In today’s retail industry, brands emphasize change in product packaging to target the audience by adding more colors to the packaging. So, why does product packaging have so much impact on in-store sales? The answer is simple: To cut costs for growing competition, prevent outdated products, retain brand image and for recycling.
During the pandemic, many brands have redefined their packaging to cater to the safety of their customers. For instance, food manufacturers have started packaging their products with double-layered packaging to keep the food fresh and safe, while other liquid handwashes have switched to sustainable packaging to dispose of after usage. These changes in product packaging helped retailers to improve their in-store product visibility and sales. Product packaging is important in retail merchandising, as it can break or build a retailer’s reputation. Therefore, a manufacturer should implement the right packaging for products to connect with the customer needs and innovative marketing trends. If the new packaging takes up 70% of the total space, it can impact the shelf space availability of other existing products. In-store shelf space availability and technological advances are other reasons for change in product packaging. For example, many brands have introduced stand-up pouches for food packaging to provide products at cheaper prices and great convenience. Therefore, change in product packaging can impact the dimensions of a shelf space availability in terms of its height, depth, width. It can cause products to not fit on retail shelves, and thus carry forward to other shelves Doing this could negatively impact retailer's relationships with suppliers, if not communicated properly. That is why retailers are very careful when it comes to changes in product packaging. Therefore, the impact product packaging changes on other retail products can be analyzed with planogram software. Planogram software is a visual merchandising tool, that help retailers to display products on retail shelves properly. Changes in product packaging impacts on other products can be analyzed through planogram category management and report analysis. Let us now understand how they are beneficial in optimizing retail shelf space availability.
- Planogram category management: Planogram category management uses sales data to analyze the buying behavior of consumers when it comes to changes in product packaging. It helps to determine which shelf space should be used for new packaging product to drive customers attention. Products with new packaging should be grouped by category first, to sell out evenly by considering the impact of such products with other category products. Also, products can be placed at eye-level with a minimum of two facings to be visible for customers to ensure awareness about newly packaged products.
- Planogram report analysis: Planogram report analysis acts as a forecasting tool to measure the performance of new packaging. It can be done by mixing new packaging products with old packaging within the same shelf. By doing this, a retailer can understand which products with what packaging have speedy sales. Retailers can also use reporting to analyze the number of products that would fit on a shelf compared with the old packaging. Reports like sales, space and capacity analysis can provide more information to the retailer in taking the right decision regarding changes in product packaging and its execution on retail shelves.
Overview of Nexgen POG
Nexgen POG is a powerful, cloud-based planogram software, designed for quick and easy planogramming. It is the visual merchandising tool that helps retailers to display products on retail shelves properly with the changing product packaging. Nexgen POG helps in designing store-specific planograms for increased product visibility and sales. Additionally, it comes with an array of features, including easy report generation and compliance, bulk upload of images, standard and customizable templates.
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