Timе to Automate Merchandising. Why Do Stores Need Planograms?

How do you find out the placement of products in the store?

Look through the planogram.

How do you track the effectiveness of the layout? How do you manage inventory?

The planogram will help.

A planogram is a plan for the product placement and presentation of merchandise on the store fixtures.

Planogramming seems to be complicated, but in fact, it simplifies the process of laying out the goods. The manager in the store who executes the layout according to the planogram will have fewer chances to make mistakes because he doesn't have to think up how and where to place the goods. He will only be responsible for the correct execution of the layout according to the received planogram. But the planogram itself will be developed by the merchandising department (or planogramming). This requires thorough preliminary work to create an effective layout of goods on the planogram. But the result of a well-designed planogram in the central office is, of course, sales.

A Planogram to Increase Sales

Sales opportunities you hadn't thought of before. While working with the store plan and planogram, the merchandiser can plan in detail the placement of each shelf and product on the shelves. Thus, it allows optimizing every square meter of the sales floor to increase sales. The layout of goods on the planogram is created taking into account merchandising principles, marketing, psychology of behavior, and customer needs.

Each SKU gets its place on the planogram during the process of layout creation. After the products are placed on the shelves according to the planogram, it is possible to track sales and analyze the effectiveness of the display in the store. It allows you to find out the most profitable places on the shelves, as well as the places with the lowest sales. Besides, this information is very valuable because it helps to create new layouts on the planogram more efficiently by focusing on historical sales data and ensuring maximum sales of goods.

Planograms For Profitable Product Placement On The Shelves

With planograms, the merchandising department sees the whole picture of product placement in the store. A well-designed layout is the thoughtful placement of each SKU on the shelves. Different methods of layout affect the customer's perception of products and the decision to make a purchase.

Find out which items are not on sale and place them on the planogram next to your best-selling items. Customers may have simply not noticed the products until now. This way, with updated layouts, you'll increase the chances of buying slow sellers.

Use a cross-merchandising planogram and increase profits by placing related or additional merchandise nearby.

Analyze your sales and find out what products your customers keep coming back for. Experiment and rearrange these items so that regular customers go around the store in search of the right product. That way, you'll increase the probability of additional purchases and grow store profits.

A Planogram for Inventory Control

Advantages of planogramming include the ability to control changes in the assortment of goods in the store.

All retailers know that the most expensive inventories are non-turnover ones, i.e. those that do not sell and do not bring profit. Therefore, one of the important issues is to manage inventory and reduce the amount of non-selling goods. 

With PlanoHero service, the merchandising department can not only create planograms and send them for execution but also track changes in the assortment. The merchandisers need to know which goods are bestsellers and which are slow-moving and not profitable. PlanoHero service reports on non-selling products and out-of-stock. Also, experts monitor the new active items (those that need to be placed on the planograms). Such information helps to react to problems in time, and reduce overstock and storage costs. In addition, it is an opportunity to forecast goods demand by analyzing previous sales.

Shelf space optimization based on sales volume, margin, and inventory allows you to create an efficient layout. As a rule, the most popular products get more shelf space and are easy to find in the store.

Along with planogram creation, PlanoHero's service allows you to analyze sales, assortment, and shelf inventory, determine the effectiveness of retail space to improve layout, and receive reports on in-store customer traffic.

A Planogram for Running Promotions

A planogram is a handy tool for planning the promotional layout on store shelves. Before starting promotions the merchandising department thoroughly works out the promotional layout and adjusts the placement of each promotional SKU. This product placement necessarily takes into account all the parameters of the goods, including the size of the package, when the promotional product is sold as a set or a gift is offered along with the product.

Planograms help to present promotional goods in the most beneficial way and attract the maximum customer attention. In most cases, such goods are placed on the shelves at eye level - on the "golden shelf". Or a separate place in the sales area is prepared for promotional goods. Using the PlanoHero service, merchandisers create a promotional rack, create a separate planogram and send it to the store for execution. The service system generates reports on sales of promotional goods and stocks of promotional goods. Thus, it is possible to track sales, understand how effective the placement of specific SKUs on the shelves is and react to negative dynamics in time.

Manage promotions with the help of planograms, using special services, and cutting the time spent on working with layouts.

Analyze promotional campaigns. Test different strategies and choose the ones that work best in your retail chain.

Why Is Planogram Important for a Retail Chain?

A well-designed planogram can fundamentally change sales and inventory management approaches. Planograms help optimize store and shelf space, increase profits and improve the in-store customer shopping experience. The use of planograms allows you to follow a merchandising strategy by creating an attractive product layout.

Planograms help you to find out the effectiveness of each product or category and the value of each square meter of store space. Effective layouts maximize sales and inventory turnover. Planogram is a reliable tool for managing product placement and converting visitors into loyal customers.