10 Frequently Asked Questions About Planograms

1. What is a Planogram?

A planogram is a detailed layout of goods on the shelves in a store. It is a digital scheme aimed at attracting customers' attention to products and increasing turnover. The planogram displays the configuration of retail equipment (dimensions, number of shelves), which allows you to plan shelf replenishment and customize the layout effectively.

The Main Goals of Planograms

Planograms act as a highly customized guide, directing the flow of customer attention to crucial products. Planograms are designed to place products to maximize sales and provide customer convenience efficiently. They make it easy to navigate the product range.

The main goal of planograms is to increase sales and profits through efficient product placement. That is, to optimize the use of retail space to increase the efficiency of each square meter.

A planogram is also a tool for controlling turnover. Therefore, one of the goals is to adhere to the assortment strategy and maintain stocks at an optimal level. Thanks to the accurate reproduction of the plan of the selected layout, planograms also simplify inventory.

The Process of Creating a Planogram

To develop an effective planogram, a retailer must first analyze sales, product assortment, customer behavior, and the characteristics of the retail space. The next step is to identify product categories and their role in sales. After that, a detailed product placement plan on the shelves is created, which should reflect the strategic goals of the store and provide maximum convenience for customers. It is advisable to use specialized software to create a planogram to manage the layout of goods and make adjustments quickly. Thorough testing and analysis of the results of the product layout will help you optimize the planogram, increase shelf efficiency, and boost sales.

2. How to Make a Proper Product Layout?

Developing a planogram is a process that requires in-depth analysis and strategic planning.

Stages of planogram development:

• Collecting and analyzing data on sales, demand, and customer behavior.

• Identification of product categories and their prioritization based on profitability and frequency of purchases.

• Development of a layout concept that harmonizes with the overall store concept.

• Create the planogram and customize it with the help of a specialized tool, PlanoHero.

• Testing the planogram in the sales area and analyzing the effectiveness of the layout.

• Making the final decision and implementing the planogram on an ongoing basis.

Taking into account the behavioral factors of customers allows you to increase the effectiveness of the planogram and stimulate sales.

5 main principles of proper layout:

1. Convenience - all products should be arranged in such a way that they are easy to take off the shelf, and the entire assortment should be visible on the shelf.
2. Standardization - the layout of product categories throughout the chain should be similar and help to create a single, recognizable store concept.
3. Safety - no bulky goods should be on the top shelves. In addition, all products should be available at arm's length.
4. Compatibility - There are certain rules for product neighborhood and cross-merchandising for the placement of categories: for example, coffee and tea are often laid out with confectionery.
5. Availability - the shelf should always be filled with goods but without overloading.

3. What Types of Layouts do stores use?

Effective merchandising can be the key to increasing profits. Stores distinguish between several basic layout strategies: horizontal, vertical, block, pallet, and display. Each of them aims to ensure maximum visibility of products and convenience for the customer when choosing and purchasing goods.

Different layout techniques are used depending on the type of product and target audience. This lets you present the assortment optimally and create an attractive retail space. It is important to remember that depending on the traffic and flow of customers, an individual approach to each zone in the store may be required.

4. What is Vertical Product Placement?

Vertical display is the product placement of goods from top to bottom in a vertical line. The basic concept of vertical display is that placing products on the shelves above and below each other makes it easier for customers to find the right products.

By placing popular products closer to the customer's line of sight, these products have higher visibility than products with a much lower turnover.

Vertical display allows customers to stay in one position while following the vertical placement of goods from top to bottom.

Vertical merchandising makes the product accessible to both adults and children. This approach is often used to sell, for example, toys and stationery, such as crayons, paint cans, play dough, and plasticine. Vertical toy displays are also the easiest to use to create attractive rainbows of colored blocks, where you can present the product at eye level for children and adults.

5. What is Horizontal Product Placement?

In a horizontal layout, products are placed along the shelves from left to right. This option is the most common and is used in most stores.

With a horizontal display, you can place smaller products on the top half of the shelves, using a horizontal progression for different options and prices. Place larger and heavier products on the bottom shelves. Heavy products sell better at lower heights because they are more accessible and safer to pick up. You can also use a horizontal layout to differentiate between adult products along the top half of the shelves and children's products along the bottom half of the shelf.

6. What is a Block Layout?

According to product placement in blocks, related products or products belonging to similar categories and subcategories are grouped in one place on the planogram. This method involves, for example, grouping products of the same brand. This promotes brand recognition and makes it easier for customers to find the right products. Branded layout is most often used to make a particular brand more recognizable among other brands. The corporate block is a dedicated space on the shelf for products of a specific manufacturer.

Such a layout of products attracts customers' attention with contrast and color, unlike other types of layout. A branded layout increases visitors' time near the shelves with such products. It creates the effect of an advertising stand.

7. How to Create a Planogram?

Several criteria to make an effective planogram should be considered, including product characteristics, customer demand, and space optimization.

First, each product is assigned a specific place on the shelf according to its importance and demand or seasonality. This aims to increase the visibility of best-selling products and simplify the shopping process for customers. The planogram layout should ensure that the products are easy to navigate and accessible to customers.

Using specialized software, such as the PlanoHero service, you can significantly facilitate the process of creating planograms, tracking the arrival of new products, rotating goods, and customizing layouts to suit your store's own needs.

1. Choose a program for planogramming.

2. Draw a store plan and create equipment using the PlanoHero builder.

3. Create a planogram on the ready-made equipment.

4. Customize the layout of the planogram. Take into account all the details. Group products by category, brand, supplier, or based on previous sales. Try to create your own rules for displaying products on a planogram using the Layout Rules functionality in the PlanoHero service.

Create planograms. Test them, check their implementation, track sales, and make adjustments if necessary. Don't let the best shelf space go to underperforming products.

Planogram Compliance

Following the planogram is fundamental to maintaining order and logic in a store. It serves as a navigation tool that helps customers find the right product more easily.

Correct implementation of planograms in stores reduces the number of lost sales, as the product is always available in its place, thereby strengthening the store's brand in the minds of customers and helping to build loyalty.

Accurate execution of planograms also helps to improve staff efficiency. It reduces the time spent on replenishing products and cleaning shelves.

8. Why is it Essential to Follow Planograms?

Planogram compliance ensures the consistency of the product layout and contributes to stable sales growth.

Managing the visual perception of the retail space in accordance with the planogram provides easy access to products, optimizes purchasing processes, and facilitates efficient customer navigation. With the help of a competent layout organization, you can significantly increase the share of impulse purchases, which, in turn, stimulates the growth of store revenues.

The use of planograms helps to establish better control over stocks of goods. This significantly reduces the possibility of product shortages, which is extremely important for maintaining high customer service and minimizing losses.

Correct execution of planograms enhances the marketing potential in the sales area, promotes positive brand perception, attracts new customers, and maintains the loyalty of the existing customer base. Therefore, an effective planogram is an important tool for ensuring high-quality product placement and achieving strategic business goals.

9. How to Read a Planogram?

A well-designed planogram will tell you about the location of each product item.

For a store manager to correctly place the products according to the planogram, they must read it correctly and understand the type, size, and characteristics of the products and the equipment on which the products are displayed. A planogram is an instruction for the correct placement of each SKU in your store.

A mistake in reading the planogram means a mistake in the layout. Then, all the previous work of the merchandiser, category manager, marketer, and planner will be in vain. And the results of such a layout will be challenging to predict and analyze.

To read the planogram, you need to pay attention to the scale, which shows the actual dimensions of the shelves and products. The positioning of products on the shelves is also essential: weight and packaged goods, their quantity on the shelves, and rotation rules.

Every detail of the planogram indicates the logic of the layout. It aims to maximize sales and interaction with the customer. Managers need to understand how to read a planogram to position these products appropriately in the store.

Focus on the parameters. A detailed planogram makes it possible to read and understand all layout elements and locations: article, barcode, supplier, depth/height order, number of faces, inventory, stock, leftover quantity, etc. Pay attention to each SKU's specifications and the equipment's characteristics.

Type of equipment. The store manager should know what equipment the planogram uses: different shelving, refrigerators, display cases, stands, and advertising displays. Therefore, it is essential to recognize the type of equipment on the plan and place the products in the store accordingly.

Identification of products, brands, categories, and product groups. To properly execute planograms, the store manager must identify the products and brands on the planogram and their parameters. The manager can successfully combine products with those already on the shelves by understanding the brands, SKUs, product grouping, and compatibility. This is the most crucial moment when a small mistake can cause a drop in sales or negatively affect the brand's reputation.

Compliance with the planogram. Managers need to know how to arrange products according to the planogram. Planogrammers can change active planograms or create new planograms according to demand, season, or marketing campaign. Your employees must receive and execute planograms in a timely manner - to put out products and ensure that the right product is in the right amount in the right place.

Technologies for Planogram Management

10. What Software Should be Used to Work with Planograms?

The use of modern technologies enhances effective planogram management. Planogram software provides the ability to create store and point-of-sale plans, optimize assortment, and automate the planogram process. Thanks to the analytical module built into this service, retailers can accurately assess the effectiveness of each product item on the shelf and quickly make the necessary adjustments.

PlanoHero contains functionality designed to simplify all aspects of product layout, from visualization to sales analysis.

Combining the process of creating and executing planograms is essential for efficiently operating the entire chain. By using planogramming software such as PlanoHero, retailers can simplify the planogramming process, optimize space, improve product placement, and ultimately increase sales. Investing in the right planogram solutions allows you to quickly adapt to the changing world of retail and create visually appealing in-store layouts that attract customers and drive business growth.

Our customers' experience of using the service shows a reduction in retailers' costs for printing planograms and in the costs associated with store inspections. With the help of the service, the retailer gets a cost reduction and a single system with all levels of business processes.

PlanoHero functionality allows you to:

• create a store plan, trade equipment;

• customize the layout of goods in the planogram;

• apply advanced rules and artificial intelligence to create a layout;

• send planograms for execution to stores;

• check the correctness of planograms using photo reports;

• track the execution time of the layout using a time tracker;

• establish communication between departments (between the HQ and stores);

• optimize the space of stores and shelves;

• analyze the movement of visitors in the store using a heat map;

• to carry out a quick product rotation;

• analyze the effectiveness of the layout.