On-shelf profitability

A majority of customers decide to buy the product once confronted with the offer. In supermarkets and hypermarkets, for example, merchandising influences consumer satisfaction.
Unattractive or sloppy shelves are repulsive for the customer, who will be attracted by diversified shelves that are animated by the regular appearance of new products.

In view of the “decision in front of the offer” factor, merchandising will have to play on emotional tactics and encourage impulsiveness while taking into account the category of the product that more or less lends itself to these approaches.

The customer’s readiness to make impulse purchases is also influenced by the diversity of choice offered by the assortment.
In-store, this perception is largely influenced by merchandising.
Thus, the presentation of products can alter or reinforce the customers’ perception of the actual choice available to them.

Consumers generally seek to limit their travel and optimize their searches.
A distinction is thus made between a so-called hot zone, in which they will naturally circulate, and a cold zone that is less frequented, in any type of store.
The retailer will seek to generate traffic in the cold zones and by proposing, along the way, offers likely to be the subject of impulse purchases (e.g.: promotional islands in the entrance of a supermarket).

Merchandising allows to give a strategic dimension to the highlights. The success of an operation depends on :L’arrivée rapide des produits en magasin
Multiple implantation (gondola heads, promotional areas…)
Easy location (markings via stop-rays, rulers, kakemonos, ground stickers…)
A significant number of facings…

The positioning of attractive products is the object of several strategies.
These are placed at the beginning, middle or end of the shelf to encourage people to enter or leave the shelf.

The adaptation of the shelf organization, according to the customer’s choice process, allows to play on its performance and the optimization of the stock.
Attendance, customer journeys, stock levels, turnover and its distribution over time are all elements that must be taken into account to develop a brand’s performance.
The product range is the result of negotiations between manufacturers and knowledge of products and markets based on qualitative and quantitative studies carried out by the brands and chains.
While the brands can potentially offer an identical product range or have the same products manufactured under private labels, work on the product offer and the referencing strategy are key elements of differentiation and attractiveness for the customer.

Supply management ensures the permanence of a minimum stock, taking into account the constraints of presentation, disposal, delivery, costs… by avoiding shortages and overstocking.

Manufacturers are now working on merchandising concepts that can be adapted for each type of sign, but also for Drive and Proximity.
This requires a specific organisation of the department but also, and above all, an adaptation of the offer.
The growth in merchandising has also given rise to new specializations, such as geomerchandising * or visual merchandising **, and to the development of specific software. In the context of e-Commerce, the equivalent of traditional merchandising is e-Merchandising.

Ebook

Download our new whitepaper

4500$ billion dollars in 2021…
e-Commerce doesn’t wait

Download it