Planogram compliance plays a significant role in boosting sales in GT and MT. Many FMCG and consumer goods companies execute VM audits to ensure planogram compliance but sadly most of the VM audit processes are lengthy and do not aid the companies to take quick actions. It is due to the disconnection or delayed communication between the company and retailers that may hamper planogram compliance. It is an ongoing challenge to keep the products set in the right shelves. As there is a lack of communication between the product promoters and company, the product promoters may not work efficiently to aid the company’s sales.Īlthough the shelves of the retail stores may be set perfectly according to the planogram initially, it is not surprising that some products may end up in wrong shelves at the end of the day. Some FMCG and consumer goods companies employ product promoters at large format retail stores to promote their products and ensure planogram compliance. Additionally, there can be the worst mistake of placing your expired products in retail stores degrading your company reputation and good will. However, if the execution of planogram compliance is hampered, there can be more cases of stock outs thereby failing to provide the customers of your product at the right time. Inventory management is an essential issue that planograms address.
For instance, your company has designed a planogram to place your product, say Bread at a specific section of the store just beside butter and jam section, the retail store manager may or may not responsibly carry out the instruction leading to the failure of boosting sales through right product placement. Some of the factors that are responsible for failed execution of planogram compliance are as follows.Ī company sends in their planogram to all its retailers but if the retailers are reluctant to follow the instructions, you cannot expect planogram compliance. This happens due to failed planogram compliance. Even though some FMCG and consumer goods companies make excellent planograms, they may not succeed to boost sales of their products, as they may not be placed at the right place or perhaps at the right time (stock outs in stores). Also, positioning the products in the store in such a way that it attracts the attention of the customers. The sole purpose of planogram is to maximize sales by enhancing store appearance. Summary Challenges associated with Planogram compliance
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