Planogram

• Definition: Visual description, diagram or drawing of a store's layout to include placement of particular products and product categories.

• It is a diagram created from photographs, computer output, or artists renderings that illustrate exactly where every SKU should be placed

• Also Known As: plan-o-gram, POG

• Received before a product reaches a store.

• Are useful when a retailer wants multiple store displays to have the same look and feel.

(UNIFORMITY)

Planograms essentially should have

• It should be visually appealing• Represent the manner in which a consumer shops ( or the manner in which

the retailer would like the consumer to shop)• And embody the strategic objectives of the corporation.

There is an art and a science to planogramming.the art is in ensuring that the proper visual impact and presentation is maintained;the science is in the financial analysis portion.

• The planogrammer must be able to balance these two elements in creating a planogram that is best for the store.

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

PURPOSE …

• The productivity of space is measured by using sales per square foot of area, since rent and land purchases are assessed on a per- square-foot basis.

• When allocating space to merchandise the profit impact on all departments are considered. remember ,the objective is to maximise the profitability of the store,not just a particular department.

PURPOSE …

• Since the cosmetic department has a realtively high gross margin per sqaure foot,should management give it more space or less space ?the answer depends on whether profitability of the entire store would increase if more space were allocated to this department

Depends on the Retail Sector

• Fast-moving consumer goods organizations and supermarkets largely use text and box based planograms that optimize shelf space, inventory turns, and profit margins.

• Apparel brands and retailers are more focused on presentation and use pictorial planograms that illustrate "the look" and also identify each product.

• 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 Planogram

These 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.

Customised Planogram• Planograms are created for merchandisers to use when setting the

sections in the customers stores.  Merchandisers can customize these planograms based on the stores special needs.

• pictures and schematics of these planograms are provided for use in setting stores sections.

 • Customized Planograms

Customized planograms can be created by the regional manager using the Marketing department’s standard planograms.  These customized planograms take into account specific store sizes and demographics that may not apply to all stores.  Once customized planograms are set, scanning tags are affixed to the shelves for reorder purposes.

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• schematic---a computerized drawing of the planogram indicating the number of shelves or peg hooks needed, overall planogram dimensions and product information. Also locate the stock keeping unit (SKU) list. This is a listing of all the products and the number of facings, or the number of times each product is merchandised on the shelf.

• Schematic - Planogram

Electronic planogramming

• Electronic planogramming requires the user to input model numbers or UPC codes, product margins,turn-over,sizes of product packaging or actual pictures of the packaging,and other pertinent information into the program. the computer plots the planogram based on the retailer’s priorities.

Electronic planogramming

• For instance,if the retailer wants prime shelf space given to products that produce the highest returns, the computer will locate those products in the best locations.

• adjustments to the initial planogram can be made to see how additional space or different fixtures would affect the productivity measures.

• Like if margins are more important that ,the computer will determine the shelf space priority and the optimal no. of SKU’s to stock in that space.

• Recent advances in computer graphics and three- dimensional modeling allow planogarms to be designed ,tested with consumers,and changed, all in a “ virtual” shopping environment.

• 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.

• Hand – outs of types of planograms

Market Research Coupled with Technology Provides Practical

outcomes and retail intelligence for:

• Manufacturers • Distributors

• Retail designers • Store managers

• Lighting designers • Suppliers

• Sales and Marketing teams

Traffic Flow and Planograms!

PLANNING GUIDE

• Store Formats • Site and Building

Planning • Site Selection • Space Allocation• Store Layouts• Store Concepts

Images of few planograms

Soft – drinks section

Personal care section

Chocolates and refreshment section