Planogram guidelines are not always accepted by retailer
Planogram is not properly maintained.
Space Management Program
Acquiring permanent shelf space through space remuneration which strategic goals are:
Competitive advantage in a stable way
Motivation of traders
Dominate the outlet through capturing more shelf space
Building corporate image
Ensuring Product Visibility
More influence on Trade
Space Capturing by Space Management Program Sq. Ft Sq. Ft Sq. Ft Sq. Ft No. of Outlets No. of Outlets No. of Outlets No. of Outlets 2004 2005 2006 2007 2004 2005 2006 2007 48,000 54,304 60,733 64141 4800 5048 5960 6278
Positive influence of SM program
Informed Consumer Choice.
Increasing stock depth
Simplifying Shopping Experience
Corporate image Development.
Negative Impact of SM Program
Greater impact during out of stock
The space fee can make the retailers greedy.
Problems regarding SM program
Unused shelf space & Cost Effectiveness of SM program
Inappropriate forecusting of customer demand & retailer purchasing ability
Acquiring shelf space without space remuneration
Comparative Status between Space & Non Space Outlet Figure 2: Percentage contribution of total SM & Non SM outlet in Savar Figure 1: Percentage of total SM & Non SM outlet in Savar
Generating demand through Display schemes
Display Contests for the top 3 Brands
Display linked Trade Promotion
Impact of display program on Sales Figure 5: Growth Comparison between display outlet & non display outlet
Customized display unit
Acquiring more space
Brand image development
More brand visibility
Trade Perception Regarding Nestle In Store Merchandising Activities
Corporate Image Development
Differentiating outlet by innovative in store merchandising
Enrich the experience of consumers with a mutual benefit of retailers and the company.
Proper forecasting of customer demand for specific outlet.
Facing criteria should be aligned with retailer’s consistent purchasing ability.
Customized & store-specific solutions are needed.
Planogram concept should be made more clarified among merchandisers and retailers.
Greater emphasis to improve merchandiser influence on trade
Maintaining proper stock
Further Study is needed to know the percentage benefits of getting extra facing of specific product.
Focus on SM outlet because there is a huge investment in these outlets.