In an increasingly competitive retail environment, effective merchandising is crucial for differentiating brands, protecting market share, and driving sales. Outsourcing merchandising to a specialized company allows brands to ensure consistency across numerous retail points while freeing internal resources to focus on sales and marketing. A case study describes how outsourcing merchandising for Wrigley helped reduce costs, increase quality, and meet agreed-upon standards across various retail chains.
Maximizing Brand Exposure Through Effective Merchandising
1.
2. In an increasingly intensifying marketplace, you have to differentiate
yourselves from your competitors. Here at MPC, we understand a
company's most valuable asset is their brand.
The bigger a company grows, the harder it becomes to ensure
consistency at every point of the consumer journey.
Effective merchandising will enhance a brand's exposure and increase
sales. It is also extremely important for protecting and growing market
share.
Recent research shows that 20% of the decision to purchase is logical and
based on facts and 80% is emotional. This illustrates the importance of
an attractive and well executed merchandising program.
A successful advertising campaign can prompt consumers to actively visit
retailers, but once there, if they can't find the product they are looking
for, or a competitor has a display with more impact, the time and money
spent on advertising and developing the brand is wasted.
Retailers are also feeling the pressure. Many require merchandising
support plans as part of their review process and to support ranging.
Showing you have a strong merchandising team produces gains in sales,
but also in space, position and displays offered by the Trade.
3. The retail world is a fast paced and ever-changing environment.
When a product hits the retail stage, this is the time when it can
become difficult to control consistency through all the various
points of presence. This can be due to a number of reasons
•the sheer number of retailers,
•product slow to shelf
•franchisees with their own ideas
•the POS and product being poorly displayed .
Something as simple as cleanliness can have a huge bearing on a
shopper's experience with your brand and thereby effect sales.
Without a team of dedicated specialists, merchandising
compliance can be as low as 52%. This means that 48% of
retailers may not be reaching their sales potential.
Outsourcing a team of merchandisers means you can avoid
situations such as this, and your sales and marketing teams can
focus 100% on driving sales.
4. Why work with us ?
Because we use the store as a compelling and an ideal marketing canvas for
your brands – With 70 percent of purchase decisions being made in-store1and
2
68 percent of in-store purchases being impulse, we have a tremendous
opportunity to reach consumers in-store, and stimulate brand building,
purchase and consumption.
1
Consumer Buying Habits Study, Point-of-Purchase Advertising International and Meyers Research Center, 1995
2
Point-of-Purchase Advertising International
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Our services
Merchandising
Sales in store
promotion research
In-store
communication
Warehouse
POSM & POP maintenance
strategy &
implementation
ani de
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Our partners
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Coverage
Our coverage :
Regional branch
Area Coordinators
8 Regional Managers
25 Area Coordinators
30 Supervisors
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Optimal tools for monitoring and controlling
MPC on line reporting system benefits:
• Delivering instant access to the gathered information's for the modern trade sales team there for
enabling them to react more quickly if the reported situation re quires it.
• Highly complex reports and analysis that give us an overview of the in-store situation.
• Easy access form any internet connected computer.
• Advanced security for accessing and storing of gathered data.
• The gathered data can be exported in excel format for further an alysis and easy distribution.
• No additional hardware or software is required for team to work with the reporting system.
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Optimal tools for monitoring and controlling
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National Retail chains covered
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Case study : Outsourcing for Wrigley
Laro Company, one of Wrigley products distributors in Romania, wanted to outsource the merchandising
to a specialized company;
Outsourcing program aims to significantly reduce costs and incre ase quality of implementation, respecting
the merchandising standards agreed with Wrigley and planning fo r changing and updating the planograms
accordingly with new products;
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Case study : Outsourcing for Wrigley
Developing a clear performance
The quality achievement criteria to be assessed are:
in-store check system
the filling degree of the cash register stands;
degree of shelf's filling;
accurate price displaying;
checking the products taking into account the
The payment amount in the merchandising services
rendered will be given taking in account:
FEFO rule (first expiring, first out);
implementation of promotions;
The number of hours x hourly rate agreed monthly implementation of shelf’s and cash register
supplied stands planograms;
Criteria of merchandising quality; cash register stands cleaning;
secondary products placement (cross
90% of the amount of the services provided will be merchandising stands);
invariable; shelf cleaning.
10% will be given in the next grid:
For a score of quality achievement = 0.90 - 0.0%
For a score of quality achievement = 0.95 - 2.5%
For a score of quality achievement = 0.98 - 5.0%
For a score of quality achievement = 1.00 - 10.0%
Assuming responsibility for our clients
in-store performance.
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Case study : Outsourcing for Wrigley
Implementing and maintaining
a high merchandising standard
across all channels : cash&carry,
hyper, super.
Increasing the cross
merchandising points in all
allocated locations using the
IKA posm but also
implementing the clients
custom designed posm.
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Case study : Outsourcing for Auchan
Context:
Auchan together with MPC developed a
project to help the small and medium
suppliers to improve their shelf presence
and to reduce the losses form expired
merchandise.
The project is currently implemented for
92 suppliers (food and non-food).
Objectives:
•assuring shelf presence;
• avoiding OOS situation < 1 %;
• improving the rotation rate each
supplier;
• improving the hole shelf image by
assuring product diversity ;
• helping Auchan department managers
by reliving them of the merchandising
tasks and allowing them to focus on their
selling targets;
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Case study : Outsourcing for Auchan
MPC implementation team :
1 Project Manager;
7 in-store team leaders;
-
7 store managers;
130 merchandisers;
Monthly tasks:
Weekly planning for each
location;
Weekly store checking for each
locations;
Supervising the promotion
implementation for each
Auchan location.
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Case study : Implementing new shelf layouts for OSRAM
Context:
Due to new EU regulations on the
replacement of incandescent lighting
sources with economic lighting sources in all
member states, Osram, one of the biggest
suppliers of light sources in Europe,
requested from MPC agency a program to
support gradual delisting of the old products
sold in modern trade networks and listing of
new products by implementing new shelf
layouts
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Case study : Implementing new shelf layouts for OSRAM
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Case study : Implementing new shelf layouts for OSRAM
Simultaneous implementation of the project on all locations of a key account;
The successful distribution and without loss of the POSM materials and products needed to implement
the new shelf layouts;
Successful implementation of over 70 new products involved in th e project;
Successful implementation Osram planogram in all KA.
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Case study : Coca-Cola summer 2010 promo activation
Locations :
- Carrefour
- Real
- Auchan
- Mega-Image
Timing :
July -September
Mechanics :
Binding free product on to a
Coca-Cola,Fanta, Fanta Berry bridge;
Initial target :
550.000 packages
Final target :
725.000 packages
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Case study : Julius Meinl sales thought an incentive program
Context:
Context
Julius Meinl is an important player in
HORECA but they also wanted to
penetrate the modern trade market by
supporting the sales force with an
aggressive merchandising program
Strong competitors with the tradition in
the retail coffee market ; Strategy & mechanism:
Lack of human resources specialized in the Reducing the O.O.S. frequency by
key accounts management. delivering weekly O.O.S. reports and
offering sales support;
Implementing the merchandising standard
on the shelf;
The gradual increasing of the product
exposure on the shelf by applying an
incentive program for the merchandisers.
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Case study : Julius Meinl sales thought an incentive program
Incentive program:
Evaluating the performance :
The degree of shelf filling at least 80%; The prize winners:
Displaying prices for all products;
Block arrangement on the shelf;
Clean shelves;
Increasing the number of faces per SKU on
the shelf.
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Case study : Juicy Fruit 2010 consumer promo
Context:
Context
Jellies are the most important segment in
the soft candy category.
Strong competition :
Haribo is gaining shelf share and sales volume;
Private label is also gaining shelf share;
Silvana and Sugus jellies are constantly growing;
Objectives :
Increasing the sales volume with 3% in Oct-Dec perioad.
Strategy & mechanism:
On all Juicy Fruit packages a sticker
with a unique cod will be attached.
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Case study : Juicy Fruit 2010 consumer promo
Results
The sales target was achieved for the
Oct-Dec perioad.
Also the shelf share for Juicy Fruit was
increased in all the IKA locations.
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Case study : Perfect Mousse in-store launch
Henkel sales team wanted to correlate the BTL campaign with the ATL.
Also Henkels main competitor launched its similar product.
MPC and Henkel implemented :
Dedicated POSM in all important IKA locations.
Developed a dedicated promo team.
Informative materials for the new products.
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Case study : Perfect Mousse in-store launch
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Case study : Marketing Impact Team for traditional trade
• January – February MIT:
-in 69 cities, 10 days, 386 merchandisers;
• 15-30 May MIT:
-in 16 cities, 15 days , 428 merchandisers;
• September – October MIT:
- in 64 cities, 395 merchandisers;
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