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NATIONAL INSTITUE OF FASHION TECHNOLOGY

VISUAL MERCHANDISING

ASSIGNMENT 2

SUBMITTED BY:
SUBMITTED TO:
Ananya sharma
Mr. Vikas kumar Anchal bhatia
Astha bhatia
Zaya sarwar
Acknowledgement

A report like this is never the work of anyone alone. The contributions of many different
people, in their different ways, have made this possible. We would like to extend our
appreciation especially to the following:
We wish to express our sincere gratitude to our professor Mr. Vikas Kumar for his constant
guidance and support without which the completion of this report would not be possible.

We would like to thank our friends and family for their support and encouragement
throughout the completion of this report.

Ananya Sharma

Anchal Bhatia

Astha Bhatia

Zaya Sarwar

MFM II
PLANOGRAM

A planogram is a diagram that shows how and where specific retail products should be placed
on retail shelves or displays in order to increase customer purchases. A planogram also
illustrates how many facings are allocated for each SKU. In retail, a planogram replaces
architectural drawings. Planograms are similar to architectural drawings and help the retailer
to understand where the merchandise should be stocked in order to catch the customers
attention and make the maximum impact. Planograms are nothing but diagrams which give
the retailer an idea how and where to place the merchandise to attract the customers into the
store. Planogramming is a skill used in merchandising and retail space planning. A person
with this skill is referred to as a planogrammer.

SHORT-TERM BENEFITS OF PLANOGRAM

Your data will be clean and products can be classified.


Better grasp of product and category performance.
Better space allocation and, therefore, immediate increase in sales.
Improved awareness of space value and space return.
Improved store consistency and retailer brand awareness.

LONG-TERM BENEFITS OF PLANOGRAM

Maximizes selling potential for every inch of Shelf Space.


Sales Strategy can be realized at store level.
Significant increase in sales and stock rotation.
Customers are presented with attractive visual merchandising.
Customers are presented with attractive yet efficient product selection.
Reduced inventory holding while reducing of out-of-stocks.
Product replenishment will be Simplified and Optimised.

PLANOGRAM PURPOSE

Product placement and improved sales are just two very basic reasons a retailer should be
implementing planograms in their shops. Planograms provide many other positive benefits as
well:

Assigned selling potential to every square foot of space


Satisfying customers with a better visual appeal
Tighter inventory control and reduction of out-of-stocks
Easier product replenishment for staff
Better related product positioning
Effective communication tool for staff-produced displays

Any good retailer realizes the key to increased sales is through proper visual merchandising.
A planogram is one of the best merchandising tools for presenting products to the customer.

NEED FOR PLANOGRAMS

A Planogram ideally should be prepared before the merchandise reaches the retail store. The
retailer should be very clear where he wants to place his products to impress the customers.
There are various softwares available which help to create planograms. These softwares help
the retailers to draw three dimensional diagrams of the store and help them visualize the
overall image of the store.

Presentation of product plays an important role at the retail store. With the help of
Planograms; a retailer can actually know where to place the products for the maximum effect.
Planogram enables the retailers to stock the products at the right place and at the right time to
attract the customers and prompt them to buy. A retailer can make the best possible use of the
available space with the help of planograms. The merchandiser can actually create an
attractive display to entice the customers with the help of planograms. Planograms indirectly
also contribute in maximizing the sale of the merchandise and thus generate revenues for the
store. A cluttered store fails to attract the customers. The planograms help the retailer to
arrange the products in the best possible way for the customers to pick up almost everything.

TYPES OF MERCHANDISE PLACEMENT

Visual Product Placement - Visual Product Placement refers to a technique where the
products are placed in a way to immediately catch the attention of the customers walking into
the store.

Types of Visual Product Placement

1. Horizontal Product Placement

According to horizontal product placement, products are placed side by side on


shelves to offer a wide range of options to the customers.

2. Vertical product placement

The vertical product placement displays the merchandise on more than one shelf
level.

3. Block Placement

According to block placement of products, the related products or merchandise


belonging to a similar family are stocked at one place together under one common
umbrella.

4. Commercial Product Placement

Commercial product placement takes into account the brand value of the merchandise.
Every customer has a perceived image of the merchandise which decides its
placement in the store. A product which has several takers would definitely get the
best position as compared to something which does not contribute much to the
revenue of the store.
5. Market share product placement

Market share product placement plan works on a simple strategy:

A product which generates the maximum revenue for the store should ideally be
placed at a prime location for the customers to notice it and immediately buy it.

6. Margin Product Placement

According to Margin product placement, the more a product earns profit for the
retailer, the better the location it is placed.
ABOUT LEVIS
Levis is a privately owned American brand. Launched in the year 1873, the brand has been
successful in capturing the imagination and attention of the consumers throughout the world.
This international company has helped in developing existing markets, introducing new
markets and in exploiting the textile market to its advantage. The brand has become
synonymous with qualitative products. The brand Levis has spread its network to One
hundred and ten countries that includes more than fifty five thousand retail outlets.
Some of the companys competitors are
GAP Jeans
Pepe Jeans
Cambridge
Lee
Levis has four stores in Patna.

Kankarbagh
Fraser road
Boring road
Raja barzar
About the store:
Planogram for the store at Fraser road:
The selling area of the store consists of 650 square ft. which includes display area and
cash counter.
The non-selling area consists of 50 square ft. which includes trial rooms and stock
rooms.
Various wall fixtures and Gondolas are present in the store with mannequins to
display the merchandise.
Gondolas height was 3 ft. and two gondolas are present in the store any amount of
merchandise can be stored but with proper gap
The store has 4 walls which has different sizes. The stock is kept according to the size
of the wall. For ex- the wall of height 511 can store more number of merchandise,
therefore more merchandise is kept in that wall.
There are different bricks formations in the wall which divide different category
which differentiate the merchandise (example premium, supra collection, simple or
office collection). The store has different types of merchandise on each wall.
Bricks- Classic 5 pocket, skinny, Red loop, Style denim, shirt shop and basic 5 Pocket
and accessories.
Each wall (bricks) has the upper and lower shelf and they are at a gap of 1.5 feet to
each other. The shelves are attached to wall and hence cannot be changed.
Each shelf consists of minimum of 4 merchandise and maximum 7 merchandise.
The position of Gondolas can be changed.
The store has window display which has two mannequins and it is back open window
display.
STOCK KEEPING UNITS

SKUS IN WALL FIXTURES SKUS IN GONDOLAS


SKINNY: GONDOLA 1:
Denims: 87 Shirts: 56
Shirts: 24
T-shirts: 69
CLASSIC 5 POCKET: GONDOLA 2:
Denims: 27 T-shirts :32
T-shirt: 14
RED LOOP & SHIRT SHOP: STAND:
Shirts: 108 T-shirts: 24
BASIC 5 POCKET:
Denims: 167
T-shirts: 31
Shirt: 6
STYLED DENIMS:
Denims:120
T-shirts: 24
ACCESSORIES:
Wallets: 5
Belts: 10
Slippers: 9

TOTAL SKUS: 813


INEFFECTIVE PLANOGRAM SEEN IN CASE OF LEVIS:
Overstocking seen in wall fixtures.
The gondolas was overstocked due to less space available in the store.
SOLUTION:
The display of less merchandise (high demand size) in gondolas and wall fixtures.
Other merchandise can be stored in stock room in the store and other stock room
present above the store