Module 2 MERCHANDISING PRESENTED BY: MIKE LANE Grote 101 Module 2 MERCHANDISING PRESENTED BY: MIKE LANE

Mastery Statement In this module you will learn the Grote merchandising system and be able to identify and use the various components that are available Including POP (Point of Purchase) POS (Point of Sale) POG (Plan-O-Grams) Packaging Store maintenance Trade shows Literature Websites

Background Knowledge Traditional Automotive Market is comprised mostly of: Automotive warehouses using the 3 step distribution method Heavy Duty Market is composed of: Heavy Duty Distributors, OE dealer supply networks and company owned groups using mostly 2 step distribution

Background Knowledge Catalog the first page of the index lists the part number structure for aftermarket parts This includes the breakdown of all 3 areas of product identification within the part number but also the most important for this module, the suffix that identifies pack type

Packaging Grote has three basic types of packaging Bulk Poly Bag Retail Pack

MODEL NUMBER INDEX PRODUCT CATEGORY COLOR OR FINISH SUFFIX INDICATES PACKAGING TYPE -1 DISPLAY -3 BULK -4 PAIR PACK -5 RETAIL,CLAM SHELL, WINDOW BOX MODEL NUMBER INDEX

Part Number Information PAGE 4 PRODUCT NUMBERING SYSTEM GUIDE CONTAINS 5 DIGITS OR ALPHA FOLLOWED BY A HYPHEN THEN SUFFIX IS SINGLE DIGIT IF LISTED SHOWN ON TOP OF PAGE 4 IN CURRENT CATALOG THE FIRST 2 DIGITS OR ALPHA CHARACTERS INDICATE THE PRODUCT CATEGORY THE FIFTH DIGIT DENOTES THE COLOR OR FINISH OF THE LIGHT THE SUFFIX AFTER THE HYPHEN DENOTES THE TYPE OF PACKAGE THE PRODUCT IS AVAILABLE IN GROTE PART #45812 IS A RED CLEARANCE LIGHT BASED ON THE FIRST 2 DIGITS. (45) AND RED BASED ON THE FIFTH DIGIT THIS IS SHIPPPED IN POLYBAG. #45812-3 (-3 BULK) WOULD BE SHIPPED TO THE DC IN A BULK PACK OF 50 PCS. AND COULD BE SOLD INDIVIDUALLY BY THE DC.

Grote Poly bag Tri Lingual Description UPC Barcoded package Slotted hole for hanging on hook

Grote Retail Pack Tri Lingual Description Line art Slide Lock Package Ease of access Resealable

Grote Retail Pack Some packages are full color on the back They offer the same information and comparisons Actual working conditions are highlighted

Grote Bulk Pack Distributor buys in full cases Product shipped without further packaging Product is high usage Baskets or bin boxes used to merchandise in store front area

The Total Package For Automotive Market 6 Steps to more efficient lighting sales Merchandising Plan O Grams Exclusive Product Literature and Catalog support Know How training Guaranteed Changeover Process

Merchandising How will the sale be created? The branch/store needs to show the product Ease of choice Promote the current products Impress upon the customer that they stock Grote lighting products Improve inventory movement and grow sales

Update POG State of the art software is used by Grote to develop professional POGs for branch/storefronts The pogs were developed for retail and polybag assortments for merchandising The guide is available at grote.com under the merchandising link Concentration on updating to the LED product offering is recommended

Merchandising 12’ POG PICTURE 12’ LAYOUT

Light Emitting Diodes in Product Mix For the Traditional Automotive Market the pogs in this guide have been developed to foster the growth of LED’s The percentage of LED SKU’s in these assortments are: 8’, 20 LED SKU’s out of 85 for 23% of the total offering 12’, 26 LED SKU’s out of 115 SKU’s for 22% of the total offering 16’, 30 LED SKU’s out of 142 SKU’s for 21% of the total offering

Flexibility in the Offering This guide shows retail package layouts Items can be easily converted to polybag Bulk baskets or bin boxes can also fit into assortments easily to accommodate the highly used products Room for lighted displays are also a strength Work with your local Grote Representative to develop a plan for maximizing sales

Merchandising in the Heavy Duty Market Have the right inventory that best serves your market in the branch The fleet/end user will have demand for both S/T/T and clearance/marker lamps primarily Package style is not a preference so the bulk and polybagged product will serve their needs The fleet’s inventory is stocked in bin boxes on shelves in parts room Fleet surveys should be updated yearly to account for new equipment or changes to existing stock Use product launches as a tool to introduce new product, and raise the customers expectations that they can rely on your input Be sure you carry the product that is being launched so availability and quick service is supplied

Merchandising in the Heavy Duty Market cont. Have the right inventory that best serves your market in the branch Use the Grote Top 100 best selling parts report Compiled for both Automotive and Heavy Duty Market Check the movement code from the price sheet Use your local Grote Representative for input Use inventory movement reports from in house

Displaying the Product in the branch POP--Point of Purchase At the counter POS--Point of Sale At the point of decision making

Changeover Process The Grote Changeover Process is a detailed program and can be covered by your local Grote Representative That person will work with you and outline the process and direct further information needed to the proper sources to help close the sale Make sure of the following: Have the right supplies to complete the job the first time (bin boxes, peg hooks, catalogs etc) After the successful changeover you still will need to follow-up with the customer and tie up loose ends If using bin boxes for product then put in numerical order for ease of locating

Merchandising and Product Documentation www.grote.com Specific product information Product Data Sheets List of available sales brochures Download the Merchandise guide

A word about Open Houses & Tradeshows Local and Regional Shows/Open houses Determine what product you want to promote Seasonal Items, Specials, Assortments, New Products Use the Grote supplied table top display Be sure that you work with the local Grote Representative to arrange for literature availability He will have the necessary samples to demonstrate with customers Working displays on the table and adequate electrical supply As you work the show be sure to identify customers ahead of time that you want to bring to the booth and discuss the products you targeted

Thank You & Good Luck