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First Impressions count
With over 10 years in the retail environment I have spent many an hour prior to a vital meeting making sure the Windsor knot in my tie was straight and my hair was gelled at just the right 45° angle. You learn early in your career as a sales professional that most decisions are made within the first 10 minutes of a meeting, so first impressions really do count!
Like many teenage boys I was educated by my mother not to make the mistake of “judging a book by its cover”, and I was even given the “beauty is only skin deep” sermon by my grandmother. The reality is that while this may be sound relationship advice, the retail environment is a completely different story. Here, first impressions do count, and quite often the true ‘personality’ of the product is only revealed later when the customer is unwrapping the beautiful packaging.
Long-term relationships
The first question any supplier and retailer should ask themselves is: “What do we want to achieve from the merchandising?” I am sure the answer from both parties will be “Margin” initially, but this should be preceded by the words, “Long term”. I have rarely found in-store merchandising that makes sense in the short term. The cost to the rep of implementing a new POS unit is huge in itself; add that to the cost of the product, and most suppliers would wince at the thought. However, suppliers need to look at that ‘long term’ goal of in-store merchandising and the opportunity it presents to build the brand.
Constant preening
I recently spent a weekend at a trade show where a competitor gleefully told me how he had halved the field sales team and was now splitting the UK between two field reps. I masked my smile as I thought about the impossible task facing the poor reps. It’s a sad reflection of the economic climate when suppliers shed weight in the field – my personal opinion is it often only contributes to their downfall. While field reps are expensive, they are vital to making sure products continue to shine in store, like the day they were first installed.
The biggest problem with in-store merchandising is the implementation and up keep. Let’s not forget how expensive point-of-sale merchandising can be. I also believe it’s vital to hand deliver all POS material initially, rather than getting it delivered. That way the rep can walk the staff through the set-up and explain how it should be continually re-merchandised. It is then vital that the rep makes considerable efforts to visit the store and make sure the units are being utilised properly.
The great benefit to the rep is the experience of the staff in store. During one particular promotion for a gift set, a shop assistant informed one of our reps how moving the unit by the ladies footwear section had increased sales by 80%. The rep then rolled it out in the other 200 stores in the area and the net result was a 70% uplift on the previous week. Without the ‘ears’ in the field, would we have had that insight?
Practise makes perfect
How can you build a successful merchandising strategy? The short answer is lots of practise! As a company we have invested in merchandising campaigns over the years, and it is crucial not to lose sight of the fact that ultimately it’s the consumer who decides how successful the campaigns are.
Reviewing objectives is important – and margin is obviously high on the agenda – and so often a greatly merchandised section can bring repeat business, so it is an investment in the future. It is important to continually re-merchandise after the initial launch – and it’s vital reps get feedback on how successful the campaign has been.
However good a product may be, poor merchandising execution can leave you with a full warehouse. Customers will always judge a book by its cover!
