A Planogram can be described as a visual diagram or drawing which gives the retailers an idea about the correct placement of products in their retail stores. The optical drawing which is highly complicated works in the form of a flow chart for each and every merchandising department of the store. The drawing highlights the shelf and the aisle on which items have been positioned and it also shows the quantity of the products. It works in the form of an effective tool that is used throughout the industry and is considered one of the most common methods of maximizing sales.
The System Used for Creating Planograms
The procedure of planning and then implementing a Planogram tends to be highly sophisticated. The procedure requires artistic inspiration and scientific knowledge as well. The process of creating Planograms involves the use of merchandising theories and rules based upon market and optical research and it is completely dependent on psychological art. Planograms are tools which are produced even before a particular product gets to the shop floor. It is of immense use for a retailer, especially when the retailer requires multiple store exhibits and at the same time wants all the exhibits to possess the same feel and look. There are many goods manufacturers who come up with suggested versions of this tool for accompanying some of the latest products that they have in store.
How are Planograms Used?
Improved sales and product placement are the two most important areas where well-implemented Planograms can work in the most effective manner. There are other improvised considerations like maximized potential of selling to each square foot of space; tightened inventory control and improved visual appeal including the ease of product replacement for staff. Designs in Planograms are available in varied forms. FMCGs or Fast Moving Consumer Goods organizations along with supermarket chains make use of box and text based layouts. The main objective of these organizations is optimizing shelf space and increasing profit margins as well as inventory turns. Mainstream retailers and apparel brands mainly pay attention to the overall presentation. They make use of Planograms in pictorial style for demonstrating the feel and the look of their store and even for the purpose of identifying each and every product.
Planogram structures have the potential of displaying a few products on the shelf an there are even detailed mechanisms including numbered shelf notches and peg holes which show the exact product placement. The system generally differs for different retail premises. The effectiveness of setting up Planograms is measured by sales and profit volume. Sales are likely to increase if a retailer makes use of a system that is very well integrated and configured. Retailers always look forward to meeting certain derivative targets with the use of Planograms and these derivative targets include:
- Communicating on the procedure of setting up merchandise.
- Ensuring enough inventory levels of exhibit or on shelf.
- Using available space in an effective manner.
- Facilitating communication of the brand identity of the retailer
- Assisting in the procedure of store mapping.