The previous article discussed the Perfect Store and why FMCG businessmen should implement it. Perfect Store is a store where 6P (Product, Pack, Placement, Promotion, Price & Proposition) is perfectly implemented. The goal is for customers to get the maximum shopping experience that drives increased purchases. Perfect Store is important in the FMCG industry as it can align each store's profile with market conditions and a way to reach more customers.
The concept can be implemented with the help of retailers and sales agents/representatives to encourage building a brand image. The idea was born from the multinational FMCG company, with different terms such as “Perfect Store” by Unilever, “Golden Store” of P&G, “RED – Right Execution Daily” by Coca-Cola and “Flawless Executions” by PepsiCo.
Then, how do you best implement the Perfect Store to help boost sales?
Knowing Consumer Behavior Patterns
Companies that operate FMCG products regularly research to find patterns in their consumer behaviour, one of which is the movement or traffic of consumers inside the store. By knowing customers' impulsive shopping patterns, brand owners can determine the ideal position of their products in each store. For example, a mother could go to a mini-market to buy bread, but she impulsively buys the two because there's jelly and butter beside the shelf. So are the toiletries in the house, always with the group. Not surprisingly, next to the stain cleaner, there's a cloth hanging. All these things encourage impulsive buying.
Implementing 5P perfectly
Product, Placement, Promotion, Price, Pack and Proposition (6P) are the most basic things in the Perfect Store implementation.
The product placed in the store is very important. Not all stores need to sell the same product; many factors consider the best store location for each product. Approaches with targeted visitors to each store area can help create a loyal buyer base. The availability of the product should also be taken into account. For goods with high substitution properties, when our products are late to arrive or empty, it can cause consumers to switch to competitors' brands.
From the "placement" side, it's essential to consider where the product is placed in the store to fish new purchases. For example, we often see toys and children's food at the cashier. The store owner understands that parents who shop with their children will spend time with the subscribers when they pay. At that point, the child's eye will focus on the items in front of the cashier driving the purchase.
Meanwhile, promotion and price are two inseparable things. Pricing is how goods remain competitive, given that FMCG consumers are quite price-sensitive.
Packaging or packaging also determines the purchasing decision of the consumer. For that, it is necessary to develop attractive packaging that fits the target market of the respective product. The last is a proposition: how manufacturers position their products compared to competitors, including uniqueness and what "promises" are given to consumers.
Develop Key Performance Indicators
Every retail store has to set its own Perfect Store standard. It all depends on the target market, its distribution channels, etc. But overall, there are 4 key performance indicators (KPIs) that influence buyer decisions, so you have to set clear targets.
These four KPI's are,
- Availability that covers product availability, product variations, and stock descriptions.
- Visibility includes how products are displayed, parts and levels of shelves, planograms, and display layouts.
- Display that covers (the number of products displayed, exhibition placement, new product introduction/NPI, and promo program.
- Value includes price, perceived value, and recommendation.
The four KPIs must be well monitored to optimise the Perfect Store implementation.
