Merchandising: definition and translation

Merchandising is the set of marketing tools and techniques used to optimize product presentation in order to boost sales and improve the profitability of a sales outlet. According to theFrench Merchandising Institute (IFM), merchandising is defined as a set of studies and techniques used by retailers and manufacturers. Its aim is to increase point-of-sale profitability by constantly adjusting the assortment to meet market needs, and by presenting products in an appropriate way.

Merchandising can be considered a pillar of marketing, as it aims to entice consumers to buy, thus converting visitors into customers. The objectives of merchandising go beyond simple sales, as it also helps to increase sales, margins, product profitability, brand visibility and stand out from the competition.

The aim of merchandising

Merchandising is a technique designed to encourage consumers to buy, by converting visitors into customers. It aims to: Boost sales, increase sales or margins, increase product profitability, improve brand visibility and stand out from the competition.

Merchandising complements marketing, which aims to attract consumers to the point of sale, while merchandising aims to encourage them to buy once there. To achieve these objectives, it is essential to develop an effective merchandising strategy.

How do you define a merchandising strategy?

To develop an effective merchandising strategy, it's essential to understand the buying behavior of target consumers. To do this, we need to study their needs and expectations, as well as their path through the store. It's essential to ask the following key questions:

Why does the consumer go to the store? Are they looking for a particular product?

Why do customers prefer one product to another?

What triggers the buying process?

Which communication channel is preferred by target customers?

Thanks to an in-depth study of consumer buying behavior, we can implement a merchandising strategy tailored to their needs and expectations.

The different types of merchandising

Merchandising can be classified into three main types, each with specific objectives:

Organizational merchandising: This involves finding the ideal layout for each product to enhance the customer's shopping experience. This involves structuring and arranging products according to market needs. For example, group products by brand, type or price.

Management merchandising: This involves managing the space allocated to each product in relation to the sales area and the width of the assortment. The aim is to optimize shelf layout, product assortment and the positioning of each reference to improve the visibility of products on sale.

Seductive merchandising: Its aim is to arouse customers' desire to buy by creating an attractive ambience. This includes decorated windows, a warm welcome, olfactory and auditory ambience, appropriate lighting, harmonious colors and commercial animations to emotionally seduce consumers. Last June, we published an article dedicated to visual merchandising, which you can find here.

What's the key to successful merchandising?

Successful merchandising is based on several key aspects:

Enhancing the window display: The window display should make people want to enter the store, using matching colors, thematic staging, strategic product placement and appropriate lighting. It's essential to renew the window frequently to maintain its appeal.

A well-designed sales outlet: The layout of the sales area must be carefully thought out to optimize the customer's shopping experience. It's important to create clear shelves, easy access to products, an intuitive flow of traffic, and to arrange items according to their nature.

Creating the right atmosphere: A pleasant ambience is essential to encourage purchases. This means stimulating consumers' senses using sensorial marketing techniques such as pleasant smells, appropriate soundscapes, effective lighting and commercial animations.

Define the best product assortment: The assortment must correspond to the needs of the market, by displaying the right product in the right place, at the right time, at the right price and in the right quantity. A question of common sense: you don't sell swimsuits in February! It's important to take consumers' interests into account. It's essential to adapt merchandising strategy to events and seasons, such as holidays and sales.

Use point-of-sale advertising (POS): POS involves using different communication media in the store to promote priority-selling products. POS tools include window displays, gondola heads, kakemonos, touch screens, posters, stands, promotional coupons, and all the signage found at the point of sale.

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The Retail Staging tool can be used to create point-of-sale displays, simulate the layout of signage and optimize point-of-sale layout - everything you need for successful merchandising!

What tools are available to validate merchandising strategies?

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Point-of-sale testing is the ultimate tool for validating a strategy. However, it's very expensive and time-consuming to set up, and you need to be careful because the strategy adopted in one outlet may not necessarily be duplicable in another: you need to take catchment areas into account. Many shopper research institutes offer different testing techniques: PRS IN VIVO has long been a forerunner in the field of In Vivo research: in-depth qualitative interviews in rooms and quantitative interviews in situ. Although very realistic, these studies are still very expensive.

The Retail VR platform makes it possible to carry out immersive shopper studies in Virtual Reality, comparable to a real shopping environment. The mechanics are the same as for conventional studies. The aim is to confirm or invalidate the merchandising strategy implemented by brands. We have already published an article on the mechanics of shopper research, which you can read here.

We regularly collaborate with two renowned institutes: ENOV, a "human-centered" marketing and innovation research institute, with whom we have carried out several online shopper studies. Read the ENOV testimonial to find out more about this partnership.

Action Plus Shopper Research, a research firm specializing in shopper behavioral studies, uses 3D customer journey simulations from our platform to validate its customers' merchandising strategy.

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The advantages are numerous:

• For retailers: Above all, the aim is to gain a better understanding of the shopper's experience by analyzing their buying journey. The aim is to optimize product layout within the point of sale, test new merchandising layouts or concepts, and thus facilitate sales.
• For brands: Above all, it's about building a sales argument for distributors, and maintaining or challenging their position as category captain. But it's also an opportunity to optimize product mix performance and test new packaging.

In conclusion, merchandising plays a crucial role in a store's commercial success, boosting sales, improving profitability and creating a positive shopping experience for customers. By understanding the buying behavior of target consumers and implementing an appropriate merchandising strategy, companies can maximize their success in the marketplace.

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