Is it a good idea to sell merchandise for my brand? Everything about merchandising.

The use of merchandising has become extremely important when implementing a marketing strategy. After all, it is a method in which a whole range of products is designed to make it easier to promote a brand.

Have you ever seen the typical in-store advertising or the decorative elements that help arrange the products? This is done by large corporations as well as smaller companies with the sole purpose of increasing visibility. Whether it is effective or not, we will be discussing today.

What is merchandising? Why are more and more people betting on this style of sales strategy? If you don’t believe your company is suitable for developing a merchandising plan, pay attention below.

What is merchandising?

First of all, it is important to know exactly what merchandising is. A technique that allows sales of certain products to increase through the presentation of the product at the point of sale. That is, it is mainly applied in small stores and by distributors.

When we talk about merchandising, we refer to a sales strategy that takes into account everything that happens at the moment of selling a product. Therefore, it seeks to directly address the consumer who is interested in a particular item for sale in the store.

What is the ultimate goal? To generate that definitive impulse that will lead the potential customer to purchase the product. One that often fails, which is why customers do not end up deciding to make the purchase even when they are partially convinced.

How to take advantage of merchandising at the point of sale?

The main focus of merchandising is the point of sale, as this is where contact with the customer occurs. Because of this, it is necessary to know some strategies that will allow you to improve the sales of specific products.

Sections of the business

One of the most important details lies in improving the layout of the business through division into sections. That is, we know that stores are usually divided according to product categories. However, this organization must be more strategic:

There are products that induce impulsive purchases, and these should be placed at checkout. After all, it is expected that customers will buy them in quantity.
Products that require a more thoughtful analysis, such as appliances, should be fully displayed. Additionally, there should be enough space for the consumer to observe without problems.
Let’s not forget the products that generate greater attraction, known as magnet products. In a business, it is advisable for these to be located at the end of the space so that the customer must traverse most of it.
In merchandising, the organization of products that require more demanding handling stands out. For example, heavy products should be placed in areas that facilitate access and movement, especially when the purchase is imminent.
It is important to highlight that fresh products should be near the areas where they are prepared for the public.

Lastly, it is important to note that dividing a business into complementary sections helps to encourage the sales impulse in the consumer's mind. For example, placing appliances near the battery and battery section creates a synergy that motivates purchases.

Facilitates customer circulation

In large and small businesses, it is essential that customers can easily circulate through the sections. After all, awkward circulation decreases the chances of retaining the customer long enough for them to make a purchase decision. The merchandising strategies employed are:

It is important to establish separate entrances and exits to prevent collisions among consumers. This is accompanied by a layout of furniture, shelves, and other elements to create comfortable paths that allow viewing a wide variety of products.
Depending on the size of the business, it will be necessary to have elements that allow guiding the consumer. This way, it will be easier for them to head to the products they are looking for.
Regarding the information that is placed, merchandising strategies at the point of sale must be applied perfectly. This means there can be no incorrect information, as this only generates misunderstandings and can cause the customer to get lost.
The aforementioned elements should encourage the customer to remain in the commercial establishment for the sufficient time necessary to observe all the products and decide what they will buy.

It is clear that the layout of the point of sale is indispensable for a good merchandising strategy. This is because it is not only about the product you want to sell but also about the place and the moment you place it for sale. Hence, it is necessary to think about organizing a comfortable point of sale for the consumer.

Cold and hot points of sale

Within the analysis to establish a point of sale based on merchandising, we must talk about its location. After all, we can always find sites that are beneficial and others that are not for selling certain products:

Hot points are those where foot traffic tends to be very high. This means they are the ideal place to set up a business since a large number of people will be passing through that area and may be interested in that store.
On the other hand, cold points tend to have moderate to low traffic. It is usually difficult to increase sales in them unless a more aggressive merchandising approach is taken.

We would always like to access hot points of sale where we can ensure many sales. However, this is not always the case, which is why it is important to resort to strategies that can transform such locations. This way, we can attract the buying behavior of customers.

What can be done? Tips like improving the lighting of the announcements and the location in general. Establishing promotions and offers with announcements and merchandising pieces that increase visibility. Promoting tastings and demonstrations to introduce new products and many other strategies.

Know some merchandising elements

Certainly, there is not just one way to apply merchandising. Companies have managed to design different strategies to generate that impulse that increases the chances of sales. Among these, we can mention the following:

Stopper, which is based on a piece of advertising that stands out on the shelves where the products are. Thus, a person walking in front of them will focus their attention on this regardless of how far they are from the products.
Clip Strip, the typical strips on which products hang one above the other vertically. It is known that using these strips, known as cross strips, allows several different products to be placed in one spot. This increases their visibility without one overshadowing the other.
Wobbler, advertisements that protrude from the shelves where the products are located. While they resemble Stopper merchandising pieces, they differ from the latter because they project forward. They are often used for special promotions to generate the purchase action.
Floor adhesive, a method used to direct people straight to where a promotional product is located. Of course, it is necessary that this is made with materials that can withstand constant foot traffic.
Mobiles, pieces that make the products hang from the ceiling. This greatly attracts the consumer's attention as they stand out above all the products we can place on shelves and gondolas. Promotional messages are often applied to encourage purchase decisions.
Promotional banner, a very used element when it comes to generating visual merchandising. It involves using promotional pieces that incorporate messages and images that help promote products.

As we can see, the different merchandising strategies have the main objective of attracting the consumer's attention. That is, we prioritize certain products so that they sell more easily. However, what are the real benefits of merchandising?

Know the benefits of merchandising

Regardless of the type of merchandising you are applying, it must be adapted to your business. This way, you can obtain all the benefits that this marketing strategy generates, among which we can highlight the following:

Improved design in the store or business

When a person decides to start a business, they must always consider its layout. That is, the configuration of spaces so that they are attractive enough for customers. The use of merchandising actions is very effective in achieving this.

Decorating by applying a merchandising campaign is fundamental for any business to be more attractive. Thus, people who enter your business will feel more comfortable in it, making it harder for them to want to leave.

Attracts more people

Thanks to merchandising elements, it is very easy for people to feel attracted to the products you sell. We are not only talking about them staying longer inside the store, but also about entering just to see what you have.

Is it worth having people enter who have no intention of buying? Absolutely. The more people enter to observe your products, the greater the chances you have of closing sales. This is why merchandising is so important when it comes to improving interaction with consumers.

Increases sales

We have already mentioned this because it is the central objective of merchandising actions. Generating an impulse through the emotions of the potential consumer is the reason for applying this marketing strategy.

Economic performance

Let’s not deceive ourselves; whenever we want to implement marketing in any of its forms, we must make a considerable expenditure. However, when we talk about merchandising, we can say that it is a strategy that is not extremely costly.

In fact, working with this type of strategy to increase sales is very profitable. This is why smaller companies see this as a good opportunity to gain recognition.

Clearing out products

In many cases, companies must face the fact that a product does not sell as frequently as they would like. However, with merchandising methods, this can be avoided from becoming a real problem.

The key is to increase the visibility of the products we want to clear out. If we combine this with a special promotion, we can quickly sell any item regardless of the problems we have had in achieving it.

Leverage magnet products

How many times have we entered a store simply because they have a trendy product? This happens a lot, and it is also something that can be leveraged to generate more sales.

The key is to focus merchandising actions on those products that represent a sure sale or that are in high demand. This way, buyers will enter the store or business for it and see other products that might be of interest. This is how to generate an increase in sales through a single product.

Examples of merchandising use

Anyone can tell us that using merchandising is the best for our business, but humans are convinced by facts. Not only that, but often the work of other companies helps us gain inspiration that allows us to design strategies aligned with our business.

Merchandising strategies are based on creativity, planning, and shared ideas to increase sales. What are businesses doing to make this a reality? Let’s find out:

IAMS Frisbees

You have probably heard of the famous pet food brand IAMS. They implemented a merchandising strategy that perfectly fits into general marketing. Additionally, with a touch of humor that allows penetration into the consumer's mind.

A pet food manufacturer wants to show that its product is ideal for the growth and development of dogs and cats. This is the idea behind IAMS starting a merchandising campaign in which they distributed frisbees shaped like gym weights. Something positive because:

By distributing them in parks, they are seeking customers in an area where there are many opportunities to reach them. Dog owners tend to walk them regularly in such spaces.
Frisbees are an infallible element since most dogs love to play. Thus, IAMS ensures that people see the message and interact with them.
The gym weight shape helps to communicate the message clearly. Dogs will be stronger by consuming IAMS products.

It may seem simple, but the merchandising campaign used by IAMS is very well thought out. Of course, they step a bit away from the point of sale in search of customers in areas where they tend to concentrate.

Colgate and ice cream popsicles

We know that kids love ice cream, but it often causes many dental problems. Sugar consumption, in general, is a catalyst for the development of cavities, one of Colgate's enemies.

How to generate a message aimed at the little ones about the importance of brushing their teeth? Colgate opted to give away ice cream in establishments where their products are sold. What’s the trick? When kids finished their ice cream, they found a toothbrush inside:

It attracts the attention of a target audience like children, who are not usually the first fans of oral hygiene.
It uses an element that kids love so they can receive the message of the merchandising strategy.
It conveys that after eating sweets, it’s time to brush.

The use of creativity to enter the consumer's mind is extremely important, and Colgate demonstrates this. This strategy has surely generated a positive impact on how younger people perceive the brand.

Impactful messages

Whoever only sells a product may not be selling anything. What is important? Of course, offering quality products is fundamental, but these must be accompanied by an experience. It is this experience that induces a customer to make a purchase action again in the same place.

The Indian Face stands out as a company that sells clothing for extreme sports, but it goes much further. They emphasize the decoration of the store to create a different shopping experience:

The messages dedicated to the freedom of the spirit before launching on a bike, skateboard, or any other activity are important. That’s why these are part of the brand identity, and you can see them in various parts of the store.
It highlights black and white photos that seek to convey the sensations of athletes seconds before falling, jumping, or launching.
They apply techniques like placing the most attractive clothing in the areas farthest from the entrance. Additionally, they fold them so that the customer feels compelled to touch and evaluate them closely.

The Indian Face is a company that has something very important: a clear identity. Thanks to this, the team knows exactly how to give character to their store to attract consumers and increase sales.

Providing information at the point of sale

Have you ever thought about how many customers are lost just because they don’t know how good your products are? In the spy store, a Spanish business dedicated to “Espionage” products, they have decided to save themselves that problem:

They use a “Seductive” advertisement with the message “Who are we going to spy on today?” This is a clear reference to the products they sell, trying to attract consumers.
Each product in the display window and inside the store has a small card with details about it. This way, the problem of customers having to ask questions about them is avoided. Something that helps them make the purchase decision more quickly.

Of course, the use of informational signs in the spy store is due to the fact that their products are not common in many places. Therefore, it is necessary to help the potential consumer get an idea of whether or not they should make the purchase.

Art with products

This example does not focus solely on one company, as there are many businesses that take advantage of this trick. Have you ever entered a store or supermarket and seen sculptures made from the same products they sell?

You probably understand what this is about. It involves stacking products in a specific shape, even emulating figures like animals or vehicles. This is an excellent merchandising strategy because:

It is infallible for attracting kids, as they are greatly impacted by this type of creation. Of course, our main interest is that their parents accompany them and decide to make a purchase process with the products used.
When a product has low turnover, this is also an excellent strategy. It is a way to promote those items that may not be selling as they should.
It helps to generate spaces in the store or point of sale to facilitate traffic. Remember that in merchandising, the circulation of people is very important so they can move around the place without problems.

In addition to applying sculptures or creative formations with products, these can be combined with other merchandising elements. For example, promotional banners and wobblers to create an advertising space dedicated to a product.

Is it important to have merchandising strategies?

With everything we have discussed, perhaps the question answers itself. However, it is worth specifying what the most important points are that make merchandising so fundamental for any business:

Increases interaction of your potential consumers with the products you are offering. Even if many do not make the purchase decision, there are more chances that the opposite will happen.
Learn to sell products at the right time and place. For example, taking into account details like location, weather, time of year, and other factors that affect the demand for certain products. These factors help to know when to give greater visibility to certain items.
Utilize the senses of the customers, beyond sight. Smell, hearing, and taste can also be very important in generating that impulse to buy. Merchandising strategies do not focus on a single stimulus for potential customers.
Focus on the customers who are already there and those who will come. Merchandising also aims to improve customer loyalty, making them feel comfortable in your business. This is how sales improve considerably.

Of course, to access so many benefits, you cannot do the work alone. Merchandising strategies are developed by professionals with experience in managing points of sale. They are the ones who can carry out planning according to your interests.

Contact the best for merchandising strategies

Initially, we wondered if merchandising was really important for a company. However, now we can say that it is a key element to increase sales, which is the goal of any business. Hence, it is important to have professionals who can help you achieve this:

It should be a team that has already had previous merchandising projects. After all, experience is what you really need to make decisions that will improve sales volume.
If possible, the agency you hire should be in your area or close to you. After all, it is important to make visits to make decisions that will help improve customer interaction.
It is also important that it is an agency that listens carefully to all your needs from the very first moment. Communication is important to implement methods that truly work for your business.

Do you think it would be difficult to find all this in one place? The truth is no, as Mintec stands out as the best option when it comes to managing merchandising and digital marketing needs for your business. An agency designed to maximize your profits through a sales strategy.

Connect with your customers thanks to Mintec

At Mintec, we have focused on creating all kinds of strategies and services with a single goal: increase sales. That is why we are the best option both in Honduras and Wyoming for creating plans that allow you to improve your business performance.

There are too many things we can do to obtain more income, and we usually don’t even know half of them. However, with experts in the field, it will be much easier for you to manage merchandising and marketing strategies.

Do you want to know more? We are always ready for your questions and requests. On our website, you will find the contact section with all the information so you can speak directly with us. Let’s start working for a prosperous business, with more sales and consumers.