Strategic advice on the in-store presentation of shaving and coffee accessories

Strategic advice on the in-store presentation of shaving and coffee accessories

Verhoog, C.

Saaksjarvi, M.C. (mentor)
Hultink, H.J. (mentor)

Industrial Design Engineering

Product Innovation Management

2011-06-29

Philips has determined that the sales of SENSEO accessories and shaving accessories are lagging because shoppers do not notice the products in stores. Furthermore shoppers are unaware of the added value of accessories. There are 4.5 million SENSEO machines and 4.5 million Philips shavers currently in use, which means that the potential target group for Home Care Accessories (HCA) is enormous. The competition for HCA is relatively low. My assignment was to help Philips to achieve in-store excellence for HCA. I developed a strategic advice on the in-store presentation of shaving and SENSEO accessories in the Dutch market. By in-store presentation I mean the position of the products in the store, the shelf or display design and the design of point of sales materials. Before I formulated this strategy I performed several studies. A literature research provided useful insights in the behavior of shoppers and how this behavior can be influenced by product placement and diverse stimuli. Next to that I visited many stores to analyze the strengths and weaknesses of the current product presentations. Remarkably was the lack of communication in store. Accessories are either positioned next to the core devices, as a separate category or behind the counter. Presentations where the products are grouped next to the core devices look the best. Shaving accessories are often badly positioned behind the counter or in plastic anti-theft boxes. Inspiring examples for SENSEO accessories are information leaflets on the shelf and second placement of descalers. The new presentation with compatibility guide at Media Markt is the best example of the shaving accessories category. Besides HCA I also examined the store presentation of other categories to gather inspiration. The most valuable research was the shopper and consumer research. Herewith I defined where shoppers look for accessories in the store, what they know and think about the products and what their purchase considerations are. I also determined what the opinion of shoppers is about the product presentation and communication. This study consisted of in-store observations, interviews and online questionnaires. With all the insights I gathered from these analyses I formulated a strategy for the positioning, presentation and communication of accessories. Accessories should be positioned close to the core device and they should be grouped together to increase the visual impact. Interesting products can be shown without packaging to stimulate interaction. Furthermore a link needs to be created between accessories and the core device. By showing images of people who use the products an inspiring ambience is created. Impulse purchases can be stimulated by placing the products at the counter or on an end-aisle shelf. It is essential that the shopper who buys the core device notices that the accessories exist. The communication at the shelf should convey the following three messages: What kind of product is this?, Why should the shopper buy it? And Is it compatible with the shopper’s core device? I gave communication guidelines for the descaler, podholders, shaver heads and the cleaning spray. To communicate the compatibility between accessories and core devices it works best to use images and series names of the core device. Next, I selected two retailers (Blokker and Kijkshop) to develop concepts for following from the strategy. In total I designed 25 concepts. These were then evaluated based on the main requirements: improving the visibility and awareness of the products and improving the communication of product benefits and compatibility. Based on this ranking and Philips’ view, I selected 7 concepts to develop further. Within my project I further developed the winner stage and the 3D shelf stopper. Next to that I designed a compatibility top card for Media Markt. The rest of the materials need to be developed by Philips in the future if retailers react positively. I formulated a three-phase implementation plan for the development and production of these materials. Philips should start by getting properly listed at the important retailers. Second, the accessories should be positioned as a group close to the core devices. For SENSEO accessories the basis is to make clear what the products are and what their usage is. In-store excellence of shaving accessories starts with communicating the compatibility of the shaver heads. In phase one Philips should develop product info cards, out-of-stock cards and a shaver head compatibility guide. If the basics are well-executed then shoppers who look for the products can find them. The following step is to remember shoppers who were not looking for accessories that they might need an accessory. The focus is on core device shoppers. This means that in the second phase materials will be developed that can be positioned in between the core devices. They communicate that accessories exist and convince the shopper of the product benefits. In the final phase the in-store product presentation is optimized. Philips should create materials that stimulate impulse purchases from all shoppers who own a SENSEO machine or Philips shaver. Very effective to attract impulse shoppers is second placement of accessories at end-aisle shelves or at the counter. Special displays for the impulse articles should be developed. To achieve in-store excellence Philips should also develop materials which enhance the shopping experience and simplify the selection process. Besides the order of execution I also calculated the costs and the increase in sales a material should yield to be profitable. Now Philips has to decide what they want to invest in in-store excellence the coming year. Depending on the budget Philips can decide which of the materials from the first phase will be implemented first. Before developing the more expensive projects I recommend Philips to first develop prototypes and test with these the effect that these materials will have on sales. At this point I have approval from Marskramer to roll out in all their stores the 3D shelf stopper and new product cards. Kijkshop is very interested in the product display to show the shaving accessories in the showcase. Furthermore the top card for Media Markt can be rolled out if I get the approval.

Trade marketing
Design
POS material
Visibility
Communication

http://resolver.tudelft.nl/uuid:ab553c24-bad3-40f2-b3aa-e3c2af7b019e

Campus only

Student theses

master thesis

(c) 2011 Verhoog, C.