Today, simply offering your products is no longer enough. And your sales pitches aren’t convincing enough. So you need to attract customers through other means… Merchandising helps you do this.
What exactly is merchandising?
To optimize your shelf performance , it is necessary to ensure good visibility of your products: merchandising is the essential management tool for promoting a product in order to increase sales. It will allow you to achieve the return on investment of your promotional campaigns – in line with your planograms. In short, effective merchandising must make people want to buy your product.
What is the purpose of merchandising?
Here are the main objectives that merchandising meets:
- Stand out from the competition, thanks to a different and adapted layout of your products;
- Increase the attractiveness of your department by dramatizing products (POS, decor, universe, shopping atmosphere, colors, lighting, etc.);
- Increase your sales and the profitability of your products by showcasing them
- Update your planograms .
Merchandising tools
With the evolution of purchasing behaviors, merchandising is no longer limited to the 5Bs (the right product, in the right place, at the right time, at the right price, in the right quantity): the consumer is looking for an in-store experience , a purchasing atmosphere. This triggering of the act of purchase will be done through different means:
- Furniture : the choice of furniture for the layout of the point of sale or department allows the creation of a friendly and attractive shopping environment for the consumer and will influence their act of purchase;
- POS (Point of Sale Advertising): essential for showcasing your products, it will create an environment conducive to triggering a purchase.
- Signage : it helps guide consumers but also optimizes the image of your brand or sign.
The least obvious thing about all this? Merchandising must constantly adapt to events and the needs of your customers—this is the first thing we teach our CD Pub merchandisers. They are autonomous and take over from your sales teams on a daily basis, but above all, they constantly review their work to ensure that your shelves comply with your merchandising plans and negotiated terms (you can take a look here to learn more).
Case study: grocery department merchandising
Nothing like a bit of practical experience to illustrate our point about merchandising! We recently launched a promotional campaign in southern Luxembourg for a major player in the grocery sector.
Goals
- 💡 Deployment to around ten Luxembourg stores
- 💡 Timing: 1 week
- 💡 Assembly and filling: 7 pallets / 6 xox / 2 blisters / 1 display / 1 central island
- 💡 Respect planograms, direction of traffic, POS…
Means
- 💪 Selection and briefing of the merchandiser team
- 💪 Support and advice
- 💪 Photo report for proper monitoring of the operation (various comments, areas for improvement, timing, etc.)
Results
- ⭐ 100% of points of sale covered
- ⭐ 100% of displays installed
- ⭐ Dramatization with boxes, TG and islands
- ⭐ Operation validated by the store and the brand