Product Classification and Merchandising Strategies for Retail Success
Product Classification and Merchandising Strategies
Classification Based on Brand
- First Brand: Well-known articles nationally and internationally with significant investment in publicity. Increased market participation rates. They offer quality, reliability, and safety. Pioneers and innovators.
- Second Brand: Nationally known articles. Less market share. They offer higher margins, warranty, quality, and safety.
- Brand Zone: Articles known regionally. They offer security and safety. Are rarely innovative.
- Distributor Brand: Those who carry the brand and logo that the trade sells. They are usually purchased by patrons motivated by price. The distributor is the guarantor of these items. High margins.
Properties
- Magnet Products: Attracting customers to the establishment. They are characterized by a brand image and unique design in packaging and generally fall under premium brands. Small number of items. Should be placed in strategic locations of the outlet so that the client goes through the facility. Low-profit.
- Impulse Products: Frequent purchase. Included are new products that bring some innovation. The price is not important.
- Generic Product: Complementary products that meet a need. Are substitutes for others. The brand is not important.
Price-Based Categories
- Seasonal: Fashionable products. Prices are motivated according to the buyer for these items.
- Economical: Respond to the economy of interest or motivation of the buyer. They are cheap if included are generic and bearing the mark of the distributor.
- Branded: The seller responds to the security of a known brand. Attractive products belong to the first and second brands. Their price is usually medium/high.
- Luxury: Meets the buyer’s motivation of pride. They belong to all those who enjoy prestige items. High prices.
Magnitudes of the Set
One must take into account the following factors: size of the sales floor, customer type, and profitability. Amplitude (sections), depth (items), width (number of subdivisions of a section).
How to Organize Assortment POS
- Sections: Consisting of categories that are characterized by certain similarities in terms of meeting the different needs that the products section offers.
- Families: Formed by a group of products that satisfy the same need.
- Subfamilies: Splitting up the family and all references. The reference is an indivisible part of the structure of the set.
Category: All products that the customer believes are interrelated.
Determination of the Set
- Qualities of Articles: Generic products that are purchased if needed and compared where they expect other comparisons.
- Exhibition of Items: Must be exposed on a carrier.
- Return of the Establishment: The more references in a family and more families in one section, the less turnover there will be.
- Dimensions of the Outlet: Choose between rotation or variety.
- Types of Customers: Customer knowledge is essential (purchasing power, purchasing habits).
Characteristics of Furniture
- Height: Depends on the section, characteristics of products, and purchase motivations.
- Depth: Varies depending on the pace of sales. A greater depth allows you to put more products on supermarket shelves. If the amount is very high, exposure provoked a low turnover, and profitability will be eroded.
- Length: Longer furniture fits better in the space. This is ideal for food products. In impulse purchase products, short furnishings should be used to allow highlighting the products individually.
- Number of Shelves: Depending on the size of products, it can be developed to increase the linear by adding more shelves.
- Design: Form and design, colors should transmit personality to products. You have to draw attention but not more than the product highlight.
- Width of Aisles: The greater the flux density of passing customers, the wider the aisles should be. In hypermarkets, the minimum width of a corridor is the equivalent of 3 shopping carts, in small supermarkets, 2 cars. Sections with less flux density can narrow corridors and use the space gained.
Types of Furniture
- Bookcases Murals: Along the walls, shelves to adapt mobile number and height. The color will vary depending on the items on display (power: white; drugstore, DIY, and the like, light blue; in jewelry, glass).
- Gondolas: Furniture that is placed in the middle of the showroom to form corridors.
- Gondola Headers: Shelves attached to the ends of the gondolas.
- Special Displays: Furniture designed for a particular product, providing common ground for the manufacturers, exhibitors placed in strategic locations in the store.
- Special Containers: Container-presenters. The purpose is to promote the sale of products.
- Refrigerated Furniture: Used for the conversation of fresh produce.