Branding + Merchandising + Inventory

Question 1

What should brands convey?

Answer 1

1. What they represent
2. What core benefits it supplies
3. Needs it satisfies
4. How the brand makes the product superior or different to competitors

Question 2

What elements make a successful brand? 6

Answer 2

1. Memorable
2. Meaningful
3. Likeable
4. Transferable
5. Adaptable
6. Protectable (legality)

Question 3

What is brand equity?

Answer 3

The value added on a product or service and is reflected in the way consumers think, feel and act in respect to a brand

Question 4

What is a brand?

Answer 4

A perceptual thing that is based in reality but reflects the experiences, differences and thus perceptions of consumers.

Question 5

Difference between grid layout and free-flow layout

Answer 5

Grid: counters at right angles where merchandise is displayed in straight parallel lines.
=encourages Max exposure

Free flow: unstructured flow, such as circles, arches, triangles 🔺️
=encourages browsing browsing impulse buying

Question 6

Recommend end-caps?

Answer 6

Yes!
Often display seasonal or new items.

Question 7

Are plan-o-grams recommended?

Answer 7

Yes!
Plan-o-grams are where there is a deal with supplier that will stack the products in a certain space, in order to get cheaper stock.

Data is centralised and can find out ehats popular in every area.

Question 8

Where should poplar products be placed?

Answer 8

At eye level

Question 9

Cross merchandising?

Answer 9

Fast moving, high profit items displayed in various departments next to related items

Question 10

The cost associated with inventory include…
4

Answer 10

1. Acquisition (cost to buy it)
2. Carrying
3. Procurement (costs in staff time stocking, point of sale, etc)
4. Shortage costs (stolen or damaged)

Question 11

Effective inventory includes…

Answer 11

Decreases Costs of goods sold and operational expenses = increases gross profit margins and net profits

Question 12

Methods of inventory management

Answer 12

1. Visual method = looking at units in inventory and comparing with stock levels
2. Periodic method = looking at gaps on shelf and responding to this
3. Perceptual method = computerised inventory management systems that tell you when stock is low.

**these may be combined

Question 13

How to pick the right product?

Answer 13

1. Past usage
2. Target market
3. Pharmacy image and goals
4. Formulary (hosp)
5. Industry data (trends kr med use)
6. Industry reps
7. Consumer info, monitor requests