When discussing in-store sales, a pivotal question emerges, “what is the key to effective shelf planning for product promotion?” This is not merely a case of showcasing a product in your assortment planning strategy. The goal is to ensure your product stands out in a crowded marketplace, grabs attention, and connects with the target audience.

Finding the right balance is crucial, since a mismatch might result in missed opportunities or excessive inventories. Yet, why is this so important? Because your right product mix can influence customer’s shopping, sales velocity, and profitability. So, how do you maximize your efforts to promote your products? It begins with a deep understanding of shopper preferences and purchasing patterns. You may customize a strategy such as planograms for product promotion that not only appeals to consumers but also guarantees every item in your product mix has the rightful place on shelves. In this blog, we will explore how to use planograms to promote your products and increase brand visibility:

1. Understand your customers.

Understanding your target customers is important for successful product promotion with the help of shelf planning software. When you understand your shoppers and identify what entices them, your assortment planning strategies can be effectively executed to make sure that your product mix resonates with your customer's interest.

• Demographics: Demographics play a crucial role in understanding and defining target customers for effective product promotion. It includes various characteristics and factors related to a specific group of people, such as age, gender, income, location, and lifestyle. By analyzing these demographic factors, retailers can plan their shelves in a way that resonates with their target customers, allowing for more precise product promotion, effective communication, and boosting sales. For instance, if you run a clothing store near a university area, your primary demographic will be female students aged 18-25. Considering this, you can promote a product mix of trendy, affordable, daily use, and seasonally appropriate clothes rather than high-end luxury items.
• Shopping behavior & preferences: Understanding shopping behavior and preferences involves finding answers to questions such as how often they buy specific items together, what items have high-margin, and how market trends can determine their shopping preferences. For example, if a shopper buys moisturizer, they might also be interested in purchasing sunscreen or lip balm. By recognizing this pattern, retailers can bundle such items at a discounted price during promotions.

2. Choosing the right products.

Choosing the right products is the first step in creating an ideal product promotion, and this is the goal of efficient assortment planning. Your product promotion strategies will be more effective if you promote things that appeal to your target demographic.

• Bestsellers & seasonal items: Analyzing what is already popular is a tried and tested method in the retail business. If a product becomes your bestseller, it will eventually boost sales. Imagine you own a grocery store and notice that a specific coffee bean brand has gained immense popularity. You can position the coffee beans at eye level and within arm’s reach on prominent shelves or end caps to encourage more shoppers to grab them as they pass by to drive sales. Likewise, promoting seasonal items before the peak of their demand can attract customer’s attention. For example, let us consider an apparel store. As winter approaches, you can add jackets, sweaters, or woolen clothes to your product mix to promote products.
• Excess inventory: Most retailers face the issue of excess stock from time to time. For instance, if you are a cosmetic store retailer, you might find yourself with an excess of skin-care products due to an unusually hot summer. By offering attractive discounts, not only do you entice shoppers to make a purchase but also clean your shelf space for the next season’s products.

3. Remember that shelf placement is key.

Effective product promotion can be done with the right shelf placement strategies. It also involves positioning the items at eye level so that most shoppers do not miss the chance to purchase them.

• Window displays: Effective window displays act as the first point of contact with potential customers, setting the tone for their shopping experience and enticing them to step through the door to discover more. Their visual appeal and creativity can generate curiosity among passersby, compelling them to explore what's inside. By using eye-catching visuals, thematic storytelling, and well-placed products, it can evoke emotions and create a sense of anticipation.
• End caps and checkout counters: Most retail stores often place promotional items or those on offers at the end of aisles or near the checkout counters. These are high-traffic areas where your shoppers will pass by and have a high chance of noticing items. For example, placing chocolates, toys, or gift cards near the checkout counter can result in impulse purchases.

Overview of Nexgen POG

Nexgen POG is a robust and user-friendly cloud-based visual merchandising tool. It is designed for quick and efficient planogramming with minimal effort. Planogram in retail can be designed by easily dragging and dropping the products. The multi-device compatibility feature of POG allows you to obtain, share and edit planogram on any device, including your phone. It helps in designing store-specific planograms for increased product visibility and sales.

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