In-Store Merchandisingwith Larry Belluscio,
Director of Equine Business
2015 Kalmbach Feeds, Inc. Dealer Conference
Don’t be an “inconvenience store”
The key is:MERCHANDISING
2015 Kalmbach Feeds, Inc. Dealer Conference
Why merchandising?EASY ANSWER:
INCREASED PROFITABILITY
• 50% of customers make purchases because they remember seeing it DISPLAYED.
• 48% of customers purchase one or more items on IMPULSE.
2015 Kalmbach Feeds, Inc. Dealer Conference
Today, we’ll review:
• How merchandising increases profit potential
• Why image matters
• How to perform audits and surveys to evaluate your customers and priorities
• Benefits of basic image upkeep
• The different types of merchandising displays and their effectiveness
• The importance of printed promotions
• How to include and encourage your employees
2015 Kalmbach Feeds, Inc. Dealer Conference
Overall Promotional Strategy
Incorporate merchandising in your overall promotional strategy:• Presentation of products and services
• Outside appearance
• Store organization
• Displays
• Personnel (expertise, helpfulness)
• Economics
2015 Kalmbach Feeds, Inc. Dealer Conference
Getting Started with Merchandising
• Remember there is no “right way”
• The goal is to project the high value of your store
• Think about your store’s image
• Perform self audits
• Develop an in-store survey
2015 Kalmbach Feeds, Inc. Dealer Conference
Projecting HIGH value
The goal of merchandising is to project the overall high value of your store. Including:
• Outside appearance
• In-store salespeople
• Displays, promotions, inside appearance
2015 Kalmbach Feeds, Inc. Dealer Conference
Kalmbach Team:Here to Serve You!
What is image?
Your store’s image is two-fold:
1) The IMPRESSION your customers have about your store when they walk in
2) The MENTAL picture your store brings to mind when customers aren’t actually on-site
Are your customers’ actual and mentalpictures the same?
2015 Kalmbach Feeds, Inc. Dealer Conference
ECONOMICS“How much am I willing to pay?”
“Am I being charged a fair price?”
“What are other stores charging?”
“What does this store offer that I
can’t get elsewhere?” TRAFFIC PATTERNS“I’m glad I saw these shoes, I really
need a new pair!”
“One thing that’s nice about this store
is you can always find your way
around.”
“The kids always want to head for the
animals in the back room.”
SPACE
ALLOCATION“They’re never out of the products I like
to buy.”
“I always know where I can get a cup of
coffee and doughnut in the morning.”
“No matter what season it is, I know
they’ll have what I want.”
IMAGE“I really enjoy shopping here.”
“This store has everything I need,
I can always find what I want.”
“There’s always someone willing
to help me.”
MERCHANDISE
PRESENTATION“These rabbit starter kits are a great idea; it’s nice to
find everything I need in one spot.”
“I like the displays here; there’s always something
new to see.”
“I like those new bins for bird feed; I can measure out
exactly how much I want.”
“That new warehouse is really convenient; I can pull
right up to the loading dock.”
2015 Kalmbach Feeds, Inc. Dealer Conference
SIGNS, LIGHTING,
PROMOTION“This place is always bright & cheerful looking.”
“I hate having to hunt for something. The new aisle
and department signs are great!”
“It sure is nice to be able to see the price,
especially if they’re having a sale.”
“I really appreciate that they let me know about
sales and give me coupons.”
What is your store’s image made up of?
• Physical appearance
• Merchandise presentation
• Cleanliness
• Product Selection
• Service
• Personnel
2015 Kalmbach Feeds, Inc. Dealer Conference
Performing a Self Audit
Need Outside Help• Customers• Other Business People• Focus Groups• Can be done in-store
Who is your customer?• Monday-Friday?• Where do they live?• What do they buy from you?• Why do they buy?• How would they improve the store?
2015 Kalmbach Feeds, Inc. Dealer Conference
Performing a Self Audit
What do non-customers think of you?• Do they know what you do?
• Why don’t they shop with you?
Employees• How would they improve the store?
• How well trained are they?
Strengths/Weaknesses• Create competitive advantage
• List of improvements
2015 Kalmbach Feeds, Inc. Dealer Conference
Performing a Market Audit
Who are your competitors?• What do they look like?• How do customers feel about them?• How are they priced?• Hours?• Go shop competitors
What is your market?• Demographics• Traffic patterns• Local sources will have this
Make a list of areas you can capitalize on• Related areas• New departments
2015 Kalmbach Feeds, Inc. Dealer Conference
Performing an In-Store Survey
Be sure to have a county map near the survey table.
2015 Kalmbach Feeds, Inc. Dealer Conference
Let’s Get to MerchandisingSetting up your merchandising displays
2015 Kalmbach Feeds, Inc. Dealer Conference
Consider Impulse BuyersImpulse buyers tend to:
• Stay in the store 30% longer
• Buy half again as many items
• Spend about 27% more money
2015 Kalmbach Feeds, Inc. Dealer Conference
Humans are TACTILE
We like to TOUCH the fruit before we buy.
2015 Kalmbach Feeds, Inc. Dealer Conference
Lighting
• Your lighting should be bright enough that customers can easily see merchandise.
• Better lighting can reveal “trouble spots” that can be improved, such as:
‐ Dust
‐ Worn or dirty paint
‐ Broken tiling or linoleum
‐ Damaged displays
• Keep a watchful eye out for these trouble spots and FIX THEM!
2015 Kalmbach Feeds, Inc. Dealer Conference
Get Attention
• Eye catching, unusual displays
• Live animal exhibits
• Veterinary days
• Customer appreciation days
2015 Kalmbach Feeds, Inc. Dealer Conference
COLORFUL Price Tags
Price Tags, Labels and Colors are IMPORTANT!
Price tags should be:• On every item• In the upper right hand corner• Bright colors, easy to see
Price tags increase profitability.• Customers don’t need to wait on a
salesperson.• Check out is faster and easier.• Sale prices can be clearly marked
by item.• Sale tags can be removed.
2015 Kalmbach Feeds, Inc. Dealer Conference
Department Signs
EQUINE
CATTLE
FENCING
MEDICAL
BEDDING
SMALL ANIMAL
2015 Kalmbach Feeds, Inc. Dealer Conference
Sales Increase from Merchandising Techniques
254043
676879
112131
229540
0 200 400 600
"Special" Price Signs Regular Price
Counter Displays
Dump Bins
Cross Merchandising
Special Price Stickers on Sale Items
Displays in Aisle
Partial Endcap No Sign
Partial Endcap Price Sign Only
Partial Endcap Price Sign & Benefits
Full Endcap Power Display
2015 Kalmbach Feeds, Inc. Dealer Conference
End Cap Displays
• Feature new products
• Seasonally correct merchandise
• Discount promotional items
• Sales can increase OVER 500%!
2015 Kalmbach Feeds, Inc. Dealer Conference
Vertical Displays
• Provide a uniform appearance
• Enhance the selling experience
• Makes it easy for your customers
• Makes it easy for you!
2015 Kalmbach Feeds, Inc. Dealer Conference
Recognizing Hot Spots
Hot spots deserve merchandising ATTENTION• Prime source of impulse purchases
• Should be spotless
• Should be well stocked
• Should be changed regularly (every 2 weeks)
• Salespeople should be prepared to assist customers
By the counter
In the drive-thru
Center of the store
2015 Kalmbach Feeds, Inc. Dealer Conference
Shelving Locations MATTERS!
Most Effective: Eye Level
74% as Effective: High
57% as Effective: Low
2015 Kalmbach Feeds, Inc. Dealer Conference
Sell Product, Not Pegboard
2015 Kalmbach Feeds, Inc. Dealer Conference
What about feed?
• Feed lives on the retail floor• Must be allocated space
• The product must be signed and priced
• Big displays = big results• Wimpy = wimpy
• Rotate your displays
• Placement of displays is critical
2015 Kalmbach Feeds, Inc. Dealer Conference
Your Counter Area
• Make sure the counter area is big enough to service the types of merchandise you sell and your customer volume
• Be sure the counter space is well-staffed, neat and stocked with “easy to buy” items
• Raise or elevate the counter area
• Implement an easy check out system
2015 Kalmbach Feeds, Inc. Dealer Conference
Face to Face Merchandising
• May be one of the most important tools in your merchandising toolbelt
2015 Kalmbach Feeds, Inc. Dealer Conference
Printed Promotions
• Prioritize the information1) Product Name
2) “Special” “Sale”
3) Amount or size (50 lbs.)
4) Price
• Add a benefit: it can increase effectiveness of the sign/flyer by almost 100%!
• Be sure your designs are BALANCED
2015 Kalmbach Feeds, Inc. Dealer Conference
Making it all happen
• Knowing and doing are often a few steps apart
• Use the Image Checklist
• Decide who is responsible for what
• Devise chore lists
• Develop performance goals
• Set up a competitive atmosphere between departments
• Make sure that employees know what is expected
2015 Kalmbach Feeds, Inc. Dealer Conference
In conclusion…
• Merchandising increases profit potential
• Think about image first
• Perform audits and surveys to evaluate your customers and priorities
• Lighting, cleanliness and signage go a long way
• Evaluate what your most effective merchandising display is and become an expert at using it
• Don’t forget printed promotions
• Include and train your employees for everyday image upkeep
2015 Kalmbach Feeds, Inc. Dealer Conference
Recommended Reading
1,001 Ideas to Create Retail ExcitementBy: Edgar A. Falk
1,001 Ways to Reward EmployeesBy: Bob Nelson
2015 Kalmbach Feeds, Inc. Dealer Conference