From manual layout to automated merchandising

Merchandising is one of the marketing tools used in the final stage of the sales process. Moreover, well-executed merchandising can trigger impulse purchases. Thus, the correct product layout saves the advertising budget, which would otherwise be spent on gradually "warming up" the potential customer.

Additionally, the right layout reduces the sales cycle—the time from the first informational touch of the customer with the product to the money in the cash register.

In general, merchandising conducted by a competent specialist achieves the following goals:

• Provides potential buyers with complete information about the product and its price;
• Attracts attention to the display location;
• Stimulates the store visitor to make an impulse purchase;
• Reduces labor costs by allowing the visitor to make a choice without the seller's participation;
• Creates a general psychological setting among store visitors;
• Increases the average check through the upselling of related products and impulse purchases that the buyer did not initially plan;
• Builds customer loyalty to the retail point and the product manufacturer;
• Prevents the emergence of competitor products.

Twenty years ago, sellers themselves were responsible for product layout. However, with increasing competition, merchandising has become a standalone science handled by professional merchandisers.

A merchandising specialist is required to have a comprehensive set of skills: they must understand consumer behavior psychology, demand management, and consumer properties of products; have entrepreneurial and administrative qualities, analytical abilities; be able to anticipate market trends and make decisions in high-uncertainty situations.

With such an approach, the human factor is primary in the success of the entire enterprise.

With the GreenShelf builder, you can design a general store layout, place virtual shelves, create several layout versions, and then select the best one.

In a separate module, planograms are created. Here, too, it is possible to create several versions of a planogram and then choose the most successful one. Similarly, product baskets are virtually created and then used to fill the virtual shelves. The shelves themselves are virtually mounted on the plan layout, allowing the most rational use of the entire retail space.

Besides, there is the ability to automatically generate planograms, taking into account all marketing agreements.

The possibility of virtually forming several versions of product baskets, planograms, and shelf placements allows for split testing and finding the most effective options.

A significant feature is that working with the builder does not require the extraordinary abilities demanded of traditional merchandisers: there is no need to have entrepreneurial talent, foresee market trends, or understand psychology. Yet, the end result—profit—is higher compared to the outcome of a traditional merchandiser.

The need for a large number of professional skills in a traditional merchandiser leads either to the need to pay them a higher salary or to lowering the requirements for the merchandiser, and consequently, the quality of their work. In contrast, for working with the builder, having completed secondary education is sufficient. Such an operator can be paid a very modest salary.

Tilda Publishing