Al-Futtaim Retail Business College Foundations Of Merchandising Refresher Module

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 2 MERCHANDISING

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

4 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. Disorganised shop with obstacles 9. Replenishment during shopping hours 10. Nobody to ask about things 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 its decision making process  Understanding some theory about how the human brain interprets things when shopping can guide our decisions around merchandising  There are eight 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 pieces of information Chunk information Complex learned chunks 7

Use Visual Stimuli 8

Colour Coding On which side are the boys toys?

Shape Recognition To Theme

Key Learnings 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

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

16 Blocking

Exploit Peripheral Vision17

18 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 cannot find the anchor, they may miss the category Most effective when vertically blocked Help Shoppers With Anchor Brands

Using anchor brands increases sales By 6 - 8% on average Using anchor brands increases sales By 6 - 8% on average 20 And Direction Can Increase Sales

21 5. Help Shoppers To Not Deselect Items

Types of Barrier De-Selection The shopper does not interact with the category in the store De-Selection The shopper does not interact with the category in the store Selection The shopper interacts with the category (sees, picks up, compares) but does not purchase Selection The shopper interacts with the category (sees, picks up, compares) but does not purchase 22

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

25 Disruption Triggers Purchases

26 7. Help Shoppers Buy Adjacently

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

Information and Education Change Behaviour 28

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