Page 174 - DMGT552_VISUAL_MERCHANDISING

Unit 8: Planograms

The results: 47% sales growth for Dunkin’ Donuts, 34% for the overall coffee category Notes
A few months after the reset, J. M. Smucker started analysing the results. “When comparing
sales per store per week before and after the reset, we found a 47% increase for Dunkin’
Donuts, which also resulted in growth for the category,” stated Fording.
A more detailed analysis shows the improvement. The average number of stores out of
stock for Dunkin’ Donuts Original Blend was nearly cut in half, with equally impressive
results for the other product variants. However, it still shows potential. “The Retail
Solutions updated in-stock analysis still highlights a large sales increase potential,” added
Derrenberger. “By further improving in-stock situations, we still have an opportunity of
growing total sales for the Dunkin’ Donuts range by about 10%.”
The results have received executive visibility and the project has been presented in several
occasions to category managers. “With the help and support of Retail Solutions, we were
able to recommend increased space on Dunkin’ Donuts coffee based on real consumer
demand, considering real shelf availability,” summed up Derrenberger. “With a 34%
overall sales growth, the results speak for themselves.”
“These results are indeed very compelling, but one of the most valuable benefits here is
intangible,” stated Fording. “One of our core objectives is to build a relationship with
Food Lion based on our objective analysis of their data that deliver actionable solutions.
The combination of the Food Lion Vendor Pulse program and the analytical and data
management skills brought by Retail Solutions helped provide the tools to build
relationships and achieve business success.”
Questions
1. Analyse the case and interpret it.
2. Write down the case facts.

Source: http://www.retailsolutions.com/pdfs/Retail_Solutions-J.M._Smucker-Case_Study_2009-11.pdf

Self Assessment

Fill in the blanks:
17. Decide what you are making the planogram for, whether for a ............................ or for your
............................
18. Begin by drawing the backdrop, the ............................ or shelf that the items are to go on.
19. Experiment with different ways of ............................ the objects so that they fit as best as
possible and will be easily seen.
20. It is advises to use the ............................ to create the life size display.

8.6 Summary

 Planograms are nothing but diagrams which give the retailer an idea how and where to
place the merchandise to attract the customers into the store.
 A planogram is one of the best merchandising tools for presenting products to the customer.

 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.
 The vertical product placement displays the merchandise on more than one shelf level.

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