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It's estimated that every year consumer packaged goods
manufactures launch over 50,000 promotions with retailers. This accounts
for over 20% of their revenue, even higher in some product categories.
However, it is also estimated that 40% of these promotions fail to
achieve their goals and are judged a failure.
How much of this failure rate is due to over-ambitious goal setting? How much is the result of poor design? How much is caused by ineffective pricing strategy or unfortunate timing? How much is from a combination of all three? It's difficult to gauge because each market, promotion and retail environment is so different. However, in hindsight most failures can be pinpointed to an unforeseen gap in the execution of the promotional strategy at the store level.
Retailers and manufactures invest so much time and money developing in-store merchandising and promotions. But, one key aspect that is often overlooked is the execution of the program's installation as it reaches each store. If an execution plan is missing, many things can go wrong that have a negative impact on the uniformity of the program and the overall sales performance.
As a result, many creative and expensive in-store merchandise plans fail to achieve their projected ROI because of mistakes that are made during installation or maintenance of key program elements. These may include poorly set planograms, improper display installations or missing point of purchase materials. These mistakes are examples of "execution gaps."
An execution gap is any implementation issue or problem that has a negative impact on the integrity of a merchandising program. A gap can range from mis-shelved products to poor sign placement or be as severe as damaged display components, or most importantly, a missed installation deadline. There are many examples and each are avoidable with proper planning and attention to detail before installation begins on the floor.
Merchandising services companies have always been about filling in these execution gaps. Whether it as simple as placing promotional hangers on products, building end-cap displays, cutting in new product, or fixing out-of-stocks and distribution voids they assist retailers and consumer packaged goods manufactures fill in the execution gaps in the process.
Gaps are created because manufacturer and retailer sales initiatives run into the reality of store level execution. This includes the inevitable problems caused by lack of employee expertise with merchandising and display set-up. Many store managers are overburdened with administrative tasks and delegate them to employees who have little experience at merchandising program execution. This results in poorly install display, improper placement of product and inadequate sign placement. All contribute in creating a gap that can potentially cripple performance.
A properly executed merchandising program is critical to success. About 10% of consumers said advertising was a major factor in buying decisions while 81% of consumers seek out special deals. Consumers are very influenced by in-store media and the success or failure of a program is tied to their shopping experience. At the point of sale, merchandising is king and the potential for failure great because of execution gaps.
The most effective solution for execution gaps is to choose a merchandising company that focuses on execution from the beginning of the implementation process. Specifically ask them during the discovery process if they have a written execution guide or plan to use during the process. This simple step will ensure that your next in-store sales initiative will be a success.
How much of this failure rate is due to over-ambitious goal setting? How much is the result of poor design? How much is caused by ineffective pricing strategy or unfortunate timing? How much is from a combination of all three? It's difficult to gauge because each market, promotion and retail environment is so different. However, in hindsight most failures can be pinpointed to an unforeseen gap in the execution of the promotional strategy at the store level.
Retailers and manufactures invest so much time and money developing in-store merchandising and promotions. But, one key aspect that is often overlooked is the execution of the program's installation as it reaches each store. If an execution plan is missing, many things can go wrong that have a negative impact on the uniformity of the program and the overall sales performance.
As a result, many creative and expensive in-store merchandise plans fail to achieve their projected ROI because of mistakes that are made during installation or maintenance of key program elements. These may include poorly set planograms, improper display installations or missing point of purchase materials. These mistakes are examples of "execution gaps."
An execution gap is any implementation issue or problem that has a negative impact on the integrity of a merchandising program. A gap can range from mis-shelved products to poor sign placement or be as severe as damaged display components, or most importantly, a missed installation deadline. There are many examples and each are avoidable with proper planning and attention to detail before installation begins on the floor.
Merchandising services companies have always been about filling in these execution gaps. Whether it as simple as placing promotional hangers on products, building end-cap displays, cutting in new product, or fixing out-of-stocks and distribution voids they assist retailers and consumer packaged goods manufactures fill in the execution gaps in the process.
Gaps are created because manufacturer and retailer sales initiatives run into the reality of store level execution. This includes the inevitable problems caused by lack of employee expertise with merchandising and display set-up. Many store managers are overburdened with administrative tasks and delegate them to employees who have little experience at merchandising program execution. This results in poorly install display, improper placement of product and inadequate sign placement. All contribute in creating a gap that can potentially cripple performance.
A properly executed merchandising program is critical to success. About 10% of consumers said advertising was a major factor in buying decisions while 81% of consumers seek out special deals. Consumers are very influenced by in-store media and the success or failure of a program is tied to their shopping experience. At the point of sale, merchandising is king and the potential for failure great because of execution gaps.
The most effective solution for execution gaps is to choose a merchandising company that focuses on execution from the beginning of the implementation process. Specifically ask them during the discovery process if they have a written execution guide or plan to use during the process. This simple step will ensure that your next in-store sales initiative will be a success.
For the past two decades, DisplayMax Merchandising Services has
established a reputation for superior execution within a broad range of
retail categories. Focusing on meeting deadlines and completing projects
to the highest standards, they understand that every merchandising
situation is unique and how difficult execution can be with launching
nationwide retail rollouts, new store setups, remodels and resets. To
improve your in-store merchandising program performance, go to http://www.displaymaxmerchandising.com/executionguide to gain free instant access to our Merchandising Execution Guide.
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