Strategic Shelf Space Allocation

💰 The hidden cost of fighting for eye-level shelf space Every FMCG brand wants that golden eye-level position. But after analyzing shelf performance data across categories, A discovery was made that challenges conventional wisdom. The Eye-Level Obsession Problem:Most brands spend 60% of their trade budget fighting for positions 3-4 (eye level), but here's what the data actually shows: Position Performance Reality Check: - Position 1 (top shelf): 23% visibility, 31% impulse purchases - Position 2 (upper-middle): 28% visibility, 28% purchases - Position 3 (eye-level): 35% visibility, 25% purchases - Position 4 (lower-middle): 18% visibility, 22% purchases - Position 5 (bottom): 12% visibility, 15% purchases The Surprising Truth: Eye-level gets seen most, but doesn't convert best. Why? Because shoppers expect premium pricing at eye-level and often look up or down for value. Smart Positioning Strategy: For Premium Brands: - Position 2 (upper-middle) offers optimal visibility-to-conversion ratio - Less competition = lower trade investment required - Still perceived as premium without the "expensive" stigma For Value Brands: - Position 1 (top shelf) creates premium perception at value pricing- Shoppers look up when seeking alternatives - Significantly cheaper to secure than eye-level For New Launches: - Position 4 with strong POSM performs better than position 3 without support - Budget saved on positioning can fund trial-driving activitiesCategory Specific Insights: - Beverages: Top shelf works (reach-up doesn't deter) - Heavy items: Eye-level mandatory (convenience factor) - Impulse categories: Position 2 optimal (scanning behavior) - Planned purchases: Position less critical (shoppers will find you) The Smart Trade Investment Approach: 1. Analyze your category's shopping behavior 2. Test performance across positions before committing budgets 3. Negotiate package deals (multiple positions vs single premium spot) 4. Invest saved trade dollars in activation support Real Example: One snack brand moved from fighting for eye-level (costing 40% of trade budget) to securing position 2 + strong POSM. Result: 23% increase in velocity with 30% lower trade investment. Bottom Line: Position matters, but it's not everything. Smart brands optimize for ROI, not just visibility. What's your experience with shelf positioning ROI? Have you tested performance across different levels? #ShelfOptimization #TradeMarketing #RetailStrategy #CPG #FMCG #CategoryManagement #ShelfPlanning #TradeSpend #ROI #ModernTrade

How to Leverage Consumer Insights to Optimize Shelf Placement in Modern Trade Stores 🔍 Winning the First Moment of Truth! Shelf placement remains the ultimate battleground for FMCG brands in modern trade, where the right positioning can increase category sales by up to 40%. Yet surprisingly, only 25% of brands are using consumer insights effectively to drive their shelf strategy. Why Shelf Placement Is Your Silent Salesman: Visual Impact: Products placed at eye level generate 35% higher sales than those on lower shelves. Decision Time: The average shopper makes 78% of purchase decisions in just 3-5 seconds at the shelf. Competitive Context: Products displayed alongside competitors see 22% higher trial rates than isolated placements. Turning Consumer Insights Into Shelf Dominance: Eye-Tracking Analytics: The Visual Journey Advanced eye-tracking studies reveal that shoppers scan shelves in predictable patterns: Primary scan zone captures 65% of initial attention. Product recognition happens within 0.7 seconds. Brands leveraging this data report 28% higher conversion from visibility to purchase. Purchase Behavior Mapping: Decision Sequence Consumer decision hierarchy data transforms shelf placement strategy: Category entry triggers identified for 83% of FMCG purchases. Sequential product evaluation patterns vary dramatically by category. Planogram alignment with purchase sequence boosts sales by 31% Critical Implementation Strategies: The most successful brands in modern trade have transformed shelf placement from a negotiation-based tactic into a science-driven strategy, elevating consumer insights from interesting knowledge to actionable intelligence. #ShelfPlacement #ConsumerInsights #RetailStrategy #ModernTrade #CategoryManagement #ShopperMarketing #FMCGRetail #TradeMarketing #RetailExecution #ShopperBehavior

Planogram management in FMCG Planogram, Planogram and Planogram- this you might have heard many times in our sales meeting from your Bosses or explaining to your juniors. Efficient shelf space and planogram management in the FMCG (Fast-Moving Consumer Goods) industry is crucial for maximizing sales, optimizing customer experience, and maintaining profitability. Here's an overview of strategies and best practices: 1. Understand Customer Preferences Analyze sales data to identify high-demand products. Understand customer purchasing behavior, such as complementary products or popular categories. Cater to local preferences and seasonal trends. 2. Leverage Planograms Use planograms to create visual representations of shelf layouts. Planograms ensure products are placed in a way that maximizes visibility and accessibility, especially for high-margin or high-demand items. Keep high-velocity products at eye level for easy access. 3. Category Management Organize products into logical categories for customers to find items easily. Group related or complementary products (e.g., pasta and sauces) to encourage cross-selling. Use the 80/20 rule: allocate more space to the 20% of products that drive 80% of sales. 4. Optimize Space Allocation Allocate shelf space based on product performance (sales volume and profitability). Avoid overstocking slow-moving products to free up space for high-demand items. Regularly monitor stock levels and adjust planograms as needed. 5. Technology Integration Use AI and machine learning to predict demand and optimize layouts. Implement shelf management software to automate planogram creation and track compliance. Deploy RFID or smart shelf technologies to monitor stock in real-time. 6. Compliance and Execution Ensure planogram compliance by training staff on proper implementation. Conduct regular audits to verify that shelves match the planogram design. 7. Dynamic Adjustments Continuously analyze sales data and shopper behavior to update shelf layouts. Experiment with shelf configurations (A/B testing) to identify what drives sales growth. Quickly adapt to changes in demand, such as new product launches or promotional campaigns. 8. Promotions and Visual Merchandising Highlight promotional items with special displays, signage, or end caps. Use attractive packaging and clear pricing to draw customer attention. Incorporate data-driven strategies to decide which products to feature in high-visibility areas. 9. Collaboration with Suppliers Collaborate with FMCG suppliers to ensure an optimized product mix and promotional support. 10. Monitor and Evaluate Performance Track key performance indicators (KPIs), such as shelf turnover, sales per square foot, and out-of-stock rates. Efficient shelf space management and well-designed planograms can significantly improve store operations and enhance customer satisfaction, ultimately boosting sales and profitability. #fmcg #planogram #sales #supermarkets #placement

(FMCG Blueprint) 🛒 Planogramming & Shelf Management in GT – The Art of ‘Eye-Level is Buy-Level’ Ever walked into a kirana store and magically picked up a product you didn’t even plan to buy? Well, that’s not magic—it’s planogramming at work! For those in FMCG sales, especially in General Trade (GT), mastering shelf management can be the difference between a slow-moving SKU collecting dust or flying off the shelf like a viral meme. Let’s break it down (with some humor & data!): Why Planogramming Matters in GT? ✅ Eye-Level is Buy-Level – 80% of shoppers buy what they see first. Your product at the bottom shelf? Good luck competing with the store dog’s snacks. 🐶 ✅ First Impression Wins – Studies show products placed at the store entrance get 40% more eyeballs. Ever noticed why impulse buys (like chocolates & gums) are near the checkout? ✅ The Power of Adjacency – Ever wondered why chips & soft drinks are always neighbors? Because 60% of shoppers buy them together. If your snack brand is sitting next to floor cleaner instead, well… good luck! Common GT Shelf Mistakes (That Kill Sales!) 🚨 Dumping stock anywhere – Just because the retailer has shelf space doesn’t mean it’s the right space. Your premium biscuits don’t belong in the ‘Rs. 5 wala’ section! 🚨 No FIFO (First In, First Out) – Old stock rotting at the back is a crime in FMCG. Unless you’re selling aged whiskey, rotate your stock! 🚨 Ignoring Visibility – A bright red competitor pack on the prime shelf while your SKU hides behind a ‘Buy 1 Get 1 Free’ board? Big mistake. The GT Shelf Formula for FMCG Success 🚀 📌 Prime Shelf = High Velocity SKUs 📌 Impulse SKUs = Checkout Counter 📌 Complementary Products = Placed Together 📌 Slow Movers = Extra Push with Visibility (POP, Danglers, Shelf Strips) Takeaway: Treat Shelf Space Like Real Estate! • Rent is high – so fight for the best spot! • Location matters – the closer to eye-level, the better. • Rotation is key – old stock should never be ‘lost & found.’ If you’re in FMCG sales, your job doesn’t end at getting the order—it starts with ensuring your product gets visibility & velocity at the shelf! What’s the funniest GT shelf placement mistake you’ve seen? Drop it in the comments! 👇

Eye-Level Placement: Maximizing FMCG Sales-FAQs 1. What is eye-level placement and why is it important in FMCG sales? Eye-level placement refers to positioning products on retail shelves at a height where they are most easily seen by customers, typically between 4 and 5.5 feet for adults. This strategic placement is crucial in FMCG because it maximizes product visibility, increases the likelihood of impulse purchases, improves brand perception, and ultimately drives sales growth. Customers tend to scan shelves at this height naturally, making it prime real estate for brands seeking to capture their attention. 2. How does eye-level placement influence consumer behavior and purchasing decisions? Eye-level placement leverages natural consumer behavior patterns. Shoppers tend to scan shelves horizontally, making eye-level products the first to be noticed. This enhanced visibility increases product recall and triggers impulse buys, especially for new or promotional products. Furthermore, products placed at eye level are often perceived as more premium and desirable, which elevates brand image and can lead to higher sales conversions. 3. What are the different shelf placement tiers and how should they be used strategically? Shelf placement tiers are divided into top, eye-level, and lower shelves, each serving a specific purpose. The top shelf is suitable for premium or niche products. The eye-level shelf is the prime location for high-margin, fast-moving products that need maximum visibility to drive sales. Lower shelves are generally reserved for bulk items or lower-margin products that do not require significant promotional focus. 4. What are some effective strategies to secure and optimize eye-level placement? Effective strategies to secure eye-level placement include negotiating with retailers during trade agreements, offering incentives or promotional support, and providing data demonstrating how the placement will boost sales. Optimizing the placement can involve using Shelf Ready Packaging (SRP) that makes products stand out, targeting the right eye level for your target audience (lower for children), and placing complementary products nearby to encourage bundle purchases. 5. What are the main challenges in securing eye-level placement in retail environments? The main challenges include high levels of competition for limited prime shelf space, the premium fees that retailers may charge for this placement, and the fact that retailers sometimes prioritize their own private labels. There are also factors like retailer preferences regarding the shelf positioning. 6. How can brands overcome the challenges associated with securing eye-level placement? To overcome these challenges, brands can offer higher margins to motivate retailers, provide data on how eye-level placement boosts sales, offer promotional materials and shelf management support, and actively build a strong relationship with retailers based on mutual benefit. #Sales