Earlier, planograms were circulated as schematic diagrams, but lately they are managed digitally on electronic devices, thanks to SaaS-based applications.
Before the creation of a planogram, thorough shopper research must be done. CPG companies take care to categorize their products and analyze current market trends. Understanding how shoppers shop in that category is vital to creating an effective planogram
. Marketing or market research teams must keep an eye on every bulk sms malaysia detail. A small mishap can incur substantial losses.
Take the example of “Project Impact,” a 2009 project by Walmart. The main goal of the project was to increase space in superstores and improve the overall shopping experience. To achieve this goal, Walmart removed 10% of the SKUs, approximately 15,000 SKUs, from select superstores in prime locations.
Products such as jams and jellies, which they discovered were the reason for the store clutter, were part of this removal.
As predicted by Walmart’s research team, the change positively affected the shopper experience. Management was happy with the change, and the project was deemed a success.
However, they failed to pay attention to the slow decline in sales. A decision that soon turned into a disaster. Over the next two years, sales declined dramatically at these superstores.
By the time Walmart management realized their blunder, losses had piled up to $2 billion. A huge loss compared to their competitors, which brought “Project Impact” to an end.
