In-Store Merchandising - Kalmbach · PDF fileIn-Store Merchandising with Larry Belluscio,...

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Transcript of In-Store Merchandising - Kalmbach · PDF fileIn-Store Merchandising with Larry Belluscio,...

  • In-Store Merchandisingwith Larry Belluscio,

    Director of Equine Business

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • 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

    2015 Kalmbach Feeds, Inc. Dealer Conference

    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?

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • 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.

    2015 Kalmbach Feeds, Inc. Dealer Conference

    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

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • 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

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • 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

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • Performing an In-Store Survey

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

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • Lets Get to MerchandisingSetting up your merchandising displays

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • Consider Impulse BuyersImpulse buyers tend to:

    Stay in the store 30% longer

    Buy half again as many items

    Spend about 27% more money

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • 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!

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • Get Attention

    Eye catching, unusual displays

    Live animal exhibits

    Veterinary days

    Customer appreciation days

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • 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.

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • Department Signs

    EQUINE

    CATTLE

    FENCING

    MEDICAL

    BEDDING

    SMALL ANIMAL

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • 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

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • End Cap Displays

    Feature new products

    Seasonally correct merchandise

    Discount promotional items

    Sales can increase OVER 500%!

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • Vertical Displays

    Provide a uniform appearance

    Enhance the selling experience

    Makes it easy for your customers

    Makes it easy for you!

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • 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

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • Shelving Locations MATTERS!

    Most Effective: Eye Level

    74% as Effective: High

    57% as Effective: Low

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • Sell Product, Not Pegboard

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • 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

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • 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

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • Face to Face Merchandising

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

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • 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

    2015 Kalmbach Feeds, Inc. Dealer Conference

  • Making it all happen

    Knowing and doin