How does your understanding of product features impact your merchandising strategy?

A good merchandising strategy should leverage the product features to create a unique value proposition for your customers. You should highlight the benefits and advantages of your products over your competitors, and communicate them clearly and effectively to your target audience. You should also use appropriate visual elements, such as images, videos, colors, fonts, etc., to showcase your product features in an appealing and engaging way.

Knowing what makes a product special is very important to sell it well. It helps in deciding who might want to buy it, where to put it in store and how to talk about it. Understanding the features helps in suggesting other things that go well with it or convincing consumers to buy fancier version of it.

Product features are a benefit only if your sales team can properly qualify your customers buying motivation as well as their wants and needs. If they can qualify properly, then using those features to educate and demonstrate their value to your customer. The way products are merchandised can help this process tremendously.

Drawing from my five-year experience in FMCG merchandising for a leading retailer in India, I’ve learned that the key lies in blending consumer insights with shopper insights to develop a robust merchandising approach. Determining the placement of products based on their role and aligning it with the retailer’s category strategy is fundamental. Here, product features come into play as a decisive factor. Understanding these features helps us predict shopper behaviour and preferences, enabling us to place products strategically to maximize visibility and appeal.

Understanding and highlighting key product features enable targeted marketing, aiding in research the right audience. Meanwhile, a well curated product assortment ensures a diverse range, meeting varied customer needs and preferences. This combination enhances the shopping experiences, promotes cross-selling and support competitive positioning.

Product features and display are pivotal in merchandising, profoundly influencing customer engagement and purchasing decisions. Highlighting key features communicates a product's value, guiding customers to informed choices. A well through out product display complements this by attracting attention, encouraging exploration and creating a positive in store or online experience. Strategic placement enhance visibility and makes it easier for customers to find and connect with products. This synergy between features and display not only facilitates effective communication of product's USP but also contributes to a seamless and enjoyable shopping journey. Ultimately, it boosts sales, customer satisfaction and brand loyalty.

Brands typically provide consumer insights focused on attitudes and usage patterns. However, as a retailer, the addition of shopper insights is crucial. This involves understanding the shopper's decision-making process - what drives them to choose one product over another and how product placement influences their purchasing decisions.

To craft a winning merchandising strategy, focusing on product features and pricing is key. It's about striking the right balance to drive revenue and boost margins, while also keeping shoppers satisfied and loyal to your store. By offering products with features that meet customer needs at competitive prices, you can prevent them from looking elsewhere and even persuade them to switch brands within your store. Efficiently managing inventory based on these factors is also crucial for maintaining healthy financials and working capital.

In my experience, in the retail segment, the merchandising strategy must consider the sales staff's training on the product features, especially in cases where brand retail outlets across a demographic keep a different product range. Once the sales staff are well versed on what, how, and why of selection of each product range, their sales strategy becomes more focused and relevant to the diverse customer walk-ins in their outlets.

While merchandising strategies involve complex decision-making, incorporating detailed product features based on thorough consumer and shopper insights can lead to more effective outcomes. This approach ensures that our stores not only meet but exceed shopper expectations, fostering both brand loyalty and financial success.