Planogram is also known as planogram or POGs is a visual representation or a scheme that shows where and how the retail products should be placed on the shelves in order to boost sales. It is a tool used for visual merchandising. It helps to dictate the layout of a retail store so that the store can plan the space required by a particular product in a better way. A person who has the skill of planogramming is known as a planogrammer who uses a planogram software to create the scheme.
By taking in account the past and the present sales pattern, the planogrammer tells you how high or low a product should be placed on the shelf or which products should surround it. These are often used in large retail space planning and the space management software applications. The planogram might be a complex one for a very simple one depending upon the need of the retailer and the size of the store.
Reasons to use Planograms
Customers seem to buy products in a store that are placed in an attractive way. Planograms help the retail stores to place the products in such a way that it attracts more customers while managing the space in the store as well. Using the planograms helps in increasing the sales. There are other benefits of using a planogram as well.
- Improved and accurate positioning of the product
- Helps in having a better perceptible appeal to the customers
- Helps to avoid setbacks caused due to lack of communication
- Helps in having a better control of the out of stock situations
- Helps in a speedy restock of the products
Basic way of creating planograms
Creating a planogram depends upon the needs of the retailer and the products that the store sells. It varies from store to store but, there are a few basic rules of creating an efficient planogram that will help in boosting the sales of a store.
- Assigning a place to every product type depending upon the amount of sale of the past and the present month
- Providing more space to products that have recorded good sales in the past or the present month
- Positioning the related products in a single location so that it is easier to locate
- Placing the low involvement products next to the high involvement goods or hot commodity products
- Placing goods in a noticeable location of the store that is advertised to make it easier for the customer to find it
A professional diagram made using the planogram software should be made as detailed as possible to make it easier for the employees to manage the stocks by placing them in the correct order and managing over all the out of stock products. A planogrammer will make suggestions regarding the number of facings a product type should have on the shelf that will help in successfully managing everything. Advanced applications use a lot of other information about a product to build the planogram. The diagram can be very simple and include just an image or be detailed depicting the exact position and shelf notches of each item.
