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Midlands state university

Faculty of commerce
Department of business management

Name. Chapanda Kudakwashe Gracious


Registration No. R0645087
Level 4.2 (PDP)
Programme. Business Management

BM403 Assignment
Question. Go to a supermarket, look at their displays
and with justification discuss why what is where.
Include a layout planning

Due date. 1 March 2010


An outline of TM supermarket Gweru branch

According to Besser (2008), retailers use a variety of formats to display their wares.
While some merchants use "power merchandising" tactics more than others, the overall
goal is the same: present the merchandise in an inviting and informative manner. Studies
show that consumers spend 15 to 20 percent more in stores they find to be well stocked,
pleasantly kept and "fun."

Below are some of the aspects that I discovered at TM supermarket Gweru branch when I
did my research.

Open invitation: Store layout begins outside the supermarket, a bit like 'kerb appeal'
when selling a home, Geary (2007). The front entry and exit points of TM
supermarket are very large and always open. This allows the customer from out side to
see what is being displayed and attract him or her into the supermarket.

Tendency to look right: Baumler (1995), argued that, it has long been known that
over 75% of customers tend to look right when entering a supermarket - it's simply the
way the world is. For this reason the area immediately to the right of the entrance and
the decompression zone is used to display special offers and promotional items. TM
supermarket also agree with this suggestion because their entrance is to the far left of
the building and to the right we have a vast of products.

Layout: Many times, the layout is designed to help customers move through the store.
The classic floor design is used at TM supermarket. It is a grid layout where aisles run
parallel and perpendicular to each other. This uses floor space well and simplifies
stocking. The customer wont feel like in a maze.

Flow and Appearance: The aisles at TM supermarket are so wide to such an extend that
three trolleys can pass each other. Wide, open aisles are nice because bumping into
shelving or other customers can be quite frustrating Carter (2008). Sometimes displays
are extended into aisles intentionally, which impedes passage but ensures prominence.

Positioning and Arrangement: TM supermarket uses vertical merchandising. Vertical


merchandising places like items together in a column, usually putting large things on the
bottom and small things at the top. Waters (2008) defined vertical merchandising as the
placement of merchandise from top to bottom on a fixture, rather than from side to side.
By presenting an assortment of merchandise vertically you will expose customers to a
greater variety of your assortment at eye level. And, since the customer is naturally
inclined to read at eye level from left to right, and buy at hand level, this technique looks
good and encourages purchases. Arrangement at TM supermarket is done in many ways:
style, price, color, size and so on, depending on what works best. For example drinks are
arranged according to their flavours.

Cross merchandising: is also used at TM supermarket. Cross merchandising displays


related items jointly, such as hanging bottle openers in the same area as the bottled
soda, Mitchell (2009). Cross aisle merchandising puts related items on both sides of
the aisle to keep related goods together. Items that complement each other are often
found close together to entice customers to buy more. One will fire find ladies wear
along with other cosmetics at both sides of the second aisle.

Stirring: Seasonally TM move the products that are being promoted on that specific
season to the front ends of the aisles. For example the Back to School promotion. Moving
merchandise can make it appear as though the retailer is changing inventory and bringing
in more stock than is actually the case. It can give an appearance of diversity and change.
Clearance racks may be used to pull customers through other lines of merchandise.

Endcaps, Dumpbins, and Cutcases are also used by TM supermarket: Endcaps are
displays at the end of an aisle, dumpbins are large hoppers full of merchandise, and
cutcases refer to merchandise in the original container. Feigenbaun (2008) noted that,
cutcases convey a low-budget, bargain-basement image. Endcaps and dumpbins are
usually used to highlight sale, sundry or seasonal items. They are changed frequently and
are intended to promote impulse purchases.

Essentials at the back: TM supermarkets hit upon the idea of placing the essentials, such
as bakery and butchery, at the back of the shop. This is in order to make people have to
walk past the rest of the produce, and heighten the possibility of impulse buys, in order to
get their necessities. Customers must walk past seasonal products and special offers to get
to the bakery and butchery. The technique maximizes the exposure of less commonly
bought goods

Point Of Sale: Whilst you are waiting to pay retailers often install Point Of Sale displays,
this is the case in TM supermarket who install racks of chocolate to tempt bored children
waiting with their parents. Some other small items are placed at the point of sale to
reduce the risk of shoplifting or for change.

Face-Out Merchandising: Face out refers to positioning the front of the merchandise
facing the customer Kizer and Bender (2007). With boxed product, the packaging
graphics usually have a good side -- a photo or colourful graphic to indicate what is
inside the box -- that makes a great face-forward presentation.

Face-out presentations have more buy-appeal, since the front of the product or graphic
enhancement on the box is usually more interesting and colourful than the "side face" of
the merchandise. Customers can also see the front of the product without having to
struggle to get the item from the shelf.

Reference
1. Baumler S (1995), Power Merchandising, retrieved from
www.lowauniversity.ac.uk
2. Besser T (2008), Product Positioning and Merchandising in the retailers outlet,
retrieved from www.discoveryarticles.com
3. Carter S (2008), Psychology of Supermarkets, retrieved from
www.indiangroceries.com
4. Feigenbaun E (2008), Things are Looking Up, retrieved from
www.scrantongillete.com
5. Geary D (2007), Merchandising for Sales and Profits: promoting impulse sales,
retrieved from www.impactvisual.com
6. Kizer and Bender (2009), How to Help Your Product Sell Itself, retrieved from
www.kizerandbender.com
7. Mitchell P (2009), Design a Better Retail Outlet, retrieved from
www.discoverdbr.com
8. Waters S (2008), Creating Attractive Displays, retrieved from
www.spaceupstairs.co.za