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The Effect Of Merchandising On Food Products In The Romanian Retail Market

Author

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  • Ghassan Shakhshir

    (The Bucharest University of Economic Studies)

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.

Suggested Citation

  • Ghassan Shakhshir, 2017. "The Effect Of Merchandising On Food Products In The Romanian Retail Market," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 841-852, July.
    • Handle: RePEc:ora:journl:v:1:y:2017:i:1:p:841-852
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    File URL: http://anale.steconomiceuoradea.ro/volume/2017/n1/86.pdf
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    References listed on IDEAS

    as
    1. Kusum Ailawadi & Eric Bradlow & Michaela Draganska & Vincent Nijs & Robert Rooderkerk & K. Sudhir & Kenneth Wilbur & Jie Zhang, 2010. "Empirical models of manufacturer-retailer interaction: A review and agenda for future research," Marketing Letters, Springer, vol. 21(3), pages 273-285, September.
    2. Arne Dulsrud & Eivind Jacobsen, 2009. "In-store Marketing as a Mode of Discipline," Journal of Consumer Policy, Springer, vol. 32(3), pages 203-218, September.
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    More about this item

    Keywords

    merchandising; marketing; trade marketing; retail; Romanian market; food;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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