The impact of shelf height and price tag design on sales: A study of general merchandising at Shwapno, ACI Logistics

Abstract

This report presents a comprehensive overview of my six-month internship experience at ACI Logistics Limited ; Shwaono, where I worked as a Category intern in the General Merchandise (GM) category. The primary focus of this report is to analyze the impact of merchandising elements, particularly shelf height and price tag design, on sales performance, while also providing insights into the company’s overall business operations, marketing practices and strategic positioning. During my internship, I was directly involved in the communication aspects of the GM category, which allowed me to closely observe how pricing, promotions and merchandising decisions are made and executed. Through both practical exposure and data analysis, it became evident that Shwapno operates through a highly integrated and data-driven system supported by ERP tools such as SAP, Salient and EPS. These systems play a crucial role in tracking sales, managing inventory and enabling informed decision-making across departments. The findings of this study highlight that merchandising plays a significant role in influencing customer purchase behavior. Products placed at eye-level shelves tend to generate higher sales due to better visibility, while clear and strategically designed price tags significantly improve customer engagement and conversion. At the same time, inconsistencies in execution across outlets and limited optimization of merchandising strategies indicate potential areas for improvement. In addition to merchandising analysis, the report evaluates Shwapno’s leadership style, human resource practices, marketing strategies and operational efficiency. Its customer-centric marketing strategy, supported by competitive pricing and strong offline presence, has helped Shwapno establish itself as the leading retail chain in Bangladesh. However, gaps remain in digital marketing innovation and full omnichannel integration. Based on the overall analysis, several recommendations have been proposed, including optimizing shelf placement strategies, improving price tag design, leveraging data analytics for personalized marketing and strengthening digital engagement. These recommendations aim to enhance operational efficiency, improve customer experience and support long-term growth. Overall, this internship provided me with valuable hands-on experience in retail operations, category management and data-driven decision-making. It also allowed me to bridge the gap between academic knowledge and real-world business practices, particularly in the context of a fast-growing retail industry like Bangladesh