The ongoing pandemic has clearly changed our shopping habits and, above all, reduced our visits to the shop. It has accelerated the shift towards a more digital world and triggered changes in online shopping behaviour.
A study conducted by UNCTAD and Netcomm Suisse eCommerce Association, in collaboration with the Brazilian Network Information Center (NIC.br) and Inveon, shows that online shopping has increased by 6 to 10 percentage points in most product categories. The biggest gains were in electronics, gardening, pharmaceuticals, education, household products and cosmetics.
However, traditional shops have not disappeared and neither have the ways that lead to increased sales in the retail shop.
Have you ever thought that a shopping trolley is running very slowly or thrown in a product that you don’t really need? Advertising supposedly has no impact, yet the placement and presentation of merchandise in a shop? Let’s take a better look at merchandising, which has not gone away.
The place where the product is placed is very important. It determines whether it will be noticed and bought. The more time you spend in the shop, the more likely it is that you will eventually notice it. Hence, in most hypermarkets, the bakery stalls, groceries, cosmetics or small household appliances, which belong to the so-called Fast Moving Consumer Goods (FMCG), are located at the end of the shop. Along the way, you’ll hit other stalls and fill up your basket. This is why, for example, fruit, vegetables and bread are not close to each other. I think everyone has at least once asked themselves – where are the eggs? Probably nowhere near milk or bread. Ikea, for example, uses a similar logic, placing small stalls behind the checkout and leading us to the exit through long labyrinths.
And have you noticed that the shelf racks are always long? What is more, the goods are arranged in large numbers and constantly replenished so that there are no empty spaces. In this way, our search for a particular product becomes longer and we also have to browse through other products. Aisles cannot be too long either, because then there is a boomerang effect and the customer turns back halfway.
The correct positioning of products on the shelf is another method. The intensive shopping zone is located at the checkouts, at the crossing of the aisles and in the mid-section of the shelf. Shelf height is also of great importance. The most expensive products are at women’s eye level, with an average height of 153 cm. Women make up 70% of consumers. The cheapest goods and private labels are placed at the very top or at floor level to discourage the price-conscious consumer.
A method for getting rid of lower quality products or those with short expiry dates is to display them at separate positions inside the shop, e.g. in a pyramid, at the front of a shelf or in baskets. Usually the displays are very attractive and inform about a special occasion/promotion etc. To ensure that these products do not look worse than others, they are often arranged very loosely to give the impression that a lot is being sold.
With the right choice of colours we can attract customers and evoke certain emotions. Colour helps with branding. There are some universal and scientifically proven associations that are determined by evolution and culture. It is no coincidence that the red colour is used for promotions, sales and discounts. It is a colour that strongly stimulates and influences the speed of reaction, e.g. Coca-Cola, H&M. Green is associated with nature, peace, freshness and inspires a sense of trust – Bank Zachodni WBK, BP, Android. There is no colour more energising than yellow – Ikea, McDonald. Blue is associated with water and the sky, giving a sense of security. It’s great for promoting drinks-based assortments – especially in the summer. Be careful with blue for food items as it suppresses the appetite.
It’s great to build stories around your products, creating characters that customers can identify with in their everyday lives. Here it is also often worth playing with emotions. Sports shops, for example, focus on the passion for travelling, camping adventures and sporting achievements. Whereas jewellery shops such as Apart create stories about love, commitment and intimacy.
Marketers also take advantage of the seasonality of the products in question. That’s why most promotions and sales, e.g. Christmas, spring etc., are located right at the entrance to the shop on the right. When we enter the shop we are still relaxed and with money, so it is easier for us to be tempted by the so-called “bargain” and quickly add something to the still empty basket.
It is also common to exploit the so-called childish propensity for promotion. It is scientifically proven that children can effectively encourage their parents to buy a given product. Hence, many products are placed within their sight. Gadgets are added to adult products to attract children’s attention. With children in mind and their influence on purchasing decisions, pushchairs with child seats or in the shape of toy cars etc. have been invented. This is to encourage parents to take their children to the shops and thus spend extra money on toys, yoghurt and sweets, etc.
Products are also placed in the right order. When entering an aisle, we subconsciously follow the right-hand rule, i.e. we observe the assortment on our right. To this we can add the principle of the left eye, which means that the goods are arranged from the most attractive on the left to the less attractive on the right. Logic is also important. Hence, products of the same category are placed next to each other and adjacent to related articles, e.g. dips next to chips, or biscuits next to coffee and tea. This increases sales of both.
Marketers will encourage us to make additional purchases especially at the checkouts. How many times have you been in a queue and thrown a few trinkets into your basket? Have you felt guilty afterwards? After all, one more thing does not make any difference. Nothing could be further from the truth. These products, despite appearances, have the highest margins. That is why the number of checkouts open is such that there is always a queue in front of them.
Of course, there are even more ways to position your product. When planning each action, it is worth having a well-thought-out strategy, defined target group and appropriate advertising materials. Kamreno marketing agency will tell you how to achieve your business goals regardless of the size of your company.