Unit 30: Visual Merchandising in Retail

Starter Activity – 10 mins

In groups:

For the type of retail outlet your group has been provided with, list 6 key points about the environment which would encourage you to buy. For example, promotions they have on, displays they use, and layout of display units Then rank them as a potential customer, 1 being the most important, 6 being the least.

Group A – Mobile phone shopGroup B – A large clothes storeGroup C – A travel company

Unit 30 – Hand in for first three outcomes – 28/11/14

Learning Outcomes:

On completion of this unit a learner should:1. Know the visual merchandising and display techniques used in different retail outlets2. Know how space is used for merchandising and displaying goods3. Understand the psychology used in visual merchandising to influence customers to purchase goods4. Be able to plan and assemble a safe visual merchandising display for a range of goods (this task will be completed when you run a business event in Unit 18 in a future term this year)

Lesson Objectives

By the end of this session, you will have:

• Identify what merchandising is• Begin to analyse different marketing techniques

used by retailers• Relate case studies

What is merchandising?• “The activity of promoting the sale of goods at retail.” • “Merchandising activities may include, display techniques, free

samples, on-the-spot demonstration, pricing, shelf information, special offers, and other point-of-sale methods”.

• www.businessdictionary.com/definition/merchandising

• “Merchandising is the arrangement of products in a physical or online store to maximize sales”

• Unit = 5 passes, 3 merits, 2 distinctions

Question open to the group

•Why are well thought out and dynamic merchandising techniques so important to retailers?

Task 1 -

• Describe how visual merchandising techniques are applied to goods in different types of retail outlets. – Pass 1

• Analyse the visual merchandising and display techniques used to present goods in retail outlets. – Merit 1

• To complete this task, you need to access three very contrasting retail outlets who sell different goods and displayed them very differently.

• They may also differ in size, ownership (national chains have more money to spend on displays than independently owned high street retailer), the size and nature of the goods, and the value of the goods.

Case studies – how would you describe the layout of each retailer outlined?

Ikea:Room sets with a number of items that can be purchased within the outlet. Beds/sofas e.t.c can be ‘trialled’ by the customer and measured/visually assessed.

Flat pack furniture (not built) – numbered on the displays around the store corresponding with aisle and bay stock numbers

Standard ‘shop’ layout whereby goods are displayed in colour blocks where possible and available to touch/feel/measure/try .

Second case study- Car show dealership:

• Bright lights, large forecourts with cars line up in some kind of pattern. Cars accessible inside and out.

Spacious and clean environment inside. All cars are cleaned and polished regularly. Lots of glass in the buildings so passing customers can see the cars and light streams in bouncing off gleaming cars.

Cheaper cars are generally priced. Luxury cars tend not to be. If somebody is considering buying one they will have the money and have dreamt about their ‘dream’ car beforehand

Individual activity – research – Pass 1, and also helps to complete 2 and 3. (Homework)

• You now need to begin researching three very different retail outlets and start taking photos of merchandising techniques used by your chosen retailers.

• You will also need to sketch the layout of the outlet which will then be reproduced neatly in the classroom.

• Also make as many notes in the outlet as you can noticing the detail used in order to attempt to sell as many products as they can. Identify ranges, where they are and ask yourself why they are there.

• A template on Moodle has been provided to help you make notes

Types of retailers – lots of choices – our find others with your tutors permission

Independent outlet – normally on high street i.e. butchers

Medium size discount stores

DIY/Garden Centres

Market Stalls

Franchises ie. Subway Car dealership

Department Store i.e. Debenhams

Concessions – i.e. make-up and

beauty stands in department stores

Multi-range supermarkets

References to help with homework Further reading to help with this assignment:http://smallbusiness.chron.com/definition-merchandising-techniques-18341.html

www.thegrocer.co.ukwww.marketingweek.co.uk Any home interior magazines

On line magazines and back issues in your classroom