Planograms: What They Are and How They’re Used in Visual Merchandising

Planograms_ What They Are and How They’re Used in Visual Merchandising _ MediaOne Marketing Singapore

As a retailer, you know the importance of creating an appealing and organised display of your merchandise. The way you present your products can influence your customers’ buying behaviour, affecting your sales and revenue.

Planograms are a vital tool in visual merchandising that help you create an optimal store layout, maximise product visibility, and enhance customer experience.

In this article, we’ll take a closer look at what planograms are, how they work, and how they can benefit your business.

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What are Planograms?

A planogram, also known as a plano, is a visual representation of how merchandise should be displayed on shelves, fixtures, or displays. It’s a diagram that illustrates the ideal placement of products within a store, considering factors such as product category, size, colour, price, and other relevant details.

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Planograms can be as simple as a hand-drawn sketch or as complex as a computer-generated 3D model, depending on the retailer’s needs.

Planograms are essential tools for retailers because they help ensure that products are presented in a way that maximises sales. Planograms can be created for an entire store, a section of a store, or even a single shelf.

They are often used by retailers to create visual merchandising guidelines for their employees to follow, ensuring consistency across multiple store locations.

How do Planograms work?

How do Planograms work? | MediaOne Marketing Singapore

Planograms are created based on data analysis and customer behaviour research. A retailer analyses sales data, customer traffic patterns, and other key metrics to determine which products are most popular and which are selling slowly.

They then use this information to create a planogram that places the best-selling products in the most visible and accessible areas of the store. Slow-moving products may be moved to less visible areas or removed entirely.

Planograms also take into account product adjacency, or the relationship between products in the same category. For example, a planogram for a beauty store might place lipsticks next to lip liners and glosses for easy cross-selling. Similarly, a planogram for a grocery store might place related products, such as chips and dips, on the same shelf.

Planograms can also be used to create seasonal displays, promotions, or new product launches.

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By updating planograms regularly, retailers can keep their displays fresh and exciting, encouraging customers to return to the store and make more purchases.

What are the benefits of using Planograms?

Planograms offer several benefits to retailers, including:

  • Improved store layout: Planograms help retailers create an optimal store layout that maximises product visibility and accessibility. By placing products in the right location, retailers can increase customer engagement and sales.
  • Increased sales: Planograms help retailers identify and promote their best-selling products, resulting in increased sales and revenue.
  • Consistency across stores: Planograms ensure that each store location presents merchandise in a consistent and appealing manner, creating a cohesive brand image.
  • Enhanced customer experience: By creating a visually appealing and organised display, planograms improve the customer experience, making it easier for customers to find what they’re looking for and make purchases.
  • Better inventory management: By identifying slow-moving products and adjusting their placement or removing them from the store, planograms help retailers better manage their inventory, reducing waste and increasing profits.

In summary, planograms are a crucial tool in visual merchandising that help retailers create an optimal store layout, increase sales, and improve the customer experience.

By analysing sales data, customer behaviour, and other key metrics, retailers can create effective planograms that promote their best-selling products and cross-sell related items.

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Regularly updating planograms also helps retailers keep their displays fresh and relevant, attracting customers and increasing sales.

How can you create a Planogram?

How can you create a Planogram? | MediaOne Marketing Singapore

Creating a planogram requires careful planning and attention to detail. Here are the steps involved in creating a planogram:

  • Collect Data: Collect data on sales, customer behaviour, and inventory levels. This data will inform your decisions about which products to feature and where to place them.
  • Select the Right Software: Choose a planogram software that suits your needs. There are various planogram software options available, ranging from free to expensive, with varying levels of complexity.
  • Determine the Product Categories: Identify the product categories you want to feature in your planogram. Group related items together and consider how they should be arranged on the shelves or displays.
  • Determine the Shelf Layout: Decide on the shelf layout and how products will be arranged on the shelves. Consider factors such as product size, colour, and price, as well as the visual impact of the display.
  • Create the Planogram: Use your planogram software to create a visual representation of the shelf layout, including product placement, signage, and other details.
  • Review and Adjust: Review your planogram and make adjustments as needed. Test the planogram in-store to ensure that it meets your goals for sales and customer experience.
  • Update Regularly: Update your planogram regularly to reflect changes in inventory, product promotions, and customer behaviour.
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While creating a planogram can be time-consuming, the benefits to your business can be significant. With a well-designed planogram, you can improve your store layout, increase sales, and enhance the customer experience.

28 Frequently Asked Questions About Planograms

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What is a planogram?
A planogram is a visual representation of how products should be displayed on a retail shelf or in a store. It is a diagram that outlines where each product should be placed, how much space it should take up, and how it should be arranged.

What is the purpose of a planogram?
The purpose of a planogram is to help retailers to optimise their shelf space, improve sales, and enhance the customer experience. By using a planogram, retailers can ensure that their shelves are properly stocked, that products are easy to find, and that the store looks neat and organised.

How are planograms created?
Planograms are typically created using software that allows retailers to drag and drop products onto a virtual shelf. The software then generates a diagram that shows how the products should be arranged on the actual shelf.

Who creates planograms?
Planograms are typically created by the retailer or by a third-party vendor who specialises in planogram creation.

What information is included in a planogram?
A planogram includes information about which products should be displayed on a shelf, how much space each product should take up, and how the products should be arranged.

What is a category planogram?
A category planogram is a planogram that focuses on a specific category of products, such as soft drinks or snacks.

What is a modular planogram?
A modular planogram is a planogram that is designed to fit into a specific shelving system, such as gondola shelving or pegboard shelving.

What is a space planning software?
Space planning software is software that helps retailers to design and create planograms.

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What is the benefit of using planograms?
The benefit of using planograms is that they help retailers to optimise their shelf space, improve sales, and enhance the customer experience.

What are some common mistakes to avoid when creating a planogram?
Some common mistakes to avoid when creating a planogram include overcrowding the shelf, not leaving enough space for new products, and not considering the flow of traffic in the store.

How often should planograms be updated?
Planograms should be updated on a regular basis to ensure that they remain relevant and effective. The frequency of updates will depend on factors such as the seasonality of the products, changes in consumer trends, and new product launches.

How do planograms impact sales?
Planograms can have a significant impact on sales by ensuring that products are displayed in a way that is attractive and easy to find. By improving the customer experience, planograms can also encourage repeat business.

What is the difference between a planogram and a schematic?
A planogram is a visual representation of how products should be displayed on a retail shelf, while a schematic is a diagram that shows the layout of a store.

What is the difference between a planogram and a plan?
A planogram is a specific type of plan that focuses on the layout and arrangement of products on a retail shelf.

What is the difference between a planogram and a floor plan?
A planogram is a specific type of diagram that focuses on the layout and arrangement of products on a retail shelf, while a floor plan is a diagram that shows the layout of an entire store or retail space.

Can planograms be used in online retail?
Yes, planograms can be used in online retail to help retailers optimise their product displays on their website. This is known as a virtual planogram.

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What are the benefits of using virtual planograms in online retail?
The benefits of using virtual planograms in online retail include improved user experience, increased sales, and the ability to easily test and modify product displays.

What is the difference between a planogram and a merchandising plan?
A planogram is a specific type of diagram that focuses on the layout and arrangement of products on a retail shelf, while a merchandising plan is a broader strategy that outlines how products should be promoted and sold.

How can planograms be used to improve the customer experience?
Planograms can be used to improve the customer experience by ensuring that products are easy to find and that the store is well-organised and visually appealing.

What is the role of data in planogram creation?
Data plays an important role in planogram creation by providing insights into consumer behaviour, sales trends, and product performance. This data can be used to inform decisions about which products should be displayed and how they should be arranged.

What is a macro space plan?
A macro space plan is a high-level diagram that shows the layout of a store or retail space, including the placement of shelves, aisles, and other features.

What is a micro space plan?
A micro space plan is a more detailed diagram that focuses on the layout and arrangement of products on a retail shelf.

How can retailers measure the effectiveness of their planograms?
Retailers can measure the effectiveness of their planograms by tracking sales data, monitoring customer feedback, and conducting store audits to ensure that the planograms are being properly implemented.

Can planograms be used in other industries besides retail?
Yes, planograms can be used in other industries besides retail, such as in the food and beverage industry to optimise the placement of products on a menu or in a vending machine.

What is the difference between a planogram and a product display?
A planogram is a specific type of diagram that focuses on the layout and arrangement of products on a retail shelf, while a product display refers to the actual physical display of products in a store.

What is the role of planograms in supply chain management?
Planograms can play a role in supply chain management by helping to ensure that the right products are in the right place at the right time.

What is a reset planogram?
A reset planogram is a planogram that is used when a retailer wants to completely change the layout of a store or section of a store.

How can retailers ensure that their planograms are effective?
Retailers can ensure that their planograms are effective by using data to inform their decisions, regularly updating and testing their planograms, and seeking feedback from customers and employees.

Conclusion

Basics of Visual Merchandising | MediaOne Marketing Singapore

Planograms are an essential tool in visual merchandising that help retailers create a visually appealing and organised display of their products.

By analysing sales data, customer behaviour, and inventory levels, retailers can create effective planograms that promote their best-selling products and cross-sell related items.

Planograms also help retailers improve store layout, increase sales, and enhance the customer experience. With careful planning and attention to detail, creating a planogram can be a valuable investment in your business.

Planograms are not only beneficial for brick-and-mortar stores but also for online retailers. With the increasing popularity of e-commerce, online retailers can use planograms to organise and optimise their product listings, making it easier for customers to find what they are looking for.

In addition, planograms can be used to create effective product displays on e-commerce platforms, such as Amazon and eBay, helping to increase sales and improve the customer experience.

In conclusion, planograms are an essential tool in visual merchandising that help retailers create a visually appealing and organised display of their products.

By using sales data, customer behaviour, and inventory levels to create effective planograms, retailers can increase sales, improve the customer experience, and stay ahead of the competition.

With the availability of planogram software, creating a planogram has become easier than ever before. Retailers who invest time and effort into creating effective planograms will reap the rewards of increased sales and customer loyalty.

About the Author

Tom Koh

Tom is the CEO and Principal Consultant of MediaOne, a leading digital marketing agency. He has consulted for MNCs like Canon, Maybank, Capitaland, SingTel, ST Engineering, WWF, Cambridge University, as well as Government organisations like Enterprise Singapore, Ministry of Law, National Galleries, NTUC, e2i, SingHealth. His articles are published and referenced in CNA, Straits Times, MoneyFM, Financial Times, Yahoo! Finance, Hubspot, Zendesk, CIO Advisor.

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