1.2. Merchandising analysis

Merchandising analysis allows a company to improve the planning, placement (lay-out) and presentation of products to meet the market needs, with the goal of optimizing the products range to achieve higher profitability. Sales, product and store managers monitor the impact of merchandising attributes like product placement, packaging and shelf-space area.

Additionally, clear understanding of what are the specific segments that customers buy enables more effective store design, better product range and better placement (lay-out) combination of different products. Sales policy also provides statistics that helps to identify product range that can be used to forecast sales volumes.

To conclude this chapter I’d like to note that the employment of traditional techniques of merchandising is very important. The proper use of shelves, counters and lightings increase the demand. Merchandising analysis is also a very important part of merchandising, because it reveals the specific segments.

Visual merchndising

2.1 Rules of visual merchandising

Visual merchandising is the art of displaying merchandise in a manner that is appealing to the customer. It sets the context of the merchandise in an aesthetically pleasing fashion, presenting them in a way that would convert the window shoppers into prospects and ultimately buyers of the product. A creative and talented retailer can use this upcoming art to breathe in new life into his store products. Passion for design and creativity are essential to be a good visual merchandiser. A perfect design process and the ability to create ideas that are different are required. Awareness of happenings in fashion world is needed so as to keep up-to-date with the dynamics of the market constantly. Visual merchandising includes window displays, signs, interior displays, cosmetic promotions and any other special sales promotions.

There are some rules of visual merchandising :

a) Ensure that your stand is not too crowded with merchandise. If you put all of your items out at once, it can be confusing to customers. They won't know where to look first. Also, if you load your booth with piles and piles of items, it can reduce the perceived value of your work.

b) Whenever possible, let people touch and pick up your items. When it's practical, ensure any displays you use don't limit your customers' ability to touch and pick up items. Also, try to avoid elaborate displays that discourage touch. If your display is too fussy, customers will avoid picking up items; they'll say they don't want to destroy your lovely display.

c) Make people comfortable so they'll stay longer. The lack of the price tags can scare buyers, because they cannot discover prices without seller's help, but sometimes customers don't want to contact them.

d) Display items at or near eye level. If you are displaying your items on tables, consider adding some height to your tables, particularly if your items are fairly small. Standard table height is not an effective counter height. Adding wood, metal or plastic shims to the bottoms of the your table legs to raise your tables 3 to 6 inches will bring all of your items closer to eye level for your customers.

e) Group similar items together. Keep similar items together to quickly communicate an image and sense of style to your customers.