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Flashcards covering the vocabulary and concepts of negotiating and implementing retail offers, merchandising principles, and sales performance metrics based on the Alter Eco case study.
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Alter Eco
An enterprise created in 1998 that distributes more than 70 organic and fair trade food products sourced from 28 partner cooperatives in 22 countries.
Merchandising
A set of techniques that allow for the optimization of the placement of products and brands on store shelves to attract customers and trigger purchases.
Merchandising of Management
A form of merchandising whose objective is to distribute available sales space based on result criteria like market share, turnover, or margin.
Merchandising of Seduction
A form of merchandising aimed at making an aisle attractive and practical through an adapted and appealing product presentation.
Merchandising of Organization
A form of merchandising that focuses on helping consumers easily find the products they are searching for.
Linear Developed (LD)
The total length of display space calculated by multiplying the floor length by the number of shelf levels (e.g., 2m floor length×3shelves=6mld).
Sensitivity Index (SI) to Turnover
A ratio calculated as %Id%CA, where CA is turnover and Id is developed linear space; if SI>1, the product is under-represented.
Sensitivity Index (SI) to Margin
A ratio calculated as %Id%MB, where MB is gross margin and Id is developed linear space; if SI<1, the product is over-represented.
Hot Zone (Zone chaude)
Located in the center of the aisle, it is the most attractive area where customers go most easily.
Cold Zone (Zone froide)
Located at the ends of an aisle, this area is generally less attractive to the customer.
End Cap (Tête de gondole)
Located at each extremity of a shelving unit, placing products here can multiply sales by two or three.
Eye Level
An implantation level located around 1.10m to 1.70m high, reserved for the most profitable, strategic, or high-notoriety products.
Hand Level
An implantation level positioned around 0.60m to 1.10m high, occupied by high-demand or indispensable products with good margins.
Floor Level
An implantation level below 0.60m used for heavy, bulky products with low margins.
Facing
The number of identical products directly facing the consumer on one or more levels of a shelf.
Planogram
A visual representation of the shelf or end-cap layout used by department heads to organize product implantation.
OAV (Sales support tools)
Materials prepared for negotiation including needs discovery guides, argument sheets in CAP format, and objection handling treatments.
CAP Method
A sales technique standing for Features (Caractéristiques), Advantages (Avantages), and Proof (Preuve) used to convince a buyer.
Resale (Revente)
The ongoing actions taken by a sector manager to follow up on referencing, optimize shelf presence, and correct stockouts or poor linear allocation.
Reporting
The process of passing field information, such as consumer expectations or competitor activity, back to the commercial management.
Consumption Universe
A specialized area in a store where products related to the same theme (e.g., "breakfast" or "bio") are grouped to encourage cross-selling.
Cross-selling
A sales technique that involves promoting complementary products from the same consumption universe to satisfy a single need.
Up-selling
A technique used to increase the average basket value by encouraging an additional sale, often at the checkout counter.
Point-of-Sale Advertising (PLV)
Promotional materials like displays, posters, or screens provided by the supplier to animate the shelf and highlight products.
Stop Rayon
A small vertical sign or sticker attached to store shelves designed to capture the buyer's attention as they walk down the aisle.
Experiential Marketing
Staging a commercial offer to provide a unique experience to customers, fostering purchase and loyalty.