Your objective is to maximise the sales across your whole store and therefore where you position products in the store can have a major effect on the overall return on your investment.
Product placement is based on your understanding of their classification.
1. Product Classification
Products can be grouped into a number of different categories based on their positioning in the store. Those categories are:-
• Known Value
• Non Known Value
• Purpose
• Browse
• Impulse
• Link
• Male/Female Products
2. Known Value Products
These are products where the customer believes they know the exact price. Petrol, cigarettes, toilet paper and newspapers are typical known value products.
If price is a major motivator for customers to visit your store, then known value products should be placed in primary sight lines. If price is not your major draw card then place these products in secondary sight lines.
3. Non Known Value Products
These are products where the majority of customers do not know the exact price. They make their primary buying decisions based on wants, quality, benefits and service.
If you are not a priced motivated business then non known value products are placed in the sight line.
4. Purpose Products
Purpose products are those on your customers shopping list. They are the reason customers come to you. Some purpose products will also be K.V. products.
In a supermarket, purpose products would include:
Tea Baked Beans Bananas
Coffee Cornflakes Milk
Lettuce Dog Food Eggs
Tomatoes Carrots Toilet Paper
These products are positioned in the store to “bounce” the customer around the store.
X Position of Purpose Products to bounce customers around the store.
5. Browse Products
Browse products are those products where customers need time and space to make a buying decision.
Common browse products are:-
Books Herbs Paints
C.D.’s Videos Power Tools
Birthday cards Magazines Seeds
These products should ideally be placed away from the major customer racetrack and in areas where the customer has space to browse shop.
Aisles need to be larger around browse products to ensure customers feel comfortable while they are shopping.
6. Impulse Products
These are the products that we did not plan to buy when we went shopping and can make up 60% of a purchasing spend.
To maximise sales these products need to be placed in major sightlines. Due to the amount of impulse items most retailers stock, the key is to rotate impulse lines on a regular basis.
7. Link Products
Link or cross merchandise products are allied products and are ideal “add on” sale products.
Examples are:-
Cameras and Film
Razors and Razor Blades
Video Players and Video Tapes
Plant and Pots
Strawberries and Cream
Cross merchandise displays show the customer you understand their needs and care for them.
In managing cross merchandise products you will often take two products from different product categories and place them next to each other.
Key points with link selling are:-
• Cross merchandising should use a minimum of two selected products
• Cross merchandise displays must have signage that clearly links the products together
• Displays must be topical and seasonal
• Whenever possible, price specials should be linked to add-ons.
• Displays must be kept simple to ensure all customers understand and get the same message
• Words used on cross merchandise displays should be positive (i.e. Remember you will need ….” “Secrets of Success”).
Cross merchandised products should increase sales by at least 30%.
8. Male/Female Products
Very strong female and male categories should be clearly separated. Males especially can get embarrassed if they find they have strolled into a strong female department by mistake.
Management Memo
You must convey the message you intend. If you have chosen an upmarket product range, the store must reflect this.
It must be clear to the customer who you are, what you are selling and in what price bracket you operate in.
Ref Retailing. How to Lift Sales and Profits
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