Retail Marketing Competition Conundrum – Financial Post Weighs In

The entrance of Target onto the Canadian retail scene has had a lot of tongues wagging over the last year – for a number of reasons – but as a recent Financial Post article suggests, one of the biggest reasons is its impact on competition.

If you are a retailer in the CPG industry, you are no doubt aware of the high level of competition out there. The stakes are high, and if you can’t keep customers coming through those doors, you might as well close them. As a the article, titled “Food fight among retailers expected to continue keeping prices lower,” proposed, price plays a big role – but is it the only factor?

Is cost the only thing that keeps customers coming back? No – and even if your prices are on par with other retailers, that doesn’t necessarily equal sales. When a customer shops, they are not only looking for the best deals and a variety of choices, they also shop at certain locations because of the atmosphere – even if unconsciously. If a customer enters a store and makes his/her purchases and has an overall positive experience, they will return. If, however, they leave the store feeling dissatisfied or put out by the experience, the chance of them returning has now seriously decreased. It isn’t rocket science – so why ignore it? 

We all know what things make the customer happy - helpful staff, a clean store, products on the shelf, not having to wait long at the checkout – so is your store making the most of the resources available and ensuring that when a customer leaves, they are leaving with the intention of returning?

The Financial Post article argues that most CPG retailers are using specific products as loss leaders to draw the customer in with the hopes that they will spend more on the bigger ticket items. We argue that this is not enough. If your prices are great but the shopper always leaves displeased, there is no guarantee that they will choose your store again.

In order to compete, customer experience should play a major role in your retail marketing. Whether this means increasing your staff during peak times to avoid line ups or to restock shelves, merchandising the store to make it more appealing, or even dealing with emergency product recalls in a timely manner, you need to be prepared.

To find out how you can beat the competition with a retail marketing strategy that sells, please contact Storesupport today by calling 1-877-421-5081, or visit us online at www.storesupport.ca.

Pump it Up: 5 Merchandising Strategies to Increase Sales

No matter how you look at it, your bottom line is directly related to how you conduct your merchandising. Customers, even if unconsciously, notice things about your store that you may not realize. Sure, maybe you have a plan in place that draws the attention of some, but if it is just catered to one segment of your target market, the others are being ignored. The most successful merchandising strategies are ones that cater to a number of different consumers.

Are you still counting on a one-size-fits-all approach to merchandising? It might be time to rethink things. Here are some ideas to get you started:

Colour – Different colours elicit different emotional responses. As a result, when shopping, people make, usually unconsciously, connections and associate certain colours with certain feelings, knowledge, etc.  Here are just a few ways to use the psychology of colour:

o   Green – natural or eco-friendly products

o   Black – high quality or premium products

o   Pink – products for girls or women

o   White – pure (think laundry detergent)

o   Red – products that are romantic or exciting 

Theme – Chances are pretty good that a few weeks ago your store was decorated for the holiday season. This, like colour, helps to create an emotional connection between your shopper and your store. But don’t just take advantage of different seasonal differences or annual holidays with your displays. Create themes that bind products together. For example, when designing an endcap, perhaps think about items that work well together – this might be school lunch products or barbeque necessities. This will help entice customers and increase sales.

Eye Level – When you stage your shelves, think about who you are targeting: parents, children, men, women.  Depending on the height of your consumer, where you place your product is crucial.

Variation – Stagnant displays = stagnant sales. Every few weeks things need to change, otherwise customers will get bored. When you change displays, customers’ attention is drawn to the change, especially if it is exciting or garners an emotional or thought-provoking response. We are not talking about revamping the entire store here either - even a subtle tweak to shelving arrangement can do the trick. This helps to make the customer feel as though they are being introduced to something new.

Cleanliness – Ok, this one is more of a rule than a strategy, but it can sometimes be easy to forget how much of an impact this can have on your bottom line. Debris on the ground or displays that are not tidy can turn a customer off – so make sure that things are in good shape at all times.

Need some help implementing some of these merchandising strategies? We can help. Storesupport has the team and the resources to get your plan underway. Contact us today by calling 1-877-421-5081, or visit us online at www.storesupport.ca.

RetailWire – What Generational Differences Mean for Your Merchandising

It is no surprise today to find that generation gaps are highly influential when it comes to your merchandising. Individuals in different demographic sectors want different things. Their expectations when it comes to not only the products they purchase but their overall experiences vary greatly, and as such require different marketing methods.

A recent release from RetailWire got us thinking about generational differences and what they mean for your merchandising, so we thought we’d share it. The article, “Gen X Wants the Steak, Gen Y Wants the Sizzle Too,” looks at a recent study done by GfK. This Brand Benchmark survey found that “Generations X and Y are attracted to functionality, the Gen Yers place more value on brand image.”

According to GfK, brand image has a lot to do with perception – is the brand trustworthy? Does the brand understand consumer needs? Are they reliable and committed? These are what influence Gen Yers the most. Quality and visibility also factor in here.

For Gen X and Gen Y shoppers, functionality reigns supreme. This means whether or not the product does what they need it to do, perhaps without the added buzz, is the Gen Yers are looking for.

So what? Why does this matter? Well, when it comes to your merchandising these generational differences should play a major role. For more information, check out the full article here: http://www.retailwire.com/discussion/17195/gen-x-wants-the-steak-gen-y-wants-the-sizzle-too

For more about how to make sure that your merchandising addresses these differences please contact Storesupport today by calling 1-877-421-5081, or visit us online at www.storesupport.ca.

What’s Trending in Visual Merchandising

Visual merchandising is a key component in any successful merchandising campaign. Effective campaigns improve profitability and expose consumers to more within a store. Knowing this, many retailers are taking advantage of the opportunities that visual merchandising represents.

A newer generation of visual merchandisers has taken what's hot (various forms of social media) and worked these components into different campaigns.  Things like hashtags and the "like" symbol are not difficult to spot when browsing store displays.

Shelving has also encountered a revolution when it comes to merchandising trends. Not only are endcaps more popular, but the way in which they are organized is too, as are focal points within store isles themselves. Whereas complete uniformity used to be the way to go, a change in scenery can draw the eye and stop tunnel vision. Displays that draw the eye are what you really want.

 

Colour is also becoming a major player, and not only in product packaging. Since people associate different colours with different emotions, another growing trend is to play up those associations and appeal to customers on an emotional level with your displays.

Now, more than ever, customers are concerned about the impact their purchases will have on the environment, and so when it comes to merchandising this can translate into sales. If your displays represent a focus on environmental awareness, customers will notice.

 

If your visual merchandising needs a facelift, the trends are the way to go. Don’t just stick with the same-old strategy: it is eventually going to end up costing you.  If you are not sure where to start, a company dedicated to executing successful visual merchandising campaigns that make use of the most cost-effective yet profitable strategies can help get you started.

For more about the hottest trends in visual merchandising for 2014 please contact Storesupport by calling 1-877-421-5081.