Trade Marketing and Space Management

Space Management

• Category Tactics: Space Management

General Merchandising Criteria

• Objective: Attract customer attention.
• Eye Level: From 125 to 160 cms; attracts and retains attention; perceived first.
• Hand Level: From 80 to 125 cms; offers the product comfortably, easy to reach.
• Ground Level: Up to 80 cms; difficult to see; requires bending down.

Level Placement

• Eye Level:
  • Strong Turnover and High Margin.
  • Greater Chances of Sale.
• Hand Level:
  • Daily Consumption.
  • Making it easy to buy.
• Ground Level:
  • Low Turnover and Low Margin.
  • Heavy products.
  • Least Favored Sale Level.

Sales Impact of Level Changes

• Ground Level to Hand Level: +34%
• Ground Level to Eye Level: +78%
• Hand Level to Eye Level: +63%
• Eye Level to Ground Level: -40%
• Hand Level to Ground Level: -32%

Space Management: Planogram

• Blueprint.

Space Management: Case Study - Milk

• Objectives: Analyze existing planogram and space allocation.
• Propose changes using hypermarket template.
• Consider a different approach for convenience stores versus hypermarkets.

Milk Category Data

• Consumer Decision Tree.
• Sales: Volume sales data.
• Space: Existing planogram.

Background Info: Shopper insights

• White milk: High loyalty, steady sales.
• Consumer trends: Shift from full fat to low fat and willingness to try functional variants.

Background Info: Merchandising rules

• Merchandising rules: Reflection of the decision tree into the category.
  *Shows how each segment and SKU should be merchandised.
  *Highlights their importance and aligns their placement based on the category objectives and strategies.

Milk Category Decision Tree

• WHITE MILK
  • FRESH
    • FULL FAT
    • LOW FAT
  • HIGHLY PASTEURIZED
    • FULL FAT
    • LOW FAT
  • FUNCTIONAL
    • CHILDREN
    • ADULT

Sales vs. Space Data