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Lack of retailer/partner collaboration: A company sends in their planogram to all its retailers but if the retailers are reluctant to follow the instructions, you cannot expect planogram compliance.Some of the factors that are responsible for failed execution of planogram compliance are as follows. This happens due to failed planogram compliance. Even though some FMCG and consumer goods companies make excellent planograms, they may not succeed to boost sales of their products, as they may not be placed at the right place or perhaps at the right time (stock outs in stores). Also, positioning the products in the store in such a way that it attracts the attention of the customers. The sole purpose of planogram is to maximize sales by enhancing store appearance. Challenges associated with Planogram compliance It is definitely an ongoing challenge for the companies to maintain planogram compliance in numerous retail stores.
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While the company invests on planogram, it is essential to check the ground execution of planograms in retail stores. Moreover, a planogram provides layout of shelves in large format stores that aid inventory management.Īs strategy is to execution, planogram is to planogram compliance. These are designed to focus on optimal utilization of selling space, improving visual appeal products and promoting upselling and cross-selling. It includes installation, position of products in order to maximize sales through efficient visual merchandising. These are schematic drawings or plans of retail merchandising sites to analyze the best positions for product displays. Planograms play a significant role in visual merchandising investment, especially for FMCG and consumer goods companies.