Физичко позиционирање на производот во малопродажните објекти и негово влијание врз продажбата и профитабилноста

Abstract

Shelf space is the scarcest resource of retailers. Optimal use of shelf space results in increased productivity of this expensive retailer’s resource. This paper examines real-life shelf space allocation problems that arise due to limited shelf space and large number of products that need to be displayed. Managing shelf space in terms of quantity (number of faces of the given product on the shelf) and in terms of the location of the product on the shelf are two potential ways of increasing sales of a given product. This paper elaborates in full the shelf positioning practice in supermarkets in the Republic of Macedonia, in which respect input from three sources (supermarkets, producers and customers) is obtained. Several aspects of shelf space allocation are discussed. The influence of shelf space allocation on product sales is considered. Furthermore, the decision-making process of shelf space allocation in supermarkets is examined i.e. whether managers in supermarkets use category management. The problem is considered also from the perspective of producers of bottled water in the Republic of Macedonia. Several important issues are examined: negotiating terms with supermarkets for better positioning of products, the costs for obtaining better position for products and the level of satisfaction with the cooperation in this respect. Having in mind that better product positioning influences customers’ attention, as an important determinant of purchasing, it is also examined whether customers better evaluate products that have more faces and are placed in a better, i.e. premium shelf position. Based on obtained results, specific steps for improvement of shelf space allocation are proposed. These steps aim to increase profitability of supermarkets and producers and to create better customers’ shopping experience. The paper also examines non-economic benefits of improved shelf space management, which have a long term effect and create trust and loyalty for three parties (supermarkets, producers and customers). Recommendations are made for further examination that would contribute to further improvement of shelf space allocation and development of category management in the Republic of Macedonia.