Product rotation is what? How does the product rotate in the store?

In trade, there are many techniques and mechanisms that are used to increase sales efficiency and maximize profit. One of these methods is called "product rotation". What it is? Let's talk about this phenomenon, its types and methods of application.

Concept of rotation

In our everyday life the word "rotation" came from the Latin language, where it meant "rotation, movement in a circle." Most often we hear about the rotation of staff, ie, the systematic movement of employees, most often the management team, to improve the efficiency of the organization. Also the concept occurs in printing industry, where this term is the principle of the printing machine. In agriculture, rotation is called the replacement of culture in sowing, when in order to increase the efficiency of the use of land, the crops are moved every few years by sectors. Also, she exists in television and radio broadcasting, where they designate the frequency of repetition of a video or a musical composition. Recently in commodity science the term "product rotation" appeared. What is it? This is also a circular movement of goods on shelves or in storage areas. In almost all cases, rotation is associated with the performance of a system, it involves replacing some elements with others to improve the process.

Definition of concept

In the sphere of trade organization and merchandising, the term "product rotation" is used. This is the process of moving goods on the shelves of retail outlets and in the warehouse in order to ensure greater sales efficiency. Only an ignorant observer may think that the goods on the floor stand motionless until the moment of purchase, that it is enough for the seller to arrange them nicely and you can wait for them to be picked up by the buyers. But in fact the goods are in constant motion, and at each stage of this journey the seller pursues the main goal - to minimize costs and increase profits.

Principles of rotation

In a broad sense, product rotation is the replacement of some by others in order to increase sales. The main principle of this action is to stimulate buyers to purchase. That he had confidence in the seller and the desire to purchase goods. Another principle of rotation is the maximum efficiency of using trading and storage facilities. In this case, all the rules for the rotation of goods are reduced to the requirement of mandatory filling of shelves in the outlet. The buyer should have a feeling of excess of goods and a large choice.

Rotation Functions

Product rotation is one of the promotion tools, part of merchandising. Its main purpose and function is to stimulate the buyer to purchase the goods. In order to achieve this goal, rotation should create a feeling for the buyer that the assortment and freshness of the products are constantly updated. There are rules for the layout of goods, which contribute to increased sales. Permutation of goods, features of the calculation help to increase sales. It is peculiar for a person to pay attention to a new one, to experiment with purchases. Moving a product increases its search behavior and also promotes sales. Also rotation allows you to speed up the interchangeability of the assortment, contributes to the rapid disposal of the stale product. Any grocery store knows what problems arise with goods that have expired storage and here one of the sales tools is rotation. Quick sales of goods can accelerate the release of storage space, which also entails minimizing costs. Of course, this method is not a panacea, it has both advantages and disadvantages, but this is one of the effective tools to stimulate sales and optimize costs.

Advantages and disadvantages of rotation

The rotation of the goods is a way of convincing the buyer to make a purchase. Its main advantage is the ability to find the "right" place for the goods on the shelf, which will increase sales. Rotation allows you to combine related products in the trading floor , which also contributes to increased sales. For example, next to the shower gels, you can put scouring pads, body care products, towels. Such a complex will help the buyer make a "package" purchase. This method allows you to take into account the seasonality of goods and expose to more visible places of current goods, which also accelerates the sale of goods. During the rotation, you can conduct analytical studies to assess the effectiveness of certain points in the store and take this into account when making a plan for merchandising. Rotation allows you to more efficiently use trading and storage facilities.

Its drawbacks lie in the fact that it is necessary to conduct it reasonably and reasonably, otherwise the economic effect of such actions can be unpredictable. If you do not take into account the rules of the neighborhood of different groups of goods, you can get a negative sales dynamics. If you do not conduct analysis and monitoring during the rotation, you can also get a negative economic result.

Rotation in the warehouse

The movement of goods at each stage must be subject to general principles of expediency and sales assistance. To do this, the goods are rotated in the warehouse. Its main purpose is to sell goods before the expiry of the storage period. Therefore, there is an immutable rule: the goods that first arrived at the warehouse, should be the first to be put in the trading hall: "first came - first went." Workers of the warehouse should closely monitor the storage of goods and in time to move the stale goods to store shelves. The science of inventory management requires the employee to understand the mechanisms for selling goods and the ability to keep a strict record of the assortment and the terms of storage of each batch of goods.

Today, the formats of stores, in which the goods are stored directly in the trading floor, are becoming widespread. Here, logisticians will need special art in order not to push the goods into the depths of the rack with earlier storage periods, so as not to lead to the need to write it off. The commodity expert must keep track of the terms and in time to take out the goods with the expiring term for a general look, most often for this, a pallet is used, i.e. Exhibiting in the form of a cube or a pyramid of goods in the center of the hall.

Rotation in a trading room

For the effective movement of goods at the point of sale, the coordinated work of the employees of the warehouse and the trading floor is necessary. The company should develop a unified system for marking the goods, a plan for the movement of goods in the warehouse and in the hall. This not only helps to sell products faster, but also simplifies the work for personnel. Thinking about what a product rotation is in a store, you need to remember that this is not a meaningless rearrangement of goods from place to place, but a reasonable movement. First of all, it is justified by the terms of storage of goods.

There is an unshakable rule: the closer the completion of the storage period, the closer to the buyer should be the goods. That is why sellers and merchandisers constantly rearrange the packages with the goods, which will soon be completed in the first row, and fresh goods - in the second and further. At the same time, you can not leave only the old goods on the shelf, hoping that they will buy it and then put it fresh. The psychology of the consumer says that a person is less willing to take the goods from a half-empty shelf. He should have a feeling of recent receipt of products, this causes him to associate with the freshness of the product. The rotation of the goods in the trading floor is also associated with attracting the attention of the buyer. Therefore the merchandiser should think over the calculation, take care of the buyer taking more units of products and choosing the most expensive product.

Types of rotation

Answering the question, what is the rotation of the goods in the store, it is worthwhile to dwell on its varieties. There are several basic types of this procedure.

• Rotation by cost. The most difficult and expensive way of moving goods. The fact is that the layout of the goods is combined with the price variation. So, for example, for a seasonal product, exhibited in the center of the hall, the price can be slightly increased. But you need to carefully monitor the prices of competitors. On the contrary, it is possible to reduce the price for the product for which demand is falling and accompany it with a certain calculation and holding of the action.
• Rotation by number. It is associated with purchases and inventory planning. The purchasing specialist should carefully plan and track the quantity of goods and ensure their systematic movement from the warehouse to the trading floor, and from the suppliers to the warehouses.
• Rotation by shelf life. We have already spoken about this form. In this case, the old product should always get to the buyer ahead of the fresh one.

Rotation strategies

Experts, answering the question, what is the rotation of the goods, note that this is not just a "rotation" of the goods in the store. This is a thorough planning, analysis and thoughtful rearrangements. The commodity expert and the merchandiser must conduct the demand analytics and, in accordance with this, conduct the purchase of goods and their movement in the warehouse. Proper management of purchases and warehousing helps to reduce storage costs and minimize the amount of goods being written-off. To ensure the proper movement of goods in the company, a unified rotation strategy must be developed, which includes logistics solutions, solutions for promotion and merchandising. These strategies can be based on stimulating trial or repeated purchases, using knowledge about consumer psychology, on economic, price mechanisms for stimulating demand.