APPLICATION OF MERCHANDISING TOOLS AT THE ENTERPRISES
The article defines the role of merchandising in wholesale, the goals and objectives of the company, as well as ways to improve sales efficiency associated with its use. The options for organizing merchandising at wholesalers are described.Key words: the role of merchandising in wholesale, organization of merchandising, visual merchandising, merchandising, merchandising program, wholesale trade of the Kirov region.Introduction In conditions of economic instability, to increase the degree of concentration of turnover and profit, wholesale enterprises strive to secure competitive advantages by improving the quality of customer service, which, along with the efficiency of the enterprise’s activities, depends on optimizing the trading assortment, volume and structure of inventories, timely delivery of goods to the retail network to ensure a constant presence in stores, their optimal placement on the shelf space of the store and the correct layout on the trading equipment.
Currently, in the improvement of wholesale sales are particularly relevant:
• innovative methods of market research, procurement and marketing of goods;
• product positioning;
• management of the supply of goods, the use of effective logistics systems, the creation of distribution centers, warehouses for cargo handling;
• sale of goods under its own retail brand, the company’s capabilities from packaging design to delivery to the final consumer;
The lack of financial investments in the development and implementation of product sales programs for the company most often means a loss of control over the most important element of commerce – the sale of goods in a retail chain. Analysis of existing literature and regulations, as well as materials on the practice of the Kirov wholesale enterprises-
Whether allowed to conclude that the theoretical understanding and methodological approaches to the formation of merchandising in the organization of wholesale sales are insufficiently presented, which complicates their practical application. Assessment of the resource potential and the effectiveness of merchandising tools, as well as the mechanism for organizing merchandising at wholesale enterprises, are little studied. Therefore, one of the tasks of scientific research is the problem of sales management and the use of merchandising programs, the formation of which requires the development of techniques used in management practice.The concept of merchandising, goals, objectives and features of its construction in wholesale At the moment, there are many interpretations of the concept of “merchandising”, some of which are borrowed from foreign sources.G. Sand, one of the founders of the American school of merchandising, in his book “Principles of Merchandising” defines it as a systematic process for the efficient presentation of display of goods at points of sale and as the most effective form of marketing1. A number of contemporary authors K. and R. Kanayan, V. V Snegireva also give preference in their definitions to the promotion of goods and design calculations. In other words, they consider merchandising to be only a promotion tool and thereby narrow its essence2.According to the author of this article, the traditional marketing point of view suffers from a certain narrowness, since it limits the scope of application of merchandising.
The author proposes his own definition of merchandising, according to which merchandising is a system that considers the totality of economic, trade and technological relations between a manufacturer, a wholesale and a retail company in order to increase brand awareness among consumers and increase sales.
The common thing between partners of the producer – supplier – consumer chain is the desire to increase sales of goods, position products and specific retail outlets, provide customers with the necessary information, increase the number of loyal customers, and influence consumer buying behavior3. The goals of merchandising in wholesale are to influence the structure of sales for profit and increase market share due to the competitive advantages of branded promotion tools.
An integrated approach to the study of merchandising allows us to determine its objectives in relation to wholesale enterprises:- the formation of an optimal trading assortment taking into account forecasting demand, type and type of enterprise, customer service area;
The specificity of the wholesale link is that most often the merchandiser of the wholesale enterprise must combine the listed functions. To work effectively, he needs:
• ability to sell and negotiate;
• knowledge of the basics of marketing and merchandising tools;
• ability to analyze the market situation.
2. Suppliers were forced to make a preliminary cash contribution, especially when offering approximately the same assortment. The “input bonus” could be different, depending on the size of the network, but the supplier had to pay extra for each new product. All participants
6 Krykova O., Chizhova O. In one boat // Modern Trade. 2010. No4. S. 22-27.
The baroque movement was aware of the problem of retro-bonuses and various fines imposed by large networks on suppliers. Despite the fact that much was said about the crisis, there was a tightening of the situation, and attempts by suppliers to change something were severely suppressed.
For example, the growth of bonus payments for suppliers in the network of OJSC Agrotorg in 2009 compared with the previous year ranged from 50 to 70% 7. In the Auchan retail group, deferred payments for different categories of goods – from 30 to 90 days. For a small or medium supplier, this threatened to ruin. Experts noted that such actions have become a clearly defined trend8.
It remains to be hoped that Federal Law of December 28, 2009 No. 381-F3 “On the Basics of State Regulation of Trade Activities in the Russian Federation” (adopted by the State Duma of the Federal Assembly of the Russian Federation on December 18, 2009) will facilitate the situation of suppliers, as Art. 13 of this law prohibits the imposition of conditions for various payments (for changing the assortment, the right to supply).
Typical conditions offered by retail chains:
• Supplier’s guarantee of the best delivery conditions in comparison with other customers;
• ensuring a certain level of profitability of the store at the lowest prices on the market, with a refund of part of the funds if this level of profitability of the network is not provided;
• the obligation of the supplier not to raise the price for a certain period;
• additional discounts on prices when holding shares;
• bonuses for fulfillment of volume of purchases by retail chains;