If your products are sold off the shelf at retail, you know retail execution starts with merchandising. Merchandising can be a powerful tool that benefits your brand far more than simply making sure shelves are neat. A great merchandising strategy can help not only boost sales, but also improve your brand recognition and relationship with retailers.
Read on to learn more about the three merchandising strategies that can give your brand a competitive edge on the shelf.
This form of strategic merchandising is associated with items that typically have a higher selling price, and hence a higher gross profit margin. Such products usually have a high stock turnover and are often bought as impulse purchases. They also have a perceived value that justifies their more expensive price point.
In this classic example of cross merchandising, Grillo's Pickles secured a secondary placement alongside the store's potato chips to encourage snack sales for an upcoming football game.
Turf defending is a type of merchandising intended to protect market share from a known competitor (or competitors) in the same category, as well as maintain customer loyalty. It’s ideal for frequently purchased items that have a wide customer base. There is more risk assumed with this tactic than others because of the high margin investment that it demands.
This beef stick company highlighted heavy price cuts in this display, drawing in shoppers who might otherwise have selected their competitors from a nearby shelf.
This method is concerned with promoting a brand’s image in regards to quality, variety, price, usability, or presentation. It offers a more long-term solution to brand building.
DrinkMaple's pop-up shop focused on educating customers on a category they might not already be familiar with, while pushing for immediate purchases with a buy-one-get-one deal.
Merchandising efforts can be win-win for both brands and retailers, as both parties enjoy a lift in sales, thus strengthening retailer-supplier relationships. Moreover, a carefully-planned merchandising strategy is always tied to a specific objective, therefore allowing suppliers to more closely track success in the retail environment and make tweaks where necessary.
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