Understanding Distribution and Merchandising: Strategies for Brand Success
This chapter provides a comprehensive overview of distribution and merchandising strategies that influence consumer behavior and brand perception. It highlights how the selling environment impacts product visibility and sales, focusing on the importance of targeted distribution channels such as specialty stores, department stores, and online retailers. Learn how brands can effectively utilize the "Consumer Strike Zone" to maximize shelf presence and sales velocity through strategic merchandising techniques, while also adapting product offerings to suit specific retail environments.
Understanding Distribution and Merchandising: Strategies for Brand Success
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Presentation Transcript
Distribution & Merchandising Chapter 9 Overview
Distribution • EVERYTHING COMMUNICATES SOMETHING ABOUT YOUR BRAND OR PRODUCT. • ESPECIALLY THE ENVIRONMENT IN WHICH THE CONSUMER FINDS IT.
Ubiquity to Exclusivity • Some products, like Coke, are suited to almost any distribution point. • Most products have very specific channels in which they should offer their wares.
The Shrimp Butler • Let’s define a list of the different selling channels that would be targets for the sales force.
Potential Distribution Points • Kitchen and Home Specialty Stores & web-retailers, and catalogs. • Upscale Department Stores (Nordstrom’s, etc) • Mass Retailers (Walmart, Kmart) • Club Stores (Costco, Sam’s Club) • Home Shopping Network
Changes in the Selling Environment • Levi’s • Apple Computers • Mrs. Field’s
Altering Product By Channel • TV’s • Club Stores (larger pack’s) • extend the purchase cycle • increase usage
Merchandising • The Consumer Strike Zone • 85% of product purchases come from “the zone”.
Messing With You • Many retailers will put top-selling items “outside the zone” because they know consumers will search around for them, allowing them to put slower-moving products “in the zone” and increase sales velocity.
Shelf-Presence • The Consumer Strike Zone • Brand “Blocking Strategies” • Special Display’s that only hold YOUR product (McCormick’s Spice Rack).
Tricks • Lighting • Music • Décor • Temporary Displays