Benefits of the Right Planogram Solution

Planogram is a reliable retail assistant in retail. It is a powerful tool for organizing and managing store displays. The layout of products is important in a store. After all, the way products are placed on the shelves affects how they will be perceived by customers and how the products will be sold. No wonder merchandising, the art of presenting a product in the store, plays such an important role in retail. The sales of goods and the retailer’s profit depend on how the merchandising process is set up.

Efficient product placement and control over the layout are carried out thanks to a customized planogramming process. Modern services for planogramming allow you to customize this process partially or completely. So, the service can provide the following functionality:

• creation of store floor plans, and commercial equipment;

• create planograms with different cluster product layout options;

• create customized own layout rules and apply them in different stores for automatic planograms creation;

• set tasks for the planogram  implementation and send them to managers in stores;

• control the planogram execution using photo reports;

• analyze layout, sales, and customer behavior.

Planograms are used by both big-box retailers offering a huge range of products from many suppliers, as well as medium and small chains. And, of course, the approach to planogram creation and the workload are different.

Why do Retailers Need Planogramming?

A properly organized planogramming process allows you to implement a more efficient layout. In other words, this process can do wonders with products. Planogramming is a merchandise placement strategy used by retail chains to ensure on-shelf availability and visual representation of all merchandise. A customized planogramming process allows you to reduce the time and cost of printing planograms. With the help of planogramming automation services, you can control all the processes of planogram creation and their implementation, as well as increase employee productivity.

Benefits of Planogramming

Growth in sales and profits is due to effective planning. Proper merchandising is a profitable arrangement of shelves and goods, something that attracts customers and stimulates sales.

Cost savings are significant. No need to print planograms. In addition, cost savings come from a balance between consumer demand and shelf stock.

Shelf Space Optimization

Thanks to customized planogramming, the retailer gets the rational use of scarce retail space, which results in a higher return on investment.

Do you know that the number of faces has a significant impact on product sales? Make sure your high-demand items take up enough space on your shelves. In addition, with the help of planogramming, the retailer will be able to use every meter of retail space rationally. But this does not mean that every centimeter should be filled with goods. Remember about balance in everything.

Increase Visual Appeal

Planograms provide eye-catching visual merchandising. A good layout of products on the shelves attracts the customer. This, as a result, increases loyalty and sales.

Cross-Selling

Planogramming allows you to organize, customize and manage cross-merchandising. Cross-selling becomes possible when organizing such a layout of products, which ensures the placement of main and additional products. Cross-merchandising usually encourages impulse buying and helps shoppers to find necessary items. Cross-merchandising, as a convenient and logical combination of products, increases customer loyalty. As a result, customers buy more and sales increase.

Out-Of-Stock Reduction

With planogramming, the retailer gets the opportunity to get the store organized. So, the customized planogramming process allows you to receive information when stocks are out.  This helps to order the necessary items on time and reduce or completely avoid Out-Of-Stock.

Inventory management and tracking of assortment change

Retailers can control inventory and the balance between demand and inventory on the shelves when using planogramming. When they work with planograms, they can track changes in the assortment and receive up-to-date information. Thus, using planogramming retailer receives notifications on the products that need to be put on the planogram or vice versa about inactive products that are included in the lists for deletion. These are the products that are on the planograms, but they are no longer in stock.

Also planogramming improve overall store performance and streamlines the merchandising process.

How to Choose a Tool for Creating Planograms?

Different services offer different functionality. There are services that are focused on one of the processes. For example, only creating your own planogram or, in general, only planogram templates without the ability to create everything from scratch. There are services that the merchandiser still needs to print planograms. Or send planograms by e-mail. There are retail solutions that offer the creation of planograms and sending them to the store directly in the service. However, the process of planogramming does not end with sending planograms to stores. The next step is planogram compliance and control over the implementation within a certain deadline.

Another important factor when choosing a planogramming tool you should pay attention to is what result the retailer receives. What kind of reporting does the tool you have chosen provide? What analytics is provided in the planogramming service? Can your tool track sales dynamics, inventory changes, shelf stock, or measure sales space performance?

Full functionality services allow you to implement the entire planogramming process: from creating a store floor plan, store fixtures, and planograms up to planogram compliance layout control, sales analytics, customer traffic, etc.

PlanoHero is one of them. A complete solution for retailers that unifies and automates the entire planogramming process on a single platform.

And, of course, each retailer will choose a solution that will meet business goals or solve specific problems of the store or the entire chain.

Efficient Planogramming with PLANOHERO

The experience of using the service by our clients shows saving time and cost reduction on printing planograms, as well as the processes associated with store control. With the help of the service, the retailer receives a cost reduction of approximately 5% for the entire store and a single system with all levels of business processes.

The functionality of PlanoHero allows you to:

• create a store floor plan, and store fixtures;

• customize the layout of products on the shelves;

• use the task manager, mobile applications for store managers, and an app for gathering product sizes and uploading product photos;

• improve the control block and apply advanced rules for the automatic creation of planograms;

• establish communication between departments (between the central office and stores);

• optimize store and shelf space.