Friday, September 6, 2019
Trends In Merchandizing Essay Example for Free
Trends In Merchandizing Essay Over several years ago, manufacturers and retailers have been putting more emphasis and placing increased importance on the in-stock merchandizing and marketing. Since mid 1990s, the effectiveness of traditional marketing has really declined. Also the competition between retailers and channels has been increasing which have been treated as the factors in driving the trend. According to Bishop Willard in October 2002, he noted that more consumers make around 70% of all purchasing decisions while in store shopping. This has been the main reason as to why stores are the new platforms for brand marketing while the difficulties in delivering effective in store solutions for merchandizing increases, and also the need to implement state-of-the art merchandizing software capable of strategizing, planning, visualizing and communicating such solutions arises (Varien 2001, pg 45).            Interactive edge in merchandizing has built many interactive sales applications for the top consumer package goods manufacturers for about ten years ago. Since the year 2002, there has been an increase in demand for interactive requests which focused entirely on planning and communicating merchandizing solutions. The ability to create account specific market plans is very crucial because each customer has specialized schedules, strategies, programs, objectives and store and market conditions. Marketing plans are ideally supported by customer and category insights, analysis of promotion that speak in the situation of the customer, sales goals and brand information. The marketing plans that are informed by customer insights and account specific category have greatest impact in setting the stage for activities in merchandizing. In any marketing planning, it is important to implement the existing opportunities and conditions for each customer by first assessing the customer’s current merchandizing solution.            Smart bargains have managed thousands of dollars of continual changing inventory on daily basis. The firm’s experienced buyers should act on a moment’s notice to buy a wide range of high quality products at unexpected discounts. At the midst of controlled disorders at the core of this changing business, smart bargains required a solution to enable buyers, senior executives and planners to report and manage future and historical merchandize plans in a responsive, efficient and highly flexible manner. Smart bargains has turned to Envisa to implement and architect a business intelligence suite through use of Microsoft server 200 analysis and Microsoft table in excel.            The solution which leveraged merchandizing data mart had been developed during earlier incentive which provided smart bargain with a powerful reporting architecture that untied business users from the need to make complex questions in custom report writing. Merchandizing strategy creation does not imply a complete decorator make over. In order to enhance customers’ image of store, one should perceive his own store the way the customers see it and provide the customers with their requirements. According to research by Russel M who is a retail hardware operator, the consequences of a customer satisfaction survey came up with seven aspects customers want their hard ware stores to play for them. The customers require hardware stores to offer services which are special, make enjoyable shopping, have provision of one stop shopping destination, help them to save time, help them to save money, assist them better to understand d-i-y projects, and also make shopping easy (Phelps 1963, pg 78). At global shop, retail design experts, annual retail design exposition co-produced by design ideas and display conducted studies on why and how today’s consumer shop and also how a store can merchandize its goods so as to best meet the customers requirements. Those designers came up with emerging merchandizing trends to assist the retailers in all firms and industries to provide their customers with the kind of shopping experience they need. It is very important to keep up to date with these trends because as the number of shopping choice in the market grows, clients will find the most enjoyable and satisfying experience for shopping. This is also a better way of reaching ones store’s changing customer base. This includes more shoppers of females and also the next shopper’s generation who would expect more interactive and entertaining shopping experience.            In order to maintain home improvement shoppers from shifting to other shopping alternatives like big boxes, the internet and mass merchandisers, the retailers require incorporating an updated merchandizing strategy so as to cultivate customer loyalty and sales based on preferences of consumers. Some of the emerging trends, with details on how the home improvement industry is incorporating these trends are outlined below. Accommodation for shopper’s need for entertainment competing with the increasing popularity of increasing sales during an uncertain economy and internet shopping one the only two major factors that drive the today’s trend towards entertainment in retailing according to Schaffner K who is the publisher of design ideas and displays searching for ways to get customers to interact with the produced products is the core of the retail tainment concept, according to Schaffner. He added that this strategy does not hurt while conducting it. Such thinking was behind sears’ new tool territory format which so far has implemented in 131 stores of mall nation wide with around 200 additional stores slated for format incorporation this year (Brand 1963, pg 85).            The tool territory concept was created from consumer’s point of view and its caters to how the stores target clients –male-d-i-years-prefers to stores. The purpose of designing the tool territory was to be an interactive playground for men according to Costello Larry who is a senior manager in communications for sears. He further explains that, sears created a tusk force to research for customer’s requirements and expectations especially when shopping for tools. The study concluded that, individuals want to interact with tools and also experience their features in the stores. In incorporating these hands on approach to buying tools, sears have positioned a strategy of â€Å"try me†stations in several locations within the hardware department. For instance, if a client is deciding which item to purchase, like hammer, he or she can first try it our by hitting it on a free standing metal spike that has been placed in front of hammer display. Prospective buyers of power drills can pick up on the drills displayed outside the boxes on light displays with signed, and use it to make a hole in a well placed block of wood (Shilburg 2003, pg 231).            With all consumer packed goods or items available and the notice able changes in effective displays of merchandizing and the market place promotions, it becomes very hard for a consumer to come up with proper decisions. Manufacturers and retailers should start to cut through this clutter by having simplified shopping experiences the latest research conducted from the information researchers has not covered the early indicators that point to consumer centric approach to emerging merchandizing consequently, merchandizing as it is defined today is likely to undergo major of transformations. By considering the emerging trend, trends report and the latest times and also the growing demand for a consumer centric approach, the world’s largest provider of enterprise market information services and solutions for the customer package goods, health care industries and retail, explores trends in practicing merchandizing, including displays, new practices of innovations like manufacturers embark up on this transformation, customer packaged goods and temporary price reductions. As the retailers reduce the grocery display space, manufacturers require innovative merchandizing devices that should have a stress to the importance of consumer centric merchandizing to provide more profitable rewards in order to feature and complete space during the next several years.            Marketers should step up merchandizing innovation in have the shopping experience simplified, to have a break through the clatter and have better alignment with consumer segments and their patterns of shopping. The Information Resources Inc report aimed at helping the consumer packaged goods manufacturers and retailers to see new risks and opportunities that will arise with the new trends of merchandizing so that they can be able to act on the insights with confidence and speed and win at the shelf (Beck man 1967,pg 421).            For the past several years, merchandizing activity has been declining in more than half of all the customer packaged goods categories as the CPG marketers start to realize that, more of anything is not better with respect to merchandizing. Through development of new store formats and pronounced focus on perimeter upscale and departments, uncluttered layouts, a competition for shrinking grocery display space has intensified for various categories. Merchandizing is perceived as an effective sales driver as the majority of consumer categories gain an average volume lift of around fifty percent or more with around 25 percent reacting 100 percent when the tactics of merchandising are applied. References Beckman T, (1967). Marketing. New York. Brand E, (1963). Modern Supermarket Operation. New York. Phelps D, (1936).Migration of Industry to South America. New York. Shilbury D, (2003). Strategic Sport Marketing. Crows Nest. Varley R, (2001), Retail Product Management in Buying and Merchandising. London.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.