Page 166 - DMGT552_VISUAL_MERCHANDISING

Unit 8: Planograms

Notes
Figure 8.2: Household and Beauty Products’ Shelf Display

Source: http://www.dmsretail.com/retailplanograms.htmsource
Following are the key business benefits of a planogram:
1. Consumer driven store-specific planograms increases value leading to lifetime customer
loyalty.
2. Targeted store-specific planograms lead to maximum in-store compliance resulting in an
accurate understanding of product distribution.
3. Accurate store-specific planograms ensure optimum supply chain efficiency that results in
higher availability to consumers, maximum stock turn and the most efficient use of space.
4. Introducing focused store-specific planograms leads to increased sales and profitability,
reduction in stock and operational costs and an overall improvement in bottom line
contribution.
5. Tailors assortments including product launches and group-specific go-to-market strategies,
so that you can improve cluster results and meet true local demand.
6. Increases movement at full retail value while lowering carrying costs and decreasing
out-of-stocks and excess inventory, so that you can enhance your overall profitability.
7. Streamlines space and floor planning, so that you can increase your space productivity
and optimise your capital investment.
8. Translates merchandising strategy into tactics, so that you can drive consistent store
execution of your corporate strategic and assortment decisions.

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