MERCHANDISING CONCEPT
Create an impactful merchandising strategy and boost your sales!
Merchandising isn't new. A concept used since the 19th century with the development of the first department stores, and then widely adopted with the rise of self-service stores, merchandising is an integral part of our lives as consumers, for anyone who pays even a little attention to product placement on shelves. An essential element in sales strategies, merchandising continues to evolve, expanding into e-commerce. So let's review its objectives, the existing solutions, and answer the key questions for establishing an effective merchandising strategy...
Qu’est-ce que le merchandising ?
A brief theoretical reminder. According to the French Retail Institute: "Merchandising encompasses a set of methods and techniques for the placement and presentation of products in stores, with the aim of increasing sales and/or profitability."
If we add to this definition the 6 Bs, formulated by the renowned Charles H. Kepner: **the right product, at the right time, at the right price, in the right place, with the right quantity, for the right customer,
then we have the foundation for a structured merchandising approach.
However, this definition and this rule remain entry points for anyone wishing to implement an effective merchandising strategy. Because beyond the strategic arrangement of products and the optimization of sales space, other concepts are essential to structuring a complete merchandising approach, such as :
- Analysis of the behavior of targeted consumers,
- Mastery of the business environment (managing seasonality, anticipating market trends, countering the competition, etc.),
- Clear and identifiable brand/product positioning for the target audience,
- A precise communication strategy,
- Continuous adjustment of the product/service offering,
- ...
In short, a well-thought-out merchandising strategy will both increase the profitability of the point of sale and improve the customer experience and brand relationship.
The Essential Questions?
Beyond reviewing the different types of merchandising—namely, management merchandising (MG), seduction merchandising (MS), or organization merchandising (MO)—let's focus on the essential questions that can help you structure your approach.
I am a distributor: I manage a point of sale, a department, a product category...:*italic text
Management Merchandising:*
- Who is my target customer?
- How are my products presented?
- What is the seasonality of my products?
- Are the products properly labeled and marked?
- How do I evaluate the effectiveness of my merchandising strategy?
- Are my employees trained in merchandising techniques?
- What is my strategy for managing product turnover? 8. Do I value customer feedback on the in-store experience?
- How do my prices compare to those of my competitors?
- Have I considered the return on investment of certain store layouts?
Seduction Merchandising: - How can I use lighting to my advantage?
- What is the customer flow like in my sales area?
- How can I incorporate attractive visual elements?
- Am I consistent with my brand image?
- How can I use temporary promotions to create a sense of urgency?
- Do I offer opportunities for customers to interact with the products?
- How can I create an atmosphere that encourages impulse purchases?
- Are seasonal products prominently displayed?
- Is my signage consistent and easy to read?
- Have I considered using interactive screens or mobile apps to enhance engagement?
Organizational Merchandising: - What are the hot and cold zones in my store?
- Have I planned placements that encourage customers to buy complementary items?
- Can customers easily find what they are looking for?
- What is the size and layout of my shelves?
- Are my promotional displays up-to-date?
- How do my competitors position themselves in terms of merchandising?
- Are my products placed in a way that encourages cross-selling?
- Do I incorporate my customers' cultural and local preferences into my product choices?
- What market trends in my industry should influence my merchandising?
- Do I have an overview of my customers' shopping journey and the effectiveness of the store layout?
I am a supplier: I create products/services and market them through one or more distribution channels...:
Merchandising Management:
- Who is my target customer base for my products?
- How do my products fit into the store's existing product range?
- What is the seasonality of my products, and how does this affect sales?
- What key performance indicators (KPIs) will I track to evaluate my product sales?
- What is my pricing strategy compared to competitors at this store?
- Have I designed effective sales materials to help the store present my products?
- How will I handle returns of unsold or defective products?
- What is the ideal order volume for my products at this store?
- How can I assess whether my products have been well received by the store's customers? 10. Have I planned any training for the store staff on my products?
Seduction Merchandising: - How can my products be highlighted to capture customers' attention?
- What visual elements can I provide to enhance my product presentation?
- How can I influence the point of sale's promotion of my products (e.g., promotions, displays)?
- Are there any special offers or promotions I can offer to encourage purchases?
- What are the distinctive features of my products that I can use to entice customers?
- Are my products easily identifiable by customers (packaging, branding)?
- How can I incorporate customer testimonials or reviews to promote my products?
- Are my products designed to encourage impulse purchases?
- How can I create a compelling story around my products to engage customers? 10. What current trends should I incorporate into my offers to attract consumers?
Organizational Merchandising: - How are my products displayed in the store?
- What is the optimal display space size for my products?
- Are the stores well-equipped to store and display my products?
- How will I communicate information about my products to the store?
- What are the strategic areas in the store for placing my products?
- Does the signage in the store showcase my products appropriately?
- How will I collaborate with the store to adjust my product displays?
- What criteria will be used to evaluate the effectiveness of my product presentation?
- Does my packaging facilitate storage and display in the store?
- How can my products be integrated into themed merchandising concepts?
In Conclusion
In conclusion, establishing an effective merchandising strategy is essential to maximizing your sales and strengthening your market presence. By combining the fundamental principles of merchandising with in-depth analysis of consumer behavior and an understanding of market trends, you can create a captivating shopping experience that attracts and retains your customers. Whether you are a distributor or a supplier, the key questions addressed in this article will provide you with the necessary tools to tailor your strategy to the needs of your target audience. By integrating a structured approach focused on optimized layout, engaging promotions, and clear communication, you will have everything you need to transform your point of sale and products into true growth drivers. Investing in merchandising is not just about increasing sales; it also fosters a lasting relationship between your brand and your customers, thus ensuring long-term success.
Looking for advice on developing and implementing your merchandising strategy? Agence I.S (located in the Île-de-France region, near Paris and Lille), through its IS Brand & IS Studio divisions, specializes in the creation, production, and management of this type of project. Whether your project is local, national, or international in scope, if you have an idea or a project in mind, we can answer your questions and support you in its optimal realization.
