Page 163 - DMGT552_VISUAL_MERCHANDISING

Visual Merchandising

Notes store plan. A planogram helps in the same. Planograms are similar to architectural drawings
and help the retailer to understand where the merchandise should be stocked in order to catch
the customer’s attention and make the maximum impact.
Planograms are nothing but diagrams which give the retailer an idea how and where to place
the merchandise to attract the customers into the store. Any good retailer realises the key to
increased sales is through proper merchandising. A planogram is one of the best merchandising
tools for presenting products to the customer.

The planogram is a visual diagram, or drawing, that provides in detail where every product in
a retail store should be placed. These schematics not only present a flow chart for the particular
merchandise departments within a store layout but also show on which aisle and on what shelf
an item is located. A planogram should also illustrate how many facings are allocated for each
SKU.
In this unit, we will focus on meaning and purpose of planogram, benefits of a planogram.
We will also study implementation and maintenance of a planogram.

8.1 Meaning and Purpose of a Planogram

A planogram is a tool in any form which are used by the retailer, which helps determine the
location of merchandise within a department. It is a diagram that visually communicates how
merchandise and props physically fit onto a store fixture or window, to allow for proper visibility
and price point options.
A planogram is created after taking into account factors like product sales, the movement of the
products within the product category and the space required for the various products. They
usually list the exact number of square feet used for the various products and the exact number
of products to be displayed in a particular area.
Planogramming is an inventory control and merchandise display method that allows a retailer
to maintain shelf inventory in an orderly way to improve efficiency and customer service.

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Caution The complexity of a planogram may vary by the size of the store, the software
used to create the planogram and the need of the retailer.

8.1.1 Retail Planogram

Planograms are diagrams that show where products or merchandise should be placed on a shelf
or other sort of display. The idea is to maximise the amount of merchandise on the shelf and the
amount of sales by arranging in such a way that makes it appealing to the consumer while
minimising wasted space.
Planograms differ significantly by retail sector. Fast-moving consumer goods organisations
and supermarkets largely use text and box based planograms that optimise shelf space, inventory
turns, and profit margins. Apparel brands and retailers are more focused on presentation and
use pictorial planograms that illustrate “the look” and also identify each product.
Often retailers use planograms to decide how best to get as much on their shelves as possible or
increase sales. Even more often, however, the suppliers will send a planogram before sending
their product as a suggestion to help in displaying their goods so they can be easily seen and will
be placed alongside like objects.

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