Merch Manual UK 8/24/05 9:49 am Page 161. Module 8: Planograms: an introduction

Transcription

1 Merch Manual UK 8/24/05 9:49 am Page 161 Module 8: Planograms: an introduction

2 Merch Manual UK 8/24/05 9:49 am Page 163 Module 8 Contents Retailing in a perfect world and in the real world 8.02 Shelf space management 8.03 Planogramming: basic definitions 8.06 The optimum planogram 8.07 Planogram components 8.10

3 Merch Manual UK 8/24/05 9:49 am Page 164 Retailing in a perfect world... If customers were completely brand-loyal: They would look for a specific product brand and buy it Or, if it was unavailable, they would delay their decision. In such a situation: The location and space allocated to a product would ultimately have no effect on its sales. However 8.01

4 Merch Manual UK 8/24/05 9:49 am Page and in the real world in reality, the majority of customer decisions are made at the point of purchase. This means that in-store factors, such as shelf space allocated to a product, can have a direct influence. Therefore, it makes sense to implement a welldesigned Shelf Space Management system. 8.02

5 Merch Manual UK 8/24/05 9:49 am Page 166 Shelf space management The shelf space management dilemma: Shelf space is a scarce and fixed resource, yet The number of potentially available products is continually increasing! 8.03

6 Merch Manual UK 8/24/05 9:49 am Page 167 Shelf space management So, to manage retail shelf space effectively, it is important to decide: 1. What categories of goods to sell 2. How much space is allocated to each category, and, 3. How the individual products are arranged on the shelves. 8.04

7 Merch Manual UK 8/24/05 9:49 am Page 168 Shelf space management A well-designed Shelf Space Management system allows retailers to: Attract customers Prevent stockouts Increase the financial performance of the store while reducing operational costs. A planogram is a useful tool that can help retailers with Shelf Space Management. 8.05

8 Merch Manual UK 8/24/05 9:49 am Page 169 Planogramming: basic definitions Planogram: a diagram showing how and where merchandise should be placed on retail displays in order to optimise visual attractiveness and increase customer purchases. Planogramming: the key merchandising skill of retail space planning. Planogrammer: a person skilled in planogramming: You, the retailer Your friendly International Paint Salesman. 8.06

9 Merch Manual UK 8/24/05 9:49 am Page 170 The optimum planogram A planogram must consider a number of factors: Agreed product lines all need to be displayed on shelves/suitable retail locations. Product lines must physically fit in/on the retail locations that they are allocated to. Particularly important for paint tins, which must be neither too tall nor too heavy for the allocated shelf space. 8.07

10 Merch Manual UK 8/24/05 9:49 am Page 171 The optimum planogram A planogram must consider a number of factors (continued): Product position on the shelf can also be important. Remember we previously showed how products at eye level tend to sell better than products at, say, floor level. 15 Eye-span range 1.4m 1.4m 1.2m 8.08

11 Merch Manual UK 8/24/05 9:49 am Page 172 The optimum planogram Aisle by aisle, shelf by shelf, a well-thought-out planogram boosts the selling potential of every item in your store. 8.09

12 Merch Manual UK 8/24/05 9:49 am Page 173 Planogram components 1. Visual representation 2. Schematic chart 3. Line listing

13 Merch Manual UK 8/24/05 9:49 am Page 174 Planogram components 1. Visual Representation Gives the planogrammer a clear idea of the retail unit should appear upon completion of the shelf-setting process if the planogram instructions in the following two charts are followed correctly

14 Merch Manual UK 8/24/05 9:49 am Page 175 Planogram components 2. Schematic Chart Coloured-coded per product category to provide the planogrammer with an instant overview of the facings present. Also shows resources needed: How many shelves, peghooks etc. Type and placement of POP. Dimensions: (based on standard 4 width unit): How many shelves per unit? How high and how deep?

15 Merch Manual UK 8/24/05 9:49 am Page 176 Planogram components 3. Line Listing Provides the detailed instruction for setting the retail unit: product codes, sizes, colours, product category and, of course, quantity how deep each facing should be filled with product. 8.13