There is a method behind the madness of stocking store shelves so that they are organized and aesthetically pleasing. The seemingly effortless presentation is a facade of detailed planning.
Managers tailor displays to the specific dimensions of the shelves and products in order to optimize space. Doing this allows them to utilize every inch of the available space. With countless SKUs of varying sizes, how do they stay organized? Planograms.
What Is a Planogram?
Planograms - also referred to as POGs - are a visual representation of product shelving used to maximize capacity and sales. Planograms are beneficial to a merchandising strategy as they take into account techniques like cross-merchandising, and aim for the most profitable product placement.
Products might be grouped by type, size, popularity or other categorizations relevant within the market. The planogram may be schematic or have images of the actual products, depending on how it's designed.
Not only do planograms help brands develop the most profitable shelf strategy, but it allows them to easily make their presentation on the shelf consistent across retailers. This familiarity makes it easy for shoppers to identify their favorite products and walk away with that brand in their cart.
Using a Planogram Template
Organizing your planogram template on a hunch doesn’t cut it when nose-to-nose with your competitors. Before starting a planogram, you need quality data on not only past sales, but also on the conditions that caused those sales. This information, when tracked appropriately, fuels data-backed decision making that empowers you to plan smarter and maximize profit.
The three types of retail data that will help you make data-backed decisions are Observational, Activity, and Sales data. Observational data represents in-store conditions -- number of facings, competitor activity, etc. Activity data is your team’s execution in the field, such as the visits their making and how well they’re able to cover their territory. Sales data is simply how much of each product is sold over a certain period at certain store locations. Combining these three types of data can help you understand exactly what causes sales to climb or drop in certain stores, so you can take a targeted, data-driven approach to planogramming.
Planograms help make shelves look neat and organized.
To get started creating a planogram for your shelves, try using this free planogram template. Simply download the sheet and start customizing the shelves.
Our template divides shelves into particular units by product, allowing you to decide what each color represents, and adjust the height of the cells to match your own key for shelving dimensions. Take a look and experience the benefits of using a planogram in your merchandising and sales strategy!
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