FUNDAMENTALS OF MERCHANDISING Jan 1, 2008 12:00 PM
, By Leila T. Griffith
Product is the lifeblood of your business
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So when was the last time you put any serious thought into the way you merchandise your catalog, Website, or stores? Many people in the industry think they understand what merchandising is all about, yet they continue to make the same mistakes over and over. Let's start the new year right with a quick refresher course on the basics.
Understand the niche and the target customer
Before any item is brought in for review, it's critical that the merchants and the marketers know who the target audience is. It is assumed that in the initial research, you selected a market that is unexploited, unexplored, or underserved, and that your niche is narrow or well defined.
The customer should always be a part of the mission statement. To make sure the merchandising department understands who she is, describe the customer in writing with as many details as possible, then revisit this description regularly and revise it when necessary.
Create a visual image of the customer, and make it available to everyone on the merchandising and creative teams. Does she drive a Mercedes or a Subaru? Is she a professional, a homemaker, retired? What does she read or watch on TV, what are her hobbies, is she traditional or a trend setter, is she a college graduate, what is her religious affiliation, etc.?
Consider where you have authority and apply this to individual items, to categories, and to price points, as well as to the overall merchandise mix. Never forget your niche and always follow your mission. Just because an item is a run-away best seller for one catalog or one vendor doesn't mean it fits your niche — be discriminating and learn to edit.
Catalog/Internet customer vs. store customer
Catalog customers and store shoppers have different interests and buying patterns. A retail customer needs the entire shopping experience, browsing from one department to another, one store to another, interacting with other people.
Then she wants to be able to touch the products, to see every side and angle, and try them on. Sometimes her buying ritual is necessary to make a decision — at times it's the approval or disapproval of a sales person or fellow shopper that encourages her response.
The catalog shopper, on the other hand, doesn't need to feel the product. In fact, the idea of going from department to department or store to store, perhaps taking her clothes on and off or trying to visually place a decor item in her living room or kitchen, is daunting.
Catalogs and Websites can coordinate complementary products — for instance, showing a sweater, skirt, scarf, bag, and shoes on one model in motion, or including a table, lamp, chair, picture frame, throw pillow, and rug in one lifestyle shot. So the direct customer gets a good idea of how the product will look on her or how it will enhance her home. She prefers shopping on her own schedule, and she responds to the convenience. She relies on the copy to inform her of the products' sizes and dimensions and their benefits and uses.
Core catalog product attributes
Just as the catalog and retail store customers are different, the products offered in brick-and-mortar establishments and catalogs and Websites are different. Here are some of the attributes to consider before including an item in a campaign:
Uniqueness or exclusivity
Appeal to the target audience
Supports margin requirements
Vendor reliability
Inventory volume
Realistic lead times
Packaging that meets the warehouse requirements
Utilitarian
Trendiness or timeliness
Product history
Fit with the planned merchandise mix
Gut reaction
Quality
Follows a theme
Meets the mission statement and niche
You should also ask several questions about any product you're considering, such as:
Does it have the ability to sell from a photograph?
Does it meet carrier shipping criteria?
Does it have more than one use?
Is sizing or fit easy or a challenge?
Does it tell a story, can it be romanced?
Does it meet its industry standards, such as U.L. approval, or building inspection codes, no lead in paints and glazes, flame retardant material, and so on?
And if assembly is required, make sure the product is easy to put together. Always have someone in the company do this before you make any final decision on the item.
