Page 169 - DMGT552_VISUAL_MERCHANDISING

Visual Merchandising

Notes Although space-allocation systems have resulted in retailers using space in a much more
productive way, they do have limitations. Most large multiple retailers have a portfolio
of stores that differ in size and shape, and so unless that retailer has access to individual
store input data and the system is capable of producing customised plans for each store,
the planogram will have to be subject to a certain degree of interpretation at store level.
Many retailers have tackled this problem by grading their stores by size and producing a
set of plans for the different store grades. However, grading by size is a very crude
method of assessing different stores. Recent advances in micro-marketing have shown
that the profile of a store’s catchment area gives a better indication of the type and amount
of merchandise required than the size of the outlet (Ziliani, 2000). As retail management-
information systems become increasingly sophisticated, this type of store performance
analysis and customer-profile customisation will become more widespread. Space
allocation systems are expensive, and may be beyond the means of the smaller retail
organisation.

Self Assessment

State whether the following statements are true or false:

6. Planogram is a good way of communicating how displays are to be done.
7. Consumer driven store-specific planograms decreases value leading to lifetime customer
loyalty.

8. Targeted store-specific planograms lead to maximum in-store compliance resulting in an
accurate understanding of product distribution.

8.3 Types of Merchandise Placement

Merchandise placement is nothing but visual product placement. Visual Product Placement
refers to a technique where the products are placed in a way to immediately catch the attention
of the customers walking into the store.

Task Try to make a difference between product integration and product placement.
Illustrate with suitable examples.

8.3.1 Types of Visual Product Placement

1. Horizontal Product Placement: According to horizontal product placement, products are
placed side by side on shelves to offer a wide range of options to the customers.
2. Vertical Product Placement: The vertical product placement displays the merchandise on
more than one shelf level.
3. Block Placement: According to block placement of products, the related products or
merchandise belonging to a similar family are stocked at one place together under one
common umbrella.
4. Commercial Product Placement: Commercial product placement takes into account the
brand value of the merchandise. Every customer has a perceived image of the merchandise
which decides its placement in the store. A product which has several takers would definitely
get the best position as compared to something which does not contribute much to the
revenue of the store.

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