The Importance of Creating a Planogram as a Retailer

In this article, we are going to address the issue of planograms and their importance for all CPG companies. You may have never heard about it. Or you do not know yet what it is for. This is precisely the object of our intervention. Trust us, on the occasion of your next merchandising implementation, you will need them.

Planograms Help Save Money

As a retailer, the saying “time is money” must make perfect sense for you. Thus, planogramming can be a great ally in your store execution. It is the virtual software simulation of a future merchandising implementation. The main goal is to design, with the help of a merchandising software, the future implementation of a 2D or 3D linear. You may wonder why use such software when it is possible to do the job directly in the field. It is because setting up a store or even a shelf correctly is extremely tedious. In addition, if you make any mistake, you have to dismantle everything and go back up. Thanks to this tool, we can simulate different configurations before realizing the final implementing. Beyond saving time, a dedicated software also makes it possible to test the feasibility of the project. In a nutshell, it is essential for all retailers and CPG companies to know how to make a planogram.

Planogram: a Performing Analyzing Tool

Planogramming software are mainly tools which are used to make precise economic analyzes of linear. A planogram is actually the image result of an analysis produced upstream. It’s a bit like the tip of an iceberg. By working on a planogram, you will have a fine analysis of the assortments. But to obtain all the anticipated effects, have to ask the right questions. Does the proposed assortment cover all customer needs units? What is the potential of the shelf? What turnover will it generate? How to avoid running out of stock? How long does the stock shelf cover?

How to Succeed a Planogram?

Planogramming is not an easy task, especially if it is the first time you do it. You have to be particularly careful about the audit recommendations because it always differs from a shelf to another. And even for the same shelf, the recommendations can change completely if some of the products have strong seasonality. An item can be, for instance, present on the planogram and on the shelf for six months with a limited number. However, during the other 6 months, its visibility may increase tenfold. Clearly, the planogram is also a tool that allows a CPG company to manage its daily shelving. In the longer run, it gives the point of sale the possibility of anticipating its commercial activity and of having a presentation in balance with the shoppers’ expectations.