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.
Measuring Merchandising Effectiveness
In standards definition/fine-tuning, several main areas should be covered:
And most important.......WITH WHAT RESULTS?.......or......
WHAT IS THE MOST EFFECTIVE MERCHANDISING MIX FOR MY
Through merchandising we can help our customers decide easier and better…. And hopefully to select OUR brand
How we analyse:
1) First we analyse individual activities in terms of scope and impact on sales:
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).
Most frequent POPM encountered in the stores:
My total company share when I have...
My sales per shop when... (how important are these shops)
My competitor share when I have….
Most frequent criteria encountered in the stores:
At the end of the analysis, the most effective standard for a specific channel is determined (based on past record)
For example, Brand X
Thank you for your attention!