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MerchandisingMASTERY STATEMENT:
G R O T E T R A I N I N G S E R I E S
In this module you will learn the Grote merchandising system and be able to identify and use the various components that are available.
At Grote Industries, merchandising has a broad definition and includes: •PointofPurchase(POP) •PointofSale(POS) •Plan-O-Grams(POG) •Promotions •ProductPackaging •Store/Walk-inareamaintenance •Tradeshows(bothnationalandlocal) •Literature •Grotewebsiteandelectronicorderingmechanisms
PropermerchandisingisanimportantfunctionintheGrotesalesprocess.Youneedtounderstandhowtheseitemscanhelpyougathermorerealestateandmarketshare.
MarketClassification ...................................................................................... 2TheTotalPackagefortheAutomotiveMarket ........................................... 3DisplayingtheProductinyourBranchorStore ......................................... 4CreatingaPOG ................................................................................................. 6RightLampsfortheJob .................................................................................. 7MerchandisingandProductDocumentation .............................................. 9GettingtheBusiness ....................................................................................... 9The Upgrade ................................................................................................... 10POG,POPandPOSExamples ...................................................................... 11Additional Resources .................................................................................... 12
2GROTE 101 grote.com
Merchandising
MARKET CLASSIFICATION
AtGrotemerchandisingistypicallyappliedtotwomarkets:
Traditional – Automotivemarketsarecomprisedmostlyofautomotivewarehousedistributorswhichsellproductsusingtheindependent3-stepdistribution models.
Heavy Duty – MarketiscomposedofHeavyDutydistributors,OEDealersupplynetworks,andcompanyownedgroups.
It’simportanttoknowwhatmerchandisingmethodsareavailable.Thisway,whenyoubringnewcustomersonboard,regardlessofmarkets,youcan suggest to your customer the proper products to build the offering for maximumexposure.Itisimportanttocreateastrong,professionalimage.
Grote Package DesignLet’sbeginattheproductlevelandthepartsdeliverymechanisms.Grotepartscanbeofferedinthreebasicpackagingformats:
•Bulkquantitywithoutpackaging(partnumberby-3suffix) •Polybagpackagedproduct(noextension) •RetailPackagingincardedorfour-colorboxes(partnumberby
-5suffix)
Grotebulkpackagingisidentifiedbya-3attheendofthestandard5-digitpart number. This generally indicates that a full case is being shipped withoutfurtherpackagingtothedistributor.BulkpackagingisusedinshippinghighusageproductsandinsomeOriginalEquipmentpurchasestoeasetheinstallationprocessandtoreducepackagingcosts.Atoptionofthedistributorthisproductissoldtothemarketinlessthancasequantity.
ThestandardGrotepolybagisabluebagthathasasee-throughpanelfrontandback.AtthetopofthebagisaprintedareafortheUPC,partnumber, and product description in English, French, and Spanish. The GrotepolybagisgenerallyconsideredapackagingtypefortheHeavyDutymarket,butitisincreasinglybeingacceptedintheTraditionalAutomotivemarketplaceaswell.Ingeneral,polybagpackagingislessexpensivetothecustomerthanthe-5retailpack.Someslowermovingproductsarepackagedinanon-graphiccolorpolybag.
BasicGroteretailpackagingcanbeofseveraldifferenttypes,butallare,withafewrecentexceptions,indicatedbya-5suffixtothestandard5-digitpartnumber.Theretailpackcanbeaproprietaryslide-lockpack,displaybox,windowbox,orclamshell.Grotehasmadesignificanteffortstomaketheclamshellandslide-lockpacksassmallaspossibletomakePlan-O-Gram(POG)setupflexible.Thereisusuallyapricepremiumforretailpackproductincomparisontopoly-baggedproduct.Likethepolybag,theretailpackalsocontainsdescriptionsintrilingualformat.
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Inadditiontothetrilingualcopy,anothersignificantsellingpoint/featureoftheGroteretailpackistheinclusionofCADdrawings/linearttoshowexactmeasurementdata(thisallowstheconsumertoknowthatthepartwillabsolutelyfitbeforepurchasing,reducinglaterreturns)andfeatureandbenefitdataprintedonthebackofthecards/package.Thisisauniquefeaturethatfewmanufacturersoffer.
In-Store MerchandisingIn-storemerchandisingisoneofthemanybenefitsthatGroteoffersitscustomers.WhetheryouareaHeavyDutycustomerthatreliespredominantlyondeliverysales,
oraretaillocationthatdependsonwalk-intraffic, the Grote merchandising plan is an important element in the sales process.
THE TOTAL PACKAGE FOR THE AUTOMOTIVE MARKET
There is one piece of literature that best identi-fies the Grote merchandising sales approach. TheTotalPackageBrochureidentifiesthesix
keyelementsthat identify what Grote has to offer a typical automo-tiveaftermarketdistributor.
Themaintake-away is that the Grote sales process isn’t about selling a light in abox,weofferagreat deal more. This “more” is what separates the Grote line from our competitors suchasPeter-sonandOptronics.TheTotalPackagehelpsdrivelightingsalesthroughthejobbernetwork.
Step 1.MerchandisingandPackaging:theseitemswillbecoveredin-depthinthissection.However,themainelementsareourslidelockpackaginganddisplayboxesthatallowcustomerstoquicklytakereturnsandputthembackontheshelftoavoidstockingfeesandincreasingprofits.
KeyPoints
Grote’s trilingual
packaging is written
in English,Spanish,
and French.
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Step 2.Plan-o-Grams:Groteplan-o-grams(againcoveredingreaterdetaillater)deliverstylisticallycomprehensivesalestoolstoallowjobberstorestoboostprofitsthrough high yield inventory turns and impressive store sets.
Step 3.ExclusiveProduct:wehavemanyitemsthatourcompetitionjustcannotmatch or offer. Our engineering and product development process is a significant sales benefit and needs to be addressed when dealing with price conscious buyers that try to compare us to our competition.
Step 4.LiteratureandCatalogsupport:Ourcomprehensivecatalogisfullofprod-uctinformationtomakethecounterman’sjobaseasyaspossible.Withfullcolorphotos,detailedlinedrawings,electrical/technicalinformationwithfeaturesandbenefits,itisasalesman’sbestfriend.Wealsohavereamsofothersalesliteraturetohelpclosethesale…muchofitavailableforquickdownloadfromtheGrotewebsite.
Step 5.KnowHowtraining-ourmulti-awardwinningtrainingprogramisuniqueinthe lighting industry and is available for our customers and in turn our customers customer. This program is currently a two volume set that covers basics of elec-tricity and troubleshooting. It is a certification program that includes hats, patches, and wall certificates.
Step 6.GuaranteedChangeoverProcess-thedetailedchangeoverprocessiscov-eredbyyourlocalrep.HecanoutlinetheTotalPackageprocessforthecustomer.
AsyouwalkthroughthesesixstepsitshouldbequicklyapparentthattheGroteprogramismorethanthelampinthebox…it’snotthelightsyousell,it’showyousell the lights.
DISPLAYING THE PRODUCT IN YOUR BRANCH OR STORE
Step 1. How will the sale be created?
•Phone/Countersales •Deliveryofparts(wholesaling) •Walk-intraffic
Afterthedecisionhasbeenmadeastowhattypeofproductpackagingwillbemarketed,thenextdecisiontobemadeishowtodisplaytheproductforsale.Grotehasoptionstosatisfypracticallyanysituation.Dependingonthecustomer’sin-storemerchandisingstrategy,youmaywanttouselabeledbinboxesforthebackwarehouseareawhileusingpolybags,bulkproduct,oraretailpackPOGinthefront of the store.
Grote has several options for merchandising products including: Bin Boxes-Binboxesarethemostcommonmethodforstoringproductinthebackofthewarehouseorinthefrontofthestorewhenusingabulkset-up.Grotehastwosizesofbinboxes:asmallbinbox(99920)andamuchlargerbulkbinbox(00780)forstoragepurposes.Eitheroftheseoptionsmaybeappropriate.
KeyPoints
Six Key Elements:
1. Merchandising and Packaging
2.Plan-O-Grams
3.Exclusive Product
4.Literature
and Catalog support
5.Know How
training
6. Guaranteed Changeover
Process
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Retail Plan-O-Grams (POGs)-GroteusesSpaceman® Suite Merchandising Servicesplan-o-gramsoftwaretocreateprofessionalPOGsforthestorefront.GroterecentlyupdateditsPOGofferingtoincludearefreshed4-foot,8-foot,12-foot,and16-footoption.IfyourcustomerislookingtousetheGroteretailpackagingstyle,thenoneofthesePOGswillcertainlybetherightsolution.ThePOGScanalsobeconvertedtopolybagandbulkofferings.
Ifoneofthepre-packagedsolutionsisnotsuitable,ifthereisenoughtime,aspecialPOGcanbedesignedtoutilizeexistingstockand/orrequirementsacustomermighthave.AdditionalPOGsfor3-footsections,orendcaps,areavailableforseasonalitems.PolybagPOGsarebecomingmorepopularaswell,and this product is suited for hanging on peg holes.
Step 2. How to create and merchandise a customer’s selling areaIfyouareworkingbehindthecountertomerchandisetheproductontheshelves, please follow these recommendations:
•Productshouldbedisplayedinnumericalorder.
•Productshouldbeplacedinbinboxesclosetoeyelevel,withexcessinventoryplacedinawell-labeledoverflowcartononatopshelforbelowtheshelving-ifthereisspace,itcanbeplacedbehindthebinbox.
•Binboxesshouldbecleanandhaveexcesslabelingcoveredorremovedtomakeitaseasyaspossibletoseetheproduct.
•Thebinboxshouldhaveeasytoreadlabelswithpartnumbersprintedinblackpermanentmarkeronthefrontofthebinbox.Oftenaddress-stylelabelsareused,buttheydonotholdupintheharshenvironments of a warehouse. If you choose to use labels, you must makesuretheyremainclearandeasytoread.
•Abulkdumpbindisplaycanbeusedforpromotionalitemsorfastmoving products.
Manyofthesamestepswillbeinorderwhenstockingbulkproductorbulk-displayedpolybags.Makesuretheproductisclean.Dependingonthe customer’s interior storage and inventory procedures, there may be an excessiveamountofdirt,grime,andbrakedustinthestoragearea.Youwillneed to spend some time cleaning up the product area whenever you stop into the customer location.
If you are setting up a retail pack POG for a customer, keep the following tips in mind:
•Usethepegdiagramtopre-setthepeghooksinthedesignatedholes.Grotebuildsitsstandardplan-o-gramsonthe00180,4-footgondolathat has been offered for many years. If your customer is providing his own hardware, you will want to verify the measurements before you beginandthenmaketheappropriateadjustments.
•Groteusesthesamemethodologyassomeofthefastestgrowing
autopartsretailerswhensettingupPOGs.Largeritemsareplacedonthetoprowwithassociatedproduct(replacementparts,forexample)nearby;thesmalleritemsarehungonthelowerhooks.
KeyPoints
A waterfall display is a
space saving plan for
displaying product.
Products are overlapped by a system
of bars projecting out from
the display to allow for overlapping of product.
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•Typically,itiseasiertoplacetheitemsonthepeghooksstartingwiththebottomhooksandworkingup.Trytoavoidusingthetoprowofpegholestomakeiteasiertoinsertthehooks.
•Thepegdiagramtypicallydisplaystheright-handholeofatwo-prongedpeghook;thisisdonetoallowmaximumspaceandtoletyoumovethehookstowardthelefttocondensewhenpossible.
•Itisnotuncommonforcustomerstousewhatareknownaswaterfall
racks.Theselayeredcomponentsallowformoreproducttobedisplayedin a tighter area. It is often not as pleasing to the eye but Grote can accommodate this merchandising set up. If your customer wishes to use waterfallracks,thismustbeidentifiedearlyinthecustomplan-o-gramsetup process.
CREATING A POG
InmanycasesyouwillbeaskedtocreateaPOGfromexistinginventoryortomakearecommended product offering. From a merchandising perspective, if you are unable toutilizeanexistingPOG,youshouldkeepthefollowingideasinmind:
Heavy Duty Market
What type of customer does the distributor serve?Ifit’safleet/enduser,makesurethattheirstockhasthecoveragethatfleetsdemandinbothStop/Tail/TurnandClearance/Markerproduct,aswellasaccessoryneeds.
You can’t sell what you don’t have in stock.Makesuretheinventoryissuitableforthesizeofyourcustomerbase.Toooftenthedistributors will find themselves special ordering one or two parts to complete an order.Makesureyouhaveinventory.Usebusinessintelligencepurchasehistoryreports,andfleetsurveystoanalyzeinventoryturnsandreorderhabits.
New productsTheGrotemarketingdepartmentspendsalotofeffortandtimetopromotenewproductsthatwehaveatthefleet/end-userlevel.Thedistributorneedstocarrytheinventorytosupportproductlaunchefforts.Recommendedstockinglevelsaretypicallysentouttohelpthefleetjudgetheirneeds.
Traditional Distributors
Custom Plan-O-GramsGrote offers many services to our distributor customers. One of those services is the abilitytocreatecustomplan-o-grams.Asmentionedonpage4,GroteutilizesSpace-manMerchandisersoftwareproducedbyACNielsen.Thissoftwareallowstheusertobuildplan-o-gramsfromadatabaseandtoplacetheproductinagridformatontoacustomsetupgondola(canincludeshelvesand/orvariousstylehooksandhangers).
Theprocessforhavingacustomplan-o-gramdesignedforyourcustomerincludesthefollowing steps:
•IdentifytheproductthatneedstobeplacedonthePOG
•Identifyandmeasure(tothe.5”)thetypeofgondolaandspacethatwillbeallottedforthePOG,itissometimeshelpfultoknowthebrandofgondola
KeyPoints
Retail displays typically cater to public walk-in
business.
KeyPoints
LED lighting is usually
preferred over incandescent.
KeyPoints
POGPlan-O-Gram
POSPoint Of Sale
POPPoint Of Purchase
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(Lozierforexample).Thisincludes,overallheight,baseheight,width,notchmeasurement(thespacebetweenthenotchesthattheshelveshang,siderails),pegholespacing(typically1”x1”),howmanysections/segments(12ft,butinthree4ftgondolas).
•SubmitinformationtoyourlocalGroterep.
•GroteMarketingwillneedaminimumoftwoweeksanddependingonworkloaditcouldbe4weeksorlongertofinalizeyourcustomPOG.
What type of customer does the distributor serve?Unlikeheavydutycustomers,traditionalretailcustomersgenerallyselltoawidervariety of consumers and as such need broad product coverage without a lot of depth.
Ifacustomerservicesaspecificmarketsegment(agricultural,forinstance),makesuretheproductsareinstocktomeetthoseneeds.
LEDsFartoofewofthetraditionalcustomerbaseiscarryingsufficientLEDsintheirstandardproductofferings.YoushouldspecificallymadethisafocusofthenewPOGsbeingoffered.
•InthetraditionalmarketplaceGrotehaschosentopromotetheHiCount® lineofLEDs.InsomeinstancesyoumightusealongerwarrantyLEDproduct, such as SuperNova®, but in nearly all cases you will want to use theHiCount® line.
RIGHT LAMPS FOR THE JOB
EveryyearGroteproducesareportofthetop100best-sellingpartsfromthepreviousyear,compiledforboththeTraditionalandHeavyDutymarkets.Thisreportis the main tool you can use to identify the top selling parts to focus on with your customers..
Anotherwaytoselectproductstoofferyourcustomerormarketistocheckthemovement code of the products located in the price sheet.
A:Fastestmovingitems–topmoversforanymarket
B:Nextfastestmovingitems–usuallycoreproducts
C:Steadymovingitems–itemsthatroundoutacompleteproductoffering
D:Limitedsalesitems;basedondemandorrestrictedtocertainareas
AA:Displayitemsnotsubjecttoreturnorobsolescenceprotection
DD:Specialorderitemsnotsubjecttoreturnorobsolescenceprotection.Additionalleadtimesmayberequired(standardcaseonly)
W:Warehousedistributororfactorystockonly,slowmoving
KeyPoints
Grote displays are generated by popularity,
profit, coverage, and new
technology.
KeyPoints
The right LED mix of
product will instangly bolster
sales dollars and market penetration.
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DISC:Obsolete.Notsubjecttoreturnafterexpirationofrecalldeadline
N:Productsusedwithanothercodetoindicatethattheitemisnew.Theiractivityindexisestimatedafteramarkettest
Forthetraditionalmarket,thePOGofferingnowisavailableinan8’,12’,and16’storeset(4ftPOGsareavailableonrequest).ThepercentageofLEDSKUstothetotalSKUcountis: 8’:20LEDSKUsoutof85SKUs=23%ofthetotaloffering 12’:26LEDSKUsoutof115SKUs=22%ofthetotaloffering 16’:30LEDSKUsoutof142SKUs=21%ofthetotaloffering
OnemethodtoselecttherightmixofproductistolookatthetotalvalueofthePOGandthevalueofthesell-thru.Expectfourturnsperyearonthatinventoryinthestore.IfthevalueofthePOGis$1200atthejobberlevel,thenthejobbershouldexpect$4800inannualsalesforsell-thruoftheproduct.
AlsounderstandthatthePOGisasuggestedmappingtoolforpopularitems. It may not physically fit the area that the store manager gives you. Learntoadaptandworkwithintheareasyouhaveavailable.Storesmayordera12’displaybutonlyhaveroomfor8’inthepegboardarea.Lookforareasonthepegboardsbehindsales/partscountersorshelves.Youmaybeabletousethebaseboardofthedisplaytofeaturelightkitsandboxeditems.
POP (Point Of Purchase)InadditiontoPlan-O-Grams,GroteoffersawidevarietyofPointOfPurchase(POP)displays.TheGrotePOPisgenerallyintheformoflighteddisplays showing the brightness, longevity, or design of the Grote lighting product.
Typically,POPdisplaysareincludedincustomerassortmentsandtiedtotheorder.ThepartnumbersandpicturesofavailablePOPdisplayscanbefoundinthebackofthemerchandisingandPOGbook.
WhensettingupPOPdisplays,youneedtoworkwiththelocationmanagertomakesuretheyunderstandthepotentialdangersoflitdisplaysthatarenotusedproperlyorwellmaintained.GrotePOPdisplaysaremanufactured with a high level of care and professionalism; however, if they are not properly maintained or their power supplies are not properly grounded, accidents can happen.
OtherPOPsincludeawidevarietyofcountermats,posters,andbrochures.TheliteraturecanbefoundontheGroteLiteratureBrochure(GLB)orderformavailablefromyoulocalGrotesalesrep.
KeyPoints
The Dollar % total for
LED product is typically 2x the Unit Sales %.
KeyPoints
Expect and manage four turn sell-thru on a product
mix at a jobber store.
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POSPointofSale(POS)displaysincludespinningracks,dumpbins,andcounter top bins. Grote offers a wide variety of sales tools that allow your customerstodisplaytheirproductinanatypicalPOGfashion.Ifyouhavea branch that is unable to provide a full 4 feet of space or wants to set up aseasonaldisplay,dumpbinsandspinnerracksareaperfectsolution.TheseitemscanalsobefoundinthebackofthemerchandisingandPOGbook.
MERCHANDISING AND PRODUCT DOCUMENTATION
Grote is constantly improving and introducing new documentation to supportthesalesprocess.Asmentionedbefore,theGLBorderformliststheavailablecatalogs,marketingbrochures,andsalestoolsavailabletoorderfromthemarketingdepartment.However,themostefficientmeanstogetup-to-dateproductdataislocatedatwww.grote.com.
The Grote website is brimming with valuable product data, including a liveproductcatalogthatisavailable24hoursaday,7daysaweek.Downloadabledatasheetsareavailableathttp://www.grote.com/marketing/.Thereyouoryourcustomercanchoosetoprintordownloaddata sheets that show photos, line art, electrical data, plus features and benefits of the product. Electronic data interchange is also available. The Grote website is also a good source for identifying new products, promotions, press releases, and product photos.
GETTING THE BUSINESS
The final step in getting the business is setting up a plan to changeover thefleet,orjobberfromaGrotecompetitortoaGrotesupplier.Grotehasaverydetailedchangeoverprogram.TheexplicitdetailsandpaperworkshouldbeworkedoutwithyourlocalGroterepresentative.
Ifyouhaveheardtheexpression,“Planyourwork…thenworkyourplan”,youshouldknowtomapoutyourplannedeffortswhensettingupthefleetstorageandover-the-countersellingareas. •Youwillneedtoknowthenumberofbinboxes,smallandlarge
needed. Know if you have enough room for the new products, catalogrequirements,etc.
•CoordinatewithyourGroterepresentative
•TheJobberstore/branchsellingareainthefrontneedspeghooks,numberofgondolaheaders,POSmaterialsinproperquantity,countermats,posters,productdisplays,etc.
KeyPoints
Make scheduled calls at one
week, one month,
three months and six
months for any questions
your designated contact may
have.
10GROTE 101 grote.com
Merchandising
In terms of the merchandising effort, it is important to note that your changeover workisnotcompleteuntilyouhavedonethefollowingthings:
•Sweptthefloor,cleanedandstraighteneduptheareaaroundtheGrotepartsarea,infrontandback.
•Madesuretherearecatalogsavailableatthecounter,inthebackwarehousearea(whenpermitted),andinthePOGarea.
•Forfleetscatalogsshouldbeinstorage/inventory.
•MadesurethepartsorderingcomputershavebeenloadedwithGrotepricing and part numbers and that the proper interchanges have been completed to allow the counter personnel to order Grote parts instead of the competitive parts they previously ordered.
•ThecompetitiveinventoryinterchangedtoGroteisinnumericalorder.
•Madesurethatyouhaveprovidedadequateandthoroughtrainingto the sales and counter staff on new Grote products, as well as the Grote part numbering system, catalog, and website.
•Identifiedadesignatedcontact(storemanager,fleetmaintenancemanager,salesmanager,orcountermanager)thatyouwillbespeakingwithoneweek,onemonth,threemonths,andsixmonthsinthefuture.Inthosephonecallsyouwillansweranyquestionsandhelpwithinterchangeproblemsandordering/stockingissuestheymightbeexperiencing.ThiscontactisakeypieceoftheGrotechangeoverexperiencebecauseithelpseaseaprocessthatmightbe difficult for some members of the customer team.
THE UPGRADE
OurjobisnotcompletewhenwegetthesuccessfulchangeoverandthePOGis set. It is the responsibility of the Grote sales person to follow up on regional issuesthatmightbeaffectingthePOG…Agriculturesalesforinstance.ItmightbenecessarytomakechangestotheindividualstorePOGonayearlybasisto meet those regional needs. Every year during the business plan cycle you shouldlookatthejobberPOGsandidentifyareasforimprovement,selectionofnewproductsandwaystoincreasetheLEDcontent.Thismustbedoneatleaseonceperyear.Inafleetitmightbenecessarytoupdatethefleetsurveytoaccountfornewequipmentaddedtothemix.
KeyPoints
New product launches
should be a key part of
your upgrade plan.
KeyPoints
A call back or follow up visit is essential for every change
over.
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POG, POP AND POS EXAMPLESBelowareadditionalexamplesofthetypesofplan-o-gramsizesandconfigurations,POPandPOS.
4’ Poly Bag4’
8’
12’
16’
Custom Sizes
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ADDITIONAL RESOURCESTheseresourcescanbeacquiredonlineorthroughthemarketingdepartment.
NOTES
Counter-topbinbox(54173)with54173product
4positionworklampdisplay(POD-001)
GroteSelectdumpbinwithheadercard(00781)