Chapter 18: Presentation Flashcards
Presentation policy
includes all activities aimed at translating the strategy, the commercial objectives and the store formula (or concept) to optimise the shop experience for the customer.
The process of designing a store consists of 5 steps
Consists of 5 steps
1. Store design
2. The floorplan
3. Layout planning location of departments
4. Merchandising
- Store design
= translation of a retailer’s formula and strategy in the store. It is all about the image.
The aim is to create the atmosphere and the spatial experience that will strengthen the image for customers. Focuses on the customer’s sensory perception. An important part of the store design is the development of the store concept: colors, materials, shapes. Store design must be also adapted online.
- Floorplan
= also called ‘spatial-allocation plan’ is a sketched layout based on the assortment of the formula in the available space.
The dynamic SWOT, the goldmine and the fair-share analyses are reflected in the floorplan. Based on the results of the preliminary studies, the retailer can make a conscious choice to allocate more m2 to the anchors or goldmines. The purpose of the floorplan is to come up with an understandable arrangement of the departments which is seen by consumers as coherent.
The steps to make the floor plan:
First, we design departments with an Inventory model
Creating a floor plan is especially important for bigger stores with large assortments (ex. Large
supermarkets). But drawing up a floorplan is difficult. Although consumers want to feel like they have a lot of choices, they are actually looking for a particular solution. Consumers still like to shop at well-organized stores.
Nowadays, retailers often choose a MODULAR FLOORPLAN = all specific spots are drawn out but can be adjusted based on the branch as the branches can vary in size, form, entrance, back-office etc.
- Layout
the operationalization of the floorplan in which the various consumer flows and space for category groups are defined.
Types and shapes of layout: 4 important factors which determine the overall success of the store:
1) The store window: how often does the average consumer walk or drive by? How often do we have to renew the stopping power of our store? Who is our competition and how often do they renew their stopping power? Concept of stopping power → lead the consumer to stop & come into the store
2) The entrance: once we have convinced them to come in with the help of the store window, it is important to make them enthusiastic for the rest of the store. The entrance is the first real introduction to the store.
3) The lines of sight: consumers cannot see everything all at once. They scan the shopping environment. If they see something that appeals to them, they will continue their way into the store. This depends on the lines of sight. A store needs to be built up to support the shopping experience
4) The hotspots: in many stores, the assortments are extensive. As a result, it is almost impossible for a consumer to know the full range of products available in-store. Therefore, the store must create spots to show the assortments available in the rest of the store. Give retailers the possibility also to show elements of the assortment.
Different forms of layouts
grid layout (supermarket)
free flow layout (fun-shopping and fashion)
loop layout (fashion and DIY)
- Planning locations for departments
also called the standard floorplan (SFP) is the commercial basis for the actual product presentation and should ideally be created after the store layout. So, first, the ideal layout should be decided. In addition, in real-life practice, it often turns out that a store does not have enough space to display all the products of the assortment.
The SFP is rather mathematical and abstract: the store is divided by:
➢ Available square metres
➢ Products
➢ Assortments
Based on the following criteria:
● Level of dominance/importance per department (for core ranges);
● Profitability per department (DDP factors);
● The physical distribution system (minimum stocks);
● The rates of the sales.
- Merchandising
a combination between ‘standard’ promotional techniques and in-store promotion. The aim is to show the product in relation to each other and to present goods as attractively as possible to generate as many sales as possible. The most important thing is to attract the customer through the presentation. Another goal of visual merchandising is to enable cross selling. There are many ways to do visual merchandising - after, we need to choose the type of presentation.
Different forms of visual merchandising
1) Sensory merchandising: based on the customer being able to taste, feel smell and try the product. Positive, sensory experience to make the customer feel welcome, to seduce them to stay longer and make a purchase (ex. Rituals, Lush, Eataly). Smell of fresh-baked bread is considered a great experience for the customer.
2) Cross-merchandising: online stores such as H&M and ZARA. A new pair of jeans can easily be combined with new shoes.
3) Move-merchandising: one of the cheapest ways of visual merchandising is to walk away with your merchandise. Make the customer excited by moving the products. H&M offers various forms of moving merchandise. Every day, the collections are moved around the store to sell them in a better way. Employees constantly work on ‘new’ products and assortments for example by changing the clothes on the mannequin. This means new attention to the already existing stock.
