Friday, October 10, 2008    

July 1991

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PROFITS AND USER-FRIENDLY DISPLAYS
Article for “Automotive Marketing”
by Edward L. Kaufman
Contributing Editor

Looking for an optimist? Here's one: Stephen J. Alexander, V.P. automotive, Howard Marlboro/Intermark, New York, a manufacturer of in-store displays. Its clients include some of the best known manufacturers of drugs, cosmetics, hosiers (e.g., L'Eggs) and other packaged goods.

Alexander is optimistic about the use of displays in the automotive aftermarket because, "The aftermarket retail chains, jobber-retailers and WDs are 15 years behind the curve and have to catch up! They are beginning to realize that they are far behind dug stores and supermarkets in making efficient use of space and displays. Also, astute aftermarket retailers now realize that their shelf space is valuable real estate. Because this space is limited and too many vendors with too many duplicate products are competing for it, the rent is going up. Retailers expect more for that space, either in profit margins or programs which result in faster turnover."

One of the most effective ways of increasing turnover for a product or product category, Alexander says, is to make use of a well designed display. "That's axiomatic: If you want to increase sales, turnover, and gross profit dollars you use a display." But not any old display. "A properly designed display takes into consideration the store look and the type of customer to be attracted."

Major objectives in in-store marketing are to increase product turnover and enhance the store image by being helpful to the customer. Sophisticated retailers make effective use of overhead signs and graphics to guide the customer to the departments of interest to him.

"But the last 30 inches between the customers and the product are critical," Alexander said. "If there are many types and brands of products in a category the customer needs help in locating them, understanding the differences, and deciding which to buy. He may also need advice on how to install or apply the product. A good display acts as a silent salesman, particularly important in today's self-service environment. A good display also helps to make a system sale by suggesting other products or tools the customer will need to do the job."

As a salesman of displays, Alexander might be accused of being biased. However, three aftermarket retailers confirmed his various comments.

The CEO of a major retailing chain says yes, it is quite true that the aftermarket has been behind the times and now has to catch up. Evidently his company is working on this issue but it is not ready to disclose the plans. And yes, a well designed (and properly positioned) display can provide a great boost to sales.

At Hi/Lo Auto Supply Company, Houston, Dirk Hoyt says, "Our company has gone to extremes on the use of displays. When we began to remodel our store six years ago we got rid of most vendor supplied displays because most of them were shop worn and we wanted to create a new image for Hi/Lo. But we recognized that displays can increase sales for a new product or new category by providing needed information about features and benefits. For example, this year we worked with a manufacturer to introduce a new product called No-Touch. It is a tire cleaner. We put the product in the merchandise mix and it just sat there. The customers did not understand what it is good for and neither did the store personnel. In March, we put in a free-standing display holding four cases or 48 cans. The header explained the purpose and benefits. That month we sold 5-6 times as much of the product as in the preceding month. At Hi/Lo we are making more use of temporary vendor supplied displays for new products. Our stores feature a product of the month. A display will be in use 30-45 days and will be discarded before it becomes unsightly."

Another Who Agrees
Another executive who agrees that the automotive aftermarket has to catch up on the use of displays is Miles Crawford, director of planogramming and merchandise placement at Northern Automotive, Phoenix. Prior to joining Northern Automotive about six months ago Crawford had been with the Target Stores in Minneapolis. So, while he has seen the inside of enough aftermarket stores (Northern's and others) to form some opinion of the practices of aftermarket retailers and vendors, his experience at Target is still fresh in his mind.

Crawford says, "It seems to me that there are some big differences between aftermarket vendors and those that supply drug stores, grocery stores, department stores, and hardware stores. Of course the supermarkets and department stores like WalMart have made a science of display. But I was surprised to see that the displays designed for automotive aftermarket stores are not even as informative as those designed for hardware stores. Both kinds of stores deal with DIYers, and novice DiYers, whether for automotive or household tasks, tend to be intimidated by the store environment. However, the vendors of aftermarket products seem to assume that the customer has more knowledge than he really has. That is unfortunate because a lot of novices do not know all the questions, let alone the answers. In this respect, displays found in hardware outlets, like the Knox Lumber Stores in Minnesota, can be more helpful in providing educational material at the point of sale. By comparison the automotive outlets are not yet as helpful.

"Also, aftermarket vendors seem to find it hard to understand the difference between a feature and a benefit. Here is an example: A battery charger manufacturer will show a 6 amp charger next to a 10 amp charger with no explanation of the difference. You ask them what the difference is and they say, four amps! Of course, that does not tell the customer why he should pay a higher price for the higher amp charger."

Miles Crawford says that, in general, vendors of automotive products have to rethink the basics. "Tell me what you are selling and why I as a consumer should buy it.

There are other basic questions: Who is the customer (for a given product) and how much information does he need to make a selection? For example, one of the big questions in retailing is whether products should be grouped by function or by manufacturer's brand. Should Turtle Wax paste wax be grouped with other paste waxes or with all other Turtle Wax product? What is the customer seeking, a paste wax or some Turtle Wax product which will do the job? What information does he need at the point of sale to make a selection?

In addition to asking questions about the customer's need for information, aftermarket vendors appear to have a need to get more input from retailers in designing displays.

Dirk Hoyt says, "Many vendor supplied displays get thrown away because the designers did not consider the configuration of the stores to which they were shipped. At Hi-Lo if a display is to be used permanently in our stores we want it to be customized for Hi-Lo. Some vendors are willing to do that for us. For example, Maremont supplies us with the end cap displays on their ride control products which conform to our requirements in height and width. They are made of the same metal and particle board materials as our regular fixtures. They display various types of Gabriel shock absorbers and they explain features and benefits. Like, the advantage of gas shocks over hydraulic."



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