Merchandising Merchandising Innovations Project:Innovations Project:

Learning So FarLearning So FarJayram MadhusudanJayram Madhusudan

Godfrey Phillips India LtdGodfrey Phillips India Ltd

AgendaAgenda

• Project BriefProject Brief• ObjectivesObjectives• Understanding Merchandising Practices across Understanding Merchandising Practices across

industriesindustries• Understanding cigarette merchandisingUnderstanding cigarette merchandising• Understanding Four SquareUnderstanding Four Square• Understanding FS MerchandisingUnderstanding FS Merchandising• Ideas thought of so farIdeas thought of so far• Project approachProject approach• Future course of action/TimelinesFuture course of action/Timelines

Project BriefProject Brief

To develop a bank of merchandising innovations To develop a bank of merchandising innovations to be implemented every quarter of 2009-10to be implemented every quarter of 2009-10

Identification of material and developing the Identification of material and developing the samesame

PrototypingPrototyping Implementing 2 merchandising innovationsImplementing 2 merchandising innovations

Problem DefinitionProblem Definition

Current Merchandising practices for Four Current Merchandising practices for Four Square are:Square are:

Not clutter breaking vis-à-vis competitionNot clutter breaking vis-à-vis competition Not effectively communicating Four Square’s Not effectively communicating Four Square’s

brand values, which are:brand values, which are:

- Progressiveness and modernity- Progressiveness and modernity

- Young- Young

- Status and Premium - Status and Premium

- Dynamism - Dynamism

Objective of the ProjectObjective of the Project

Primary Objective:Primary Objective: To develop a clutter breaking approach to To develop a clutter breaking approach to

merchandising for Four Squaremerchandising for Four Square To develop merchandising ideas that effectively To develop merchandising ideas that effectively

communicate Four Square valuescommunicate Four Square values

Derived Objective:Derived Objective: Develop and implement innovative ideas in Develop and implement innovative ideas in

merchandising that constantly refreshes the merchandising that constantly refreshes the Four Square look in line with retail identity Four Square look in line with retail identity changechange

Scope of the ProjectScope of the Project Learning from current cigarette Merchandising Practices Learning from current cigarette Merchandising Practices

of:of:

- The competition (ITC)- The competition (ITC)

- GPI (Four Square, Red & White, etc)- GPI (Four Square, Red & White, etc) Learning from merchandising practices in other industries Learning from merchandising practices in other industries

(both in shop and on shop)(both in shop and on shop) Developing a bank of ideas for 2009 -10 and 2010 -11Developing a bank of ideas for 2009 -10 and 2010 -11 Implementing at least 1 or 2 innovative ideas. This Implementing at least 1 or 2 innovative ideas. This

includes:includes:

- Costing- Costing

- Prototyping- Prototyping

- Production- Production

- Implementation- Implementation

PROGRESSPROGRESS SO FARSO FAR

Understanding cigarette Understanding cigarette merchandisingmerchandising

Cigarette merchandising is limited by the Cigarette merchandising is limited by the following factorsfollowing factors

Small Store sizesSmall Store sizes COTPA and RegulationsCOTPA and Regulations Budgetary ConstraintsBudgetary Constraints Limited Merchandising itemsLimited Merchandising items

Cigarette Merchandising at Cigarette Merchandising at GPIGPI

Red & White Store at Delhi Branch

Four SquareStall at Meerut.

Customized Tipper Stallat Hyderabad

Four Square stall at Ahmedabad after Revamp

LCD Unit Installedat a store inAhmedabad

Attractive Glow sign ata Mumbai Stall

Four Square Special Storeat Chandigarh

Cigarette Merchandising by Cigarette Merchandising by the competitionthe competition

Wills Navy Cut outlet at Ahmedabad

Classic Verve:Bold and Stylish Color Themes

LearningLearningLearning from the competition:Learning from the competition: Focus on bold and bright colour themesFocus on bold and bright colour themes Emphasis on developing a unique identityEmphasis on developing a unique identity Effort put in to ensure consistency of communicationEffort put in to ensure consistency of communication Bold display of packs rather than posters or other Bold display of packs rather than posters or other

thematicsthematics

Learning from GPI Merchandising:Learning from GPI Merchandising: Difficult to identify a unique identity for Four SquareDifficult to identify a unique identity for Four Square Bold colour themes for Red & White ensures that attention Bold colour themes for Red & White ensures that attention

is attractedis attracted Unique identity easily identifiable for Red & WhiteUnique identity easily identifiable for Red & White Colour scheme used for Four Square makes the brand Colour scheme used for Four Square makes the brand

appear sophisticated but in a bored and dull fashionappear sophisticated but in a bored and dull fashion

Understanding and Learning Understanding and Learning Merchandising In other Merchandising In other

industriesindustriesObservations:Observations: In the FMCG sector, Point of Sale merchandising In the FMCG sector, Point of Sale merchandising

happens through attractive display cabinets and happens through attractive display cabinets and bright and innovative colour themes. bright and innovative colour themes.

• Technology as an enabler

Consistency of ThemeConsistency of Theme

Last Mile CommunicationLast Mile Communication

Display cards to attract attentionDisplay cards to attract attention

Displaying Related Items togetherDisplaying Related Items together

Displaying many items at the same spot (Vertical Displaying many items at the same spot (Vertical Merchandising)Merchandising)

Eye level displays based on frequency of product Eye level displays based on frequency of product movementmovement

Making space workMaking space work

Future scope for learning:Future scope for learning: Merchandising practices in small stores abroad Merchandising practices in small stores abroad

and in Indiaand in India In shop and On shop Branding in small retail In shop and On shop Branding in small retail

storesstores Understanding how the above learning can be Understanding how the above learning can be

properly applied in cigarette merchandising.properly applied in cigarette merchandising.

Ideas thought of so far for Ideas thought of so far for Four SquareFour Square

Pillars with rotating cabinets Pillars with rotating cabinets Mannequins Mannequins AccessoriesAccessories Antique LookAntique Look Branded chandeliers/Lights (in Shop)Branded chandeliers/Lights (in Shop) Outers used as Display Cabinets (in Shop)Outers used as Display Cabinets (in Shop)

Types of Glow Signs used in Types of Glow Signs used in IndiaIndia

LED BasedNeon Based

Back LitGSB

Neon Sign Boards

Back lit glow sign board for banks.

GSB Fujifilm – use of Reflective vinyl

Innovatively designed glow sign boardfor a internet browsing center in Pune.

A simple 3D neon sign board for a furniture shop

Neon sign bard with moving lights

Rust and water proof glow signsfor big retail stores and Boutiques

Sign Boards in other countriesSign Boards in other countries

Neon sign boards in New York

Cigarette Sign boards in Virginia, USA

Crowded collection of signboards in Shanghai

LearningLearning

GSB design in cigarette merchandising is more or less GSB design in cigarette merchandising is more or less standardized vis-à-vis GSB designs in other industriesstandardized vis-à-vis GSB designs in other industries

The visual impact of a neon sign board in enhancing The visual impact of a neon sign board in enhancing the image appears to be greater than a back lit glow the image appears to be greater than a back lit glow sign board.sign board.

There exists greater potential for innovative designs There exists greater potential for innovative designs in 3D sign boards than a simple flex based glow sign in 3D sign boards than a simple flex based glow sign board.board.

Traditionally glow sign boards used on cigarette shops Traditionally glow sign boards used on cigarette shops have always been simple from a design perspective.have always been simple from a design perspective.

3D sign boards are not used on cigarette shops in 3D sign boards are not used on cigarette shops in India, unlike in other companies like AmericaIndia, unlike in other companies like America

Evaluation of SolutionEvaluation of Solution

Each solution would be evaluated on the following Each solution would be evaluated on the following parameters:parameters:

ImpactImpact ScalabilityScalability Cost EffectivenessCost Effectiveness Timescale of ImplementationTimescale of Implementation

Timelines/Future course of Timelines/Future course of actionaction

WeekWeek DeliverableDeliverable

1st week 1st week A bank of merchandising innovations A bank of merchandising innovations

across various industry sectorsacross various industry sectors

2nd week2nd weekList of Merchandising Ideas for four List of Merchandising Ideas for four

square and approval of the samesquare and approval of the same

3rd week3rd week

Approval of idea/s for merchandising of Approval of idea/s for merchandising of Four Square and Brief to creative Four Square and Brief to creative agenciesagencies

4th week4th weekCosting by commercial and starting work Costing by commercial and starting work

on the prototypeon the prototype

5th week5th weekCompletion of Prototype, approval and Completion of Prototype, approval and

feedback from sales teamfeedback from sales team

6th week6th weekImplementation in one shop and starting Implementation in one shop and starting

work on the next ideawork on the next idea

THANK YOUTHANK YOU