For new CPG brands, standing out on the shelf and capturing customer attention is challenging yet crucial for success. Effective visual merchandising not only influences purchasing decisions but also shapes brand perception and customer experience. In this guide, we’ll share practical tips and innovative approaches to help emerging CPG brands maximize their impact in stores and online. These insights will guide you toward creating compelling displays that drive sales and foster lasting connections with your audience.

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What is Visual Merchandising?

Visual merchandising for consumer packaged goods involves the strategic presentation of products in retail environments to attract and engage customers, ultimately driving sales. The various techniques and strategies used in visual merchandising help brands differentiate their products from competitors, create a strong brand identity, and increase dwell time both in store and in online shops. Visual merchandising has primarily been a strategy used for physical products in physical stores, though these same techniques have been used for ecommerce brands with great success.

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Challenges of Visual Merchandising for Startup CPG Brands

Breaking into the crowded CPG market is difficult for startups and small businesses. In particular, startup CPG brands face several unique challenges when it comes to visual merchandising. Here are some of the most common challenges.

Limited Budget

Startups often have smaller budgets for marketing and merchandising, making it difficult to invest in high-quality displays, premium shelf space, and advanced technologies.

Brand Recognition

New brands lack the established brand recognition of larger competitors, making it harder to attract customers' attention and build trust quickly.

Shelf Space Competition

Securing prime shelf space can be challenging, as established CPG brands often dominate these areas due to existing relationships with retailers and higher sales volumes.

Resource Constraints

Startups may have limited staff and resources to design, implement, and maintain effective visual merchandising strategies across multiple retail locations.

Retailer Relationships

Building strong relationships with retailers takes time, and new CPG brands may struggle to negotiate favorable terms or gain support for prominent in-store displays.

Data and Insights

Established brands often have access to extensive market research and customer data, which informs their merchandising strategies. Startups may lack this data, making it harder to optimize their displays and placements.

Supply Chain Limitations

Ensuring consistent product availability and timely restocking can be more difficult for startups, which can impact the effectiveness of their visual merchandising efforts.

Adaptability

Startups may need to be more adaptable and willing to experiment with different merchandising strategies to find what works best, which can be resource-intensive and time-consuming.

Regulatory Compliance

Navigating the various regulations and guidelines related to packaging, labeling, and display can be challenging for new brands, especially if they are unfamiliar with the market.

Consumer Trust and Loyalty

Convincing consumers to try a new, unknown brand requires more effort in visual merchandising, as shoppers may be hesitant to switch from trusted brands.

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Essential Elements of Visual Merchandising

The key elements of visual merchandising for CPG brands include various strategies and techniques aimed at enhancing the presentation of products in retail settings to attract and engage customers. Here are the main elements of visual merchandising strategies.

1. Store Layout

Designing the store layout to guide customers through the space in a way that maximizes product exposure and encourages exploration is crucial for effective visual merchandising. Brands should create distinct zones or areas within the store for different product categories or themes, making sure customers can easily navigate and discover a variety of products.

In online stores, the principles of flow and navigation, as well as zoning, are applied through the website’s design and user experience to maximize product exposure and encourage exploration. This involves creating a logical and intuitive layout that guides visitors through different sections of the site, similar to how a physical store is organized.

Learn more: 9 Must-Have E-Commerce Website Features [+ Bonus Tools]

2. Product Placement

Placing high-margin or high-demand products at eye level is a key strategy to increase visibility and sales. Additionally, positioning small, low-cost items near checkout areas is an effective technique to encourage impulse buys.

In the online context, eye-level positioning translates to placing high-margin or high-demand products prominently on key pages of the website, like the homepage or on dedicated landing pages. Impulse buying can be encouraged online by strategically positioning small, low-cost items in areas where customers are likely to make quick purchasing decisions, like in a pop-up or on the cart page.

3. Displays

Crafting eye-catching window displays is essential to draw customers into the store, while utilizing the ends of aisles for promotional or seasonal items helps capture customer attention. Additionally, highlighting new, seasonal, or special products on prominent display units ensures they stand out and attract interest. Eye-catching packaging design is particularly crucial for brands featured in retail environments instead of their own proprietary stores.

For online stores, high-quality product photos and appealing website design are key. Brands might use large, eye-catching banners to highlight promotions, new arrivals, and special offers to attract customers as soon as they land on the site. They might also place featured products at the top of category pages to ensure they are immediately seen by customers browsing specific sections.

4. Lighting

Using focused lighting to highlight specific products or displays, accent lighting plays a crucial role in drawing customer attention to featured items. Ambient lighting helps create a pleasant and inviting atmosphere throughout the store, enhancing the overall shopping experience. Task lighting ensures sufficient illumination in areas where customers need to read labels or make detailed comparisons, aiding in their decision-making process.

5. Color and Design

Utilizing color schemes effectively influences customer behavior and mood by leveraging color psychology. This approach helps create an atmosphere that resonates with shoppers, encouraging them to feel comfortable and engaged while browsing products. Thematic design further enhances the visual appeal of the store by incorporating seasonal or event-based themes. These themes not only add aesthetic interest but also make the shopping experience more relevant and memorable, aligning with current trends or occasions that resonate with customers.

6. Props and Fixtures

Using furniture and fixtures is essential for effectively showcasing products in retail environments. These items should be strategically placed to optimize visibility and accessibility, guiding customers through the store and encouraging product exploration. Additionally, decorative props can enhance the visual appeal and storytelling of displays, creating immersive environments that capture customers' attention and convey the brand's narrative or thematic elements effectively. Together, these elements contribute to a cohesive and engaging shopping experience that reinforces brand identity and encourages purchasing decisions.

7. Texture and Material

Incorporating varied textures is key to adding depth and visual interest to CPG products. Brands can achieve this with both product packaging and displays. Premium and thoughtfully designed packaging materials communicate that the product itself is of a high quality and a worthwhile investment for shoppers. For online consumers, high-quality packaging also reinforces that they made a good purchasing decision with your products.

8. Interactive Elements

Using digital displays involves employing screens or interactive kiosks to deliver dynamic content and detailed product information within retail settings. Interactive display elements like these enhance customer engagement by offering visually compelling presentations and interactive experiences that educate and entertain shoppers. QR codes are another effective tool, allowing customers to scan and access additional information, product reviews, or promotional content directly from their smartphones. Together, these digital solutions enrich the shopping experience, providing customers with convenient access to comprehensive details and enhancing their decision-making process while browsing in-store.

9. Cleanliness and Maintenance

Maintaining tidy displays involves ensuring that all product presentations are organized, clean, and consistently well-stocked. This not only enhances the visual appeal of the retail environment but also makes it easier for customers to locate and examine items of interest. Regularly updating displays is equally crucial to keeping them fresh and engaging. 

Online CPG brands can also benefit from this technique. By periodically refreshing the layout, themes, or featured products, brands can capture customer interest and maintain relevance in line with seasonal trends or promotional campaigns. 

10. Customer Experience

Creating engagement points within the store involves designing specific areas where customers can interact with products directly, like demo areas or tester products in store. These spaces are strategically placed to encourage hands-on exploration and help customers make informed purchasing decisions. 

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Budget-Friendly Visual Merchandising Tips for Startups

For startup CPG brands with limited budgets, here are some budget-friendly visual merchandising tips that can still make a significant impact.

Focus on Product Placement

Utilize existing shelving and displays effectively by strategically placing high-margin or popular products at eye level. Rearrange shelves to highlight key items and ensure they are well-stocked and neatly organized.

Use Creative Signage

Design and print attractive signage in-house or through cost-effective online services to highlight promotions, key features, or product benefits. Simple but eye-catching signage can draw attention without significant expense.

DIY Display Enhancements

Create visually appealing displays using inexpensive materials like cardboard, fabric, or inexpensive props that align with your brand aesthetic. DIY doesn't have to mean low quality—creativity can go a long way.

Maximize Lighting Effectiveness

Adjust existing store lighting to spotlight featured products or key areas. Use affordable LED spotlights or string lights to create a warm ambiance around special displays or seasonal items.

Utilize Social Media and Digital Tools

Leverage free or low-cost social media platforms to showcase your products creatively. Use high-quality images, engaging captions, and hashtags to attract online shoppers and drive traffic to your store or website.

Collaborate with Retailers

Work closely with retailers to negotiate advantageous display spaces or joint promotional opportunities. This can include cross-merchandising with complementary products to increase visibility and appeal.

Rotate and Refresh Displays Regularly

Keep your displays dynamic and interesting by rotating products and themes regularly. This keeps the shopping experience fresh for returning customers and encourages them to explore new offerings.

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Measuring the Success of Visual Merchandising Efforts

You can measure the success of visual merchandising efforts by assessing various metrics and indicators to gauge their impact on sales, customer engagement, and overall brand perception. Here are several methods to measure the effectiveness of your visual merchandising.

Sales Data

Track sales performance before and after implementing visual merchandising changes. Compare sales figures of promoted products or featured displays to assess if there's been an increase in purchases.

Customer Footfall and Dwell Time

Monitor foot traffic patterns and how long customers spend in specific areas of the store. Increased dwell time near featured displays or products indicates that visual merchandising is attracting attention.

Conversion Rates

Calculate conversion rates by comparing the number of customers who make a purchase versus the total number of visitors. Higher conversion rates around well-merchandised displays suggest effectiveness.

Customer Feedback

Gather direct feedback from customers through surveys, social media, or in-store interactions. Ask about their impressions of the displays, whether they found them engaging, and if they were influenced to make a purchase.

Inventory Turnover

Monitor inventory turnover rates for products featured in prominent displays. Higher sell-through rates indicate that visual merchandising is helping to move products off the shelves more quickly.

Return on Investment (ROI)

Calculate the ROI by comparing the cost of implementing visual merchandising strategies to the increase in sales or profitability generated. This helps determine the cost-effectiveness of your efforts.

Competitive Analysis

Compare your visual merchandising strategies with competitors in the same market segment. Analyze their approaches and outcomes to identify areas for improvement or differentiation.

Brand Perception

Assess how your visual merchandising influences brand perception and customer loyalty. Look for changes in brand awareness, customer satisfaction scores, and repeat business as indicators of success.

A/B Testing

Conduct A/B testing by implementing different visual merchandising strategies in different store locations or at different times. Compare results to identify which approaches yield better outcomes.

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Mastering Visual Merchandising

Effective visual merchandising is not just about aesthetics; it's a powerful tool for CPG brands to enhance customer engagement, drive sales, and build brand loyalty. By strategically designing store layouts, using creative displays, and leveraging consumer psychology, brands can create compelling shopping experiences that resonate with their target audience. 

Whether you're a startup looking to make a mark or an established brand aiming to refresh your retail strategy, investing in thoughtful visual merchandising pays off. Ready to elevate your retail presence? The Grappos Product Locator works to bridge online and in-store sales for CPG brands and helps improve the customer experience, ultimately boosting customer loyalty and sales. Request a demo today and transform your CPG marketing strategy.

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