Upload
santhi-deepu
View
250
Download
0
Embed Size (px)
Citation preview
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 1/88
SPACEPLANNING
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 2/88
Planners and Buyers must answer four
questions:
•What items, vendors, categories and departments should be carried?
•How much of each item should be carried?
•How much space should the merchandise take?
•Where should the merchandise be located?
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 3/88
Store planners in conjunction with Buyers
start by allocating space based on sales
productivity.
e.g. if knits represent 15% sales, they should
get 15% space.
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 4/88
The store planners must adjust the initial estimate on the basis
of the following Five factors.
•How profitable is the merchandise?
•How will the planned inventory turnover and the resulting stock to
sales ratio affect how many SKUs will normally be carried in stock?
-Allocate space on the basis of seasonal needs rather than yearly averages
-Proportion of merchandise on display vs back-up stock
•How will the merchandise be displayed?
-merchandise and fixtures go hand in hand. Store planners design fixtures to
go with the merchandise. But once the fixtures are in store, buyers must
consider the fixture’s physical limitations on assigning space tomerchandise.
•Will the location of certain merchandise draw the customer through
the store, thus facilitating purchases?
•What items does the retailer wish to emphasize?
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 5/88
Evaluating a Department Layout
Trackers follow shoppers and note everything they do on atrack sheet. They also make inferences on consumerbehaviour based on what they have observed.
• Avoid the butt-brush effect: was discovered at New York City’s Bloomingdale’s. The researchers taped shoppersattempting to reach the tie rack while negotiating an
entrance during busy times. They noticed that after beingbumped once or twice most shoppers abandoned theirsearch for neckwear.
The conclusion: shopper’s don’t like to shop when theirpersonal space is invaded.
•Place merchandise where customers can readilyaccess it:
• Allow a transition zone: allowing some space betweenthe entrance of a store and a product gives it more time in
the shopper’s eye as he or she approaches it.
butt-brush effect
transition zone
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 6/88
Merchandising Presentation Techniques
• Idea Oriented Presentation- overall image or idea, e.g. furniture,women’s fashions.
• Style/Item Presentation- when customers look for a particulartype of merchandise, they expect to find all items in the samelocation.
• Colour Presentation- based on colour.
• Price Lining- organizing merchandise in price categories or pricelining (when retailers -offer a limited number of pre-determinedprice points within a classification). Helps customers easily findmerchandise at the price they wish to pay.
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 7/88
• Vertical Merchandising- customers shop as they read newspaper – from left to right , going down column, top to bottom. Stores caneffectively organize merchandise to follow the eye’s natural movement.
•Tonnage Merchandising- large quantities of merchandise aredisplayed together. Tonnage is equated with low price. “stock is high, letit fly” Used to reinforce a store’s price image. Merchandise itself is display.
•Frontage Presentation- method of displaying merchandise in whichthe retailer exposes as much of the product as possible to catch thecustomer’s eye.
•Fixtures• Visual Communications
•Lighting•Colour•Music•Scent
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 8/88
Store Planning
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 9/88
Elements That Compose the Store Environment
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 10/88
Introduction to Store Layout Management
• Space productivity:
Represents how effectively the retailer utilizes
its space and is usually measured by sales per
square foot of selling space or gross margins
per square foot of selling space.
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 11/88
Store Planning
• Allocating Space
• Circulation
• Layout• Shrinkage Prevention
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 12/88
Non - Selling Space
Back RoomOffices and FunctionalSpace
Aisles, Service Areas
Selling SpaceFloor SpaceFixturesWalls
End CapsCheckouts
Store Planning - Allocating
Space
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 13/88
General InteriorFlooringColors
LightingScentsSoundsStore fixturesWall texturesTemperature
Aisle spaceDressing facilitiesIn-store transportation (elevator, escalator,stairs)Dead areasPersonnel
MerchandisePrice levelsDisplaysTechnologyStore cleanliness
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 14/88
Store Layouts
• Floor plan:
Is a schematic that shows where merchandise
and customer service departments are
located, how customers circulate through the
store, and how much space is dedicated to
each department.
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 15/88
Store Layouts
• Influenced by product assortment (depth and
width)
• Constrained by size and structure of store
• Determined by fixturing
• Objective: to move customers to every area of
store
• Trend towards more spacious and airy layouts
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 16/88
STORE LAYOUT, DISPLAYS AND SPACE
ALLOCATION
• Concerns product adjacencies and flow
• Must provide customer logic
• VM can encourage
– trading up
– multiple complementary purchases
– impulse purchases• Manipulation of the customer or providing a
retail service?
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 17/88
High traffic & highly visible areas
– Entrances, escalators, check-out area, end aisles, featureareas
Profitability of merchandise Private brand, higher margin categories
Customer buying considerations Impulse products near front
Demand/destination areas in back, off the beaten path
Physical characteristics of product Bulky vs. small/easily stolen
Complementary products should be adjacent
Sales rate Display more units of fast-selling merchandise (tonnage merchandising
Space Planning Considerations
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 18/88
Store Layouts
• Circulation
–Free Flow
–Grid
–Loop/ Racetrack
–Spine
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 19/88
Store Layouts
• Free-flow layout:
Is a type of store layout in which
fixtures and merchandise aregrouped into free-flowing patterns
on the sales floor.
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 20/88
Free-Flow Layout
+ Aesthetically
pleasing, relaxing,asymmetrical, invitesbrowsing
- Less efficient, morecostly, more salesassistance needed,more theft
Fixtures
• Bulk-of-stock -straight racks,gondolas,rounders (very
flexible)• Feature – glasscases, 4-way,free-standing,custom-builtfixtures
Feature areas
Windows, walls,feature fixtures,point-of-sale
Feature area arearea designed toget thecustomer'sattention thatincludes end
caps,promotionalaisles or areas,freestandingfixtures andmannequins thatintroduce a softgoodsdepartment,windows, and
point-of-saleareas.
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 21/88
Opposite of grid layout.
Ease of customer movement.
– Must provide enough room between fixtures.
Fixtures arranged in interesting formations
– Encourages browsing.
Free-Flow Layouts
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 22/88
Free-Form Layout
Storage, Receiving, Marketing
Underwear Dressing Rooms
Checkout counter
ClearanceItems
Feature Feature J e a n s
C a s u a l W e a r
S t o c k i n g s
A c c e s s o r
i e s
P a n t s
T o p s
T o p s
S k i r t s a n d D r e s s e s
H a t s a n d H
a n d b a g s
Open Display Window Open Display Window
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 23/88
FourWay
FourWay
FourWay
FourWay
Shelving
Shelving
R a i l
s
R
a i l s
R a i l s
R a i l s
Shelv-ing
Round
RoundTHEFREE-FORMLAYOUT
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 24/88
Advantages
A friendly atmosphereShoppers do not feel rushedPeople are encouraged to walkthrough in any directionImpulse or unplanned purchases areenhanced
DisadvantagesPossible customer confusion
Wasted floor spaceDifficulties in inventory controlHigher labor intensityPotential loiteringDisplays may cost more
THE FREE-FORM LAYOUT
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 25/88
Store Planning
• Grid layout:
Is a type of store layout in which counters and
fixtures are placed in long rows or “runs,”
usually at right angles, throughout the store.
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 26/88
Linear design, checkerboard pattern.
Vertical and horizontal aisles
– May have one main aisle and many secondary
aisles.
Efficient use of space
Simple and predictable to navigate
Focal points at aisle ends
Grid Layout
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 27/88
Fruit
Vegetables
Office &
customer
service
Books, magazines, seasonal
display
Grid Store Layout
R e c e i v i n g & s
t o r a
g e
Exit
Entrance
Cart
areaCheckouts
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 28/88
Grid Layout
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 29/88
Checkouts
THE GRIDLAYOUT
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 30/88
Advantages
An efficient atmosphere is createdMore floor space is devoted toproduct displaysPeople can shop quicklyInventory control and security aresimplified
Self-service is easy, thereby reducinglabor costs
Disadvantages
Impersonal atmosphereMore limited browsing by customersRushed shopping behavior
THE GRID LAYOUT
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 31/88
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 32/88
Store Layouts
• Loop layout:
Is a type of store layout in which a major
customer aisle begins at the entrance, loops
through the store – usually in the shape of a
circle, square, or rectangle – and then returns
the customer to the front of the store.
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 33/88
Loop Layout
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 34/88
Floor Plan: Clarence Sander’s Piggly Wiggly
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 35/88
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 36/88
J.C. Penney Racetrack Layout at NorthPark Center in Dallas, Texas
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 37/88
Store Layouts
• Spine layout:
Is a type of store layout in which a single main
aisle runs from the front to the back of the
store, transporting customers in both
directions, and where on either side of this
spine, merchandise departments using either
a free-flow or grid pattern branch off towardthe back side walls.
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 38/88
Spine Layout
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 39/88
Fixtures
• Accept, hold, stock and show
merchandise.
• Used in window displays, on top of
counters, within floor
arrangements.
• Contribute to store brand image
and ambiance.
• Expected to last a long time.
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 40/88
MERCHANDISE PRESENTATION
• Planning
–Fixtures
- Presentation methods
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 41/88
MERCHANDISE PRESENTATION
• Fixture Types
– Hardlines Fixtures
– Softlines Fixtures
– Wall Fixtures
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 42/88
MERCHANDISE PRESENTATION
• On-shelf merchandising:
Is the display of merchandise on counters,
racks, shelves, and fixtures throughout the
store.
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 43/88
MERCHANDISE PRESENTATION
• Bulk or capacity fixture:
Is a display fixture that is intended to hold the
bulk of merchandise without looking as heavy
as a long, straight rack of merchandise.
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 44/88
Hold large quantities
Shows a single style in
depth of selection.
Usually the largestfixtures in the store.
Usually placed in back
of store.
Capacity Fixtures
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 45/88
MERCHANDISE PRESENTATION
• Feature fixture:
Is a display that draws special attention to
selected features (e.g., color, shape, or style)
of merchandise.
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 46/88
Used to highlight
categories.
Hold fewer items.
Best used as lead-in
fixtures.
Also interspersed
throughout store to
add variety.
Feature Fixtures
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 47/88
Four-Way Feature Rack and Round Rack
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 48/88
Signature Fixtures
One-of-a-Kind units.
Positioned at store or department entrance.
Reflects brand image
Designed specifically for the store to catch
shoppers’ interest.
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 49/88
MERCHANDISE PRESENTATION
• Merchandise Presentation Planning;
Six Methods
1. Shelving
2. Hanging3. Pegging
4. Folding
5. Stacking6. Dumping
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 50/88
MERCHANDISE PRESENTATION
• Merchandise Presentation Planning;
• Key Psychological Factors to Consider
1. Value/fashion image
2. Angles and sightlines
3. Vertical color blocking
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 51/88
45-Degree Customer Sightline
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 52/88
Vertical Color Blocking
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 53/88
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 54/88
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 55/88
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 56/88
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 57/88
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 58/88
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 59/88
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 60/88
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 61/88
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 62/88
Space Allocation
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 63/88
SPACE Allocation OBJECTIVES
• Use space effectively whether floor, page or
virtual
• Optimise short- and long-term returns on
investment into retail space
• Provide a logical, convenient and inspiring
product-customer interface
• Make right selection of products available
• Communication of retailer’s brand identity
Stage Measuring Space
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 64/88
Stage
1
Measuring Space
The total amount of space should be measurable. In store terms this would be
physical space, the width, length and height should be taken into account. In
non-store terms this would be the target number of pages in a catalogue or on
a website.
Stage
2
Dividing the space into selling areas
At this stage the process is concerned with dividing the total retail space into
selling areas, usually defined by product category or department. The space
devoted will normally be determined by historical of forecasted category/
department performance and will be expressed as a total spatial measure (forexample number of square metres). Sometimes the space will be allocated on
the basis of the number of fixtures that will be given to each category.
Stage
3
Determine the layout
At this stage product adjacencies will be decided, and the location of the
selling areas will be determined. Individual outlet characteristics will influence
this stage of the planning process; for example location of entrances, set
walkways around the store, lift and escalators, pillars and divisions all need to
be taken into consideration in a store plan. In a catalogue the product
categories that are going to go at the front of the book need to be decided.
The relationships between one product category and another also have to be
considered when determining the layout.
Stage
4
Determine the space allocation of product lines
This involves the allocation of space on individual fixtures to each product line
or stock keeping unit. The availability and characteristics of fixtures, individual
product performances, product features and characteristics and the
compatibility of products will all have a bearing on these decisions. Many
retailers use sophisticated computerised space allocations systems in this stage.
THE SPACEMANAGEMENTPROCESS
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 65/88
Measuring retail space using square metres
STAGE 1: MEASURING RETAIL SPACE
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 66/88
Using linear measurement for space
STAGE 1: MEASURING RETAIL SPACE
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 67/88
Using cubic measurement for retail space
STAGE 1: MEASURING RETAIL SPACE
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 68/88
SPACE PRODUCTIVITY
• Sales volume and profitability can be
measured in relation to the amount of space
used to generate them
• This provides productivity measures, e.g.
– sales per square metre
– profit per square metre
– sales per cubic or linear metre
– profits per catalogue page
STAGE 2 DIVIDING SPACE INTO SELLING
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 69/88
STAGE 2: DIVIDING SPACE INTO SELLING
AREAS
• Allocation of space to product department or
category
• Usually based on previous performanceindication, typically sales
• Some products require disproportionately large
area (e.g. furniture) others can withstand
disproportionately smaller area (e.g. jewellery)
• Category life-cycle may influence amount of space
STAGE 3: DETERMINE LAYOUT AND
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 70/88
STAGE 3: DETERMINE LAYOUT AND
PRODUCT ADJACENCIES
• Converting numerical data into a workable
outlet layout, considering inflexible elements:
– entrances, walkways, checkouts
• Consider space quality
• Consider logical flow through products and
complementary categories
STAGE 4 ALLOCATING SPACE TO
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 71/88
STAGE 4: ALLOCATING SPACE TO
INDIVIDUAL PRODUCTS
• Products, like categories are often allocated spaceon the basis of sales. – Advantage: product is less likely to sell out
– Disadvantage: may not be profitable
• Different sales figures have advantages anddisadvantages (see Box 8.2) – historical sales
– market share
– projected sales
PRODUCT ADJACENCIES
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 72/88
Product Groups in a baby equipment retailer
Feeding Baby Care Bath Time Clothes Travel Nursery
bottles nappies baby baths sleepwear prams cots
sterilizers wipes soaps/liquid daywear pushchairs bedding
formula
milk
change
mats
towels shoes strollers toys
bottle
warmers
travel bags toys outerwear car seats furniture
bibs travel cots
PRODUCT ADJACENCIES
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 73/88
STAGE 4 CONTINUED
• Space elasticity is a term for the relationship betweenan increase in space given to a product line and theresulting increase in sales
• Space elasticity is not uniform amongst products or
across stores• Generally staple products have lower space elasticity
than impulse buys
• Cross elasticity is the relationship between the
increase in sale of one product and the resultingincrease in sale of another product
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 74/88
STAGE 4 CONTINUED
• Allocating space according to product
profitability
– Advantage: best and most space devoted to
products that bring best profit margins – Disadvantages:
• wasting space because of low space elasticity
• consumers may have difficulty finding products
• Long term customer satisfaction must be
considered in space allocation plans
PROFIT BUILDERS STAR PERFORMERS
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 75/88
PROFIT BUILDERS
Profit margins are high but salesturnover is low
Adjust space allocation focusing onquality of space rather than quantityin order to increase sales.
Consider rationalizing range ofproducts in category
STAR PERFORMERS
Sales turnover and profit margins equalor exceed targets
Allocate large amounts of good qualityspace
Consider increasing product assortmentwithin category
SPACE WASTERS
Low profit margins and low salesturnover
Reduce space or eliminate product
TRAFFIC BUILDERS
Products have a good sales turnoverrate , but profit margins are small
Place close to higher profit/impulsepurchase goods. Use to pull customersthrough store
Work on improving margins. Considerintroducing own-label variation
Product sales
Product
profit
Space Allocation alternatives
STAGE 4 PRATICAL AND CUSTOMER
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 76/88
STAGE 4: PRATICAL AND CUSTOMER
CONSIDERATIONS
• Seasonality
• Product characteristics: size, weight, hazards,
chilled and frozen, fragile, expensive,
contamination
• Customer characteristics
– pester power
– mobility
• Fixture limitation
SPACE ALLOCATION SYSTEMS
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 77/88
SPACE ALLOCATION SYSTEMS
• Inputs:
– Product information• costs, sales, dimensions, complementary products
– Fixture information• specific requirements of product (e.g. shelf level),
dimensions, number available
– Product manager knowledge/experience• space and cross elasticity, stock holding objective, life-
cycle stage
• Output
– Planogram or visual display map
SPACE ALLOCATION SYSTEMS
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 78/88
SPACE ALLOCATION SYSTEMS
• Advantages: – optimises space productivity
– maintains consistent corporate identity
– allows retailers to experiment with visual display
– helps to achieve efficient assortment (see ECR)
– moving towards store specific planograms
• Disadvantages: – costs
– not appropriate for small retailers or where displays arefrequently changed (e.g. independent fashion retailer)
SPACE ALLOCATION AND CATEGORY
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 79/88
SPACE ALLOCATION AND CATEGORY
MANAGMENT
• Many would argue that space planning and allocation and
category management go hand in hand.
• Space planning systems help retailers to fine tune categoryassortment and analyse product and category performance
• Planograms by category ensure stores are implementing
category plans
• Consumer behaviour (decision sequence) can be accountedfor within the space allocation plans
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 80/88
Planogram• A planogram is a tool used by the retailer, and it helps
determine the location of merchandise within a dept.• It is a diagram that visually communicates how
merchandise and props physically fit onto a storefixture or window, to allow for proper visibility andprice options.
• A planogram is created after taking into account,factors like product sales, the movement of theproducts within the product category and the spacerequired for the various products and the exactnumber of products to be displayed in a particulararea
Planogram for Salad Dressing
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 81/88
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 82/88
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 83/88
Pl
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 84/88
Planogram
• A planogram is often received before aproduct reaches a store, and is usefulwhen a retailer wants multiple store
displays to have the same look and feel.Often a consumer packaged goodsmanufacturer will release a new suggestedplanogram with their new product, to show
how it relates to existing products in saidcategory.
Pl
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 85/88
Planogram
• Planograms differ significantly by retail sector.Fast moving consumer goods organizations and
supermarkets largely use text and box based
planograms that optimise 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.
Pl
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 86/88
Planogram
• Since the purpose of a planogram is tocommunicate how to set the merchandise toincrease customer purchases, much researchoften goes into the layout of a planogram.Attention is given to adjusting the visibility,appearance and presence of products to makethem look more desirable, or to ensure
sufficient inventory levels on the shelf ordisplay.
Pl
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 87/88
Planogram
• The use of planogram software however, enables auser to do much more advanced and detailedanalysis. Most planogram programs evenautomatically add product images to products, in
addition to providing dynamic shading and labelingto better show opportunities in the set. One stepfurther is to automate the production of planogramswhere a retailer or merchandiser requires many
planograms to be produced at once, based on storespecific data.
Planogram Softwares
8/14/2019 MFM RM SVI.ppt
http://slidepdf.com/reader/full/mfm-rm-svippt 88/88
g
• Intactix
• PlanoGraphics
• Shelf Logic Software Products
• mockshop
• Spacemate