Planograms are an essential tool in optimizing the display of product and merchandise within a retail environment. They provide a visual representation of the layout of a store, and how the various products should be placed to maximize efficiency and appeal to customers. They are also a helpful tool for businesses to create a uniform look and feel throughout their stores, enabling them to quickly and easily identify areas that need improvement. With an effective planogram, businesses can position their products for maximum visibility and increase product sales.
The term ‘planogram’ can be unfamiliar to some, but it is in fact an important tool for businesses of any size, from small independent stores to expansive department stores. In this blog post, we will explore what planograms are, the benefits they provide, and how they can help businesses to increase product sales and overall efficiency. We will also look at the different types of planograms and how to create one that is tailored to your business.
Benefits of planograms in merchandising
Here are some benefits of using planograms in merchandising:
Creating consistency
Using planograms is especially beneficial for chain stores. It establishes consistency in the designs and aesthetics of various store locations. As a result, customers have a better overall experience because they can easily find the products they need.
Driving sales
In order to create efficient sales strategies, planograms focus on organizing products according to customer preferences and sales. You can determine the best sales locations in your store by consulting previous sales data based on which products sold the most and where they were located. Similarly, you may be able to map potential shopper routes. This enables you to group related items that customers need together to promote additional purchases, or you can place necessary items apart on different sides of the store to encourage customers to make impulsive purchases all over the place.
Improving visual appeal
A complex process called planogram creation places goods in the store based on where they might sell the best and where they might look appealing. This typically creates more visually pleasing stores. For instance, it might group related items together or put packaging items that complement one another close together.
Managing inventory successfully
Effective planograms encourage improved store organization and help you determine how much of a particular product you need and can store. This encourages better inventory management, ensuring that your store has the necessary inventory and space for customers. Due to their ability to more accurately assess what they are accountable for within the store, larger retailers who work with third parties may find this to be advantageous.
Maximizing space
You could make the most of your store’s space by using a planogram. You must designate a specific use for each space in your store before you can create this diagram. Referencing sales data throughout this process also ensures that you make the best use of the available space by positioning the right goods in prime sales locations.
Increasing customer satisfaction
Putting your stores in a more logical order could increase customer satisfaction. Typically, planograms assist you in naturally creating environments where customers enjoy shopping and can quickly locate what they need. Similar to how many customers appreciate the uniformity that planograms achieve across various locations
Improving employee performance
Implementing planograms may help improve employee performance. They designate a specific location for all products, enhancing employee knowledge and enhancing customer service. Employees may feel more empowered to succeed as a result, increasing their confidence at work.
What is a planogram?
A planogram is a visual marketing tool that is frequently included in a larger visual marketing strategy. The precise arrangement of stores is established by a schematic drawing, model, or plan. It shows potential store sections and where they might be located. Additionally, it details the precise locations of each product by aisle, display, or point of sale. Planograms are extremely detailed and offer instructions for positioning each unique product to produce uniform, methodical displays.
Other names for planograms include:
How to use planograms in merchandising
Follow these steps to create and use planograms in merchandising:
1. Consult with an expert
Think about your businesses, goods, and clients as you come up with possible planogram layout improvements. Consider consulting with a specialist to determine the best planogram for your store as you consider potential ideas. If you are unable to hire a specific planogram expert, you might be able to hire an outside visual merchandiser or assign a visual merchandiser on your team the task of creating one.
2. Find a planogram software
Initial planogram ideas can be drafted with a pencil and paper, but it’s frequently advantageous to formalize them using digital tools. Explore the variety of planogram software programs available. The best choice for your project may depend on your industry or the unique requirements of your store.
3. Build a planogram
Create your planogram based on your research and rough sketches. Use one of the templates provided by your software of choice. Organize your store into distinct sections, give each section a project, and decide how to display each item on the shelves or other fixtures.
4. Implement the planogram
Finalize your planogram, then implement it in your store. Give the required associates access to digital versions of the planograms or physical copies of them. You could also instruct your staff on what a planogram is and how to use one. Guide your staff in reorganizing the shop’s inventory in accordance with the established schematics.
5. Review and update it
It’s important to regularly review and update your planogram, and these updates might only apply to a few rotating departments or the entire store. This might happen frequently in your store depending on the natural sales cycles or seasonal updates. To help you decide where to place specific products, consult sales data from earlier periods to find your store’s busiest areas.
Tips for using planograms
Consider these tips when using planograms:
What is Planogram In Retail? | Importance of Planogram
FAQ
What do you mean by a planogram?
A planogram is a diagram that illustrates how and where particular retail products ought to be arranged on store shelves or displays to encourage customers to make more purchases. Merchandising and retail space planning both use the skill of planogramming. A planogrammer is someone who possesses this talent.
Why is planogram important?
A planogram not only specifies the store layout but also ensures uniformity across all retail activities. The ability to centralize the sales strategy by dictating product layouts is provided by a planogram. As a result, regardless of the store they visit, the customer experience will be consistent.
How do you make a planogram?
- Measure each of your fixtures. Depth and width of each shelf or rack section.
- Decide exactly where to put each item. Don’t just place products anywhere.
- Draw your planogram. Whatever format you decide, keep in mind that the planogram will likely be used by someone else to stock and maintain displays.
