Case studies in planogramming ROI for small companies

CASE STUDY DETAILS

BACKGROUND

While planogramming & space management by large companies are old news, the widespread adoption of low-cost, dedicated planogramming software by smaller companies in many different industry sectors is the very latest news, and that?s what this background research paper is all about. Planogramming, space management & visual merchandising may have started with large manufacturers and retail chain stores, but in today's rapidly globalizing marketplace, the latest adopters are likely to be smaller companies in manufacturing, distribution, retailing, MSO's, independent marketing consultants, importing/exporting, reset specialists, and other sectors. The bare knuckled competition for retail shelf space has spawned a tidal wave of interest in sales & marketing tools that facilitate market access, and chief among these tools is low-cost, dedicated planogramming software.

 

These savvy companies have figured out that well-designed, market research-driven planograms, complete with space utilization and financial projection reports, can be the ultimate persuasive sales pitch to a potential customer who is eager to maximize ROI from every cubic foot of expensive retail floor space. They have also figured out that control over product presentation is one of keys to brand awareness success, and nothing controls product presentation like a printed planogram. Moreover, with today's emphasis on category management and merchandising strategy, it is imperative for marketers to slot their products into a customer's tightly planned category displays as efficiently as possible - and to justify their presence in the assortment with some hard data. All of these objectives can be realized through the disciplined application of dedicated planogramming software to the challenges of 21st century marketing.

 

In fact, many of our Shelf Logic planogramming software users have reported the following benefits from their successful deployments:

 

  • Improved sales presentations & closure results
  • Increased consumer appeal of product displays
  • Better brand awareness thru consistency
  • Improved efficiency of shelf space allocations
  • Improved financial performance of assortments
  • Better packaging testing thru tighter controls
  • Faster, more accurate replenishments
  • Quicker inventory resets
  • Better grasp of relative product performance
  • Much better marketing thru targeted displays
  • Improved awareness of visual merchandising

 

So, we decided to ask them some pointed questions about their reasons for planogram software deployment and the results they actually achieved. Following is a small sample of companies who, in their own words, have benefited greatly from their use of dedicated planogramming software in their sales & marketing campaigns. In fact, some have benefited so much that they are reluctant to divulge much more than very basic information - for obvious reasons.

CASE STUDY RESEARCH

 

CASE #1: ULTRA HARDWARE (www.ultrahardware.com)

 

Ultra Hardware is an importer and manufacturer of hardware supplying the home improvement industry. The company was established in 1984 and has approximately 200 employees.

 

Here are their answers to some general questions about their use of Shelf Logic planogram software:

 

  1. How long have you had Shelf Logic?  Since 2002
  2. How long before you started producing planograms?  Right away
  3. The approximate number of items in your database?  3620
  4. What is the use for Shelf Logic?  Produce planograms for customers.
  5. The role that Shelf Logic plays in your company?  Most of our business to retail stores is based on the Shelf Logic planograms.
  6. How important is Shelf Logic to your overall company strategy? - Highly important.
  7. What success stories have you had with Shelf Logic? - Because of our ability with Shelf Logic, we have been able to sell to customers previously unattainable.
  8. Why did you need planogramming? - To sell to retail stores and outlets.
  9. Why did you decide to use planogram software? - For speed, increased productivity.
  10. What were the reasons/features that made you choose Shelf Logic? - Ease of use, price

 

 

CASE #2: CASE LOGIC (www.caselogic.com)

 

Case Logic is the worldwide leader in the manufacture of cut-and-sew products. The company was established in 1985 and has approximately 170 employees worldwide.

 

Here are their answers to some general questions about their use of Shelf Logic planogram software:

 

  1. How long have you had Shelf Logic? - Since 2003
  2. How long before you started producing planograms? ? Immediately.
  3. The approximate number of items in your database? - 960
  4. What is the use for Shelf Logic? - Images and line art Planograms.
  5. The role that Shelf Logic plays in your company? - Used to manage existing POG's and POG sets at retail.
  6. How important is Shelf Logic to your overall company strategy? - POG's are used worldwide & Shelf Logic is a useful tool. However, POG's are not a primary need in the overall company strategy. POG software is essential to the success of landing product placement at retail as well as merchandising in conference rooms and at trade show conventions.
  7. What success stories have you had with Shelf Logic? - Used worldwide for full line product displays at major conventions and for 200+/- items displays for conference rooms and meeting spaces.
  8. Why did you need planogramming? - To manage existing POG's and POG sets at retail
  9. Why did you decide to use planogram software? - Decided to use Shelf Logic software because we could take jpeg images of product instead of having the images outsourced by the POG software company.
  10. What were the reasons/features that made you choose Shelf Logic? - See #9

 

 

CASE #3: LANE LTD (www.reynoldsamerican.com/who/lane_cover.asp)

 

Lane Ltd. is an Old World manufacturer and distributor of fine tobacco products, such as Captain Black, Dunhill, Bugler, and Winchester brands. The company was founded in 1890, moved to the USA in 1938 and has approximately 170 employees worldwide. Lane became part of Reynolds American Inc. in 2004. Lane Ltd was recently bought by Conwood Sales Co. LLC.

 

Here are their answers to some general questions about their use of Shelf Logic planogram software:

 

  1. How long have you had Shelf Logic? - Since Feb 2005
  2. How long before you started producing useful planograms? - June
  3. The approximate number of items in your database? - 3200
  4. What is the use for Shelf Logic? - To create custom POGs for our customer base of grocery stores, c-stores, etc.
  5. The role that Shelf Logic plays in your company? - Integral to the presentation of our products to our customers and clients.
  6. How important is Shelf Logic to your overall company strategy? - Very useful to our company.
  7. What success stories have you had with Shelf Logic? - It's been successful for our company in a short amount of time.
  8. Why did you need planogramming? - To save money on previously outsourced planograms.
  9. Why did you decide to use planogram software? - Quicker than outsourcing and cheaper - couldn't make adjustments previously since they had to be sent back to service company again. Look better and better reporting.
  10. What were the reasons/features that made you choose Shelf Logic? - Ease of use, less complicated, user friendly, powerful reporting.

SUMMARY

Manufacturers, distributors, and importers of all sizes are reporting extraordinarily high ROI from the deployment of low-cost, dedicated planogramming software in their sales & marketing departments. As the value leader in low-cost, dedicated planogramming software, Shelf Logic Software Products has been empowering newbies and experienced planogrammers alike for over 10 years with our easy-to-use software.

 

Our Planogramming Pilot Project model for companies new to planogramming has helped hundreds of users to quickly master our software, produce & deploy their first planograms, and demonstrate fast ROI from well-planned sales campaigns that are market research & planogramming-driven.

 

To learn more about these, and other, planogramming case studies, please contact Dennis Osrow, President, Shelf Logic Software Products at 845-796-3260 or by email at dennis@shelflogic.com.