HTW/O Promotion won the merchandising contract for Samsung Electronic Germany (SEG) in 2016.
They are proud to announce that since that time there has been a significant increase in efficiency in terms of their merchandising strategy in this sector for SEG. They attribute this largely to the synergy of being able to work for 2 Samsung business units; both the Samsung brown and the Samsung white goods.
Brown goods, in the electronic market, relates to the lighter weight electronic items such as televisions, computers, tablets and mobile phones. The name ‘brown’ derives from the colour of the material that was traditionally used for packing these items. Whereas, the ‘white’ goods market refers to the heavier equipment like refrigerators, stoves, washing machines and even air conditioning units. So while both brown and white goods fall under the ‘electronics’ umbrella, and more specifically, in this instance, Samsung Electronics Germany, clearly the merchandising process for white and brown goods differs in many respects, both from other products, and from each other.
So what are the merchandising concepts to consider in relation to the display of brown and white goods?
Floor space. Among some of the merchandising matters to consider in the effective display of these goods is, first of all, the different floor space required in-store for the display of brown and white products from other products, like gadgets and FMCG items, which require less space. Because of their relatively larger size, white products require a large surface area, however, while brown goods may not require quite as large a surface area for their display, they, none-the-less, because of the nature of the goods to be exhibited and tested, also require more than usual floor space to create a striking and user-friendly display.
Shelving. As brown goods are lighter than the white goods, some of the brown goods, for example televisions, can be accommodated on peg shelving, with adjustable height of shelf, to accommodate the size of the particular product. Thereafter the usual marketing principles, of best-placed positioning of the product on the shelf according to eye-catching capability and brand promotion, come into force.
Work surfaces. In the case of computers and mobile devices, displays on stainless steel work-top surfaces, and glass shop counters, rather than the use of shelf displays, allow for in-store demos to be done and client testing of products to be carried out.
The use of pallets. Pallets offer a ‘platform’ upon which to display the larger white goods and show them off to their best advantage. While large items, like refrigerators, may not require a pallet, or if they do, a slight elevation would do the trick, whereas washing machines, dish washers and tumble dryers require a higher platform. In this way variable heights and angles of products displayed can be achieved to add interest to the product exhibition.
Accessible power points. Because many of the items in this category, more especially in the case of the computers, tablets and smart phones, require an electronic display involving LED lighting and access to an electrical power point, this has to be taken into consideration. It is also important for the virtual reality infomercials, demonstrations and promotions which may be undertaken.
Product position in-store. The arrangement of the shelving in-store affects the product perception by the customer. A ‘gondola’ staggered arrangement of shelving units, to resemble canoes in a boat race, has often been proven to be effective in this regard. Alternatively, a symmetric ‘island’ display of the units, either shelving units or the arrangement of the white products on the floor, also has the desired effect. The white products can be arranged either according to brand groupings, where all the products of a particular brand are grouped together to resemble a household collection; or by machine type, by putting all the washing machines brands together, and so on, by grouping the various product types.
Ambience. Because these products usually offer the latest tech available, either for household appliances or for the state-of-the-art computer technology, a futuristic looking, brightly-lit, area with clean lines and stainless steel and/or glass display units and customer accessability to product are in keeping with concept of modernity and of being leaders in the tech arena.
Informed and tech savvy sales assistants. Crucial to any merchandising and marketing endeavour is having staff with product knowledge and know how in attendance.
HTW/O Promotion were able to successfully implement most, if not all, of these merchandising concepts in their endeavours for SEG, with great effect. Most significantly, they found that because they were able to create synergy between the brown and white goods merchandising, this was reflected by more tasks per day being accomplished. And as tasks are always inextricably linked to shop visits, this was a way to accomplish both objectives in one fell swoop, to the satisfaction of the client.
A win-win merchandising solution was thus successfully implemented for Samsung Electronic Germany by EFMP German partner, HTW/O Promotion.