Building an Effective Merchandising Strategy: 3 Keys

graphic of CPG products on shelves to illustrate effective merchandising strategy
April 13, 2023

Although direct-to-consumer methods help you cover all possible channels, in this article we’ll talk about an effective merchandising strategy in-store.

Why is this still important?

Recent CPG research in North America found that in-store shopping is still the go-to for CPG products.

That’s reason enough to get it right! You sure don’t want to be plagued with the following thoughts when your visual merchandising has missed its mark:

  • “I may have overestimated the product’s appeal to customers or misjudged the competition in the category.”
  • “I should have conducted more research on the store layout and customer shopping behavior before determining the product’s placement.”
  • “Perhaps we assumed that a certain area of the store would be more effective than it actually was. Next time, I need to gather more data and insights to make a more informed decision.”

So – here are three keys to building an effective in-store merchandising strategy to increase sales!

Merchandising Strategy 1: In-Aisle

The right brand block on the shelf is crucial. This means being sure the specific group of products from your brand is visually pleasing and encourages shoppers to purchase. But to achieve that, the block needs to be

  • well organized,
  • at eye level, and
  • in high-traffic areas.

The overall goal for effective in-aisle merchandising and brand block placement is to make it easy for shoppers to find the products they’re looking for and encourage them to look no further!

Merchandising Strategy 2: Permanent Secondary Location

An effective merchandising strategy also involves consistency. So – in addition to its primary location, your product or brand will have a permanent secondary location in a specific area of the store. Customers need to find what they’re looking for fast. Otherwise they notice other brands!

Your secondary permanent placement needs high footfall and might be

  • another shelf area,
  • a specific end cap,
  • near checkout,
  • near a complementary product, or
  • a separate display stand.

You’re aiming to boost sales by increasing visibility and exposure (they’re not the same!).

This “double sighting” from the in-aisle positioning and a permanent secondary location leads to more familiarity with your brand – and possible impulse purchases.

Merchandising Strategy 3: Temporary Secondary Location

You might choose to have a temporary secondary placement if there’s a specific event or promotion coming up. This is an effective merchandising strategy to increase sales during a brief period.

A shipper is often most suitable. It’s certainly effective for holding multiple units of your product (think alcohol at Christmas, or eggs at Easter!).

And the shipper is often best placed near the store entrance or in front of checkout lanes. In other words, areas of high visibility for a sense of urgency – necessary for capitalizing on the event!

A similar sense of excitement or urgency can also be aroused by using a feature display in the center aisle.

Shoppers in physical stores move round, look, have expectations, and make comparisons in a different way to online.

Coordinate Your Merchandising Strategy!

Supplier and distributor relationships always need to work effectively for merchandising in retail stores, including

  • communicating well,
  • identifying opportunities for better placement, and
  • monitoring effectiveness via data analysis.

Read more about winning at store level.

Or about steps to get your product on the shelf.

Momentum CPG Can Help You Build Merchandising Strategies to Increase Sales

Momentum CPG brings years of experience in every channel, retailer, market, and category.

You can trust us to help you gain sales ground – by renewing your strategies, processes, people, and partnerships to build an effective merchandising strategy. Let’s talk today!

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Building an Effective Merchandising Strategy: 3 Keys
Your effective merchandising strategy in-store still matters - read our three keys for placing your products correctly to grow your sales!

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