Many companies assess sales personnel based on sales commissions, but some, like food company Orion, only assess display. The reason Orion has performed well in China is partly related to its assessment method. For salespeople, as long as you have good customer relations and can display products excellently, the amount sold may not be determined by the salesperson alone; other factors such as brand, advertising, promotions, and pricing attract consumers. Below, the editor from Dealer's Home explains:
Display plays a crucial role in the entire sales process. Poor product display will inevitably lead to the failure of the entire sales process; if terminal basic display work is done well, consumers' attention to the product will significantly increase, effectively raising the likelihood of purchase. In today's market where circulation commerce holds a dominant position, modern trade channels are of great significance to product sales. "Those who win the terminal win the market," and terminal display is an important prerequisite for winning the market. Since terminal display is so important, how should we do the basic terminal display work well?
The Importance of Basic Terminal Display
Basic terminal display is a vital part of product sales. No display, no sales; the quality of display directly affects product sales. If product, packaging, and price are essential factors in terminal stores, then product display in the terminal is also crucial for product presence. When customers purchase products, they pay close attention to the store layout and the visual effect of product display. If the product placement lacks aesthetics or is messy, it may fail to stimulate purchase desire. If products are placed in inconspicuous corners, they cannot attract consumers' attention or improve sales performance. Good product display and presentation should capture customers' attention from the first visual impression, generating interest, trust, and stimulating purchase desire.
Terminal display enhances corporate image and builds brand influence. As the saying goes, "Clothes make the man, gold makes the Buddha," extended to products, it's about packaging. However, even with good packaging, good sales are not guaranteed. Good products and packaging are only the first step; the key is how to combine products to form an optimal display. Battling at the terminal is not just about price wars or jumping into the "red ocean"; the terminal is an important strategic position for companies to achieve sales and build brand image. Therefore, doing basic terminal display well can not only boost sales but also establish product and corporate image, guiding market competition away from the "red ocean" towards higher-level healthy competition. For example, Johnson's baby wipes created exquisite and grand pillar displays at terminals, not only expanding display area but also showcasing the brand image of a Fortune 500 company through terminal display and design, enhancing consumer trust in the Johnson's brand and effectively increasing sales.
Guiding consumer purchases and intercepting competitors at the terminal. Research has found that consumer purchase behavior is often unplanned, i.e., impulsive buying—seeing product displays or promotional information triggers immediate purchase decisions. Merchandising can enhance product display effects and stimulate purchase intent. In consumer goods, especially FMCG, product display quality is the "last mile" for sales, and impulsive buying is easily influenced by the external shopping environment. Terminal display is one of the important factors affecting impulsive purchases, so doing basic terminal display well can attract consumers to make impulsive purchases. If combined with terminal sales personnel promotions, it can effectively intercept competitors.
How to Secure Terminal Display Resources Terminal display resources are limited and scarce, especially in today's competitive environment, making them a battleground for any company. Therefore, manufacturers have increased investment in display resources, making the terminal competition even harsher. Below, I share several ways to obtain terminal display based on personal experience:
Purchasing display with fees: This is a common practice. It is widely applicable; as long as there is financial investment, resources can generally be secured. It is especially suitable for new brands because their market awareness is low, and retail terminals are unlikely to give new brands good display positions or special support. Therefore, new brands typically invest heavily in resources during the initial promotion phase. The American-backed brand "Xinhui" invested substantial financial and material resources in Hangzhou retail terminals in 2006, securing good display resources. However, from another perspective, anyone with money can secure better terminal display resources. The real skill is to secure better and more display resources without spending money or spending less. This is what sales personnel should focus on and cultivate.
Salesperson's personal ability: The performance of products at the terminal largely depends on customer relations, which in turn depends on the salesperson's personal ability. No matter how advanced a company's management system is, it ultimately relies on people to execute. Therefore, to do basic terminal display work well, the salesperson's personal ability is crucial. With good customer relations, you can gain customer support and strive for excellent display performance. So, what abilities should such a salesperson possess?
- Persistence and never giving up: Many store managers handle numerous tasks and see many salespeople daily; it's almost impossible for them to remember who you are and which company you represent at first. Especially when they are not familiar with you, asking them to adjust your display is hard to achieve immediately. To reach your goal, you need to visit the terminal frequently. This persistent work attitude not only helps you achieve your goal but also earns their respect.
- Continuous learning to become an industry expert: Become a constructive advisor to terminal store managers in category management, providing persuasive terminal construction plans or category management ideas, and solving their work challenges. This builds trust and helps you secure better resources. This requires salespeople to keep learning both on and off the job. Some salespeople have rich practical experience but lack theoretical knowledge due to poor summarization, which often limits their development and promotion. Additionally, lacking theoretical support in communication with store managers reduces the credibility of their viewpoints.
- Having a "shameless" attitude: After ineffective communication about display adjustments, you can inform the stock clerk and adjust your display yourself. Some stores don't truly reject display adjustments but are afraid of trouble. After adjusting, ensure the display is neat and tidy; otherwise, you won't be allowed to adjust again. (Note: Suitable for standard supermarkets, not hypermarkets, and be careful to grasp the "degree" to avoid offending store staff.)
- Reading people, seizing weaknesses, and cleverly catering: Due to the strong position of terminals, many store managers are tough and arrogant. Some managers like to play "teacher," lecturing manufacturer salespeople to show off their abilities. In such cases, let them be the teacher; just listen attentively, seize favorable words, and pretend to be ignorant, seeking help humbly. This often leads to success. As the saying goes, use their own spear to attack their shield, making it impossible for them to refuse.
Using sales and profits to gain terminal display preference and support: The quality of customer relations is fundamentally based on good sales performance. Without sales performance, no matter how capable the salesperson or how good the relationship, it's not solid. Sales are the foundation; customer relations are the booster. This requires strong data analysis skills. If you want something, use data to show the terminal what growth or benefits they can gain by adopting your suggestions.
Using promotional activities as a condition to gain display support: Promotional plans must be persuasive and clearly show the store what benefits they will bring, thus securing display support. It's best to have salespeople detail the promotional plan and present it as a PPT, not only demonstrating professionalism but also vividly explaining the plan. This also serves as a summary and improvement for the salesperson, aiding their growth.
Paying attention to retail terminal and competitor dynamics, seizing opportunities to adjust and expand display: Some supermarkets adjust and inventory their shelves according to seasons. This is the best time to strive for better display positions and larger display areas. Shelf adjustments and inventory counts are usually done at night to avoid affecting normal sales, and they often lack manpower. If you can help the supermarket adjust in time, even staying up all night with them, can't you achieve a larger and better display position?
Seizing display during daily visits: Learn the competitor's sales representative's visit times and adjust yours to follow closely, quickly weakening their display results and seizing shelf space. Ensure timely supply: Understand each supermarket's sales volume, help correct safety stock levels, and deliver promptly to prevent shelf space reduction due to stockouts or missing items.
How to Utilize Terminal Display Resources Display resources secured through fees, salesperson abilities, promotional support, etc., do not automatically yield good results. Therefore, it's necessary to integrate display resources to maximize their benefits.
Training on sales skills and merchandising for relevant personnel:
Display principles: The basic principles of display revolve around "three reaches": see it, buy it, and get it. For main push products: place them in the golden position.
Monitor competitors and adjust timely: While formulating your product display strategy, keep an eye on competitor market information and dynamics, respond quickly, and continuously adjust display strategies. When displaying, "cling to the big": for brands with low awareness, position close to the leading brand to leverage its recognition and attention to increase consumer exposure. For industry leaders, avoid displaying alongside generic brands to prevent lowering your status. Promptly shake off generic brand followers. Keep distance: When products are of similar specifications and brand influence, do not place your product next to a competitor's high-value product, as it may leave consumers with an expensive impression.
Keep shelves full but not overflowing: Some salespeople habitually fill shelves to the brim, even cramming products in. Keeping shelves full is necessary, but there's a limit; don't let products overflow. Don't make it difficult for consumers to take your product; many won't have the patience. Make it easy for them to grab with one hand. When restocking, remove the outermost layer of products, which not only facilitates access but also gives the impression of fast-moving products.
Always better, never best: Terminal display resources are limited; if one manufacturer has a larger display, another will have a smaller one. When doing basic terminal display, adopt a "greedy" attitude towards display space and position. The daily task is to squeeze competitors' display area and expand yours. After seizing limited display resources, force competitors to have products in the store but no display, crushing their products in the warehouse.
Display never ends; it relies on execution: Securing the best display position and space is only the first step. Maintaining terminal display effects depends on the salesperson's unremitting efforts daily, monthly, and yearly. The manufacturer that supplies more timely, visits more frequently, and does more solid store display work will maintain its display position and gradually seize competitors' positions.
Source: Dealer's Home
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