1.
The Importance Of Product
Placement In the Retail World

2.
 Many consumers that stroll into a retail
store looking to do a little shopping,
really have no idea about the thought
and work that went into the placement
of all the products on the shelves.
 Product placement in retail stores is
about so much more than just what
looks nice where, or what may fit the
best in different areas of the store.

3.
 There is a definite science to placing products in
retail stores, and the better a business is at doing
it, the more sales and more profit they will make.
 It all starts with how the general consumer thinks
and acts when he or she enters a store.

4.
Consumer Behaviour
 Where certain types of items are placed within the store falls right
into how the common consumer thinks and acts. Everyday
items, also know as ‘destination’ items are often placed toward
the interior or back part of a store.
 This way, you and I must pass right by strategically placed
impulse items in order to get to them. This means:
You must pass by scores of other products, increasing the likelihood of
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buying one or more of them.
You will remain the store longer, meaning you’ll be exposed to in-store
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marketing longer.
The store controls what you see and how you see it.
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These factors mean that products, signs, offers and promotions can be
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placed at eye level on the journey back to get those items you went for in
the first place.
It enables the merchandisers and marketers to grab attention and pull the
◦
consumer in, because they know the window is not very big.

5.
Consumer Behaviour
 Precisely where and how a product is positioned on store shelves can either send sales through the roof or make them never
really reach their full potential. Both temporary and permanent displays are often used to divert a consumer’s attention from
his or her original goal.
 Some of the visual product placement techniques retailers use to capitalize on consumer behaviour includes:
Block Placement – this is when items that are related to one another are placed together.
Vertical Placement – this refers to merchandise being displayed on more than one shelf level.
Commercial Placement – items with a higher perceived value are given more desirable shelf position, while items that
don’t add much to the bottom line are given less desirable space.
Margin Product Placement – the more profit an individual item gives the retailer, the better position it will receive.
Market Share Placement – the highest revenue generators are placed in spots that customers can easily find them.
 Some studies suggest that consumers scan shelves from left to right, starting at eye-level first and then working down. Many
savvy merchandisers and retailers will take this into consideration when laying out the product placement for a store.

6.
Planograms
 A planogram is a tool that retailers use to assist in
the merchandising process. Basically, a planogram
is a drawing or visual diagram that details where
every product should be placed inside the store.
 The detail extends to specific departments in the
store, specific aisles and even specific shelves.
 A planogram is created by using software that’s
designed for that specific task.
 A planogram may be very complex or relatively
simple depending on the size of the store and
number of products on the shelves.

7.
Planograms
 Planograms definitely help with the science of
product placement and increasing sales, but they
also have other goals, including:
◦ Improving visual appearance to please customers
◦ Better inventory control and fewer ‘out-of-stocks’
◦ Utilizing every square foot of space to maximize selling
potential
◦ Easier product replenishment

8.
Important Tips
Whether you shell out big bucks for an expensive
planogram, devise a system on your own computer or use a
paper and pen, there are several factors to consider in the art
of product placement. Some important tips to consider are:
◦ When creating your placement strategy, leave enough space for
customers to move through in both directions. Leave space for
carts going both ways if your store uses them.
◦ Make the checkout area and customer service area visible to
customers when they enter the store.

9.
Important Tips
◦ Consider laying out the aisles in a horseshoe pattern, with
in-demand items near the start.
◦ Experiment with placing both high selling items and slower
selling items at eye-level, to see which approach yields
higher overall sales.
◦ Make the lines of sight as uncluttered as possible to help
make the store appear cleaner and deter shoplifting.
◦ Even though it may be tempting, try to avoid overstocking
shelves as it might overwhelm customers.