ASSORTMENT DISPLAY ANALYSIS

CONSUMER GOODS & MERCHANDISING

SUPAT IMYOO

Hypermarket - AUCHAN LA DEFENSECategory – Tea/Infusion sectionRole of category – Routine Category : Auchan wants to draw the traffic to the store by proposing a wide range of products and categories that most of consumers typically put on their shopping listExpected strategy Auchan is a hypermarket that offer a wide range of assortment including; international brands, national brands, regional products and also house brands. Its pricing strategy should be 20/80 model. Its merchandise should be arranged in warm and cold zone. They don’t require that much promotion within section because it’s a routine category which customers would buy it anyway.

TEA/INFUSION SECTION

Tea section located in warm zone, close to the entrance and opposite the cashier line. Its neighbor categories are chocolate, cereal, coffee, jam biscuit…

Degrees of segmentation Groceries

Perishable

Food

Beverage

Non-alcohol

Breakfast

Tea & Infusion

STRUCTURE OF THE SHELVES

Customer key inputs Type

Brand

Flavor

Size

Price

Presentation structure Products are vertically arranged by criteria above

CUSTOMER’S CIRCULATION FLOW

Customer’s circulation flow begins from the warm zone in which customer will see Auchan’s house brand first followed by the most selling products like Lipton and Twinning. If customer already knows what they want in their mind they probably grab one from the warm zone while cold zone are the products that less likely to be sold.

WARM COLD

THE FACINGProducts are generally the same size it’s also done to keep the store appearing neat and organized. Normally stock will be refilled near closing time but it’s the festive seasons when I visited the store so they have stockers to refill the stock even in the midday. Potential products are placed in the warm zone and at eye level. Promotions are found not only zone and place but also In-store Advertising that could boost the sales.

Recommendation: As it’s a Christmas Auchan should arrange or highlight teas that relate to Christmas. Private brand (Auchan in RED) seems to be presented more than it should be, this could affect other brands

20/80 is a strategy as we know that 80% of company’s revenue is derived from 20% of its products. According to Auchan La Defense: Tea section, its 20% of products that could generate 80% of its revenue are those products in the warm zone such as Auchan and Lipton which place at the eye and hands level. Its main brands are Lipton, Elephant and Twinning. The private brand (Auchan) is placed in every level of presentation and almost every range.

Auchan5.99 e

Ricola 2.69 e

Ricola4.00 e

Ricola3.81

Twinings5.10 e

Lipton5.95 e

Twinings 6.79 e

Tetley3.49 e

Twininngs 4.85 e

Auchan1,20 e

Auchan 1.20 e

Lipton2.54 e

Auchan1.47 e

Twinings2.42 e

Lipton2.39 e

Lipton 2.23

Tetley3.25 e

Auchan 0.85 e

Auchan1.27e

Auchan 1.20 e

Lipton2.30 e

Elephant 2.51 e

Auchan0.79 e

Tetley1.89 e

Lipton2.36 e

Tetley5.64 e

Auchan 3.21 e

Auchan1.00 e

Elephant2.00 e

Lipton2.11 e

Lipton2.06 e

Twinings3.59 e

Lipton1.93 e

Lipton2.43 e

Tetley1.82 e

Auchan1.03 e

Auchan1.99 e

Elephant2.15 e

Lipton1.93 e

Lipton2.30 e

Twinings2.95 e

Lipton3.39 e

Lipton2.46 e

Tetley2.99 e

Lipton1.87 e

Auchan2.00e

Elephant1.80 e

Lipton2,09 e

Lipton2.12 e

Twinings2.36 e

Lipton2.27 e

Lipton2.04 e

Tetley2.99 e

Lipton 1.87 e

Auchan2.00 e

Elephant2.20 e

Lipton2.03 e

Lipton2.12 e

Twinings2.49 e

Lipton2.01 e

Lipton1.71 e

Tetley2.99 e

Lipton1.87 e

Auchan2.15 e

Elephant1.90 e

Lipton1.97 e

Lipton4.69 e

Twinings2.89 e

Lipton5.69 e

Lipton3.99 e

Tetley4.68 e

Lipton2.45 e

HAT

EYES

HAND

FOOT

Auchan private brand seems to be highlighted more than other brands as we can see from the first photo (left), Auchan brand is placed at the first column of the shelf under “TEA” which is the warm zone and when customers read the name of the section they can see Auchan brand right away. More over, Auchan also has In-store Advertising “10% off every Tuesday for Auchan products” (middle). If customers don’t read it carefully they might think it’s 10% off wherever this ISA is placed regardless its position. For Twinings, its In-store Information (right) is not about sales but to inform their change but this could help the brand boosting its awareness and might increase its sales volume.

Auchan5.99 e

Ricola 2.69 e

Ricola4.00 e

Ricola3.81

Twinings5.10 e

Lipton5.95 e

Twinings 6.79 e

Tetley3.49 e

Twininngs 4.85 e

Auchan1,20 e

Auchan 1.20 e

Lipton2.54 e

Auchan1.47 e

Twinings2.42 e

Lipton2.39 e

Lipton 2.23

Tetley3.25 e

Auchan 0.85 e

Auchan1.27e

Auchan 1.20 e

Lipton2.30 e

Elephant 2.51 e

Auchan0.79 e

Tetley1.89 e

Lipton2.36 e

Tetley5.64 e

Auchan 3.21 e

Auchan1.00 e

Elephant2.00 e

Lipton2.11 e

Lipton2.06 e

Twinings3.59 e

Lipton1.93 e

Lipton2.43 e

Tetley1.82 e

Auchan1.03 e

Auchan1.99 e

Elephant2.15 e

Lipton1.93 e

Lipton2.30 e

Twinings2.95 e

Lipton3.39 e

Lipton2.46 e

Tetley2.99 e

Lipton1.87 e

Auchan2.00e

Elephant1.80 e

Lipton2,09 e

Lipton2.12 e

Twinings2.36 e

Lipton2.27 e

Lipton2.04 e

Tetley2.99 e

Lipton 1.87 e

Auchan2.00 e

Elephant2.20 e

Lipton2.03 e

Lipton2.12 e

Twinings2.49 e

Lipton2.01 e

Lipton1.71 e

Tetley2.99 e

Lipton1.87 e

Auchan2.15 e

Elephant1.90 e

Lipton1.97 e

Lipton4.69 e

Twinings2.89 e

Lipton5.69 e

Lipton3.99 e

Tetley4.68 e

Lipton2.45 e

HAT

EYES

HAND

FOOT

According to the table above Double placement is found from several brands such as Aucan, Lipton, Twinings, Tetley, and Elephant. Auchan tries to penetrate into every section from warm zone to cold zone, from Hat level to Foot level. Since Auchan is considered as ‘lower price’ its presence could damage other surrounded brands while Lipton, Twinings, Tetley and Elephant are placed in different places in order in increase its visibility which could be led to sales