Blog
Blog

Merchandising in Russia: is it really useful?

18.03.2021

As is well known, 80% of consumers put in their grocery basket the product that attracted their attention with its price, packaging design, and ease of purchase. And only 20% are concerned about the consumer properties of the product, carefully studying its characteristics, composition, and useful substances. That is why the merchandising of goods in our time is so important.

 

Good merchandising in the store is aimed at increasing customer loyalty to the presented product, at stimulating purchases.

 

In 2021 it is still marketing tool that really can help you to gain your business goals.

 

Merchandising: what is it

 

Merchandising is one of the areas of marketing that determines the method of presenting the product in the store. Trade merchandising is responsible for the set of products presented on the shelves, for the methods of their display, for the supply of related materials, including advertising, as well as for the price of the product.

 

The purposes of merchandising 

 
  1. 1. Display of goods on shelves, showcases, stands, as well as throughout the retail space with maximum benefit for sales.

2. Providing customers with all the necessary information about the product.

3. Monitoring and maintaining up-to-date layout;

4. Stimulating impulsive purchases and increasing the average check;

5. Updating the layout and advertising and information POS-materials accompanying the products.

 

The main rules of merchandising

 

The Golden Triangle rule

 

It says that the most popular product should be located in the farthest corner from the entrance, and the cash register-in the opposite far corner from the most popular product. The simplest example of such a layout is the location of bread in a supermarket. Please note that it is usually located in the farthest corner from the entrance, so that you pass half of the store on the way to it. And the cash registers are in the opposite direction, so that you overcome the second part of the store on the way to the exit.

 

The „blind spot“ rule

 

As a rule, less popular products are placed immediately at the entrance. This zone is considered dead, because a person immediately overcomes it, being in the mode of adaptation to the location of products on the shelves.

 

The „clockwise“ rule

 

Since most people are right-handed, when they enter the store, they unconsciously turn their head to the right, start moving counterclockwise. Place the entrance and exit of the store so that a person, following counterclockwise, can pass all the shelves.

 

The „first promotion“ rule

 

Promotional items are recommended to be placed immediately at the entrance. So a person, having already taken the first steps in the store, turns on the purchase mode.

Merchandising in Russia: is it really useful?

The „eye-level placement“ rule

 

The person’s gaze is directed forward, accordingly, the most profitable placement of the product is considered to be one that is in the field of view of the buyer – at the level of his eyes. To draw the buyer’s attention to a stale product, or to a new arrival in the store, place it 15% below eye level, since when walking a person tends to look a little down. So the probability that the product will be sold out increases dramatically.

 

The „selection“ rule

 

To attract the attention of the buyer to a particular product, store employees use such merchandising tools as price tagging. The price is not always the lowest in this group of products, but this technique attracts attention, encourages buying. In jewelry stores, separate items are highlighted with the help of light. In clothing stores, it is customary to sort goods by color. Merchandising in a pharmacy is used to display certain categories of related products on separate expositions, for example, cosmetics for skin care.

 

The „separation“ rule

 

This is not so much a rule as a generally accepted norm. You are unlikely to go looking for wine in the bread department, and canned food in the milk. The division into product groups is a self-evident rule.

 

The „use of POS materials“ rule

 

POS – materials (Point of sales) – this is another effective tool to attract attention to the product with the help of accompanying signs. This can be a wobbler — a small sign on a flexible leg that is attached to a shelf above the product, mobile-hanging information posters under the ceiling, or giant models of goods installed in the center of the halls. These are also shelftoker panels for separating product groups, and shelfstopper panels for separating product ranges. And, of course, dispensers-designs in the form of a stand for displaying goods.

Merchandising in Russia: is it really useful?

The „permutation“ rule

 

This method is used to ensure that a person with frequent visits to the store does not form so-called dead zones in those places where he already knows what product is placed. To do this, it is not necessary to move the rows around the hall, sometimes it is enough to simply swap the products on the upper and lower rows.

 

In conclusion, a few words about the tools of merchandising. The key ones are: store design (both external and internal), its planning, placement of advertising structures at points of sale, product range, communication skills of sellers, etc. The latter, perhaps, plays an important role in establishing contact with the buyer and pushing him to buy.

 

Some researchers believe that the decision to purchase a product is made by the buyer in 65% of cases directly in the store. When making such purchases, a person is guided not by a rational, but by an emotional approach. Accordingly, when laying out products, appeal to this subconscious purchase model to increase the average receipt.

 

If you want to realize a project, using merchandising, contact us! We know how to do it perfectly!

Restaurant business in Russia in 2021

Pandemic of coronavirus influenced all spheres of business, including restaurants and cafes. The last one suffers losses more than the others. Despite this fact, the average daily turnover of the industry will grow by about 6%.   Restaurant trends are changing rapidly, especially due to the introduction of quarantine measures. If earlier delivery from the restaurant was not very popular, now most of the revenue is accounted for by orders for delivery and with yourself.   But what happen to restaurant business in Russia in 2021? Read our article to know all details.   Delivery and takeaway food   Delivery of food from a restaurant is the most important and relevant trend of recent years, which will only increase in 2021 due to quarantine restrictions. Especially if you are planning to open a sushi bar or pizzeria, this option is just a „musthave“. Without it, it will be extremely difficult to compete and, accordingly, quickly reach a payback. And the use of an automation system for a sushi bar or pizzeria with an integrated delivery module will be a significant plus when launching this option in an institution.   In addition to delivery from ordinary establishments, the number of orders from „virtual“ restaurants that do not accept offline guests and prepare exclusively for delivery is growing. One of the new ideas on the market is „hubs“ for virtual establishments: kitchens of different restaurants under one roof, between which autonomous cars run, picking up orders and delivering them to customers. This reduces the costs of establishments and makes delivery more accessible to visitors.   Casual segment and healthy nutrition   Fast-casual restaurants are opening more and more, a popular format for those who like healthy food, but do not like to wait long. In such establishments, guests receive food that is close in quality to expensive restaurants for little money, and the service here is slightly better than in fast food.   Franchises   More establishments opened under the franchise. Novice entrepreneurs do not want to risk their project, so starting a business on a successful and stable model looks much more tempting, which is confirmed by the statistics of open catering establishments.   Monoproduct   There are fewer universal restaurants „sushi-pizza-hookah-karaoke“. Guests increasingly prefer more narrowly focused cafes, pizzerias or hookah bars to such establishments — places where their favorite dishes are really delicious.   Fewer and fewer people are willing to settle for average quality in such supermarket restaurants, often for the same money as in cozy, atmospheric establishments. Hence the conclusion that it is worth focusing on single products: burgers, pizzerias, etc.   Pastries and sweets   More bakeries and pastry shops. Fresh pastries are in demand all year round, and you can place such establishments both in residential areas and on central streets with high traffic.   Craft drinks and dishes   An interesting and fresh trend of „crafting“ in everything: dishes, glasses and drinks. This is not only a fashionable phenomenon, but also a creative approach…

Festive opening of cosmetics store „Ulybka radugi“ in Perm

We have hundreds of projects of opening retail outlets. We are always happy to receive new tasks from regular customers, and this time we will tell you about the opening of a new store „Ulybka radugi“, which took place in April this year.   Read more in the article!   Goals and objectives   Our goal was to prepare the outlet for the festive opening, including:   1. Conducting master classes on make-up 2. Festive decoration of shop windows and facade 3. Recruitment and training of promotional personnel   Next, we will tell you in detail about the preparation of festive event to the opening.   Realization   First of all, we needed to prepare the point for the reception of the first buyers. In order to attract people’s attention, we decorated the entrance along the perimeter with balloons in the color of the „Rainbow Smiles“ logo. Bright balls of all seven colors of the rainbow became a great addition to the interior and created a festive mood.   We have trained promo models. From April 22 to 24, the girls announced the event and distributed advertising leaflets in the hall of the shopping center. The dress code was observed – the promo models were dressed in spring dresses and suits.   The results were analyzed and sent to the client in the format of a summary report and a photo report for each day of the promotion.   On April 24 and 25, makeup workshops were held with a guest makeup artist. Everyone could watch the makeup process, ask the makeup artist questions and get useful recommendations.   Results   The opening of a store is always a holiday for both the company and customers, as well as a wonderful occasion to organize a promotional event in honor of this. In the case of a brand that sells cosmetics and household products, a make-up master class turned out to be the best solution for attracting attention.   We were able to attract the attention of potential customers to the new outlet and increased traffic. Sales growth was noted!   The client was satisfied with the preparation and results of the campaign, and the promo models and the staff of our agency received the highest assessment of the quality of work.   Conclusion   Marketing agency „CLEVER marketing“ – federal retailers throughout Russia trust us to organize and conduct events and promotions. We will take care of all issues related to the design of the store, merchandising, search for promotional staff and entertainment activities for customers. All together will help you achieve the desired goal in the form of increased sales!…

Premium product market in Russia

Economic crisis due to the coronavirus pandemic affected the business in Russia. But today the market is coming back to life. The revival is modest, but noticeable, and it will continue to grow. Moreover, 85% of experts expect the luxury market to grow in the next three years.   In Russia, as nowhere else, the premium class is such a specific category that this very concept is interpreted somewhat differently here than in Europe, where it came from. Why?   Firstly, the historical development of our country, which has been behind the „Iron Curtain“ for a long time, played a big role. Secondly, the mentality of the Russian person forms a kind of perception of the premium class.   Despite the fact that the level of general well-being of the population is noticeably increasing, in Russia the stratum of well-off people makes up a fairly small percentage of the total population of the country. And those who make up this small percentage are different from rich people in other countries.   What is the luxury market in Russia   When we say „premium“, of course, we mean success, well-being, quality. Taking into account this connotation, a program for promoting premium brands is being formed. But for the Russian consumer, such an aspect as the recognition of premium is also important to emphasize their solvency in a certain environment.   And if the mass market segment is quite simple to model, then everything is different in the premium category. It, in turn, is divided into narrower ones. The affordable segment of the premium class market includes perfumes branded by well-known haute couture companies, alcohol, pret-a-porter clothing. In terms of the use of marketing and commercial promotion models, this segment is similar to the mass market.   But there is still a premium segment of the market that is inaccessible to a wide category of the population — this is exclusive real estate, author’s jewelry, antiques, means of transportation (cars, yachts, air transport, etc.). There is a big difference between these two segments, which in the second case further complicates the promotion of products.   Particularities of promotion of luxury brands   The main difference between the promotion of premium brands is a higher price positioning, which forms a number of specific requirements. It should be borne in mind that often the premium audience makes purchases on the principle of „just to be more expensive“. This is a desire to demonstrate something to yourself and others. However, in addition to the high price, the premium brand should be radically different from others visually and in quality. Just the latter is sometimes forgotten, focusing on packaging, positioning, and pricing policy. The problem of fakes has a negative impact on the brand’s image as a whole. Distrust of the brand is formed, which does not contribute to sales growth at all.   As a result, many people get the impression that the premium class is just a bright outer shell, behind which a low-quality…