Merchandising for profit
The following article is brought to you by Diageo.
Make your bar layout work harder for you
To help customers make a swift, informed choice, and encourage them to buy products most profitable for you, your bar and fridges need to be clearly laid out. Here are seven top tips to help you improve your image, your service - and ultimately your profits.
Group like products together
Separate spirits into three sections. Light spirits such as Smirnoff®, Bacardi and Gordon's®. Dark spirits such as Bell's® and Captain Morgan®. Specialities such as Bailey's®. This will increase efficiency and sales by as much as 19 per cent**.
Display top brands
Ensure top selling brands are prominently displayed to enhance customer confidence in your outlet. When their favourite brand isn't available, 40 per cent of consumers switch to drinks with a lower profit margin for you***.
Cut down on clutter
Clutter behind the bar is such a waste of your limited serving space. Clutter such as waste paper and empty glasses will draw the eye away from your product display and create a poor perception of your bar in the customers' mind. By removing clutter you'll find you?ve got more space for displays.
Re-think your stock
Identify slow selling products and remove them. This will reduce wastage and allow you more space to introduce already profitable or developing lines. Move key developing lines to Optic - by moving from free pour to Optic, products are more easily seen by customers thereby increasing sales by up to 40 per cent*.
Identify your hot spots
Every outlet has four key areas: the entrance, the route to the bar, the bar itself and the back-bar. Two-thirds of consumers walk straight up to the bar from the entrance, so walk the route yourself and ensure that your promotions are the first thing you see. Research has shown that 76 per cent*** of customers order their drinks from the till area - locate bestsellers by the till point for greater impact, speed and ease of service.
Entice the customer
Show that you serve a quality drink by displaying fresh fruit and ice. Display your mixers directly underneath your spirit measure, eg place bottles of tonic underneath your Gordon's® Optic and orange underneath your Smirnoff® Optic. You'll enhance the promise of a great drink and might even tempt customers into choosing a high cash margin spirit and mixer, ahead of a lower margin, less profitable product.
Try "double banking"
Put two spirit measures of the same leading, branded spirits next to each other on your back bar. This technique of doubling up, has been seen to increase sales by 11 per cent**.
Follow these seven simple steps and make your bar easier to shop at for your customers.
* Source: ID Magasin 2000** Source: GuinnessUDV controlled testing 1991-2002*** Source: NFO Oct 2001
Top tips for merchandising your fridge
A well merchandised fridge will encourage impulse purchases, help customers decide more easily and focus their attention on higher-margin brands. On average, 40 per cent of fridge space is taken up by soft drinks yet soft drinks only account for 20 per cent of sales.
- Product: keep chillers fully stocked
Bestsellers at the top: identify and remove slow selling lines
Don't overstock: minimise duplication of similar flavours
Split 'em up: don't mix ready to drink spirits with bottled lagers
Keep it neat: display products in blocks of at least two or more facings
Fully functional fridges: ensure fridges are chilling correctly. The ideal temperature is 3 degrees celsius
Promote, Promote, Promote: use point-of-sale material for promotions
Know it all: ensure staff are knowledgeable about your chilled products
Can esp help?
esp is a real business solution for publicans, designed by Diageo Great Britain. The esp programme aims to promote quality across all areas of the on-trade in order to help you increase your profits. It's simple and it works, just ask one of our 10,000 esp members.
If you would like further information, please email: espadmin@klm.co.uk or write to: esp team, Diageo Great Britain, Lakeside Drive, Park Royal, London, NW10 7HQ, or telephone the esp hotline on: 0121 472 9020
