Analysis of under-performing items at dollar general

This is attributed to factors including wrong packaging and pricing in comparison to competing products and wrong placement on the shelves which make it difficult for customers to access them. Besides, there are other external factors that affect the performance of these products such as the weather conditions. Therefore, to improve the sales of these products, this paper recommends that first, Dollar General provides incentives for buying the products, second, conduct more promotions and lastly improve on their strategic location within the shops. Analysis of Under-Performing Items at Dollar General Dollar stores retail chain of stores is a shopper’s attraction especially for low to middle income segments of the American population. Dollar General is one of the pocket friendly retail outlets in the United States.

It is placed in the wrong line in the shelf in the lower isle of shelf that prevents its proper visibility. As a result customers can only purchase items that are in their level or above the shelf and not the below isles (Cooper, 2018). According to Cooper (2018), raisin bran is placed amidst other varieties of cornflakes that are similar in appearance in terms of box sizes, and this tends to develop confusion to customers making their daily purchases. Additionally, the sales performance of dawn anti-bacterial soap has been lagging behind. It is a new entrant in the market in respect to overall visibility to customers. Due to this shortfall, it has greatly contributed to the given items poor performance in the Dollar General stores (Gibson, 2016).

According to Gibson (2016), the whole supply chain and logistical framework requires an overhaul to meet demand. Also, given the logistical challenges in shipment of Angel tissue paper and Palmolive essential cream, it makes their shipments to be late which affects their availability in the store. In the instances that the products are unavailable in the store, or even at times when incomplete deliveries are made the customers in the store prefer alternative brands instead. Therefore, some of the common indicators present include out of stock responses from the associates as shown by the empty shelve space, for raisin bran, large quantities of dawn anti-bacterial soap and Palmolive essential cream in the warehouse storage. As for dawn-antibacterial soap, the team at Dollar General does not follow through with the initial template planograms and visual presentation standards which ought to be in sync with other similar items in the category.

However, in-store advertisement is cognizant with the right messaging for shoppers. They deliver more in terms for sales targets at Dollar General since they are visual representations that engage shoppers actively and hence encourage them to purchase more. They utilize proprietary data from the prospective customers, and therefore connect with shoppers at right time. The messaging from the media is tailored towards thoroughly engaging the shoppers with in-store specials and digital coupons that appear great on all the screens. The performance of the selected items is affected to an extent by the environmental factors. Internal environmental factors in the store could be whether the item should be stored in a cool and dry place, kept refrigerated to keep the freshness or affected by changes in external whether conditions such as rainy season, wet and cold weather.

Firstly, the sales of Angelic tissue paper are not dependent on the environmental factor but only to an extent on the consumption habits and cultural inclinations of the community. Secondly, the usage of dawn-anti bacterial soap could be affected by external weather. In the period of cold weather, most of the buyers regulate the purchasing of soap and other beauty items such as Palmolive cream (Harrauer, 2016). Finally, Dollar General can also offer incentives to customers purchasing the goods to help improve the performance of the goods. According to Bond Brand loyalty, the programs that are loyalty based are a crucial manner in developing and sustaining longer lasting relationships with customers which boost the sales overall. For example, by offering personalized coupons for customers via platforms such as email, or mobile app messaging provide a swift way to get great deals.