What are Planograms?

Planograms

Planograms are a visual representation of your floor plan which shows you where specific products will be placed. A planogram should include these three things:

  1.  An accurate drawing of the layout of your retail space
  2.  All retail furniture and store fixtures
  3.  Written or drawn information about what actual products are where

Why create Planograms?

Placement of your merchandise is important because it helps you maximize sales and minimize wasted space. The way you merchandise your products will directly correlate to the success of your stores’ sales. Planograms will also save you time, help with restocking, and reveal successes and flaws in your merchandising techniques.

Planograms help you to create a layout strategy which allows you to plan which fixtures, props, and merchandise you are placing where to make sure you are making the most of your stock.It makes planning and implementation so much easier for you and your staff.

In the end, you will have a clear visual overview of your entire retail space and it will allow you to see that everything will fit as it should before you move everything into place.

If you have multiple stores you will want a planogram to make sure that all your stores are merchandised the same to create a more seamless shopping experience for your customers. Using the same planogram will bring familiarity and consistency so your customer will know where to find their favorite items and also allow them to know what to expect when they enter your store. This will also help strengthen your brand by creating a cohesive brand appearance.

It will also be helpful to your store staff to reference this when restocking merchandise and ensure that if customers move products your staff will know how to organize the space again at the end of the day. Usually, the most helpful way to do this is through a binder with pictures of each area of the store to make it simple for them to visually proof that everything is as it should be.

How will Planograms lead to profitability?

  • Planograms will allow you to create and monitor different types of shelf strategies
  • Tracking success, as well as failures, will help with future sales
  • Categorising the products wisely will promote up selling, such as when using cross-selling techniques

Planograms

When tracking success and failures it is important to analyze your store sales while referencing your planogram to see the impact of product placement.  Move your best sellers or items which are important for you to sell, to places where sales for other items have been doing extremely well (high traffic areas).

Make sure to keep each of your planograms as well as pictures for each layout change with its according to sales breakdown to allow you to track what works and what does not. This will be the biggest key to profits once you know what works for your space.

How to create a Planogram?

You can easily create a planogram yourself by using any kind of tool that allows you to make lines, shapes and insert text (such as powerpoint) or you can draw it by hand.

How to Create a Planogram Using Excel

How to Create the Perfect Layout and Interior Design for your Brand

What are the Different Types of Planograms?

The three most popular store layouts are as follows; grid, race track, and the free form.

1. Grid Layout

The fixtures are organized in a rectangular shape which allows maximising the floor space and customers can shop quickly. This is ideal for supermarkets and hardware stores.

2. Racetrack Layout

This planogram will have the customer following one path that is led throughout the store. This ensures that the customer will see everything in the store but it can also be annoying for customers who already know what they would like to purchase and do not want to have to go through the whole store in order to make their purchase.

3. Freeform Layout

If you want to encourage your customers to browse this is the best layout since it is more relaxed in structure and allows the customer to pick their path.

What to consider when making your Planogram?

Creating a planogram can be very easy if you know how to go about it.

Here are some points to keep in mind:

Group Items Together

Products should be grouped by; popularity, type of product, size or other categorizations that are relevant to the market, this will make for an easier shopping experience and help customers find what they are looking for

Use Cross-selling Techniques

This will help with impulse purchases since the customers will buy what they came in for, but also other products that they will want to go with it once they see how well they fit together

People Buy What They See

Implementing visual merchandising techniques like placing products at eye level will sell better as well as items that are used in retail display‘s

Location and Product Placement 

  • Entrance- This is the first impression that the customer has of your store, so place a table presentation or fixture here that has a good average price point. No “sale” items or anything too expensive since this price point will set the tone for your customer’s interpretation of how much things in your store will cost and you do not want to scare them off. It is important to keep in mind that this is their first interaction and interpretation of your store and brand.
  • Sidewalls- People tend to go to the right when entering the store so their next stop would be going towards the right side wall. The price point here should be medium average.
  • Back of the Store- This is a great area for merchandise that is in high-demand, such as sale items, and which have a higher price point. customers will then be forced to walk through the entire store to get to items they are after. It is important to have this area visible from the front so people know not to miss it. Add-on items and impulse purchases are good to add the top end of the customer journey.
  • Walkways: Having wider aisles encourages your customers to move around the space more, helps them feel calmer, and allows for better visibility of merchandise. Your shop should never feel crammed everything should feel organized and have space to make for a better shopping experience.
  • Cash Wrap: This is a great place to put little add-on items since this is the time when people make impulse purchases. If possible add these items to the cash desk but not cluttering the surface. The counter should be big enough for customers to place all of their purchases and should avoid any kind of clutter. If you have office supplies on the counter make sure they look decorative and only the essentials are out. The cash desk should be is to the left of the entrance or towards the center/ front of the store.

How Often Should I Create a New Planogram?

You should be changing the layout of your store regularly to encourage existing customers to come back in and find new products to shop. It is important when you make the changes that you are ensuring that the right products (such as seasonal or on-trend items) are given priority. You can ensure this by referencing your planograms and placing them in areas that you have previously marked as high traffic areas to capitalize on your retail space.

Conclusion How to Best use your Planogram:

Effective Planning- This will help you to visualize and ensure that the layout will fit and make sense for space you have available before you spend time moving everything

Updates- Regularly update your floor plan to draw in existing and new customers by creating curiosity and highlight new merchandise

Restocking- Employees should be using the planograms daily to make sure all merchandise is restocked and placed where it should be  

Analyse your Floor Plan– Make sure to reference your planograms when analyzing your store sales to learn from how customers shop your space

Utilising Key Retail Space– Put all your best selling or seasonal merchandise in the areas of your store where you know they will receive the best exposure

Cross-selling and Grouping Items– Encourages the customer to buy other merchandise which they can see fits perfectly together with what they initially wanted to buy