Retail & Manufacturer Merchandising Strategies
Retail Merchandising Strategies
Reasons for Implementing Merchandising
- Organized Assortment: Optimize product arrangement for easy navigation.
- Defined Sections and Circulation: Create clear pathways and product groupings.
- Effective Product Presentation: Enhance visual appeal to attract customers.
- Purchase Negotiation: Leverage merchandising for better deals.
- Service Integration: Incorporate services to enhance the shopping experience.
- Growth Potential: Expand market reach through strategic placement.
- Performance Improvement: Maximize profitability and resource utilization.
- Staff Training: Equip employees with merchandising best practices.
- Tools and Checklists: Implement guidelines for consistent section organization.
- Promotional Activities: Drive sales through engaging displays and promotions.
Trade Marketing Focus
Retail-oriented trade marketing emphasizes commercial intermediaries.
Manufacturer Merchandising Strategies
Reasons for Manufacturers to Use Merchandising
Maintain a clear direction and facilitate retailer-consumer dialogue.
10 Key Reasons
- Knowledge (Know-How): Comprehensive understanding of successful business practices.
- Consumer Behavior Understanding: Analyze customer preferences and motivations.
- Preconization: Anticipate product assortment needs.
- Performance and Profitability: Focus on revenue generation and financial success.
- Product Presence Monitoring: Track in-store product visibility and availability.
- Pricing Strategies: Establish appropriate pricing to reflect brand value.
- Growth Potential: Identify opportunities for market expansion.
- Structured Approach: Implement organized merchandising plans.
- Negotiation Training: Develop effective communication skills for market interactions.
- Profitability Argumentation: Demonstrate product value and return on investment.
Barrier Concept
Address obstacles that hinder purchasing decisions, such as physical barriers or customer perceptions. Analyze sales areas and identify potential barriers like highways or railroads.
Competition Analysis
Recognize that overlapping market presence indicates competition.
The 5 “P”s of Merchandising
- Penetration: Market reach and customer awareness within a specific area.
- Positioning: Desired brand image and customer perception.
- Perception: Public opinion and reputation of the brand.
- Potential: Business growth opportunities and expansion possibilities.
- Key Points: Strengths and weaknesses of the company in relation to the customer area.
Vocation and Brand Identity
Demonstrate brand positioning through pricing, quality, and variety of offerings.
Key Elements of Vocation
- Differentiation: Unique brand characteristics that set it apart from competitors.
- Loyalty: Building customer loyalty through consistent brand experience.
Policies to Define Vocation
- Selection/Quality Policies: Establish product quality standards and target market segment.
- Pricing Policies: Align pricing with brand image and perceived value.
- Service Policies: Enhance customer experience through personalized service and added benefits.
- Atmosphere Policies: Create a conducive sales environment that reflects brand identity.
Retail Formats and Pricing Strategies
- Discount Stores: Low prices and lower quality.
- Hypermarkets: Balanced quality and competitive prices.
- Category Killers: Specialized retailers with strong brand image and competitive prices.
- Mini Supermarkets: Higher prices and potentially lower quality due to convenience.
- Department Stores: High prices and high-quality image.
- Specialty Stores: High prices justified by specialized expertise and high quality.
Market Characteristics
- Segmentation: Dividing the market into distinct groups.
- Segmentation Evolution: Adapting to changing market dynamics.
- Consumer Needs: Understanding customer preferences and demands.
- Market Share: Percentage of the market held by a specific brand.
- Brands: Establishing brand identity and recognition.
- Stock: Inventory management and product availability.
- White Marks/Private Label: Alternative branding strategies.
- Marketing Mix: Combination of marketing elements to achieve objectives.
Consumer Motivation
- Economic/Savings: Value-seeking customers attracted to lower prices.
- Security: Brand trust and reliability.
- Loss Leader Products: Discounted branded products used to attract customers.
- Self-Image: Association with high-end or luxury products.
Technical Approach
- Product Characteristics: Features and benefits of the product.
- Product Life Cycle: Stages of a product’s lifespan in the market.