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Perfect Store Implementation To Increase Sales

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,

  1. Availability which includes product availability, product variations, out of stock explanations.
  2. Visibility which includes how products are displayed, shelf sections and levels, planograms, and display layouts.
  3. Display which includes (Number of products displayed, storefront placement, the introduction of new products/NPI, and promo programs.
  4. The value which includes price, perceived value, recommendations.

The four KPIs must be monitored properly so that the implementation of Perfect Store runs optimally.

What is Perfect Store and How to Apply It?

One of the needs to face retail business competition is mapping the strategic placement of products in outlets, which easily attracts consumers’ attention and will have a direct impact on increasing sales. The “perfect store” is a method that accommodates these activities. The definition of a 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 business because it is able to align the profile of each store with market conditions, and is a way to reach more customers.

  • How can that be?

When shopping for retail at a store, have we ever thought about how store workers manage the placement of goods at the outlet? Are only grouped by types, such as food and cleaning equipment in their own place. However, we often see some brands placed on the front shelves, while there are other brands of the same type that are placed behind.

The use of Perfect Store terminology is different for each FMCG company but actually refers to the same activity. “Perfect Store” is used by Unilever, “Golden Store” by P&G, “RED –Right Execution Daily” – by Coca-Cola, “Flawless Execution” by PepsiCo, and “Pictures of Success” by Belfoods and Sinarmas.

  • Perfect Store Application

The application of Perfect Store can be different for each outlet. A salesman or salesforce must know the character of each store to implement Perfect Store properly. Some of the factors that must be carefully analyzed in each store include:

  1. What is the appropriate grouping of goods?
  2. What is the best pricing and promotion strategy?
  3. Where is the best location for your product in-store?
  4. What is the best display?

In addition, the principal or distributor must also know the character of the visitors to each store. The characters here are how they choose products, how the visitor’s route around the store, including how they respond to the promos that are in the store. The pattern of store service also greatly influences purchasing decisions. This can also be a consideration for distributors in deciding which store is the most appropriate to sell their products.

For FMCG businessmen who are new to implementing Perfect Store, the main pattern that must be seen is when customers enter the store. Generally, they will be attracted to items that get large displays, in strategic places, or dominate. The ease of getting items on the shelves is also very important, for example, one brand gets a position of up to 2-3 rows on one shelf so that its position looks dominant and catches the eye. Purchase opportunities will generally be greater for products with displays like this.

However, the shop’s job is not only to make them buy the product but how to fill their shopping cart with more or how “impulse buying” happens to every consumer. In order for impulse buying to occur, the store needs to design other strategies such as discount promotions, bundling promotions, or club member promotions.

The implementation of Perfect Store must be accompanied by accurate data collection. This data will be the basis for making decisions for various strategies to improve the implementation of the next Perfect Store or the same implementation in other stores.