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To all my dear friends ,, brothers ,,
colleagues ,, managers ,, team who
support me , motivate me ,, gave me the
true beloved advice ... Who learn me to
be an ambitious and curious to learn ,,
search for the goals and hungry to know
a lot about all the fields in my life ....
Through more than 8 years of working
in FMCG i learned that the success and
progress didn't come by luck but by the
hard work and challenge your self and
ur obstacles ...... The more u work and
learn ..... The more u can achieve your
targets .....Thank u .... I appreciate all of
ur efforts
First You must see this video
https://www.youtube.com/watch?v=mA
7ms-6wTeq
Decision Making Unit
Individuals who make up the DMU
The decision Making Unit (DMU) is a collection or team of individuals who
participate in a buyer decision process . Generally DMU relates to business or
organisational buying decisions rather than to those of a family for example.
There are a number of key players in this process namely the initiators, the
gatekeepers, the buyers, the deciders, the users and the influencers. Let’s
consider these individually prior to applying the decision making unit to an
example of organisational buying.
Influencers
Influencers are those who may have a persuasive role in relation to the
deciders. They may be specialists who make recommendations based upon
experience and their knowledge of products and services. Examples are
consultants employed by businesses to help deciders make a final decision, or
another example might be lawyers employed to offer legal advice. There are
also informal influences such as family and friends, and people that you meet at
trade associations or informal gatherings.
The relationship amongst the key players will be different for every
organisation and in every purchase situation. Individuals may influences as
well as initiators, and therefore none of these categories is mutually exclusive
i.e. stand alone, since there is much crossover and blurring around the edges of
roles.
Initiators
Initiators are the players who recognise that there is a need to be satisfied or a
problem to be solved. This might come from a drive for efficiency due to the
fact that some equipment will need replacing. There could be many reasons
which stimulate the initiation.
Gatekeepers
Gatekeepers are individuals who press the stop/go button in the process. Often
gatekeepers will be proactive in searching for information and delivering
recommendations for those decision-makers further up the line. On other
occasions gatekeepers can be seen stalling the flow of the decision-making
process.
Buyers
Buyers are the professional function within an organisation generally
responsible for purchasing. They are given a brief with a series of criteria
against which to judge potential products or services, and their suppliers. They
tend to be responsible for sourcing and negotiation.
Deciders
Deciders in a large organisation certainly are responsible for making the final
deal or decision. Their role carries the responsibility of placing the final order.
They might be senior managers or agents acting on behalf of an organisation in
the market. The deciders will review information provided from lower down
the buyer decision process from the buyers, gatekeepers and the original
initiators.
Users
Users are those who put the service or product into operation once the deal has
been clinched. Their opinions will be important especially if they are using
manufacturing equipment, flying aircraft, using software to improve customer
satisfaction, and so on. Users will be heavily involved in the post-purchase
evaluation phase of the buyer decision process.
Market penetration
Definition
It measures the brand popularity. It is defined as the
number of people who buy a specific brand or a category of
goods at least once in a given period, divided by the size of
the relevant market population. Market penetration is one
of the four growth strategies of the Product-Market Growth
Matrix as defined by Ansoff. Market penetration occurs
when a company penetrates a market in which current or
similar products already exist. The best way[citation needed]
to achieve this is by gaining competitors' customers (part of
their market share). Other ways include attracting non-
users of your product or convincing current clients to use
more of your product/service (by advertising, etc.). Ansoff
developed the Product-Market Growth Matrix to help firms
recognize if there was any advantage to entering a market.
The other three growth strategies in the Product-Market
Growth Matrix are:
Product development (existing markets, new products): McDonalds is always
within the fast-food industry, but frequently markets new burgers.
Market development (new markets, existing products): Apple introduced the
iPhone, in a developed cell phone market.
Diversification new markets, new products
Purpose
Often, managers must decide whether to seek sales growth by acquiring
existing category users from their competitors or by expanding the total
population of category users, attracting new customers to the market.
Penetration metrics help indicate which of these strategies would be most
appropriate and help managers to monitor their success. These equations might
also be calculated for usage instead of purchase
Construction
Market penetration can be defined as the proportion of people in the target who
bought (at least once in the period) a specific brand or a category of goods.
Two key measures of a product’s 'popularity' are penetration rate and
penetration share. The penetration rate (also called penetration, brand
penetration or market penetration as appropriate) is the percentage of the
relevant population that has purchased a given brand or category at least once
in the time period under study. A brand’s penetration share, in contrast to
penetration rate, is determined by comparing that brand’s customer population
to the number of customers for its category in the relevant market as a whole.
Here again, to be considered a customer, one must have purchased the brand or
category at least once during the period
ROI ?
No company can hope to remain viable or even grow, without closely
monitoring the effectiveness of its advertising. In the current economy no
corner of a company’s expenses is going without scrutiny, especially marketing
and promotion costs.
The benefits of return on investment data works both ways, it may identify lost
causes per strategy or locations. Conversely, the calculation might also
highlight a strategy that deserves even more financial support.
The negative results of making expenditures which do not contribute to profits
are obvious. A company’s inherent marketing goal is to direct its efforts toward
activities which produce a desired outcome, usually sales but could also include
interim steps toward a sale, attendance at events, subscriptions, sample
downloads and other such activities by its prospects.
A popular method of measuring whether a firm is getting its money’s worth
from promotions is by the calculation of Return On Investment (ROI). Return
on Investment is a metric that measures profit associated with each investment.
Although methods and approaches may vary the calculation below will yield a
basic return on investment result:
Return on Investment % = Profit – Investment / Investment
(result expressed as percentage)
Data needed to calculate Return On Investment (ROI):
Annual Profits (income minus expenses)
Annual Promotion Expenditures (costs per promotion measured)
Obviously many other variables can be added to the mix to support particular
promotion expenditure, but utilization of the formula above will aid in making
key budget decisions within the marketing category. For example, with
available data a company may be able to use the formula to compare promotion
methods such as newspaper advertising, radio or direct mail. They might also
be able to gather return on investment based on specific stores or even regions
depending on company size.
SWOT vs TOWS
SWOT vs TOWS
Though SWOT and TOWS appear to mere shuffle of letters, beyond that, there
is a difference between SWOT and TOWS in terms of the sequence of analysis.
In the current competitive business environment, it is a huge challenge for the
managers to make decisions on behalf of the organization. Therefore, in order
to make crucial strategic decisions they are concerned about various tools and
techniques such as SWOT and TOWS analysis. Both these techniques can be
useful in analyzing a company’s macro and micro environment. This article
presents to you an analysis of the difference between SWOT and TOWS.
What is SWOT?
SWOT analysis can be identified as one of the important strategic planning
tools that can be used in evaluating a company’s micro and macro
environment. SWOT stands for Strengths, Weaknesses, Opportunities and
Threats as indicated in the below diagram.
Strengths
Strengths include the areas in which the company is good at. Identifying these
areas would be highly beneficial when making plans for the development of the
company. These may include things like the company reputation, competent
workforce, innovative product designs and the geographical location, cost
advantages of the company, etc.
Weaknesses
Weaknesses may include the areas that need to be improved such as lack of
advanced technological equipment, lack of efficiency in the workforce, etc.
Threats
Organizational threats may include threats of the competitors, threats of
substitutes, bargaining power of customers, bargaining power of suppliers,
threats of new entrants.
Opportunities
Opportunities are the benefits gained through external environmental factors
such as opportunities for business expansions or favorable government
regulations.
After analyzing these factors, management would be able to make the plans in
order to get the advantages of the company strengths and opportunities while
minimizing the risks created by external threats and internal weaknesses.
What is TOWS?
A TOWS analysis is almost similar to SWOT analysis, but in TOWS analysis
the threats and the opportunities are initially analyzed and the weaknesses and
strengths are analyzed at last. TOWS analysis may lead towards productive
managerial discussions about the things that happen in the external
environment rather than considering about the company’s internal strengths
and weaknesses.
After analyzing all the factors related to threats, opportunities, weaknesses and
strengths, managers can make plans for the company to take the advantages of
opportunities and strengths by minimizing the negative impact of weaknesses
and threats.
What is the difference between SWOT and TOWS?
• The major difference between SWOT and TOWS analysis is the order that the
managers are concerned about the strengths, weaknesses, threats and
opportunities in making strategic decisions.
• In TOWS analysis, initial focus is on threats and opportunities, which may
lead towards productive managerial discussions about the things which happen
in the external environment rather than considering about the company’s
strengths and weaknesses.
• In SWOT, inward analysis starts first; that is, the company’s strengths and
weaknesses are analysed first in order to harp on the strengths to capture the
opportunities and identify the weakness to overcome them.
Merchandising strategies
Merchandising strategies are a valuable component of any retailer’s success,
but a “one size fits all” approach will not work in today's competitive
environment. Strategies should vary by category and sometimes by segment
depending on the overall objective for the brand, category and retailer. Each
strategy should be carefully crafted to target a specific objective such as
increasing foot traffic, inviting new customers to try your brand, developing
loyal committed customers or increasing sales.
Developing and managing merchandising strategies should be a collaborative
effort shared between the retailer and the manufacturer. Manufacturers are the
true experts in their brand’s categories. A smart retailer should take full
advantage of the manufacturer’s knowledge and expertise to help grow the
category and sales.
The category captain role is a key factor in a savvy retailer’s success. This
person is a trusted business partner and ally to the retailer. Together, the retailer
and manufacturer can help satisfy a greater number of consumers, grow the
category, increase consumer takeaway and beat the competition.
7 effective category merchandising strategies
1. Traffic Building: High volume share, frequently
purchased items, high percentage of sales. This strategy
focuses on drawing consumer traffic into the store and/or
into the target category.
2. Transaction Building: Higher ring/transaction size,
impulse purchases. This strategy focuses on increasing the
size of the average category transaction.
3. Profit Generating: Higher gross margin and higher turns.
This strategy focuses on the ability of the category to
generate profits. Margins can be higher in this area due to
the value added, higher-quality products in these
categories.
4. Cash Generating: Higher turns, frequently purchased
items. This strategy focuses on the ability of the category
to generate incremental cash flow.
5. Excitement Creating: Impulse, lifestyle-oriented and
seasonal items. This strategy communicates a sense of
urgency or a limited-time sensitive opportunity to the
consumer.
6. Turf Defending: Used by retailers to draw traditional
consumers. This strategy focuses on aggressively
positioning the category to appeal to the consumer by
highlighting comparable items with key competitors. This
strategy also focuses on keeping your existing customers
happy and returning. Loyalty cards, aggressive pricing and
promotion strategies, consumer education, high value
coupons, etc. are all designed to help maintain a loyal
customer base. For example: Pacific Foods Organic
Chicken Noodle Soup priced aggressively compared to
target retailers.
7. Image Creating: Frequently purchased, highly promoted,
impulse, unique and seasonal. This strategy communicates
an image to the consumer in one of the following areas:
price, service, quality, specialty items or assortment.
Strategies include a variety of components: pricing, promotion, product
placement, ad support, consumer education, etc. Together, the different
components help achieve the retailer’s goal. Here are seven to try.
The Art Of Visual merchandising
Visual merchandising (VM) today is not only limited to floor and window display; it
is not only limited to fashion and clothing.
Visual Merchandising covers all the necessity to capture the attention of the
customers by all means from the facade of the store to the location of each product
inside the store – may it be a department or specialty store.
To capture attention, awaken the senses, provide the customers a wonderful buying
experience, which will bring them back to the store for the next time and become a
loyal customer, and make more sales are the major concern of an effective visual
merchandising.
No one wants to have boring product display; every visual merchandiser wants to
have interesting shop window and indoor display to capture not just the attention of
the customers, but their entire senses.
One of the retail elements that greatly affects you visual merchandising effort is the
store environment.
According to Dunne and Lusch (2005), store environment is an important element in
retailing given that 70% of the purchase was an impulse buying or unplanned
purchases.
A critical review on the effects of store environment on shopping behaviors conducted
by Shun Yin Lam (2001) shows that there are many factors and elements to consider
on having a good store environment. These elements include music, color, scent,
lighting, visual information, consumer density and much more.
Today, you will be learning the visual merchandising tips and ideas, that are certain to
get expected results, and some points to consider on having a good store environment.
Let us start the list.
1. Do not limit your theme to four.
Winter, Spring, Summer and Fall may be popular but there are still thousands of
visual merchandising themes which you can – actually, sky is the limit when we talk
about themes. Try to employ at least six different themes in a year. If you can use
varied themes in every month, it is better, but this is quite unmanageable.
Six different themes in a year are more flexible because this will allow you to change
your theme every other month. You can inline your theme with special events like
Fathers’ Day, Mothers’ Day, Teachers’ Day, Valentine’s Day, anniversaries festivals,
and other celebrations and holidays.
2. Use variation to support your theme.
Variation will support your theme to avoid boringness of display and decoration. You
can use the same theme every year but avoid using the same display and style. You
need to create a new look or else you will only annoy your viewers.
Scheme is also best applied to employ variation. A scheme works like a sub-theme.
Say for example you theme is Christmas, you can create one White Christmas
Window, one Toys Kingdom Window and one Christmas Party Window. All of these
three schemes are related to your Christmas theme.
Also avoid using the same material for different themes consecutively. You may keep
the materials you have recently used and use it again after few months or put it in
other locations or other branch of your store.
3. Go for unusual and big display.
People love novelty, something they haven’t seen before. You can search for some
visual merchandising ideas in the internet. Copy different ideas, combine them
together then modify. It is copy, combine and modify – not copy and paste.
In South-east Asia, it is common to some popular brands like Milo, Double A, Pepsi,
Coca-cola, Tipco and Maggi to conduct merchandise display contest to generate more
sales.
On the contest, the participating stores are required to design and set-up displays with
oversized props o get the attention of the shoppers. This strategy has been proven to
be effective.
4. Apply the Elements & Principles of Design.
Don’t forget to apply the elements and principles of design to your projects. The
elements of design are line, shape, form, size, space, color, value and texture while the
principle of designs are novelty, variety, harmony, unity, balance, proportion,
emphasis, contrast, rhythm and pattern.
Effectively use colors, texture, shape forms and lines.
Establish a focal point on your window display for easy viewing then harmonize each
element of your display to maintain neatness and to direct the eyes of your viewer to
each element of the display.
Always remember that the elements and principles of design are the keys to a
successful visuals.
5. Integrate dynamic techniques in your display.
Integrating printed materials, multi-media, interactive installation and sensory input in
your display are known to be dynamic techniques and are becoming the visual
merchandising trends, especially in the coming years because of the fast moving
digital civilization.
Gone are those days that retails stores rely only on a simple product presentation.
Think about what captures the attention of busy people in this digital age where
almost everyone who are passing by your store are walking so quick if not looking
slowly while looking at their mobile phones or tabs.
In some countries with more advance technology, some retailers install an interactive
window where customers can customize features on some products, before paying
their own-designed items at the checkout counter.
6. Keep your store’s physical appearance fresh.
Allocate extra budget to develop your store the facade and external appearance of
your store because these are the first thing that will be noticed by the people at street.
Maintain the good look your store – the marquees, awnings, signage, banners,
entrance and landscapes are the things areas you need to consider. You can use
significant color or unique carvings and moldings that represent your business so that
your store can be easily identified among other businesses.
Shelves, showcases, racks and other POS materials should be well maintained as well;
if one is damaged, do not hesitate to repair it or decorate the part that is damaged.
Repaint the old wall and ceiling, change the old posters, remove torn stickers and
wash the artificial flowers and fabrics on your display.
Do not wait until your store will like a haunted house. Keep it fresh.
7. Provide enough signs and graphics.
If you have a big store, provide enough directional signs inside your store and don’t
forget to include the local language in your sign and signage system. These are also
known as visual indications that direct your customers to roam around your store
which often results to unplanned purchase. Use light-directed signage in front of your
store to attract people during the night and don’t forget to change the old signage.
In the Retailing Management book, Levy and Weitz (1995) says that signs and
graphics also helps customers find the department or merchandise they’re searching.
Graphics such as photo panels can add personality, beauty and romance to the store’s
image.
Store Environment
8. Give enough space.
In addition to a good floor plan, enough height of the ceiling from the floor is also
important. As I observe, 10 feet is ideal but higher than this is better.
If the distance between the floor and ceiling is lower than 10 feet, use shorter shelves
to provide enough space for the eyes of your customers wander inside your store.
Overstocking goods on the shelves and racks is also not good ideas because this
would ‘choke’ the items.
9. Enhance the ambiance of your store.
By adding a little classic aroma, music and dramatic lighting inside your store, you
can create good impression to your shoppers. It is also important to match the type of
ambiance with the lifestyle and culture of you target market.
Shun Yin Lam (2001) founds out that the effects of store environment on emotions,
cognition and shopping behaviors differ across countries owing to differences in
culture and adaptation level of environmental stimuli, and the effects of store
environment on service quality assessment and shopping behaviors vary with
consumers’ shopping experience with a store.
10. Gather fresh ideas from different sources
I always suggest to the visual artist whom I personally know to collect ideas from
different sources like books, magazines, and most importantly, the Internet. The are
hundred of websites and blogs today where you can get fresh ideas to fuel your
creativity, and the good news is that most of them are available for free.
If you have Facebook, LinkedIn and Pinterest account, it is advisable to connect with
other visual merchandiser and professionals of the retail industry to see updates of
people with of similar interest.
I look forward that this article could help you on driving on you visual merchandising
activities. Thank you for reading. Godspeed!
