Summary and Conclusion
It is becoming increasingly difficult to meet consumer needs, as changing demographics and lifestyles give rise to an increasingly complex consumer base. Consumers are more sophisticated and are demanding more from brand marketers and retailers, expecting to have the right products, in the right place at the right time.
This evolving and increasingly more sophisticated marketplace has created a need for retail execution systems that are accurate, timely and disciplined. Professional merchandising organizations were created to fulfill the unmet needs of the marketplace and have emerged as the logical choice to provide effective retail execution solutions for both retailers and brand marketers.
Professional merchandising organizations eliminate the retailer's current dilemma of struggling to find the time and resources necessary to conduct category resets. The services supplied by professional merchandising organizations are applicable across the store and are more productive than current retail practices.
To realize the full potential of effective retail implementation by professional merchandising organizations, retailers and brand marketers need to focus more management attention on the process. The three key steps are:
New Product Cut-Ins
Faster implementation of new product cut-ins has tremendous sales potential and can provide a boost in sales of approximately 45%.
Brand marketers and retailers understand that new items build categories, and improving speed-to-shelf of new products brings a lift that much sooner. Until now, however, they did not know there was a lag.
Professional merchandising organizations bring the urgency to speed-to-shelf and provide brand marketers and retailers with other benefits through their enhanced services.
To help ensure fast, accurate new product speed-to-shelf by professional merchandising organizations, retailers and brand marketers should make sure that each store has:
The space crunch, exacerbated by consumer demand for increased variety, makes it mandatory that retailers and brand marketers find effective methods to achieve speed-to-shelf. In fact, the future health of the retail and consumer products industries depends largely on the creation of new retail execution programs that provide timely, accurate, efficient, and disciplined implementation of category plans and new product introductions.
NARMS thanks its Board Members for their dedicated guidance and participation in this study.
NARMS would also like to thank the participating retailers for their cooperation in this important study. This study would not have been possible without their support. Additionally, the Association acknowledges Willard Bishop Consulting for their leadership on the project. The firm has been a leader in improving shelf planning and retail implementation. This experience and expertise is reflected in the study results.
The National Association for Retail Merchandising Services and its 190 member companies represent the Professional Merchandising Industry on a national basis. Its members perform well over $1 billion in merchandising services each year. The association promotes the benefits associated with professional merchandising organizations, and establishes industry standards for merchandising performance. Its membership includes: brand marketers/suppliers with "in-house" merchandising divisions, sales and marketing companies with merchandising companies or divisions, independent professional merchandising organizations, and fixture and assembly companies. NARMS members are the industry.
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