Merchandising

 Retail stores have 3 distinct aspects:

• Design (meaning the premises)

• Merchandising (whatever you put in them)

• Operations (whatever employees do)

-Paco Underhill; Envirosell

 In the broadest sense, merchandising is
any practice which contributes to the sale of
products to a retail consumer.

 At a retail in-store level, merchandising

refers to the variety of products available for
sale and the display of those products in
such a way that it stimulates interest and
entices customers to make a purchase.
 Merchandisers work very closely with Buyers
and determine range of goods to be sold
 When to buy them
 Their price
 How they will be presented
 Merchandiser responsible for range of
merchandise
 Merchandiser could be responsible for
promotion, display, sales forecast and stock
levels
Merchandising activities may include –

 display techniques,
 free samples,
 on-the-spot demonstration,
 pricing,
 shelf talkers,
 special offers,
 and other point-of-sale methods.
 According to American Marketing
Association, merchandising
encompasses "planning involved in
marketing the right merchandise or
service at the right place, at the right
time, in the right quantities, and at the
right price."
Retail Merchandisers need to understand all
the buying systems related to:
• Buying
• Selling
• Transportation
• Warehousing of merchandise
Skills and Qualifications required of Merchandiser
 Sound judgement
 Decisiveness and maturity
 Ability to cope under
pressure
 Tough, business like
approach
 Absolute integrity
 Excellent communication
skills
 Negotiation skills
 Eye for detail
 Excellent numerical skills
 Ability to interpret data and
figures and make commercial
decisions based on them
 Good I.T. Skills
 Be self motivated
 Have the ability to rise to a
challenge
Commodity
products
with similar
package
sizes are
best
displayed in
one, easy
shop
category.
Industry leading
brands spend
considerable
dollars promoting
their products.
Good store
merchandising
takes advantage by
reinforcing this
message in store.
Modular display
components
allow retailers
the flexibility to
merchandise
many different
products in one,
easy-to-shop
area. This leads
to
complimentary
(and profitable)
sales.
 Point – Of – Purchase is the most critical component of
any successful marketing campaign because it exist at
the point of ‘convergence’.
 Few Examples of POP Displays-

 shelf edging
 dummy packs
 display packs
 display stands
 posters
 Banners
 Shopping Baskets
 Signs
 Shelf Stalkers
 Shoppers only have 2 hands – those who
use baskets buy more – period!
 Shoppers don’t necessarily need a
basket at the front of the store.
 They should be spread around, available
without stooping.
 Consumers don’t seriously consider
purchasing until they have browsed a bit.
 Make sure your baskets are appropriate
for the merchandise going in them.
 Typically, shoppers position themselves
in the center of one aisle or location and
begin reviewing a 4’x6’ section at slightly
below eye-level, close to the product that
has the greatest visual contrast - Tactical Insight Group
 Research has shown that allocating more
shelf space to memorable brands is not
as effective as better visual presence –
even for less noticeable brands.

 Productplacement on a shelf has shown

to be more effective sales tool than the
actual numbers of product packages
showing – Measuring the Value of Point-of-Purchase Marketing with
Commercial Eye-Tracking Data..
 Allows you to stand
out in crowded
farmers market.
 Simple &
inexpensive
 Label Products
 List Prices
 Offer Suggestions,
entice
 Keep it Consistent!
 Use re-useable
blackboard or
plastic signs for
prices
 Higher quality =
longer life
 Shade, shade, shade
 Keep delicate fruits,
perishable items on
ice or in coolers
• In transit
• On display if possible
• Flowers in fresh water
at all times
 Change colors and
hues to reflect the
season.
 Blues & yellows in
summer. Lavender
and sage in spring.
Fall use golds,
oranges, reds, earthy
colors.
 Keep storage items
and trash in truck to
avoid clutter, etc.