High-impulse items The desire for convenience in the shopping experience has important implications, particularly in view of the way consumers actually shop for appearance products. The survey found that consumers do not regard automotive parts and specialty stores as places to browse. Rather, consumers indicated that a trip to an automotive retail store was usually triggered by a specific need or to purchase a specific item. The consumer is usually in the store on a mission, not to simply have a look around. Indeed, one of consumers’ primary objectives is to get into the tore, locate the product - at a good price - and be on their way as quickly and effortlessly as possible.

However, the survey reveals that while the customer is in the store, there is considerable opportunity to generate incremental purchases, particularly in appearance products. More than any other product category covered by this research, the study found that consumers consistently spoke about purchasing an appearance product wherever a product would “catch their eye.”

While consumers report they do not generally make a special trip to purchase an appearance product like car wash, they do tend to keep a mental note when they are out or running low. The purchase of an appearance product is very frequently triggered when the consumer simply happens to spot the product on the shelf.

Because these products are used frequently, they become a staple. The sale is not necessarily triggered by the immediate need. What that means to the retailer is that there is always an opportunity to sell an appearance product if you can get the consumer to notice it and pick it up.

The sales and profit implications are clear. If a consumer doesn’t purchase a product because it hasn’t caught his or her attention, a sales opportunity is needlessly lost. In this category, it is critical to be able to cut through visual clutter and “grab” the consumer’s attention.

But assuring good product visibility is not always an easy task. Simply stacking products on the shelf is not enough to remain competitive and profitable. Consumers in this study confirm that the way products are merchandised on the shelf and how the department, category and store are laid out, have a big impact on shopping behavior.

Consumers were shown in-store photographs of the appearance department in two different stores. In both photos, the sections were neat and well stocked. One was an 8-ft. section four shelves high. The other was a 20-ft. section where product density was much higher. This set was seven shelves high. Consumers’ reactions to these two different shelf sets reveal a lot about what they like and what they dislike.

One of the consumers’ first reactions to these two in-store photos came as somewhat of a surprise. Consumers initially pointed out that one in-store photo appeared much brighter than the other. They unanimously preferred the bright, well-lit appearance of the smaller store set.

The apparent difference in lighting was actually a function of the photography, not a merchandising strategy. However, it illustrates a consistent factor: consumers react favorably to a bright, neat, orderly product representation. It adds to what HMG refers to as the “shoppability” of the section. Shoppability is the degree to which the retailer environment facilitates the purchase process for the consumer.

Product visibility: not always clear cut

When consumers were first shown in-store photos, one of their initial reactions became a universal complaint: It is hard to see what is on the bottom shelf. As one consumer observed: “Unless you know what you are looking for, know what the package looks like, it’s impossible to see. You can’t read what is on the label unless you get down on the floor. If you pick up the can to read it, what are the chances it’s going to get put back nice and neat like in that picture? It must drive the stores crazy.”

Consumers stated that they want to shop at eye level and not be required to strain their eyes or their backs trying to shop from the extreme top or bottom shelves. Several consumers suggested that the bottom-most shelves should be reserved for back-up stock.

Another solution to the problem was suggested: provide better signage to identify products more clearly so it would be easier when standing in the aisle to tell what exactly was on each shelf. One consumer requested information on the shelves and products printed in large, clear print. He said as he has aged, his arms are not long enough and the aisle is not wide enough for him to back up and read.

That illustrates an interesting merchandising consideration tied to the general aging of the population. That trend has definite implications for retailers and suppliers. The need to see and be able to conveniently reach product is basic to any in-store marketing strategy. There is so much information that is provided or should be provided at the point-of-sale.

Product selection: How much is too much?

The study identified a critical merchandising dilemma that is being faced by retailers across all classes of trade: consumers demand choice, but there is a fine line between what constitutes acceptable choice and what amounts to visual clutter. There must be a balance. Consumers in this study confirmed that they want a good selection of product: “I want to be able to make the decision about which car wax I can buy; I don’t want the store to make that decision for me.”

But they also value a simplified shopping experience and too many choices were viewed unfavorably by most consumers: “You need choices, but that looks like they have every product ever made. Do you have to have 20 different car waxes?”

There are two important points here. First, consumers are confronted with a “sea of product.” The consumers quoted here assumed that there were 20 different brands of car wax. Perhaps there were. The point is, there was nothing on the shelf to help the consumer understand what he is looking at. Maybe there is segment or usage information that should be provided. Are some waxes meant to be easy to apply; others designed to be long lasting; still others to help cover up imperfections? This information might help clear up some of the confusion and justify some for the apparent product overlap.

Some product duplication may occur. With limited shelf space, that can add up to an extremely cluttered, disorganized shelf. Getting a product noticed in such an environment requires a strategic approach to shelf management, and understanding how the consumer shops. The retailer needs to develop a strategy to capitalize upon that behavior.

Find out what triggers the consumer purchasing decision and appeal to it. In some instances, playing up the brand name is the best strategy because it is so highly valued and quickly recognized by the consumer. In appearance products, the survey found that consumers do not believe there are significant differences between brands. Products are viewed at parity. The consensus was clearly summed up by one consumer who remarked, “With appearance products, one’s as good as the other.”

With all the major brands considered to be about the same, survey participants indicated they were very receptive to special displays or distinctive packaging, that would attract their attention-particularly when featuring a sale or special value.

Retailers need to look for the right key. In appearance chemicals, consumers continually referred to price as a purchasing motivator. They are highly price conscious; always looking for value. They are prone to impulse purchases.

The research examined how the actual in-store environment was perceived by consumers to facilitate or hamper the process. That starts with the way the appearance product section is organized.

Category organization presents a dilemma

When asked how they would like the category organized, consumers expressed some degree of frustration. They agreed that they would like products organized according to their logical relationship to each other; organized along a project basis. One consumer summed it up by observing that if he is going to wash his car, he wants everything he needs in proximity: washes, sponges, chamois, buckets, etc. He does not want to have to search through the store for the things he needs. On the other hand, he also likes to compare prices, so he wants all the car wash products set up so he can spot the best deal.

Another consumer expressed a similar dilemma about category organization. He observed that appearance products are mostly “afterthoughts” in his case. He buys appearance products when he sees them and realizes he is running low. So he feels it would be wise for the store to intersperse these products with other things so that he will “run across” them. However, that does not fit with the way he wants to shop. Fro his personal convenience, he would prefer products brought together in application groupings.

Consumers in this research were quick to recognize the store’s needs; selling as much product as possible. They realize that consideration has to be taken into account. In discussing approaches to this dilemma, consumers felt the store could provide clear and simple signage that would help direct consumers to the products they wanted.

A number of other things consumers felt would always attract their attention included the following:

‘If the color is different it will get your attention.’

1. Shelf-edge communication. Many consumers referred to various forms of on-shelf communication, such as shelf talkers or “starbursts” alerting them to a particular price special, and indicate they react well to these.
   Consumers do appear to appreciate it when stores or suppliers seem to put effort into something that will help make their product selection easier or help save them money.
2. Color. This display aspect was unanimously regarded as a great way to attract attention at the point-of-sale. Consumer particularly indicated a preference for bright colors, but agreed that anything that was different would be noticed and examined.
3. In-store displays. Consumers reported that store displays were particularly helpful in calling their attention to a product. They value displays because the visibility helps remind them to pick up a needed product.
4. Demonstrate a product’s features/benefits. Displays can do more than simply call attention to a product. Consumers said they would really like to see what results they could achieve with different products. One of the greatest frustrations expressed by consumers is spending time shopping for, and purchasing, a product and then being dissatisfied with the results.

Some consumers suggested they would like to see and feel the product’s benefits. This could be done by putting up a display of a section of a car with a portion treated with a specific product and a portion untreated. Consumers could then evaluate the results.

Another suggestion was an in-store video to help demonstrate product features and benefits. Most consumers agreed that this was a great way to demonstrate application techniques and illustrate results. The key to success, consumers indicated, is to make sure the video does not take up too much time. Secondly, informative videos with reliable spokespersons should be supplied.

‘If signage is good enough, it will get you to stop.’

A competitor by an other name...

As is true in any segment of retailing, the description of who constitutes a competitor in the automotive aftermarket is expanding. Consumers of appearance products illustrated that point clearly.

Consumers in this research study indicated they frequently shop for merchandise in mass merchandise outlets, such as Wal-Mart or Kmart. Others spoke about shopping for appearance products in both automotive stores and mass merchandisers. There were some key differences.

Consumers noted they would generally visit an automotive retailer with a specific purchase in mind-they were task driven. They were interested in getting in, locating what they needed and getting out of the store as quickly as possible.

A reason frequently cited by consumers for browsing mass merchandisers’ automotive departments was they were looking around while their spouses shopped in other sections of the store. Consumers indicated they liked to look around the automotive department specifically because they felt they could always get a good price at a mass merchandiser.

It’s no surprise to anyone that a store like Wal-Mart, which built its substantial business on a promise of everyday low pricing, has done a good job of convincing the consumer that it has the best price in town. One consumer noted: “If you are going to wax an expensive car like a Porsche, that’s a labor of love. You will likely end up at a high-end parts store. Otherwise you will go to Wal-Mart.”

‘A store display will help me remember when I need something.’

It is important to note that the consumer of appearance chemicals equates the automotive retailer as a “high-end” retailer. The perception is that you will pay more for appearance products there than in a mass merchandise outlet. The automotive retailer who wishes to maximize appearance products has a clear mandate to choose his competitive niche. This research illustrates he can compete on price. It is difficult. Even if Wal-Mart does not always have the lowest price, the consumer perceives that it does. Automotive retailers have to aggressively combat that perception. They can compete by providing the most convenience-the most shoppable department. Automotive retailers need to understand how the consumer shops, and create the environment that meets that need: good category organization, the right product mix, clear signage and eye-catching displays.

MERCHANDISING QUIK-TIPS: Cut through visual clutter and “grab” the consumer’s attention Offer a bright, neat, orderly product representation. Organize products at eye level. Leave the bottom shelves for back stock. Provide better signage to identify products more clearly. Find out what triggers the consumer purchasing decision and appeal to it. Look for the right key. In appearance chemicals, price is a purchasing motivator. Organize products according to their logical relationship to each other; on a project basis. Display a section of a car with a portion treated with a specific product and a portion untreated. Use in-store videos demonstrating product features and benefits. Compete by providing the most shoppable department.

COPYRIGHT NOTICE:"Reprinted with permission from Aftermarket Business, February, 1995, page 16. Copyright by Advanstar Communications, Inc. Advanstar Communications, Inc. retains all rights to this material." To subscribe to Aftermarket Business, call 1-218-723-9477 or email fulfill@superfill.com.

Stephen J. Alexander is an aftermarket consultant, speaker and monthly columnist for Aftermarket Business Magazine. To learn more about other in-store merchandising and marketing issues, contact Stephen Alexander, Automotive In-Store Marketing at 239-395-9203 or e-mail him at salexander@autoinstore.com.