What is CPG Merchandising?
Consumer Packaged Goods (CPG) merchandising is the strategic approach retailers and brands use to present, promote, and sell everyday products. These include food, beverages, household items, and personal care goods—products that consumers regularly purchase and replenish. Effective merchandising allows not only to increase sales, but also to increase customer loyalty, reduce costs and improve operational processes.
Main tasks of CPG merchandising:
- Assortment management: selecting the most in-demand products for a particular outlet, region or target audience.
- Visual layout: placing products on shelves in a way that maximizes their appeal to shoppers.
- Availability control: preventing empty shelves and overstocking, especially important for perishable goods.
- Performance analysis: collecting and processing data on sales, demand and customer behavior.
- Incentivize impulse purchases: use of promotional materials, promotions and special offers.
CPG Assortment Optimization as a Factor of Sales Growth
Optimization of CPG assortment is one of the most important aspects of effective merchandising. Insufficient or excessive number of items in the product line can lead to lower turnover and profits. Therefore, it is important to analyze sales data and adapt the assortment according to the real needs of consumers.
Optimization methods include:
- Analyzing sales data by category.
- Evaluating seasonality and trends.
- A/B testing of different product groups.
- Product rotation management.
Automating these processes with CPG's specialized merchandising software can reduce time spent and improve the accuracy of decisions.
How to Optimize CPG Assortment
A crucial aspect of effective merchandising is CPG assortment optimization—the process of curating the ideal product mix to satisfy consumer demand while maximizing profitability. Retailers must balance core products with seasonal and innovative offerings to maintain shopper interest.
Best practices in assortment optimization include:
- Data-Driven Product Selection: Utilizing sales history, market trends, and customer preferences to determine the best-performing SKUs.
- Regional Customization: Adjusting assortments to cater to specific local preferences and purchasing behaviors.
- Category Management: Organizing goods in a way that enhances cross-selling opportunities and encourages shoppers to explore related items.
- Inventory Rationalization: Identifying slow-moving products and replacing them with high-performing alternatives to prevent shelf stagnation.
By employing a data-centric approach to assortment planning, retailers can increase sales while reducing waste and excess inventory.
PlanoHero: The Ultimate Solution for CPG Merchandising Excellence
With the advancement of technology, manual methods of merchandising management are gradually giving way to digital solutions. Innovative tools help automate merchandising and analyzing data in real time. For example, mobile apps and cloud-based platforms allow you to track inventory, manage layout and monitor merchandising standards without having to be physically present in the store.
One such advanced solution is PlanoHero. This is a powerful tool for creating and controlling planograms and merchandising plans, which greatly simplifies the work for both retailers and CPG-product manufacturers. The service offers a convenient mobile application that allows you to make real-time changes to the layout, track merchandisers' performance and analyze sales efficiency.
CPG merchandising is not just about managing the layout of merchandise, but a comprehensive process that includes analytics, strategic planning and innovative technology. Automation, digital tools and software help businesses maximize efficiency and optimize assortment performance. Using modern solutions such as PlanoHero can significantly improve process control, reduce costs and increase sales.
Companies that plan their merchandising strategies and use advanced technology consistently succeed in the FMCG market. In the era of digitalization, the integration of innovative solutions is becoming not just an advantage, but a necessity for effective business development
Looking for a service to create planograms?
Try a free demo version of PlanoHero