A good product does not always guarantee shopper attention. In retail stores, products compete for attention through shelf space, product placement, displays, and visibility.
For FMCG companies, product positioning involves more than deciding where a product should be placed on a shelf. Factors such as product placement, number of facings, product grouping, and shelf level can influence how shoppers see and interact with a product.
A well-planned product position can help brands improve visibility at the point of purchase. However, creating a planogram is only part of the process. FMCG companies also need to monitor its execution across outlets to ensure the planned product placement is applied correctly.
What Is Product Positioning?
Product positioning in retail refers to how and where a product is placed within a store or on a shelf. It includes several elements that influence how easily shoppers can find and notice a product.
Key elements include:
- Shelf level
- Product placement
- Number of facings
- Product grouping
- Category arrangement
- Display placement
For example, a beverage brand may place its high-demand products at eye level and group similar products together. The goal is to create a shelf arrangement that supports product visibility and makes the category easier for shoppers to navigate.
Why Does Product Positioning Matter?
Shelf space is limited, while retailers carry many products within the same category. Product positioning helps brands decide how each SKU should be placed and how much shelf space it should receive.
- Support Purchase Decisions
A clear shelf arrangement helps shoppers find products and compare different options. Grouping related products can also help shoppers navigate the category and understand the available choices. - Improve Product Visibility
Products placed in visible areas have a better opportunity to attract shopper attention. Shelf level, number of facings, and product placement can affect how prominently a product appears on the shelf. - Maximize Shelf Space
Each shelf has limited space, so brands need to decide how much space to allocate to each SKU. Product performance, demand, and role within the category can help determine the number of facings and shelf allocation. - Support Sales Performance
Product visibility gives shoppers greater exposure to a product at the point of purchase. Product positioning can support sales performance when the placement matches shopper behavior and product demand.
How Do Businesses Position Their Products
- Use Planograms to Plan Product Placement
A planogram is a visual guide that shows how products should be arranged on a shelf or display. It can define the position, number of facings, product grouping, and shelf allocation for each SKU.
For example, a planogram for a beverage category may specify:
- Brand A: 4 facings on the middle shelf
- Brand B: 3 facings on the middle shelf
- Brand C: 2 facings on the lower shelf
- New product: 2 facings near the category entrance
A planogram gives sales and merchandising teams a clear reference for product placement at the outlet. - Consider Product Performance
Not every SKU needs the same shelf allocation. Product sales, demand, promotion, and category role can help determine how much space a product should receive.
High-demand products may need additional facings to maintain product availability and visibility. Promotional products may also receive a specific position during a campaign.
Comparing sales data with shelf placement can help brands assess whether products receive enough visibility based on their sales potential. - Monitor Planogram Execution
Creating a planogram is only one part of product positioning. The next step is making sure the planned arrangement is actually applied at the outlet.
During store visits, sales and merchandising teams can check:
- Product availability
- Shelf position
- Number of facings
- Display placement - Planogram compliance
For FMCG companies managing a large outlet network, monitoring shelf execution across locations can become a major part of field operations. A planogram may look correct on paper, but the actual shelf arrangement can differ from one outlet to another. - Utilize Technology to Monitor Product Positioning
Planogram software can support product positioning across a large number of outlets. Image recognition can process shelf images and provide information about product placement, facings, and shelf arrangement without requiring teams to review each image manually. The information can then be used to compare execution across outlets, identify patterns, and see which locations need attention.
Make Every Shelf Space Count with BOSNET Vision
Maintaining planogram compliance across a wide outlet network requires visibility into how products are positioned at the point of sale. Manual store checks alone may not give FMCG teams a complete view of shelf execution across outlets.
BOSNET Vision enables FMCG companies to manage shelf execution effectively. The system monitors actual store conditions, automatically evaluates visibility levels, and identifies compliance problems. This helps sales and merchandising to respond quickly, coordinate their strategies, and safeguard brand visibility at the point of sale.
Contact us to learn how BOSNET can elevate your product positioning.
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