Design a strategy for product placement in your store

12/08/2021

Visual Merchandising for a great product placement strategy

Designing a strategy for product placement in your physical store is crucial for achieving good sales in your commercial space.

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This aspect, which can often seem less important than it really is, requires a visual merchandising strategy to ensure that customers appreciate the products and sales increase.

"A product that is not clearly visible is a product that will not be purchased"

The foundation of a good visual merchandising strategy is to create a sense of harmony in the commercial space, where all products are perfectly integrated with each other and the environment. They should all be visibly placed so that the customer can clearly appreciate, pick up, and touch them, which is key to making a sale. The design should balance aesthetics and functionality.

Zara store, Milan, Italy.

Zara stores Bilbao, Spain.

The strategy will not work if you do not set clear sales objectives from the start, as each objective will lead to different actions. It is important to know who we are as a brand and who our audience is. The product placement strategy for Hermès in one of its boutiques will differ from the strategy Zara employs in one of its stores. Each brand has different sales objectives and therefore implements different strategies and actions.

Hermès store, London.

Hermès store, Emirates.

Analyse customer behaviour

A very important aspect is knowing your customers; understanding consumer behaviour will help you make more accurate decisions. You need to know things like: Which products are the best sellers? Which ones sell less? What is the price difference between products?

Additionally, you have many tools that are very useful for understanding how customers behave in your establishment.

Cold and hot zones: The maps that help you determine where your customers spend the most time will be very effective in deciding where to place a product to attract more attention. They will also help you transform cold zones into more active areas.

For instance, products that customers plan to purchase (planned necessary purchases) should be placed in cold zones to guide customers towards these areas of the store and activate them. In contrast, products that customers have not planned to buy should be placed in hot zones (unplanned desired purchases).

Of course, each store will have its placement according to its needs, but these tips will help you determine if your product should be present in a cold or hot zone.

Another commonly used tool is store maps. It is advisable to create a path for customers in the store, so they navigate the space as you want them to. This path can be created with furniture or different areas; some companies even use marked paths and arrows to guide the customer.

It is important to understand the appeal of each product. Some products’ main feature is the price, others the aesthetic design, and others the functionality. This is crucial when determining how to handle each product and give it the importance it deserves. This aspect usually dictates the sales objective.

The store design, decorative elements, and the products themselves are vital in conveying the brand’s DNA. The image you convey with each aspect and the sensations, emotions, and atmosphere you create will shape your customers’ perception of you. Therefore, every detail must be carefully considered to ensure it communicates exactly what you intend.

Product placement ideas and visual merchandising

Here are some ideas to consider when placing your products in-store:

Place new products at the back of the store. This placement encourages the customer to explore the store to see the new products; while doing so, they will see all the products along the way.

Loewe boutique, Madrid

Rotate the inventory. This is essential. Rotating product placement is necessary for customers to expand the number of products in their minds. Products with low turnover should be placed alongside high-profile products (bestsellers) to capture more customer attention.

The store layout must make an impact. Avoid using too many elements that distract the consumer, but even if the composition is simpler, make it impactful.

Stella Mccartney boutique in Madrid

Contextualise the products. Cross-selling is very important. Placing complementary products together effectively increases sales. For example, fashion stores often display clothes that create a complete look, aiming for the customer to buy both.

Product placement in Nike Store.

The rule of three. To enhance the customer experience, products should be placed at eye level, applying the rule of three for their arrangement.

Lighting. Lighting can help make your products more visible or more important.

Sensory marketing. This technique aids in determining the purchase decision. Using pleasant scents, sounds, and textures that evoke emotions or sensations in the customer is very effective.

Impulse buying. Identify which items are impulse buys and place them near the checkouts to take advantage of the customer’s impulse and desire to buy, making it easier for them to add another item to their basket.

There are many actions and strategies you can implement to place your products effectively in your retail space, but remember that every action must be personalised for your space, brand, and customers. Gathering as much data as possible and analysing it to choose effective actions is essential. So, think twice before randomly placing your store’s products.

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