MERCHANDISING

DISTRIBUTION CHANNEL
FIXTURES

DIVYAM SRIVASTAVA
JAI KHATRI
 WHAT IS MERCHANDISING ?

 The activity
of promoting the sale of goods at retail.
 Merchandising activities may include
display techniques, free samples, on-the-
spot demonstration, pricing, shelf talkers,
special offers, and other point-of-
sale methods.
 Types – Retail merchandising, Visual
merchandising, online merchandising
MERCHANDISING MANAGEMENT
 Develop strategies to ensure the right
product
 Is available at the right place
 At the right time, in the right amount
 At the right price
 To satisfy the needs of the target customer

MERCHANDISE MANAGER

 Responsible for particular line of

merchandise
 4 basic duties – planning, directing,
coordinating and controlling
 FACTORS AFFECTING
MERCHANDISING MANAGEMENT
 VISUAL MERCHANDISING

 Art of presentation – puts merchandise in

focus
 Educates the customer, creates desire to buy
 Its a presentation of store
 4 key elements – Store front, layout,
interior, display
 Involves skill, creativity, lighting, props,
interiors, etc
 Importance – for self service retailing,
increased sales, profit, expansion of store,
corporate image
 WHAT IS DISTRIBUTION?

The process of getting products

from production to the
consumer
 The Two Components of
Distribution

 Selecting, developing and managing

distribution channels
 Physically distributing goods and services
through those channels

Problems in doing these things:

 Which channel to select? Advantages and

Disadvantages
 Logistics – how does the product
physically get there
Distribution Policy

 Policy regarding how a business wants its

products distributed to consumers
 There are four types
Intensive Distribution
 try to get the product sold in as many
different places as possible

 Advantages
- Increase sales
- Increase recognition

 Disadvantages
- Lack of control of retail locations
- Intensive competition

- Product examples: Coke, Gum, others?

Selective Distribution
 Try to control the distribution of
product but not exclusively
 Advantages
 Some control over where product is
sold
 Can still cover a large area

 Disadvantages
 Legal implications – purchase
minimums
 Missing out on possible sales
Exclusive Distribution

 Exclusive distribution contracts

with one or two businesses in a
certain area
 Advantages
 Control over image
 Favourable agreements
 Disadvantages
 Can severly limit sales
 Geographical problems
Integrated Distribution

 When business owns both

distribution and manufacturing
 Advantage
 Total control of product

 Keep sales revenue

 Disadvantage
 Handle all expenses

 Handle all difficulties

Different types
Types of Channels
 Direct Channels
 Product goes directly from producer to the
consumer

 Examples
 Trade Services
 “Lemonade stand”
 Integrated distribution
 Marketing agents
Types of Channels
 Indirect Channels
 Use distribution intermediaries who make a
profit off holding on to the product
Indirect

 Examples
 Importers
 Foreign made product goes to
exclusive importer who sells to retail
outlets in a geographical area
 Wholesaler
 Buy products from domestic
manufacturers and sell them to retail
stores and other businesses
 Retailers
 Sell product to consumers
Advantages of the Wholesaler
for the Retailer
 Buy in bulk – lower costs per unit
 Warehousing – hold on to greater amount of product in
case needed
 Risk bearing – retailer has less risk for owning large
quantitiy of a product with unknown or changing
demand
 Financing – retailers don’t have to borrow money to pay
for extra stock, they can use previous sales of smaller
quantities to buy more
 Buying – saves the time and effort of finding mulitple
suppliers
 Transporting – Wholesalers usually deliver without
charge (in the price of the product)
 Managing – Wholesalers will provide advice on
inventory management and play a major role in
controlling inventory levels for their customers
 Promoting – wholesalers pass on free promotional
materials
 Providing market information – they know whats hot,
what not and what is on the horizon
Retailer success

 The five “Rights”

 The Right Merchandise
 The Right Price
 The Right Time
 The Right Place
 The Right Quantities
Specialty Channels

 Any distribution that does

involve a retail store
Types of Specialty channels
 Vending machines

 The Internet

 Catalogues

 Telemarketing

 Television Sales
 Fixtures
 Things that woo and win the attention of
consumer.
 Any thing that create an environment to
attract and keep the attention of shopper.
 Ant thing that add convenience to the
consumer.
Types of fixtures
 Straight Rack – long pipe suspended with
supports to the floor or attached to a wall.

 Gondola – large base with a vertical spine or

wall fitted with sockets or notches into which a
variety of shelves, peghooks, bins, baskets and
other hardware can be inserted.

 Four-way Fixture – two crossbars that sit

perpendicular to each other on a pedestal
 Round Rack – round fixture that sits on
pedestal
 Other common fixtures: tables, large bins, flat-
based decks
Wall Fixtures
To make store’s wall merchandisable,
wall usually covered with a skin that is
fitted with vertical columns of notches
similar to those on a gondola, into which a
variety of hardware can be inserted
THANK YOU