Why is Scrambled Merchandising a Strategy for Retailers?
How does scrambled merchandising benefit retailers in expanding their business offerings?
Understanding Scrambled Merchandising
Benefits of Scrambled Merchandising
The correct answer is option a. In scrambled merchandising, a retailer adds goods and services that may be unrelated to each other and to the firm's original business. This strategy allows retailers to explore new opportunities, reach a wider customer base, and potentially increase profitability.
Expanding Customer Base and Boosting Sales
In scrambled merchandising, retailers can attract a larger customer base by offering a diverse range of products and services that cater to different preferences within the market. By adding various unrelated goods and services to their original offerings, retailers can capture the interest of new customers who may not have been attracted to their core business. This expansion of offerings can also lead to increased sales as customers have more choices to select from.
Example of Scrambled Merchandising
For instance, a bookstore might start selling coffee and pastries, items not related to their primary business of selling books, in an attempt to attract more customers and increase revenue. This diversification allows retailers to tap into different consumer needs and preferences, making their store a one-stop destination for a variety of products.
Conclusion
Scrambled merchandising is a strategic approach that enables retailers to broaden their product offerings and cater to a wider audience. By adding unrelated goods and services to their existing business mix, retailers can differentiate themselves from competitors, attract new customers, and increase sales revenue.