Category-Driven Merchandiser Sheds Light on Osram Sylvania Bulbs

Marketers at Osram Sylvania Inc. have taken their revamped merchandising system one step further by adding a tiered pricing approach to the category-driven format for their lighting products. A new signage system and packaging graphics help direct customers to the specific product within each family and explain each bulb's applications."Over the last 24 months, we have recategorized our product line to bring our merchandising strategy and packaging in line with applications," says Tim Lesch, vice president of sales for consumer products at the Danvers, Mass.-based company.Initially, the company broke its products into five classifications to reflect the types of applications for which consumers shop for lighting products. Each of these was color-coded to make the distinctions clearer.Now, the company has added a three-tiered pricing strategy to indicate that bulbs within each family have different quality levels. The three levels (Economy, Classic and Value-Added) have different packaging."Basically, we've been taking a hard look at how we go to market with our products," says David Walsh, merchandising specialist. "Rather than grouping the products by technology -- incandescent, halogen, etc. -- we wanted to categorize them the way consumers shop. Now, we want to provide them with a faster method of determining which bulbs provide better energy savings, longer life, and other benefits to better present why they cost more than the basic bulbs."Packaging changes are reflected in overhead signage as well as channel strips, Walsh notes. Each sign indicates the color of the category stocked below. The headers include an example of the type of bulb shelved below as well as its features and benefits.The graphics for these signs were created in-house with the assistance of Swanson Advertising Inc., Salem, N.H., and printed on vinyl substrates by Northstar Print Group, Milwaukee. The organizer, a self-adhesive, dual-channel system produced by New Dimensions Research, Melville, N.Y., has been enhanced with the addition of solid-color channel strips that match the color-coded products.These strips provide space for the retailer's price sticker and bar code as well as a more descriptive explanation of the product, Walsh says. The strip printing was done by Visual Systems Inc., Milwaukee.The system began rolling out to home centers in November and is ongoing, Walsh says.

Category-Driven Merchandiser Sheds Light on Osram Sylvania Bulbs

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