Merchandising involves methods to promote product categories both in and outside of stores. It includes micro merchandising of space allocation, cross merchandising of displaying products in other categories, and visual merchandising to engage consumers. Effective merchandising uses primary, secondary, and impulse displays strategically placed. Impulse purchases account for 75% of confectionery sales and are driven by unplanned purchases at the point of sale. Maximizing availability, visibility, and accessibility of impulse purchase items through optimal product placement and eye-catching displays can boost such sales.

1.  
Merchandising
&
Impulse Selling

2. Merchandising is combined use of
methods, practices & operations used to
promote & sustain certain categories in
and outside the store

3. 1. Micro Merchandising
Allocation of space according to shopper need
focusing a certain outlet
2. Cross Merchandising
Is practice of displaying product in other
categories to generate additional revenue
3. Visual Merchandising
Promoting sku by their presentation to engage
consumers by capturing their attention

4. 1. Primary Display
Permanent shelf display of the product within
the category
2. Secondary Display
Additional display may be permanent or
temperory
3. Impulse Display
For driving impulse sales and should be
position in accordance with category buying
behaviour

5. It is an unplanned purchase, did not intend to
buy…
 75% ++ of confectionery is purchased on impulse…
BUYER BEHAVIOUR / The Ah Ha Factor!
AVA = GRAB & Pay & GO - Enjoy.

6. IMPULSE PURCHASE ITEMS
 Refers to items which the shopper did not intend to initially
purchase. The decision is taken at the point of purchase.
 Effective merchandising and accessibility help to stimulate
impulse purchases.
 The entire layout of a shop is tailored to maximize exposure
of impulse items to increase the number of products in the
shoppers basket.

7. What is an important asset a retailer has in their business ?
it’s.. SPACE!!
There is a variety of space available such as:
Counter Space , Shelf Space ,floor space , fridge space
& Air space
You/WE need to win the “race for space”…
“Grab the RIGHT SPACE”

8. Merchandizing done effectively will lead to: -
IMPULSE
SALES..

10.  Impulse sales will not just happen because we have gained space in
a retailers outlet,
 we need to be experts in identifying the hot spots on the counter, in
the store’s traffic flow and other high impulse areas such as drink
fridges and coffee stations.

11. The places where most shoppers will see and have access to your product.
The most attractive part of the shelf space for the best “selling results”
is the centre of the shelf.
To determine the hot spot, you have to consider:
 Customer flow
 Where payment is made
 Position of key lines e.g. Bread, Milk,
 “Eye level” display, “The Arc of Reach”
The Counter is a prime
location for any product
and for impulse
purchases Confectionery
=70%

12. Display & Merchandising in 21st Century Pakistan.
Areas of Sales Opportunity – Front Counter
“The Arc of Reach”
2 Square Feet.
Are you making “Profitable Sales”
Within 2 Square Feet in the
“Arc of Reach” in your outlet?
In your face Merchandising ?
Merchandise your range So well (using the AVA Principles) that the consumer has to make a
conscious decision NOT to buy your product!

13.  Mr Positive,
o Brand loyalty will buy the same product time and again, generally will not
switch therefore if his brand is not available he will not purchase, lost business
for the retailer.
 Mr Peckish
o This customer is hungry, but has not really decided what he wants to buy. He
will be first drawn by the display and then will make a choice. This means he is
a semi impulse shopper
 Mr Impulse
o This customer is purely impulse. He has no intention of purchasing confectionery and
indeed has come into the shop to buy something else – Milk , can of soft drink,
cigarettes etc.

14. ConfectioneryEntrance
Drink Fridges Food
Payment
Area
Magazines
E
B
F
C
D
A
A – Shelf Space
D – Fridge Space E – Floor Space F – Mag Rack Space
B – Counter Space C – Hot Beverages Space

15. Availability
Product is available !!
offering consumers the opportunity to purchase
products.
Visibility
I can see the product !!
showing the products using impactful and eye-
catching P.O.S. material.
Accessibility
I can touch the product !!
… presenting shoppers the convenience of buying
confectionery products in locations where traffic is
high.
I can see the product and it is within “an
arms reach” for the consumer

16. Availability
Is the product available?
(Distribution)
Visibility
Can I see the product?
Accessibility
Can I touch the product?
If you do not win at the point of purchase,
you do not win!!!

17. The prize is rewarding…
From this…
To this…

18. AVAILBILITY – Product is available in the store! Distribution.
VISIBILITY – I can see the product! In my FACE Visibility.
ACCESSIBILITY – I can touch the product! - within 2 Sq Feet,

19.  Product availability is key in maintaining sales and customer
loyalty.
 When out-of-stock occurs, both the store and the brand suffer
because of its negative impact.

20. Product display is on eye level (buy level)
An item’s size, seasonality, and whether it is
promoted, all influence the shelf shifts that
occur from time to time.
Products placed within eye-level shelves can
increase sales by as much as 43%.
Shelf positioning dramatically affects sales when
visibility of products becomes the dominant factor.

21. Facing (according to respective Plano gram)
 Facilitate the shoppers decision process, by improving the clarity on
the shelves according to:
 Ensure that number of facings correspond to market share in the
specific channel.

22.  Merchandising is not just filling the shelves.
 Make your shelf display visible, and make
sure our products are in the right display.
o Enough facings?
o Eye level/Positioning?
o In line with the planogram?
o Brand blocking?
o Eye catching manner?
o Enriched by POP Material?
o Right category area with competitors?
o Brands have the right space according to their
market share.

23. Product Facings Index Sales
 100
 118 +8%
 130 +10%
 138 +6%
 144 +4%
Extra Facings = Extra Impact = Extra Sales

24. Make sure the following criteria can be delivered:
 Easy to touch
 Reachable (within arm’s reach)
 Stable, avoid shelving that will cause products to fall
down
Avoid placing the products
 Behind a glass counter
 On a back shelf
 On a shelf that is too high or too low.

25. If it cannot be seen, it will not be bought
Remember:
o If you have distribution – you have Availability!!
o If you can see the product – you have Visibility!!
o If you can touch the product – you have Accessibility!!

26.  The Checkout Counter Area is the best place
in the store to get extra / impulse sales
(every shopper must pass or come to this
area) – it’s the most difficult to resist!
Prime Position = Impulse Sales…

27.  This space must be reserved for top sellers only with emphasis on variety of
brands.
 Confectionery is the most suited category for the checkout counter area with the
highest turnover potential, and must therefore assume the greater proportion of
space.

28.  Place counter stands and units within the hot spot area
 They should be secured (glue or screw) to the counter so as to gain
permanency
 Also minimize the chances of them being moved.

29.  Confectionery can be
merchandised and sold in
many locations around the
store.
 Present shoppers the
convenience of buying
confectionery
in locations where traffic
is high.
 Show interest in helping &
consulting the customer.
 Develop credibility
 Improve level of customer
service
 Will be listened to in
the future.
Shopper
Sales
/MerchandiserRetailer
 Increase impulse purchase –
Confectionery = 75%
 Improve general store
appearance
 Attract more regular customers
 Increase his total sales & profit

31. 15-Nov-14 31

41. OPPORTUNITIES

42.  
Summing up

43. Availability / Listings  Distribution – MML - Channel
Visibility EYE/THIGH  Can I see it-eye level=BUY
Reachability  Can I touch it ?
Freshness  Stock Rotation
Activation/Prompt  To Purchase
Location C / S / F  Traffic Flow
Merchandising@ POP  Permanent- Engage-MPOI

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47.  Materials should be clean and current,
 They represent our company & YOU.
 Remove any old or damaged POP and replace with new.
 Do not leave stickers and other POSM for the dealer to fix. Do it yourself.
 POSM. is an expensive investment. Use it effectively.
 Remember it is a competitive weapon.
 Remember to have the RIGHT tools to do the job. GLUE / Tape
 Make your POSM Investment last –BE SMART –BE PERMANENT

49. 49

50. 50
Headers to drive internal
and external visibility
Moving signs to
interrupt the shopper
New Shelf
strips
Case study.....Experiment/Be Curious/Possibilities..

51.  Use visualization with «right communication» (toppers, flags, shelf-
frontiers), which gives following advantages: Turns shoppers into
Stoppers
 Builds the mood for buying, additional impulse
 Interactive dialog of the category with shoppers
 Shopper understands the category and make their choice.
INTERUPT – ENGAGE - CONVERT

52. Thank you