Philips and James River Roll Out Category Management Systems

HMG Worldwide, New York, has developed category-management systems for two clients that are aimed at maximizing space efficiency and improving cross-merchandising possibilities. The programs were designed for the Automotive Products Division of Philips Lighting Co., and for James River Corp., makers of Dixie brand paper products.The Philips program centers on a shelf-edge interactive computer module. Created by Intermark, a subsidiary of HMG, the computer tells consumers the model number of the lighting product they need and where on the shelf the item is located after the customer punches in the make, model and year of the car."This solves a complex problem for stores," explains Dawn Hanson, a spokeswoman for HMG. It eliminates the need for the bulky reference guide that is cumbersome to use and can be lost or torn. It also reduces the customer's confusion and need for help in finding the proper product. In some cases, it will increase retailers' assortment, she notes, as the computer might otherwise reference a product that the retailer doesn't have in stock.The program was developed to help the Somerset, N.J.-based firm define its products in the department and present a total-category look, says David Horvat, vice president of automotive products. The department features three key sections. The first presents incandescent sealed-beam products, which are now planogrammed in a vertical format instead of horizontal. This was done because these products represent "a dying category," he explains, and this presentation will help the retailer phase out the products as demand weakens in his market. The second category promotes fast-growing halogen headlights, and the third displays miniature lights for various purposes in the car.In addition to the shelf-edge computer, the program features color-coded segmentation strips for increased shoppability. The plastic strips feature the section's bold color as well as information and model numbers for each product. Icons representing each type of item are also used to provide quick product location.In conjunction with the new merchandising system, the packaging on a variety of products is being redesigned to make it more compact, Horvat notes. "The new format allows retailers to either reduce the size of their department or to fit more product into the same amount of space," he says. "We'll be working with each retailer to define what works best for them in terms of assortment and size of department."The program is planned for a rollout that begins this month at R&S stores in New Jersey and New York. The computer component already is available in some stores, including Western Auto and Hi-Lo outlets. Others will be receiving the full program on a gradual basis.The Tabletop Shop program for James River, Richmond, Va., is designed to manage the entire disposable tabletop and countertop category. "This merchandising system attracts the consumer to the section by making it a 'destination' and encourages cross-purchasing and coordination of related products," says HMG's Hanson.The program focuses on front-loaded, gravity-fed metal racks that allow products to be loaded quickly while keeping them organized and facing the customer. The racks are painted white to fade into the background, allowing the colorful paper goods and Dixie name to be prominent.This format achieves a variety of ends, notes Hanson. "It increases visibility for front-facing product, it reduces labor costs by simplifying restocking and housekeeping duties, it increases space efficiency for the entire category, and it increases multiple-purchase sales by clearly communicating a coordinated message at the point-of-sale."The racks were tested in November 1993 in the Northeast and began a nationwide rollout this February starting in the Midwest. The system is being distributed to mass-market retailers.

P2PI MEMBERS

JOIN P2PI

You May Also Like

Vallarta Supermarkets Enhances Store Layouts

Acosta, Pensa Systems Offer At-Shelf Visibility, Data