What a Merchandiser Should Know About an Effective Planogram Creation Process

Table of Contents

The Main Stages of the Planogram Creation Process

SKU Database with Characteristics and Images

Assortment Analysis 

Category Decision Tree for Each Product Group

Equipment and Store Plan

Define the Goals of the Planogram

Creating a Product Layout on a Planogram 

Controlling the Planogram Execution

Tool for Creating Planograms

Conclusion

Planograms are an integral part of a successful merchandising strategy. It is a strategic tool that helps to optimally place products on shelves, considering customer behavior and market trends. Developing a planogram involves not only the use of software but also in-depth data analysis, staff training, and ongoing monitoring of results. This article will look at the main stages of creating planograms and their impact on improving retailers' efficiency and stimulating sales growth.

The Main Stages of the Planogram Creation Process

SKU Database with Characteristics and Images

The first step to developing an effective planogram starts with creating a database of all the products in your assortment. It is essential to consider not only the dimensions of each product but also the availability of images for visualization on planograms. For example, for products that come in several sizes or colors, it is essential to include all variants so that the planogram is accurate and as close to real-world conditions as possible. This base will become the basis for creating the optimal placement of products on the shelves. With PlanoHero, you don't have to worry about searching for product parameters and images. In PlanoHero, you can update product parameters using Listex, an integrated electronic product catalog.

Assortment Analysis 

Evaluate the product's demand, sales, and interaction with other products. This will allow you to determine which products need the most shelf emphasis.

Category Decision Tree for Each Product Group

Create a customer decision tree for each product group. This helps you better understand how your customers make purchasing decisions, what they pay attention to first, and what influences their choices.

Equipment and Store Plan

Work through and describe all the retail equipment used in your stores. This includes the size, number of shelves, different types of fixtures, and their ability to accommodate goods. After all, it is essential to know the exact parameters of the equipment to place the maximum number of products.

Create an Excel file of the equipment for mass upload to PlanoHero. You can also build the equipment from scratch using PlanoHero builder or templates.

Prepare AutoCAD files of your store plans for uploading to the service or build store plans yourself using the PlanoHero service.

Define the Goals of the Planogram

Set clear goals that you want to achieve with your planogram. These can be goals related to increasing sales, optimizing shelf space, or increasing the visibility of specific products.

Creating a Product Layout on a Planogram 

Customize the layout of products on the shelves, considering product categories and zoning. The designed layout should meet the goals of your planogram and make it easier for customers to navigate among the products.

Create planograms with PlanoHero software. You can develop a layout based on sales, profit, inventory, categories, brand, and supplier, determine the percentage of goods on the shelves, and consider promotions or agreements with suppliers. When working with a planogram in PlanoHero, you can create blocks on the planogram and customize the layout of the blocks separately from the rest of the shelves. In addition, you can create your own layout rules, save them, and apply them to any planogram.

Controlling the Planogram Execution

Sending planograms to stores and checking their implementation is integral to the planogramming process. PlanoHero allows you to send planograms through the service and receive photo reports on the layout performance. In turn, store managers use the PlanoHero mobile app to receive new planograms and send photo reports through the app.

The central office analyzes product layout and sales performance using the analytics tools available in the PlanoHero service. If a particular product is not delivering the expected results, the planogram can be quickly adapted to optimize the layout on the shelves.

Effective development of planograms is a process that includes data preparation, software creation, equipment and store plan generation, planogram layout, and sending and monitoring layout execution in the store.

Tool for Creating Planograms

Modern software solutions such as PlanoHero dramatically simplify managing layout, automate routine tasks, and allow you to make changes quickly. This ensures accuracy in the product layout and improves flexibility in planogram implementation.

Conclusion

An effective process of creating planograms is a comprehensive approach that includes data analysis, the use of modern automation tools, planning, and constant monitoring of execution. Through careful planning and the use of analytical data, merchandisers can significantly increase sales efficiency and optimize the placement of goods on the shelves. Investing in the right tools and technologies can make your merchandising process more efficient and successful.