In-Store Merchandising - Kalmbach...

transcript

In-Store Merchandisingwith Larry Belluscio,

Director of Equine Business

2015 Kalmbach Feeds, Inc. Dealer Conference

Don’t be an “inconvenience store”

The key is:MERCHANDISING

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.

Today, we’ll 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

Overall Promotional Strategy

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

• Outside appearance

• Store organization

• Displays

• Personnel (expertise, helpfulness)

• Economics

Getting Started with Merchandising

• Remember there is no “right way”

• The goal is to project the high value of your store

• Think about your store’s image

• Perform self audits

• Develop an in-store survey

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

Kalmbach Team:Here to Serve You!

What is image?

Your store’s 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 aren’t actually on-site

Are your customers’ actual and mentalpictures the same?

ECONOMICS“How 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

can’t get elsewhere?” TRAFFIC PATTERNS“I’m glad I saw these shoes, I really

need a new pair!”

“One thing that’s 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.”

ALLOCATION“They’re 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

they’ll have what I want.”

IMAGE“I really enjoy shopping here.”

“This store has everything I need,

I can always find what I want.”

“There’s always someone willing

to help me.”

MERCHANDISE

PRESENTATION“These rabbit starter kits are a great idea; it’s nice to

find everything I need in one spot.”

“I like the displays here; there’s 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.”

SIGNS, LIGHTING,

PROMOTION“This 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 they’re having a sale.”

“I really appreciate that they let me know about

sales and give me coupons.”

What is your store’s image made up of?

• Physical appearance

• Merchandise presentation

• Cleanliness

• Product Selection

• Service

• Personnel

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?

Performing a Self Audit

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

• Why don’t they shop with you?

Employees• How would they improve the store?

• How well trained are they?

Strengths/Weaknesses• Create competitive advantage

• List of improvements

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

Performing an In-Store Survey

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

Let’s Get to MerchandisingSetting up your merchandising displays

Consider Impulse BuyersImpulse buyers tend to:

• Stay in the store 30% longer

• Buy half again as many items

• Spend about 27% more money

Humans are TACTILE

We like to TOUCH the fruit before we buy.

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!

Get Attention

• Eye catching, unusual displays

• Live animal exhibits

• Veterinary days

• Customer appreciation days

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 don’t 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.

Department Signs

EQUINE

CATTLE

FENCING

MEDICAL

BEDDING

SMALL ANIMAL

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

End Cap Displays

• Feature new products

• Seasonally correct merchandise

• Discount promotional items

• Sales can increase OVER 500%!

Vertical Displays

• Provide a uniform appearance

• Enhance the selling experience

• Makes it easy for your customers

• Makes it easy for you!

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

Shelving Locations MATTERS!

Most Effective: Eye Level

74% as Effective: High

57% as Effective: Low

Sell Product, Not Pegboard

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

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

Face to Face Merchandising

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

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

Making it all happen

• Knowing and doing are often a few steps apart

• Use the Image Checklist

• Decide who is responsible for what

• Devise chore lists

• Develop performance goals

• Set up a competitive atmosphere between departments

• Make sure that employees know what is expected

In conclusion…

• Merchandising increases profit potential

• Think about image first

• Perform audits and surveys to evaluate your customers and priorities

• Lighting, cleanliness and signage go a long way

• Evaluate what your most effective merchandising display is and become an expert at using it

• Don’t forget printed promotions

• Include and train your employees for everyday image upkeep

In-Store Merchandising - Kalmbach...

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