THE FEASiBILITY OF A DEPARTMENTAL
MERCHANDISING SUPERVISOR IN A
SMALL CHAIN

Thesis {or ”no chru 9‘ M. A.
MICHIGAN STATE UNIVERSITY

Robert Higginbotham
1956

THESIS

 

"The Food Distribution program at Michigan State
University is under the sponsorship of the National

Association of Food Chains."

THE FEASIBILITY OF A
DEPARTMENTAL MERCHANDISING SUPERVISOR
IN A SMALL CHAIN

By

Robert Higginbotham

A THESIS

Submitted to the School of Graduate Studies of Michigan
State University of Agriculture and Applied Science
in partial fulfillment of the requirements

for the degree of

MASTER or ARTS

Department of General Business

Curriculum in Food Distribution

ACKNOWLEDGMENTS

The author wishes to eXpress his sincere appreciation
to the managements of Bettendorf's, Incorporated and Wilson's
Packing Company, who made this year of graduate studies
possible. He is particularly indebted to Mr. Joseph Betten-
dorf and Mr. Melvin Hampe who were instrumental in providing
assistance, financially and otherwise, to the writer.

The writer wishes to eXpress appreciation to Mr.
Lawrence Hurst, whose encouragement and guidance has helped
the writer to succeed.

Grateful acknowledgment is accorded to Dr. Edward
Brand, under whose guidance and counsel this study was under-
taken.

Sincere appreciation is extended to the management of
the small chains whose co—operation made the writer's survey
possible.

The writer would like to show his appreciation to the
many devoted teachers who gave him guidance at Michigan State
University.

The writer wishes to give special recognition to his
parents and friends for their continued confidence and counsel
throughout his entire life.

' Appreciation is also acknowledged to the writer's
wife's family for their interest in his work.

No list of acknowledgments would be complete without
tribute to my wife whose unselfish devotion and love have

made this study possible.

TABLE OF CONTENTS

LIST OF FIGURES. . . . . . . . . . . ‘. .
LISPCW‘CHARTS . . . . . . . . . . . . .
CHAPTER
I. INTRODUCTION. . . . . . . . . . .
Purpose of the Study . . . . . .

II.

III.

IV.

Need for the Study . . . . . . .
Method of Research . . . . . . .
Scope of the Study . . . . . . .
Plan of Presentation . . . . . .

PART I. ELEMENTS OF SALES PROMOTION
ADVERTISING-—AN ELEMENT OF SALES PROMOTION.

Definition and Necessity of Advertising .
Limitations of Advertising . .
Formulating the Advertising Appropriation
Need for Advertising Plan. . .

Advertising Media . . . I . I
Need for Stressing Individual
Characteristics . . . . .

Need for Merchandising Supervisor to
Help Advertising Department . . . .

NERCHANDISING--AN ELEMENT OF SALES PROMOTION

Definition and Elements of Merchandising.
What is Effective Merchandising. .
Types of Displays in the Food Industry .
Need for Displays in Food Distribution
Centers. . . . . .
Who is Reaponsible for. Displays. . . .
Limited Use of Personal Selling. .
The Growing Use of Automatic Merchandising

PART II. FUNCTIONS OF THE DEPARTMENTAL
MERCHANDISING SUPERVISOR

THE SUPERVISION FUNCTIONS . . . . . .

Introduction . . . . . . . . .
Need for Supervision . . . . . .

Page

. vi

.vii

U‘l—‘WNN |-‘

10
12
14

17
18
20
20

21
24

32
35
37
38

bl

1+1
Lu

CHAPTER
Types of Supervision. . . . . . .
Functions of a Supervisor . . .
Qualities Needed for Supervision or
Leadership . . . . . . . . .

V. MERCHANDISING FUNCTIONS . . . . . .
Introduction . . . . .
Functions of Merchandising. . .
Studying Never Ends for the Merchandiser
Qualities Necessary for Merchandising

Supervision. . . . . . . .

PART III. UTILIZATION OF ADVERTISING, MERCHANDISING,

AND DEPARTMENTAL MERCHANDISING SUPERVISORS
BY THE SMALL CHAINS

VI. UTILIZATION OF ADVERTISING IN SMALL CHAINS .
Use of Advertising by Small Chains . . .
Type of Advertising Used by Small Chains .
Type of Advertising Media Used by Small

Chains . o o o o o o o o 0
VII. UTILIZATION OF MERCHANDISING BY SMALL CHAINS
Use of Displays by Small Chains . .
Personal Selling in the Small Food Chains.
The Importance of Merchandising . . .
VIII. UTILIZATION OF DEPARTMENTAL MERCHANDISING
SUPERVISORS BY SMALL CHAINS . . . . .
Use of the Departmental Merchandising
Supervisor . . . . . .
Position in the Organization . . .
Functions Performed by the Department
Specialists. . . . . .
Why are Retailers Using Department
Merchandisers . . . . . . .

IX. SUMMARY AND CONCLUSION. . . . . .
Advertising. . . . . . . . . .
Merchandising . . . . . . . .
Supervision Functions . . .

Merchandising Functions. . . .

67

67
68

7O
73

73
76
78
78
80
82
84
86
86
87

88
88

CHAPTER Page

Departmental Merchandising Supervisor. . . 89
Conclusion. . . . . . . . .. . . . 89

BIBLIOGMPHY. O O O O O O C O O O O O O C 91

LIST OF FIGURES

FIGURES PAGE
1. Elements of Sales Promotion. . . . . . . 67
II. Importance of Elements of Sales Promotion . . 67
III. Promotional Advertising . . . . . . . . 69
IV. Types of Advertising Media Used . . . . . 70
V. Per Cent of the Publicity Budget . . . . . 71
VI. Types of Displays Used . . . . . . . . 73
VII. Individuals Beeponsible for Readership Check . 75
VIII. Use of Departmental Merchandising Supervisors. 79
IX. Scope of Supervision . . . . . . . . . 79
X. Use of Over-all Store Supervisors. . . . . 80
XI. Merchandising Supervisors Immediate Superior . 81
XII. Merchandising Supervisors Authority . . . . 81
XIII. List of Functions Performed by Merchandiser . 84

‘1 |

!:::fl__

LIST OF CHARTS

CHART PAGE

I. Merchandising Organization Chart. . . . . 83

CHAPTER I
INTRODUCTION

Management of retail food distribution organizations
is constantly looking for new ways in which to increase
sales and cut expenses. By adding sales with little or no
added eXpenses, the companies obtain larger profits.

The increase in competition in the food industry
during the last few years has increased the need for greater
emphasis on merchandising.v Since merchandising is applying
force to goods to get them to the point of sale, it is per-
formed by buying, delivering and displaying merchandise in
the store. But there are many ways that these functions can
be performed. Today, the term merchandising has come to
mean the selling and display of goods. The company that
draws the largest number of people to their stores and the
displays that move the largest amount of merchandise is
advertising and merchandising effectively. As competition
increases,'these functions become more important. For this
‘thesis advertising and merchandising are the two elements
«of sales promotion. Advertising strives to get the custom-
<3rs into the stores and merchandising strives to sell cus-
‘tomers goods after entering the store.

The writer believes that since competition is in-
creasing and since the sellefis market is now the buyefls
Inarket, a study of this nature would be beneficial for the

food industry in general and small chains in particular.

Purpose of the Study

The primary purpose of this study is to show the need
for departmental merchandising supervisors in the operations
of small chains that do not use their services.

Secondary purposes are (1) to show the importance of
elements of sales promotion, especially advertising and dis-
plays, (2) to show the importance of the functions of the,
departmental merchandising supervisor. and (3) to show the
use of this position by small chains today.

Such a study would show management the great value
that 13m: departmental merchandising supervisor adds to the
organization.

This study can also be of assistance to those aspiring
to a career in food retailing as the position of supervisor
is often the first step up the ladder after successful store

management.
Need for the Study

The increase in competition has caused a need for
Inore efficient merchandising in the food stores. To obtain
this efficient merchandising, management of food chains is
‘turning from the use of over-all store supervisors to depart-
xnental merchandising supervisors. They feel that by special—
:1zation among departments, a more thorough.merchandising Job

can be performed.and sales increased.

3
On the other hand, besides increasing sales, profits
can be gained by decreasing BXanBSS. Greatest efficiency
in operations can only be attained when the whole organiza-
tion works as a team. Co-ordination is the key to efficient
operations. "In the buying department of a meat department
as in all others, good co-ordination is the keynote to suc-
cessful operations. This applies not only to the buying and
merchandising departments, but also to the receiving, ware—
housing, shipping, transportation and office personnel."1
Because of his association almost daily with the office and
store personnel, the departmental merchandising supervisor
is the key man of the organization in striving to obtain
this co-ordination, thus decreasing costs.
~ The writer'feelsthat due to the importance of effic-
ient merchandising and co-ordination in the food industry

today, there is a definite need for this study.
Method of Research

The information found in this thesis was obtained from
both primary and secondary data.
The writer conducted a survey by Questionnaire which

xwas designed to obtain the needed information from the small

 

1Thomas Flanders, "Buying and Receiving," Meat Mer-
gigandisingand O erations, National Association of Food
Chains, April, 1935. D. 5.

A
chain companies. Of the fifty companies contacted, twenty-
six returned the needed information.

Many speakers of the food industry addressing the
food distribution students during the year have contributed
valuable information for this study.

The secondary data was obtained from many books,
periodicals and bulletins written about the food industry.

The writer also took a course in Retail Advertising
and Sales Promotion to help in gaining needed information
for this thesis.

Ideas obtained in courses taken in the Food Distri-
bution Curriculum at Michigan State University were very
helpful in recognizing and deveIOping many of the topics

necessary for this study.
Scope of the Study

This study is not striving to give a complete outline
of the functions of supervisors and merchandisers and of
sales promotion devices. A description of some of the.im-
portant ones needed, would be sufficient to see the impor~
tance of the departmental merchandising supervisor's position.

The term “small chain" is defined as a retail food '
organization with not less than eight stores and not more
than sixty.

By departmental merchandising supervisor is meant a

person who goes from store to store checking on the displays,

5

prices and general follow-up on advertisements and promotions
in his specific department. His position should be differ—
entiated from an over-all store supervisor or district
manager, who checks on all the Operations of the whole store.
The department manager differs by staying in one store and
having authority for running this single department. The
departmental merchandising supervisor oversees the actions

of the department manager.

This thesis will not discuss procurement of merchan-
dise, even though this is a.part of merchandising. It is
designed around the functions of the departmental merchan-
dising supervisor, which are primarily concerned with
selling of merchandise. Since advertising and merchandising
are elements of sales promotion, the information which the

merchandising supervisor should know will be presented.
Plan of Presentation

As the departmental merchandising supervisor is
primarily concerned with increasing sales, the writer
thought that the importance of the main elements of sales
promotion should first be discussed.

After seeing the need for advertising and merchan-
dising, a discussion of the main functions performed by the
departmental merchandising supervisor will folloW. .These
functions are divided into supervision and merchandising

functions for clearer understanding. Since the merchandiser

6

often is also a supervisor, a discussion of the reQuirements
of good supervision will be needed.

A description of the functions that the merchandising
supervisor performs will show the importance of this posi-
tion in the operation of the small food chains.

Finally, the writer will show the utilization of
advertising, displays, departmental merchandising supervisors
and their functions by the small chains as found from results

of his questionnaire.

PART I

Elements of Sales Promotion

CHAPTER II
ADVERTISING - AN ELEMENT OF SALES PROMOTION
Definition and Necessity of Advertising

~At one time or another, almost every author and every
teacher in the field of advertising has formulated a defini-
tion of the word "advertising" that eXpresses his own inter-
pretation of the term. Some have derived their definitions
from the two Latin words of which the word advertise is com-
pounded; ad, meaning to or toward and vertere. meaning to
turn. They define advertising as the act or the business
of turning people toward a product, a service or a store.

In order to eliminate confusion and establish a de-
finition, the writer will use the definition given by the
Definitions Committee of the American Marketing Association
which states: IAdvertising is any paid-for form of non-
personal presentation of the facts about goods, services or

ideas to a group.'1

Advertising is different from publicity because it is
paid-for. Advertising is different from salesmanship be-
cause it is non—personal and presented to a group rather
than an individual. Displays present the goods themselves,

while advertising tells facts about the goods.

1Charles Edwards and William Howard, Retail Adver-
tising_ and Sales Promotion (Englewood Cliffs, New Jersey:
Prentice-Hall, Incorporated, 1943). p. 2.

7

Probably the best way to see the necessity of adver-

tising is to show the advantages that advertising gives
the retailer. The need can also be shown by the amount of
advertising used by the food industry. The main advantages

provided by advertising, as stated by Jane Rowen and Eloise

Blankerty, are:

1. Advertising can'build sales by bringing people
to the merchandise. Good layout, display and
salesmanship not only can produce volume sales
of advertised items, but also can utilize the
traffic deve10ped by advertising in making sales
of impulse goods, or related or suggested mer-
chandise and of higher price lines.

2. Advertising can increase a store's reputation or
prestige. It is the voice of the store. It
helps to develop good-will and to foster loyalty.

3. Advertising can attract new customers among new-
comers to a community, among those dissatisfied
with other stores, and among those interested
in bargains and new merchandise.

h. Advertising can help win customers from compet-
itors.

5. Advertising can introduce new merchandise and
show new uses for familiar products.

6. Advertising can be a source of news about the
store, news which is of interest to established,
as well as potential customers.

7. Advertising can help key items or branded goods
to sell steadily and can build a novelty item,
or a new item into a fast seller.

8. Advertising can increase stock turnover.

9. Advertising can make a public and popular event
out of a store opening and create widespread
interest in special store events.

10. Advertising can increase volume during slow
months.

11. Advertising can help make shOpping fun by
appealing to customer's interest in excite-
ment, novelty and surprise.

12. Advertising can be an integral part of a
simple but fundamental program of public or
human relations.

13. Advertising in newspapers, on the radio, by
mail and through various other media enables
a retailer to place his message before hundreds,
thousands and even millions of people in a very
short time. It is :1 lightning-like meanszof
communication with large groups of people.

These are the advantages of advertising and are also reasons
for the need for advertising.

Food retailers have made use of advertising for many
years. The trend has been toward the use of more adver-
tising in recent years because of the prOSperous economy and
increase in food consumption in the United States. The in-
crease in food consumption is eXplained by the larger size
families and the larger percentage of each dollar that.is

being spent for food.
Limitations of Advertising

Business men have become so aware that it pays to
advertise that some of them attribute too much power to
advertising. Some business men feel that advertising will
sell anything. This is not true as can be shown by the

following limitations of advertising:

 

2Jane Rowen and Eloise Blankerty, g-pritable Retail
Advertising_(New York: Ronald Press Company, 19517..pJ7-18

9

1. Advertising cannot create a market when conditions
are unfavorable.

2. It cannot create immediate profitable sales for
all items advertised, or succeed by sporadic and
infrequent use.

3. It cannot sell merchandise that people do not
want or cannot afford.

A. It cannot turn cats and dogs into profitable
sellers.

5. It cannot sell goods in volume without the
backing of display and personal selling.

6. It cannot cure buying mistakes or overcome poor
management.

7. It cannot successfully defy truth and public in-
telligence byxnisrepresentation.

8. It cannot develop public confidence oveSnight
or wipe out a poor reputation in a day.

Of all these limitations of advertising probably the one that
is most often ignored in the food industry is the backing of
every division of the store. An interesting truthful adver—
tisement can bring peOple into the store to examine the
goods, but advertising cannot close the sale unless it
receives wholehearted co-operation from the other selling
agencies at the store's disposal. This means attractive
displays, a well informed and intelligent store personnel

and prompt, courteous service is necessary if the advertise-
ment is to obtain maximum success. More could be done in

the food industry to fulfill these necessities.

3Flanders, op. cit., p. 3.

10
Formulating the Advertising Appropriation

Of the several different methods that stores might
utilize to determine the amounts which they should appro-
priate for advertising, the two most widely used methods
are (1) the percentage-of-sales method and (2) the objective—
and—task method.

Some stores decide to spend a certain percentage of
sales, either planned or past, for advertising. Although
this method is relatively an easy method of deriving the

dollar appropriation and keeps the advertising appropriation

n
within the amount that a store can afford to spend, it fails A
to give due consideration to the amount of money that the E
store needs to spend in order to achieve the planned sales £4

and good-will.

The objective-and-task method of determining the
advertising appropriation is more widely used than the per—
centage-of-sales. Under this method, the long-range sales
and good Will objective of the store or chain is defined and
next the decision is made regarding the specific task to be
undertaken during the year. This method takes into consid-
eration both what the company needs and can afford to spend
for advertising.

In deciding how much a store needs to spend for
advertising, management must study carefully the following

factors:

11

Age of the stores.

Policies of the stores.

Size of the stores.

t’ u) as r4
0

Location of the stores.

Size of the trading area.

Competition.

Rates and circulation of media.

Business conditions.

\OODNOUW

Success stores are having in attracting
customers.

10. Past experience.”

Newly opened stores must spend larger sums for pub-
licity than older, well-established stores. A store that
is located in a shopping center or centrally located will
not have to advertise as much as one in out-of-the-way
locations. Advertising is usually curtailed during periods
of recession. Business conditions are a factor in consid-
ering what a company needs to spend for advertising.

The amount that a company can afford for advertising
is determined by the maximum sales volume anticipated. The
advertising budget should be large enough to bring to the
company the greatest total net profit. This amount is the
Point of most-profit-productive appropriation.

What factors need to be studied to determine the

long-range objective of the company? Mr. A. W. Zelomek. the

“Edwards and Howard, op, cit.. p. 6.

 

12

president and economist of the International Statistical
Ehireau, stated that retailers should study consumers.
Since distribution deals directly with the con-
sumers, it's analysis may properly begin with

changes in the number and position of consumers and
in the gays in which they live and spend their

income.

Other general business indicators that reflect busi-
rress conditions are also studied in determining the long
range objective. These indicators show if greater pros-

perity or depression is probable in the near future.
Need for Advertising Plan

To accomplish the greatest success, the advertisement
srnould be planned well in advance. An advertisement plan is
a.:forecast for a season. quarter, month or week of the adver-
tisements that the company intends to employ to attract busi-
neaas. Many retailers use the terms sales plan or sales pro-
lncrtion plan instead of advertising plan. An advertising
'pldan allows sufficient time for advance preparation of adver-
tising. In too many instances, layout, cOpy and art work are
hastily prepared and rushed to the newspaper at the last
minute causing wasteful advertising.

A plan makes adequate provision for the seasonable

Ilature of various lines of merchandise. By checking the past

5A' W. Zelomek, "New OPportunities for Distribution,"
99.11.111.811 2!. Retailing. Volume XXV. Summer. 1949, p. ug,

 

13
.z~eecords on sales, the advertising planners can see that
seasonable items, as well as yearly ones, sell in definite
Ioeatterns. Mr. Karl Moore, director of the Retail Division
of the Bureau of Advertising made the following statement
regarding this subject:

Effective newspaper advertising is made possible
by an adequate budget properly determined, then
planned and controlled seasonably to feature the
right items, at the right time and at the right
price. A store can achieve rare proficiency in
advertising planning and timing by adhering to a
simple philosOphy governing the selection of mer-
chandise for promotion. Each year, there is a
marked seasonal pattern both of total sales and
sales in individual departments. Year after year,
these various seasonal sales patterns'tend to re-
produce themselves with striking fidelity. Seasonal
departmental sales patterns indicate when people
want to buy various lines of merchandise and there-
fore, when it should be most profitable to advertise
those lines of merchandise. Stated more simply,
this advertising philosOphg becomes, "Fish hardest
when the fish are biting."

 

Sales records can tell management what items are
selling but it cannot tell how the goods are being merchan-
di aed in the stores. What about the items that were not seen
133’ customers? What about items that were presented in a poor
‘11 8play? What about new items? The demand for these items
may be just as great as the fast sellers, indicated by sales
I‘etzords, but other factors have held down their sales. Sales

I‘eczords can be used as an indicator, especially of departments

 

 

6Karl Moore, ”Against Sluggers: Bigger and Better
geagons," Journal 9_f_ Retailin , Volume XXVI, Spring, 1950,
. . 30 '

 

11+
to emphasize, but they should not be the sole factor used.in
planning advertisements. Because of advertising waste in-
curred from hastily prepared advertisements, management
should plan carefully and well in advance, all advertise—
merits.

Advertising Media

Before listing the Various media available for the
use of the retailer in delivering his message to the con-
sumer, a discussion of what the retailer wants in the medium
is necessary. A medium is "anything that Carried the adver-
t18er's message from the one who originates it to the one

7

who sees or hears it. " The retailer is striving to find

the medium that will reach the greatest number of his cus—

 

tomers or potential customers at the most economical price.
Iietailers, in general, have found that newspapers have served
this purpose the best in the past years. "Advertisers spend
more in newspapers than in any other medium; two-thirds of
the annual advertising revenue of newspapers comes from local
advertisers, mostly retailers. "8

A list of the types of media, divided as to external

or internal use, will follow:

‘-

7Arthur Brewster, H. Poliner and R. Ingraham,
introduction to Advertising (New York: McGraw-Hill Book Com-
‘pany, Inc.. I§E7TT:p. 265.

8Ibid.. p. 265.

 

 

A.

External Advertising Media
Periodical advertising media:

1. Newspapers
2. ShOpping publications:
(a) Merchant-owned
(b) Independent
3. Miscellaneous periodicals:
(a) Local and community publications
(b) College and school yearbooks
(c) Directories
(d) Theater programs
(6) National Magazines

Direct advertising media:

1. Direct mail:
(a) Letters
(b) Envelope enclosures:

(1) Circulars

(2) Stuffers

(3) Folders

Postcards and mailing cards
Self-mailing folders
Broadsides

Booklets and catalogues
cellaneous direct media:
Dodgers and handbills
Reruns of advertisements
Package inserts

Wrapping supplies; merchandise labels
Gift novelties

Telegrams

Special delivery letters
Store publications
Telephone

SWWQQO 0'9 PWQQO

AAAAAAAA : AAA/x
vvvvvvvv m vvvv

0-3
{I
(D

3.
Sign (or mass) advertising media:

1. Outdoor signs:
(a) Posters
(b) Painted bulletins
(c) Electric signs

2. Cards:
(a) Car cards
(b) Station posters
(0) Bus cards

3. Miscellaneous signs:
(a) Taxicab signs
(b) Truck signs and posters

15

 

 

16

(0) Theater curtains, slides
(d) Movie shorts

(e) Street banners

(f) Sky writing

(g) Kites and balloons

Broadcast advertising media:

1.

Radio:

(a) Direct or "live" broadcasts

(b) Electrical transcriptions

(c) Phonograph records

Miscellaneous broadcast advertising media:
(a) Portable loudspeaker systems
Television

Internal Advertising Media

Periodical advertising media:

1.

Periodical advertisements and reproductions:

(a) Tear sheets, proofs, and blowoups of
store's advertisements

(b) Tear sheets, proofs. and blow-ups of
manufacturer's advertisements

Direct advertising media:

1.

"Give-aways" and handouts:
(a) Handbills'

(b) Store publications

(0) Manufacturers' literature
(d) Gift novelties
Merchandise attachments:
(a) Tags

(b) Labels

(0) Booklets and folders
Packages

Miscellaneous direct media:
(a) Saleschecks, etc.

(b) Catalogues

Sign and pictorial advertising media:

10

Si n advertising media:

(a Signs: counter, elevator, etc.
(b) Posters

(c) Bulletin boards

(d) Miscellaneous sign media

 

 

l7
2. Pictorial advertising media:
(a) Enlarged photos of:
(l) Department's merchandise
(2) Other departments' merchandise
(3) Other departments
(b) Store motion pictures
D. Broadcast advertising media:

1. Public-address systems 9
2. Special "hook-ups" with outside studios

The retailer has this wide choice of media through
which to send his message. He should know all the advantages
and limitations of every media before selecting his media. A
study of his customers can tell him which media would reach
his customers. The merchandising supervisor can assist in
choosing the appropriate media by interviewing and observing

tihe customers in the stores.

 

Need for Stressing Individual Characteristics

If all stores had the same type of customers, same
ceTltiral locations, same 9126 parking lots and courteous
ef'1’1cient service, then advertising and selling would be
ea133.er. But each store has individual characteristics that
distinguish it from all other storeS. Each store has its
°“W1 selling problems. Because these individual character-
13“: ice are the reasons for customers patronizing a particular
stOI‘e, they should be emphasized either in the outside adver—
‘51 Sing media or the internal. Probably the internal

\

9Edwards and Howard, op. cit., p. 6.

 

18

advertisements could more easily tell of the individual
characteristics of the store, while external advertisements

could tell of the family characteristics.

Need for Merchandising Supervisor to Help

Advertising Department

The departmental merchandising supervisor's assis~
tance is very important to the advertising department. The
advertising men, because of their duties, very seldom have
time to associate in the stores with the customers. On the
otkier-hand, this is one of the requirements of most depart-
merrtal merchandising supervisors. One of the reQuirements
or good advertising is that it has the customer point-of-
vieetw. The merchandiser, communicating with the advertising
meri, ‘provide this essential information.

The merchandising supervisor often is responsible,
along with other members of the organization, for the form-
ulating of the advertising appropriation. Because of his
knownledge of customers desires and merchandise, management
belgieves that the merchandising supervisor can offer very
VaJJiable suggestions. Because of his connection with adver-
tifiing, the merchandising supervisor should know:

1. The limitations of advertising.

2. The different types of media available and
the advantages and disadvantages of each.

3. The importance of emphasizing individual
store characteristics.

 

19

h. The importance of determining in advance
the advertising plan.10

ifith.a thorough knowledge of these elements of advertising,
tile merchandising supervisor can help the company obtain
more successful promotions.

The merchandising supervisor, as stated earlier, is
the key man in co-ordinating activities in the stores with
plans in the office. Co-ordination in obtaining promotion
success is very important according to L. A. Wagenheim of

Food Fair Stores, Incorporated:

Since the counterman of former years has become
the vanishing American, because of today's change
to self-service. . . the burden rests upon us in
sales promotion to sell more merchandise to more
people. It is not enough to shout sale in an ad to
get results in store sales and store profits. Today,
you must have a planned event . . . I mean a complete
tie-in right down the line from the buyer to the ad
men to the cashier who rings up the final sale. The
importance of co-ordinating everyone's efforts toward
the sales objective we've set up should not be min—
imized. By planning every step of a promotion and
clearly instructing each person on his part in it,
we set the stage for a successful profitable event.11

 

HIP. Wagenheim seems to substantiate the importance of advance

planning and co-ordination of all sales promotion activities.

10Edwards and Howard, op. cit., p. 6.

11L. A. Wagenheim, "Increased Profits Through Better
Sales Promotion," Advertising and Sales Promotion Clinic,
Nfiltional Association of Food Chains, January, 1933, p. 26.

 

fr .‘slirllfiln

CHAPTER III
MERCHANDISING - AN ELEMENT OF SALES PROMOTION
Definition and Elements of Merchandising

Merchandising is any force applied to merchandise to
incrve it toward the point of sale. Therefore, it includes
all the buying and selling functions. The personnel con-
lieueted with the merchandising function-~buyers, sales pro-
nuotsion managers, merchandising supervisors, advertising
managers and sales clerks or store personnel, are all respon—
sible for having and selling merchandise to customers. They
alfil. work together striving to have the right merchandise, at
trier right time and price, in the right place, with the right
qutxlity and quantity, so that the customers desires can be
fulfilled. '

This thesis will not discuss the buying functions
because it is designed around the functions of the depart-
merltexl merchandising supervisor, whose primary concern is
selling the merchandise. The buying function is very im-
portant in obtaining success in every promotion. The buyer
must have enough merchandise purchased to fulfill the demands
of ‘tkie customers. Many sales are lost because of poor buying
or Door ordering in the food industry today. "Out-of-stock

cohditions continue to be one of the serious problems facing

 

21

‘tkie food industry today."1 The merchandising supervisor can

assist in poor store ordering, but the buyers rarely receive
IsLirchasing assistance from the merchandising supervisor.
Personal selling and displays are the two main ele-
ments of merchandising. Because most of the food distri-
tatition centers are self-service establishments, displays are
missed.more widely than personal selling in the food industry.
Many food retailers feel that customers resent clerks sug-
ge sting items to buy. It depends upon the type of customers

shopping in the store.
What is Effective Merchandising

Effective merchandising is knowing what the customers
for each store and each department want and fulfilling these
wants as adequately as possible. This means the retailer
Skuauld be able to know the answer to the word "right” in the
following essentials of merchandising:

1. Have the right merchandise.

. At the right time.
At the right price.

In the right quantity.

At the right quality.

O‘xU‘t-P‘UN

. At the right place.

P lRobert Beauliew, ”How Champagne Avoids Out—of-Stock,"
—532E§§essive Grocer, February, 1956, p. 63.

 

 

22

The importance of these elements has increased tremendously
since 1920. With the great increase in cars in this country
has come more freedom and less store loyalty among customers.
”There is far less store loyalty among customers than there
was years ago. If you don't have what a customer wants, or
you don't give her the service she likes, she can go many
places, even to other cities or towns."2 Thus, the necessity
of the food dealer in fulfilling the wishes of his customers.

The right merchandise is the merchandise that is re-
quired to fill the demands of the peeple in the community
or area. The retailer should strive to have the right mer-
chandise in all departments of the store. Some people buy
one classification of their goods, like produce, from one
store and the other items from a competitor. This is an
example of having the right merchandise in one department,
but not in the whole store.

The right time means giving due regard to seasonal.
items, special events and promotional plans. Timeliness is
very important in obtaining maximum success of sales pro-
motion. “You can't do business with an empty wagon,"3 stated
George Kline. By this he means, be prepared for a holiday
season by starting the first of November in planning a

\

Th 2Gladys Miller, "Don't Sell Lamps—-Sell Lighting,”
'Dr\e girofitable Merchandising 9;- Home Furnishing, National
5' Goods Association, March, 1956, p. 36.

PP BGGOI‘BB Kline, l'NOWB the Time to Plan Your Christmas
omotions," Progressive grocer, November, 1955. p. 78.

 

23
Christmas promotion. The retailer that has planned and pre-
pared his promotions will not be caught with an empty shelf
or- an empty wagon.

The right quantity of merchandise is the amount that
is sufficient to meet customers demands with little surplus
remaining. This right amount will enable the retailer to
get every possible sale and yet won't leave capital tied up
in excess inventories.

The right quality of goods are those goods that meet
the quality standards demanded by each store's customers.
Sometimes two separate qualities of merchandise are needed
if the store's customers standards of quality are mixed.

The right price is that price established by the

company while being competitive as governed by local

 

Conditions.

The right place to show the goods is where people
W1ll have easy access to them and turnover will be the
greatest. Many food items, due to their poor placement in
the stores, do not reach their potential in sales.

Another factor to be considered in effective merchan-
<11Bing is the method of displaying the goods to the customer.
The as methods of presentation or types of displays obtain
their greatest success only after careful analysis of the

desires of the customers.

 

24

Types of Displays in the Food Industry

Mr. Walter Baumhogger in an address delivered to the
Sales Executive Club of New York, stated:

Regardless of what kind of store it is, display
is as important as any other one thing, and more im-
portant than most other things in consummating the
sale to a customer. Display consists of many things.
First there is the appearance of the merchandise it-
self. Then, there is the location on the counter.
Then there is the manner in which it is displayed on
the counter. Then there is the location of that
counter in the store. Then there is the matter of
the other kinds of merchandise (When I say “counter!
I mean any kind of store equipment on which merchan-
dise is sold--counter, showCases, shelving, racks,
platforms, etc.). There are counters, tables, 4
window diSplays, group displays and other displays.

From this statement by Mr. Baumhogger on types of displays
and from observing displays in many food stores, the writer
arrived at the following list of the types of displays used
in the food industry.
The main types of display used in the food distri-
bution centers are:
A. Regarding location:
. Check-out displays
. End of gondola diaplays
. Shelf displays '

l

2

3

u. Table displays
5. Window displays
6

. Parking lot displays

\

P l‘Harry Simmons, Successful Sales Promotion (New York:
Per1t:ice--Hall, Incorporated, l9fl), p. 166.

 

 

25
B. Regarding number and type of items:
' 1. Single item display
2. Related items of same department
3. Related items of different departments
4. Group of unrelated items
C. Regarding presentation:
1. Dump displays
2. Stacked displays
3. Mass displays
4. Demonstration displays
'rrij.s is a list of the types of displays most widely used in
tile: food industry at the present time. One display could
huatre three names, or be of three types. An example would
rue a.mass display of a single item located at the end of a

gondola.

D1 enlays Regarding My};

The checkout displays are widely used in the food
5Jkitistry.Q These displays are placed on the front of each
Checkout counter to serve as last minute suggestions to
customers. Best results can be obtained by displaying high
demand, fast-moving merchandise at this IOCation. One limi-
tation of checkout displays is that it often crowds the
cl(Hacker and leaves her little room for movement. A well
placed display can remedy this situation. Many retailers,
realizing the importance of this location in the store,

0ften display too many items at the checkout counter and

 

 

26

truereby, give a crowded impression to customers. Careshould
'bez used in selecting the right items and the right number of
1 teams to be displayed at this location.

The end of gondola display is another type of display
f1311nd in many retail food stores. Because of the importance
()f' the space at the end of each aisle, and the need for more
Space in food stores, and the quick turnover of advertised
”Specials," retailers have solved these three problems by
using the end of aisles for displaying merchandise. There
is enough space to stock large amounts of merchandise with-
<31113 constant restocking of high turnover items by using these
areas. Customers can easily find the advertised merchandise
rilsaced at the end of the aisles.

Shelf displays are those displays which are merchan—
d1 sed in the regular day-to—day position on the shelf or in
the case. If advertised items are displayed on the shelf,
tileri most merchandisers attach a small "as advertised" or
"special" sign to the merchandise to attract the customer's
attention. Many retailers are beginning to use shelf ex—
tel“Iders to display their advertised items.

Shelf extenders are used to:

1. Add to the massiveness of some displays.

2. Show additional varities or lines.

5

3. Feature companion-item suggestions.

\

S'Shelf Extenders Are Tops,” Chain Store Age, June,
1956 ’ p. 70.

 

 

27

These extenders can facilitate in the problem of restocking
of advertised merchandise.

Great care should be taken to see that all items, not
only the advertised ones, are well stocked and adequately
displayed. Mr. Rogers Brown, of the Kroger Company, empha-
a1 zed the merchandising of all items in a recent address to , _ 1
the students of Food Distribution at Michigan State Univer-

sity. A survey conducted by Kroger showed that only one out |

 

of every six customers buy the advertised merchandise. The "1
remaining five buy other items, so all merchandise should be '1
well displayed for greatest success.

Table displays are widely used in the food industry.
The advantages of this type of display are that the table

can be located almost anywhere in the store and customers

 

have easy access to the merchandise. Merchandise displayed
on the middle shelves that are about waist high sell more
merchandise than at high or low levels. Table displays take
alavantage of customer convenience.

Window displays are not too widely used in the indus-
try- Some retailers believe that the windows in front of
the store offer great merchandising advantages. Others feel
that the windows should be used for signs and posters. The
retailers that build mass displays next to the windows feel
that customers, who are passersby; can be attracted by neat
window displays. Many impulse items are displayed at this

1‘DCBation. Some retailers feel that nothing should be placed

 

 

28

on or in front of the windows. These feel that the customer
will be impressed by looking through the window at the whole
store interior.

Parking lot displays are increasing in use, because
of the large number of items needed to be stocked in the
food stores and because of the lack of space in the stores.
Retailers, because of these crowded conditions in their
stores, often display bulky merchandise, such as watermelons
on their parking lots. These displays, like window displays,
can be seen by passersby without entering the store and often
lead to more customers and added sales. The big disadvantage
to this display is that the merchandise must be transferred
to an enclosure during hours when the store is closed. This

creates a need for building the display daily.

D1 splays Regarding Number and Type _q_f_ Items
Displays may also be classified according to the

number and type of items merchandised. The merchandiser
Should consider all factors, such as individual character-
istics of the community, the customers and the store before
determining what type of display to use. Many customers de-
pend less on shopping lists today and more on. food market
displays to remind them of the products they need, while
Others stay with the lists. Many peeple who use the lists

have a certain resentment to displays.

 

 

29

Single item display is a showing of one item of mer-
chandise. When no attempt is made to group items in a dis-
play or show related items next to the display, then a
merchandiser is using a single item display. Some retailers
do not build a separate display, but merchandise advertised
items in their regular position on the shelf or in the case.
These are single item displays, as are all the non-advertised
goods found on the shelf in their day—to-day location.
Related item displays are those where all related

items are placed together or next to each other. They

represent a silent form of suggestion selling. This type of

display often isgfavorable to the customer because it facil-

itates her ' shapping. It is very valuable to the modern

food retailer who must rely upon almost all his suggestion

 

selling from diSplay, since the food markets are self-service.
These related items may be goods of only one department or of
several departments. The promotion plan and type of merchan—
(11 as being displayed will decide this problem. For example,
a ‘31 8play of steaks for a promotion can be supplimented with
a C118131ay of meat tenderizer. Meat tenderizer is a groCery
item. while steaks are a meat department item. A promotion
plan emphasizing fresh salads ordinarily would display only
Imandated produce merchandise.

Group displays are diaplays of a number of unrelated
items together. This display is undertaken to impress 0“

t
he CUstomer the idea that the store is prepared to fill

30
almost any conceivable merchandise need. It serves the pur-

pose of both a prestige and sales promotion display.

_D_i_splays Regarding Presentaation

Names can be given to displays by the way they are
presented to the customers. Although stacked displays are
the most widely used type according to this classification, —— —-—|
dump, mass and demonstration displays are also extensively
used in the food distributing centers.

Stacked displays are those displays which present the
goods neatly arranged so that a tidy appearance is shown.
These displays do not try to impress the customers by mass-
ive ness. They try to take advantage of the labels and color

on packages, as a sales stimulant. The labels are all turned

 

in the same direction to give consistency.

Dump displays are used by many retailers in the food
industry. The term "dump" is self-explanatory. The advoc—
cates of this type of display are convinced that customers
are afraid to mess up a nest display. The limitation of
this display is that it often reflects "sloppiness" or
laziness on the part of the retailer. The individual stores'
customers will determine if this type of display will be

Successful or not.

 

The demonstration display is receiving extensive use
in 13he food markets in the last few years. The demonstrator
has samples of food that she gives to customers as they cir-

CUIate in or around the store. The particular advantage to

31

this; type of display is that it appeals to the senses of
tastae and smell, -and the desire of people to get something
for- nothing. Retailers feel many. customers can not resist
purwzhasing the item after tasting and smelling the product.
One: limitation to this type of display is the fact that
peolile feel obligated to buy the goods after receiving a
sanujle. Many people will refuse the sample because of this
attritude. Too many of these demonstrations at one time can
be as detriment, rather than a benefit, because of causing
crowds of non-purchasing children and because of the afore-
merrtioned resentment.

There is a wide variety of types of diaplays for the
fOocl merchandiser to use. He should study the customers and
their shOpping habits to determine which will be the most
8ucoessful. He should not use too many displays at one time
be<3£tuse this could cause the loss of display value. The
me Pchandiser who varies the types of displays probably will
hafires the greatest success, because of presenting something
d11?1?erent. He should use the same principles as advertising
:“15fc3ut construction in setting up his displays. They are:

1. Principle of unity

2. Principle of coherence

3. Principle of balance
a. Principle of movement
5 6

. Principle of emphasis

\
6Edwards and Howard, op. cit., p. 6.

 

32

Unity is obtained by merchandising articles that

logically go together or will be used together. Coherence

is obtained by the effective use of all the elements of a

display--the merchandise, posters, tables, et cetera.

Balance is obtained by correct arrangement of the merchan-

di se. Movement is gotten by displaying merchandise so that

it will increase the flow of traffic through the whole store.
Emphasis is obtained by using displays of contrasting sizes

and colors of merchandise. These principles should be applied

to Judge displays as well as advertisements.

Need for Displays in Food Distribution Centers

Competition in the food industry demands the use of
displays. Because of federal, state and local laws, espe-
01a11y those against discrimination, all retailers can buy
and sell merchandiSe at approximately the same price.

NOthing can stop other retailers from presenting quality

me Pchandise and convenience to the people. How does a

re tailer make his store different from other stores? The

an Swer 1139 in merchandising. Merchandising can make the

I"HT-ailer different from his competitors.

A large share of the sales in the food industry are

made of staple items which carry a low mark-up. To stimu-

late customers to buy impulse items which carry a higher

mapk‘mu, displays are needed. Displays are used to obtain

balan ced selling so that a high average mark-up can be

obtetlined.

 

33

Cutting the price on a standard article in order
to attract customers to the store is one of the best
known methods of sales promotion. Some retailers
follow a policy of having "weekly specials" consist-
ing of nationally advertised brands marked down for

the week.7
Thias marked-down price is virtually what the article costs

at \(holsale. If only this item were sold the retailer would
not; obtain his needed mark-up. Other items should be dis—
played near the "Special" items. By selling both the high

maids-up and "special" items, the retailer obtains balanced

Salling.

Another important reason for displays, which is often
over-looked, is that it helps to move surplus goods for the
falflners. Therefore, display use is beneficial to the econ-
0m? as well as to the customers and retailers. A recent
National Association of Food Chains bulletin stated:

What is it that offers unlimited promotional
Opportunities, can be translated into "plus" sales,
offers our customers unusually good values, is avail-
able in quantity and makes friends for our company,
too? The answer to the question is any food item
featured under the Agricultural Program of the
National Association of Food Chains. We can be sure
that we have a merchandising "natural" to work with
r-something that's bound to produce extra sales and
pull customers into the store. It's serious business
for the farmers of our country-egood business
for us. What's more, it is a part of a co-Operative
effort with farmers tg help move large supplies of
farm crops to market.

\—

G 7Walter Haywood, The Retail Handbook (New York: Mc-
Pa“"'~Hill Book Company, Incorporated, 1921+7, p. 220.

 

rq.t 8"N.A.F.C. Agricultural Program Offers Merchandising
El Sflfial," National Associatiqp 32 Food Chains BulletinL 1955,

34

Displays are also helpful to the customers. They
make: it easy for the customers to buy advertised items.
Itenis are easily found by customers and the employees
stocking tasks are made easier by displays.

Displays are needed to follow-up on advertisments.
Aftezr attracting the customers to the store by advertisements,
diagilays should be used so that the customer can easily find
the items. Customers will have a feeling of resentment
tovnard.a company advertising "specials" and then not having
the merchandise available.

Displays are also needed to help build a reputation
for the store. The promotional value is only one advantage
0f (lisplays. They also offer a prestige or institutional

Value.

The use of displays is needed also because of the

following advantages they offer:
1. Makes the store bright and attractive.

2. Gives each department a chance to show its
merchandise to advantage.

3. Enables the store to change its "face" with
changing seasons. .

a. Can institutionalize the eatire store as well
as individual departments.

Intelligent use of interior displays, set off by
TDright, well chosen colors, can do a great deal to
Inake the store cheerful and inviting. There is a
figrowing recognitiopoof this fact on the part of forward—

looking merchant s .

\-
9Edwards and HoWard, op. cit., p. 6.

lolbid.

 

 

35

All of these reasons seem to point out the necessity
of displays in the food stores today. Management has come

to expect the use of displays as necessary for maximum

81100688.

Who is Reaponsible for Displays

To have a successful sales promotion, all store per-
sonnel should take an interest in displaying the merchandise
so that maximum sales can be realized.

The construction and layout personnel are indirectly
responsible for display success depending upon how the
thiildlng and departments are arranged. If the store is laid
GUI: for customer convenience, then displays will be more suc-
Cessful than if poor layout is used.

Often a customers decision to enter a particular

chain food store can depend on the quick, initial im-
pression that she gets from the stores exterior. An
attractive out-side appearance can immediately make

her want to come in,--an unattractive one can
send her to the nearest competitor.11

Tr111:3, the layout personnel are responsible for diaplay suc-
sees in an indirect way.

The sales promotion planners and buyers are respon—
Sitajge for sales and display success. The planners must

promote the right items and the buyers must have an adequate

BuDply to fulfill customer demands.

\-

.A llflThe Outside View on the Inside Sale," Chain Store
“ES: OCtObeI‘, 1955: p0 119-

 

36

Probably the department manager, store manager and
Inerchandising supervisors are the ones who are most respon-
:sitfle for successful store diaplays. These men work in the
stnores and mingle with customers so that they can discover
tile desires and dislikes of many customers. They build
tiieir'displays according to their interpretation of customer
desires.

The merchandising supervisor has prime responsibility
fRar the success of displays. His responsibility is not only
tc> management, but also to the customers and the employees.
'VIf the customer is not satisfied, the supervisor has
flailed."12 The supervisor is responsible to the people who
buork in the store. He can obtain success only through store
pnersonnel. Mr. Willard Campbell, Assistant General Merchan-
d1 sing Manager of Schuman's Incorporated, made the following
sisatement on what the merchandising supervisor and the store

personnel ought to know:

We must all know the facts about our stores
operations:

(a) What are the most important departments in our
store each month from the stand point of:

1. Sales volume.
2. Profits.

(b) A day-to—day knowledge as to which items are
selling best in what department.

3 12Cletus Berning, Jr., "Retail Food Chain Store
upe rvison" (unpublished Master's thesis, Michigan State

University, 1953). p. 17.

 

37

(c) When you know what your most profitable depart-
ments are and what items in those profitable
departments sell fastest, develop policy of
placing major promotional effort behind those
profitable itemS.

(d) Remember that a majority of your year—around
best selling items will be best sellers during
the November-December Christmas season.

(6) Recognize importance of proper timing of
promotions-- lump your promotional efforts
Just prior to seasonal selling peakse-not , -s
after peak demand.

at
V.

(f) Get "all the Juice out of your hot items and
best selling orange." There is a tendency
to stop promoting best sellers before sales
have approached customer saturation point.

The merchandising supervisor should know these points
arni discuss them with the store personnel so they can offer
Suggestions as to significant trends.

If the merchandiser fulfills his obligations to the
elisstomer and the store employees, he will be fulfilling his

I‘6 Bponsibility to the company.
Limited Use of Personal Selling

The number of self-service departments and stores in
tl1€3 food industry is constantly increasing. Because of this,
the checker has come to be the only contact with the cus-

‘tcnnerg in many food stores. Since the checker is the only

\_

13Willard Campbell, "The Merchandiser's Views on
sales Promotion and Display," Using Your Promotional Tools
More Successfully, National Retail Dry Goods Association,

19 39' p— 110

 

 

38

contact with customers, she is the only possible source of

personal selling, unless hostesses are employed strictly for

this function. The personal selling of checkers has been

mostly limited to suggesting or reminding customers of the

special items of the week, if they do not have them in their

Most of the food companies reQuire that their
so that they will know the

carts.

checkers read all advertisements,

items advertised and the prices.

Many companies strive to get the checkers and other

personnel to sell not goods, but themselves as friends to

the customers. If they can sell their personality to a cus-

tomer and become a true friend, then the customer enjoys

coming to the store because she meets her friend. This is

 

another one of the individual store characteristics mentioned
earlier, which can add immensely to the success of a store.
The store manager or supervisor should discuss and encourage

the selling of personalities for greater success.

The Growing Use of Automatic Merchandising'

Will automatic merchandising, heralded as the dream
01’ the future, revolutionize retail distribution with all its
CcDate and wastes? Will there ever come a day when, as some

enthusiasts seem to believe, sales-people no longer need to

8eI‘ve the customer with what she wants to buy .or checkers no

1Onger need to add up her purchases and collect her money?

The answers lie in the future.

 

39

The dollar volume of sales by automatic machines is

gxwywing yearly in type and number of items being merchan-

diJBGd. Harvard Business Review lists the following products

arui services being merchandised by automatic machines in

1953:”
Products
Books Hosiery
Combs Hygienic Supplies
Crackers Ice
Doughnuts Milk
Fruit Nuts
Hand lotion Paper Cups
Handkerchiefs Pencils
Tissues
Services

Checking Lockers Scales

Clothes Dryers Shavers
Insurance (trip

accident) Shoe Shines
Ironers Toilet locks

Perfume
Photos
Popcorn
Postcards
Razor blades
Sandwiches
Soap

Towels

Typewriters
Voice Recorders
Washing
Machines

T111.s list has grown even larger in the last three years.

Many food stores have increased the number of auto-

mEitHic machines for merchandising in their companies. The

Grand Union Company is planning to place a number of these

machines on their parking lots to [obtain extra sales. Other

cornDenies use these machines on the side of their stores to

Obtain sales during hours when the store is closed. The ever-

lruereaging labor costs have added to the greater use ofvending

‘nackunes in the food industry, along with the desire for extra

Bales.

\

luWilbur England, "Automatic Merchandising," Harvard
Easiness Review, November-December, 1953. p. 87.

 

 

1+0

Many people have had the experience with automatic

vending machines of faulty Operation and loss of money. This

has caused a resentful attitude by these people toward the
machines and they do not desire this type of merchandising.
Because of these attitudes being prevalent among a large
number of peOple, complete merchandising by automation in
the food stores cannot be eXpected for many years. But the
retailer should study his situation and see if the use of
automatic vending machines might not add extra sales during
times when the store is closed.

Merchandising is concerned with trying to get the

Displays, personal selling and auto-
The

goods to the people.

matic machines are three ways of selling to customers.

 

I'1g'ht type of merchandising will be those that the customers
desire. By fulfilling the customers wishes for each store

and each department, the retailer can obtain maximum success.

PART II

Functions of the Departmental Merchandising Supervisor

 

 

CHAPTER IV
THE SUPERVISION FUNCTIONS
Introduction

This part of the thesis is designed to discuss the
functions that are performed by the merchandising supervisor

in the food industry. The functions are divided into two

classifications--supervision and merchandising. The merchan-

dising functions are those tasks needed to be performed to

sell merchandise, while the supervision functions are those

that strive to develop and guide the store personnel. The

main objective of supervision is to gain teamwork and effic—

ient operation. The main goal of the merchandising functions

is to sell more goods.

Need for Supervision

Supervision is over-seeing and guiding the actions of

"The term 'supervision' relates to anyone who
1 The

Subordinates.
is responsible for getting work done through people. "

3130 re managers and department managers are supervisors as

are the departmental merchandising supervisors. These men

are needed to guide and co-ordinate the actions of subordi-

mate employees toward the goals of the business. If the

\_

 

"Developing Leaders," How to Build 3

1Robert Herron, __
Super Market

Wtive Sellipg Personalipy (Cleveland:
atSitute, May, 193uT, p, "59,

-I _ __-_-

1+2

store personnel do not know what or how they are to function,

then they can not do their best work for the company. Some

authority is needed to direct their actions. A father and

mother are needed to direct the child, a foreman is needed
to direct production and a supervisor is needed to direct
store personnel. Without direction, people would do only

what was good for themselves. The supervisor is also needed

to curtail little disagreements between employees.
Finally, a supervisor is needed to serve as a leader.

Because of the nature of people, there is a tendency in most

individuals to look to others for guidance and leadership.

A child's actions and words are often derived from the actions

and words of the parents. Since peOple will follow a leader,

a Supervisor is needed so that they will COpy the ideas and

actions of a company leader rather than an informal one.
Types of Supervision

There are two methods used to get people to worke-
the boss method and the leadership method. The first
we rates by the supervisor ordering employees to do tasks,
usually in a rough tone of voice. This supervisor

does not work with his employees, but Just functions

as a. director of jobs. The employees are looked upon as

fl

1"0013“ or "slaves“ needed for the operation of the company.
The boss method of supervising has been mostly re-

placed by the leadership method at the present, but some

 

P9,

43
supervisors still function as bosses rather than leaders.
Leaders plan tasks with the employees and help with the
actual work. This method of supervision operates under the
principle that people will be more productive if they like

the supervisor and the company. This method creates a

friendly attitude between the supervisor and his subordinates.
Functions of a Supervisor

Because of the great advantages of leadership over
the boss method of supervision, the former will be given as
a. ffijnction of supervision. While leading and guiding the
actions of his subordinates, the supervisor performs the
following functions:

1. Belle himself as a leader to his subordinates.

2. Plans for needed manpower.

3. Trains and develops his subordinates.

h. Counsels employees.

5. Provides opportunities for participation.

6. Creates an attitude of confidence in the company

and himself.

7. Gives fair treatment to each individual.

8. Attempts to match men and Jobs.

9. Develops reserves in his employees.

10. Rates employees periodically.
11. Sets standards of performance.
Supervision responsibility can vary from one company

to a1'lother, so no all-inclusive list of the functions of

 

an

Ehlpervisioncxuxbe given. These are some of the main functions

(If supervisors in the food chains.
The supervisor must sell himself to his subordinates,

hflno are the department manager and department employees and

in. some cases, the store manager.

Selling in it's best known form is often summar-
ized as "arousing attention," "creating a desire,"
and "closing the sale."

However, there is another form of selling, the
kind of "selling" we use in directing personnel in
order to obtain a smoother Operation and finer

We use "selling" here because experience
so highly essen-
organization,

results.
has shown that real co-operation,

tial to the efficient functioning of an2
cannot be demanded. . . it must be won.

Mr. Phippeny, the head of the meat department for Vons

Grm>cery Company, goes on to eXplain that the best way to

acc:onmflish.this form of selling is to tell the employees what

18 ‘to be done and why, how and when it is to be done. The

b142'1factor that many supervisors ignore is telling the em-

Ployees why something is being done.

In directing personnel you must convince every-
one involved of the validity of "why." When you
achieve this, you also create a desire to act, and
top results will only be obtained when the desire

to act exists.
The supervisor should always be conscious that he is
furlctioning as a.leader while performing other functions of

BuDervisinn. Good leadership is not attained easily, but

PGQIiires constant effort by the person trying to lead

\ _._._

 

 

2Rey Phippeny, “This is Your Life--Selling," National
tion g£_Food Chain Bulletins, March 1956, p. 1.

£¥§L§E>cia

3Ibid., p. 1.

 

 

45
individuals. Good leadership strives to create team effort
by guidance.

The supervisor must plan for needed manpower. A good
supervisor realizes the fact that changes are constantly
taking place in an organization as evidenced by the retiring

of employees, aging of employees and floating away of per-

sonnel. Realizing that this same team cannot remain static,

the supervisor plans for personnel that will be needed in
the future. With the great eXpansion of the food industry,
88 evidenced by more departments and larger stores, more men
are needed daily. The supervisor can and should plan for
this needed manpower.

One of the main functions of any departmental merchan
dieing supervisor is to train and deve10p his subordinates.
The main subordinate the supervisor is responsible for de—
Veloping is the department manager. There are many types and
methods of training being used in the food industry, as

Stated by Mr. Ferguson, the Personnel Director of American

Stores:

Currently, we in American are using ten separate
Tiraining programs, all designed to play a progressive
Ilart in helping to develop managerial ability. Six
car these courses are generally regarded as skill in-
Eitructions and provide the necessary technical know-

ow. The four remaining courses we call the leader—
ship series, consisting of Grocery Manager Training,
lieat Manager Training, gob Relations Training and

Supe rvi sory Leadership.

_\
”William Ferguson, "Effective Training and Develop—

of People,” National Association 9: Food Chains Bulletin,

me
O
Qtober, 195“, p0 2.

 

46

The effectiveness of these courses will depend upon

‘the people and standards involved. Many believe that both

tharmalized courses and on-the-Job training are needed for

tweet success. Both methods have great limitations. On-the~

,fi3b training usually does not offer the individual as good

truaining as formalized courses. The personnel work and per-

fRer their Job tasks while being trained on the Job.

Formalized training courses offer the individual the

be at training, but management does not receive any immediate

laeaiefits for wages paid the employee while training. Mr.

Robert Sampson says:

Top-line executives seeking to develOp the
abilities of the men under them are in a real
dilemma. The way out of the dilemma, it seems to
me, is to put qualified staff men in a new role--.
that of catalytic agentg, so to speak, for executive

development on the Job.
The departmental supervisors function as these agents,

training the department managers and employees for executive

PCsitions while they work on their Jobs. They notice the

mistakes made and counsel and advise them on the right way

0? performing the task.
The company policy and the individual characteristics

or tile organization will determine which method of training

is 1host effective for the organization. The supervisor must

remember that the training he provides should be in both

 

 

_l__‘~‘_
HEl sfiobert Sampson, "Train Executives While They Work,"
_.~5:!3;§Q,§gginess Review, November-December, 1953. p. u3-4u,

 

 

1+7

technical skills and leadership. The best way to develop

these skills in others is by being a good leader.

Counseling employees is another function that is
often performed by Supervisors to help develop individuals.
The supervisor, who takes a personal interest in each man's

welfare and progress, will be more able to know the desires

and wishes of each subordinate. He can visualize the job

the individual will be most capable of performing with

preper guidance. By advising and counseling, he will create

a feeling of recognition and importance in the minds of the
employees which leads to better attitudes and productivity.
The supervisor, while directing the activities of

individuals, should provide an opportunity for the individ—
uals to express their feelings or ideas. In many food chains,

this opportunity is provided by use of departmental meetings

by the company. If a company doesn't use departmental

meelitings, the supervisor can provide the opportunity for

emDloyee ideas during periods of counseling. Many times the

employees have ideas which are of great value to the super-

Visor and the company. Therefore, the supervisor should

1'unction as a conference leader or an interviewer with his

SUbOrdinates.
The supervisor should give fair, unbiased treatment

t
o 8.11 his subordinates. When a person is given fair

t
resUsment all the time, a feeling of confidence is created.

'1‘
he relationship between the supervisor and his men

 

 

148

should be one of a coach and his team. He should strive

to attain confidence in himself because only then will the

employees give their best. Because the supervisor represents

the company to many employees, confidence in him means con-

fidence in the company.

Complete confidence by all employees can be attained
only by being fair to all men. Lack of knowledge sometimes
causes a feeling of unjust treatment by employees. The
ible to recognize this situation and

The

8Upervisor should be :

give the employee a complete and thorough eXplanation.

result, after such an eXplanation, usually is added confi-

dence and trust in the supervisor.
Because of the importance of prOper induction of all

new employees, the supervisor either personally or through

the department manager, insists on its performance. Proper

induction can create a feeling of belonging in the employee.

"More can be done to make or mar the new employee's future

in the first days than in weeks at any other time. " Unless

the supervisor insists on proper induction, this important
fur'1C21.'.ion will often be ignored.
When employees are to be hired, the personnel depart-

ment or store managers try to select men who will be satis-

’1*561 in.the Job available. Often an error is made in this

\v—

‘1 6George Hasley, Handbook p_f Personnel Management (New
ork: Harper and Brothers Company, 1911(6), p. 109.

 

 

1+9

selection. Another task of the supervisor is to follow-up

on this match of men and Jobs, because often employees are

not satisfied with their Job tasks.

Just like the manager of a baseball team develOps

players to substitute in other positions, so should the super-

visor develop depth in his department. Due to sickness,

death, or quite, often a function in the department is vacated.

By planning for these shortages, the department supervisor

This

can have capable men trained to fill these functions.

18 another function of agood leader.

Because the supervisor is in close contact with the

employees, he should be able to periodically rate each em-

Dloyee for improvement. The supervisor can tell higher _, .

management about prospective executive personnel. He is the J

logical person to perform this function, because he associ-

 

ates both in the office and the stores.
Adequate communications are needed if team effort is

to be obtained. The supervisor definitely functions as a

comm‘Qnicator. "In order to infuse your personnel with your

distil'lctive selling personality, you must keep them well

enough informed to spark them into enthusiastic and progres-

SIVe action on your behalf. "7 The supervisor should get his

points across to the store personnel so they can take over

t
he next step when Mrs. Consumer enters the store.

\‘A
7Charles Martin, "Communications—~the Shortest Dis-

1:
anee Between Top Management and the Customer," How to Build

A -
Tqajgifiinctive Selling; Personality (Cleveland: Super Market
. 8 t itute , Maya 1951+) o p. 63.

¥

50
The supervisor should realize the importance of good
store personnel and strive to deveIOp in them a personality

tfluat is beneficial to the company. Mr. Bill Nigut stated:

The big difference between any two super markets,
it would seem to me, lies in the personnel. Personal
selling Supposedly disappeared with the service
counter, but I do not believe that is true. The cus-
tomer is also supposed to have come more in contact
with employees in the old-fashion counter store, but
that is not true, either, at least it is not accord-
ing to my eXperience. In the modern super market,
with a minimum of 30 or more people necessary to
Operate the store, the average customer has the
opportunity to be eXposed to as many as 16 employees
while doing her weekend shopping. Unfortunately, no
more than four or five are tgained to make her visit
to the store a pleasant one.

The writer agrees with Mr. Nigut about his points on {W
Personnel and believes that the supervisor should stress the

1mportance of a selling personality to his subordinates.

 

Qualities Needed for Supervision or Leadership

To perform the aforementioned functions, the super-
‘71 Sor- should possess certain qualifications. To list the
eKact qualities necessary to be a supervisor would be impos-
81file because "supervisory JobB 939‘“ to vary considerably
in tierms of personal characteristics required for success."9

\

\—

 

Co 8Bill Nigut, "It Happened to Me," How 3_ Meet the
figfglflgjdtive Challenge (Cleveland: Super Market Institute,
5' 1952), p. 116.

 

‘Ani 9The Development 2; Executive Talent (New York:
erilcan Management Association, 1953). p. 300.

51
This means that a careful Job analysis of each supervisory
Job is needed in order to insure the most successful se-
lection process.

Mr. C. L. Arnold, Personnel Director of Krogers, in a
recent address to the students in the Food Distribution Cur-
riculum at Michigan State University, stated that there are
many words that can be used to describe the qualities needed
for leadership, but that they all add up to the possession
of three skills-~conceptual skills, technical skills and
human skills. It is important that top management has con-

ceptual skills so they can conceive the functioning of the

[1

Whole organization and can reasonably forecast future trends.

In this position, the other two skills are minor.

W-_~*_fi
n' ‘ .D MEU“
P

'1‘ ,_

The personnel men should possess human skills, because
01‘ the1r work with people. The human skills are all the
quallties which cause a person to get along with people. The
conceptual and‘technical skills are minor in this position.

The supervisor should possess both the technical skills
and the human skills. He must have the qualities to get
along with people and also have knowledge and qualities needed
t9 Perform the technical aspect of the business. A merchan-
dising supervisor would need to possess the human skills of
leade rs and the technical skills of merchandising.

The food industry has advanced with gigantic steps
Since the turn of the century. Competition has caused the

r'e’tailer to try new techniQues and devices, because in this

52
business a retailer cannot remain static. Management has
made great advances both technically and mechanically, but
only recently has attention been given to the most promising
single source of productivity--the human will to work.
Effective supervision will stress human relations with em—
ployees. The merchandising supervisor should not concentrate
all his effort on merchandising, but should give equal empha-

sis to his best working and selling element-~the human being.

CHAPTER V
THE MERCHANDISING FUNCTIONS
Introduction

The departmental merchandising supervisor is respon—
sible for merchandising goods as well as supervising person-

nel. He fulfills a number of his merchandising functions

through the work of the department manager and other store

employees, Because merchandising is accomplished through

other individuals, the merchandising and supervision func-

tiong are both performed by one act. It is hard to dis-

tinguish between the two duties when discussing a function

like communications. This function is an element of both

BuPe I‘vision and merchandising. The writer feels that the

distinction should be drawn between duties performed with
the prime purpose of developing and guiding the individual
emp10y633,and duties performed to display and sell the right
merchandise. These duties needed to be performed to move
more goods will be called the merchandising functions. One
01' the objectives of developing employees, it must be remem-

b
cred. is to help increase sales.

Functions of Merchandising

Since customers must be persuaded to shop in the store

and goods need to be shown in the stores to sell. a store

c
annOt ope rate efficiently without advertising and

51+

merchandising. "In the most efficiently organized and
Operated stores, these three functions: (a) merchandising,
(b) advertising, and (c) selling are blended together into a
well-organized, smoothly co-ordinated, delicately balanced
team, '1 The over-all function of the merchandiser is to

attain co-ordination of activities between these three de-

partments in the organization. The co-ordination of activi-

ties planned in the central office and performed in the in:-
diVidual stores can best be attained by the personnel who
work both in the office and the stores. The departmental
merchandising supervisor usually spends some time in the
Central office and most of his time in different stores, so
he is the key man striving to attain co-ordination of acti-
vities.

Because the merchandising supervisor "rubs elbows
with" the customers almost daily, he usually assists in the
Planning of the publicity budget. Retailers should know the
cust3<>rners views on acceptance of certain items, readership or
listenersmp to certain media and other pertinent inform-
ation in drawing-up the publicity budget. Because of his

assOQiation with customers the merchandiser usually functions

as a member of the planning committee. Many executives feel

that the merchandiser should assist in planning advertisements

\

N t lUsing Your Promotion Tools More Successfully,
8‘ 1°1'lal Retail Dry Goods Association, 1am, p. 10.

 

 

55

each week because he possesses the Customer point of view.
One drawback to having these men assist in planning adver-

tisements is often they want to crowd the advertisement and

use little white space.

The people who have made advertising a profession
W(Mild like to see more planning, better organization,
better arrangement, lighter type faces, fewer black
reverses, and more white space, with bigger illus-
1SI‘Iations, and better selling copy. . . in fact,
generally, a more professional Job, with greater
d1 gnity than now apparent in the average retail food

advert is eme nt s.
But those people on the firing line, the retail

food promoters themselves, have and generally still
do, take the other stand. Hit it hard-~Make it

Black--Set it up Big—-Crowd it in, we have no space
in our stores for white space. 2

r.
MP- Bauman, when referring to retail food. promoters, had the f
merehemdising men in mind as opposed to the professional ad- 1

vertiging men. Most promotions in the food industry are 1,

 

planned by merchandisers, buyers and advertisers.

The merchandiser is also a planner of displays. After
helping plan the items to advertise, he is responsible for
the I‘Ollow-up on these advertisements. He must build dis-
plays so that Customers can find the merchandise in the
8"01‘s: 3, Mr. Irving Axelrod of Weingarten, Incorporated,
Showed the importance of building displays to follow-up on
adve I‘tisements when he stated:

I would like to talk with you a few moments about

the original Siamese Twins. Yes, I'm talking about

the Sales Siamese Twins: --namely, Store Displays and
Advertising. They are as companiable, interlocked

\

tie 2Va1 Bauman, National Association of Food Chains Adver-

ififii§EE§ and Sales Promotion Clinic, National Association of
Chains. 1953. p. 7 8.

 

56

and as dependent on one another as they can possibly
be, and no ultimate sales program can ever be as ef-
fect ive with either of them as with both of these
factors. One hardly lives without the other, and if
one survives alone, it is only a bitter struggle.

This planning of displays involves making decisions

0“ how much merchandise is needed, where it should be placed
and what price should be attached. This must be decided
after the planning of the items to advertise. The merchan-
dising supervisor often studies manufacturers literature to
get ideas on displaying merchandise and to help decide on

which items to use for tie—in promotions. Over the years,
Super Market Merchandising Magazine has been compiling a
r'eC’OI‘d of every note—worthy promotion that has come to its

attention, "Some of the results of that work now appears in

a Printed book, called '1000 and One Super Promotion Ideas. "'14 ,.
”any merchandisers use this as a source of ideas for display.
He can obtain merchandising information by reading current
trade papers, National Association of Food Chain (Bulletins
and periodicals.
The merchandising supervisor, besides training the
Store employees to improve their human skills, must also train
then“ in efficiently performing the technical skills of merchan-

dising, He tries to train the department manager to be able

\

3Irving Axelrod, NJA.F.C. Advertising and Sales Pro-
Clinic, National Association of Food Chains, 1953. p.18.

 

 

W

I...

M M Zimmerman The Su er Market (New York: Mc-Graw-
H o o ’ __.__ w
111 Book Company, 1955). '9. 231+.

 

57

to adequately fulfill his position in the company. He shows
them how to arrange merchandise and perform other tasks, such
as, ordering accurately and building neat displays. He builds
leadership in department managers by working through them in
handling the department rank and file employees. This is one
of the most important functions of the departmental merchan-

disers,

Another one of the main functions of the merchandiser
is to be a communicator between the office and the stores.
Many of the retailers think that oral communications is the
"10813 effective and since the merchandiser works in both the
stores and the office, he can be a very important link in
dire ct communications. If the upward communication channel
13 effective, many valuable points of information can be re-
ceived from rank and file employees.

The departmental merchandiser is reSponsible for the
function of research. Most of this research is conducted
either by personal interview or observation methods. BY
Watching both the store employees and the store customer,
the merchandiser can often discover errors that are being
made. Research is nothing more than trying to find out to—
day how to do things better tomorrow, through systematic
gathering, recording and analysis of facts. "Good research

is an ingredient essential to business health. "5 By

\

5William Applebaum, Cozgperative Marketing Research

in t - k t
T \he; Food Distribution Industry (Chicago. Super Mar 6
natitute. 193?. p. 7.

58
analyzing customer habits and actions, the merchandiser can
determine which items people buy and when they buy them.
This information is very helpful in timing advertise-
ment 8 to meet the customer desires. The merchandiser should
also analyze his store personnel by observing their treat-
ment of customers and efficiency in work. Often he can save
the company financial eXpenses by changing an inefficient

work process. Research is one of the most important functions
performed by the merchandising supervisor.

Department stores hire comparison shoppers whose Jobs
consi st of studying and analyzing the competing stores.
Many of the food companies use the departmental merchandisers
to Perform this function. This job consists of going into
the competitors stores and studying their displays, prices,
and Quality of merchandise. They often notice if any of
their customers are buying any of these specials. A study
01‘ thege competitors can serve as a means of obtaining val-
uable information. It can often save a retailer from making
the same mistake as his competitor. There are many consumer
I'“esifiteirch studies being taken every year to help the retailer
to be more able to give the consumer what she wants. An
anallmeis of reports of these studies could add valuable in-
f0Pulaslzion toward meeting the Customers demands.

The merchandiser is also responsible for analyzing
departmental eXpenses to see if they are reasonable or too

h
1gh- The supervisor must discover and eliminate waste

59

expense within his department. - He should make the department
manager conscious of eXpenses and their detriment to the com-
pany. These expenses must be kept at a minimum for efficient
operation and adequate customer service if maximum profit is
to be attained. The use of a departmental merchandiser to
check the eXpenses of each department is very essential in
the food industry today because the net profit for the in-
dustry in 1955 was less than one per cent of sales.

In many food chains the departmental merchandising

Supervisor and department managers are responsible for the

allocation of space for each item. These men review turnover

1f'ecxsrds to determine the right amount of space to be allotted i!
l'

I
4
2.1

for each item. Seasonable items are studied in advance so

that, they can change the space allocation before peak demand.

 

Shelf epace is not allotted on turnover alone, but other

f8L<‘-=tors are considered. Around three-fourths of the items

carried in the modern super market sell less than twenty-four
cans a week. If a strict turnover ratio determined the shelf

Space, then about one-fourth of the items would receive the

mador portion of space. Another significant difference is

found when one item sells in one store and not in another.
Spa-Ge allocation will differ accordingly for each store. As
mentioned earlier. the location of the item greatly influ-

Once 8 turnover. The merchandising supervisor should analyze

all these factors in determining the space allocation for

e .
ve by item in the department.

 

60

Some food chain managements feel that the departmental
merwfliandiser should have some part in determining acceptance
or rwsjection of new items. These advocates think that the
mercruandisers will more likely know what the customers will
buy' trian the buyers and office personnel. Because merchan—
diser-s work in the stores and study customers habits and try
to ffiirnd out their desires, they are in a better position to
Speak from the customers point of view. The following ques-
tiorxs, should be considered before accepting or rejecting

new items:

1. Is it of suitable type for my department or
store?

2. Does it have popular appeal
(a) to the emotions?
(b) to reason?

3. Will it duplicate goods in my present stock
or which I have already ordered?

a. Will my customers be able and willing to
buy it at the price?

Is it a good value at this price?
Does it provide a satisfactory profit?
. Is it properly packaged?

Is it worthy of special promotion and have
I a promotionéplan for it backed by the
manufacturer?

The merchandiser in many food companies functions as
a ESLljpervisor of physical inventories. It is important that

\

Me: 63- Walters, John Wingate, and J. Weiner, Retail
‘BESESflgandising (Cincinnati: South-Western Publishing Com—
“3?. 19317. p. lsu.

 

 

61
the counting and tabulating of physical inventories be done
correctly, because of the great eXpense involved. Some com-
panies use auditors, while others use store personnel to take
physical inventories. No human being is errorless, so a
check can sometimes serve very valuable. The merchandiser

Supervises physical inventories so that he can check on the

accuracy.

Studying Never Ends for the Merchandiser

If the merchandiser is going to obtain maximum success .
in his position, he should continue studying economic condi-
tions, merchandising gimmicks and devices, customer desires,

et cetera. These factors are not static, but change con-

stantly.

 

Although the merchandisers ability to predict or fore—
“381: the future is not as important as his technical and human
abilities, nevertheless, he should study the indicators of
bu‘Siness conditions and be aware of forthcoming changes.
During prosperity, people will buy more luxuries and higher
pr1 ced food then during a recession or depression. The mer-
Chandiser must merchandise according to the madness conditions.

Merchandising gimmicks, tools and machines may change
completely within a year. If the merchandiser Wants to ob-
tain maximum success, he must keep up with his competitors
or better yet, stay ahead of them. By visiting competitor's
Bt'ol‘es and reading current industry literature and by other

sources, the merchandiser can keep up With this dynamic in-

duatry

62
Study should be given to the habits and desires of
custrnners, because if the retailer does not fulfill their
need}; then success cannot be obtained. The consumers are
the Jaife blood of the retailers. Without them, no one could
succeed. The customers that buy in each department in the
store have many different reasons for patronizing a certain
3t01*3 cu'department. The reason may be convenience, price,
serwrixze, a friendly clerk or many others. The motives for
pattworiizing a store do not remain static. The merchandiser

caruicrt make changes in service, quality, et cetera, for a

few: (mistomers. He must cater to the desires of the majority.

Mr. R. O. Eastman, a specialist in investigating
marflierts, figures that a retailer, large or small, should
krunm: about those whom he sells and the field in which he
8€£L]_s:

1. From what sections and from classes does
he derive most of his patronage?

2. What does the town think of his store—~as
to prices-—as to dependability--as to service-—
as to courtesy—-of the salBSpeople?

3. Is his policy making friends or enemies--
attracting trade or driving it away?

b. To what extent are his advertisements read?
To what extent are they believed?

5. What departments are most pOpular and why?
What departments least popular?

6. Are his displays making as good an impression
as those of his competitors?

7. Is his stock arranged as conveniently as his
competitors? Do people have an idea that things
are "easy to find" or'hard to find" in his store?

 

63
8. How many people are there "knocking” his
store because of some particular personal
grievance?
9. How many are there "boosting” his store
because of some particular personal satis-
faction?
10. With how many and what kinds of people is
his store first choice—-the place where they
begin their shopping? With how man is it
the second choice or a last resort?
The merchandiser should study consumers and try to determine
the answers to the above questions. Only then will he be
able tn: fulfill their desires. The merchandiser should study

DGOlee and try to determine their motives for purchasing.
Qualities Necessary for Merchandising Supervision

Since the functions that the merchandising supervisor
performs have been outlined, the problem for management is
“3 distermine who has the Qualifications for this position.

Many retailers think that to be able to do an adequate
30‘) cxf departmental merchandising, a person must have had
some actual exoerience working in that department. The length
or ‘tinne needed to be spent working in the stores to gain this
expel‘ience will vary according to each individualFs ability
to learn.

The person chosen by management to supervise must be

reasonably intelligent. He must have adequate knowledge of

\

 

7Robert Ramsay, Constructive Merchgndising (New York:

D‘ Appleton and Company. 1926). p- 11‘8-

 

64

the merchandising functions, techniques and promotion gim—
micks. He should also know enough psychology so he will be
able to determine why people behave the way they do. Only

by being able to recognize these desires and actions in people
can he satisfy the departments' customers.

Because the merchandiser functions as a trainer, he
should have teaching ability so that his ideas can be clearly
Communicated to the employees.

Along with this teaching ability, the merchandiser
Should have the right attitude toward the company and his
subordinates. He must remember that he is Just one small
assistant in the big organization and that he should function
as an assistant to his. subordinates rather than a boss.

The person chosen to be merchandiser should have a
thorough knowledge of company policies, union contracts and
other. information needed to solve the daily problems that
3P1 as, He should also have a thorough knowledge of federal,
state and local laws. Some communities have outlawed the
use of kites as sales promotion devices and unless the mer-
chandiser knows this, he can cause his company a law suit.

To do an adequate Job the merchandising supervisor.
must be satisfied with his Job. "The man who can so
lfierltify hirself with his company that his greatest satis—

I.‘QLGtion stems from his work will be the best bet for execu-

t 1V8 training. "8

\

h 8Robert Wald and Roy Doty, "The Top Executive--A First-
and Profile," Harvard Business Review,Ju1y—August, 195b, p.16.

 

—.

x?"

 

65
lflr. Wald and Mr. Doty did a comprehensive study of
the background and present characteristics of a group of
highldr successful corporation officers and these are the
Qualities that proved prevelant for executives:
1. Executive has experienced a happy home life
in his earlier years, conducive to the devel-

Opment of security and self-confidence.

2. He is extremely interested in and feels very
much attached to his present family unit.

3. The educational level completed by the
typical executive is far above the average
of the general papulation.

a. He takes full advantage of varied educa—
tional opportunities. '

5. He is an active participant in and leader
of social organizations during childhood
and throughout his career.

6. He is interested in religion as a force
toward developing high moral and ethical
standards.

7. HeiuuieXperienced and continues to eXperience
good health.

8. He is interested in peeple.

9. He possesses very superior mental and
analytical ability.

10. He is serious and conscientious in his
approach to work.

11. He is forceful and intense, actively seeking
new work to be done and new methods of doing it.

12. He is objective in facing his personal problems.

13. He is ambitious and able to identify his ambitions
with those of the company.9

Ibid., 53.

___.. P-

 

 

66
This list of qualities found in present day executives
provides an adequate check list for determining the selection

of a man for merchandising supervision in the food industry.

 

PART III
Utilization of Advertising, Merchandising and Departmental

Merchandising Supervisors by the Small Chains

 

CHAPTER VI
UTILIZATION OF ADVERTISING IN SMALL CHAINS
Use of Advertising by Small Chains

There are so many food outlets across the country and
bflitlhin each division of the country that advertising is nec—
essary for success today. A retailer must tell the customers
Eithatit the merchandise he has to sell and other characteristics
t11£11:*will influence people to visit.his store. The retailers
Questioned by the writer realized the great importance of
advertising. They thought that advertising is the most impor—

t451111: element of sales promotion as shown by Figure I and

Figure II:
FIGURE I
ELEMENTS OF SALES PROMOTION USED
Elements Use(Replies)
Advertising. . . . . 26
Displays. . . . . . 25

Demonstrations. . . . 21
Tie-in Promotions. . . 21
Other—~Stamps . . . . 2

FIGURE II

IMPORTANCE OF ELEMENTS OF SALES PROMOTION
W

 

_‘-‘__¥ Elements lst 2nd 3rd nth 5th
{:51 Vertising 21 5 o o o
D1 splays 5 18 2 o o
Temonstrations O l 10 10 O
Ole—in Promotions 0 O 11 9 l
then-Stamps O 1 0 0 l

”‘
‘\. _ _‘ .. - ____ ‘~.~.--“—.—" ‘ w

‘t

m

68

0f the twenty-six small chains questioned, all of them

use some form of advertising to draw people to their stores

or to sell their store as the place to buy food. Merchan-

d1 sing was considered as a very important element of sales

promotion as twenty—five of them use displays. When the

writer asked these chains to rank these elements in order of
importance, advertising was considered the most important as

shown by Figure II. The reason for this is because no matter

how effectively you merchandise the goods, no profit or sales

can be made unless people come into the stores. Twenty years

ago, the small grocery stores could get along with as few as
f‘12lf‘1:y shoppers a week, but "the modern super market has to
Count on at least 2,000 or 3,000 customers, and there are
many which actually require up to 15,000 customers a week to
make a profit. "1 The increased eXpenses of wages and over-

head have caused the need for greater volume as does the in-

cl‘ease size of the store which calls for larger investments.

Type of Advertising Used by Small Chains

Advertising falls into two classifications depending
uDon its purpose--Institutional and Promotional. The approx—-

1mate percentage of the total advertising budget of the

twe:nty—-six chains is shown by Figure III.

\

 

l
Zimmerman, op. cit., p. 53.

 

69

FIGURE I I I
PROMOTIONAL ADVERTISING

Per Cent Number
of Replies

100 . . . . . 1
95 . . . . . 2

90 . . . . . l

85 . . . . . 2

80 . . . . 2

75 . . 7

7O . l

65 . . . . . o

60 . . . . . 0

55 . . . . . 1

50 . . . . . 1
Below 50 . . . . . 8

0f the twenty-six companies questioned only one used
all of their advertising budget for promotional needs. The
Peeiprocal of the percentage shown in Figure III will give

the approximate percentage of the advertising budget used for

 

institutional purposes. In general, most of the companies
“Be over half of their advertising budget for promotional
advertisements.

Promotional advertisements are used with the main
purpose of selling specific merchandise and creating traffic
1’1 ‘the stores.

Institutional advertisements are used with the main
phrpose of selling the store as the best place to buy food
13t€3nis. Institutional advertising is very important to the
I'etailer. In this type of advertisement, the specific char-

acteristics of the store or chain should be told to the
customers. Institutional advertising tries to get new cus-

tomer-s to replace those lost for Various reasons.

70
Types of Advertising Media Used by Small Chains

To determine the types of advertising media being
used by the small food chains, the writer asked the respon-
dents to check the types used. The list is composed of
many methods of advertising by retailers and is shown in
Figure IV.

FIGURE IV

TYPES OF ADVERTISING MEDIA USED

 

 

 

 

w I: i M..-
Type of Advertising Media Use
—— (Replies;
Dally newSpapers 25
Weekly newspapers 17
Letters (direct mail) 12
P0 Btal cards 6
Ci‘li‘culars, leaflets, booklets 16
Spot broadcasts on radio 21
Spot broadcasts on television 12
Billboards 6
Illuminated store signs 9
isplay signs in stores 11+
glgns on delivery trucks 11
‘8-1" cards 2
Handbnie 6
Ovelty advertising 7
Otion picture theater advertising 1+
lassified advertisements 1+
01“tier 7

‘i

To determine how much each media of advertising was
being used, the writer asked the reSpondents to give the
approximate percentage of the complete publicity budget for

eacm method. The results are shown in Figure V.

71

FIGURE V
PER CENT OF THE PUBLICITY BUDGET

 

 

 

Type of Largest Smallest Average Base
Advertising Media W % % Number

Daily newspapers 95 14.0 66.6 20
Weekly newspapers 40 5.0 18.2 15
Letters (direct mail) 5 1.0 2.1 8
Postal Cards 15 1.0 5.6 1+
Circulars, leaflets, “M

booklets 10 . 5 LL. 2 12
Spot broadcasts on radio 33 2.0 8.3 16
Spot broadcasts on

television 24 2.0 8.9 10
Billboards 5 .25 2.1 3
Illuminated store signs 5 ~ .75 2.14 6
Display signs in stores 10 .50 3.5 9
Signs on delivery trucks 1+ .50 1.5 6
Car cards 0 0 0 0
Handbills 37 l . 0 1h. 3 3
NCDVelty advertising 5 .50 1.7 5
Motion picture theater

advertising 1 . 50 . 7 2
Classified advertise—

ments 1 0 1.0 1
013her 5 1.0 3.1 6

 

m

Many of the respondents checked the types of media
used by their chains, but failed to give the approximate
per- cent of the publicity budget. To get a clear picture
or Figure V the base number column should be checked to see
how many of the respondents stated the approximate percent-
age of their publicity budget.

NewSpapers are still the most widely used advertising
media by retailers because of the number of advantages
offered by newspapers. They give the retailer low cost per

I‘e'aader, extensive market coverage, quick reaponse,

72

flexibility and speed. Newspapers offer the retailers more

aéivantages than any other medium.

The results of the survey show that radio and cir-
cLilars are important advertising mediums to the foodretailen

Fourteen of the twenty-six chains use display signs
it: their stores as a follow-up on advertised items.

From the survey results, car cards, motion picture
'tlieater advertising and postal cards are not widely used by
tile small food chains. The reason for poor use of these
Insathods of advertising is because of the high costxmr-viewer
aJ1d.the inadeQuacy of the audience reached.

From this survey, one can see that retailers feel

that advertising is necessary for their success. Advertising

Should be used by the retailer both to sell goods and to sell
the people on the advantages of the chain or store. The best
Way to accomplish both in the same advertisement is to strive
to make the advertisement reflect the personality of the store.
For example, by using white space, a retailer can reflect the

Wide aisles in the stores. Because of its necessity and im—

po rtance, advertising should be studied and prepared with

c o nsiderable care.

 

CHAPTER VII
UTILIZATION OF MERCHANDISING BY SMALL CHAINS
Use of Displays by Small Chains

As mentioned earlier, the two main elements of mer-
cuisindising are displays and personal selling. The writer
Inizrveyed twenty-six chains to find out if displays were
beiing used by them and if so, what types. The writer asked
trlea respondents to check the types of displays used in their
thanipany and to rank them according to their successfulness.

The results are shown in Figure VI. "“—

 

 

 

 

 

 

 

 

FIGURE VI
TYPES OF DISPLAYS USED
JED: 1 U Success
s ays se
—\ p (Replies) lst 2nd 3rd uth 5th
Regarding Locations

\
Shelf display 26 2 12 7 u 1
End of gondola display 25 22 2 1 o 0
,Table display 18 1 9 8 o o
”1 ndow display 5 0 0 0 0 5
Check out counterdisplay 13 0 2 7 L’ 0

ther o o 0 o o o
_____* Regarding Type and Number of Items
single item display 23 9 9 5 o 0
Related item diaplay 21 8 10 3 o o
ASBortment displays 1“ 3 7 Li 0 0
\

Regarding Method of Presentation

\
Mass displays 23 16 7 o 0 0
Dump displays 2]. 10 ll 0 O O

W

74
The survey shows that the food chain retailers are
very conscious of the importance of displays. Many of them
used several of the preceeding types in their stores. Twenty—-
two of the small chains ranked end of gondola displays as
the most successful type, so the writer concludes that this
has been the best space in the store for diaplays in the
small chains.. Mass presentation is considered more suc-
ce ssful than dump diaplays as shown by the survey. Regarding
the type and number of items presented, food chain retailers
8L1 rveyed thought single item displays more successful than
related or assortment displays. From the results of this
Survey, the most successful display in the small chain is a
Single item presented by the mass method at the end of the
gondola. This conclusion cannot be drawn for the whole in-
duBtry because the individual characteristics of the cus-
tofilers and stores will determine what will be the most suc-

cessful type of disnlay to 1188.
Personal Selling in the Small Food Chains

To determine how much thought the food chain ex—
ec’u‘tives were giving to the element of personal selling in
the stores, the writer asked the respondents if any check
was made to see if the store personnel had read the weekly
advertisements. The results of this question showed that
13W(Entyuone of the twenty-six companies surveyed do check on

store personnel's readership of weekly advertisements.

 

75

To determine who performed the function of checking

on store personnel's readership of the company's weekly ad-
vertisements, the writer asked Who Was responsible. The

result is shown in Figure VII.

FIGURE VII
INDIVIDUALS RESPONSIBLE FOR READERSHIP CHECK
Number
Personnel of Replies
Store Manager . . . . . . . . 18
Department Manager . . . a
Department Supervisors . . . . . 8
Over-all Store Supervisors. . . . 6
Other. . . . . . . 0

Figure VII shows that the small food chains are re-
(U1 iring their store employees to read the advertisements.
The writer believes that one step in personal selling, is
tine reading of the weekly advertisements. This reading
it! helpful for personal selling. The survey showed that
zizyproximately eighty per cent of the stores were requiring
Store personnel to read the weekly advertisements. Many of
time food companies are realizing the importance of personal
selling in the modern food stores.

The store manager is the immediate person respon-
31ble for requiring the store personnel to read store adver-
t1Bements. Many companies listed the store manager along
with another higher executive as responsible for this
function.

Many food chains are missing an opportunity to gain

extra sales by ignoring this important element of

 

 

 

76

Inermhandising. A well informed courteous clerk can render

21 service to customers by giving valuable suggestions ortdts
of' information regarding advertised merchandise. This helps
irl selling the personality of the employees to the customers

so that they may become.friends.
The Importance of Merchandising

Food retailers believe that merchandising is essential
ft>1~ success in the food industry. All of the respondents
Wheated that merchandising was essential for success in the
fo<>d.industry today.

The need for merchandising, presented earlier in this
trieasis will show many of the reasons why this is true. The
Drwotdem facing most food retailer today is how to obtain
better merchandising for greater success. At the Super
Maaifiket Institute convention in 1952, one of the sessions was
Ctsriducted on the subject of "Meeting the Competitive Chal-
J-eTige Through Better Merchandising of Food Departments."
[hllfiing the introductory remarks of Mr. Myer Marcus, hestated:

Better merchandising to my mind has two distinct

facets: better sales, or increased sales, and
better profit margins. I take it most of us today
are more interested in the profit angle. To obtain

increased sales and profits, it is very important1
to have the facts for each individual department.

T 1Myer Marcus, "Meeting the Competitive Challenge
Mflrwaugh Better Merchandising of Food Departments," Super
W Institute, May, 1952, 9. U1.

 

77
Twenty of the small chains surveyed have a merchan~
d1 sing department in their organizations. An organization

ceriart in Chapter VIII will show the members and structure

caf‘ a typical small food chain merchandising department.

“_-_‘

 

flit“

CHAPTER VI I I

UTILIZATION OF DEPARTMENTAL MERCHANDISING
SUPERVISORS BY SMALL FOOD CHAINS

Use of the Departmental Merchandising Supervisor

To discover if managements of small food chains were
using the specialized merchandising supervisor, the writer
Surveyed twenty-six small chains. The small food chains are
using merchandising supervisors in their organizations to
fulfill their goals better. Twenty-Tour of the companies
Bur‘Weyed by the writer are using one or more departmental
me r‘chandising supervisors in their Operations. Only two of
the respondents thought that this position was not needed.

Departmental merchandising supervisors are widely
used in the grocery, meat, produce and frozen food depart-
ment 3, as shown by Figure VIII. The size and importance of
the departments determine whether or not the use of depart-
Inentail merchandising supervisors would be feasible. Just
how large a department must be to warrant the use of this
6pectialist must be determined by each company.

Many companies have further specialized the grocery
merchandisers position to include a supervisor for candy,
drug and non-food items respectively, as shown on the Mer—
ch‘il'ldising Organization Chart. The respondents use of

departmental merchandisers by departments is shoWn in

Figure VIII.

FIGURE VIII

79

USE OF DEPARTMENTAL MERCHANDISING

SUPERVISORS

Department

Non-food. . . . . .
Health and Beauty Aids .
Bakery . . . . . .
Delicatessen .

Frozen Foods .

Cash . . .

Meat . . . . . . .
Produce . . . . .

Grocery . . . . . .
Dairy. . . . . . .
Other. . . . .

In general, the small food chain retailers believe
that the merchandising supervisor should be responsible for 1
merchandising from five to fifteen stores. The merchandiser

spends some of his time in the office too.

Number
of Rgplies
. l
. 13
11
ll
20

5
23
22
23
6

2

 

Many of the small chain executives have placed alimit

on the number of stores assigned to one person to merchandise

because they believe that a better merchandising job cant>e

obtained if responsibility is limited.

The respondents

results to the writer's question on how many stores the

merchandiser supervises is shown in Figure IX.

FIGURE IX

SCOPE OF SUPERVISION

Stores
0 to 5 . . .
5 to 10 . . .
10 to 15 . . .
15 to 20 .

20 to 25 . I I
25 and up . .

Number of Replies

2
10

NHHG)

. J-u—n-

 

80

Position in the Organization

To determine how the departmental merchandising super-
visor functions within the whole organization structure, the
writer asked these questions:

I. Do you use an over—all store supervisor instead
of individual department supervisors?

2. To whom dees this merchandising supervisor report?

3. Over what personnel does this merchandising
supervisor have authority?

The results of these questions are shown in Figures
X, XI, and XII.

Fourteen of the twenty-six companies used both depart—
ment supervisors and over—all store supervisors. Ten of the
companies use only department supervisors and two companies
use only over-all store supervisors. This shows that in a
majority of the small chains, the OVer-all store supervisor

has been given an assistant—-the department supervisor.

FIGURE X

USE OF OVER-ALL STORE

SUPERVISORS
Use Number of Replies

Yes . . . . 2
No . . . . 10
Both . . . . l“
The departmental merchandising supervisors are

striving to obtain success in their respective departments,

regardless of injurious activity to other supervisors. To

81
keep these Supervisors agreeable and functioning properly, a
co-ordinator is needed. The merchandising manager, sales
manager or over-all store supervisor usually functions as
this co-odinator.
FIGURE XI
MERCFARDISING SUPERVISORS IMMEDIATE SUPP RIOR

Superior Number of Rsplie s
Over-all merchandising manager.. . . . 6
Department merchandising manager . . 3
Over-all store supervisor . . . . 9
Sales manager . . . . . 5
Vice president in charge of operations . 1
Other . . . . . . . . . . . . 0

Ten of the companies surveyed stated that the depart—
mental merchandising supervisors have authority over the
store managers. The other fourteen companies stated that
the departmental merchandising supervisorwwas a subordinate
to the store manager. The supervisor is superior to the
department managers and department employees. In general,
the supervisors do not have authority over the advertising
department, the buyers, or the store personnel from other

departments.

FIGURE XII
MERCHANDISING SUPERVISORS AUTHORITY

Personnel Under Merchan-

dising Supervisor Number of Replies
Store manager. . . . . . . . 10
Department manager . .. . . . . 21
All.store employees. . 6
Employees in his specific departmun; 15
Buyers . . . . . 5
Advertising department. . . . . 3

Other . . . . . . . . . 0

82
A merchandising organizational chart for a small food
chain merchandising department is shown on the followingpmge.
This chart shows the position of the departmental merchan-
dising supervisor. Ordinarily, the supervisor reports to a
sales director, over—all store supervisor or some person
who functions as a co-ordinator of the departmental merchan-

diser's acitivities.

Functions Performed by the Department Specialists

Two of the main functions of the merchandiser men—
tioned earlier were to help plan promotions and to co-ordin—
site planned promotions. To substantiate these statements,
tshe writer asked two questions in his survey:

1. Is the departmental merchandising supervisor con—
saidered a co-ordinator between promotions planned in the
cszice and Operations in the stores?

2. Does the merchandising supervisor participate in
Ilromotional meetings?

Twenty-two of the twenty-four companies surveyed,
iaasing departmental merchandising supervisors, stated that
‘tliese were two of the supervisors functions.

To find out what other functions were required of the
Ciéepartmental merchandising supervisors, the writer listed a
1”lumber of tasks and asked the respondents to rank them in
<>Iwier of importance. The results are shown in Figure XIII.

After assigning ten points for a function ranked first, nine

83
CHART I
MERCHANDISING ORGANIZATION CHART

 

Sales Manager

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

_ - F I I

[:_ E— '1‘ I L
Grocery Seafood Meat Produce Advertising
Division Division ivision Division Department

Head Head Head Head
‘,

Grocery Grocery Meat Meat Produce Produce
Buyers Supervisor Buyers Supervisor Buyers Supervisor

 

 

 

 

 

 

 

 

 

 

 

 

[__

 

—[
] l

 

——Dairy
Supervi

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I Drug Cahdy v
sor Supervisor Supervisor “““
Store Managers [ Store Managers]
Department Department
Managers * Managers
Rank and File Rank and File
Employees Employees

 

 

 

 

 

Star Market Company Merchandising Organization

84
for the second, et cetera, the writer arrived at the order
of importance as Judged by the small food chain respondents.

Figure XIII lists the functions in their order of importance.

FIGURE XIII
LIST OF FUNCTIONS PERFORMED BY MERCHANDISER
Number
Function of Replies
Trainer of department managers. . . . 19
Communicator from office to stores . . 17
Planner of promotions with buyers and
advertisers . . . . . . . . . l5
Planner of displays . . . . 16
Analyzer of departmental eXpenses. . . 14
Planner of space allocation for items . 12
Researcher by observation . . . 13
Handler of personnel transfers within
his department . . . . l6
Supervisor of physical inventories . . 14
Analyzer of promotional literature
offered by manufacturers. . . . . 6

Many companies feel that success can be obtained by
merchandising from the customer viewpoint. The writer asked
the small food chain operators if the departmental merchan-
dising supervisors were required to spend a certain amount of
time in the stores to obtain the customer viewpoint.. Twenty
of the companies surveyed stated that their supervisors were
required to spend a certain amount of time in the stores.
This indicates that most of the retailers are giving thought

to this important element of sales promotion.
Why are Retailers Using Departmental Merchandisers

Retailers are using departmental merchandising super-

visors to gain the advantages of specialization. Closer

85
control of employees, better training, and better employee
communicating are a few of these advantages.

The size of the modern super market and the added size
and number of departments within the store have caused a need
for greater specialization. The number of items handled in
the food stores has increased in the last few years. The
number Of employees has increased. The store manager often
has sixty or seventy employees under his supervision. The
departmental merchandisers can help the store managers super-
vise and train the department managers.

The departmental merchandising supervisors are being
used more in the small food chains to accomplish better mer-
chandising. With the large investment that companies must
make in the modern food stores, more people must be attracted
to the stores weekly to achieve the sales objectives necessary
for efficient Operation. Food retailers have found that by
using department merchandising supervisors, better merchan-

dising and more efficient Operations results.

CHAPTER IX
SUMMARY AND CONCLUSION
Advertising

Advertising is an important element of sales promotion
because customers must be attracted to the stores in order to
sell merchandise. In order to succeed, the retailer must ad-
vertise merchandise that meets customers demands.

Adequate merchandising in the stores is essential to
the achievement of maximum benefits from advertising. This
merchandising function is closely related to advertising and 1
is a follow-up on the store's advertisements. Advertising q

tries to tell the customers about the merchandise and mer—

 

chandising presents the goods to the customers. Co-ordination J
of these elements is necessary.

The departmental merchandising supervisor should par-
ticipate in planning advertisements. He observes customer
behavior by working in the stores and is in a position to
present the customer point of view. In order that better co-
ordination of activities can be obtained between the adver-
tising and merchandising personnel, the departmental merchan-
dising supervisor should know the following points about
advertising:

1. The limitations of advertising.

2. The different types of media available and the

advantages and disadvantages of each.

87
3. The importance of emphasizing individual store
characteristics.
A. The importance of determining in advance the
advertising plan.
Advertising is a necessity in the food industry today.
Co-ordination of the activities of the advertising, selling

and merchandising departments is essential for maximum success,
Merchandising

Merchandising is marketing strategy to get the right
product to the right place, in the right quantity and at the
right time. By knowing what the customers want and fulfil-
ling these wants as adequately as possible, the retailer can
obtain effective merchandising.

Merchandising means to make the right decisions on:

. What to merchandise.
, How much to merchandise.

. 1.1th to display the goods.

1
2
3
4. What goods should be displayed in thenear vicinitx

5. What quality of goods are needed.

6. What time should the goods be displayed.

7. At what price should the items be sold.

Many food chain executives believe that merchandising
makes a retailer superior to his competitors. Competition

in the food industry today has created a need for better mer—

chandising. The departmental merchandising supervisor is an

. W“-

.- .

88
important aid to obtaining better merchandising in the food

industry.
Supervision Functions

Supervisors are needed to guide and co-ordinate the
actions of subordinate employees toward the goals of the
business.

The leadership method of getting people to work is
more successful that the boss method. The supervisor should
be a good leader.

NO all—inclusive list of supervision functions can be
outlined by the writer because responsibility will vary from
one company to another. Three of the main supervision
functions are:

1. Training department managers.

2. Communicating from Office to stores.

3. Handling personnel transfers.
Merchandising Functions

The over-all function of the merchandiser is to attain
co—ordination of activities between the advertising, selling
and merchandising departments. The merchandiser strives to
obtain the customer view point and fulfill customer desires
in sales promotion efforts. The merchandiser works in the
stores and the office, and can easily communicate these views

to the advertising and sales promotion executives.

MO" ”4*

89

The merchandiser is responsible for planning displays,
training department managers, researching by Observation and
analyzing competitor's promotions. He also must analyze the
departmental expenses and keep them at a minimum for effic-
ient Operation and adequate customer service.

In the past, the store manager and over-all store
supervisor were responsible for performing these functions.
Management of small food chains today believe that the de-
partmental merchandising supervisor can more adequately per-

form these functions.
The Departmental Merchandising Supervisor

Small chains are increasing the use of the depart-
mental merchandising supervisor in their Operations. The
increase in the size of the food stores and the number'of
employees in each store has created a need for greater
specialization in supervision and merchandising. Management
of food chains believes that merchandising makes the differ-
ence between success or failure and better merchandising can

be obtained by increased specializatiOn.
Conclusions

The writer has tried to validate the feasibility of
the departmental merchandising supervisor in the operations

Of the small chain by showing:

1+.

90
The importance of advertising and the need for
co—ordination of activities between advertising,
selling and merchandising departments.
The importance and need for good merchandising,
which means both personal selling and diaplays.
The importance of the functions performed by the
departmental merchandising supervisor.
The use of the departmental merchandising super—

visors by the small chains.

In the opinion of the writer, the small chains need

the departmental merchandising supervisor to attain maximum

co-ordination of activities.

Better merchandising is essential if the small chains

are to compete successfully with the large chains. The

department specialists in merchandising can facilitate

better merchandising.

BIBLIOGRAPHY

91

BOOKS

Anon. The Development 9: Executive Talent. New York:
American Management Association, 1953.

 

Brewster, Arthur, H. Poliner and R. Ingraham. Introduction
39 Advertising. New York: McGraw-Hill Book Company,
Incorporated, 1947.

 

Edwards, Charles and William Howard. Retail Advertising
and Salgg Promotion. Englewood Cliffs, New Jersey:
Prentice—Hall, Incorporated, 1993.

Hasley, George. Handbook 22 Personnel Management. New York:
Harper and Brothers Company, 1946.

Haywood, Walter. The Retail Handbook. New York: McGraw-
Hill Book Company, Incorporated, 192a,

 

Ramsay, Robert. Constructive Merchandising. New York:
D. Appleton and Company, 1926.

Rowen, Jane and Eloise Blankerty. Profitable Retail Adver-
tising. New York: Ronald Press Company, 1951.

Simmons, Harry. Successfgl Sales Promotion. New York:
Prentice-Hall,”Incorporated, 1951.

Walters, R., John Wingate and J. Weiner. Retail Merchan-
dising. Cincinnati: South-Western Publishing Com—
pany, 1951.

Zimmerman, M. M. The Super Market. New York: McGraw—Hill
Book Company, Incorporated, 1955.

 

PERIODICALS

Anon. "Shglf Extenders Are Tops," Chain Store Age, June,
195 .

Anon. "The Outside View on the Inside Sale," Chain Sgpre
Age, October, 1955.

Beauliew, Robert. "How Champagne Avoids Out-of-Stock,"
Pgogressive Grocer, February, 1956.

England, Wilbur. "Automatic Merchandising," Harvard Business
Review, November-December, 1953.

92

Kline, George. "Nows the Time to Plan Your Christmas Promo—
tions,” Progressive Grocer, November, 1955.

Moore, Karl. "Against Sluggers: Bigger and Better Weapons,"
Journal 2: Retailing, Volume XXVI, Spring, 1950.

Sampson, Robert. "Train Executives While They Work," HarVard

Business Review, November-December, 1953.

Wald, Robert and Roy Doty. "The T0p Executive--A Firsthand
Profile," Harvard Business Review, July-August, 195D.

Zelomeka A- W- "New Opportunities for Distribution,"
Journal 9§_Retailing, Volume XXV, Summer, 19u9.

BULLETINS

Anon. "National Association of Food Chains Agricultural
Program Offers Merchandising 'Natural'," National
Association 23 Food Chains Bulletin, 1955.

Anon. Using Your Promotional Tools More Successfully.
National Retail Dry Goods Association, 1949.

Applebaum, William. Co-Operative Marketing Research in the
Food Distribution Industry. Chicago: Super Market
Institute, 1955.

Axelrod, Irving. N,A,F.C. Advertising and Sales Promotion
Clinic. National Association of Food Chains, 1953.

Bauman,‘ Val. National Association of Food Chains Adver-
tising and Sales Promotion Clinic. National Asso-
ciation of Food Chains, 1953.

Campbell, Willard. "The Merchandiser's Views on Sales Pro-
motion and Display," Using Your Pgomotion Tools More
Successfully. National Retail Dry Goods Association,

19h9.

Ferguson, William. "Effective Training and Development of
People," National Association of Food Chains,
October, l95h.

Flanders, Thomas. "Buying and Receiving,” Meat He-rchandising
and Operations, National Association of Food Chains,

April 3 1953.

’ Y; Z")

 

93

Herron, Robert. "Developing Leaders," How £2_Build g Dis-

tinctive Selli_g Personality, Super Market Institute
Clinic, May, 195“”

Marcus, Myer. "Meeting the Competitive Challenge Through
Better Merchandising of Food Departments,“ Super
Market Institute, May, 1952.

Martin, Charles. "Communications-~the Shortest Distance
Between Top Management and the Customer," How to
Build a Distinctive Selling Personality, SuperMarket
Institute Clinic, May, 1953.

Miller, Gladys. "Don’ t Sell Lamps--Sell Lighting," The
Profitable Merchandising of Home Furnishing, National
Dry Goods Association, March, 1955.

Nigut, Bill. "It Happens to Me," How to Meet the Competitive
Challenge, Super Market Institute Clinic, May, 1952.

 

Phippeny, Roy. ”This is Your Life-~Selling," National
‘gssociation 9:_Food Chains Bulletin, March, 1956.

 

Wagenheim, L. A. "Increased Profits Through Better Sales
Promotion," Advertising and Sales Promotion Clinic,
National Association of Food Chains, January, 1953.

UNPUBLISHED MATERIAL

Berning, Jr., Cletus. "Retail Food Chain Store Supervision."
Unpublished Master's thesis, Michigan State University,

1953.

MICHIG GAN STATE UNIVERSITY LIBRARIES

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