• Definition: Visual description, diagram or drawing of a stores layout to include placement of particular products and product categories.• Also Known As: plan-o-gram, POG• Common Misspellings: planagram
• Received before a product reaches a store.• Are useful when a retailer wants multiple store displays to have the same look and feel. (UNIFORMITY)
PURPOSE …• To communicate how to set the merchandise .• To increase customer purchases.• To adjust the visibility, appearance and presence of products.• To make them look more desirable.• To ensure sufficient inventory levels on the shelf or display.• To use space effectively whether floor, page or virtual.• To optimize short- and long-term returns on investment.• To provide a logical, convenient and inspiring product- customer interface.• To make right selection of products available.• To facilitate communication of retailer’s brand identity.• To maximize profit per centimeter of shelf space.• Understand the relationship between space, sales and profit
Depends on the Retail Sector• Fast-moving • Apparel brands and consumer goods retailers are more organizations and focused on supermarkets largely presentation and use use text and box pictorial planograms based planograms that illustrate "the that optimize shelf look" and also identify space, inventory each product. turns, and profit margins.
• There are some consulting firms which specialize in retail space layout and Planogramming.• Some chain stores and wholesalers also create and maintain planograms for their stores.
Understanding the Retail PlanogramThese schematics not only present a flow chart for the particular merchandise departments within a store layout but also show on which aisle and on what shelf an item is located.
• A planogram should also illustrate how many facings are allocated for each SKU.• Facing: create the look of a perfectly stocked store (even when it is not) by pulling all of the products on a display or shelf to the front.• SKU: is an identifier that is used by merchants to permit the systematic tracking of products and services offered to customers.
• The complexity of a planogram may vary by the size of the store, the software used to create the planogram and the need of the retailer.• Planograms can be as simple as a photo of a preset section or more detailed with numbered peg holes and shelf notches showing exact placement of each item.
Market Research Coupled with Technology Provides Practicaloutcomes and retail intelligence for: • Manufacturers • Distributors • Retail designers • Store managers • Lighting designers • Suppliers • Sales and Marketing teams