What is a Merchandising Strategy?
In order for a business to make a sale, it should be using strategies to enhance the consumer experience and promote products and services to the right audience! So, what is merchandising strategy and how can a business implement these sorts of tactics? A merchandise planning strategy refers to the different tactics and processes that are used to drive customers to purchase a product or service from a business. Having an effective merchandising strategy helps a business to increase profits while also creating better relationships with customers and increasing brand recognition.
These kinds of strategies may differ between segments of products and individual items to ensure that overall sales are driven up. Each of the merchandising strategies that a business uses should be considered according to the objectives of the product, some may be for profit while others may be more geared to showing how a specific item offered by a business may be better than its competitors. It is extremely important to have a good understanding of the different merchandising strategies that can be used and structure your product and pricing plans according to these different strategies!
What Should a Merchandising Strategy Look Like?
A merchandise marketing strategy is not a one size fits all plan and you may have to differentiate your strategy according to the products or services that you offer. This is why it is incredibly important for a business to understand and differentiate between different types of merchandising strategies, using plans that are in line with the goals of the business for specific products! Some may be products that you use to drive traffic while others may be more centred around generating high profits. Understanding and designing different retail and merchandising strategies according to these categories will help a business to create brand awareness while still increasing the profit that they make.
What are The Types of Merchandising Strategies?
There are different types of merchandising strategies that a business can use, many within the retail industry have to develop different plans for different products that they offer. The following is a look into some of the most popular retail merchandising strategies.
- Profit generating: A profit-generating merchandising strategy is centred around ensuring that a product generates as much profit as possible. These are usually high-quality items and it is important that the marketing of this product be centred around the value of the item.
- Traffic building: Building traffic is important for any business and sometimes you need those smaller items that get people through your doors. The products that are sold using this strategy are usually smaller and sold in high quantities. This strategy focuses on using these smaller products to target the audience and generate traffic in a store. The idea is to get people interested in buying these products and then draw them in to purchase more expensive items.
- Turf defending: Your position within the market when measured against your competition is very important to consider. Turf defending merchandising strategies position certain products against others in the market and highlight the benefits of why a certain product is better than others on the market. Many chose to use things like loyalty programs or promotions to increase the number of customers they get and cement loyalty that will see customers returning.
As stated above, the type of merchandising strategy that you use may differ depending on the specific product and the target audience you are trying to attract. By using the above strategies, you can work to incorporate different tactics and draw in customers, increasing the number of sales you make and the overall profit that you earn.
What Are The Things To Consider When Doing Merchandising Strategy?
One of the most important things to consider when developing product merchandising strategies is to think about the journey the customer takes. In the retail industry, it has become very easy to purchase things online, with just the click of a button a customer has the product ordered. When a customer goes into a store, they want to interact with the product, they want to be able to feel it or even try it on. Merchandising products is all about creating an experience for the customer, strategically placing goods in such a way that the consumer will want to make a purchase.
When it comes to eCommerce merchandising strategies, there are also specific types of merchandising plans that can be put into place to enhance the customer experience! By developing informative packages with information on the products that you offer, you can draw clients in and have a better chance of making a sale. Merchandising eCommerce strategies are very similar to standard retail plans as each involves creating strategies to drive product purchasing! Digital merchandising strategies are extremely important to consider, particularly if you have an eCommerce store.
What are The Effects of Having a Merchandising Strategy?
Merchandise planning strategies help to increase sales and create a better shopping experience for the customer. When a customer finds that they are able to trust your business to supply them with what they need, they are far more likely to return. This generates not just more profit but also works to help create a loyal following of consumers!
What are The Benefits of Having a Merchandising Strategy?
Having a merchandising strategy that works well and in accordance with your target audience can increase sales and help to create brand awareness. It is an incredibly important part of any business plan and finding the right software and tools to help implement these strategies is imperative! Automated systems in merchandising strategy help to increase the effectiveness of your marketing and ensure that customers will walk away happy with the products that they have purchased.