What Is A Planogram & How Is It Used? 

1. What is a Planogram? 

A Planogram is a space planning tool. Planograms are a comprehensive representation of a retail shelf focusing on the product level, this visual merchandising tool display products in a 3D visualization considering real size, shape, and design. The main purpose of Planogram is to increase sales by grouping and organizing products in a way that not only creates beautiful and interesting displays but also organizes and presents the products by their profitability. To create a successful strategy using Planogram is essential to have access to the product data to analyze the profitability of each of the items to define the best allocation of them on the shelf. 

The best practices of Planogram and its strategies are largely known especially in the retail industry. These guidelines are largely followed in many industries because they potentialize the consumption of the products and, consequently, the profit margin of these items. Even businesses that do not have an organized store layout, or space planning strategy defined still tend to follow similar rules based on customer activity and sales reports. 

2. The benefits of a Planogram – 

Planograms are a great way to handle and manage merchandising initiatives because retailer space is limited, and the stores can only hold a certain number of products and display different brands successfully on their floor plan. An effective planogram helps sort the products on the shelves according to their monetary return organizing these sections to increase profitability. The shelf space has different values, and these values are based on where in the shelf customers tend to pay more attention and consequently purchase more. These areas are usually on the average eye level of the customers. There’s a reason why a brand like Coca-Cola is on display in a way that you can always find it in a store. This allows for the retailer to have negotiating power with brands and merchandise, and even possibly sell their ‘shelf space’ to up-and-coming brands. This depends on how much space a retail location can give up, and the price that will be spent by the brand for its product display. 

An efficient planogram is an organizer’s best friend. It is that blueprint that is needed to stay organized and profitable according to consumer demand. It is a visual representation of product images in a 3D shelf layout that helps the management of stock and the restock of items in the retail space. It goes beyond sales-related activities and helps operations infinitely. 

3. How to make a Planogram – 

It starts with a planogram strategy that is created based on positioning the products in the best way possible based on data to maximize sales. It is recommended to hire a Planogram professional to provide an understanding of consumer behavior, category management, and visual displays strategies for retail. A rough sketch and drawing can start the initial schematics, but then it is necessary to use a planogram software coupled with real product measurements. These are acquired by measuring the dimensions of each product individually in accordance with the shelf space available. The retail store shelves need to be measured as well to create the most realistic representation of that retail space possible, including the distance between fixtures in an aisle to make sure there is enough physical space. Not forgetting to build out alleys so consumers can switch between the aisles. 

It is important to know the sales trend of each product being sold to decide where the best product placement location for that specific item will be. It is also necessary to do the setup of the planogram design based on cross-selling. If the section consists of selling sports jerseys, is recommended to place jersey shorts and sneakers within the same space plan/shelving or close by since it will help to establish maximum sales efficiency. 

If you want to maximize revenue, it is recommended to use planogram best practices. 

Firstly – visual branding and appeal are important. It is not just about stacking as many products as possible but also having them on display in a visually appealing way. This is called “visual merchandising” and its best performance is achieved when it is based on a balance between the planogram and the data analyzed. 

The planogram is used as a map for the shopper. It is built in a way that there’s a sense of logical cooperation between the products, and sales data that the customers are not always aware of. The product placement per category makes it convenient for the clients to search and find products. Planogram’s strategies and configuration come to life at this time when the shelf layout is designed in a specific way that grabs the attention of the customer, and by displaying the right products in certain locations’ clients will feel more prompt to purchase. 

4. Examples of Planograms – 

Planograms are visual merchandising tools that can be created either manually or digitally. Digital Planograms create with planogram software are the most recommended and widely used since they can build a more realistic view of the shelf. The software usually has one master layout page, where each section has its own page, built out with all the measurements and images of the actual products and shelves. The visualization of the products is key, as it helps to quickly see everything in one location. In fact – the planogram is basically a visual representation of your actual store and can be digitized to recreate a 3D model virtually. 

5. How Analyticsmart can drive revenue through Planograms – 

Planograms are the backbone of an entire in-store operation and customer journey. The retail industry relies on strategies and consumer behavior to understand how visual appeal can increase sales sales by enhancing the shopping experience. 

Analyticsmart has extensive experience of more than 15 years of retail planogram, allowing us to provide accurate and reliable analysis of sales data that is crucial for any business success. The merchandising solutions offered by Analyticsmart are customized to specific business needs creating unique insights. Learn more about how Analyticsmart can serve your planogram needs and maximize revenue. 

Since our focus is data, our aim is to increase efficiencies across businesses, with our main focus being on boost sales and revenue. 

In addition to using our platform and our experts, we will provide you with consistent and updated reports that allow you to make actionable decisions quickly and pivot the existing layout as needed. 

Planograms are just one of the many products and services that Analyticsmart offers to help you to transform your data into insightful recommendations, which helps your business to thrive by focusing on delivering an ecosystem of growth. We also provide on-site support and consultations to assist in managing your forecasting needs. 

6. Frequently asked questions. 

6.1 How to use a Planogram to increase revenue? 

Our “data first” mentality cuts away from the hearsay. Every market is different, every business is different, and every retail store is different. What works in one place may not work somewhere else, even if everything is identical. We collect and provide insights based on the data coming from your business, translating it to make sure it is readable and actionable. This is not some hot trend either, but actual information that is related to your results on-site. It allows our clients to understand where the success and the pain points in their business are providing accurate management by the elimination of what is bad and maintaining and enhancing what is good. 

6.2 What is a supermarket Planogram? Can I outsource it? 

The retail industry is complex, especially within the supermarket and Customer Package Goods (CPG) business. This type of business requires extensive management of operations including inventory management and organization of products/store layouts daily. Planograms are useful to those industries not only for space planning solutions but also to increase the opportunities and profitability of the business, and that is what Analyticsmart is specialized in. We want to be your partner in planograms, so you can focus on the business, while we focus on making sure your items are placed in a way to sell and sell at their best. 

6.3 Do I need a Planogram? 

The short answer is, only if you want to succeed and drive sales. Planograms are necessary more than ever now. They serve as a way to maximize sales, manage inventory effectively and help support online sales and deliveries, as they are maps to where all the items are located. 

6.4 What is Planogram compliance? 

After defining the strategy and the visual merchandising plan, the planogram compliance consists of following the design that was been created in the planogram to achieve results at the store level. 

Contact us to learn more our planogram services for CPG industry today for a FREE consultation.