The arrangement of products: why is it needed, and what is the secret of successful placement on a shelf?
It is no secret that the order to arrange products in retail is important. The correct positioning of each SKU allows you to optimize staff performance and improve key business indicators.
Three views on the placement on the shelf
Correct placement of goods on the shelves solves several problems at once: it attracts the customer's attention, increases loyalty, helps to increase sales and allows minimizing out-of-stock.
In addition, each SKU must be available and in its place. But it is not so easy to determine the optimal position of each product on the display cases. Ideal placement is at the intersection of the interests of the supplier, retailer and buyers.
Supplier
For the supplier, the location of the product should solve the main goal - to increase the sales of its products and the share of the presence on the shelf in the network.
Buyer
The main goal of the buyer is to quickly find the product for which he came. At the same time, buyer want to choose from several analogues. People do not always follow a certain brand, they need to satisfy a customer's need. The layout of arrange products should be based on a Consumer Decision Tree, then it will be easy and convenient for visitors to choose the right products from the presented assortment.
For questions regarding the calculation of a Consumer Decision Tree, audit and retail consulting, please contact the Consulting for Retail team write a letter on [email protected] or fill in form.
In addition to the correct display of goods on the shelf, the location of product groups in the store is also important to attract customers. The specialized programs (software) and the drawing up of product placement schemes - planograms helps to effectively manage the assortment of the store.
We invite you to check the business processes of category management: download the MCM checklist and see where and what can be improved.
Retailer
And what does the placement of goods on the shelf mean for a retail network? The retailer must take into account the needs of buyers and suppliers, and at the same time not forget about its profit. It is important to distribute the assortment on the shelves so that the retail space brings maximum benefit.
Simply put, the location of the assortment defines: would a retail be able to increase profits, would a supplier be able to increase the sales of its products and would the consumer be able to find the desired product.
The retailer must place the products as high quality and affordable as possible, so that the consumer, leaving the store, wants to return here for new purchases.
It is very difficult to achieve the most efficient layout, availability of goods (full shelves, no "holes") without specialized software. Automation of shelf and retail space management processes helps to make the path of the product from the manufacturer to the buyer, through the shelf, transparent and controllable.
There are also software solutions for operational management of assortment, automation of warehouse logistics and forecasting demand. Managing these processes well is essential as they are integral parts of the supply chain and affect the layout of arrange products.
Learn more about C4R retail automation solutions from our consultants. To order a callback, write to [email protected] or fill out the form at the link.
How to correctly make arrangement of products?
There are several factors to consider if you want to place products intelligently in a retail network. Here is some of them:
- Visibility - all products should be arranged so that it is convenient to take them off the shelf and the entire assortment should be visible on the shelf.
- Consistency - the principle of displaying a product category in the entire network should be similar. The buyer should easily find the desired product in any store of the trading network.
- Safety - there should be no bulky goods on the upper shelves. In addition, all products should be easily accessible.
- Compatibility - there are certain rules for placing a category: for example, coffee and tea are compatible with confectionery.
- Availability - The shelf should always be full, but not overloaded.
Placement also depends on the shelf life of products, the popularity of brands, seasonality, regional characteristics and other factors. And all this needs to be taken into account by the retailer for a large range of products.
The Consulting for Retail team automates retail processes by implementing IT solutions for the category management of the retail network. Our systems allow you to efficiently manage the most valuable store asset - the physical location for product placement, as well as optimize the space of stores of different formats and locations.
How to manage assortment and the arrangement of products?
The use of IT solutions helps to optimally plan the layout of product categories, manage pricing and assortment, as well as receive up-to-date data and store information from past periods.
The arrangement of products according to the planogram takes into account the principles of merchandising and the Consumer Decision Tree. Working with planograms in special software allows you to speed up and automate the process of making effective decisions on the arrangement of products.
The arrangement of products according to a well-developed planogram allows you to optimally use the store's space, regulate the quantitative placement of products, balance the needs of buyers and suppliers as much as possible, and, as a result, increase the store's profit.
Get more information about C4R solutions for optimizing the arrangement of products from our consultants. For all questions about services retail audit, consulting, and systems for retail automation, write to [email protected] or fill out the form below.
