Learn more about Merchandising for CPG brands. This article summarizes our podcast episode with Georgios Tzafis from Trax Dynamic Merchandising.

You can say listen to the full podcast episode here: https://podcast.foodbevy.com/1832151/12518590-103-merchandising-for-emerging-cpg-brands

What is Merchandising?

Merchandising is the process of staging your product at the shelf in the store in order to attract more consumers. Having the product very well placed and with the right presentation helps you drive more sales when the consumer encounters your product.

Many times you need to place your product in other areas in the store that you expect higher traffic for the type of consumer you want to attract. Sometimes you can put it close to complimentary products. Sometimes you can put it in areas where you can drive more impulse buying.

Who’s Responsibility is Merchandising?

Many founders would like the retailers to be responsible for merchandising, but the reality is that brands are ultimately the ones responsible. The retailer’s responsibility is to drive people to the stores and make products available to purchase. When customers enter the store they have thousands of products to choose from. Sometimes you’re competing with other companies and other times you’re competing with the retailer’s own private label brand. If Customers can’t find your product they have many other options to choose from.

Especially in the reality of the covid, the stores don’t have the resource to do the stocking and the merchandising that we believe is their responsibility. So, number one, they don’t invest in their resources and nor have enough labor to support it.

Number two, at the end of the day, it doesn’t work against retailers because the consumer will come to the store and buy something else if they don’t find in your product. Additionally, other companies that use their own trucks to deliver their product or have a DSD distributor are going to make sure their products look best and get them in front of the consumer.

Why do I need Merchandising?

When you are a new brand in the store you have zero brand awareness. The only way to convert a new customer is right there at the shelf. First you need to have great packaging that is noticeable and communicates your unique offering and the attributes. Next you need to have the product available in a great presentation so you can convert a first time customer. That’s where merchandising comes in.

Good merchandising can make sure:

• Product gets on the shelf from the back room.
• Product is in the correct aisle at the correct shelf.
• Sales tags show up at shelf and scan through register.
• Out-of-aisle displays are in place
• Demos are setup

Takeaway

Getting your product on shelf is only the first step to success in retail. In 2018, my product TeaSquares launched in 100 Mariano’s grocery stores throughout Chicagoland. I didn’t know about merchandising and just thought the product would just sell itself.

What happened? The product was stuck in the back room, didn’t scan at checkout, ended up in 5 different aisles, and our out-of-aisle checkout displays only showed up in 20% of locations. After just 9 months we lost our shelf placement because our product wasn’t selling.

I know first hand the consequences of not properly merchandising and this is why I’m a huge advocate.

SPONSOR: This article was written in partnership with Trax Retail. As your brand grows in retail, there comes a point when you can no longer manage how your products are showing up on shelf, if at all. Trax has a suite of merchandising services so you can make sure your product correctly shows up at retailers and sells off the shelf.