The Line Review Cycle is the annual process by which product manufacturers pitch retailers on “why our products should be sold on your shelves.” This annual process has been the standard in the retail industry for decades and could be considered a necessary evil by retailers and packaged goods manufacturers alike. The ultimate goal of the Line Review process is to deliver winning planograms – detailed visual ‘maps’ showing where products will be displayed on retail shelves – which create an optimal experience for the shopper and drive sales and profits over and above category targets.
Line Review meetings are delivered in person, generally via PowerPoint, with new item sample boxes nicely displayed on the table to showcase the latest and greatest from the manufacturer. Over the course of a week or several weeks, after meeting with numerous manufacturers, the Retailer modifies their planogram for a particular product category in order to deliver what they feel will be the best use of shelf space. This updated planogram is an electronic file, showing the shelf or retail environment as a flat, two-dimension image.
*image courtesy of BetterRetailing.com
But what really happens to the planogram, the fruit of all this labor? Once the stores use it to set their shelves, the planogram tends to end up in a file and perhaps dusted off and used as a starting point when the next Line Review is put on the calendar.However, the opportunity to make any changes to the shelf displays usually has to wait until a new planogram is developed during the next planning cycle.In a way, it’s a rather two-dimensional static planning process that repeats itself season after season and year after year.
With increased competition from a brand standpoint in most retail categories, a productive shelf has never been more critical at retail. So why is the ‘set it and forget it’ category planning cycle so prevalent? If a product isn’t selling, or performing better than expected, why aren’t retailers more open to quickly adjusting their shelf space to maximize the opportunity? Making changes to shelves goes beyond just product sales, since it also affects the critical “Shopper Experience,” which would factor in how the shopper is responding to the display or retail layout.In addition to ensuring customers can find their products easily, a positive shopper response to a display or layout can drive brand loyalty. And what about compliance issues? Compliance is a massive problem for both consumer packaged goods Manufacturers and Retailers, as misplaced or missing SKUs could mean lost sales opportunities and dissatisfied shoppers.
We believe these concerns regarding the current use of planograms point to critical issues within the retail industry. Retail is not a static ‘2D’ environment, it’s a 3-dimensional real-world execution that shoppers interact with daily. By implementing 3D virtual technology, retailers can completely change the game of traditional Line Reviews and category planning:
- Envision the store in 3D to experience how a product will appear on the shelf/display
- Provide a much deeper context and vision to category management solutions
- Understand how signage/navigation cues can help the shopper
- Test displays with shoppers easily to validate decision trees and glean shopper insights
*Dassault Systèmes Perfect Shelf solution provides immersive 3D life-like virtual store environments
The technology used to envision home and garden design is now helping the CPG and Retail Industry to drive better and faster decision-making.Additionally, technology is now available to connect the shelf electronically to the planogram in order to create a live virtual twin of the store in order to read compliance levels, track inventory in real-time, and to help make the best decisions possible within a continually improving process that leaves the ‘2D’ world in the past!
We invite Retailers to register for a complimentary Retail Expo Pass too. This provides you access to 3 days on the EXPO Hall at Retail’s BIG Show—completely free.
[cf]skyword_tracking_tag[/cf]
