The document discusses store planning and visual merchandising. It defines key terms like planograms, which are diagrams that show how to place retail products on shelves to maximize sales. Good store design gets customers in and encourages purchases by exposing them to merchandise in an orderly way. Locating departments strategically and using features areas like end caps are also discussed. The document provides examples of fixture types used to display products and best practices for creating and implementing planograms.
The document discusses store planning and visual merchandising. It defines key terms like planograms, which are diagrams that show how to place retail products on shelves to maximize sales. Good store design gets customers in and encourages purchases by exposing them to merchandise in an orderly way. Locating departments strategically and using features areas like end caps are also discussed. The document provides examples of fixture types used to display products and best practices for creating and implementing planograms.
Submitted to Submitted By Prof. Ruchika Adarsh singh FMS Arun Solanki Dixit Verma Sachin Kumar Rakesh Kumar M.F.M II
Shopper found dead in local store; cause of death boredom
Stanley Marcus, Chairman-Emeritus, Neiman Marcus No other variable in the retailing mix influences the consumers initial perceptions of a bricks & mortar retailer as much as the store itself.
The store is where the action is and includes such minor details as the placement of the merchandise. Objectives of the Store Environment Get customers into the store (store image)
Serves a critical role in the store selection process
Important criteria include cleanliness, labeled prices, accurate and pleasant checkout clerks, and well-stocked shelves
The store itself makes the most significant and last impression
Once they are inside the store, convert them into customers buying merchandise (space productivity)
The more merchandise customers are exposed to that is presented in an orderly manner, the more they tend to buy
Retailers focusing more attention on in-store marketing marketing dollars spent in the store, in the form of store design, merchandise presentation, visual displays, and in-store promotions, should lead to greater sales and profits (bottom line: it is easier to get a consumer in your store to buy more merchandise than planned than to get a new consumer to come into your store) Objectives of Good Store Design Design should:
be consistent with image and strategy positively influence consumer behavior consider costs versus value be flexible recognize the needs of the disabled The Americans with Disabilities Act Types of Floor Space in Store Back Room receiving area, stockroom Department stores (50%) Small specialty and convenience stores (10%) General merchandise stores (15-20%)
Offices and Other Functional Space employee break room, store offices, cash office, restrooms
Aisles, Service Areas and Other Non-Selling Areas Moving shoppers through the store, dressing rooms, layaway areas, service desks, customer service facilities
Merchandise Space Floor Wall
Plano-gram
A planogram is a diagram that shows how and where specific retail products should be placed on retail shelves or displays in order to increase customer purchases. Planogramming is a skill used in merchandising and retail space planning. A person with this skill is be referred to as a planogrammer. Planograms themselves are also referred to as POGs. Planogram components are often included in large space planning and retail space management software applications. Sophisticated applications use other information about the product, such as the amount of inventory left for the product, to build the diagram.
About Planograms Understanding the Retail Planogram
The planogram is a visual diagram, or drawing, that provides in detail where every product in a retail store should be placed. These schematics not only present a flow chart for the particular merchandise departments within a store layout but also show on which aisle and on what shelf an item is located. A planogram should also illustrate how many facings are allocated for each SKU. The complexity of a planogram may vary by the size of the store, the software used to create the planogram and the need of the retailer. Planograms can be as simple as a photo of a preset section or more detailed with numbered peg holes and shelf notches showing exact placement of each item.
Creation of Planograms
Big box stores and larger retailers typically hire merchandising specialists to assist in developing planograms or they may have their own in-house planogrammers. Due to the hefty price tag of most planogram software, small and independent retailers often resort to using word processors or paper and pen to optimize shelf layout. As competition increases, we're seeing vendors and distributors becoming more aware of the importance of correctly merchandising their products. That awareness is leading to better point-of-sale displays, planograms and other marketing aids provided to retailers directly from the suppliers at no cost.
Planogram Purpose
Any good retailer realizes the key to increased sales is through proper merchandising. A planogram is one of the best merchandising tools for presenting products to the customer. If you aren't using planograms, it may be time to start.
Product placement and improved sales are just two very basic reasons a retailer should be implementing planograms in their shops. Planograms provide many other positive benefits, such as: Assigned selling potential to every square foot of space Satisfying customers with a better visual appeal Tighter inventory control and reduction of out-of-stocks Easier product replenishment for staff Better related product positioning Effective communication tool for staff-produced displays
Planogram layout 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 optimize shelf layout and receive a return on investment, the planogram should be properly executed and maintained by staff.
Here's How
Plan plenty of time to setup a new planogram without interruption. Gather cleaning supplies, additional shelving, peg hooks, signage, product, planograms and any other items needed to begin working. Take these items to the workspace. Each new planogram should begin with a good cleaning of the shelves and fixtures. Don't forget the base. 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. If necessary, use the actual product to help determine the exact distance needed between each facing and/or each SKU. Once the planogram is set, fill each space with the correct product. Additional merchandise should be kept in the stock room as overstock. Create current shelf labels, signage and any other pricing needed for the newly set section.
Planograms for retail Planograms differ significantly by 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. Apparel brands and retailers are more focused on presentation and use pictorial planograms that illustrate "the look" and also identify each product
Best Practices
Identify the purpose. Decide what you are making the planogram for, whether for a store or for your home. Also, decide what will be going on the shelves or display you are outlining. Set the scene. Begin by drawing the backdrop, the display case or shelf that the items are to go on. Draw it as accurately as possible so it can be used literally as instructions for organizing your shelves. Organize the items. Decide where you want the products or items to go using shapes that share the actual items dimensions and form. Experiment with different ways of arranging the objects so that they fit as best as possible and will be easily seen. Add visuals. Although optional, using pictorial representations of the objects will give you the complete feel of what you've arranged. It will also allow anyone you share it with to imagine the display. Use it. Now that you've completed your planogram, use the diagram to create the life size display. Since all of your dimensions are accurate, you should not have to worry about whether or not everything will fit as you envisioned it; you know it will all fit together perfectly.
Location of Departments Relative location advantages
Impulse products
Demand/destination areas
Seasonal needs
Physical characteristics of merchandise
Adjacent departments
Feature Areas The areas within a store designed to get the customers attention which include:
End caps displays located at the end of the aisles Promotional aisle/area Freestanding fixtures Windows Walls Point-of-sale (POS) displays/areas Fixture Types Straight Rack long pipe suspended with supports to the floor or attached to a wall
Gondola large base with a vertical spine or wall fitted with sockets or notches into which a variety of shelves, peg hooks, bins, baskets and other hardware can be inserted.
Four-way Fixture two crossbars that sit perpendicular to each other on a pedestal
Round Rack round fixture that sits on pedestal
Other common fixtures: tables, large bins, flat-based decks
Fixture Types Wall Fixtures To make stores wall merchandisable, wall usually covered with a skin that is fitted with vertical columns of notches similar to those on a gondola, into which a variety of hardware can be inserted Can be merchandised much higher than floor fixtures (max of 42 on floor for round racks on wall can be as high as 72 Merchandise Display Planning Shelving flexible, easy to maintain
Hanging
Pegging small rods inserted into gondolas or wall systems can be labor intensive to display/maintain but gives neat/orderly appearance
Folding for softlines can be folded and stacked on shelves or tables - creates high fashion image
Stacking for large hardlines can be stacked on shelves, base decks of gondolas or flats easy to maintain and gives image of high volume and low price
Dumping large quantities of small merchandise can be dumped into baskets or bins highly effective for softlines (socks, wash cloths) or hardlines (batteries, candy, grocery products) creates high volume, low cost image Three Psychological Factors to Consider in Merchandising Stores Value/fashion image Trendy, exclusive, pricy vs. value-oriented
Angles and Sightlines Customers view store at 45 degree angles from the path they travel as they move through the store Most stores set up at right angles because its easier and consumes less space
Vertical color blocking Merchandise should be displayed in vertical bands of color wherever possible will be viewed as rainbow of colors if each item displayed vertically by color Creates strong visual effect that shoppers are exposed to more merchandise (which increases sales) POS Displays Assortment display open and closed assortment
Theme-setting display
Ensemble display
Rack display
Case display
Cut case
Dump bin Visual Merchandising The artistic display of merchandise and theatrical props used as scene-setting decoration in the store
Several key characteristics Not associated with shop-able fixture but located as a focal point or other area remote from the on-shelf merchandising (and perhaps out of the reach of customers) Use of props and elements in addition to merchandise visuals dont always include merchandise; may just be interesting display of items related to merchandise or to mood retailer wishes to create Visuals should incorporate relevant merchandise to be most effective Retailers should make sure displays dont create walls that make it difficult for shoppers to reach other areas of the store Storefront Design Storefronts must: Clearly identify the name and general nature of the store Give some hint as to the merchandise inside Includes all exterior signage In many cases includes store windows an advertising medium for the store window displays should be changed often, be fun/exciting, and reflect merchandise offered inside Atmospherics The design of an environment via:
visual communications lighting color sound scent
to stimulate customers perceptual and emotional responses and ultimately influence their purchase behavior Visual Communications Name, logo and retail identity
Institutional signage
Directional, departmental and category signage
Point-of-Sale (POS) Signage
Lifestyle Graphics Visual Communications Coordinate signs and graphics with stores image Inform the customer Use signs and graphics as props Keep signs and graphics fresh Limit sign copy Use appropriate typefaces on signs Create theatrical effects Lighting Important but often overlooked element in successful store design
Highlight merchandise
Capture a mood
Level of light can make a difference Blockbuster Fashion Departments
Color Can influence behavior
Warm colors increase blood pressure, respiratory rate and other physiological responses attract customers and gain attention but can also be distracting
Cool colors are relaxing, peaceful, calm and pleasant effective for retailers selling anxiety-causing products Sound & Scent Sound Music viewed as valuable marketing tool Often customized to customer demographics - AIE Can use volume and tempo for crowd control
Scent Smell has a large impact on our emotions Victoria Secret, The Magic Kingdom, The Knot Shop Can be administered through time release atomizers or via fragrance- soaked pellets placed on light fixtures