Where are Your Merchandising Execution Gaps?
It's estimated that consumer packaged goods manufacturers launch over 50,000 promotions with retailers every year. This represents over 20% of their revenue, even higher in some product categories. However, it's also estimated that 40% of these promotions fail to achieve their original goals and are judged as failures.
How much of this failure rate is due to over-ambitious goal setting? How much is the result of poor design? How much is caused by ineffective pricing strategy or unfortunate timing? How much is from a combination of all three?
It’s really hard to gauge because each market, promotion and retail environment is so different. However, in hindsight most failures can be pinpointed to an unforeseen gap in the execution of the promotional strategy at the store level.
Retail merchandising services companies like DisplayMax have always been about filling in these execution gaps. Whether it as simple as placing promotional hangers on products, building end-cap displays, cutting in new product, or fixing out-of-stocks and distribution voids DisplayMax helps retailers and product manufactures fill in the execution gaps in the process.
Gaps are created because manufacturer and retailer sales initiatives run into the reality of store level execution. This includes the inevitable problems caused by lack of employee expertise with merchandising and display set-up. Many store managers are overburdened with administrative tasks and delegate them to employees who have little experience at merchandising program execution. This results in poorly install display, improper placement of product and inadequate sign placement. All contribute in creating a gap that can potentially cripple performance.
A properly executed merchandising program is critical to a retail store's success. About 10% of consumers said advertising was a major factor in buying decisions while 81% of consumers seek out special deals. Consumers are very influenced by in-store media and the success or failure of a program is tied to their shopping experience. At the point of sale, merchandising is king and the potential for failure great because of execution gaps.
One solution to fill these gaps is to tap into the knowledge, expertise and experience of the DisplayMax team. They know how to read a plan-o-gram, install complex display and set-up your displays as they were designed. In-store merchandising is too important to the success of your promotion to leave as an afterthought. Let the professionals at DisplayMax Merchandising Services plug the hidden execution gaps in your next program.
Choose DisplayMax Merchandising Services to be your partner in execution and find out how we can make a difference to your bottom line. Call us today at 810-494-0400
Download Your Merchandising Execution Guide
To help you implement your future merchandising projects, download a copy of our free execution guide – The 5 Critical Execution Factors For Your Next Retail Merchandising Project.
Inside this useful digital document you will find critical tools you need to help a merchandising services company like DisplayMax to execute your program to your high standards.
