30-Sec Poll: POG Compliance

Planogram Compliance Measures: Low Tech and Lightly Used

Feb. 18, 2009 – Measurement of planogram compliance is a decidedly low‐tech matter. More than one third of respondents to the latest ISI Network 30‐Sec Poll (35%) indicated that they have no process in place whatsoever to track planogram compliance. Those that answered “yes” rely heavily on spot checks (49%) and store manager sign‐offs (46%).

Retailer reliance on third parties is also commonplace. “Use of 3rd party reline team to implement required changes,” said one retailer respondent. “A merchandising team does them.” said another.

Manufacturers can be similarly dependent: “Our bottling network is responsible for POG compliance,” offered one respondent. Another reports an inferential method, “Data pull randomly to verify variety and authorized items.” A third respondent offered, “Visual, random store checks used as well.”

Expense may be a key reason why compliance measurement has lagged. Said one respondent: “[The] problem is that compliance degrades over time, requiring continuous, costly surveys.”

30sec2Poll results show that technology-enabled solutions are in place at a relative minority of firms. Newer reporting technology for direct measurement, such as digital video or image analysis, is in use by only 12% of respondents. About one in six respondents (18%) reported use of wireless hand-held devices for self-reporting. More than a third (37%) enable self reporting using online tools. Interactive voice response (IVR), the technology of choice for merchandising services organizations a decade ago, seems to be far less relevant today – just one respondent indicated this tool was in use.

The latest ISI Network “30-Sec Poll” asked manufacturers, retailers, solution providers, merchandising services organizations and sales and marketing agencies brief questions about their current In-Store Implementation practices. In coming weeks, additional 30-Sec Polls will continue to explore a variety of ISI-relevant topics and report the findings to the industry.

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