Introduction:

What is Merchandising?

Merchandising is the practice and process of displaying and selling products to customers. Whether digital or in-store, retailers use merchandising to influence customer intent and reach their sales goals.

In both brick-and-mortar and digital stores, a variety of merchandising techniques are used to arrange products, communicate their value, and create an optimal customer experience. Many disciplines fit under the umbrella of merchandising, and there are a variety of merchandising types. These include, but are not limited to:

• Product merchandising
• Retail merchandising
• Visual merchandising
• Digital merchandising
• Omnichannel merchandising

Marketing your product might feel overwhelming, but it doesn’t have to be. The Four P’s – Product, Placement, Pricing, and Promotion – encapsulates CPG marketing basics and can guide us where we want to go (back home with the shopper!)  Let’s dive in to see how each segment works together to affect your overall merchandising solutions strategy. 

Merchandising – Is It Just Buying and Selling?

Merchandising is much more than simply buying and selling. It encompasses a wide range of activities designed to promote and sell products to consumers. These activities include:

1. Product Selection: Choosing the right products to meet consumer demand and market trends.
2. Pricing Strategy: Setting competitive prices that attract customers while ensuring profitability.
3. Display and Presentation: Creating appealing displays and store layouts to enhance the shopping experience and encourage purchases.
4. Inventory Management: Keeping track of stock levels to ensure products are available without overstocking.
5. Marketing and Promotion: Developing advertising campaigns, special promotions, and in-store events to drive sales.
6. Customer Service: Providing excellent service to build customer loyalty and encourage repeat business.
7. Data Analysis: Analyzing sales data and market trends to make informed decisions about future merchandising strategies.

In essence, merchandising involves a comprehensive approach to presenting products in the best possible way to maximize sales and enhance the overall customer experience.

PRODUCT

It all starts with a product you believe in with specific benefits for the user. We want to communicate those differentiators as clearly as possible so the shopper quickly and thoroughly understands what you’re offering. 

But, it goes beyond the product itself. The right packaging adds a whole new dimension to shopper engagement. How can your packaging and your branding communicate your message, too?

Let’s look at an example. Say you sell an artisan brand of crackers. You don’t want to only tell people that you are a high-end brand; you want to show them! Present your crackers in beautiful packaging signifies the quality inside. 

Colors, textures, fonts, material, and messaging culminated in cohesive branding highlighting who you are and what consumers can expect when they unwrap your product. We build upon your brand with coordinated on-pack advertising to communicate seasonal or promotional information.  

You don’t always have to shout your message; sometimes, it’s more effective to simply show it.  

PLACEMENT

It really is all about location, location, location. When it comes to in-store signage and coupons, visibility is vital. After all, a customer needs to see your product before buying it. Few shoppers go down every aisle in the store, which means we have to be creative. Secondary locations, such as end caps, provide another opportunity to showcase your product. 

Get creative with your product’s location. Cross-merchandising, or placing your product near a related one, is another strategy to increase conversions. For example, the average shopper might be more likely to pick up shaving cream if it’s located right next to a display of razors. 

PRICING

It’s no secret that today’s market is overwhelmed with choices for a shopper to make. Competitive pricing helps separate you from the competition. In-store signage and coupons, such as Instant Redeemable Coupons (IRCs), can be the deciding factor. 

Packaging also comes into play here — better packaging lends itself to higher prices. What benefits are you providing the shopper with your packaging? 

PROMOTION

It’ll come as no surprise that this is our favorite P. Promotion helps connect your brand with your audience and can initiate brand switching: when a customer decides to abandon their usual brand and take a chance on yours. 

For CPG marketing, we find on-pack solutions highly effective. They provide a unique opportunity to communicate relevant information right there on the shelf.