MKT 3260 Shoprite Build a Store Year End

What aisle is the milk in ? (and why….) : 

What aisle is the milk in ? (and why….) Marketing & Merchandising How do you, as the Marketer, look at the store ? How do you, as the Customer, look at the store ?

Bob Silk Wakefern Food Corporation : 

Bob Silk Wakefern Food Corporation Non – Perishable Merchandising (Center Store) 1987 – Current In-Store Operations / Management Shop-Rite, Foodtown, Acme, A&P 1975 – 1987 MS Food Marketing 2010 St. Joseph University Philadelphia, Pa. BS English Education 1975 Kings College Wilkes-Barre, Pa.

So many options across many varied channels that are available to the consumer : 

So many options across many varied channels that are available to the consumer Supermarkets Category Killers Hypermarts (Petco / Staples, et. Al). C-Stores Home Centers Alternate Formats Wal-Mart (all footprints) Mass Merchandisers Drug Food & Fuel Club Stores

So much competition in each channel for that same consumer !!! * : 

So much competition in each channel for that same consumer !!! *

Marketing : 

Marketing Marketing is the process by which companies create customer interest in goods or services. It generates the strategy that underlies sales techniques, business communication, and business developments. It is an integrated process through which companies build strong customer relationships and creates value for their customers and for themselves.

Marketing : 

Marketing The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.

Merchandising : 

Merchandising The methods, practices, and operations used to promote and sustain certain categories of commercial activity. In the broadest sense, merchandising is any practice which contributes to the sale of products to a retail consumer. At a retail in-store level, merchandising refers to the variety of products available for sale and the display of those products in such a way that it stimulates interest and entices customers to make a purchase

Merchandising is the 5 R’s : 

Merchandising is the 5 R’s The Right Product At the Right Place At the Right Time At the Right Price At the Right Quantity

How are each of these disciplines integrated and utilized to create and produce the finished product that the consumer sees ? : 

How are each of these disciplines integrated and utilized to create and produce the finished product that the consumer sees ? Points to consider….. Does the marketing of the individual product influence the merchandising and presentation ? If so, how ? Should marketing affect product placement in the designated category ?

Center Store : 

Center Store Exactly what encompasses the area “center store” ? Basically, it is almost always the “center”, usually bracketed by Meat, Dairy, Frozen and Produce as well as Appetizing and Floral.

Flow * ( logical commodity placement) : 

Flow * ( logical commodity placement) Perishable vs. Non-perishable Seasonality / Promotional Ethnicity Impulse Buys Cross-Merchandising Opportunities “Full” shopping carts Endcaps & Displays Perimeter Categories

Promotional : 

Promotional What’s on sale this week ? Endcaps vs. “cut-outs” Importance of placement in the “flow” * “Wings” (aka aisle stacks) Here are some examples.

Seasonality : 

Seasonality The right product at the right time !! Finite selling “window” Logical placement Integration outside of Center Store parameters Here are some examples

Ethnicity * : 

Ethnicity * Know your DEMOGRAPHIC and Merchandise to it !! Address unique Cultural & Religious product needs and requests with the proper and appropriate mix. Here are some examples

Emerging & Current Trends * : 

Emerging & Current Trends * The mix is always in a constant state of flux. While new items will always remain a staple, you must also be aware of emerging trends, especially in health and wellness. Gluten-Free ….. Diabetic…… Natural…Holistic But not only edibles !!!!! THINK GREEN !!!

Cross - Merchandising * : 

Cross - Merchandising * The “secret” to gaining incremental volume through an “impulse” buy. Location, Location, Location “I don’t really need this, but….” Here are some examples.

Clip - Strips : 

Clip - Strips

Consider the importance of Private Label in your product mix !! * : 

Consider the importance of Private Label in your product mix !! * Compare & Save Merchandising Good or Bad ? Does it help or hurt brand equity ?

What about those checkout lanes ? : 

What about those checkout lanes ? Register Racks Candy-Free Lanes Soda Coolers Candy, Candy, everywhere !!! “I could use one of those…. Candy-free Lanes (positive or negative) Here are some examples

...and the most important element….. * : 

...and the most important element….. * Synergies & Adjacencies Logical product placement based on like commodities that are grouped as destinations for the consumer based on clearly identifiable trends and buying patterns.

Synergies & Adjacencies : 

Synergies & Adjacencies It’s all about logic and common sense !!!! Product Placement (front & back of aisles) “Like with Like” Here are some examples.

“If I merchandise it, they will come….” : 

“If I merchandise it, they will come….” Anonymous

The premise of effective “flow” : 

The premise of effective “flow” Last aisle……full cart Perishables vs. Non-Perishables Ice Cream, eggs, bread, etc. etc. etc. SIMPLE LOGIC

Your (fun) assignment : 

Your (fun) assignment Your store Your empty “footprint” Create your “neighborhood” and build your successful supermarket. Create your own supermarket floor plan based on what we have seen and discussed today. You can create the flow that you feel would be the most desirable and enticing to draw the consumer into your retail establishment.

Project Encompasses Key Areas of Course : 

Project Encompasses Key Areas of Course Situation Analysis Targeting Customers and Gathering Information Choosing a Store Location Managing a Retail Business Merchandise Management and Pricing Communicating with the Customer

Year End Project Part 1 : 

Year End Project Part 1 Select a location based on your team location. Teams selected are Four locations in descending order of preference (Jackson and Toms River) Two locations in descending order of preference (PP/Brick Only) Must be convenient for team members to visit

Year End Project Part 1 : 

Year End Project Part 1 Think about sites with a balance mix of demographics Age Income Ethnicity Family size

Year End Project Part 1 : 

Year End Project Part 1 Think about site locations Traffic Patterns accessibility Safety Neighborhood makeup Urban apartments mostly walk-n traffic Suburban condo/sing family homes mostly drive in Free standing or Strip Mall

Year End Project Part 1 : 

Year End Project Part 1 Retailer adjacencies and parasite stores Examples to be aware of Petco Staples Hallmark Foodservice Delis, Pizzeria, Paneras

Slide 54: 

Your store print is your own creation. There is no real “right or wrong”…..however….. Logic and originality are two key touch points that should be employed in your offering.

GOOD LUCK !!!!! : 

GOOD LUCK !!!!! Any questions, problems or concerns, Please contact me @ robert.silk@wakefern.com