1. Lesson 8 - Merchandising VIRTUAL BUSINESS - RETAILING

2. Merchandising Product Placement One of the 4 P’s of Marketing How to allocate space to products given the available merchandising space. Products placed to encourage shoppers to navigate through different parts of the store than they otherwise would.

3. Merchandising Impulse items placed along heavily trafficked aisles or at the point of purchase to increase sales. Complementary products will sell better when placed near each other in related displays. Is your layout effective? Observation of traffic patterns and sales will indicate effective or not.

4. Product Placement “Destination” items Placed at the back or interior of the store Customers must pass by “impulse” items Customers pass by many other products Stay in the store longer

5. Product Placement What are “Destination” items? Grocery store? Bread and milk Auto Parts store? Counter with parts guys at back of store

6. Product Placement Control what customers see and how they see it Signs, offers and promotions placed at eye level Customers scan shelves left to right, eye-level then down

7. Product Placement Items related to one another are placed together Soup and crackers A rack of bananas in the cereal aisle A display of birthday candles near the bakery

8. Product Placement Items with higher perceived value or that generate more profit are given more desirable shelf space – where consumers can easily find them At eye level At the ends of aisles Right inside the entrance

9. Planogram

10. Planogram - Function Diagram that shows retailers where to put products on shelves, racks and other store fixtures. Can be the key to making a sale in the few seconds that shoppers focus attention. Example: customers shopping for toothpaste may notice mouthwash nearby and purchase that also.

11. Planogram – Product Placement Determine shelf heights and number of “facings.” A “facing” is a row of products. The best selling and most-profitable products have the most facings. Usually placed at eye-level

12. Planogram – Consumer Buying Habits Consumers make buying decisions while they are shopping Effective planograms can influence those decisions Appealing displays can move shoppers to make an unplanned purchase Shoppers may purchase a competing product if they are placed near each other

13. Cupcakes Create a Planogram for the Cupcake Bakery.