What is Product Placement Strategy?

In retail, product placement strategies are the strategies related to placing products in stores. This is a combination of visual merchandising, product display strategy, and store layout. 

Who is Involved?

Retailers and Brands have to collaborate when it comes to product placement. Retailers and brands alike want to utilize smart, eye-catching product placement to drive sales, and need to work together to optimize revenue.

Why Does It Matter?

Today, consumers have many options to choose from and standing out becomes increasingly important, especially when they can buy products from the comfort of their living room. Research has shown that shoppers prefer going to stores to touch and feel products, and for the experience and entertainment value. Successful retailers take the 'touch-and-feel' to the next level, like Apple. Everything in the apple store is about experiencing and trying the product. A growing number of online retailers are opening "showroom" retail locations so that their customers can experience the product before buying. 

 

What Are the Challenges?

One of the challenges of product placement strategy is to reach an agreement between brands and retailers. The other major challenge is to properly execute the strategy in stores. Retailers, brands and 3rd party labor companies use retail execution software to distribute work, manage task and verify that product placement strategies are executed smoothly.

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