Annals of the University of Oradea: Economic Science (Jul 2017)
THE EFFECT OF MERCHANDISING ON FOOD PRODUCTS IN THE ROMANIAN RETAIL MARKET
Abstract
The retail market progress in the Romanian market and the massive number of assortments developed by international producers and brand owners has incremented the importance of merchandising and trade marketing compared to advertising and other promotion means, more effective in the past. This article is a literature review on the importance and effect of merchandising in the food retail industry specifically in the Romanian market. The chosen market is significant for the study due to its young nature, international retailers only recently having entered the country. The article analyses the most important factors taken into consideration by international retailers as compared to traditional shops. Each type of format follows its specific strategies in order to push consumers into buying the more profitable or beneficial products. The final part of this paper will analyze the push strategies effect, more specifically the effect of merchandising on sales of a canned food brand in Romania, in the traditional market. All the information presented in the market findings have been taken from secondary sources directly from a food and drinks distribution company located in the Romanian city of Cluj-Napoca. Results will show the strong impact on sales of a three months period of merchandising activities and trade promotions. More interestingly is the fact that many brands have a higher awareness level and still the product with the better presentation on the shelf is chosen. Another significant conclusion is the long term consequence of the merchandising campaign and the benefits of prolonging such direct trade campaigns. This paper contains very useful information for marketing managers, who want to increase the medium and long term awareness and value of their brand while not having a significant budget for advertising and communication, while taking into consideration the sales departments requirements of short term activities in order to increase sales.
