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Kyle DorflingMay 7, 2015 12:44:00 PM1 min read

Merchandising: It's about stimulating in-store sales

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It’s all about stimulating in store sales

Merchandising isn’t just the manual task of getting product out of boxes and onto shelves. There is much more to it. 

What merchandising really is:

In its most raw definition: any practice or activity which contributes to the sale of products to a retail consumer. Most significantly merchandising refers to the variety of products available at a store and then displaying the variety of products in such a way that it stimulates interest and entices customers to make a purchase.

If merchandising is all about enticing customers to buy more while in store then unpacking each merchandising element is definitely worthwhile:

Product design

Product design is usually carried out by suppliers. Suppliers actively analyse category data to find opportunities for new product introductions. When an opportunity is spotted, the supplier (sometimes the retailer), begins designing a product to meet consumers needs.

Product selection

Product selection or assortment planning is all about deciding which products will be made available to which stores and when. If retailers get this one wrong then consumers will shop elsewhere.

Packaging

We are all guilty of this one. We will often opt for one product over another mostly because of it’s irresistible packaging (even though the contents are almost exactly the same and the product is more expensive).

Pricing

Deciding on the pricing for a product should be guided by data. Winning pricing strategies are near impossible without considering things like discounts, rebates, trade promotions, and cost to serve.

Product display

Great product displays are usually guided by data and logical product flows. Products that perform well get additional shelf space. After that products are laid out in a way that makes shopping convenient for consumers. 

Product discounting

Product discounting is closely tied into price and promotion planning. Suppliers often get involved with retailers eg: buying prime retail space for set periods of time to promote their products and gain brand exposure.

 

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Kyle Dorfling

Kyle joined DotActiv in 2009. He gained experience across multiple facets of the business before his appointment as Acting CEO in 2021.

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