Effective Secondary Placement in Retail: Tips and Tricks for Increased Sales
30.08.2024
An effective secondary placement concept in retail can have a significant impact on a company's turnover. But how do you manage to place products in such a way that they attract the attention of customers and additionally boost sales? From the correct placement at the point of sale to the selection of products - find out how you can get the most out of your secondary placement.
An effective secondary placement concept in retail can have a significant impact on a company's turnover. But how do you manage to place products in such a way that they attract the attention of customers and additionally boost sales? From the correct placement at the point of sale to the selection of products - find out how you can get the most out of your secondary placement.
Table of Contents
↓ The Importance of Secondary Placement in Retail
↓ Strategies for Optimal Product Placement
↓ Tips for Designing Appealing Product Presentations
↓ Success Factors and Challenges for an Effective Secondary Placement
↓ Examples from Practice: Successful Implementations of Secondary Placements
↓ Continuous Optimisation: Monitoring and Adjusting the Secondary Placement Strategy
↓ Frequently Asked Questions at a Glance
↓ Strategies for Optimal Product Placement
↓ Tips for Designing Appealing Product Presentations
↓ Success Factors and Challenges for an Effective Secondary Placement
↓ Examples from Practice: Successful Implementations of Secondary Placements
↓ Continuous Optimisation: Monitoring and Adjusting the Secondary Placement Strategy
↓ Frequently Asked Questions at a Glance
Cross-Selling
Increase in Revenue
Sales Promotion
The Importance of Secondary Placement in Retail
Secondary placement in retail plays a crucial role in the sales success of a product. Here, the product is placed not only in its regular spot on the shelf, but also at another strategically chosen location in the sales area. This additional placement could be, for example, at the gondola end, on a sales display, or near the checkout. There, they can specifically present information about the product or special offers.
By utilising secondary placement, the visibility and attention for the product are increased. Customers who may not be specifically searching for the product are drawn to it due to its prominent placement and can thus be encouraged to make a purchase. Particularly with new products or special offers, secondary placement can contribute to these being noticed and purchased more quickly.
For manufacturers and retailers too, secondary placement in retail offers advantages. They can thus boost their sales figures and increase the popularity of their products.
Secondary placement in retail is therefore a crucial factor for the sales success of a product. Through clever positioning, manufacturers and retailers can increase the visibility and attention for their products and thereby boost sales.
For manufacturers and retailers too, secondary placement in retail offers advantages. They can thus boost their sales figures and increase the popularity of their products.
Secondary placement in retail is therefore a crucial factor for the sales success of a product. Through clever positioning, manufacturers and retailers can increase the visibility and attention for their products and thereby boost sales.
Strategies for Optimal Product Placement
The placement of products is of crucial importance in order to increase sales and enhance customer satisfaction. There are various strategies to ensure that products are optimally placed and attract the attention of customers.
One of the most important strategies is the placement of items in high-traffic areas within the shop. This ensures that the products are seen by a large number of customers, thereby increasing the chance of a sale. High-traffic areas within the shop are typically:
Checkout Area
for example, at the fresh food counterOutdoor Area
Transport Zones
such as at lifts or stairs
Combination products can help boost cross-selling sales by positioning complementary products side by side. Customers are encouraged to buy more than just one product when well-matching products are placed nearby. This strategy can increase the average order quantity and boost revenue.
Clip Strips allow accessory items to be flexibly attached at the location of the main item. As they are simply hooked in, they can quickly and easily change their place of use.
Strategically placed combination offers can thus boost sales numbers. The proximity to each other encourages customers to purchase both the main product and the complementary product. This measure highlights the value for the customer and increases the likelihood of a purchase.
Clip Strips allow accessory items to be flexibly attached at the location of the main item. As they are simply hooked in, they can quickly and easily change their place of use.
Strategically placed combination offers can thus boost sales numbers. The proximity to each other encourages customers to purchase both the main product and the complementary product. This measure highlights the value for the customer and increases the likelihood of a purchase.
In the secondary placement, both the season, novelties as well as current trends play a decisive role.
For instance, in the summer it is sensible to particularly highlight sun cream, barbecue equipment and summer clothing, as the demand for such products increases during this time. In contrast, during winter, winter clothing, Christmas decorations and winter accessories should be brought into focus. By taking the season into account when secondary positioning, retailers can ensure that they optimally meet the needs and preferences of their customers.
Furthermore, current trends in secondary placement should not be neglected. Products that are particularly popular at the moment or are recommended by influencers can be specifically presented. By showcasing these trend items, retailers demonstrate that they are keeping up with the times and consistently offer their customers innovative and current products.
Similarly, novelties can be used on secondary placements, which can thus be effectively introduced and promoted. New products can be particularly well highlighted by prominent locations in the shop. This targeted presentation arouses the interest of customers and promotes the awareness of the novelties. It contributes to the acceleration of product launches and supports maximising sales figures from the outset.
Tip: Particularly with new products, whose function and application is not immediately apparent to customers, it can be beneficial to work with small product descriptions and application instructions. In this way, their sales can also be increased.
Water Beads Product Example: These are difficult to spot on the shelf, as the packaging is relatively small. Moreover, many customers do not know how to use this product. A thoughtful secondary placement at the checkout, supplemented with a small product description, can provide a solution and encourage customers to purchase.
Water Beads Product Example: These are difficult to spot on the shelf, as the packaging is relatively small. Moreover, many customers do not know how to use this product. A thoughtful secondary placement at the checkout, supplemented with a small product description, can provide a solution and encourage customers to purchase.
Overall, the placement of products is a crucial strategy to boost sales and increase customer satisfaction. Retailers can enhance customer attention by placing products in high-traffic areas. The use of special displays and the strategic arrangement of complementary and combined products also contribute to this. In this way, they can ensure that the products attract the attention of customers and lead to a successful sale.
Tips for Designing Appealing Product Presentations
The presentation of products plays a crucial role in the success of secondary placement. An appealing product presentation can pique customers' interest and encourage them to make a purchase. Therefore, it is important for companies to present their products in an attractive and persuasive manner. Here are four tips for designing appealing product presentations:
Universal Solutions
As an alternative to individual displays, there is also the option of universal solutions. These provide a simple way to flexibly present seasonal or promotional items in retail.This allows for a diverse stocking and adaptation to various products. Often equipped with wheels, these are effortlessly moved around the sales floor and placed at strategically important points.
However, even with universal solutions, there is often the opportunity to incorporate customisations. For example, the frame of the Supermarket Island can be individually printed, or with the Promotional Trolley, you can design the top sign yourself and also insert your own brochures.
Overall, an appealing product presentation is crucial to arouse customer interest and boost sales. With high-quality product photos, creative product descriptions, consistent design, and interactive elements, businesses can optimally present their products and convince customers.
Advantages and Challenges of Effective Secondary Placements
An effective secondary placement in retail can bring many benefits, but also poses some challenges. In times of limited space in stores, it is important to carefully plan the additional placements to avoid disruptions.
Challenges
Advantages
Space Shortage: Not all sales outlets have enough room for additional displays. It requires good planning to ensure that the extra displays do not disrupt customer traffic in the store.
Expenditures: The installation of secondary placements can bring additional costs, whether for special displays or the maintenance of the placement. These expenses must be weighed against the potential profit in revenue.
Maintenance and Care: Secondary placements require regular care and replenishment to remain appealing and efficient. This places additional demands on the staff.
Planning: Secondary placement requires careful planning. It is important to decide in advance which products should be presented and how. If necessary, additional material must be procured taking into account delivery times and storage space restrictions.
Expenditures: The installation of secondary placements can bring additional costs, whether for special displays or the maintenance of the placement. These expenses must be weighed against the potential profit in revenue.
Maintenance and Care: Secondary placements require regular care and replenishment to remain appealing and efficient. This places additional demands on the staff.
Planning: Secondary placement requires careful planning. It is important to decide in advance which products should be presented and how. If necessary, additional material must be procured taking into account delivery times and storage space restrictions.
Warehouse Relief: Secondary placement can be an effective method to relieve the warehouse of excess stock. This reduces the costs of stockholding.
Increasing Visibility: By presenting items in multiple locations in the store, the chances that customers will notice them increase. This heightened presence leads to products being perceived more often and thus more likely to be purchased.
Supporting New Products: Secondary placement can help publicise new items more quickly. This facilitates market access and boosts acceptance within the target group.
Impulse Purchases: Arrangement in high-frequency areas encourages impulse purchases. Customers who aren't specifically looking for the product are encouraged to buy it impulsively.
Boosting Sales: By placing products in different locations, additional products are sold. This leads to an increase in revenue. It also maximises the sales area and results in efficient use of space.
Increasing Visibility: By presenting items in multiple locations in the store, the chances that customers will notice them increase. This heightened presence leads to products being perceived more often and thus more likely to be purchased.
Supporting New Products: Secondary placement can help publicise new items more quickly. This facilitates market access and boosts acceptance within the target group.
Impulse Purchases: Arrangement in high-frequency areas encourages impulse purchases. Customers who aren't specifically looking for the product are encouraged to buy it impulsively.
Boosting Sales: By placing products in different locations, additional products are sold. This leads to an increase in revenue. It also maximises the sales area and results in efficient use of space.
Challenges
Space Shortage: Not all sales outlets have enough room for additional displays. It requires good planning to ensure that the extra displays do not disrupt customer traffic in the store.
Expenditures: The installation of secondary placements can bring additional costs, whether for special displays or the maintenance of the placement. These expenses must be weighed against the potential profit in revenue.
Maintenance and Care: Secondary placements require regular care and replenishment to remain appealing and efficient. This places additional demands on the staff.
Planning: Secondary placement requires careful planning. It is important to decide in advance which products should be presented and how. If necessary, additional material must be procured taking into account delivery times and storage space restrictions.
Expenditures: The installation of secondary placements can bring additional costs, whether for special displays or the maintenance of the placement. These expenses must be weighed against the potential profit in revenue.
Maintenance and Care: Secondary placements require regular care and replenishment to remain appealing and efficient. This places additional demands on the staff.
Planning: Secondary placement requires careful planning. It is important to decide in advance which products should be presented and how. If necessary, additional material must be procured taking into account delivery times and storage space restrictions.
Advantages
Warehouse Relief: Secondary placement can be an effective method to relieve the warehouse of excess stock. This reduces the costs of stockholding.
Increasing Visibility: By presenting items in multiple locations in the store, the chances that customers will notice them increase. This heightened presence leads to products being perceived more often and thus more likely to be purchased.
Supporting New Products: Secondary placement can help publicise new items more quickly. This facilitates market access and boosts acceptance within the target group.
Impulse Purchases: Arrangement in high-frequency areas encourages impulse purchases. Customers who aren't specifically looking for the product are encouraged to buy it impulsively.
Boosting Sales: By placing products in different locations, additional products are sold. This leads to an increase in revenue. It also maximises the sales area and results in efficient use of space.
Increasing Visibility: By presenting items in multiple locations in the store, the chances that customers will notice them increase. This heightened presence leads to products being perceived more often and thus more likely to be purchased.
Supporting New Products: Secondary placement can help publicise new items more quickly. This facilitates market access and boosts acceptance within the target group.
Impulse Purchases: Arrangement in high-frequency areas encourages impulse purchases. Customers who aren't specifically looking for the product are encouraged to buy it impulsively.
Boosting Sales: By placing products in different locations, additional products are sold. This leads to an increase in revenue. It also maximises the sales area and results in efficient use of space.
Overall, an effective secondary placement offers many advantages, but it also requires careful planning and regular maintenance. With the right strategy, a secondary placement can help to boost sales and strengthen customer loyalty.
Examples from Practice: Successful Implementation of Secondary Placement
In many supermarkets and shops you see them everywhere: secondary placements. These are products that are not on the shelves, but are presented at an additional location in the store.
A proven example of a successful secondary placement is the positioning of sweets at the checkout. Many supermarkets strategically place chocolate bars, candies and the like here, in order to tempt customers into a spontaneous purchase just before they pay.
For instance, crisps are often placed near beer, as many customers enjoy consuming both together. Another example of successful secondary placements are seasonal products. Whether it's Christmas decorations in winter or sun cream in summer – this strategy works particularly well for impulse purchases and has proven itself time and again in practice.
In an electronics department of a department store, secondary placements for accessories such as mobile phone cases, chargers and headphones are positioned near the corresponding devices. This makes it easier for customers to find and purchase suitable accessories for their devices.
In a clothing store, secondary placements with matching accessories such as jewellery, belts, and bags are positioned near the checkout. Another example is the presentation of outfit combinations. This can help customers put together complete outfits and purchase multiple products.
Overall, these examples demonstrate how diverse and successful secondary placements can be used in practice. By strategically placing products, companies can increase their revenue and specifically encourage customers to purchase certain products. Therefore, it is worth reconsidering one's own sales strategies and strategically using secondary placements.
Examples of Successful Secondary Placement
Continuous Optimisation: Monitoring and Adjusting the Secondary Placement Strategy
The secondary placement of products in retail plays a crucial role in the success of a company. Through continuous optimisation of this strategy, companies can increase their sales figures and strengthen their customer loyalty. But how can one ensure that the secondary placement is effective and brings the desired success?
One way to monitor the effectiveness of the secondary placement strategy is through regular review of key performance indicators. An increase in sales figures after a change in secondary placement can be a clear sign that the new strategy is successful. Therefore, companies should keep a close eye on their sales figures and make adjustments as needed.
Furthermore, customer satisfaction can provide valuable insights into the effectiveness of secondary placement. Customer feedback, whether it is positive or negative, can assist businesses in optimising their strategy and responding to the needs of their customers. Likewise, the feedback from employees who interact with customers on a daily basis can provide important testimonials and direct customer feedback.
Modern customer tracking technologies such as heatmaps enable businesses to analyse the movements of their customers in-store and draw conclusions about the effectiveness of secondary placement. By evaluating this data, companies can specifically adapt and optimise their strategy.
Overall, it is crucial to continuously monitor and adjust the secondary placement strategy as needed. Only in this way can businesses ensure that they maximise the success of their secondary placement and increase their revenues.
Frequently Asked Questions at a Glance
Secondary placement refers to the positioning of products at an additional location within the retail store, away from their regular position on the shelf. The aim is to increase the visibility and sales of the products by presenting them at heavily frequented or strategically favourable places, such as at end stands or near the checkout.
Products that are particularly suitable for secondary placement in retail are those that encourage impulse purchases, seasonal items, special offers and new products. These often include snacks, beverages, sweets, cosmetics and everyday items.
The success of a secondary placement can be measured by various key figures, such as sales increase, sell-through rate, customer frequency at the placement location, and comparison of sales figures before and after the placement. Additional indicators are the number of repeat purchases and customer feedback.
Ideal for secondary placements are highly frequented areas in retail such as entrance areas, end gondolas of shelves, checkout areas and main aisles. These places increase the visibility and accessibility of the products, which boosts the chances of impulse purchases.