Importance of planogram compliance in the unorganized market

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A significant part of the word’s retail market is unorganized in nature. So for retailers it is important to consider the unorganized retail sector. Major problems with the unorganized market are:

  • brand switching is frequent
  • brand loyalty is comparatively less
  • The entry barriers are low so a lot of new brands will enter the market with ease.

In these scenarios, strategies should be framed to attain high sales volume and profit. The best method for this is to influence consumer buying behavior. One of such factors which will influence the consumer buying behavior is merchandising techniques. Planogram is a tool that will help in designing the shelf space and influence consumer buying behavior. When a customer walks into a retail store, the shelf arrangement will influence the purchase decisions the person takes. Planograms are tools that will help retailers and companies to decide the product placement in shelves.

In an unorganized market, there will be many small retailers. There may be general stores, chemists, footwear shops, apparel shops, etc which are owned by individuals. Creating planograms will help in designing what the customers see in your store. Consider an unorganized retail market of FMCG products where the customer has a large variety of products from individual producers rather than manufacturing companies. Variety of products in shelves could distract the customer attention and influence sales. Making use of customer psychology to influence sales is the best option as brand loyalty is less in an unorganized market scenario. Planogram is the best tool to make this happen in an unorganized market. With planogram, the shelf space can be designed in order to capture maximum customers for your products.

If you are planning to design and implement planograms in the retail stores in an unorganized market then you should also take special care to ensure the planograms are implemented without errors. Planograms designed by category managers should be implemented by executional staff in stores without errors. On implementation, errors will destroy the purpose of the planogram itself.  If compliance of planogram is not ensured then stockout, low sales volume, etc will be the result. Stockout issues of products will cause the customers to switch to other brands or stores. So, care should be taken to avoid stockouts by ensuring compliance. Planogram compliance will help the retailers to attract the customers by arranging products in shelf complying with planogram created by professionals. Planogram created by experts has effect only if the shelf space is in compliance with it.

There are various platforms available in the market to ensure compliances. In selecting a platform some factors should be taken into consideration.

  • Compliance platform should be easy to use
  • Cost-effective
  • Capable to specify the problem
  • The option to upload photos of the shelf is available

If there is no compliance management platform then platforms used to keep track of shelf space will be tools like excel, paint or simple reports. These methods are time-consuming and unable to avoid stockout issues. Another problem with these methods is that it is extremely tedious and exhausting for the executional staff. So, using a compliance management system is the easiest way to ensure compliance.

Nexgen POG is an easy, powerful and affordable web-based planogram builder with unlimited licensing. This planogram software has a planogram compliance feature associated with it. The options provided are ticket raising, photo uploading provision, ability to select the shelf which has noncompliance.  

Why wait anymore? 

Register for Free Trial Now! 

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