Download - Merchandising - grote.com · In-Store Merchandising In-store merchandising is one of the many benefits that Grote offers its customers. Whether you are a Heavy Duty customer that

MerchandisingMASTERY STATEMENT:

G R O T E T R A I N I N G S E R I E S

In this module you will learn the Grote merchandising system and be able to identify and use the various components that are available.

At Grote Industries, merchandising has a broad definition and includes: •PointofPurchase(POP) •PointofSale(POS) •Plan-O-Grams(POG) •Promotions •ProductPackaging •Store/Walk-inareamaintenance •Tradeshows(bothnationalandlocal) •Literature •Grotewebsiteandelectronicorderingmechanisms

PropermerchandisingisanimportantfunctionintheGrotesalesprocess.Youneedtounderstandhowtheseitemscanhelpyougathermorerealestateandmarketshare.

MarketClassification ...................................................................................... 2TheTotalPackagefortheAutomotiveMarket ........................................... 3DisplayingtheProductinyourBranchorStore ......................................... 4CreatingaPOG ................................................................................................. 6RightLampsfortheJob .................................................................................. 7MerchandisingandProductDocumentation .............................................. 9GettingtheBusiness ....................................................................................... 9The Upgrade ................................................................................................... 10POG,POPandPOSExamples ...................................................................... 11Additional Resources .................................................................................... 12

2GROTE 101 grote.com

Merchandising

MARKET CLASSIFICATION

AtGrotemerchandisingistypicallyappliedtotwomarkets:

Traditional – Automotivemarketsarecomprisedmostlyofautomotivewarehousedistributorswhichsellproductsusingtheindependent3-stepdistribution models.

Heavy Duty – MarketiscomposedofHeavyDutydistributors,OEDealersupplynetworks,andcompanyownedgroups.

It’simportanttoknowwhatmerchandisingmethodsareavailable.Thisway,whenyoubringnewcustomersonboard,regardlessofmarkets,youcan suggest to your customer the proper products to build the offering for maximumexposure.Itisimportanttocreateastrong,professionalimage.

Grote Package DesignLet’sbeginattheproductlevelandthepartsdeliverymechanisms.Grotepartscanbeofferedinthreebasicpackagingformats:

•Bulkquantitywithoutpackaging(partnumberby-3suffix) •Polybagpackagedproduct(noextension) •RetailPackagingincardedorfour-colorboxes(partnumberby

-5suffix)

Grotebulkpackagingisidentifiedbya-3attheendofthestandard5-digitpart number. This generally indicates that a full case is being shipped withoutfurtherpackagingtothedistributor.BulkpackagingisusedinshippinghighusageproductsandinsomeOriginalEquipmentpurchasestoeasetheinstallationprocessandtoreducepackagingcosts.Atoptionofthedistributorthisproductissoldtothemarketinlessthancasequantity.

ThestandardGrotepolybagisabluebagthathasasee-throughpanelfrontandback.AtthetopofthebagisaprintedareafortheUPC,partnumber, and product description in English, French, and Spanish. The GrotepolybagisgenerallyconsideredapackagingtypefortheHeavyDutymarket,butitisincreasinglybeingacceptedintheTraditionalAutomotivemarketplaceaswell.Ingeneral,polybagpackagingislessexpensivetothecustomerthanthe-5retailpack.Someslowermovingproductsarepackagedinanon-graphiccolorpolybag.

BasicGroteretailpackagingcanbeofseveraldifferenttypes,butallare,withafewrecentexceptions,indicatedbya-5suffixtothestandard5-digitpartnumber.Theretailpackcanbeaproprietaryslide-lockpack,displaybox,windowbox,orclamshell.Grotehasmadesignificanteffortstomaketheclamshellandslide-lockpacksassmallaspossibletomakePlan-O-Gram(POG)setupflexible.Thereisusuallyapricepremiumforretailpackproductincomparisontopoly-baggedproduct.Likethepolybag,theretailpackalsocontainsdescriptionsintrilingualformat.


Merchandising

Inadditiontothetrilingualcopy,anothersignificantsellingpoint/featureoftheGroteretailpackistheinclusionofCADdrawings/linearttoshowexactmeasurementdata(thisallowstheconsumertoknowthatthepartwillabsolutelyfitbeforepurchasing,reducinglaterreturns)andfeatureandbenefitdataprintedonthebackofthecards/package.Thisisauniquefeaturethatfewmanufacturersoffer.

In-Store MerchandisingIn-storemerchandisingisoneofthemanybenefitsthatGroteoffersitscustomers.WhetheryouareaHeavyDutycustomerthatreliespredominantlyondeliverysales,

oraretaillocationthatdependsonwalk-intraffic, the Grote merchandising plan is an important element in the sales process.

THE TOTAL PACKAGE FOR THE AUTOMOTIVE MARKET

There is one piece of literature that best identi-fies the Grote merchandising sales approach. TheTotalPackageBrochureidentifiesthesix

keyelementsthat identify what Grote has to offer a typical automo-tiveaftermarketdistributor.

Themaintake-away is that the Grote sales process isn’t about selling a light in abox,weofferagreat deal more. This “more” is what separates the Grote line from our competitors suchasPeter-sonandOptronics.TheTotalPackagehelpsdrivelightingsalesthroughthejobbernetwork.

Step 1.MerchandisingandPackaging:theseitemswillbecoveredin-depthinthissection.However,themainelementsareourslidelockpackaginganddisplayboxesthatallowcustomerstoquicklytakereturnsandputthembackontheshelftoavoidstockingfeesandincreasingprofits.

KeyPoints

Grote’s trilingual

packaging is written

in English,Spanish,

and French.


Merchandising

Step 2.Plan-o-Grams:Groteplan-o-grams(againcoveredingreaterdetaillater)deliverstylisticallycomprehensivesalestoolstoallowjobberstorestoboostprofitsthrough high yield inventory turns and impressive store sets.

Step 3.ExclusiveProduct:wehavemanyitemsthatourcompetitionjustcannotmatch or offer. Our engineering and product development process is a significant sales benefit and needs to be addressed when dealing with price conscious buyers that try to compare us to our competition.

Step 4.LiteratureandCatalogsupport:Ourcomprehensivecatalogisfullofprod-uctinformationtomakethecounterman’sjobaseasyaspossible.Withfullcolorphotos,detailedlinedrawings,electrical/technicalinformationwithfeaturesandbenefits,itisasalesman’sbestfriend.Wealsohavereamsofothersalesliteraturetohelpclosethesale…muchofitavailableforquickdownloadfromtheGrotewebsite.

Step 5.KnowHowtraining-ourmulti-awardwinningtrainingprogramisuniqueinthe lighting industry and is available for our customers and in turn our customers customer. This program is currently a two volume set that covers basics of elec-tricity and troubleshooting. It is a certification program that includes hats, patches, and wall certificates.

Step 6.GuaranteedChangeoverProcess-thedetailedchangeoverprocessiscov-eredbyyourlocalrep.HecanoutlinetheTotalPackageprocessforthecustomer.

AsyouwalkthroughthesesixstepsitshouldbequicklyapparentthattheGroteprogramismorethanthelampinthebox…it’snotthelightsyousell,it’showyousell the lights.

DISPLAYING THE PRODUCT IN YOUR BRANCH OR STORE

Step 1. How will the sale be created?

•Phone/Countersales •Deliveryofparts(wholesaling) •Walk-intraffic

Afterthedecisionhasbeenmadeastowhattypeofproductpackagingwillbemarketed,thenextdecisiontobemadeishowtodisplaytheproductforsale.Grotehasoptionstosatisfypracticallyanysituation.Dependingonthecustomer’sin-storemerchandisingstrategy,youmaywanttouselabeledbinboxesforthebackwarehouseareawhileusingpolybags,bulkproduct,oraretailpackPOGinthefront of the store.

Grote has several options for merchandising products including: Bin Boxes-Binboxesarethemostcommonmethodforstoringproductinthebackofthewarehouseorinthefrontofthestorewhenusingabulkset-up.Grotehastwosizesofbinboxes:asmallbinbox(99920)andamuchlargerbulkbinbox(00780)forstoragepurposes.Eitheroftheseoptionsmaybeappropriate.

KeyPoints

Six Key Elements:

1. Merchandising and Packaging

2.Plan-O-Grams

3.Exclusive Product

4.Literature

and Catalog support

5.Know How

training

6. Guaranteed Changeover

Process


Merchandising

Retail Plan-O-Grams (POGs)-GroteusesSpaceman® Suite Merchandising Servicesplan-o-gramsoftwaretocreateprofessionalPOGsforthestorefront.GroterecentlyupdateditsPOGofferingtoincludearefreshed4-foot,8-foot,12-foot,and16-footoption.IfyourcustomerislookingtousetheGroteretailpackagingstyle,thenoneofthesePOGswillcertainlybetherightsolution.ThePOGScanalsobeconvertedtopolybagandbulkofferings.

Ifoneofthepre-packagedsolutionsisnotsuitable,ifthereisenoughtime,aspecialPOGcanbedesignedtoutilizeexistingstockand/orrequirementsacustomermighthave.AdditionalPOGsfor3-footsections,orendcaps,areavailableforseasonalitems.PolybagPOGsarebecomingmorepopularaswell,and this product is suited for hanging on peg holes.

Step 2. How to create and merchandise a customer’s selling areaIfyouareworkingbehindthecountertomerchandisetheproductontheshelves, please follow these recommendations:

•Productshouldbedisplayedinnumericalorder.

•Productshouldbeplacedinbinboxesclosetoeyelevel,withexcessinventoryplacedinawell-labeledoverflowcartononatopshelforbelowtheshelving-ifthereisspace,itcanbeplacedbehindthebinbox.

•Binboxesshouldbecleanandhaveexcesslabelingcoveredorremovedtomakeitaseasyaspossibletoseetheproduct.

•Thebinboxshouldhaveeasytoreadlabelswithpartnumbersprintedinblackpermanentmarkeronthefrontofthebinbox.Oftenaddress-stylelabelsareused,buttheydonotholdupintheharshenvironments of a warehouse. If you choose to use labels, you must makesuretheyremainclearandeasytoread.

•Abulkdumpbindisplaycanbeusedforpromotionalitemsorfastmoving products.

Manyofthesamestepswillbeinorderwhenstockingbulkproductorbulk-displayedpolybags.Makesuretheproductisclean.Dependingonthe customer’s interior storage and inventory procedures, there may be an excessiveamountofdirt,grime,andbrakedustinthestoragearea.Youwillneed to spend some time cleaning up the product area whenever you stop into the customer location.

If you are setting up a retail pack POG for a customer, keep the following tips in mind:

•Usethepegdiagramtopre-setthepeghooksinthedesignatedholes.Grotebuildsitsstandardplan-o-gramsonthe00180,4-footgondolathat has been offered for many years. If your customer is providing his own hardware, you will want to verify the measurements before you beginandthenmaketheappropriateadjustments.

•Groteusesthesamemethodologyassomeofthefastestgrowing

autopartsretailerswhensettingupPOGs.Largeritemsareplacedonthetoprowwithassociatedproduct(replacementparts,forexample)nearby;thesmalleritemsarehungonthelowerhooks.

KeyPoints

A waterfall display is a

space saving plan for

displaying product.

Products are overlapped by a system

of bars projecting out from

the display to allow for overlapping of product.


Merchandising

•Typically,itiseasiertoplacetheitemsonthepeghooksstartingwiththebottomhooksandworkingup.Trytoavoidusingthetoprowofpegholestomakeiteasiertoinsertthehooks.

•Thepegdiagramtypicallydisplaystheright-handholeofatwo-prongedpeghook;thisisdonetoallowmaximumspaceandtoletyoumovethehookstowardthelefttocondensewhenpossible.

•Itisnotuncommonforcustomerstousewhatareknownaswaterfall

racks.Theselayeredcomponentsallowformoreproducttobedisplayedin a tighter area. It is often not as pleasing to the eye but Grote can accommodate this merchandising set up. If your customer wishes to use waterfallracks,thismustbeidentifiedearlyinthecustomplan-o-gramsetup process.

CREATING A POG

InmanycasesyouwillbeaskedtocreateaPOGfromexistinginventoryortomakearecommended product offering. From a merchandising perspective, if you are unable toutilizeanexistingPOG,youshouldkeepthefollowingideasinmind:

Heavy Duty Market

What type of customer does the distributor serve?Ifit’safleet/enduser,makesurethattheirstockhasthecoveragethatfleetsdemandinbothStop/Tail/TurnandClearance/Markerproduct,aswellasaccessoryneeds.

You can’t sell what you don’t have in stock.Makesuretheinventoryissuitableforthesizeofyourcustomerbase.Toooftenthedistributors will find themselves special ordering one or two parts to complete an order.Makesureyouhaveinventory.Usebusinessintelligencepurchasehistoryreports,andfleetsurveystoanalyzeinventoryturnsandreorderhabits.

New productsTheGrotemarketingdepartmentspendsalotofeffortandtimetopromotenewproductsthatwehaveatthefleet/end-userlevel.Thedistributorneedstocarrytheinventorytosupportproductlaunchefforts.Recommendedstockinglevelsaretypicallysentouttohelpthefleetjudgetheirneeds.

Traditional Distributors

Custom Plan-O-GramsGrote offers many services to our distributor customers. One of those services is the abilitytocreatecustomplan-o-grams.Asmentionedonpage4,GroteutilizesSpace-manMerchandisersoftwareproducedbyACNielsen.Thissoftwareallowstheusertobuildplan-o-gramsfromadatabaseandtoplacetheproductinagridformatontoacustomsetupgondola(canincludeshelvesand/orvariousstylehooksandhangers).

Theprocessforhavingacustomplan-o-gramdesignedforyourcustomerincludesthefollowing steps:

•IdentifytheproductthatneedstobeplacedonthePOG

•Identifyandmeasure(tothe.5”)thetypeofgondolaandspacethatwillbeallottedforthePOG,itissometimeshelpfultoknowthebrandofgondola

KeyPoints

Retail displays typically cater to public walk-in

business.

KeyPoints

LED lighting is usually

preferred over incandescent.

KeyPoints

POGPlan-O-Gram

POSPoint Of Sale

POPPoint Of Purchase


Merchandising

(Lozierforexample).Thisincludes,overallheight,baseheight,width,notchmeasurement(thespacebetweenthenotchesthattheshelveshang,siderails),pegholespacing(typically1”x1”),howmanysections/segments(12ft,butinthree4ftgondolas).

•SubmitinformationtoyourlocalGroterep.

•GroteMarketingwillneedaminimumoftwoweeksanddependingonworkloaditcouldbe4weeksorlongertofinalizeyourcustomPOG.

What type of customer does the distributor serve?Unlikeheavydutycustomers,traditionalretailcustomersgenerallyselltoawidervariety of consumers and as such need broad product coverage without a lot of depth.

Ifacustomerservicesaspecificmarketsegment(agricultural,forinstance),makesuretheproductsareinstocktomeetthoseneeds.

LEDsFartoofewofthetraditionalcustomerbaseiscarryingsufficientLEDsintheirstandardproductofferings.YoushouldspecificallymadethisafocusofthenewPOGsbeingoffered.

•InthetraditionalmarketplaceGrotehaschosentopromotetheHiCount® lineofLEDs.InsomeinstancesyoumightusealongerwarrantyLEDproduct, such as SuperNova®, but in nearly all cases you will want to use theHiCount® line.

RIGHT LAMPS FOR THE JOB

EveryyearGroteproducesareportofthetop100best-sellingpartsfromthepreviousyear,compiledforboththeTraditionalandHeavyDutymarkets.Thisreportis the main tool you can use to identify the top selling parts to focus on with your customers..

Anotherwaytoselectproductstoofferyourcustomerormarketistocheckthemovement code of the products located in the price sheet.

A:Fastestmovingitems–topmoversforanymarket

B:Nextfastestmovingitems–usuallycoreproducts

C:Steadymovingitems–itemsthatroundoutacompleteproductoffering

D:Limitedsalesitems;basedondemandorrestrictedtocertainareas

AA:Displayitemsnotsubjecttoreturnorobsolescenceprotection

DD:Specialorderitemsnotsubjecttoreturnorobsolescenceprotection.Additionalleadtimesmayberequired(standardcaseonly)

W:Warehousedistributororfactorystockonly,slowmoving

KeyPoints

Grote displays are generated by popularity,

profit, coverage, and new

technology.

KeyPoints

The right LED mix of

product will instangly bolster

sales dollars and market penetration.


Merchandising

DISC:Obsolete.Notsubjecttoreturnafterexpirationofrecalldeadline

N:Productsusedwithanothercodetoindicatethattheitemisnew.Theiractivityindexisestimatedafteramarkettest

Forthetraditionalmarket,thePOGofferingnowisavailableinan8’,12’,and16’storeset(4ftPOGsareavailableonrequest).ThepercentageofLEDSKUstothetotalSKUcountis: 8’:20LEDSKUsoutof85SKUs=23%ofthetotaloffering 12’:26LEDSKUsoutof115SKUs=22%ofthetotaloffering 16’:30LEDSKUsoutof142SKUs=21%ofthetotaloffering

OnemethodtoselecttherightmixofproductistolookatthetotalvalueofthePOGandthevalueofthesell-thru.Expectfourturnsperyearonthatinventoryinthestore.IfthevalueofthePOGis$1200atthejobberlevel,thenthejobbershouldexpect$4800inannualsalesforsell-thruoftheproduct.

AlsounderstandthatthePOGisasuggestedmappingtoolforpopularitems. It may not physically fit the area that the store manager gives you. Learntoadaptandworkwithintheareasyouhaveavailable.Storesmayordera12’displaybutonlyhaveroomfor8’inthepegboardarea.Lookforareasonthepegboardsbehindsales/partscountersorshelves.Youmaybeabletousethebaseboardofthedisplaytofeaturelightkitsandboxeditems.

POP (Point Of Purchase)InadditiontoPlan-O-Grams,GroteoffersawidevarietyofPointOfPurchase(POP)displays.TheGrotePOPisgenerallyintheformoflighteddisplays showing the brightness, longevity, or design of the Grote lighting product.

Typically,POPdisplaysareincludedincustomerassortmentsandtiedtotheorder.ThepartnumbersandpicturesofavailablePOPdisplayscanbefoundinthebackofthemerchandisingandPOGbook.

WhensettingupPOPdisplays,youneedtoworkwiththelocationmanagertomakesuretheyunderstandthepotentialdangersoflitdisplaysthatarenotusedproperlyorwellmaintained.GrotePOPdisplaysaremanufactured with a high level of care and professionalism; however, if they are not properly maintained or their power supplies are not properly grounded, accidents can happen.

OtherPOPsincludeawidevarietyofcountermats,posters,andbrochures.TheliteraturecanbefoundontheGroteLiteratureBrochure(GLB)orderformavailablefromyoulocalGrotesalesrep.

KeyPoints

The Dollar % total for

LED product is typically 2x the Unit Sales %.

KeyPoints

Expect and manage four turn sell-thru on a product

mix at a jobber store.


Merchandising

POSPointofSale(POS)displaysincludespinningracks,dumpbins,andcounter top bins. Grote offers a wide variety of sales tools that allow your customerstodisplaytheirproductinanatypicalPOGfashion.Ifyouhavea branch that is unable to provide a full 4 feet of space or wants to set up aseasonaldisplay,dumpbinsandspinnerracksareaperfectsolution.TheseitemscanalsobefoundinthebackofthemerchandisingandPOGbook.

MERCHANDISING AND PRODUCT DOCUMENTATION

Grote is constantly improving and introducing new documentation to supportthesalesprocess.Asmentionedbefore,theGLBorderformliststheavailablecatalogs,marketingbrochures,andsalestoolsavailabletoorderfromthemarketingdepartment.However,themostefficientmeanstogetup-to-dateproductdataislocatedatwww.grote.com.

The Grote website is brimming with valuable product data, including a liveproductcatalogthatisavailable24hoursaday,7daysaweek.Downloadabledatasheetsareavailableathttp://www.grote.com/marketing/.Thereyouoryourcustomercanchoosetoprintordownloaddata sheets that show photos, line art, electrical data, plus features and benefits of the product. Electronic data interchange is also available. The Grote website is also a good source for identifying new products, promotions, press releases, and product photos.

GETTING THE BUSINESS

The final step in getting the business is setting up a plan to changeover thefleet,orjobberfromaGrotecompetitortoaGrotesupplier.Grotehasaverydetailedchangeoverprogram.TheexplicitdetailsandpaperworkshouldbeworkedoutwithyourlocalGroterepresentative.

Ifyouhaveheardtheexpression,“Planyourwork…thenworkyourplan”,youshouldknowtomapoutyourplannedeffortswhensettingupthefleetstorageandover-the-countersellingareas. •Youwillneedtoknowthenumberofbinboxes,smallandlarge

needed. Know if you have enough room for the new products, catalogrequirements,etc.

•CoordinatewithyourGroterepresentative

•TheJobberstore/branchsellingareainthefrontneedspeghooks,numberofgondolaheaders,POSmaterialsinproperquantity,countermats,posters,productdisplays,etc.

KeyPoints

Make scheduled calls at one

week, one month,

three months and six

months for any questions

your designated contact may

have.


Merchandising

In terms of the merchandising effort, it is important to note that your changeover workisnotcompleteuntilyouhavedonethefollowingthings:

•Sweptthefloor,cleanedandstraighteneduptheareaaroundtheGrotepartsarea,infrontandback.

•Madesuretherearecatalogsavailableatthecounter,inthebackwarehousearea(whenpermitted),andinthePOGarea.

•Forfleetscatalogsshouldbeinstorage/inventory.

•MadesurethepartsorderingcomputershavebeenloadedwithGrotepricing and part numbers and that the proper interchanges have been completed to allow the counter personnel to order Grote parts instead of the competitive parts they previously ordered.

•ThecompetitiveinventoryinterchangedtoGroteisinnumericalorder.

•Madesurethatyouhaveprovidedadequateandthoroughtrainingto the sales and counter staff on new Grote products, as well as the Grote part numbering system, catalog, and website.

•Identifiedadesignatedcontact(storemanager,fleetmaintenancemanager,salesmanager,orcountermanager)thatyouwillbespeakingwithoneweek,onemonth,threemonths,andsixmonthsinthefuture.Inthosephonecallsyouwillansweranyquestionsandhelpwithinterchangeproblemsandordering/stockingissuestheymightbeexperiencing.ThiscontactisakeypieceoftheGrotechangeoverexperiencebecauseithelpseaseaprocessthatmightbe difficult for some members of the customer team.

THE UPGRADE

OurjobisnotcompletewhenwegetthesuccessfulchangeoverandthePOGis set. It is the responsibility of the Grote sales person to follow up on regional issuesthatmightbeaffectingthePOG…Agriculturesalesforinstance.ItmightbenecessarytomakechangestotheindividualstorePOGonayearlybasisto meet those regional needs. Every year during the business plan cycle you shouldlookatthejobberPOGsandidentifyareasforimprovement,selectionofnewproductsandwaystoincreasetheLEDcontent.Thismustbedoneatleaseonceperyear.Inafleetitmightbenecessarytoupdatethefleetsurveytoaccountfornewequipmentaddedtothemix.

KeyPoints

New product launches

should be a key part of

your upgrade plan.

KeyPoints

A call back or follow up visit is essential for every change

over.


Merchandising

POG, POP AND POS EXAMPLESBelowareadditionalexamplesofthetypesofplan-o-gramsizesandconfigurations,POPandPOS.

4’ Poly Bag4’

8’

12’

16’

Custom Sizes


Merchandising

ADDITIONAL RESOURCESTheseresourcescanbeacquiredonlineorthroughthemarketingdepartment.

NOTES

Counter-topbinbox(54173)with54173product

4positionworklampdisplay(POD-001)

GroteSelectdumpbinwithheadercard(00781)