Influence of Merchandising on Sales Nikita Tulupov Department of Commodity Analysis and Trade

Outline: 1.The notion of merchandising and specifics of its use. 2.Methods of using merchandising in shops. 3.Using merchandising in practice.

Merchandising is any practice which contributes to the sale of products to a retail consumer. At a retail in-store level, merchandising refers to the variety of products available for sale and the display of those products in such a way that it stimulates interest and entices customers to make a purchase

In retail commerce, visual display merchandising means merchandise sales using product design, selection, packaging, pricing, and display that stimulates consumers to spend more. This includes discounting, physical presentation of products, displays, and the decisions about which products should be presented to which customers at what time.

Use of the term “Merchandising ” In Eastern Europe, particularly in Ukraine, the term "merchandising“ is commonly used within the trading industry and denotes all marketing and sales stimulation activities around PoS.

PoS (point of sale): Design Creation Promotion Care Training of the sales staff

In Asian countries, this term is more synonymous with activities right from sampling an idea conception to dispatching of the shipment. It is a job description that involves leading and working with different departments within the organization, suppliers and buyers to deal with timely deadlines and accepted quality levels.

Methods of using merchandising in shops 1.Atmospherics 2.Light 3.Music 4.Scent

Atmospherics Atmospherics should all coordinate with each other to create a positively influence the consumer’s shopping experience and buying decision-making process.

Light The lighting inside a retail store can be used strategically to highlight products on display or to create a comfortable environment for consumers. Atmosphere and light of a retail store is significant as it was found that the mood of a customer will affect their buying behavior.

Music The music played within a store can promote a brand’s image, and can also aid consumers into making purchase decisions. Having music, which is popular within the target market can also encourage consumers to linger in the store longer.

Scent Scents can also trigger emotional responses for example: 1.Lavender, basil, cinnamon orange– relaxing, soothing, calming, and reduces anxiety 2.Peppermint, thyme, rosemary, grapefruit, eucalyptus – energising, stimulating, increases arousal and productivity 3.Ginger, chocolate, cardamom, liquorice – romance 4.Vanilla – comforting and calming 5.Black pepper – sexually stimulating

Effects of merchandising use In 2015 the store “Candy Land” after refurbishment started to utilize the most useful merchandising methods : 1) Scent 2) Music 3) Light 4) Atmospherics. It has allowed increasing the number of clients by 25% and constant growth lasted for 2 months.

Conclusion Correct use of merchandising stimulates interest and entices customers to make a purchase. Use of merchandising helps to increase the number of clients and increase the store’s profit. Having a unique scent, light, colours in a store can differentiate the brand from others.

References V. Kumar (2008). Merchandising. p