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Sales Force

Point of Sale Display of Products - Merchandising (E)

 

Point of Sale Display

 

What is the Point of Sale Display? What are the main elements of Merchandising? How to apply the Point of Sale Display and Merchandising in your business?

 

Posted: Nov 2008


Every business has it's main objective – the Profit. Roughly speaking, the profit is the difference between all input costs of some product and sales price. The profit itself is the result of sales turnover.

With every sales transaction there is some profit generated. Therefore, more sales means more profit. Now it is obvious that if we want to increase our profit, we need to increase our sales volume.

The sales volume in same time period, in the same sale outlet can be different. The demand for the product does not have some fixed demand. The sales result can always be higher or lower. The sales depends of many factors. The product benefits, brand, image, price, service, exclusivity, etc are some of the elements that influence the product.

But for the same product, with the same characteristics, during the same period in the same retail outlet, the sales volume can vary. The moment that influences the sales in the outlet is called Merchandising or Point of Sale Display of Products. Merchandising is the decisive moment in proper point of sale display of product.

The merchandising is the process of effective positioning and arranging of product in the sale outlet that have the main objective – maximizing the sales in the given moment. The Merchandising is the process of point of sale display of product, that increases the chances of product to be bought. The Merchandising gives competitive advantage of one product over another. The Merchandising is increasing the sales level above the sales that occurs without merchandising.

There are several approaches to merchandising. Approach is different for every industry. Food merchandising is different that TV sets merchandising. Fashion clothing point of sale display is different than newspapers and magazines point of sale display. Still, some elements can be applied in different branches.

The general approach to Merchandising can be defined as system that is covered by elements of CLIPBOARD concept. CLIPBOARD stands for the following elements of Merchandising:

  • Corporate Block Layout – Grouping products from one franchise owner at a specific place is called corporate block positioning. This positioning gives advantage of visual impact, brands synergy and increases perception of brands value. 

  • Location – Right location ideally means multiple sales points, early in the traffic flow, before competition, ate the eye level and easily reachable.

  • Inventory Management - Too much stock in the outlet means frozen capital and danger of expired dates. Too low stock might lead to Stock Out and loss of sales, profit and customer's loyalty. Proper inventory management can be done with right use of history sales data, proper forecasting and negotiating with customer.

  • Pricing – Most of the people will first observe the price before considering shopping. This is especially typical in future consumption outlets. Most of the people are price sensitive. Exposing the price with clear price tag is giving the right information to the shopper and making him to make the right decision. If the price is not displayed or is incorrect, the customer may feel that something wrong with product, or that the price is too high. This can discourage customer from shopping.

    The merchandising is the process of effective positioning and arranging of product in the sale outlet that have the main objective – maximizing the sales in the given moment. The Merchandising is the process of point of sale display of product, that increases the chances of product to be bought. The Merchandising gives competitive advantage of one product over another.


  • Brand Order – Every supplier has more than one brand in different packs. These brands have different market strength. During the merchandising, brand order should be respected. This means that the strongest brand should be positioned in a first place, in a main traffic flow. This gives the effect of umbrella, since the stronger brand is supporting other brands.

  • Out-warding Facing of Labels – This is the small, but important detail in point of sale display. Labels facing the shopper gives a clear communication, increases brand image and calls for action – shopping.

  • Advertising materials – are supporting products, gives info about price, promotion, function and benefits. They should be used whenever possible.

  • Rotation of Stock – Since most of the FMCG products have limited shelf life, expiry is not the solution. First Expires First Out ( FEFO ) rule enables fresh product for consumer and no write off for retailer.

  • Dust/Housekeeping – Who likes dusty and dirty product? Do You?

CLIPBOARD should be you guide in successful Merchandising and point of sale display. Every merchandising element of CLIPBOARD is important. Concept can be used in every situation, regardless of the industry where some product portfolio belongs. Proper Merchandising and Point of Sale Display will give your product what is needed – the competitive edge.
  

Related Reading:

Product positioning and Merchandiding in Sale Outlet  
FMCG Sales Boosting 
 

 

 

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