Visible difference

Can your customers see everything that is on offer in your outlet? By Peter Segal of srcg, a consultancy specialising in retail strategy, category development and training.

Finding the right balance between what looks right and what makes the most money is a challenge for retailers across all channels. In the on-trade there is a tendency to lean towards what looks right from the publicans' point of view and not from the customers'. When carrying out research in this area, customers consistently tell us that less is more and they want their purchase decision made easier for them.

Less is more​

Customers are typically faced with a product onslaught at the point of purchase. The back-bar in particular can be a haven for products whose life cycle is heading south. Few products stand out in this scenario and the customers' decision-making process is lengthened and this in turn may cost a pub money if the bar is busy.

The bar needs to be considered a selling area and the back-bar, chiller and fonts must all play their part. I like the expression "clearing the clutter" and by clutter I don't just mean product. If you are ruthless you will find many items around the bar that do not support the selling process.

By referring to sales data, pubs can start to identify the amount of space that should be given to products. Some products will lose out completely and others may need to be displayed differently. For instance, some niche products may not need to be visible to the customer at all as the purchase is pre-determined and the product does not need to take important selling area space.

Manufacturers can provide planograms and bar layouts based on a pub's own sales and these can be hugely beneficial as they enable barstaff to follow clear guidelines and should lead to more consistent implementation.

Helping the customer make their decision​

Visibility is about the clarity of message and pubs need to ensure the products they sell support the overall message.

Research points to the fact that customers feel uncomfortable at the bar, uncertainty creeps in and any help from their surroundings or the barstaff is gratefully accepted. Try asking customers what three things stand out when they look at the bar. The answers will definitely be enlightening and perhaps surprising.

The fonts are typically the first point of call and therefore have a crucial role to play. The bar has hot and cold spots and the pub will need to ensure the key fonts are in the hot spots. This doesn't have to be the best-selling draught product, it might be the product you want customers to trade up to or the product you wish to develop as it provides a point of difference over the competition.

Fonts tend not to move. I appreciate that moving fonts is not as easy as moving other products but nevertheless pubs should attempt to find out the bar layout that works best for them. Consider running a trial to identify the best mix of fonts and their position on the bar. Sales data should again be used to measure the impact but don't forget to ask customers and barstaff what they think of the new layout. The chiller is another area where clear merchandising principles can lead to better profitability. Often customers cannot even see the chiller let alone find the product of their choice. If the chiller is a vital footfall driver then it is crucial it is placed in a hot spot and this might mean getting up at eye level rather than below the bar. The chiller itself will have hot and cold spots and these should be used with the key customer messages in mind.

Manufacturers can provide excellent input to merchandising principles across the bar, as always the retailer must balance this advice with their own knowledge and sales data to get the best results.

In the off-trade it is common place to find retailers putting a value on their retail space. I'm not suggesting that retailers charge suppliers for hot spots but I do recommend they look at the bar as a customer selling area with every bit of space working hard for them, their suppliers and their customers.

Top tips for visibility​

Checklist:

• Clutter-free back-bar
• Identify the appropriate amount of space for each product/category to suit your customers
• Use back-bar display units
• Best-selling products should be on the top shelf
• Place chillers so that the products are visible from the front of the bar
• The number of facings in the chiller should reflect profit potential
• Block drinks of a similar type together
• Consider different displays for different times during the week
• Utilise your hot spots to maximise profit
• Make sure all of your bar fonts are illuminated

srcg​ is a consultancy specialising in retail strategy, catgory development and training. srcg​ facilitates collaborative working between retailers and manufacturers in the On-trade, Multiple Grocery and Convenience. Tel: 020 8948 4048 or visit www.srcg.com