Measuring merchandising effectiveness
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Measuring Merchandising Effectiveness. ACNielsen Romania October 2005. Agenda. Defining the merchandising standards How can we determine the impact of merchandising on sales? Location types – examples POPM types - examples Merchandising criteria – examples The best mix.

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Measuring Merchandising Effectiveness

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Measuring Merchandising Effectiveness

ACNielsen Romania

October 2005


  • Defining the merchandising standards

  • How can we determine the impact of merchandising on sales?

  • Location types – examples

  • POPM types - examples

  • Merchandising criteria – examples

  • The best mix

Defining Merchandising Standards How do I want my products to look like in the stores?

In standards definition/fine-tuning, several main areas should be covered:

  • In which area of the store do I want my products to be present?

    • In Category Section

    • In Main Traffic

    • End of Isle

    • At Check-Out

    • Secondary Placement

  • What do I place?

    • Products

    • Products aided by POPM

    • Other aids

  • How do we place?

    • Merchandising criteria

      And most important.......WITH WHAT RESULTS?.......or......



Within the multitude of messages in a store, the shopping experience is not always easy …

Through merchandising we can help our customers decide easier and better…. And hopefully to select OUR brand 

A successful merchandising program is a synergy of several factors

  • The Impact of the merchandising activities on the sales depends on a lot of factors:

    • Category type

    • Store type

    • The brand

    • Quality of the aids

    • Competitive activity

    • Implementation quality

    • Permanent review

    • Other factors

  • The impact can be determined through:

    • Past evaluation

    • In store tests of new concepts

How can we determine the impact of merchandising on sales?

How we analyse:

1) First we analyse individual activities in terms of scope and impact on sales:

  • We compare the sales of the stores where a specific activity is present with the average of all stores or with the stores not having that activity

  • We have to bear in mind that the merchandising activities are generally placed in the “good” shops. Thus the results per-se show higher impact due to the fact that these shops are by definition preferred stores for that brand.


  • Product in Main Traffic Flow - 5% contribution

  • Floor Display in category section - 6% Contribution

    2) Then we analyse the interactions between these activities, resulting in a joined impact :

    - Main Traffic Flow + Standing Display in category section - 5.5% contribution

    This shows that adding up of the activities is not necessarily an additive process but a multiplicative process.

    3) Finally we determine the combination of activities that delivers the highest impact (sales, share or impact on competition).

Locations Types

  • Category section: where most products of a specific category are placed

  • In main traffic: on (one of) the main route(s) from entry to exit

  • End of Isle/end of gondola

  • At Check-out

  • Secondary placement: any other location in the store except of the above

  • …….

POPM Types

Most frequent POPM encountered in the stores:

  • Floor Display

  • Shelf Display

  • Poster

  • Sticker

  • Wobblers

  • Shelf stopper

  • Section marker

  • Hanger

  • Stripes

  • Shelf display

  • Shelf liner

  • Shelf tray

  • Shelf talkers

  • Header board

  • Counter display

  • Window display

  • Pyramid

  • Money tray

  • Leaflet tray

  • ........

Location and POPM ScopeIn how many stores my brand and its main competitor are in Location Y and have POPM Z?

What Activity has the highest impact ? How am I performing when...Eg. I have Shelf liners in the store and I am at Check-out ?

Other correlations:

My total company share when I have...

My sales per shop when... (how important are these shops)

My competitor share when I have….

How many POPMs should I place to obtain maximum impact but not waste money?

How does my POPM impact my competitor brand ?

What is the combined impact of activities (for me and my competitors)?

Merchandising Criteria

Most frequent criteria encountered in the stores:

  • Facings

  • Brand block

  • Beginning/end of section

  • Eye level/ shelf no X

  • Near product Y (own or competitor’s)

  • Within segment Z

  • Near category W

  • Exclusive location

  • At hand level

  • Product order

  • Coupons

  • Coupon/promo/demo ladies

  • Product sampling

  • Long term appearance in the leaflet

  • ...

What Criterion has the highest impact ?How am I performing when...Eg. My products are displayed in Brand Block in channel ABC?

What Criterion/Level of criterion has the highest impact ?How am I performing when...Eg. I have less than 7 facings in channel ABC?

At the end of the analysis, the most effective standard for a specific channel is determined (based on past record)

For example, Brand X

  • In Hyper/supers the optimal merchandising mix includes:

    • In Category section:

      • Floor Display (2 stands)

      • Shelf Liner

      • min 10 facings placed in brand block at eye level and next to key competitor,

      • price communicated

    • paired with a Second Placement in Main Traffic.

  • The impact range is: 8.9% to 18.9% more volumes, depending on the store size and competitive activity

  • On main competitor the impact is – 5% to – 8.9% less volumes

Thank you for your attention!

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