Merchandising

&

Impulse Selling

Merchandising is combined use of

methods, practices & operations used to

promote & sustain certain categories in

and outside the store

1. Micro Merchandising

Allocation of space according to shopper need

focusing a certain outlet

2. Cross Merchandising

Is practice of displaying product in other

categories to generate additional revenue

3. Visual Merchandising

Promoting sku by their presentation to engage

consumers by capturing their attention

1. Primary Display

Permanent shelf display of the product within

the category

2. Secondary Display

Additional display may be permanent or

temperory

3. Impulse Display

For driving impulse sales and should be

position in accordance with category buying

behaviour

It is an unplanned purchase, did not intend to buy…

75% ++ of confectionery is purchased on impulse…

BUYER BEHAVIOUR / The Ah Ha Factor!

AVA = GRAB & Pay & GO - Enjoy.

IMPULSE PURCHASE ITEMS

Refers to items which the shopper did not intend to initially purchase. The decision is taken at the point of purchase.

Effective merchandising and accessibility help to stimulate impulse purchases.

The entire layout of a shop is tailored to maximize exposure of impulse items to increase the number of products in the shoppers basket.

What is an important asset a retailer has in their business ?

it’s.. SPACE!! There is a variety of space available such as:

Counter Space , Shelf Space ,floor space , fridge space

& Air space You/WE need to win the “race for space”…

“Grab the RIGHT SPACE”

Merchandizing done effectively will lead to: -

IMPULSE

SALES..

Impulse sales will not just happen because we have gained space in

a retailers outlet,

we need to be experts in identifying the hot spots on the counter, in

the store’s traffic flow and other high impulse areas such as drink

fridges and coffee stations.

The places where most shoppers will see and have access to your product.

The most attractive part of the shelf space for the best “selling results”

is the centre of the shelf.

To determine the hot spot, you have to consider:

Customer flow

Where payment is made

Position of key lines e.g. Bread, Milk,

“Eye level” display, “The Arc of Reach”

The Counter is a prime

location for any product

and for impulse

purchases Confectionery

=70%

Display & Merchandising in 21st Century Pakistan.

Areas of Sales Opportunity – Front Counter

“The Arc of Reach” 2 Square Feet.

Are you making “Profitable Sales” Within 2 Square Feet in the “Arc of Reach” in your outlet? In your face Merchandising ?

Merchandise your range So well (using the AVA Principles) that the consumer has to make a

conscious decision NOT to buy your product!

Mr Positive, o Brand loyalty will buy the same product time and again, generally will not

switch therefore if his brand is not available he will not purchase, lost business for the retailer.

Mr Peckish o This customer is hungry, but has not really decided what he wants to buy. He

will be first drawn by the display and then will make a choice. This means he is a semi impulse shopper

Mr Impulse o This customer is purely impulse. He has no intention of purchasing confectionery and

indeed has come into the shop to buy something else – Milk , can of soft drink, cigarettes etc.

Confectionery Entrance

Drink Fridges Food

Payment Area

Magazines

E B

F

C D

A

A – Shelf Space

D – Fridge Space E – Floor Space F – Mag Rack Space

B – Counter Space C – Hot Beverages Space

Availability

Product is available !! offering consumers the opportunity to purchase

products.

Visibility

I can see the product !! showing the products using impactful and eye-

catching P.O.S. material.

Accessibility

I can touch the product !! … presenting shoppers the convenience of buying

confectionery products in locations where traffic is high.

I can see the product and it is within “an

arms reach” for the consumer

Availability

Is the product available? (Distribution)

Visibility Can I see the product?

Accessibility Can I touch the product?

If you do not win at the point of purchase, you do not win!!!

The prize is rewarding…

From this…

To this…

AVAILBILITY – Product is available in the store! Distribution.

VISIBILITY – I can see the product! In my FACE Visibility.

ACCESSIBILITY – I can touch the product! - within 2 Sq Feet,

Product availability is key in maintaining sales and customer

loyalty.

When out-of-stock occurs, both the store and the brand suffer

because of its negative impact.

Product display is on eye level (buy level)

An item’s size, seasonality, and whether it is

promoted, all influence the shelf shifts that

occur from time to time.

Products placed within eye-level shelves can

increase sales by as much as 43%.

Shelf positioning dramatically affects sales when

visibility of products becomes the dominant factor.

Facing (according to respective Plano gram)

Facilitate the shoppers decision process, by improving the clarity on

the shelves according to:

Ensure that number of facings correspond to market share in the

specific channel.

Merchandising is not just filling the shelves.

Make your shelf display visible, and make sure our products are in the right display.

o Enough facings?

o Eye level/Positioning?

o In line with the planogram?

o Brand blocking?

o Eye catching manner?

o Enriched by POP Material?

o Right category area with competitors?

o Brands have the right space according to their market share.

Product Facings Index Sales

100

118 +8%

130 +10%

138 +6%

144 +4%

Extra Facings = Extra Impact = Extra Sales

Make sure the following criteria can be delivered:

Easy to touch

Reachable (within arm’s reach)

Stable, avoid shelving that will cause products to fall

down

Avoid placing the products

Behind a glass counter

On a back shelf

On a shelf that is too high or too low.

If it cannot be seen, it will not be bought

Remember:

o If you have distribution – you have Availability!!

o If you can see the product – you have Visibility!!

o If you can touch the product – you have Accessibility!!

The Checkout Counter Area is the best place

in the store to get extra / impulse sales

(every shopper must pass or come to this

area) – it’s the most difficult to resist!

Prime Position = Impulse Sales…

This space must be reserved for top sellers only with emphasis on variety of

brands.

Confectionery is the most suited category for the checkout counter area with the

highest turnover potential, and must therefore assume the greater proportion of

space.

Place counter stands and units within the hot spot area

They should be secured (glue or screw) to the counter so as to gain

permanency

Also minimize the chances of them being moved.

Confectionery can be

merchandised and sold in

many locations around the

store.

Present shoppers the

convenience of buying

confectionery

in locations where traffic

is high.

Show interest in helping &

consulting the customer.

Develop credibility

Improve level of customer

service

Will be listened to in

the future.

Shopper

Sales

/Merchandiser Retailer

Increase impulse purchase –

Confectionery = 75%

Improve general store

appearance

Attract more regular customers

Increase his total sales & profit

15-Nov-14 31

OPPORTUNITIES

Summing up

Availability / Listings Distribution – MML - Channel

Visibility EYE/THIGH Can I see it-eye level=BUY

Reachability Can I touch it ?

Freshness Stock Rotation

Activation/Prompt To Purchase

Location C / S / F Traffic Flow

Merchandising@ POP Permanent- Engage-MPOI

46

1

2

2

3

3

4

6

7 7

7

5

Materials should be clean and current,

They represent our company & YOU.

Remove any old or damaged POP and replace with new.

Do not leave stickers and other POSM for the dealer to fix. Do it yourself.

POSM. is an expensive investment. Use it effectively.

Remember it is a competitive weapon.

Remember to have the RIGHT tools to do the job. GLUE / Tape

Make your POSM Investment last –BE SMART –BE PERMANENT

49

50

Headers to drive internal

and external visibility

Moving signs to

interrupt the shopper

New Shelf

strips

Case study.....Experiment/Be Curious/Possibilities..

Use visualization with «right communication» (toppers, flags, shelf-frontiers), which gives following advantages: Turns shoppers into Stoppers

Builds the mood for buying, additional impulse

Interactive dialog of the category with shoppers

Shopper understands the category and make their choice.

INTERUPT – ENGAGE - CONVERT

Thank you