Page 164 - DMGT552_VISUAL_MERCHANDISING

Unit 8: Planograms

Notes
Figure 8.1: Planogram

Source: http://www.dmsretail.com/retailplanograms.htm

8.1.2 Purpose of Planogram

Product placement and improved sales are just two very basic reasons a retailer should be
implementing planograms in their shops. Planograms provide many other positive benefits,
such as:

1. Assigned selling potential to every square foot of space
2. Satisfying customers with a better visual appeal
3. Tighter inventory control and reduction of out-of-stocks
4. Easier product replenishment for staff

5. Better related product positioning
6. Effective communication tool for staff-produced displays

8.1.3 Need for Planograms – Why Planograms?

1. Presentation of product plays an important role at the retail store. With the help of
Planograms; a retailer can actually know where to place the products for the maximum
effect.
2. Planogram enables the retailers to stock the products at the right place and at the right
time to attract the customers and prompt them to buy.
3. A retailer can make the best possible use of the available space with the help of planograms.
4. The merchandiser can actually create an attractive display to entice the customers with the
help of planograms.

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