SALES SYSTEMS DEVELOPMENT, INC. Professional Selling & Merchandising Strategies Trainer’s Guide Module Five “Merchandising Fundamentals” Copyright Sales Systems Development, Inc. 2004 All rights reserved, including the right or reproduction in whole or in part in any form without the prior permission of Sales Systems Development, Inc Module V – “Merchandising Fundamentals” SEGMENT OVERVIEW During this first segment we will present and discuss with you the following key ideas… SHOW SLIDE #4. We will discuss how merchandising helps customers achieve their goals and why our merchandising efforts are important to building sales. Q WHAT ARE THE FACTORS THAT DRIVE AND DETERMINE SALES VOLUME FOR OUR BRANDS? RECORD RESPONSES ON FLIP CHART BEFORE REVEALING SLIDE. FACTORS THAT DRIVE VOLUME Copyright, Sales Systems Development, Inc., 2004, All rights reserved to include the right of reproduction in whole or in part in any form without the prior permission of Sales Systems Development, Inc. Notes 9 Module V – “Merchandising Fundamentals” SHOW SLIDE #16. WHEN YOU GET TO THE LAST POINT, “V.S.A.”, ON THE SLIDE, INSTRUCT GROUP TO WRITE DOWN THE INFORMATION IN THE SPACE PROVIDED. Copyright, Sales Systems Development, Inc., 2004, All rights reserved to include the right of reproduction in whole or in part in any form without the prior permission of Sales Systems Development, Inc. Notes 23 Module V – “Merchandising Fundamentals” SHOW SLIDE #17. ASK THE FOLLOWING DISCUSSION QUESTION AND SOLICIT RESPONSES. Q WHAT CHOICES DO CONSUMERS HAVE WHEN SHOPPING IN A STORE OR EVEN WHEN IN AN ONPREMISE ACCOUNT? Copyright, Sales Systems Development, Inc., 2004, All rights reserved to include the right of reproduction in whole or in part in any form without the prior permission of Sales Systems Development, Inc. Notes 24 Module V – “Merchandising Fundamentals” Now we will review the seven primary display standards that determine the effectiveness of the display for us and our suppliers, as well as in most cases the value to the customer. These standards are the criteria by which your display merchandising efforts will be evaluated. SHOW SLIDE #57. USE THE INFORMATION THAT FOLLOWS TO ELABORATE ON EACH POINT. The First and possibly most important Display Standard is “Dominant Share”. Copyright, Sales Systems Development, Inc., 2004, All rights reserved to include the right of reproduction in whole or in part in any form without the prior permission of Sales Systems Development, Inc. Notes 67 Module V – “Merchandising Fundamentals” SHOW SLIDE #59. Some sample signs to consider using are: “Store Special”, “Manager’s Special”, “New Low Price”, “Entertaining Value”, “Special Purchase”, “Limited Quantity Special”, or “Season Special”. Remember Guidelines: These Simple Buying Message The message should give the consumer a reason to buy. Buying messages should suggest to the consumer a potential use – an occasion or food tie-in. When one of your retailers is running a feature ad supported by a display, don’t overlook the impact of simple, ‘As Advertised’, signs. Such signs have proven to generate sale increases over 100%. Copyright, Sales Systems Development, Inc., 2004, All rights reserved to include the right of reproduction in whole or in part in any form without the prior permission of Sales Systems Development, Inc. Notes 70