning the package facing the buyer, in sufficient quantity to be noticed among other offers
  • The height of the shelves should correspond to the size of the product so that it can be easily reached, but at the same time there is no free space between the shelves
  • it is better to place little-known brands next to strong competitors in order to take advantage of their image

Each approach should be used thoughtfully, having previously tested the marketing technique and obtained data on its effectiveness for a particular product or brand. A detailed development of the layout planogram will help with this.

 

There are a number of principles for displaying products on store shelves that have already proven their productivity in practice:

  1. Compatibility – the rule of observance of the product neighborhood, in which the products laid out next to each other should not give a negative connotation to each other.
  2. Visibility – the product must be freely available so that it can be freely viewed and studied in detail.
  3. Systematics – when a product is placed in the department that best suits it.

Taking into account the basic principles and recommendations, do not forget about the features of a particular proposal, and it is taking into account its strengths to develop a promotion methodology. Also, it is important to choose the right equipment for product display and how to design it.

 

Product display equipment

Retail chains and individual stores use various types of equipment to demonstrate products. The design option and how it is designed directly affect the appearance and attractiveness of the product that is placed on them. Commercial equipment plays the role not only of rational placement of goods, but is also used as a tool for merchandising. For the display of goods, the following types of equipment are used:

Same products


Their design may serve as part of an advertising campaign for a particular product or brand. Commonly used methods for using display cases and other equipment for marketing purposes include:

  • composite – a dummy is placed in a beautiful design, in sizes exceeding the real ones for the advertised products, in order to attract attention
  • combination of color and text -  the showcase is occupied by the description of the product, its bright color representation, but not by itself
  • commodity – the product itself is placed on the shelves with decorative elements

Use of trade equipment in merchandising – sound and proven method of interacting with customers. It allows you to achieve the main goals – sales growth and, as a result, optimization of the trading system as a whole. The acquisition of quality equipment opens up opportunities before marketing events and merchandising – including.

 

Company "OLTEBA" - a reliable partner in the field of selection, supply and installation of commercial equipment, including for advertising and other events aimed at interacting with store visitors. We will help with the choice of equipment that is best suited for demonstrating goods in the trading floors. We use an individual approach to each client, which contributes to the selection of equipment that best meets all the requirements of the customer. We carry out installation and maintenance of equipment, we offer modern models at affordable prices. Feel free to contact us!