Perfect Store Implementation To Increase SalesOctober 24, 2021
In the previous article, we discussed what Perfect Store is and why FMCG business people should implement it. The definition of Perfect Store is a store where the 6Ps (Product, Pack, Placement, Promotion, Price & Proposition) are applied perfectly. The goal is for customers to get the maximum shopping experience which then encourages increased purchases of goods. Perfect Store is important in the FMCG industry because it is able to align the profile of each store with market conditions, and is a way to reach more customers.
Basically, Perfect Store is a store that provides a convenient shopping experience for consumers. This concept can be implemented with the help of retailers and sales agents/representatives to encourage brand image building This concept was born from multinational FMCG companies, with different terms such as “Perfect Store” by Unilever, “Golden Store” by P&G, “RED – Right Execution Daily” by Coca-Cola and “Flawless Execution” by PepsiCo.
Then, what is the best implementation of Perfect Store to help increase sales?
- Knowing Consumer Behavior Patterns
Companies engaged in FMCG products often conduct research to find out patterns of consumer behavior, one of which is how the movement or trajectory of consumers in the store. By knowing the impulsive patterns of customers in shopping, brand owners can determine where the ideal position of their products is in each store. A simple example, a mother might enter a mini-market just to buy bread, but because besides the bread rack there is jam and butter, she impulsively buys the two items. Likewise, cleaning items in the house, are always in the group. Not surprisingly, near the stain cleaner, there is a cloth hanging just like that. All of these things are basically to encourage impulse buying attitudes.
- Implementing 5Ps perfectly
Product, Placement, Promotion, Price, Pack, and Proposition (6P) is the most basic thing in the implementation of Perfect Store.
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. An approach that targets visitors to each storage area can help create a loyal shopper base. Product availability also needs to be considered. For goods with high substitutability, when our products arrive late or are out of stock, it can cause consumers to switch to competing brands.
From the “placement” side, it is very important to think about where the product is placed in the store to provoke new purchases. For example, we often see at the cashier there are toys and children’s food. Shop owners understand that parents who shop with their children will spend time waiting in line to pay. At that time, the focus of the child’s eyes will be on the items in front of the cashier that encourage purchases.
Meanwhile, promotion and price are two inseparable things. Promotion can be in the form of price reductions, bundling with other products, reward programs, or other initiatives. Meanwhile, price determination is how goods remain competitive, considering that FMCG consumers are consumers who are quite “price-sensitive“.
Packaging or packaging also determines purchasing decisions from consumers. For this reason, it is very necessary to develop attractive packaging according to the target market of each product. The last is the proposition, which is how manufacturers determine the position of their products compared to competitors, which includes uniqueness and what “promises” are given to consumers.
- Develop Key Performance Indicators
Each retail store must define its own Perfect Store standards. It all depends on the target market, distribution channels, and others. But overall, that there are 4 main Key Performance Indicators (KPI) that influence buyer decisions, and for that, you must set clear targets.
The four KPIs are,
- Availability which includes product availability, product variations, out of stock explanations.
- Visibility which includes how products are displayed, shelf sections and levels, planograms, and display layouts.
- Display which includes (Number of products displayed, storefront placement, the introduction of new products/NPI, and promo programs.
- The value which includes price, perceived value, recommendations.
The four KPIs must be monitored properly so that the implementation of Perfect Store runs optimally.