In-Store Merchandisingwith Larry Belluscio,

Director of Equine Business

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Dont be an inconvenience store

The key is:MERCHANDISING

2015 Kalmbach Feeds, Inc. Dealer Conference

Why merchandising?EASY ANSWER:

INCREASED PROFITABILITY

50% of customers make purchases because they remember seeing it DISPLAYED.

48% of customers purchase one or more items on IMPULSE.

2015 Kalmbach Feeds, Inc. Dealer Conference

Today, well review:

How merchandising increases profit potential

Why image matters

How to perform audits and surveys to evaluate your customers and priorities

Benefits of basic image upkeep

The different types of merchandising displays and their effectiveness

The importance of printed promotions

How to include and encourage your employees

2015 Kalmbach Feeds, Inc. Dealer Conference

Overall Promotional Strategy

Incorporate merchandising in your overall promotional strategy: Presentation of products and services

Outside appearance

Store organization

Displays

Personnel (expertise, helpfulness)

Economics

2015 Kalmbach Feeds, Inc. Dealer Conference

Getting Started with Merchandising

Remember there is no right way

The goal is to project the high value of your store

Think about your stores image

Perform self audits

Develop an in-store survey

2015 Kalmbach Feeds, Inc. Dealer Conference

Projecting HIGH value

The goal of merchandising is to project the overall high value of your store. Including:

Outside appearance

In-store salespeople

Displays, promotions, inside appearance

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Kalmbach Team:Here to Serve You!

What is image?

Your stores image is two-fold:

1) The IMPRESSION your customers have about your store when they walk in

2) The MENTAL picture your store brings to mind when customers arent actually on-site

Are your customers actual and mentalpictures the same?

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ECONOMICSHow much am I willing to pay?

Am I being charged a fair price?

What are other stores charging?

What does this store offer that I

cant get elsewhere? TRAFFIC PATTERNSIm glad I saw these shoes, I really

need a new pair!

One thing thats nice about this store

is you can always find your way

around.

The kids always want to head for the

animals in the back room.

SPACE

ALLOCATIONTheyre never out of the products I like

to buy.

I always know where I can get a cup of

coffee and doughnut in the morning.

No matter what season it is, I know

theyll have what I want.

IMAGEI really enjoy shopping here.

This store has everything I need,

I can always find what I want.

Theres always someone willing

to help me.

MERCHANDISE

PRESENTATIONThese rabbit starter kits are a great idea; its nice to

find everything I need in one spot.

I like the displays here; theres always something

new to see.

I like those new bins for bird feed; I can measure out

exactly how much I want.

That new warehouse is really convenient; I can pull

right up to the loading dock.

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SIGNS, LIGHTING,

PROMOTIONThis place is always bright & cheerful looking.

I hate having to hunt for something. The new aisle

and department signs are great!

It sure is nice to be able to see the price,

especially if theyre having a sale.

I really appreciate that they let me know about

sales and give me coupons.

What is your stores image made up of?

Physical appearance

Merchandise presentation

Cleanliness

Product Selection

Service

Personnel

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Performing a Self Audit

Need Outside Help Customers Other Business People Focus Groups Can be done in-store

Who is your customer? Monday-Friday? Where do they live? What do they buy from you? Why do they buy? How would they improve the store?

2015 Kalmbach Feeds, Inc. Dealer Conference

Performing a Self Audit

What do non-customers think of you? Do they know what you do?

Why dont they shop with you?

Employees How would they improve the store?

How well trained are they?

Strengths/Weaknesses Create competitive advantage

List of improvements

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Performing a Market Audit

Who are your competitors? What do they look like? How do customers feel about them? How are they priced? Hours? Go shop competitors

What is your market? Demographics Traffic patterns Local sources will have this

Make a list of areas you can capitalize on Related areas New departments

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Performing an In-Store Survey

Be sure to have a county map near the survey table.

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Lets Get to MerchandisingSetting up your merchandising displays

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Consider Impulse BuyersImpulse buyers tend to:

Stay in the store 30% longer

Buy half again as many items

Spend about 27% more money

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Humans are TACTILE

We like to TOUCH the fruit before we buy.

2015 Kalmbach Feeds, Inc. Dealer Conference

Lighting

Your lighting should be bright enough that customers can easily see merchandise.

Better lighting can reveal trouble spots that can be improved, such as:

Dust

Worn or dirty paint

Broken tiling or linoleum

Damaged displays

Keep a watchful eye out for these trouble spots and FIX THEM!

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Get Attention

Eye catching, unusual displays

Live animal exhibits

Veterinary days

Customer appreciation days

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COLORFUL Price Tags

Price Tags, Labels and Colors are IMPORTANT!

Price tags should be: On every item In the upper right hand corner Bright colors, easy to see

Price tags increase profitability. Customers dont need to wait on a

salesperson. Check out is faster and easier. Sale prices can be clearly marked

by item. Sale tags can be removed.

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Department Signs

EQUINE

CATTLE

FENCING

MEDICAL

BEDDING

SMALL ANIMAL

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Sales Increase from Merchandising Techniques

254043

676879

112131

229540

0 200 400 600

"Special" Price Signs Regular Price

Counter Displays

Dump Bins

Cross Merchandising

Special Price Stickers on Sale Items

Displays in Aisle

Partial Endcap No Sign

Partial Endcap Price Sign Only

Partial Endcap Price Sign & Benefits

Full Endcap Power Display

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End Cap Displays

Feature new products

Seasonally correct merchandise

Discount promotional items

Sales can increase OVER 500%!

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Vertical Displays

Provide a uniform appearance

Enhance the selling experience

Makes it easy for your customers

Makes it easy for you!

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Recognizing Hot Spots

Hot spots deserve merchandising ATTENTION Prime source of impulse purchases

Should be spotless

Should be well stocked

Should be changed regularly (every 2 weeks)

Salespeople should be prepared to assist customers

By the counter

In the drive-thru

Center of the store

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Shelving Locations MATTERS!

Most Effective: Eye Level

74% as Effective: High

57% as Effective: Low

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Sell Product, Not Pegboard

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What about feed?

Feed lives on the retail floor Must be allocated space

The product must be signed and priced

Big displays = big results Wimpy = wimpy

Rotate your displays

Placement of displays is critical

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Your Counter Area

Make sure the counter area is big enough to service the types of merchandise you sell and your customer volume

Be sure the counter space is well-staffed, neat and stocked with easy to buy items

Raise or elevate the counter area

Implement an easy check out system

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Face to Face Merchandising

May be one of the most important tools in your merchandising toolbelt

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Printed Promotions

Prioritize the information1) Product Name

2) Special Sale

3) Amount or size (50 lbs.)

4) Price

Add a benefit: it can increase effectiveness of the sign/flyer by almost 100%!

Be sure your designs are BALANCED

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Making it all happen

Knowing and doin