Merchandising - grote.com · In-Store Merchandising In-store merchandising is one of the many...
Transcript of Merchandising - grote.com · In-Store Merchandising In-store merchandising is one of the many...
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MerchandisingMASTERY STATEMENT:
G R O T E T R A I N I N G S E R I E S
In this module you will learn the Grote merchandising system and be able to identify and use the various components that are available.
At Grote Industries, merchandising has a broad definition and includes: •PointofPurchase(POP) •PointofSale(POS) •Plan-O-Grams(POG) •Promotions •ProductPackaging •Store/Walk-inareamaintenance •Tradeshows(bothnationalandlocal) •Literature •Grotewebsiteandelectronicorderingmechanisms
PropermerchandisingisanimportantfunctionintheGrotesalesprocess.Youneedtounderstandhowtheseitemscanhelpyougathermorerealestateandmarketshare.
MarketClassification ...................................................................................... 2TheTotalPackagefortheAutomotiveMarket ........................................... 3DisplayingtheProductinyourBranchorStore ......................................... 4CreatingaPOG ................................................................................................. 6RightLampsfortheJob .................................................................................. 7MerchandisingandProductDocumentation .............................................. 9GettingtheBusiness ....................................................................................... 9The Upgrade ................................................................................................... 10POG,POPandPOSExamples ...................................................................... 11Additional Resources .................................................................................... 12
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2GROTE 101 grote.com
Merchandising
MARKET CLASSIFICATION
AtGrotemerchandisingistypicallyappliedtotwomarkets:
Traditional – Automotivemarketsarecomprisedmostlyofautomotivewarehousedistributorswhichsellproductsusingtheindependent3-stepdistribution models.
Heavy Duty – MarketiscomposedofHeavyDutydistributors,OEDealersupplynetworks,andcompanyownedgroups.
It’simportanttoknowwhatmerchandisingmethodsareavailable.Thisway,whenyoubringnewcustomersonboard,regardlessofmarkets,youcan suggest to your customer the proper products to build the offering for maximumexposure.Itisimportanttocreateastrong,professionalimage.
Grote Package DesignLet’sbeginattheproductlevelandthepartsdeliverymechanisms.Grotepartscanbeofferedinthreebasicpackagingformats:
•Bulkquantitywithoutpackaging(partnumberby-3suffix) •Polybagpackagedproduct(noextension) •RetailPackagingincardedorfour-colorboxes(partnumberby
-5suffix)
Grotebulkpackagingisidentifiedbya-3attheendofthestandard5-digitpart number. This generally indicates that a full case is being shipped withoutfurtherpackagingtothedistributor.BulkpackagingisusedinshippinghighusageproductsandinsomeOriginalEquipmentpurchasestoeasetheinstallationprocessandtoreducepackagingcosts.Atoptionofthedistributorthisproductissoldtothemarketinlessthancasequantity.
ThestandardGrotepolybagisabluebagthathasasee-throughpanelfrontandback.AtthetopofthebagisaprintedareafortheUPC,partnumber, and product description in English, French, and Spanish. The GrotepolybagisgenerallyconsideredapackagingtypefortheHeavyDutymarket,butitisincreasinglybeingacceptedintheTraditionalAutomotivemarketplaceaswell.Ingeneral,polybagpackagingislessexpensivetothecustomerthanthe-5retailpack.Someslowermovingproductsarepackagedinanon-graphiccolorpolybag.
BasicGroteretailpackagingcanbeofseveraldifferenttypes,butallare,withafewrecentexceptions,indicatedbya-5suffixtothestandard5-digitpartnumber.Theretailpackcanbeaproprietaryslide-lockpack,displaybox,windowbox,orclamshell.Grotehasmadesignificanteffortstomaketheclamshellandslide-lockpacksassmallaspossibletomakePlan-O-Gram(POG)setupflexible.Thereisusuallyapricepremiumforretailpackproductincomparisontopoly-baggedproduct.Likethepolybag,theretailpackalsocontainsdescriptionsintrilingualformat.
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3GROTE 101 grote.com
Merchandising
Inadditiontothetrilingualcopy,anothersignificantsellingpoint/featureoftheGroteretailpackistheinclusionofCADdrawings/linearttoshowexactmeasurementdata(thisallowstheconsumertoknowthatthepartwillabsolutelyfitbeforepurchasing,reducinglaterreturns)andfeatureandbenefitdataprintedonthebackofthecards/package.Thisisauniquefeaturethatfewmanufacturersoffer.
In-Store MerchandisingIn-storemerchandisingisoneofthemanybenefitsthatGroteoffersitscustomers.WhetheryouareaHeavyDutycustomerthatreliespredominantlyondeliverysales,
oraretaillocationthatdependsonwalk-intraffic, the Grote merchandising plan is an important element in the sales process.
THE TOTAL PACKAGE FOR THE AUTOMOTIVE MARKET
There is one piece of literature that best identi-fies the Grote merchandising sales approach. TheTotalPackageBrochureidentifiesthesix
keyelementsthat identify what Grote has to offer a typical automo-tiveaftermarketdistributor.
Themaintake-away is that the Grote sales process isn’t about selling a light in abox,weofferagreat deal more. This “more” is what separates the Grote line from our competitors suchasPeter-sonandOptronics.TheTotalPackagehelpsdrivelightingsalesthroughthejobbernetwork.
Step 1.MerchandisingandPackaging:theseitemswillbecoveredin-depthinthissection.However,themainelementsareourslidelockpackaginganddisplayboxesthatallowcustomerstoquicklytakereturnsandputthembackontheshelftoavoidstockingfeesandincreasingprofits.
KeyPoints
Grote’s trilingual
packaging is written
in English,Spanish,
and French.
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4GROTE 101 grote.com
Merchandising
Step 2.Plan-o-Grams:Groteplan-o-grams(againcoveredingreaterdetaillater)deliverstylisticallycomprehensivesalestoolstoallowjobberstorestoboostprofitsthrough high yield inventory turns and impressive store sets.
Step 3.ExclusiveProduct:wehavemanyitemsthatourcompetitionjustcannotmatch or offer. Our engineering and product development process is a significant sales benefit and needs to be addressed when dealing with price conscious buyers that try to compare us to our competition.
Step 4.LiteratureandCatalogsupport:Ourcomprehensivecatalogisfullofprod-uctinformationtomakethecounterman’sjobaseasyaspossible.Withfullcolorphotos,detailedlinedrawings,electrical/technicalinformationwithfeaturesandbenefits,itisasalesman’sbestfriend.Wealsohavereamsofothersalesliteraturetohelpclosethesale…muchofitavailableforquickdownloadfromtheGrotewebsite.
Step 5.KnowHowtraining-ourmulti-awardwinningtrainingprogramisuniqueinthe lighting industry and is available for our customers and in turn our customers customer. This program is currently a two volume set that covers basics of elec-tricity and troubleshooting. It is a certification program that includes hats, patches, and wall certificates.
Step 6.GuaranteedChangeoverProcess-thedetailedchangeoverprocessiscov-eredbyyourlocalrep.HecanoutlinetheTotalPackageprocessforthecustomer.
AsyouwalkthroughthesesixstepsitshouldbequicklyapparentthattheGroteprogramismorethanthelampinthebox…it’snotthelightsyousell,it’showyousell the lights.
DISPLAYING THE PRODUCT IN YOUR BRANCH OR STORE
Step 1. How will the sale be created?
•Phone/Countersales •Deliveryofparts(wholesaling) •Walk-intraffic
Afterthedecisionhasbeenmadeastowhattypeofproductpackagingwillbemarketed,thenextdecisiontobemadeishowtodisplaytheproductforsale.Grotehasoptionstosatisfypracticallyanysituation.Dependingonthecustomer’sin-storemerchandisingstrategy,youmaywanttouselabeledbinboxesforthebackwarehouseareawhileusingpolybags,bulkproduct,oraretailpackPOGinthefront of the store.
Grote has several options for merchandising products including: Bin Boxes-Binboxesarethemostcommonmethodforstoringproductinthebackofthewarehouseorinthefrontofthestorewhenusingabulkset-up.Grotehastwosizesofbinboxes:asmallbinbox(99920)andamuchlargerbulkbinbox(00780)forstoragepurposes.Eitheroftheseoptionsmaybeappropriate.
KeyPoints
Six Key Elements:
1. Merchandising and Packaging
2.Plan-O-Grams
3.Exclusive Product
4.Literature
and Catalog support
5.Know How
training
6. Guaranteed Changeover
Process
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5GROTE 101 grote.com
Merchandising
Retail Plan-O-Grams (POGs)-GroteusesSpaceman® Suite Merchandising Servicesplan-o-gramsoftwaretocreateprofessionalPOGsforthestorefront.GroterecentlyupdateditsPOGofferingtoincludearefreshed4-foot,8-foot,12-foot,and16-footoption.IfyourcustomerislookingtousetheGroteretailpackagingstyle,thenoneofthesePOGswillcertainlybetherightsolution.ThePOGScanalsobeconvertedtopolybagandbulkofferings.
Ifoneofthepre-packagedsolutionsisnotsuitable,ifthereisenoughtime,aspecialPOGcanbedesignedtoutilizeexistingstockand/orrequirementsacustomermighthave.AdditionalPOGsfor3-footsections,orendcaps,areavailableforseasonalitems.PolybagPOGsarebecomingmorepopularaswell,and this product is suited for hanging on peg holes.
Step 2. How to create and merchandise a customer’s selling areaIfyouareworkingbehindthecountertomerchandisetheproductontheshelves, please follow these recommendations:
•Productshouldbedisplayedinnumericalorder.
•Productshouldbeplacedinbinboxesclosetoeyelevel,withexcessinventoryplacedinawell-labeledoverflowcartononatopshelforbelowtheshelving-ifthereisspace,itcanbeplacedbehindthebinbox.
•Binboxesshouldbecleanandhaveexcesslabelingcoveredorremovedtomakeitaseasyaspossibletoseetheproduct.
•Thebinboxshouldhaveeasytoreadlabelswithpartnumbersprintedinblackpermanentmarkeronthefrontofthebinbox.Oftenaddress-stylelabelsareused,buttheydonotholdupintheharshenvironments of a warehouse. If you choose to use labels, you must makesuretheyremainclearandeasytoread.
•Abulkdumpbindisplaycanbeusedforpromotionalitemsorfastmoving products.
Manyofthesamestepswillbeinorderwhenstockingbulkproductorbulk-displayedpolybags.Makesuretheproductisclean.Dependingonthe customer’s interior storage and inventory procedures, there may be an excessiveamountofdirt,grime,andbrakedustinthestoragearea.Youwillneed to spend some time cleaning up the product area whenever you stop into the customer location.
If you are setting up a retail pack POG for a customer, keep the following tips in mind:
•Usethepegdiagramtopre-setthepeghooksinthedesignatedholes.Grotebuildsitsstandardplan-o-gramsonthe00180,4-footgondolathat has been offered for many years. If your customer is providing his own hardware, you will want to verify the measurements before you beginandthenmaketheappropriateadjustments.
•Groteusesthesamemethodologyassomeofthefastestgrowing
autopartsretailerswhensettingupPOGs.Largeritemsareplacedonthetoprowwithassociatedproduct(replacementparts,forexample)nearby;thesmalleritemsarehungonthelowerhooks.
KeyPoints
A waterfall display is a
space saving plan for
displaying product.
Products are overlapped by a system
of bars projecting out from
the display to allow for overlapping of product.
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6GROTE 101 grote.com
Merchandising
•Typically,itiseasiertoplacetheitemsonthepeghooksstartingwiththebottomhooksandworkingup.Trytoavoidusingthetoprowofpegholestomakeiteasiertoinsertthehooks.
•Thepegdiagramtypicallydisplaystheright-handholeofatwo-prongedpeghook;thisisdonetoallowmaximumspaceandtoletyoumovethehookstowardthelefttocondensewhenpossible.
•Itisnotuncommonforcustomerstousewhatareknownaswaterfall
racks.Theselayeredcomponentsallowformoreproducttobedisplayedin a tighter area. It is often not as pleasing to the eye but Grote can accommodate this merchandising set up. If your customer wishes to use waterfallracks,thismustbeidentifiedearlyinthecustomplan-o-gramsetup process.
CREATING A POG
InmanycasesyouwillbeaskedtocreateaPOGfromexistinginventoryortomakearecommended product offering. From a merchandising perspective, if you are unable toutilizeanexistingPOG,youshouldkeepthefollowingideasinmind:
Heavy Duty Market
What type of customer does the distributor serve?Ifit’safleet/enduser,makesurethattheirstockhasthecoveragethatfleetsdemandinbothStop/Tail/TurnandClearance/Markerproduct,aswellasaccessoryneeds.
You can’t sell what you don’t have in stock.Makesuretheinventoryissuitableforthesizeofyourcustomerbase.Toooftenthedistributors will find themselves special ordering one or two parts to complete an order.Makesureyouhaveinventory.Usebusinessintelligencepurchasehistoryreports,andfleetsurveystoanalyzeinventoryturnsandreorderhabits.
New productsTheGrotemarketingdepartmentspendsalotofeffortandtimetopromotenewproductsthatwehaveatthefleet/end-userlevel.Thedistributorneedstocarrytheinventorytosupportproductlaunchefforts.Recommendedstockinglevelsaretypicallysentouttohelpthefleetjudgetheirneeds.
Traditional Distributors
Custom Plan-O-GramsGrote offers many services to our distributor customers. One of those services is the abilitytocreatecustomplan-o-grams.Asmentionedonpage4,GroteutilizesSpace-manMerchandisersoftwareproducedbyACNielsen.Thissoftwareallowstheusertobuildplan-o-gramsfromadatabaseandtoplacetheproductinagridformatontoacustomsetupgondola(canincludeshelvesand/orvariousstylehooksandhangers).
Theprocessforhavingacustomplan-o-gramdesignedforyourcustomerincludesthefollowing steps:
•IdentifytheproductthatneedstobeplacedonthePOG
•Identifyandmeasure(tothe.5”)thetypeofgondolaandspacethatwillbeallottedforthePOG,itissometimeshelpfultoknowthebrandofgondola
KeyPoints
Retail displays typically cater to public walk-in
business.
KeyPoints
LED lighting is usually
preferred over incandescent.
KeyPoints
POGPlan-O-Gram
POSPoint Of Sale
POPPoint Of Purchase
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7GROTE 101 grote.com
Merchandising
(Lozierforexample).Thisincludes,overallheight,baseheight,width,notchmeasurement(thespacebetweenthenotchesthattheshelveshang,siderails),pegholespacing(typically1”x1”),howmanysections/segments(12ft,butinthree4ftgondolas).
•SubmitinformationtoyourlocalGroterep.
•GroteMarketingwillneedaminimumoftwoweeksanddependingonworkloaditcouldbe4weeksorlongertofinalizeyourcustomPOG.
What type of customer does the distributor serve?Unlikeheavydutycustomers,traditionalretailcustomersgenerallyselltoawidervariety of consumers and as such need broad product coverage without a lot of depth.
Ifacustomerservicesaspecificmarketsegment(agricultural,forinstance),makesuretheproductsareinstocktomeetthoseneeds.
LEDsFartoofewofthetraditionalcustomerbaseiscarryingsufficientLEDsintheirstandardproductofferings.YoushouldspecificallymadethisafocusofthenewPOGsbeingoffered.
•InthetraditionalmarketplaceGrotehaschosentopromotetheHiCount® lineofLEDs.InsomeinstancesyoumightusealongerwarrantyLEDproduct, such as SuperNova®, but in nearly all cases you will want to use theHiCount® line.
RIGHT LAMPS FOR THE JOB
EveryyearGroteproducesareportofthetop100best-sellingpartsfromthepreviousyear,compiledforboththeTraditionalandHeavyDutymarkets.Thisreportis the main tool you can use to identify the top selling parts to focus on with your customers..
Anotherwaytoselectproductstoofferyourcustomerormarketistocheckthemovement code of the products located in the price sheet.
A:Fastestmovingitems–topmoversforanymarket
B:Nextfastestmovingitems–usuallycoreproducts
C:Steadymovingitems–itemsthatroundoutacompleteproductoffering
D:Limitedsalesitems;basedondemandorrestrictedtocertainareas
AA:Displayitemsnotsubjecttoreturnorobsolescenceprotection
DD:Specialorderitemsnotsubjecttoreturnorobsolescenceprotection.Additionalleadtimesmayberequired(standardcaseonly)
W:Warehousedistributororfactorystockonly,slowmoving
KeyPoints
Grote displays are generated by popularity,
profit, coverage, and new
technology.
KeyPoints
The right LED mix of
product will instangly bolster
sales dollars and market penetration.
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8GROTE 101 grote.com
Merchandising
DISC:Obsolete.Notsubjecttoreturnafterexpirationofrecalldeadline
N:Productsusedwithanothercodetoindicatethattheitemisnew.Theiractivityindexisestimatedafteramarkettest
Forthetraditionalmarket,thePOGofferingnowisavailableinan8’,12’,and16’storeset(4ftPOGsareavailableonrequest).ThepercentageofLEDSKUstothetotalSKUcountis: 8’:20LEDSKUsoutof85SKUs=23%ofthetotaloffering 12’:26LEDSKUsoutof115SKUs=22%ofthetotaloffering 16’:30LEDSKUsoutof142SKUs=21%ofthetotaloffering
OnemethodtoselecttherightmixofproductistolookatthetotalvalueofthePOGandthevalueofthesell-thru.Expectfourturnsperyearonthatinventoryinthestore.IfthevalueofthePOGis$1200atthejobberlevel,thenthejobbershouldexpect$4800inannualsalesforsell-thruoftheproduct.
AlsounderstandthatthePOGisasuggestedmappingtoolforpopularitems. It may not physically fit the area that the store manager gives you. Learntoadaptandworkwithintheareasyouhaveavailable.Storesmayordera12’displaybutonlyhaveroomfor8’inthepegboardarea.Lookforareasonthepegboardsbehindsales/partscountersorshelves.Youmaybeabletousethebaseboardofthedisplaytofeaturelightkitsandboxeditems.
POP (Point Of Purchase)InadditiontoPlan-O-Grams,GroteoffersawidevarietyofPointOfPurchase(POP)displays.TheGrotePOPisgenerallyintheformoflighteddisplays showing the brightness, longevity, or design of the Grote lighting product.
Typically,POPdisplaysareincludedincustomerassortmentsandtiedtotheorder.ThepartnumbersandpicturesofavailablePOPdisplayscanbefoundinthebackofthemerchandisingandPOGbook.
WhensettingupPOPdisplays,youneedtoworkwiththelocationmanagertomakesuretheyunderstandthepotentialdangersoflitdisplaysthatarenotusedproperlyorwellmaintained.GrotePOPdisplaysaremanufactured with a high level of care and professionalism; however, if they are not properly maintained or their power supplies are not properly grounded, accidents can happen.
OtherPOPsincludeawidevarietyofcountermats,posters,andbrochures.TheliteraturecanbefoundontheGroteLiteratureBrochure(GLB)orderformavailablefromyoulocalGrotesalesrep.
KeyPoints
The Dollar % total for
LED product is typically 2x the Unit Sales %.
KeyPoints
Expect and manage four turn sell-thru on a product
mix at a jobber store.
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9GROTE 101 grote.com
Merchandising
POSPointofSale(POS)displaysincludespinningracks,dumpbins,andcounter top bins. Grote offers a wide variety of sales tools that allow your customerstodisplaytheirproductinanatypicalPOGfashion.Ifyouhavea branch that is unable to provide a full 4 feet of space or wants to set up aseasonaldisplay,dumpbinsandspinnerracksareaperfectsolution.TheseitemscanalsobefoundinthebackofthemerchandisingandPOGbook.
MERCHANDISING AND PRODUCT DOCUMENTATION
Grote is constantly improving and introducing new documentation to supportthesalesprocess.Asmentionedbefore,theGLBorderformliststheavailablecatalogs,marketingbrochures,andsalestoolsavailabletoorderfromthemarketingdepartment.However,themostefficientmeanstogetup-to-dateproductdataislocatedatwww.grote.com.
The Grote website is brimming with valuable product data, including a liveproductcatalogthatisavailable24hoursaday,7daysaweek.Downloadabledatasheetsareavailableathttp://www.grote.com/marketing/.Thereyouoryourcustomercanchoosetoprintordownloaddata sheets that show photos, line art, electrical data, plus features and benefits of the product. Electronic data interchange is also available. The Grote website is also a good source for identifying new products, promotions, press releases, and product photos.
GETTING THE BUSINESS
The final step in getting the business is setting up a plan to changeover thefleet,orjobberfromaGrotecompetitortoaGrotesupplier.Grotehasaverydetailedchangeoverprogram.TheexplicitdetailsandpaperworkshouldbeworkedoutwithyourlocalGroterepresentative.
Ifyouhaveheardtheexpression,“Planyourwork…thenworkyourplan”,youshouldknowtomapoutyourplannedeffortswhensettingupthefleetstorageandover-the-countersellingareas. •Youwillneedtoknowthenumberofbinboxes,smallandlarge
needed. Know if you have enough room for the new products, catalogrequirements,etc.
•CoordinatewithyourGroterepresentative
•TheJobberstore/branchsellingareainthefrontneedspeghooks,numberofgondolaheaders,POSmaterialsinproperquantity,countermats,posters,productdisplays,etc.
KeyPoints
Make scheduled calls at one
week, one month,
three months and six
months for any questions
your designated contact may
have.
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10GROTE 101 grote.com
Merchandising
In terms of the merchandising effort, it is important to note that your changeover workisnotcompleteuntilyouhavedonethefollowingthings:
•Sweptthefloor,cleanedandstraighteneduptheareaaroundtheGrotepartsarea,infrontandback.
•Madesuretherearecatalogsavailableatthecounter,inthebackwarehousearea(whenpermitted),andinthePOGarea.
•Forfleetscatalogsshouldbeinstorage/inventory.
•MadesurethepartsorderingcomputershavebeenloadedwithGrotepricing and part numbers and that the proper interchanges have been completed to allow the counter personnel to order Grote parts instead of the competitive parts they previously ordered.
•ThecompetitiveinventoryinterchangedtoGroteisinnumericalorder.
•Madesurethatyouhaveprovidedadequateandthoroughtrainingto the sales and counter staff on new Grote products, as well as the Grote part numbering system, catalog, and website.
•Identifiedadesignatedcontact(storemanager,fleetmaintenancemanager,salesmanager,orcountermanager)thatyouwillbespeakingwithoneweek,onemonth,threemonths,andsixmonthsinthefuture.Inthosephonecallsyouwillansweranyquestionsandhelpwithinterchangeproblemsandordering/stockingissuestheymightbeexperiencing.ThiscontactisakeypieceoftheGrotechangeoverexperiencebecauseithelpseaseaprocessthatmightbe difficult for some members of the customer team.
THE UPGRADE
OurjobisnotcompletewhenwegetthesuccessfulchangeoverandthePOGis set. It is the responsibility of the Grote sales person to follow up on regional issuesthatmightbeaffectingthePOG…Agriculturesalesforinstance.ItmightbenecessarytomakechangestotheindividualstorePOGonayearlybasisto meet those regional needs. Every year during the business plan cycle you shouldlookatthejobberPOGsandidentifyareasforimprovement,selectionofnewproductsandwaystoincreasetheLEDcontent.Thismustbedoneatleaseonceperyear.Inafleetitmightbenecessarytoupdatethefleetsurveytoaccountfornewequipmentaddedtothemix.
KeyPoints
New product launches
should be a key part of
your upgrade plan.
KeyPoints
A call back or follow up visit is essential for every change
over.
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11GROTE 101 grote.com
Merchandising
POG, POP AND POS EXAMPLESBelowareadditionalexamplesofthetypesofplan-o-gramsizesandconfigurations,POPandPOS.
4’ Poly Bag4’
8’
12’
16’
Custom Sizes
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12GROTE 101 grote.com
Merchandising
ADDITIONAL RESOURCESTheseresourcescanbeacquiredonlineorthroughthemarketingdepartment.
NOTES
Counter-topbinbox(54173)with54173product
4positionworklampdisplay(POD-001)
GroteSelectdumpbinwithheadercard(00781)