Merchandising

Merchandising is a marketing element which includes different sales techniques such as determining the location of a store, its interior layout, and presentation of products available in self-service.

Merchandising enables stores to adapt their assortment to the ever-changing needs of the market, and to different brand points of sale in order to sell the most merchandise possible in the most appropriate way.

The aim of merchandising is to increase customer satisfaction and sales, and thus the value of a company, its services or products.

The first step in merchandising is to analyse and understand buying behaviour according to the service, including the types of potential clients, their expectations, and their attitudes in store. Understanding the target makes it possible to determine the range of products to be promoted: this is known as “assortment”.

Then comes basic merchandising. This second step is based on the conceptualisation of traffic flows within the sales space. This involves the layout of the sales surface area, from definition to signage, the direction of movement, etc.

Finally, the third and last step is positioning the selected products in the sales area to increase their visibility, with the choice of position, eye level, positioning by colour and everything to do with visual merchandising (overall aesthetics).

In addition to increasing sales and indirectly increasing brand turnover, merchandising transforms a sale into a stand-alone experience for the client. A client who is satisfied during and after purchase is likely to come back and buy more (increase in average basket), bearing in mind that it is more interesting for a company to build customer loyalty than try to acquire new clients.

Moreover, merchandising gives value to a company and the products it sells. Perceived value is essential in the life of a company, especially if it wants to last over time. No consumer wants to buy a product which they perceive as being poor, from a company with low perceived value. The image of a company must, therefore, be positive, unique, and add value for the client who uses the product. Merchandising is a company’s showcase, the image that it sends to the consumer.

Finally, merchandising makes it possible to measure a company’s sales, to analyse its market share and the value of its products. Merchandising sets objectives and fine tunes sales (promoting a product being launched, linear relocation, facing adjustment).

Regardless of the type of store or the products it sells, good merchandising must respect certain basic principles:

• Access to the store must be easy (wide entrance and space to move about) and the window display must be attractive. The window is the first thing the client sees, the thing that pushes them to enter and sets the tone for their visit.
• Store signage is essential. Once inside the store, the client must be able to move about freely, products being promoted must be strategically placed and indicated by clear, explicit signage, visible from a distance.
• Ambiance is another element of good merchandising and, therefore, sales. Consumers must feel confident during their pathway within the point of sale. This includes what is known as “sensory marketing”, which aims to engage the client’s five senses in order to push them to buy.
• To ensure an efficient client pathway, a reception area, where clients can ask for information and advice should be available. Store staff and equipment must be adapted to clients and their demands. The reception space can be at the checkouts (a strategic point), and must be easy to access and close to the entrance.

Merchandising promises to respond as best possible to the expectations of three main actors in sales:

• First of all, the consumer, who wants to benefit from a unique client experience with a large choice of products available to them, within a recognised and highly performing brand. The setting for their purchase must be optimal.
• Secondly, the producer, who wants to increase sales of their products by benefiting from attractive premises and layouts to offer a wide range of products and references for good profitability.
• And finally, the distributor, with a view to optimising productivity within the store through product presentation, developing its clientele, and increasing loyalty through customer satisfaction.