How to Optimize Product Placement and Get the Most Out of In-Store Marketing

It can be very overwhelming to be a consumer in today's world. When shoppers go to the store, they undergo a sensory overload in which hundreds of different sights, sounds and smells seem to be competing for their attention.

Even a simple grocery store run for basics such as milk and bread can become complicated, as people now have a myriad of options from which to choose. Do they want organic and hormone-free? Low-fat or skim? Whole wheat or sprouted grain? Low carb or high fiber?

The options are endless, and in this deluge, it can be very difficult for companies to make their products stand out on the shelves. Staying relevant in this economy is no easy feat, especially when you're competing against hundreds of other brands in-store. Commercials and advertisements only go so far; you also need to maximize your in-store marketing and ensure that shoppers seek out your brand while they're actually in-store.

Luckily, there are several ways that companies can optimize their product placement and catch a shopper's eye. Here's how you can make sure that your brand gets the attention it deserves:

1. Less is sometimes more: Cluttered categories rife with a plethora of SKUs may be ripe for weaning. What if providing shoppers with fewer choices made it easier for them to decide what to buy? Recent research has shown that consumers tend to be paralyzed when they're faced with too many options.

In fact, a study by Columbia University presented people with the opportunity to sample a line of jams in a grocery store. One group of shoppers was presented with a large display to choose from, while the others were presented with a small display. Both groups were given the opportunity to sample the flavors as well as a coupon for purchase. However, only 3 percent of people who stood before the large jam display ended up buying a product, as opposed to 30 percent of people who went to the small display.

In other words, the people who had dozens of jams to choose from simply became too overwhelmed and too anxious to make a firm decision, while the people who had a small selection were more able to make a confident decision about which flavor they desired. Fewer options helped narrow the scope for shoppers and motivate actual purchase.

Strong category leaders can help their retailer partners rationalize their SKU selections, eliminating low performers that waste space and creating a better experience for shoppers. This will also free up space for innovations and more facings that can be used by products.

2. To group is sometimes to distract: A dedicated section that groups similar products as a segment can do a great job at increasing that segment's sales. On the flip side, it can also distract shoppers from the larger aisle and, instead of increasing total aisle sales, it can actually depress them. It's a fine line to walk and one that might take a little trial and error. The challenge is testing until you find the right balance.

3. More sales can come from almost anywhere: The key is to define the right strategy. Is your goal to expand your customer base? If so, then you want to look for ways to bring new shoppers into the fold by increasing penetration with new positioning/value propositions. You can also look for ways to bring in new shoppers by positioning new products that fill white space on the shelf to encourage purchases of additional units.

Is your goal to cross-sell the brand? If so, then you'll want the right adjacencies and to be sure the brand is communicated well by different products in the portfolio. The key is to be clear about your goals from the very beginning so that you can ensure you decide on the right tactic.

The bottom line is that there are many ways to make sure your product leaps off the shelf and gets the attention it deserves. You just have to find the formula and the shelf location that's best for you.

Mark Hardy is the CEO and vice chairman of InContext Solutions, an internet-based market research company that specializes in 3-D virtual store simulation and creation.