Creating a Highly Promotional Environment to Drive Sales in a Down Economy
SymphonyIRI recently published a new report entitled “Merchandising Trends: Driving Consumption through Shopper Marketing.” In it, they note the role merchandising plays in retail across various consumer packaged goods categories.
Food and beverage categories were among the top categories that experienced the largest increase in merchandising support over the past year. This is primarily due to an increase in family meals being eaten at home as a result of the slow economy. Another effect of the economy is the increased pre-planning of shopping trips.
The report, by the numbers:
47% of CPG categories benefited from increased merchandising support, including displays, feature ads, feature and display combined, and price reduction.
This number represents a decrease from 2010 where 58% of categories increased their merchandising support; this does still provide evidence of increased engagement to drive purchase behavior despite of a weak economy.
53% of categories experienced an increased lift from merchandising activities during the past year.
While drug categories lag in merchandising performance, all indicators point to greater lift over the next year as investment in merchandising channels is increased.
75% of consumers are making CPG decisions before entering a retail environment. – The same percentage enter the store with a shopping list.
- 63% of consumers looked at store circulars before heading to the grocery store.
- 49% of categories achieved lift of 100% or more from feature-only merchandising efforts in 2011.
- 84% of categories achieved lift of 100% or greater when they backed their feature efforts with display activity.
Retail stores are incredibly expensive to run and maintain, yet many retailers aren’t getting the most out of their stores’ potential because there is no way to tell whether merchandising and promotional campaigns are being executed according to plan. By equipping store managers with tablets running RBM Technologies’ Visual Merchandising Manager (VMM) , retailers can ensure that every store location is optimized for peak sales performance.
Using VMM, retail store managers can ensure that the right products are on the right fixtures at the right time, make certain that promotional campaigns are properly localized for each store neighborhood, send photos of the executions tied to the campaign planograms to confirm store compliance and deliver training and instructional videos at the point of execution for maximum impact.