Retail Merchandising Experiment 



The merchandising experiment conducted by the Melsen Company 

 had as its object the determination of the effect on sales volxane of 

 increased availability of product and package sizes and in-store adver- 

 tising displays. A total of 12 retail food stores handling frozen shrimp 

 products was selected for the study, with three outlets each located in 

 the metropolitan areas of Mew York, New York; Chicago, Illinois; Harrisburg, 

 Pennsylvania; and VJaterloo, Iowa, 



The period for which sales activity in these stores was studied 

 extended over 6 weeks in the fall of 1955- During the first biweekly 

 interval store operations in connection with the sale of shrimp and shrimp 

 products remained the same as during the period preceding the start of 

 the experiment. Each retailer was requested to stock the items he normally 

 stocked and confine himself to usual promotional activity. During the 

 second biweekly interval the retailer agreed to add new products and 

 package sizes in quantities commensurate with his facilities for stocking 

 and displaying the added items. In the third biweekly interval the re- 

 tailer continued to stock and display the items added during the preced- 

 ing period and was given printed display material to determine the effect 

 of increased promotional activity. He agreed to display the material, 

 which consisted of a window streamer euid a display placard to be placed 

 at or above the freezer compartment, for the remainder of the control 

 period. 



Identical control conditions were applied to all 12 stores. 

 While there was ample evidence that all participating retailers cooperated 

 in the merchandising experiment, the emphasis provided by individual re- 

 tailers in prcmoting shrimp products vs-jried to some extent. In addition, 

 it was noted that several stores had dlffiaHty in obtaining the items 

 they had agreed to stock. This may account for the fact that sales, after 

 promotional activity had been increased, in some instances did not react 

 as favorably as had been expected. 



A certain amount of distortion in the statistics affecting all 

 stores may have been introduced by the circumstance that the third bi- 

 weekly interval included Thanksgiving Day. Since shrimp dishes are not 

 part of the traditional Thanksgiving Day fare, the effect of intensified 

 promotional activity in the last period of the survey probably was 

 understated. 



SuTMiary of Results 



Judging from all appearances the merchandising experiment was 

 a success. Total sales of fresh and frozen shrimp of the 12 stores was 

 62 percent greater in the second 2 weeks than in the first 2 weeks under 

 the impact of more complete stocking of products and package sizes. An 

 additional increase in consumer sales of li; percent was realized during 

 the third biweekly interval when the special promotional material was 

 used, 



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