Archives for May 2015

How to Successfully Cross-Merchandise in any Aisle

The Art of Cross Product Promotion

Cross merchandising is an art form that involves far more than a grocery store manager deciding where to pair bananas with cereal displays. “Cross merchandising is important because people buy solutions not products and retailers tend to sell products and not solutions. So they need to combine things that tend to cross departments,” says Neil Stern, senior partner with McMillan Doolittle, a retail consulting firm in Chicago (source: about.com).

bingdisplay

“In general, placement can lift the sales of different items,” Venky Shankar, professor of marketing at the Mays Business School at Texas A&M University, told United Press International (source: Retail Now case study). “It’s true across the board, but the amount depends on categories.”

Why It Works

A case in point is the pairing of chips and soda pop. When displayed adjacent to one another, soft drink sales increased up to 9% while chips remained the same. “If you are shopping for chips, you may remember you get thirsty when you eat them, so you buy soda,” Prof. Shankar told UPI. “But if you stop at a gas station because you’re thirsty, you probably aren’t going to buy chips.” (source: UPI)

At West Point Market in Akron, Ohio, produce shoppers can sample new-crop autumn apples with cubes of cheddar, an experience that boosts sales of both. At Central Markets in Texas, the cheddar is pre-cut into approximately $6 portions and displayed atop of an uncut block of cheddar alongside apples to prompt an impulse purchase (source: Specialty Food Association).

Pre-cut Gruyère with Anjou pears also tempts Central Market shoppers. “We see huge jumps in sales when we put cheese in produce,” says Debbie Harris, cheese merchandiser for the 10 New Seasons Markets, all in the Portland, Ore., area. Aged Gouda in pre-cut $4 portions sells well when merchandised with apples and pears and can remain un-refrigerated longer than cheddar’s, Harris says. (source: Specialty Food Association).

Keys to Success

To achieve success with cross-merchandising there are four ingredients that are critical to making your display work:

Correlation: Group together products that are related in some way. For instance, an electronics retailer might display some popcorn or beverages near their DVDs and Blu-Ray movies.

Relevance: Create your product display around a central theme. Cluttering it with unrelated products and no central theme will only reduce its effectiveness as a marketing tool.

Performance: After setting up any cross-merchandising display, pay close attention to your sales in the weeks and months to follow. If it’s not performing well, don’t be hesitant to make some changes.

Profiling: Think like a customer. Ask yourself — does this display make me want to buy the product? If you answered no, it’s probably time to re-think your product display.

The Takeaway

In the end, cross merchandising is much more than the rearranging of product from one department to another. It’s all about creating a theme – ultimately finding and promoting the thread that ties the featured products together.

When done right, cross-merchandising can drive more sales and higher profits. It’s a simple marketing technique that nearly all of the nation’s top retailers use and a strategy that Fresh Source leverages for many of its product vendors.

Leith Anderson Joins the FreshSource Team

Leith Anderson, Vice President of Sales, FreshSource Pacific Northwest

Leith Anderson, Vice President of Sales, FreshSource Pacific Northwest Leith Anderson is joining FreshSource in the Pacific Northwest as the company’s Vice President of Sales where he will lead the Seattle and Portland markets. Prior to joining FreshSource, Leith was formerly a Fresh Business Manager for Acosta Sales & Marketing. His experience, which ranges from roles with Fresh & Easy Neighborhood Markets, John Morrell Food Group, Daymon Worldwide, Coffee Bean International, and Coca-Cola, will help boost FreshSource’s expansion into the Pacific Northwest.

“We are extremely excited about this fantastic combination of events,” said Robert Thomspon, FreshSource Founder. “As a company, we’re flattered that our work ethic and reputation continues to attract tremendous talent from the industry. This long-awaited expansion into the Pacific Northwest is perfectly complemented by the acquisition of Leith Anderson, a solid well-respected professional.”

Thanks to Leith’s addition in the Pacific Northwest, FreshSource has now secured itself as a complete West Coast broker.

How to control product shrinkage by customers

Damage Control in the Produce Aisle 

For the uninitiated, fresh produce shrink is common to every produce department and is mainly caused by the handling of the product, which in turn induces enough damage to make the product unsellable at its full potential price. Unfortunately, the people involved in what’s technically referred to as ‘mechanical damage’ happens to be customers and employees. Thousands of hours and collective brainpower have been harnessed to combat this conundrum.

Produce Shrinkage - Bell Peppers

Shrink from customer interaction is typically caused by over handling or dropping of fragile items in a way that causes bruising or exterior damage. FreshSource takes a hands-on approach to helping produce managers understand how to best handle and display products we represent, with field representatives visiting stores and visually inspecting displays on a daily basis.

Below are five best practices that we advocate to reduce shrinkage from customer handling:

  1. Positioning: Do not place products on too steep of an angle — as customers shop, it increases the likelihood that the product will tumble to the floor and crack or bruise.
  2. Display: Position products in a manner that is easy for a customer to pick up and inspect. Displaying your broccoli all-stems-down may have an excellent visual appeal, but each customer will be grabbing the product from the top and breaking or crumbling portions of the florets every time they examine the display.
  3. Communication: Place a sign or sticker to indicate that a product is ripe so that customers do not feel the need to squeeze every peach or avocado in your perfectly arranged display.
  4. Packaging: Place loose items like field greens and beans in containers or bins that reduce the likelihood of the product being dropped or stepped on.
  5. Signage: For heavy items that require a helping hand, use sign displays to encourage shoppers to ask for assistance loading their cart. This will reduce waste from melons and pumpkins accidentally splattering onto the floor.

Although most produce departments come staffed with fully competent management and personnel, FreshSource ensures each store has the equipment they need to display and distribute our product vendor inventory 24/7/365.

Have questions regarding product shrinkage and how you can combat it? Reach out to us today for a complimentary product evaluation and we will provide you with tangible ideas on how to keep your displays in optimal condition.

 

© 2017. All Rights Reserved.
Website Design & Hosting by The Aspire Company