The planogram is a visual diagram showing in great detail where product shelving and displays in a retail store should be located. This design is a strategic flow of merchandise and departments down to aisle and shelf placement for an item. An effective planogram also includes information on proper facings for each SKU, which is a number assigned to a product by a retail store to identify things such as the price and manufacturer of the merchandise.
- With some research, a store owner or manager can become her own planogrammer and merchandise specialist. Draw a layout of your store--all aisles and shelves. Ideally, you should use a word processor to create effective shelf and aisle layout. However, if you have good drawing skills, pen and paper can suffice. Software is also available, which can be expensive, though. Remember too that software doesn't shop, people do.
When merchandising products that are on sale or overstocked, the aim of a good planogram is to create good point-of-sale displays. Use planograms to contain any point of purchase display materials that suppliers have provided. - An effective retail planogram utilizes every square foot of space in the store to sell products. Use it for proper placement of visuals, and consider the vantage points of potential customers, keeping in mind that eye level is usually best. A planogram also makes an effective tool for controlling inventory. Familiarize your staff with its dynamics and sell them on its benefits so they can better aid in everything from reduction of out-of-stock occurrences to effectively communicating ideas for staff-produced displays.
- Understand the types of purchase decisions that customers make as they respond to improved product positioning. These include trusting your company, believing that your product meets their needs, finding value in the price and deciding based on the above that the time to buy is now. Allocate facings by unit (product) movement and amount of supply, since this is a critical aspect of arranging products to optimize sales. Aesthetics makes finding products easier. Be strategic in your merchandising to help meet financial targets, according to Bob Cohen, who is known as the Planogram Titan.
- A good planogram considers both space management and the shopping experience of the consumer. Keep the plan straightforward for yourself and your staff, yet interesting for your customers. The idea of making a good planogram is to find that balance between art and science as it relates to the shopping and purchasing experience.
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