Экономические науки/6. Маркетинг и менеджмент

Burlitska O. P., Associate Professor

Ternopil State Technical University named by Ivan Pul'uj, Ukraine

THE SPECIFICS OF KIDS’ GOODS MERCHNDISING

Abstract. The article describes the specifics of kids’ goods merchandising and claims that the right promotion and positioning strategy allow to increase sales in a number of market segments providing that the child’s opinion is considered as an opinion of a full family member.

Key words: merchandising, marketing to kids, shelf placement/goods display, store planning, in-store equipment.

I. Introduction. We have chosen marketing to kids as an object of our research given that this area hasn’t been studied enough in Ukraine yet. Managers of Ukrainian companies do not include children into their target audience, because in their opinion purchase decisions are not made by kids. Modern economic theorists and practitioners are addressing the idea of enhancing positive consumer opinion and increasing sales with merchandising. The topic is many-sided and requires a comprehensive study of the theoretical fundamentals and methods of practical implementation, which makes the study relevant and evokes scientific interest.

II. Materials and Methods. In the research we analyze and synthesize views of Ukrainian and foreign economists on retail space optimization, sales increase and in-store sales efficiency, namely A.Wellhoff, J.Masson, C.Esterling, E.Flottman, Kira and Ruben Kanayan, L.Balabanova, V.Fedko etc.

Despite a significant number of merchandising studies in Ukrainian economic literature there are none thorough studies on marketing to kids, in particular those that explore impact of kids’ opinion on developing the range of kids’ products and creation of specialized kids’ stores.

III. Results. Kids’ opinion has become very popular in consumer researches all over the world today. This experience would be useful for Ukrainian companies which increase the range of kids’ products every year. The current situation on Ukrainian market proves that kids’ role has increased over the last years, especially taking into account:

· a growing number of children, i.e. the birth rate is growing despite the demographic decline;

· bigger kids’ consumer basket, which implies income growth and relative economic stability;

· a growing number of kids’ products on our market.

Nowadays children's products can be purchased in specialized kids’ stores or supermarkets and despite the fact that purchase decisions are mostly made by parents one should not underestimate the impact of kids’ opinion.

There are several types of kids’ purchases:

· purchase at child’s request;

· purchase made by children and adults together;

· independent purchase, i.e. for pocket money (psychologists believe children spend their own money much easier than adults);

· family shopping - done by adults under the influence of kids’ opinion.

Parents and children’s store visit is a complicated process for both sides. Most kids agree to go to the store only after their parents promise to buy them a new toy or candy. Parents often take children to the store not thinking that a child might be bored there. In such cases, children quickly get tired and start to act up, thus parents need to choose stores convenient for family shopping. These can be supermarkets that have grocery carts with a child seat or shopping centers that have game rooms where kids can have fun while adults are making purchases. It is very simple and convenient [3, p. 55].

Today parents begin to choose kids’ stores based on convenience for shopping with children, and it is not surprising that one of the competitive advantages of kids’ stores is comfortable and pleasant atmosphere.

Design, colors, music and lighting are very important for kids’ stores since they are supposed to ensure as much comfort for children and adults as possible, and it is very well known that the more time a buyer spends in the store, the more he/she will purchase.

Kids’ stores interior often resembles a fairy tale, where children can feel like a real fairy-tale characters. They want to stay there longer and their parents have an opportunity to have a good look and choose the right products. In most cases, in such stores they play music from cartoons popular among children that affects their mood in a positive way. Kids’ store design should be interesting both for adults and children.

Shopping space planning is equally important in planning kids’ store interior. Seasonal products that can be presented in attractive and interesting way are the best to be placed in the entrance area. For example, those can be air mattresses or balls before summer holidays or Christmas costumes and decorations before the New Year. Toys section is often placed near the entrance as well where the largest number of impulse purchase are made, and can be divided into several zones: toys for children under three years old, toys for boys and girls and educational games and creative products [1, p. 77].

The next section is clothes. It is important that fitting rooms are big enough, because parents often help their children to try the clothes on. Game area can be placed right nearby for little children not to get bored while parents choose the clothes. It is reasonable to place baby food and baby products section at the back side of the store as they are target group’s demand. It is important that a special atmosphere is created there as long as those goods are purchased in a very exciting period of life. The area close to the cash desk is the right place for a variety of products of an impulsive demand, i.e. kids’ cosmetics, books, fairytale characters magnets. Their purchase is caused by the fact that a child is bored to stand in line and he/she wants something to play with.

In kids’ stores great attention should be paid to the display of goods. They cannot block the whole store and to the contrary must attract the attention of a buyer, especially children. For example, children's toys can be used to make an interesting scene that will resemble an episode of a favorite cartoon. Children also enjoy a great deal of large soft toys that ride a merry-go-round and dolls that sleep in cribs. On the one hand it attracts children and adults, and on the other hand it makes the shop’s interior more interesting and bright. Such display of goods is appropriate for shop windows as well.

Toys section in large kids’ stores should be divided into smaller ones with dolls, soft toys, children's furniture, construction sets, cars etc. Such layout develops children’s imagination and prompts to buy different toys. Large and heavy toys are often placed on lower shelves and big soft toys on top shelves. Medium size and price products are placed on kids’ eye level, for it to be comfortable for a child to take a good look of a toy and take it in his/her hands and put it back without parent’s help. It is important that there are not too many toys on shelves so that are visible enough. Often the most expensive toys are placed in the beginning of the store and the most affordable ones in the back of the store. Such layout prompts more expensive purchases, however, to prevent any conflicts expensive products should be first of all well visible to parents, not children.

Layout of toys as a dedicated scene (composition) prompts the purchase of not a single toy but several toys at a time. For example, the Barbie doll is always placed in its furnished house, or next to its car. Thus the doll is usually purchased together with other accessories.

Children's clothing and footwear is divided into two sections: clothing for girls and boys (by age or by purpose). A variety of accessories that attract children a lot, such as umbrellas, purses, handkerchiefs etc., can be laid out there as well. It should be mentioned that segmentation by age in case of children is more important versus adult audience. This is explained by kids’ psychology and their desire to grow up. Most stores visualize age segmentation by color or special in-store equipment [3, p. 77-79].

Baby food is often placed by age groups and that is why it should be laid out thoroughly to avoid any confusion with shoppers. More information about products can be available in special leaflets (product characteristics, cooking instructions for baby meals etc.) the best place for which is on shelves near the advertised product. This helps parents to choose among the variety of goods.

There are special requirements to in-store equipment in kids’ stores. Glass shelves, sharp angles and unstable structures should be avoided. The staff should take care of a little consumer and ensure proper safety in the store. One can not forget about the fact that in-store equipment should be functional and complement the interior.

Today store managers pay a lot of attention to recruitment, especially to recruitment of shop consultants. Their main task is not only to prompt the purchase, but also to be able to provide necessary information to parents. Such help is often required in baby food section. Young parent often have difficulties buying baby food, they can simply not know what is good for their child or get confused because of a big great choice on shelf. In this case they ask a consultant for advice.

The display of kids’ goods in large supermarkets has its own specifics. In multi-storey shopping malls kids’ stores are mostly located on upper floors. This is caused by the fact that the purchase of such products is usually a special-purpose purchase and is planned in advance. In one-storey shopping centers kids’ department is placed according to shoppers’ main route. For example, it can be at the entrance to the supermarket when a shopper can make impulse purchase not thinking too long since his/her basket is still empty. Or parents can buy a new toy for their child to keep him/her from being naughty while walking around the store [1, p. 56].

Specific features of goods display in such stores are:

· kids’ products are not grouped in one area;

· kids’ section mainly includes soft toys, dolls, construction sets, books, etc.

· there is no separate section for children’s clothing. For example, children’s sportswear can be bought in a department of sportswear for adults;

· baby food section is separated from toys section.

In such cases parents need to learn supermarket layout to make planned purchases.

The older the child, the less parents can influence his/her choice. It concerns both consumption of various products and buying more expensive products.

Children often make their own purchases for their pocket money. The amount of money is small, but there is a variety of ways they get it. Money is easy to get for a child, and therefore it is easier for him/her to spend it. Money is a means of satisfying his/her own needs, and its presence means that a child can purchase the thing he/she wants. This may be a yogurt, juice, a chocolate, a chewing gum or chips. Some stores’ experience shows that the proper display of those products can increase sales by 15%.

At kids’ sections, especially those with food, one can often see an advertising hero that encourages children and adults to purchase goods. It brings up an association of what a child has seen and heard on TV and in the store. For example, live "Apple-Zhivchik" offering to try a drink.

Children who learned to read are sensitive to products with "Surprise" tag. They really like to get stickers or construct an interesting toy of different parts. That’s why it is better to place such products kids’ eye level. In most cases such purchases are made to get a "surprise" and not the main product. For example, in case of "Kinder-surprise" the embedded toy is the main desire of a child and a chocolate egg is often given to her parents.

Different promotions are very often in kids sections and children take part in them willingly. The prize is not always of primary importance to a child and they enjoy even a usual trinket. By participating in the promotion a child seeks for recognition from parents and other people.

There are several reasons why children enjoy the promotions:

· that is where they can express themselves - to tell a poem or sing a song, take part in a quiz or draw a picture etc;

· children enjoy the products that can be won.

In supermarkets, where there is no possibility to place a separate section with kids goods, it is appropriate to display them on lower shelves. Unlike adults children make purchase decisions very quickly, so the goods they are interested in can be placed at their eye level. However, those products should not be expensive, as otherwise it can lead to a conflict between children and their parents: the latter can be irritable and the child may start crying.

Apart from main display of children's products in big supermarkets additional large and bright expositions can be made to attract kids’ attention. They are the best to be placed in the entrance or cash desk area. For example, it can be a rack of books or kids’ cosmetics. This option works effectively in the cash desk area.

In large shopping malls one can often find a play room (with rides and toys), a children's café or entertainment clubs etc. This allows parents to make purchases with no worries while their children have fun. It is also reasonable to set up a baby room where babies can be fed and diapered. The classes for expectant mothers and a consulting room for parents are appropriate as well. These simple steps will create a positive impression about the store and improve its image [1, p. 46-48].

Managers of kids’ stores or kids’ sections use various methods to increase the number of purchases. Here are some of them:

· children have opportunity to play with a toy they like - as a result a child is willing to come to the store at least to play which in turn will undoubtedly lead to purchase;

· a balloon with the name of the store on it is handed out to a child. This can be done at the store entrance providing a good mood to the customers or when leaving - a buyer takes this as thanks for the purchase made. In any case, the event would be enjoyable both for children and parents;

· carrying out contests for children. For example, a store can arrange a contest in "Drawing your favorite toy" and the winners would get the toys they had painted;

· tasting of chocolate or sweet drinks - it is a pleasant event both for children and adults;

· arranging various events. Many stores invite clowns or singers to take part in celebration of their anniversaries and entertain children and adults; the customers are also treated with a birthday cake;

· holiday decorations. During the New Year celebrations store windows are decorated with garlands and the New-Year tree is placed in the store;

· placing a mini catwalk at clothing department which makes a process of fitting clothes rather fun pastime for children (girls especially like it).

Children should be the primary target audience for the management of the store while parents should not be left out of attention as well. After all, adults should be pleased with a child's choice, too. It deals with the quality and price of goods and its necessity.

Local kids’ stores should pay more attention to children - parents buy products, but children are the consumers. In most cases the latter influence adults and not vice versa.

Developing a kids’ store or section one should focus on the specifics of children’s perception. The behavior and actions of a child and not parents in the store should be considered.

Children's interest is mobile and short, thus to gain popularity in this segment the producer should be flexible and anticipate market trends, so studying kids’ needs can never be stopped. For this marketing researches are required, i.e. surveys, kids’ focus groups, tests of product, packaging, character names and other elements while developing kids’ brand.

IV. Conclusions. The specifics of merchandising to kids is that stereotypical company standards in goods display should be avoided - goods must be placed on shelf at kids eye level where cheap products or big size products are usually placed today. Existing promotional companies should also consider the specifics of child’s psychology when planning and developing gifts promotions. Proper positioning and promotion strategy will increase sales of goods in many market segments providing that a child’s opinion is considered as an opinion of a full family member. Managers of kids’ stores should remember that a child has his/her own personality even if he/she is little so far.

References:

1. Bozhkova V.V. Merchandising: A study guide / V.V. Bozhkova, Т.О. Bashuk.– Sumy: Commercial Publishing House “Universytetska knyha”, 2007. – 125 p.

2. Kanaian К. Merchandising / К. Kanaian, R. Kanaian – Moscow: R-I-P-holding, 2006. – 256 p.

3. L.V. Balabanova. Merchandising / L.V. Balabanova. – Donetsk: Don-DUET, 2002. – 290 p.