What is planogram
Planogram (POG) is a scheme or diagram depicting how the retail products should be placed on the shelves to increase sales. They are used in visual merchandising and help stores plan space and good look.
Why use planograms
Since planograms are used to effectively manage space in retail stores to make products more attractive to shoppers, their usage leads to increased sales. POGs also offer additional advantages such as:
- Precise and better related product positioning;
- Forming better visual appeal for customers;
- Easier control of out-of-stocks reduction;
- Faster product restock;
- Avoidance of delays caused by miscommunication.
Planogram may be simple or complex depending on the size of the shop and the need of the retailer. Planograms can be as simple as an image of some store section or more detailed with numbered positions and shelf notches indicating exact position of each item.
Rules of creating planograms
Though retailers and stores have specific needs and sell different types of products, there are some basic rules for drawing an efficient planogram:
- Allocate space for every product type corresponding to its sales;
- More space to retail products that have good sales or that are advertised;
- Position advertised products in more observable locations of the store;
- Place low involvement goods next to hot commodity goods;
- Group related products in a single location.
Obligatory planogram elements
A professional planogram should be as detailed as possible to make it easy for shop employees to restock products and manage out-of-stocks. Here are basic planogram elements:
- Range of products - list of SKUs that should be offered in the shop;
- Amount of each provided SKU;
- Minimal acceptable amount of goods for each SKU;
- Definite location of the sales area, its size and square;
- Certain positioning of goods in the first raw of the shelve;
- Order or positioning of different SKUs of one brand;
- Additional comments related to product positioning in a definite shop.
How to create a simple Planogram
The easiest way to draw a planogram is to use special software such as Grapholite.