Chapter 4: Merchandising Practices for Farm Retail Markets

Merchandising takes on many forms in the successful and profitable operation of a roadside market. Merchandising involves a process for bringing for-sale items to the customer's attention. Effective merchandising equates to increased profits. Everything done, from drawing customers to the market to making the sale, should have merchandising practices in mind. This chapter will cover the many elements of merchandising, including image, product mix, promotion, advertising, display, labeling, price marking, and communication.

General Observations

The following comments are based on the authors' observations of merchandising practices during visits to more than 50 farm retail markets.

Farm retail markets are generally easy to find. Most customers in the immediate area are familiar with them, however, in many cases highway signs need improvement.

Promotional displays, such as "the great pumpkin" display, when viewed from the roadside during the fall, are used to great advantage near main roads. However, in some instances doorway entrances often are dull and lack eye appeal.

Poor interior lighting decreases visibility of display space in some markets. Proper electrical fixtures and eliminating floor to ceiling barriers helps to improve visibility.

In some markets with a limited product mix, product displays have a tendency to look stagnated. Periodically changing displays maintains customer interest.

Many displays simply need more eye appeal.

Market floor space is not always utilized properly to maximize sales and customer flow.

Signs are often not used to best advantage; many are difficult to read or blocked from view. Signs help to create a unique market image and should be professionally done.

Any services provided by the market business should be properly displayed.

Price marking is sometimes unclear.

Some markets were observed to have lost their identity. In some cases, farm retail markets try to be all things to all people, and the focus of creating a unique image seems to be missing.

Some markets were observed to need a general overhaul and cleanup. Customers like to take pride in the places they shop.

At times customers appeared to be on a hunt in order to find specific items. Farm markets can maintain their identity and still have an orderly efficient layout.

Many markets lack product mix. Adding to the number of products offered (variety) and the way in which they are offered (value-added) can enhance profitability.

Many markets do not provide customers with adequate shopping containers, such as hand baskets or push carts, to stimulate added sales.

Merchandising Components, Observations, and Recommendations

Merchandising is the part of marketing that focuses on selling products effectively. Successful merchandising requires the seller to view the market from the potential customer's perspective. This involves an understanding of the various components such as image, advertising, promotion, layout, display, product mix, pricing, customer service, and communications. The importance of the inter-relationships between the components cannot be overemphasized. Functioning in harmony, each component influences overall performance, however, a single weakness in one of the components can decrease profits.

Merchandising involves:

- Image (to reflect)                   - Product Mix (to select)

- Promotion (to publicize)       - Labeling (to identify)

- Advertising (to inform)          - Pricing (to value)

-Layout (to arrange)                - Customer service (to perform)

-Display (to show)                   - Communication (to understand)

Image

Image refers to the impression customers get about a business and its operator. First impressions for a farm retail market generally come from the signage identifying the market along roadsides or on the premises. The final impression comes from the purchases the customer makes. Projecting a proper image goes a long way in establishing repeat trade.

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