User friendly merchandising pays off

ANT to hype lour sclling of over the counter merchandise? Want to expand the total dollar volume of each sales transaction you ring up'/ Consider hitchhiking on the user friendly strategy employed by astute merchandisers of the computer world.

There are equal and profitable merits and opportunities to apply the same strategies in employing consumer friendly packaging and merchandising to help in making thc initial sale while at the same time wrapping up extra profits from rclated-itern sale s of building materials and hardware.

A typical case in point was the recent container labcling and rrerchandising overhaul accomplished by Beadex Manufacturing Co. on their line of drywall compounds and related finishing tools. "We finally realizcd." concedes Bcadex general manager Don King in reflecting on the change. "that wc wcre perhaps too close to the trees to see the fbrest.

''For instance, the wording on our plastic compound containers identified our product as All Purposc Joint Conrpound.' While this was well understood

Story at a Glance

Displaying tools with materials helps customers...self service merchandiser promotes one stop shopping...easy-to-read d i rections, product literature guide d-i-yer.

by ourselves and cverybody else in thc trade, what thc labeling copy rcally mcant to thc consumer in the aislc about to tacklc his very first drywall projcct is anybodv's suess."

In attacking thc comnrunications barricr. Bcadex first comn.rissioned thc redesign of graphics and copy on the compound containers. The new title on the front of the buckets rcads: "All Purpose Drywall Compound" and then conspicuously associated with descriptive line drawings appears the wording. "for Taping. Finishing and Patching." Now a customer pondering his next drywall project move can see unmistakably what the product is and what it is mcant to do.

Next itcm in priority on the redesign agcnda was to wipc out all of the tightly packed. Iargcly ignored. hard to read copy on the back ol'thc containcr and rcplacc it with a scrics of clear linc drawings with bricf captions idcntilying the tools nccdcd. tbllowcd by illustratittns dctailing thc how-t<rdo-it stcps in achicving the bcst rcsults in clrywall taping. f rnishing and patching.

Oncc container graphics and copy had becn rcworked, Beadex management clinrbed back intcl thc shoes of thc hypothetical consumer and asked themselves: "Now that I, as a typical customer, have located the proper drywall compound for my job, what is the next thing I am going to need?" The answer, of course, was spelled out right there in panel No. I on the back side of the compound container: the right size knives, the right shaped mud pan, the right type of hand sander and sandpaper ofthe right grit would all be needed to complete rhejob.

The approach then was to develop a compact, self service merchandiser containing all the recommended Beadex labeled finishing tools. The original contents of the merchandiser contained knives in 4!'6i'and 8 " sizes, mud pans with conveniently tapered sides for easy access plus a handy metal edge for cleaning extra compound offknives, and hand sanders with raised curved handle grips for getting into tight corners without scraping knuckles. Beadex is now in the process of adding inside corner knives and pole sander heads to round out the tool assortment of the merchandiser.

The versatile drywall finishing tool merchandiser is designed to fit into any shelfspace right in the drywall accessories section where it can suggestively take advantage ofthe related-item sales opportunity that exists while the customer is selecting drywall compound and tape. With the elements all logically together in one place, there is no chance that the customer will have to serpentine half way around the store looking for drywall tools only to discover to his dismay that he can't find one ofthe knife sizes or that there are none of the recommended mud pans or hand sanders in stock.

MERCHANDISER is part of product display in the paneling section, making it possible for the customer to collect all needed materials and tools in one location.

To round out the "consumer friendly" communication cycle Beadex provides customer literature at the point of sale repeating advice on all the recommended tools and techniques leading to success in drywall taping, finishing and patching. For the retailer the consumer oriented strategy is an effective combination for nailing down the original sale plus tyingin the added profits from related items at the same time.

Loss Prevention Conference

The fifth annual Loss Prevention Conference will be held in Orlando. Fl. March l8-2Q 1987, at the Embassy Suites Hotel.

Among those developing the program are Bert B. Rogers, Wckes Cos.; Ralph P. Huston, Sutherland Lumber Co.; John D. Phillips, Wickes Cos.; Theron V. Wasson, The Home Depot; Richard Wright, Forest City Enterprises, Inc.; Ron Simmons, Handyman; Anthony Simone, Wolohan Lumber Co.; Frederic W. Hirchert, Payless Cashway, Inc.; Robert C. Vereen. Home Center Institute.

'lbilor Ads To Your Customeru;

"Long term retail survivors will need to offer more than just great sales, and they will need to convey their offers in ways other than through continuous reduced-price item advertising," says a new Management Horizons' report titled ,4dvertising to Core Segments.

According to the authors, "the retailer's primary advertising responsibility is to decide what superiority statement the advertising will make and where the advertising is to be placed, commensurate with corporate goals and anticipated budgets. Ideally, the advertising will be attention-getting, and will emphasize differentiated benefits that will make consumers want to sample the stores on a regular and long-term basis."

But which advertising medium is most appropriate for theretailer's needs?That depends on the store's core customer base and the products being advertised.

In order to select appropriate media, the advertiser needs to determine which media correlate most highly with usage among their target segment. Usage must be evaluated within the context of:

. How much attention does a medium commandl r What medium best delivers the type of message the advertiser strives to convey; and o What media mix delivers the largest concentrations of core customers at the most efficient cost?

Although the newspaper medium remains the retailer's favorite advertising vehicle and commands about 70% of the average retailer's media budget, major trends away from run-of-press (ROP) advertising include: o Increased commitment to pre-printed inserts within local newspapers; o Increased commitment to direct mail and utilization of "marriage mail" services to target geographically or demographically; r Increased commitment to broadcast television and radio; and o Increased experimentation with various newly available advertising technologies.

In general, newspapers reach a broad consumer base, although readership is higher among up market segments and among older life stages. However, a greatly diminished number of consumers are exposed to newspaper advertising, depending upon placement. While readership of "general news" sections remains consistently high among consumers, other sections are only read thoroughly on a frequent basis by relatively small percentages of the population. o "Business" section readership is highest among up market segments. o "Living" section readership is highest among middle and up market segments. o Ad inserts are used most by down market segments, mid{ife families and older households in the middle market. and younger parents in all markets.

. "Sports" section readership is highest among older households.

From the consumers' viewpoint, television represents the preferred source for new product information and for general surveillance of products and services. Certain types of programs are viewed more often by certain population segments. For example: r TV news reaches 4 out of 5 consumers daily and especially reaches older consumers. o Soap operas are viewed especially by down market segments and consumers who are not employed. o TV movies are popular especially among younger segments. o TV sports are viewed especially by mid-life families and older households in the middle market. o Comedies and dramas enjoy broadbased appeal.

Although consumers listen to a great deal of radio, the vast number of station choices in major markets often creates difficulties in determining which combi nation of radio formats optimally reach core customer bases. Most popular formats include: r News radio (mid-life families and older households) r Adult contemporary (younger middle and up market segments) o Top 40 (younger segments in all markets) o Country/Western (younger parents and mid-life families in the down market) o Golden Oldies (younger parents and mid-life families in down and middle markets)

The report explains that advertising should be researched, budgeted and implemented as any other business investment. It should have goals which justify expenditures and a time-frame beyond, but not ignoring, day-to-day considerations. It is part of a retailer's strategic marketing arsenal, and should be coordinated with other financial, operational and merchandising activities for maximum impact.

Northwest News

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The FTC ''30-day rule" states that a customer must be notified when a company cannot deliver merchandise @ the advertised date or within 30 days of receiving a prepaid order. The customer must be given two optionsaccept a refund or agree to a later delivery date.

According to a recent Frc study, most small businesses believe that the 30-day rule is a sound business practice, and consider the rule's impact minimal. The survey revealed that'15% of the small firms spend less than $500 a year to comply with the rule; 42% did not send a delay notice during the previous 12 months; and337o of firmsthatsentdelay notices did not have any orders canceled.

Plans are progressing for the program at convention. Nov. 8-ll at the Red Lion Inn in Bellevue, Wa. In addition, the building prrcducs showcase will offer new products and sales ideas.

Faucet Co. Plugs Counterfeiters

Masco Corp., Indianapolis, In., has filed court actions against three companies to begin an aggressive new campaign to protect its federally registered trademarks Delta. Delex, Peerless and its patents.

The lawsuits, alleging trademark infringement, false description and representation, unfair competition and deceptive practices, were filed against Keystone Franklin, Philadelphia, Pa. ; Radiator Specialty Co., Charlotte, N.C., and Waxman Industries, Shaker Heights, oh.

Delta Faucet Co. has obtained an exclusion order from the International Trade Commission prohibiting entry into the U.S. of products imitating Delta's trade- mark ball ha-ndle or bearing the company name.

Masco Corp. has also begun to alert plumbers and wholesalers "that some faucet repair/replacement parts that are presented as Delta parts and even some that say genuine Delta parts may not, in fact, be the 'real thing,"' warned group president Raymond F. Kennedy.

Wood

Preservers' Annual EPA assistant administrator Milton Russell will be a speaker at the American Wood Preservers Institute's annual meeting, Oct. 27-29 at the Hyatt Regency, Washington, D.C. An evaluation of the Consumer Awareness Program will be part of the meeting.

DOMESTIC HARDWOOD LUMBER IMPORTED HARDWOOD LUMBER SUGAR PINE, HARDWOOD AND SOFTWOOD PLYWOOD PARTICLEBOARD, FIBREBOARD MILLWORK

Too Many Stores In U.S.?

The nation is over-stored and overinventoried with 50% more stores than the market needs, according to Dick Outcalt, Seattle, Wa., retail consultant.

'And that is certainly too many stores chasing too few customers," says the man who produces software manuals, tape cassettes and other educational materials for retailers as well as acting as a combination financial adviser and counselor to small and large retailers needing help.

"Customers no longer want the bargain life," he said. "They want a better life. They want a better shopping experience. In the '70s, retailers sold a lot of merchandise because it was at the right price. In the '80s. shoppers expect variety. price and service." He attributes failure to lack of leadership, vision, objectivity and positive aftitude.

Successful retailers should make plans based on careful analysis oftrends, he advises. He recommends that retailers set out of their stores and see what their competition is doing. Objectivity about what consumers want and maintaining good attitudes are essential, he stresses, although he admits that it is not always easy, considering the long hours and the cyclical nature of retailing.

Ways To Cut Forklift Danger

If not used properly a forklift can be a dangerous piece of equipment.

Stability can be a problem because the center ofgravity is affected by the size and shape ofthe load carried by a forklift. The improper placement of the load on the fork assembly and the height to which the load is elevated can cause the vehicle to become unstable.

Steering also can be confusing because most forklifts steer from the rear wheels. Inexperienced operators must be careful-