On the Shelf – Merchandising Marketing

Oct 8, 2019

When considering how to gain competitive advantage instore, it could be easy to gloss over the merchandise marketing without considering the significant role it plays in driving sales.

The display and positioning of products on shelves is highly intentional, based on years of scientific research, with the sole aim being to stimulate interest and entice consumers to make a purchase instore, and shelf displays are the last frontier. Consumers selecting products will be making that purchasing decision based on what product is in stock, where it is placed on the shelf and what other products it’s situated near.

The significance of store design in influencing consumers’ behaviour is well documented, yet shelf placement is also critical in contributing to a positive shopping experience. Efficient shelf space allocation management does not only minimise the economic threats of empty shelves, it also leads to high customer satisfaction, better consumer relationships and has a significant influence on product sales.

Merchandising instore is highly competitive as brands compete for the best possible shelf positions. Having our teams stock the shelves without relying on retail staff to do this for our brands is one key way to mitigate the risk of being displaced.

For shelf merchandising, position is everything. Here are some useful factors to consider when negotiating your shelf space:

 

Horizontal positioning

Consumers regard products that are placed in the centre of the shelf as the most popular product. Products places on the horizontal extreme are usually perceived to be of lesser quality and usually cheaper than those in the centre.

 

Vertical Positioning

Eye-level positioning is considered the most effective in garnering consumers attention as it requires minimal input from the customer to find the product. The products placed at this level are, quite literally, eye-catching. It is a widely held assumption that products placed higher up on the shelf are more expensive while products placed lower down are regarded as cheap or discounted.

 

Product Adjacencies

Effectively placing products near similar or complimentary products increases product sales by 20%. The orderly and intuitive layout of the products act as a trigger for consumers either to remember the next product on their list or to serve as a prompt should it not be on their shopping list.

Woman shopping for fruit

Negotiating and then maintaining shelf position instore is a core part of merchandising marketing. At FMI, we have a dedicated merchandising marketing team who ensure that our clients’ brands are always fully stocked and that their products occupy the more valuable shelf space instore to maximise exposure and sales.

If your brand could do with this specialised care and attention instore, get in touch with our merchandising team at FMI to find out how we could help you.