The key merchandising tools are: store design (both external and internal); store planning (more precisely, planning customer flows); advertising and other tools at the point of sale; color blocking; range of goods; comprehensive measures.
Customers' perception of the internal environment, or atmosphere, of a store depends on two factors - the attractiveness of the store environment and the psychological readiness of the potential buyer to make a purchase. In a pleasant shopping environment, the intention to make a purchase is activated by stimuli such as the color scheme of the interior and the sound of light music. If the situation is unpleasant for the client, for example in a dental office, then using muted colors and soothing music will help reduce psychological arousal. The results of experimental studies of supermarkets show that for buyers the attractiveness of the environment is a relatively more important factor than the price and quality of the product.
Sales point design. The interior of the point of sale contributes to the successful sale of goods and increased efficiency of commercial activities. Whether it is an expensive wine boutique or a small cafe, there must be some own features that define the “brand identity”. A modern store is considered not only as a place for the direct sale of goods, but also as a comprehensive means of promoting them.
The human eye is a much more subtle instrument than many people imagine. Information about the place of sale enters our unconscious, largely bypassing our consciousness, and forms sensations. This allows the buyer to determine the relationship with the point of sale literally when he crosses the threshold. At the same time, we must remember that the appearance of the place of sale should not contradict the internal content, i.e., goods and level of service, since unjustified expectations of the buyer may turn him away from the desire to make purchases in this store. Store Design Features:
attract customers' attention to the point of sale;
make products more attractive;
create harmony between the buyer, the place of sale and the goods;
organize the space, making goods easily accessible;
provide the buyer with a new sensory experience.
There are five basic principles of store design: balance, emphasis, harmony, proportion, rhythm.
Object semiotics allows you to implement the function of recognition (for example, a model of the Eiffel Tower in a store), stimulation of pleasure (aesthetic compositions), psychological warmth (sculptures of animals and playing children).
Lighting in merchandising solves the problems of decorative design; it must be harmoniously linked with the interior architecture of the store. Stores typically use both natural and artificial lighting. Natural lighting is used if a sufficient geometric luminous coefficient (K c) is observed, which is determined by a special formula.
Color significantly affects people's feelings and their mood. Thus, red color excites, but quickly tires; orange is perceived as hot, it warms and invigorates; green color has a calming effect on the human nervous system and relieves irritation; gray causes apathy and boredom; black color sharply reduces mood, etc.
If you assign each department its own color, which will dominate its design, this will help customers quickly navigate and find the right product. These colors should be unmistakably associated with the type of products in the department, and they will also emphasize the positive characteristics of the product.
Smell as a merchandising tool is interesting because in this channel a person does not have the same filter of distrust that exists in the auditory or visual channels.
There are other merchandising tools:
The manufacturer in its merchandising strategy will most likely indicate the set of brands and packaging that it will promote at each outlet. Obviously, this mix can be differentiated across different sales channels. For example, in pharmacies the buyer is more likely to expect to find a wider range of medicines than in small pharmacies. Brands and packaging that are most popular with customers should always be on shelves, therefore, purchases from suppliers should be made in proportion to sales. Moreover, products should occupy shelf space in accordance with sales levels. This is necessary to ensure that the best-selling products are always in sufficient quantity.
Effective location of sales points in the hall and display of goods. The main (for example, a section of drugs used for respiratory diseases) and additional (for example, a rack or display) points of sale in pharmacies with free access to goods should be located in accordance with the flow of customers on the sales floor. An additional point of sale gives the buyer another chance to see and choose the product. Therefore, it is located separately from the main one, and the best-selling products are duplicated on it. Additional sales points are especially effective when located along the outer perimeter of the sales area (where 80% of buyers pass), as well as near the cash registers. Products should be laid out in such a way that finding the right product is as easy as possible. To do this, you need to create visible blocks on the shelves by brand, packaging and product group. It should be remembered that the lower shelves of the sections are not visible, and in large pharmacies they account for only 5% of sales of the entire outlet. Therefore, you should strive for vertical brand blocks. The display should also organize the borrowing of popularity by weaker brands from stronger ones. To do this, strong brands (medicine positions) begin and end the row on the shelf. Thus, weak (less familiar to the consumer) drugs will be located within the “castle walls” organized by strong products, and will borrow additional customer attention from them.
- 1. store design (both external and internal);
- 2. store planning (more precisely, planning customer flows);
- 3. advertising and other tools at the point of sale;
- 4. color blocking- on average, a supermarket visitor scans the shelves of goods at a speed of 1.2 m/s from a distance of 2.5 meters. To make packaging stand out from hundreds of others, retailers and designers sometimes use color blocking. Its essence is that products with packaging of the same color are placed together on the shelf. As a result, a single-color block of products is created. At the same time, blocks that combine different colors can create associations that are useful for selling. For example, blocks of white, green and blue can evoke a relaxing and refreshing surf. This combination is good to use in the department where shower gels and other detergents are sold.
The opposite way of attracting can be contrast - not only in color, but also in shape. For example, a familiar product - a liter pack of juice - clearly stands out on the shelf due to its narrower and elongated packaging. Unfortunately, some stores are afraid to experiment with non-standard shaped packaging due to the fact that they take up a lot of space.
5. merchandise ranges- no product, in theory, should “take a neutral position” in terms of impact on the buyer. So, it is better to display fruits or perfumes in front of a large supermarket or department store. This helps create a feeling of freshness and luxury. Products related to impulse purchases are placed in key positions. The joint arrangement of products that complement each other (cross-merchandising) encourages the buyer to make a complex purchase. For example, T-shirts and shorts, pasta and pasta sauce. The joint display of bread, cheese and sausage on one shelf in one large supermarket significantly increased the volume of purchases of all three products. Approaching this shelf, the buyer remembered the sandwiches and took everything he needed at once.
The well-known maxim: “full shelves sell out better” applies well to giant shopping centers, but is not entirely true in small boutiques.
6. comprehensive measures - Imagine walking into a multi-story supermarket and being greeted by a 3D head projection. As you walk, the head moves with you through the air, without visible support, and tells you about the new products in the store. Then a pair of huge lips on the glass begins to move and invites you to familiarize yourself with the new collection of winter clothes. Moreover, the lips explain, you don’t have to try it on. All you have to do is stand in front of the magic mirror, choose a clothing model, and in a matter of seconds your reflection will be dressed.
This system has been used for many years. The only problem with high-tech tools is that the buyer focuses on them instead of thinking about the purchase. On the other hand, this system allows you to attract customers to specific products that would otherwise go unnoticed among several thousand others in the supermarket.
The use of sound effects is widespread. Moreover, it is not limited only to the transmission of oral announcements. Sound effects can create an appropriate atmosphere in different departments of the store (for example, dynamic music in the sports department and loud sounds from video walls) or an appropriate mood (for example, forcing the buyer to move faster or, on the contrary, relaxing). There are also audio dialogue systems that can ask customers questions. Finally, using sound you can control children's attention.
To change the buyer's mood and provoke him to make purchases, various smells are often used inside the store. The Monell Chemistry Science Center in Philadelphia has launched its pilot projects, the purpose of which is to study the effect of certain odors on consumers. For example, a well-known, in this case floral-fruity, smell made random visitors to a jewelry store stay there longer. And very low levels of some odors could change an individual's train of thought and mood (for example, relaxed and trusting). In the UK, some home goods retailers use the smell of a bakery/cafe to entice customers to enter the store and buy goods that have nothing to do with food: clothes, lighting equipment, etc. Note that in supermarkets the smell from the fish department is not so strong , like the pervasive smell of freshly baked bread from the bread department.
There is a London-based firm called Marketing Aromatics, which proposes to create “a unique atmosphere in a store, relax a patient in a waiting room, energize sales staff or evoke associations in the minds of customers” using a variety of techniques: “from central ventilation systems to hand-held sprayers, liquids, granules, gels and powders. There are even pressure-sensitive tapes with microcapsules. All this creates the desired mood, eliminates unpleasant odors, impregnating the product or corporate literature, confirming the unique feature of the company - the aromatic logo.”
For many parents, going to the store with their children is sheer agony. Children want and ask for something all the time. Some stores offer the following service. The child is given packets of yogurt upon entry. A baby engrossed in food is less capricious. And then at the exit, parents pay for these yoghurts by presenting empty packages.
Another interesting invention in this area, which also appeared in Russia, is fairy tale telling machines. They look like animals, trees or Santa Clauses. They continuously read fairy tale after fairy tale in choreographed voices, which can also captivate children for a long time.
It is not recommended to place products for children too high, out of sight of the child. He must see and want. It's even better if the child touches the toy. Touch is the oldest and one of the first forms of declaring the right to property. It will only strengthen the desire to own this particular toy, and the child will ask you to buy it for him.
The winning features of a product can be emphasized by properly selected lighting. General illumination also affects the buyer's reaction. For example, in a room with dim light he feels more relaxed. At the same time, a person tends to move from a less illuminated area to a more illuminated one, so dim lighting, which may be good in an antique shop, cannot be used in a supermarket.
A good way to attract additional customers is to sell goods through vending machines. There are a number of goods that are very convenient to purchase this way, for example, cigarettes and drinks. Or products related to the intimate sphere, for example, contraceptives, which people are usually embarrassed to buy from real sellers.
A long-known way to persuade people to buy is to demonstrate the properties of the product in front of the consumer. For example, a special fabric stretching machine will demonstrate how durable the denim is. Or the strength of shoes, which an insensitive machine abuses, either bending them or lowering them under water.
When posting products, you can make a link to complementary products that are not included in the standard package, because it is easier to convince the buyer to immediately purchase a set of things than to come back for a purchase again. In addition, many buyers love recommendations and suggestions about which product goes best with which.
And many other merchandising tools can be used comprehensively in large stores. However, sellers are often obsessed with the idea of compact placement of goods and obtaining maximum profit from each square meter of space. This leads them to stubbornly refuse the merchandising tools provided by the manufacturer.
Interestingly, merchandising tools are the same for different countries. But each of them has its own combinations and ways of using them, just as in painting, with the same brushes and paints, pictures are created that bear a national imprint.
If we consider the essence of merchandising in more detail, we can highlight several important components:
1. Placement of POS materials. POS materials are advertising and information materials that are placed directly in the area of the store where the product is sold. Let's consider the characteristics of the main advertising media currently used in stores and the features of their use:
Today, almost all manufacturers use these technologies to attract customers. And since the competition is great, then, accordingly, manufacturers and their advertising agencies are faced with the need to choose more and more unique, more interesting, and, consequently, more effective methods of promoting goods. That is why these new ones are appearing today: sound, light, taste solutions.
2. Working with sales personnel (sellers and sales floor administrators) is the most important.
Store employees must understand the comparative features of the goods presented in the store. They must communicate with customers and recommend that they make this or that purchase, and must be able to talk about the advantages of this or that product. In the absence of a merchandiser, it is the store employees who can maintain the display of goods and monitor the availability of POS materials on the sales floor. Lack of proper attention by store employees to price tags, advertising materials located on the sales floor, and even their own signs often leads to simply comical situations.
By listing the most important points that make up the essence of merchandising, we understand that it is a useful applied science that combines knowledge of trading and advertising methods with the basics of design and composition, elements of logistics, sociology and psychology.
No art can exist without support from psychology. The psychological basis of merchandising, as well as the basis of advertising in general, is the method of combined sensory influence on the buyer.
The sensory components of the impact on the buyer include such factors as:
Lighting. An integral part of creating a good mood and positive emotions for a store visitor. Good lighting helps to present the product favorably and thus increase sales; accordingly, poor lighting has an extremely negative effect on their volumes. The main thing here is not to overdo it! Special lighting effects attract the buyer's attention, distinguishing the product from similar ones. But the lighting, for example, should not be too bright, otherwise the buyer, literally, will be “blinded” by the magnificence of the product and will not be able to look at it - due to complete blindness.
Use of colors and color combinations. Color has a physiological effect on a person, causing bad or good health, increasing or decreasing the effectiveness of advertising. There is a special theory of color perception, relying on which will help you choose the right colors of printing POS materials and combinations when displaying goods in a window or on a shelf in a sales area. A combination of shapes and objects. The impact on a person can be neutralized or aggravated depending on the shape of the object (attractive, intriguing, pleasing to the eye or hand), the size of the room, or a combination of both. Using the architecture of space, you can attract customers to the store or create an impression of the importance or insignificance of a particular product. It is known that shape and color combinations can be used as a specific code of influence.
Mobiles. Posters attached to the ceiling
Special price tags. Ordinary price tags, only increased in size and with the manufacturer’s logo
Posters. Typical retail decoration
Leaflets and dispensers. Same thing. Namely trays for handouts
Neck hangers. Price tags for bottles placed on the neck of the product
Smells can also change the buyer’s mood and provoke him to make purchases. Therefore, aromatic influences can also be used in stores. Unlike visual accents, smells have a larger area of effect. And although not all customers have a positive attitude towards the aroma in the room, many stores are of the opinion that smells are a good “lure”. It’s just important not to overdo it here: the aroma should be true, and in addition, create a feeling of comfort and lift your spirits. For example, during the holidays, the traditional scents of pie and vanilla drive sales to the max.
It is known that people react very sensitively to all the positive aspects accompanying their purchasing activities. From a psychological point of view, sellers and merchandisers are people who can link the interests and plans of the buyer with the ambitions of the manufacturer.
And yet, no matter how much merchandising is called an art, it is, first of all, a direction of marketing, and one of the most important factors determining the use of merchandising remains the promotion of goods. Merchandising begins from the moment the buyer sees the next store, and ends when the buyer leaves the store with his hands full of purchases, and the manufacturer pockets the profit.
Speaking about new promising merchandising opportunities for manufacturers, it is impossible not to mention its new dynamically developing technology, namely, on-line merchandising, developed in 1999 by American specialists. Its essence is to create a project management information system with on-line access. Placing such a system with authorized access on the Internet allows the agency client to personally monitor the development of a merchandising project, namely: promptly receive reports from points of sale and personally monitor sales statistics in real time.
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Product and its price (20 sub-items);
Supplies (11 requirements);
Marketing budget (13)
Professionalism of staff (17 attributes) - assistance in product display and merchandising, fast order processing, awareness of the retail market - new trends
Fifth - a group of emotional selection criteria (11 attributes) - what is objectively or subjectively assessed in the supplier partner, i.e.: professional advice on increasing sales of a retail outlet,
high knowledge of the product - its characteristics, production methods, quality parameters, training
training of point of sale staff,
legal information about competitors,
car branding,
innovations in the sale of goods - new types of sales and deliveries.
Supplier selection criteria.
It is important to properly select and evaluate a supplier to reduce performance risks and disputes.
brand awareness, incl. and international:
reputation of TM, its image;
customer loyalty;
product liquidity;
certification and set of documents;
quality standards, environmental friendliness and its control;
victories and medals at exhibitions;
breadth of assortment;
range of additional products;
updating of goods, rapid release of new items;
convenient transportation and storage packaging;
shelf life of goods;
special price from the supplier;
price stability for at least 3 months;
warning about price changes 7-10 days in advance;
high profitability of the product (15% and above);
deferred payment, credit for sales;
consistency of payment details, etc.
suppliers:
delivery on time;
deliveries, in accordance with the agreed assortment;
specific calculation of inventory and goods in the hall (goods must be listed using the formula 7+3, i.e. goods that will be sold in the next 7 days + 3 days in stock);
free first delivery;
own machine park;
speed of delivery - call from the retail outlet, and the supplier will deliver the goods within the day;
return of expired goods;
return of illiquid goods;
unloading of goods by the supplier;
exclusive conditions;
order via the Internet;
special software from the supplier for accounting and control of the sales process;
Constantly informing trading partners via the Internet, corporate newspaper, etc.;
easy to call and find the right manager;
branded clothing of the supplier's staff.
trust and confidence:
attention to store problems;
participation in the supplier’s corporate events;
psychological support during difficult periods;
pleasure:
friendliness, openness and unobtrusiveness in the behavior style of the supplier’s personnel;
charm, neatness, pleasant staff;
ease:
congratulations on holidays, etc.;
smooth, good relationship
The staff themselves like the product
budget - there are 13 requirements for what a supplier can offer to its trading partner in order to sell the product more effectively.
discount program for trading partners;
allocated amount for marketing financing;
free equipment;
repair of supplied equipment;
events in the store: tastings, concerts, etc.;
souvenirs and gifts;
uniform for store staff;
transfer money according to the agreement on time
competitions and incentives for personnel, both sales and managers;
Professionalism - the company's experience, knowledge about the product and the market as a whole - is a key feature of this point.
There are thousands of products on the market. It is almost impossible to tell the difference between products of the same type. The same goes for deliveries. Price list, package size, assortment - everything is impersonal and similar. Marketing budgets are also the same. In these conditions, only with the help of the professionalism of sales representatives will the supplier be able to form its own close and unique relationship with the client.
72 points is a general list. Which criteria a company chooses for itself depends on the specifics of the business, specific requirements and specific people. Even professionals have difficulty controlling 20 positions. A good level is considered to be 10-15 positions.
There is a technology for making step-by-step decisions about the level and quality of the supplier.
select from the general list 15-20 attributes that are significant for your own company;
add 2-4 of your own attributes if necessary.
assigning a degree of importance to attributes in terms of the significance of the company’s priorities and interests on a three- to five-point scale (for example, “simply important,” “very important,” “super important”).
evaluate each supplier;
rate the attributes;
multiply by the degree of importance;
add up all the results and compare ratings from different suppliers.
get the final result, add intuition and your own unformalized feelings.
Thus, it becomes clear which supplier is most valuable to the company, who is entitled to greater preferences and with whom it is necessary to maintain close relationships in order to develop the retail business better.
Merchandising Tools
2. location;
3. presentation.
1. The first group of rules relates to effective product inventory.
Assortment rule.
The trading stock rule is to create a level of stock sufficient for the continuous presence of the assortment at the trading enterprise.
Each RT enterprise determines indicators based on a minimum set of assortment items.
Assortment is the number of types of product units of one product category.
Factors influencing the formation of a product assortment in a store are the following:
profile and specialization of the store;
store activity area;
the state of his MTB;
At any point of sale, goods are divided into:
popular - high sales. They are in greatest demand. Form a circle of regular customers and also attract new consumers;
profitable - high profit. Contributes highly to profits. Allows you to make a good markup;
the most profitable ones are high sales + high profits. They ideally combine the best properties of popular and profitable products. Strategically important for attracting customers and making profits;
ballast - low sales + low profits. Low demand, low profits and high overhead costs
Demand is one of the most important factors in determining the optimal assortment of a retail outlet. It is divided into the following types:
special demand (for a specific product, does not allow replacement by any other, even homogeneous product);
alternative demand (finally formed in the process of selecting goods and becoming familiar with their offer);
impulsive demand (formed under the influence of motives and characteristics of the supply of goods at a retail outlet)
In most cases, when planning a purchase, the consumer clearly determines which product groups he wants to purchase (bread, milk, dishes, clothing, etc.). Therefore, the entire assortment of the store can be divided into three groups:
consumer goods (the purchase of these goods is the purpose of almost every buyer’s visit to a retail outlet. They are also called store-forming product groups)
goods of periodic demand (their purchase is planned once every several visits);
goods of impulsive demand (purchasing them is usually not planned).
Products are also divided depending on the duration of use:
non-durable goods;
durable goods
Groups of products that are related to each other due to similar functioning, or sales to the same groups of customers, or sales through the same groups of stores are called (product) lines.
Another significant factor for a retailer is product turnover, which has certain advantages:
increase in sales volumes;
increase in available funds;
reducing the risk of obsolescence and damage to goods;
improving the mood of store employees (“the product is going well”)
One way to increase turnover is to limit the number of product classes or product units within a class. There is a “washing out of the assortment”, a rejection of slow-selling items.
The trade inventory rule is closely related to the purchasing method used by the retailer.
Basic approaches to procurement:
fixed order quantity system;
a system with a variable order size, but with a fixed order time;
system with a fixed size and frequency of order;
system with changing order size and frequency.
The supply of goods to retail trade enterprises is based on the following principles:
consistency of supply;
rhythm of deliveries;
efficiency of supply, allowing quick response to changes in demand;
efficiency;
centralization of supply;
manufacturability.
In accordance with these principles, the merchant formulates criteria for evaluating his suppliers and selects the optimal cooperation option for himself.
Evaluation criteria:
reliability of supply.
quality of the goods supplied.
purchase price.
acceptable lead times for current orders and the possibility of placing emergency orders;
psychological climate in the supplier's organization;
organization of quality management (products and services) to the supplier.
Centralized automated purchasing management systems significantly facilitate the work of the store and suppliers, increase the ability to fully satisfy customer requests, flexibility to changes in the consumer environment and demand.
For a retailer, the absence (even temporary) of certain branded products while overall profits are consistently high can reduce the store loyalty of customers who are loyal to certain brands. Instead of making a profit and gaining new positions, the supplier begins a showdown with the store, a search for those responsible in the company itself, and promises that this will not happen again. Meanwhile, shelf space goes to more committed suppliers, and the best agents move to more stable competitors. Sometimes selfish behavior leads to the destruction of mutual trust - the persistence of resellers seeking to increase the size and cost of the order and their personal income without taking into account the existing needs of the store. Then the merchant looks for a more attentive and patient supplier.
The merchant himself should not prevent the supplier’s representatives from monitoring stock balances. It is still advisable to avoid cases where the product runs out. Some buyers are prejudiced against the “last copy from the display case”, considering its properties to be worse compared to other samples: the box is wrinkled, the packaging is broken, etc. These customers may develop a negative attitude towards the entire store.
Order calculation algorithm
The volume of previous delivery and product balances at the outlet are determined, based on these data, V sales for the past period are determined, which in turn increases by 1.5 times (multiply by 1.5), the remainder is subtracted from the resulting stock of goods in the warehouse , after which the order quantity is obtained.
The use of this technique is aimed at forming an optimal order taking into account the cyclic frequency of delivery (the standard cycle is a week), which ultimately avoids overstocking of the outlet. Due to the coefficient used in the calculation, it is possible to take into account the realistically predicted increase in sales volume (holidays) and the extended visit cycle (one, two, etc. weeks). For example, the following coefficients can be used:
*2 - for retail outlets that place orders on Friday with delivery on Monday and are open on weekends;
*2.5 - with a cycle of 2 weeks;
*3 - when placing an order on the eve of the holidays.
When forming the volume and structure of inventory at a retail outlet, the following factors must be taken into account:
average sales volume by types and types of packaging;
the size of the organized sales sheet, the presence of commercial equipment in it;
physical size of the retail outlet's warehouse space;
cyclical frequency of delivery of products to the retail outlet;
the need to have a reserve of products in the warehouse;
terms of payment for deliveries by the client.
If new assortment items have been ordered from a supplier, they should be put up for sale, if possible, immediately after delivery. The exception is, of course, goods reserved by mutual agreement, or goods that have already been paid for but not delivered to the buyer.
Violation of this rule (“if it’s on display, it’s on sale”) is accompanied by the inscription “no” next to the product sample. This is easier than removing it and re-arranging the products on the shelves (the argument is “they’ll deliver it tomorrow”). Irritation is caused by the lack of a product chosen in the case of an open decision. Consideration is made at the point of purchase, and the buyer wants exactly the product that he spent his time and effort choosing. It is possible to offer an acceptable alternative to an out-of-stock product, but the buyer's enthusiasm and satisfaction will be significantly reduced because the choice is imposed from the outside.
Rules for shelf life and rotation of goods on the shelf.
“First in, first out” (First in - First out)
Those. When conducting integrated marketing at a retail outlet, it is necessary to monitor the rotation of goods, i.e. in order to avoid “goods going out of date” (expiration of the deadline for the sale of goods). Despite the shelf life, it is preferable to sell products within the shelf life - the time the product retains maximum taste (For example, when the shelf life of drinks produced by the Coca-Cola company in plastic packaging (PET) is 6 months, the shelf life for them is 90 days ).
The main idea is for products to occupy key points in the store's sales space to maximize the opportunity to generate sales.
There is the concept of point of sale - a place in the sales area where the buyer can see the product and make a decision to select and purchase, that is, retail equipment (structures) designed for demonstrating and selecting goods (racks, shelving, counters, display cases , hangers, cabinets, displays (permanent or temporary), which are installed in the event of an advertising campaign (“special offer”), during the holidays, during periods of high demand, when a new product is launched on the market)), various types of refrigeration equipment - coolers (there are bar type, general store type - one-door, two-door for street trading).
It is known that all sales points on the sales floor can be divided into main and additional ones.
The main points of sale are places on the sales floor where the entire range of a given product group is presented (all manufacturers of a given product group).
Additional points of sale are places where the products presented at the main point of sale are placed separately.
There may be several reasons for additional product placement:
Volumetric presentation, that is, presentation of goods in large quantities.
Placing related products next to the main ones.
Location of products for which special promotions are held.
Additional sales points are an effective tool for increasing sales, as they allow you to increase the number of impulse purchases. They are organized for:
impulse goods
favorable location in the sales area.
Floor displays are traditionally located in aisles, at the heads of gondolas, along the customer flow, in “hot spots” of the sales floor, near related products. Sometimes voluminously presented goods are placed at the checkout counters, but this is quite rare, due to the large size of the displays, which can create inconvenience when paying for goods.
location in relation to main sales points.
It is very important that the product placed at the additional point of sale is also present at the main point of sale, otherwise it will be perceived as removing products from a certain group. The following effect is also observed: if the buyer does not find the product in his usual place, he may not even notice it at an additional point of sale. As a result, after reshuffling the store, the manufacturer faces an unexpected drop in sales.
Additional sales points must be located separately from the main ones and from each other.
Otherwise, this point of sale becomes a promotion of the main one and serves only as a storage place for additional units of product.
The best-selling items of the product group must be located at additional points of sale. In this case, the likelihood of impulse purchases increases significantly. There is always a temptation to place less selling items at additional points of sale in order to get rid of overstocking. Unfortunately, this will not allow many additional units to be sold, which in turn is an inefficient use of space in the retail area.
Determining the location of the section (complex) in the sales area.
Products in the store are grouped into sections (complexes). Determining the location of sections is, first of all, a well-thought-out sequence of their placement on the sales floor, taking into account the psychology of buyers, the location of auxiliary premises, and the nature of consumer demand.
To determine the locations of sections, you should analyze which of them are most preferable for certain assortment groups, which zones in the store are price-setting, and which bring the greatest profit. Thus, inexpensive goods “work” to create a favorable impression on the buyer about the store’s price level. If you place them at the beginning of the sales floor, the buyer is drawn into the shopping process and then takes goods “automatically”, paying less attention to prices. The principle of “alternate stripes” is known, in which low-priced goods that bring the store the greatest profit are alternated as customers move on the sales floor.
When arranging sections in large stores, it should be taken into account that customers begin walking around the sales floor from the right node of the facade and move along the hall counterclockwise. Additionally, shoppers typically move through the first third of a store faster than through the rest of the store. These features must be taken into account when determining the placement of products that need sales activation, as well as fashionable and new products. They should be located in areas best viewed by customers. On the right side of the consumer flow, you should place goods whose sales it is desirable to increase, and on the left, towards the exit, everyday goods. The wall of the trading floor to the right of the entrance is considered the most advantageous area in the hall. This is the start of the route for almost all customers who enter the store; It is the right wall that creates the first and most vivid impression of the store. The right wall is an ideal place to display goods that are purchased on impulse. Many experts believe that meat, meat products, fruits and vegetables look more attractive than other products and therefore create a more favorable first impression. Previously, only vegetables and fruits were laid out on the right wall, but later they began to lay out the other above-mentioned goods.
In second place in importance is the area adjacent to the rear (long) wall of the trading floor. If vegetables and fruits are laid out on the right wall, meat is placed on the back wall and vice versa. Experts believe that the meat department is used as an incentive to force customers to go through the entire shopping aisle and make additional purchases along the way, including impulsive ones.
The grocery and gastronomic department should be located in the center of the hall, where customer flows are not intense. The fact is that buyers first inspect and buy goods located at the right end wall, then go through the grocery and gastronomic department to the meat (vegetables and fruits) department, located at the back wall, and make purchases in this department. Having gone through the entire meat department, they return to the grocery and gastronomic department, but not to its center, but inspect only a few of its outer counters.
The third most profitable and important area of the sales floor of a large store is usually the left end wall. Here, buyers find themselves almost at the end of their journey through the trading floor, and here the approximate amount that the buyer expected to spend on purchases ends. Therefore, to achieve the best results, you need to carefully consider the placement of departments along the left wall. It is advisable to place goods of everyday or impulse demand here (milk and dairy products, baked goods, frozen semi-finished products).
The most difficult task for merchandisers is to attract customers to the corners of the sales floor. Buyers always try to straighten corners and avoid entering them unless they sell particularly attractive products. One solution to the problem of effectively using corner space is to place small departments there that the buyer immediately sees and recognizes; wine department, delicatessen department.
Departments of non-food products, which are necessary as ancillary items in departmental food stores, should be located together with the corresponding food products. Thus, coffee cups are sold next to coffee, glasses and jugs - next to fruit juice, children's toys and books - next to baby food products. This layout is called “cross”.
In a retail enterprise, great attention should be paid to the placement of goods of impulse demand. It is considered most correct to place them in the most “passable” places of the hall: at the entrance and exit, in the checkout area, on the so-called gondolas - special racks at the end of the sales floor.
Proper display of goods should replace the buyer's shopping list. Therefore, it is necessary to adapt the arrangement of assortment groups in accordance with the buyer’s logic.
Away from the general consumer flow, goods that require time for quiet selection are also placed in remote areas of the hall. Sometimes when choosing, an individual consultation is necessary, which can be lengthy. The first time buyer can come in just to look and collect information.
The complexity of moving goods from warehouses. It is also necessary to provide for inconvenience for both, which will immediately affect profits.
Visibility. The place of sale should be visible from the position of the main flow of customers; the most ideal would be visibility from any point on the sales floor. Both in the layout of the sales floor and in the placement of goods inside the store, several “temperature zones” can be distinguished:
a) hot zone - the place where the buyer’s eye always falls and where he most often goes when entering the store.
b) warm zone - a place that the buyer sees either too early or too late;
c) cold zone - a place that sees almost nothing.
The next step is the placement of products within the department. The buyer has his own idea of what products are combined with each other, where and in what sequence they should be placed. In this regard, there are 4 logical criteria:
Logic of taste (choice by tasting);
Logic of use (sequence in stages of use);
Logic of a trademark;
Logic of functional purpose (directed arrangement of cosmetics according to the skin receptivity factor).
Product display rules
Human gaze in general is directed more upward than downward. Information that is above eye level is perceived only from afar. The sweet spot is at eye level. This means that the average height for displaying products is 160-175 cm. Products should not be displayed at a height of more than 200 cm.
According to the customer's perceptual ability, the retailer is well positioned to lead the customer's gaze in the right direction. The shelf space is divided into 4 zones:
Reaching zone (height 180-200 cm);
Area of optimal visibility and access to products (height 160-180cm);
Access zone (height 60-180 cm);
Tilt zone (height up to 60 cm).
However, it is necessary to fill all zones with products. Products that are emphasized and products that are an item for impulse purchase are of high importance. These include goods - new items and expensive goods. Classic assortments and large-size products have low importance. This category contains goods of constant demand and inexpensive goods. The optimal quantity for perception and selection is 5-9 items of various products located in the buyer’s field of view. The review of goods is carried out in a horizontal direction, so the buyer gets a basic idea of the offered assortment. However, product search is carried out vertically, its goal is to obtain the necessary information among a group of products. In order to make it easier for the buyer to search, it is necessary to divide the products into blocks. Vertical blocks are better than horizontal ones, so there are some options for delimiters: small stoppers, displays on shelves or additional lighting, vertical dividers, signs above vertical blocks, shelf talkers.
Presentation rule.
If a group of goods from one manufacturer occupies a high share in the total sales volume and the display in a block does not contradict the general concept of presenting goods in the store, the products are grouped into a corporate block in each product group.
Block laying is a manufacturer's dream. It has been proven that displaying goods in blocks is associated with a change in sales volume, attracts attention using the principles of contrast and color spot, increases the time spent near the section, etc.
The most common example is that goods from the same supplier or sold under the same brand are arranged. Traditionally used in cosmetics and perfumery stores: products from Nivea, MaxFactor, Maybelline, etc. are grouped; Then there is a division into groups: Max Factor lipstick, Max Factor shadows, etc.
It is extremely clear to the buyer what properties the product grouped into a block has; therefore, such grouping should be used in stores and departments where differences in the properties of the product are very important to the buyer. For example, shampoos and bath products for newborns and children over 1 year old.
In the most primitive case - “everything on this shelf costs 10 rubles.” More often it occurs in this form: if in a self-service store one shelf is occupied by mayonnaise from different manufacturers, at one end of the shelf they are cheap, at the other they are expensive. This location is very attractive to low-income buyers who think, “why waste time looking at all this beauty when my main consideration is price?”
It is used mainly when presenting elite, rare goods or in large stores that focus on the breadth of assortment. In the grocery departments you can find a varied offer of products collected from all over the world. Grape juices from all countries and producers are displayed in one group, orange juice in another (if you want - Spanish, Brazilian). This is possible in coffee departments, where coffee beans are displayed in accordance with varieties and countries of origin, since subtle shades of taste are important to connoisseurs. Wines from “Italy, Spain, France, Germany” are sometimes exhibited in a similar way. Variations in the field of ready-to-wear: white clothes for winter sports and leisure - here, if you like the blue range - at the other end of the department. You can choose accessories using the same principle.
The chosen presentation concept plays an important role in creating the identity of the store. Therefore, the trader should consider developing his own concepts rather than following traditions simply because “everyone else is doing it that way.”
The “facing the buyer” rule.
The main information on the packaging should be easy to read and not obscured by other packaging and price tags. The price tag is standardized, and the packaging is a carrier of the individuality of the product and contains much more information. Professional designers and marketers worked on it and made it the bearer of a certain idea and image. Sometimes, in the absence of advertising support, packaging is generally the only source of information about the product. Under no circumstances should you cover the packaging (all or part) with a price tag or try to replace the information. If there is not enough space, you need to place as many packages as possible on your face; all the rest may be partially visible.
Rule for determining shelf space.
When determining the space allocated for different types of goods on the shelves, it is necessary to find the optimal combination of the overall profit of the outlet and the individuality of the store. When allocating retail space, they begin by allocating space to each product in accordance with the expected sales volume. The initial estimate is then modified and refined according to the following factors:
Profitability of various types of goods. In the eyes of the manufacturer, the weight of this factor is very large; it is not without reason that the phrase “We and our product will help you increase your profits” is often heard in the mouths of sales representatives. A common mistake is that most space is given to the best-selling product, and not to the product that has a large share of the store’s profit.
Dimensions of the packaging of the product itself. A common mistake is that if the product itself is small in size, then it needs little space. It is necessary to organize the space so that the small size of the packaging is well perceived.
Product presentation concept.
Necessary accents. It is known that you can highlight a product by changing the distance between it and other products. The distance between the highlighted goods and others should be greater than that of others between themselves.
The amount of supply of inventory taking into account seasonal fluctuations and peaks. Moments of increased demand for a product, its location should be changed, and perhaps the space allocated for it should be expanded.
Taking into account the direction of movement of customers. Direction of the buyer's gaze during inspection. Inspection procedure. Sometimes a large area allocated for a product can not only affect its sales, but also make the buyer think about purchasing other products related to it. The mass of the same tanning creams reminds the buyer of the urgent need to also buy sunglasses and a hat. Conversely, if we take into account the direction of the buyer's gaze, a large amount of space allocated to a certain group of products (or corporate block) in an unfortunate location does not promise obvious success and increased sales.
Priority seat rule.
Products that bring the greatest profit and have the best sales figures should be located in the best places on the sales floor and on sales equipment. Often sellers allocate the best places to products for which an extensive advertising campaign is carried out (pull strategy). There is a struggle among manufacturers for the best places on the shelves, but if the best places are presented only to strong brands, the seller can become heavily dependent on the manufacturer. And the store itself may lose its individuality. This means that its main advantage in the eyes of the buyer will most likely be its prices and operating hours. In order to implement its policy, the retailer must maintain a balance in the supply of different brands in its store.
Inside the corporate block, it is recommended to place the new offer in the spotlight, next to the most popular products. To make room for new items in the block, you can move your worst-selling products. It is very important that the new product is located next to products of its class. It is important to note here that if a simple product ends up in “high society” for him, that is always a plus, and the proximity of a noble new product to the common people will not do it any honor. Products for which special promotions are currently being organized can also be moved to the best places: tastings, distribution of samples, consultations, lotteries. In this case, it should be easy for the buyer to find them. There are different approaches to determining the place that a leading product should occupy within the corporate block itself. According to the "Fortress Wall" concept (for products with packaging that is rectangular or close to it), placing the strongest positions at both ends of the block (or at one) can draw attention to the less popular varieties in the center. However, if we take into account the principle of gaze direction and the possibility of visual coverage, it may turn out that not only your own products, but also the products of competitors will be in focus. After all, the leader pulls out both neighbors.
The main question is whose product the buyer will choose. Placing two strong competitors' offerings next to each other may not only fail to attract attention to other types of products from this manufacturer, but also increase the likelihood of tipping the scales in favor of another brand.
The opposite of “fortress walls” is the concept of “hard nut” (“steel core”), where strong brands are placed in the center of the block. All the positive influence of a strong brand remains in this case within the corporate block. There is also hope that weak brands will have an impact on competitors.
Difficulties in displaying the “Fortress Walls” product between two competitors.
A fight on two fronts.
Dispersion of leaders' forces, violation of the principles of traditional perception, concentration, forced duplication as a means of survival.
If all 3 competitors adhere to the principle of a fortress wall, then those fighting on one front are in a better position, i.e. at the beginning and end of the row.
Gradually strengthening your position in the center (the emergence of new strong positions or simply increasing the face of existing ones) will stabilize the situation, and then expand your place in the field and increase sales at the expense of competitors.
Effective Presentation
The store should help customers choose a product. The key figure is 70%, buyers choose the product in the store. They try it, look at the trademark, study the packaging, talk with sellers, read leaflets on the shelves, posters on our walls, shop windows, etc. At the same time, as min. 40% of buyers make their final choice of product in a store thanks to in-store information - a dramatic thing for many manufacturers. Large advertising budgets are only the second half of choosing a TM. The first is what the buyer sees and reads in the store. The number of people making the final choice of goods in the store is growing. The main trend is known from the markets of the USA and Europe - and in the near future, 40% of buyers making a choice of goods in a store will turn into 50%, and then into 60% and 70% of buyers.
There is a paradox. The more advertising airtime grows, the more people begin to make decisions inside the store. The relationship is not entirely direct; there are other additional factors. But in the end, when advertising budgets increase tenfold, the number of people making a choice in the store will increase by 1.5 times from 40% to 70%.
A retailer needs to systematize and professionalize work with in-store design and communications. This will help:
Increase the time the buyer spends in the store and, thereby, increase the amount of the check.
Increase customer awareness of the products in the store and thereby increase the size of his basket.
It helps solve the following problems:
Delivery of messages that stimulate demand;
Formation of customer needs;
Acceleration of trade turnover;
Achieving a balance between supply and demand
Creation and dissemination of the image and individuality of the store;
Affects seasonal sales fluctuations;
Formation of a culture of consumption and development of people's aesthetic tastes.
Product presentation is carried out using placement:
The principle of optimality. The store is not an exhibition of graphic design works. The purpose of advertising is to encourage purchase; one of its main functions is to inform buyers. It is appropriate here to use the concept of “information environment” and consider advertising with? information about products presented in semantic form. The information environment is all the data available to the buyer at the time of purchasing the product. The main characteristics of the environment that influence the behavior of customers in the store:
Availability of information;
Its quantity;
Forms of organization and presentation.
The information load when making a choice by the buyer is characterized by the number of alternatives and the number of indicators of each alternative. (Product - vodka, wine, cognac, liqueur, other types of drinks. Alternatives - TMs presented in the store; Indicators by which products are evaluated - packaging design, price, quality guarantee and protection against counterfeiting, image of the manufacturer and TM, price ratio -quality, etc.).
The amount of information required by the buyer is influenced by the following factors:
The nature and frequency of use of the purchased product is its nature (it is unlikely that you will be very sad when choosing the wrong soap, but this cannot be said about shoes).
Individual characteristics of the buyer (some take a long time to prepare for making a purchase, while others resolve issues quickly);
Market characteristics;
Characteristics of the situation in which the purchase is made (limited time, funds).
If the time period is limited, the more difficult the decision to make, the more indicators by which the buyer evaluates. Information overload may simply set in, and the person will postpone the decision until a more favorable moment. Therefore, in a store it always makes sense to visually present the main advantages of products so that a person makes a decision right on the sales floor.
Taking into account the above, let us formulate the second principle of placing advertising materials and information.
A buyer looking at a product is more likely to purchase if he receives the information he needs about the product.
Information in stores should be presented in such a way that it is easy for customers with different individual characteristics to obtain it.
The buyer loves to buy, but does not like to be sold to. This is the ABC of sales. All known guides recommend allowing the client to buy in the style that suits him best. Therefore, methods of neurolinguistic programming, almost imperceptible penetration into a person’s subconscious, and on this basis, effective interaction with him, have become widespread in sales and advertising. Based on people's belief systems, they can be divided into 3 main types:
“Visualists” are people who think primarily in visual images. “It’s better to see once than to hear 100 times,” and you need to see for yourself.
“Audiolists” think primarily in words and imagine the world with the help of auditory images.
Kinesthetic learners perceive the world around them through the senses of taste and smell.
The most common type is a combined type with a predominance of one component. An experienced sales agent knows how to recognize the types, to which clients to colorfully describe the properties and advantages of the product, and to whom - to simply put a catalog and a printed commercial offer on the table. If the buyer prefers to deal with “dumb” sellers, he must be allowed to enjoy communicating with them. The seller supplements, but does not replace, the information in the store. But, in-store advertising and information can partially eliminate the shortcomings associated with the lack of sales personnel.
In store advertising, you need to use the most easy-to-understand influence opportunities that will force you to make a purchase right now. Thus, different types of people are influenced differently by the form in which information is presented. It can be represented:
In digital form (10 l, cost 250 rubles, 33% free, 2 l. Price 1.5, etc.)
In a semantic form (excellent dishwashing detergent, reliable moth repellent).
Accordingly, promotional materials must take into account both of these possibilities. The use of basic thinking strategies has been found to be effective in helping to make choices and maintain buyer confidence. Otherwise they are called metaprograms. In accordance with them, people select some information for themselves and ignore others.
One of the meta-programs is the desire “Towards something” and “From something”. Motivation for customer success is widely used in the field of cosmetics and food. For people following this behavior program, the acquired benefits are more important. Avoiding failure forces another group of buyers to evaluate what major problems they can avoid with the purchase of a product (dandruff, wrinkles, extra calories, etc.).
The second meta-program represents people's orientation towards "Opportunities" and "Actions".
A reminder of the possibilities directly in the store may not leave indifferent people who like to constantly improve their lives with the help of new achievements, experiment and try new products. People who prefer action will be more influenced by clear and simple instructions for using the product. In addition to the result, they are interested in ease and safety of use. Such people prefer care products that are consumed regularly, are usually more committed to TM and tend to be consistent. If the order of use of the products is indicated, people in this group may decide to purchase other products from the line in the store along with the one they have already chosen. It is important for such buyers to know with what snacks they drink certain alcoholic drinks, and at what time of day to drink different types of coffee and tea. If their need for information is satisfied, they can purchase the entire set of products. However, regardless of customer behavior patterns, basic information about the product should always be present and it is very important to analyze whether the packaging itself carries it (domestic cosmetics manufacturers often confuse customers by not explaining what to do with the product. Imported products are also not always have an accurate translation and detailed information in Russian). Therefore, if the supplier did not take care, then the trader must understand that if there is not enough information on the packaging, it is absolutely necessary to place it separately - on a leaflet or poster.
In a store, the consumer makes a large number of decisions in a short period of time and often experiences both information overload and lack of information needed. In this regard, in the development of in-store advertising, as in many other areas, the KISS principle is increasingly being used.
The KISS principle (Keep it Short and Simple - stick to brevity and simplicity).
We must remember that the product is sold to those around us. The KISS principle involves understanding the information that needs to be conveyed to customers, knowing the characteristics of their main group. This is easier than replacing advertising only if a connection is found between it and a drop in sales. According to this principle, instead of “Drontal - effective protection against helminths,” it is better to write with a felt-tip pen next to the product “Remedy for worms.”
In-store advertising is a cheap means compared to other advertising means; it requires small one-time costs. The price advantage and variety of species encourage the manufacturer to produce it in large quantities, constantly expanding the variety of species.
In the entrance area (on the door, in the vestibule, directly at the entrance), advertising materials (RM) are placed to remind people of what is on sale and to interest the buyer in entering the store. Large posters and stickers from manufacturers are good for this purpose.
In a shopping area, the main purpose of the RM is to help stimulate purchase or choice and placement, depending on the task that the advertising medium solves.
What not to do:
Place RM where there are no products;
Use old and damaged materials;
Overload the RM outlet;
Place it in such a way that the PM interferes with the seller/buyer.
In addition to advertising printing media, you can use stands (displays), such as shelves, display stands, mechanical dispensers, animation displays, wall cabinets and other structures. Display on stands is sometimes called advertising display and solves 3 problems:
Informs customers about the products of this manufacturer available for sale;
Introduces them to their quality, methods of use and features of the goods;
Reminds you of related products. In this case, the advertising display can have the function of information, consultation or reminder.
New products are advertised directly at points of sale or in specially designated areas of the technical specifications (in display cases and on structures located at the boundaries of departments, along walls, near columns, in niches). Posters, large-format price tags and information regarding the main properties and differences of the product, application features, and leaflets advertising the same products are placed nearby. Typically, the merchant provides these capabilities to the supplier for a fee.
Rules for placing price tags.
The price of the product must be clearly marked and clearly visible to the buyer; the price tag should not cover the packaging of the product.
Price tags should be positioned so that it is extremely clear to the buyer which price tag applies to which product.
The location of price tags should take into account the buyer’s point of view (inscriptions and price tags should be in the line of sight of the average buyer).
The choice of price tag format is determined individually, but groups of homogeneous goods must have a single price tag format.
You should be very careful when placing price tags in a list (in one place, not next to each product), especially if it is externally difficult to recognize which product the price and name refer to.
If the price tag partially covers the packaging, the buyer can:
In general, do not buy this type of product if the need for it is not very great;
Make a mistake in choosing a product and experience unpleasant feelings when paying for the purchased product;
Partially lose confidence in the store.
If the store independently develops the design of price tags, you should pay attention to the font size.
Price tags must also be present at the additional point of sale. With a voluminous arrangement, the price tag can be voluminous - have 4 sides so that it can be read from any point of approach to the product. Price tags can also be duplicated when the product is located at a corner.
Rules common to the second and third groups.
Rule of comfort of perception.
When arranging and displaying goods, placing advertising and information, it is important to eliminate the possibility of the buyer experiencing discomfort (this is an unconscious feeling of irritation, rejection, and other negative emotions). The simplest and most obvious decision of the buyer in this case is not to take this product, to leave this department or store.
Discomfort when perceiving a product in a store occurs in the following cases:
Inaccessibility or inaccessibility of information (on price tags, packaging, advertising materials, signs)
Placement of inscriptions at the wrong viewing angle.
Inability to find and select (the product is not visible, not available, the rule is violated and faces the buyer, there are no department signs, price tags are placed incorrectly).
Bad color combinations
Unsuccessful combinations of shapes and volumes (poor distribution of space, display of goods on shelves)
Unsuccessful music and sound design, annoying noise in refrigeration equipment;
Poor lighting (indoors or built-in in commercial equipment).
When determining a buyer's reaction to a product or studying attitudes towards a store, the true causes of discomfort are determined using psychological techniques.
The rule of cleanliness and neatness
Damaged packaging is rarely seen in stores. Mobile phones, on the other hand, often break and tear, and stickers fall off the shelf. In this case, damaged advertising materials must be urgently replaced or removed.
M-gu activities require time and expense. BUT the losses of the store (and suppliers) in case of violation of the basic rules are many times higher than the costs of complying with the rules and monitoring their implementation.
