Al Futtaim Retail Business College Content for the E-Learning Refresher Module Foundations Of Merchandising

Phases Of E-Module The Customer Purchase Funnel Availability & Visibility Shopper Irritations POSM (15 minutes) Basic Merchandising Principals 8 Methods To Helping Shoppers Shop (45 minutes) Using Shopper Psychology In Merchandising (15 minutes) Assessment

Total Target Market Aware Understand Believe Want Find Buy Like Prefer Intention To Purchase Trial Repeat Above The Line Point Of Purchase Experience The Customer Purchase Funnel 3 MERCHANDISING

Why is merchandising so critical? 75% + of purchase decisions made at The Point Of Purchase Mechanism of delivering a category plan to a retailer’s customer A way to maximise productivity of store assets i.e. space A way of maximising product availability The way of simplifying the shopping process for customers The most effective method of converting customers to a purchase

Three Pillars of A & V InventoryPositioningPresentation Availability and Visibility Ordering Stock Levels Out Of Stocks Store Flow Use of Brands (Signposts) Hot vs Cold Spots Displays / Equipment Communication Theatre

POSM POSM = Point Of Sale Material Types: Shelf Edging Display Stands Posters Banners Why do we use it: To make shopping experience easy To make shopping experience informative To draw attention and increase sales!

7 1. The trolley doesn’t run properly 2. Out of stock 3. Promotions are sold out 4. Waiting at the check out 5. No price tag 6. Impossible to bag shopping 7. Items not in the category they should be 8. Disorganized shop with obstacles 9. Replenishment during shopping hours 10. Nobody to ask things to Top 10 Shopper Irritations

Shopper Psychology  Merchandising can often be described as a science, as the reason that we layout and position products in a certain way is to ensure that the human brain can function easier in it’s decision making process  Understanding some theory about how the human brain interprets things when shopping can guide our decisions around merchandising  There are 8 key theories of displaying products in the store, and we call these the 8 Methods of Helping Shoppers Shop

The 8 Methods Of Helping Shoppers To Shop 1.Help Shoppers Focus 2.Help Shoppers Associate Usage 3.Help Shoppers Use Peripheral Vision 4.Help Shoppers With Anchor Brands 5.Help Shoppers To Not De-Select Items 6.Help Shoppers Get Disrupted 7.Help Shoppers Buy Adjacently 8.Help Shoppers With Information

1. Help Shoppers Focus 5-7 pieces of information Chunk information Complex learned chunks 10

Quiz You have 60 seconds to remember as many of the following as possible without writing any down 11

NDF BBC TDS DOG PFT GKQ MPW SOK JMB CAD OLA RFS XJW MOM ZTH JYK 12

See if you can recognise the word that appears on the next screen The human ability to focus 13

TELL 14

TELL 15

84% of Tesco shoppers know that yellow and red POS materials means ‘Promotion’ 16

= 17

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Use Visual Stimuli In What Section Of Ace am I in Now?

Use Visual Stimuli In What Section Of Ace am I in Now?

Use Visual Stimuli 23

Color Coding

Colour Coding Which Side Are Boys Toys?

Shape Recognition To Theme

Key Learning's Use Visual Stimuli but avoid too much Link messages to familiar concepts and formats Keep it simple Keep it relevant Use logical Colour recognition Retain brand recognition factors Use Shape recognition techniques

Room basedTask basedOccasion based Help Shoppers Associate Usage

29 Make Occasion Easy For Shoppers

Define Category By Occasion

Central Vision: sharp, straight- ahead vision Peripheral Vision: +30° either side of central vision 90° average field of vision Help Shoppers Use Peripheral Vision

33 Blocking

Exploit peripheral vision34

35 STORE ENTRANCE Brands Can Direct 4. Help Shoppers With Anchor Brands

70% of all purchases from a category are made via first fixating on the anchor brand If shoppers can’t find the anchor, they may miss the category Most effective when vertically blocked Help Shoppers With Anchor Brands

Using Anchor Brands Increase Sales By 6-8% On Average Using Anchor Brands Increase Sales By 6-8% On Average 37 And Direction Can Increase Sales

38 VIDEO: In This Clip, Count The Number Of Passes Made Between Each Team People rarely get this right so concentrate and get counting!

39 5. Help Shoppers To Not Deselect Items

Types of Barrier De-Selection – The shopper doesn’t interact with the category in the store De-Selection – The shopper doesn’t interact with the category in the store Selection – The shopper interacts with the category (sees, picks up, compares) but doesn’t purchase from it Selection – The shopper interacts with the category (sees, picks up, compares) but doesn’t purchase from it 40

If I’m only interested in hearts, I’ve deselected all the others, but find it quite difficult to conveniently shop what I want…wouldn’t the alternative be better?

Deselection vs selection 44

Category: +14% in this example Category: +14% in this example Source: Kantar Retail Help Shoppers Get Disrupted

Disruption triggers purchases46

47

48 Find The Green Square 7. Help Shoppers Buy Adjacently

49 But Where Were The Blue Triangles???

50 Either Side Of The Green Square!

Adjacencies

Instore Communication Navigation Find Information Persuade AdviseInspire / Sell 8. Help Shoppers With Information

Information and education change behaviour 53

The 8 Methods Of Helping Shoppers To Shop 1.Help Shoppers Focus 2.Help Shoppers Associate Usage 3.Help Shoppers Use Peripheral Vision 4.Help Shoppers With Anchor Brands 5.Help Shoppers To Not De-Select Items 6.Help Shoppers Get Disrupted 7.Help Shoppers Buy Adjacently 8.Help Shoppers With Information

Assessment

Total Target Market Aware Understand Believe Want Find Buy Like Prefer Intention To Purchase Trial Repeat Above The Line Point Of Purchase Experience Click on the 2 areas where merchandising is happening? 56 ANSWER

Arrange the 3 pillars of A& V correctly? Availability and Visibility Ordering Stock Levels Out Of Stocks Store Flow Use of Brands (Signposts) Hot vs Cold Spots Displays / Equipment Communication Theatre InventoryPositioningPresentation InventoryPositioningPresentation ANSWERS IN YELLOW

The photographs are examples of…… POTR POSM SOMP TOSM POBS

Using The 8 Methods To Help Shoppers Shop Match the descriptions with the correct theory of helping shopper shop: Using visual stimuli, color coding or shape recognition to help shoppers quickly identify a category, theme or product Help Shoppers With Anchor Brands Using products with logos that have high recognition to help navigate shoppers to a particular category Help Shoppers Focus Help Shoppers Associate Usage Help Shoppers Use Peripheral Vision Help Shoppers To Not De-Select Items Help Shoppers Get Disrupted Help Shoppers Buy Adjacently Help Shoppers With Information Creating room, task or occasion based display so that shoppers are able to visualize the product working We try to use vertical blocking to exploit this to its full potential We try to use vertical blocking to exploit this to its full potential Ensuring that we display products so that they interact with the category Ensuring that we display products so that they interact with the category Drawing the attention of shoppers by creating an unusual display that differs from the look of the adjacent products or categories Placing products that complement each other next to each other to tempt the shopper to buy something else Using POSM or signage with a purpose to navigate, persuade or persuade shoppers