Value/Fashion image – Presentation of the product influences image customer has regarding that product * Angles and sightlines – Customers view product at 45-degree angle and at eye level. Where a product is placed on shelves influences sales * Vertical color blocking – Display product in vertical bands of color
3. What guidelines should be followed in arranging individual items within departments?
Visual product placement is supported by different theories, including horizontal, vertical, and block placement. Horizontal product placement increases the concentration of a certain article for customers. Research studies have found that a minimum placement range between 15 centimetres (5.9 in)–30 centimetres (12 in) of one single product is necessary to achieve an increase in customer attention. This also depends on a customer’s distance from the unit. Vertical product placement puts products on more than one shelf level to achieve 15 centimetres (5.9 in)–30 centimetres (12 in) of placement space. Similar products are placed in blocks – brands, for example.
Commercial placement is determined by both market share placement and margin placement. Market share research companies like ACNielsen collect sales data for various products, and from this data, calculate the market share of a certain product in its market segment. Margin placement is determined by the profit margin of a specific item. Higher margin places a product closer to the front of the store where it is most likely to attract attention.
•To communicate how to set the merchandise
•To ensure sufficient inventory levels on the shelf or display
•To use space effectively (e.g. floor, page, and screen)
•To facilitate communication of retailer’s brand identity
•To assist in the process of mapping a store
4. Why is planogram a useful tool for locating items within departments?
It is a diagram or model that indicates the placement of retail products on shelves in order to maximize sales. Planograms therefore help dictate a retail store’s layout. The ultimate effectiveness of the planogram can be measured by sales volume.
Manufacturers often send planograms to stores ahead of new products. This is useful when a retailer wants multiple store displays to have the same look and feel. Often, a consumer-packaged goods manufacturer will release a new suggested planogram with their new product to show how the product relates to existing products.
5. What physical characteristics of a pharmacy influence its image and customers draw?
Good advertising and promotion work to bring customers in, but what happens once customers get into a store largely depends on the layout and design of
the store. Both play a huge role in how customers rate their experiences and whether they decide to buy, and if they return or recommend the store to others.
* Store design – Exterior design, ambiance, lighting
* Merchandising – Fixture selection, merchandise presentation, visual merchandising * Store planning – Space allocation, layout, circulation * Visual communications – Retail identity, graphics, point-of-sale signage
6. What are some commonly employed visual merchandising?
Lead them to temptation. Department store design incorporates a gauntlet of goodies to stimulate impulse buys. Cosmetics, a store’s most profitable department, should always be at the main entrance to the store.
It’s all in the display. When an item, such as a watch or a scarf, is displayed in a glass case, it implies luxury. An item in a glass case with a lot of space around it implies real luxury.
“Bazaar? Behavior”. Even “high fashion” stores aren’t above using the “dumping” method to display gloves, leather goods, scarves and other small items the same way bargain stores do. These bins have a way of suggesting a “good buy”.
Color is king. Retailers believe consumers are more apt to buy clothes that appear in full size and color assortments.
Suggestion positioning. Once the customer has already purchased one item, it’s easier to sell an additional item. Thus, apparel retailers strategically place impulse buys like hair bows and costume jewelry by the cashier the same way supermarket checkouts display candy and magazines.
7. What are the characteristics of effective point-of-purchase displays?
Marketing materials or advertising placed next to the merchandise it is
promoting. These items are generally located at the checkout area or other location where the purchase decision is made. Well done point of purchase (POP) displays will draw consumers to one product over another, or give one store the appearance of being more organized and clean.
For example, the checkout counters of many convenience stores are cluttered with cigarette and candy POP displays. Dynamic POP displays can vary greatly in size, from a 6″ shelf-mounted LCD to 42″ (or larger) plasma and projection displays, helping deliver targeted marketing content to shoppers at the point-of-decision
8. What factors should be considered when choosing items to display?
Specialization. The more you devote space to one product category on a cart, the bigger the impact. Can the item succeed on the cart without having to bring in other items?
Sellability. Can the items be sold on a cart and can you and your team sell them? There are certain items you need to demonstrate aggressively. If you and your team are not outgoing in your approach with customers, you need to stay away from these items.
Presentation. Will the item look good on the cart? Will the customer have enough variety to choose from for this particular item? Is there enough space to display and stock the item? Presentation is key to stopping customers and convincing them to make a purchase.