The essence and objectives of merchandising

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The concept of the Moment of Truth (MOT) was first coined in the 1980s by Jan Carlzon, the CEO of SAS Airlines. The term refers to the key moments when a consumer forms an opinion about a brand.

Years later, in 2005, Procter & Gamble CEO A.J. Lafley took the concept further by introducing the concept of the First Moment of Truth (FMOT). This occurs when a customer first notices yahoo email list a product, whether in a store or online. According to Lafley, it takes literally 3-7 seconds for a person to form a first impression and choose between different products.

The essence and objectives of merchandising

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Once in the store, the customer approaches the desired shelf, quickly examines it and focuses on the product that caught his attention. Usually, this product ends up in the basket, even if other options are placed nearby.

Research has shown that about 80% of purchasing decisions are made in-store. However, consumers rarely study the characteristics; their choice is often determined by how the product is presented – this is the task of merchandising.

Merchandising is:

selection of assortment;

methods of product display;

layout of the sales area;

arrangement of commercial equipment;

information support;

pricing policy.

Thus, proper merchandising affects everything that contributes to creating a positive impression of the product in the buyer.

A merchandising specialist, or merchandiser, represents the interests of a brand in retail outlets. In large chain stores, you can find several such employees, each of whom works for his own company, which creates an element of competition.

The main goal of merchandising in a store is to make the product more noticeable among others in order to increase its sales. The main tasks of merchandising are as follows:

stimulation of purchases of a certain product;

strengthening loyalty to the brand and the outlet;

increasing product recognition;

increase in demand for certain items;

growth in sales volumes of specific products or brands.

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Types of merchandising
Merchandising includes various approaches to promoting products on the market, depending on their specifics and business goals. The main types of merchandising help to effectively interact with customers and increase sales.

Visual merchandising
Visual merchandising focuses on how packaging design and shelf placement influence demand. The basic principle of the method is that customers choose the product that immediately attracts their attention.

To achieve this, marketers work with various elements: colors, textures of the packaging, its shape, fonts and advertising texts. All this is aimed at making the appearance of the product stimulate purchase.

Visual merchandising

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The ideal packaging according to visual merchandising standards is one that immediately conveys to the buyer the key advantages of the product, its uniqueness and differences from competitors.

An important part of visual merchandising is the correct design of the retail space. Even well-designed packaging will not bring results if the products on the shelf are laid out in a disorderly manner or look unattractive.

Cross-merchandising
Cross-merchandising is the strategic placement of products that may be useful to the customer along with the main product. This approach reminds the customer of additional purchases that he or she may need. The basic principle of the method is “Show me what I forgot to buy.”

Examples of cross-merchandising:

meat products and spices, salt, vegetables, sauces;

beer and snacks such as chips, snacks, nuts, dried fish;

cigarettes and accessories - chewing gum, lighters, matches;

toothpaste next to brushes, dental floss, mouthwash;

shampoos, supplemented with balms, masks and hair care products.

Communication merchandising
The main goal of this type of merchandising is to build an emotional connection between the buyer and the brand, leaving the consumer with a pleasant impression of interaction with the product. Methods of attracting attention include presentations, questionnaires and surveys, as well as tastings, during which potential buyers can personally get acquainted with the product.

The main task of promoters is to create a comfortable atmosphere, evoking positive associations with the product in the client.

Let's give an example of communicative merchandising. Imagine that you are offered to taste ice cream of a new brand, say, "VkusTimo". A smiling girl-promoter, offering the product, adds pleasant emotions to the acquaintance with the brand.

Thanks to such interaction, you form a positive connection: a pleasant impression, delicious ice cream and the VkusTimo brand. The likelihood that you will choose this product in the future increases significantly.