MKT3610PlanogramsPresenttionBobsilk11182010dacedits v2 from bob

Marketing 3610Retail Merchandising & Buying : 

Marketing 3610Retail Merchandising & Buying Creation of Planograms to Support and Market Your Selected Category Guest Speaker: Mr Robert Silk Wakefern Foods 11/30 OCC 12/01 Union

Welcome !! : 

Welcome !! Bob Silk Non-Perishable Merchandiser Wakefern Food Corporation 1987 – present Operations/Management Foodtown, Acme, Shop-Rite 1971 - 1987 MS Food Marketing 2010 St. Joseph University, Philadelphia, Pa. BA English Education (Secondary) 1975 Kings College, Wilkes-Barre, Pa.

What is a planogram ? : 

What is a planogram ? A planogram is often received before a product reaches a store, and is useful when a retailer wants commodities to have the same look and feel in multiple stores. A CPG manufacturer may release a new suggested planogram with their new product, to show how it relates to existing products in that category. Planograms are used in a variety of retail areas. A planogram defines which product is placed in which area of a shelving unit and with which quantity. The rules and theories for the creation of a planogram are set under the term of merchandising. It is primarily used in the Retail sector. Fast-moving consumer goods organizations and supermarkets largely use text and box based planograms that optimize shelf space, inventory turns, and profit margins.

Pop Tarts Plan-O-Gram : 

Pop Tarts Plan-O-Gram

What is a Planogram ? : 

What is a Planogram ? Remember your planogram always addresses the 5 R’s: Right Product Right Place Right Time Right Price Right Quantity How about a quick review with the class?

Derivative Targets : 

Derivative Targets To communicate how to set the merchandise . To ensure sufficient inventory levels on the shelf or display. To use space effectively whether floor, page or virtual. To facilitate communication of retailer’s brand identity. To assist in the process of mapping a store

Primary Targets : 

Primary Targets Creation of an optimal visual product placement Creation of an optimal commercial product placement The primary targets can be identified as turnover and profit increase.

Visual Product Placement : 

Visual Product Placement Horizontal product placement: To increase the concentration of a customer for a certain article, a multiple horizontal placement side by side of one product is applied. Different researches found that a minimum placement range of one single product is necessary to achieve an increase in customer advertence (depending on the customer distance from the unit). Vertical product placement: A different concept is the vertical product placement. Here one product is placed on more than one shelf level to achieve placement space. Block placement: products which have something in common are placed in a block (brands). This can be done side by side, on top of each other, or centered.

Your Category : 

Your Category Before you begin….. Identify what you are Identify where you belong Does your product clearly fill a need in the category that you plan to place it in ? Is it a major SKU to the segment or part of a lesser sub-category ?

Context & Usage : 

Context & Usage How does the data that you have collected impact the construction and product placement ? “I want to be eye-level….center shelf !!!” Some variables to consider as we move forward…….

Where do I start ? : 

Where do I start ? Footage variables Recomended (“max & min”) Shelving/gondola types (wood or metal) Adjacencies & logical synergies Equipment enhancements (baskets, metro shelves, molding, etc.)

Assortment : 

Assortment Establish the amount of items that will compose your planogram. Be critical and diligent about the “mix.” What is the range of demographics, lifestyle segments and desired price points that best reflect your category ?

Assortment : 

Assortment Balance of National Brands Specialty Brands Private Label items Consider Emerging Trends including Natural, Healthy, Gluten-Free Does your product include Ethnicity? Is your product based on any seasonality ?

Available Footage : 

Available Footage Shelving represents “running feet” Ex. Mouthwash is a Base + 5 shelves The set is 7.5…. 6 shelves x 7.5’ = 45 running feet That is the available merchandising space for you to place all your products !!

Computer Generated Order (CGO) : 

Computer Generated Order (CGO) A basic premise….. What you sell scans at the register… It subtracts from your shelf stock The “set-point” is always more than one shipping unit (or you would be “out-of-stock”) At a certain point, the order automatically generates a replenishment order How does technology change the role of a buyer?

Pack Size (aka “the shipping unit”) : 

Pack Size (aka “the shipping unit”) A most critical component… How many pieces are in each “unit” ,3,6,12, 24, 36 ? The allocation in your planogram must be able to hold more than a shipping unit so as not to create an out-of-stock situation What are customer and financial implications of an out of stock?

Before we begin to merchandise…. : 

Before we begin to merchandise…. Product configuration How high ? How wide ? How deep ? Think about and discuss your proposed SKU selection. For class purposes, we will use the sample planograms. You will need to assume that your working template will be derived from these sample planograms.

Methodology : 

Methodology Establish the size of the set How much is going to fit ? Drill down and review what you perceive to be your final mix. Does it include a realistic Assortment of how you feel your Products should be presented for you to effectively compete in the category ? Are your “Velocity” forecasts realistic to the Category and size of your set?

Methodology : 

Methodology Begin to sequence your products on the shelf so that they best reflect the presentation that you want the consumer to see. Be aware of product configuration and the pack sizes as they are listed in your sample planograms. Your determination of facings should also take into account projected movement (your forecast) Note. Review your Holiday Merchandise Assignment to frame how you are forecasting here.

Methodology : 

Methodology As you lay out your facings, try to think like a consumer and become that shopper. Is the proposed set consumer-friendly ? If you have “niche” or unique items, are they grouped “like with like” and are these easy identifiable in your set to that specific consumer ?

Methodology : 

Methodology What is your decision on Private Label placement ? Compare & save ? How are you addressing price points in placing your product on various shelves ? Is it wise to leave “Promo footage” built into the set ? If so…..why? Where do you want your Products to be placed in the store flow…..why ?

GOOD LUCK !!! : 

GOOD LUCK !!! Remember…. Your planogram is the initial touchpoint for your desired consumer !!!! Food shopping is often a chore for time-starved customers. Be simple…be direct….be logical in your final Category presentation. Remember to make it easy for the customer to buy..which enhances revenue and gross margin

Marketing 3610Retail Merchandising & Buying : 

Marketing 3610Retail Merchandising & Buying Creation of Planograms to Support and Market Your Selected Category Guest Speaker: Mr Robert Silk Wakefern Foods 11/30 OCC 12/01 Union