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Unit 8: Planograms
5. Market Share Product Placement: Market share product placement plan works on a simple Notes
strategy: A product which generates the maximum revenue for the store should ideally be
placed at a prime location for the customers to notice it and immediately buy it.
6. Margin Product Placement: According to Margin product placement, the more a product
earns profit for the retailer, the better the location it is placed.
Lab Exercise Go to website http://en.wikipedia.org/wiki/Product_placement and gather
more information on product placement or embedded marketing.
Self Assessment
Fill in the blanks:
9. ......................... refers to a technique where the products are placed in a way to immediately
catch the attention of the customers walking into the store.
10. The ......................... placement displays the merchandise on more than one shelf level.
11. According to ......................... of products, the related products or merchandise belonging to
a similar family are stocked at one place together under one common umbrella.
8.4 Implementation and Maintenance of a Planogram
As already explained, a planogram is a visual description, diagram or drawing of a store’s
layout to include placement of particular products and product categories. In order to optimise
shelf layout and receive a return on investment, the planogram should be properly executed and
maintained by staff. Here’s how:
1. Plan plenty of time to setup a new planogram without interruption.
2. Gather cleaning supplies, additional shelving, peg hooks, signage, product, planograms
and any other items needed to begin working. Take these items to the workspace.
3. Each new planogram should begin with a good cleaning of the shelves and fixtures.
Don’t forget the base.
4. Using the planogram, begin setting shelving and peg hooks in the required location.
We read planograms from left to right. Shelves should be worked from bottom to top, left
to right. Pegs should be worked from top to bottom, left to right.
5. If necessary, use the actual product to help determine the exact distance needed between
each facing and/or each SKU.
6. Once the planogram is set, fill each space with the correct product. Additional merchandise
should be kept in the stock room as overstock.
7. Create current shelf labels, signage and any other pricing needed for the newly set section.
8. Zone the finished section by bringing all items forward with labels straight and facing the
customer.
8.4.1 Tips
1. Perform daily store recovery to keep shelves appearing neat and full.
2. Replace any worn labels or signs immediately.
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