Merchandising Programs in Trade Marketing: Why Planograms Drive Success for FMCG Companies

In the world of Fast-Moving Consumer Goods (FMCG), the battle for consumer attention is fought on the shelves of retail outlets. No matter how strong a brand’s advertising or digital presence may be, the ultimate purchase decision often happens in-store—within just a few seconds. This is why merchandising programs play a critical role in trade marketing, and why tools like planograms are at the heart of FMCG strategies.

What is a Merchandising Program?

A merchandising program is more than just arranging products on shelves. It is a strategic initiative that ensures products are displayed in a way that:

• Maximizes visibility,
• Encourages consumer purchase decisions, and
• Aligns with brand objectives as well as retailer requirements.

From shelf displays and end caps to point-of-sale material and digital signage, merchandising programs help brands stand out in a crowded marketplace.

Why Planograms Matter in FMCG

At the core of merchandising lies the planogram—a visual diagram or blueprint that dictates how and where products should be placed in a retail environment. For FMCG companies, planograms are not just operational tools; they are growth drivers.

Here’s why they are so important:

1. Maximizing Shelf Impact – With dozens of competing products on the same aisle, placement determines visibility. A planogram ensures the right product is at the right eye level, making it easier for consumers to notice and select.
2. Driving Sales Uplift – Studies consistently show that strategic product placement leads to higher sales. By placing top-selling or new products in prime positions, FMCG companies increase the chances of conversion.
3. Consistency Across Markets – For brands operating nationally or globally, planograms provide a standard guideline. This ensures that whether a consumer shops in Lahore or London, the brand’s visibility and display remain consistent.
4. Better Retailer Relationships – Retailers value efficiency and sales performance. By using well-structured planograms, FMCG companies help retailers optimize shelf space, reduce clutter, and improve category management—leading to stronger trade partnerships.
5. Data-Driven Decisions – Modern planograms are powered by data—sales analytics, shopper insights, and even AI-driven forecasts. This allows companies to place products where they perform best, rather than relying on guesswork.

Why FMCG Companies Invest Heavily in Planograms

Implementing planograms requires significant investment—in research, design, field execution, and monitoring. But FMCG companies continue to allocate large budgets to these initiatives for three main reasons:

1. Competitive Advantage – Shelf space is limited, and every inch counts. Investing in planograms ensures brands don’t lose ground to competitors.
2. Return on Investment – The uplift in sales from effective shelf planning far outweighs the cost of implementation.
3. Consumer Behavior Influence – More than 60% of purchase decisions are made in-store. Strategic placement directly influences impulse buying and brand switching.

Beyond Shelves: The Future of Merchandising

As technology evolves, planograms are no longer static. Today, FMCG companies use real-time shelf monitoring, AI-driven planograms, and even augmented reality tools to enhance execution. The future of merchandising lies in blending data science with creativity, ensuring that consumers not only see a product but also feel compelled to pick it up.

👉 Final Thought: In trade marketing, shelf placement isn’t just logistics—it’s strategy. FMCG companies invest heavily in planograms because they understand one simple truth: the battle for market share begins where the consumer’s eyes land.