BASIC MERCHANDISING RULES

1. Product Availlability

– The best merchandising material is the product itself.

REMEMBER:

a. All packsize must be availlable.

b. All variants must be display.

c. All kind of display will be filled with the products. (secondary and
primary)

2. SHELF POSITIONING

A. Eye level

B. Within product CATEGORY

C. BESIDE MARKET LEADER OR STRONGEST COMPETITOR

RATIONALE: brand switchers will turn to brand nearest to their previous
brand.

: strong brand will have more customer traffic flow

D. DIRECTION OF TRAFFIC

E. WITHIN SUB-CATEGORY FOR NON-CORPORATE DISPLAY

3. SHELF DISPLAY / BRAND DISPLAY

A. CLEANLINESS - be sure that all shelves and displayed products are always
clean.

B. BRAND VISIBILITY - all brand name must be visible.

C. COLOR SCHEME(COLOR CONTRAST)

- color contrast of hte brands versus variants and versus competitor’s
products should be considered.

D. STABILITY OF DISPLAY - always check the completeness of the products on
the display.

E. STARTER GAP PRINCIPLE - removing 2-3 packs so new users would think “if
others will buy it, I will buy it too. It must be
worth trying.”

F. STOCK ROTATION - FIFO

F - irst

I - n

F - irst

O - ut.

- All first book items and delivered must be first in
the display.

4. SHELF FACINGS

A. provide more space for the fast moving variants.

- consumer passes an average of 300 items per minute or 5 items per second.

5. VARIANT SEQQUENCING

A. smaller to bigger pack size

- Bigger pack size to the right (Most consumers are right - handed. This
would encourage consumers to purchase bigger pack sizes.)

6. PRICE MARKING

A. up to date, clear and clean.

b. price mark your products and merchandising materials.

c. use red ink.

d. handwritten figures

e. priced products will move twice as much as unmarked products.