Tip: Click the blue text above to follow "FMCG Distributor Professional Consulting" for more insights on marketing and distributor internal management.
In consumer behavior surveys, we learn that among all factors influencing customer purchases, product display is a very important indicator. Basically, the purchase process is: I see --- I like --- I buy, meaning making the product visible to customers is the first priority.
On average, 70% of purchase decisions are made in the store, and generally, the younger the customer, the higher the probability of impulse buying, as shown below:
[Image: Impulse buying by age group]
Also, because they see it, products they hadn't planned to buy get noticed:
[Image: Unplanned purchases]
Consumers spend 11.4% more in stores than they planned, meaning on average, 11.4% is impulse spending triggered by seeing products, as shown below:
[Image: Additional spending]
Therefore, display is crucial for product sales. For new products, increasing the chance of being noticed must be achieved through display. So, what makes display effective? How can we make display effective? Let's first understand the knowledge about hypermarket display.
[Image: Golden line display]
It can be seen that the golden line position is the most easily seen and the place where products are most likely to be sold. Of course, it is also the dream display position for all products.
With intensifying market competition, "winning at the terminal" has become an important means for many suppliers to capture market share. Product display, as a marketing weapon to boost sales and win at the terminal, plays an indispensable role. New products, as an important weapon for suppliers to compete for market, increase sales, and improve profit structure, make controlling their display the top priority.
Like any other new thing, new products need careful nurturing to grow, and display is a very important part of the growth process. It is no exaggeration to say that without effort in display, new products will find it hard to gain consumer recognition. However, the purpose of new product display is not just to gain consumer recognition; its broader purposes should be:
- Stimulate consumers' "impulse buying" characteristics;
- Make it easy for consumers to discover and conveniently purchase the product;
- Make consumers feel pleased when choosing products and more comfortable when buying;
- Increase customer satisfaction with the product and boost product sales;
- Increase product market share by increasing shelf space share; promote publicity, increase product awareness, and block competitors through prominent display positions and larger display areas.
To achieve these goals, it is necessary to fully understand the display modes of hypermarkets, and based on their basic principles, combine with the characteristics of your own products to make reasonable display plans to promote brand and sales improvement. Hypermarket display categories mainly fall into three types: normal display, special display, and promotional display. Among them, normal display refers to regular shelf display, including manufacturer-specific shelf display; special display includes floor stack display, end cap display, display rack (cabinet) display, and associated display. In the display of new products, these displays must be fully utilized to achieve steady sales growth.
Normal Display:
For regular shelf display, new products should be placed as close as possible to the customer's usual walking route, at eye level, adjacent to the category leader and existing similar products, either horizontally or vertically, with at least two display facings. The shelf should be fully stocked, and sufficient inventory should be maintained to avoid out-of-stocks. For signage, use shelf talkers, hanging flags, banners, posters, and other auxiliary tools, and also have a "New Product" indicator card to attract consumer attention, tell them this is a new product, arouse curiosity, and increase impulse purchase opportunities. For dedicated shelf display, also try to place it on the customer's usual walking route. The shelf should contain the same brand series, with new products placed at 1.2-1.5 meters from the ground, and the best-selling product of the same brand placed directly above. Keep the shelf and products clean and replenish promptly.
Special Display:
Special display is a display method relative to normal display, mainly including floor stack display, end cap display, display rack (cabinet) display, and associated display. It is a supplement to normal display. Special display is very important for new products; it can attract more customers entering the store more quickly, gain customer recognition, and obtain more sales opportunities. Key points for floor stack display: the location should be on the customer's most frequent walking route, with the stacked products facing the customer. Unless the area is large enough, only the hero product of the new product series should be displayed. Maintain a large inventory, and keep the stacked boxes full. Additionally, ensure the stack is stable at the base; use cross-stacking or a pallet display board. Except for the bottom support boxes, all boxes should be cut open for display. POP and product packaging should face the customer, not too high or too low, and easy to pick up. Also, arrange promotional posters for the new product around the floor stack.
Floor stacks should have characteristics, preferably using image stacks, which helps attract consumer attention and interest in the products on display. For example, make floor stacks for children's products or food into cartoon shapes. End cap display refers to placing products on the shelves at both ends of the aisle facing the aisle. Although end caps generally face the aisle, there is still a distinction between the sunny and shady sides. New products should choose the side close to the main aisle (the sunny side). An end cap should display at most two items, each in vertical display; otherwise, it will look too crowded and lose focus. Display cabinets are best for showcasing new products, functioning like light boxes, so the display should be extremely beautiful, with a brief description of the new product's functions. The key is to tell customers how it differs from previous products and its value. Display cabinets are most suitable for high-unit-price products like home appliances.
Promotional Display:
Promotional display is a special display for promotional products. In hypermarkets, new products without good promotional support will not sustain sales growth. Generally, for new products to achieve good sales, four "appropriates" are necessary: appropriate item, appropriate price, appropriate time, and appropriate place. The appropriate place here means where to place the product in the store. With retail price and launch time set, the display position and area for new products are very particular and can achieve twice the result with half the effort. Like promotional displays for other products, new products also need to occupy the most favorable terrain: the central aisle with the most foot traffic, end caps on the main moving line, stairways, corners of wall shelves, and near checkout counters. Avoid unfavorable positions such as warehouse entrances, dark corners, dead ends on both sides of the store entrance, and next to products with strong odors.
Regardless of the type of display, the following points should be noted:
Clear price labeling: The price tag for new products must be placed in a prominent position because customers are not familiar with the price of such products, and the size and clarity of the numbers also affect customer attraction.
Ensure safety in product display: Display is to help sales, not for acrobatics. When doing full-box displays, consider appropriate height to maintain attractiveness, but also pay attention to stability. When displaying full boxes, place the opened box on a stable position, and replace empty boxes starting from the top layer to ensure safety.
Convenience of display: Try to make it easy for customers to pick up products. Do not let posters and products be blocked, covered, or pressed by other things. Do not ignore customer convenience for the sake of display aesthetics. After all, the purpose of display is to sell, so customer convenience is the most basic requirement.
Consider customer feelings: Do not place products of significantly different categories together, such as not placing sanitary products with food, to avoid customer aversion.
Generally speaking, the display of new products is not fundamentally different from other products; the difference lies in the word "new." Fully reflect the characteristics of "new" while adhering to basic display principles, and you will know how to do new product display well.
Author: Huang Jing, graduated from Wuhan University Law School, full-time hypermarket purchasing manager, deputy general manager of Senpan Textile Trading (Shanghai) Co., Ltd., and freelance consultant for KA projects.
Like this article? Feel free to click the top right corner to share to your circle of friends.
About us: WeChat name: FMCG Distributor Professional Consulting Management Account introduction: 20 years of FMCG distributor operation and management experience, professionally targeting distributor internal management: We understand distributors better than manufacturers, and we understand internal management better than distributors. Senior marketing experts help your business grow.
Click "Read the original text" below to enter our micro-community for interactive communication and questions. Learning and exchange QQ group: 344257092