Page 165 - DMGT552_VISUAL_MERCHANDISING

Visual Merchandising

Notes 5. Planograms indirectly also contribute in maximising the sale of the merchandise and thus
generate revenues for the store. A cluttered store fails to attract the customers. The
planograms help the retailer to arrange the products in the best possible way for the
customers to pick up almost everything.

8.1.4 When and How is a Planogram Prepared?

The following description tells about the when and how is a planogram prepared.
When is planogram prepared? A Planogram ideally should be prepared before the merchandise
reaches the retail store. The retailer should be very clear where he wants to place his products to
impress the customers.
How is planogram prepared? There are various softwares available which help to create
planograms. These softwares help the retailers to draw three dimensional diagrams of the store
and help them visualise the overall image of the store.

Did u know? Planograms can be as simple as a photo of a preset section or more detailed
with numbered peg holes and shelf notches showing exact placement of each item.

Big box stores and larger retailers typically hire merchandising specialists to assist in developing
planograms or they may have their own in-house planogrammers. Due to the hefty price tag of
most planogram software, small and independent retailers often resort to using word processors
or paper and pen to optimise shelf layout.
As competition increases, we’re seeing vendors and distributors becoming more aware of the
importance of correctly merchandising their products. That awareness is leading to better point-
of-sale displays, planograms and other marketing aids provided to retailers directly from the
suppliers at no cost.

Self Assessment

Fill in the blanks:
1. ......................... are nothing but diagrams which give the retailer an idea how and where to
place the merchandise to attract the customers into the store.
2. Any good retailer realises the key to increased sales is through proper .........................
3. A planogram is one of the best ......................... tools for presenting products to the customer.
4. Different softwares help the retailers to draw ......................... dimensional diagrams of the
store and help them visualise the overall image of the store.
5. Due to the ......................... price tag of most planogram software, small and independent
retailers often resort to using word processors or paper and pen to optimise shelf layout.

8.2 Benefits of a Planogram

For a retailer who has a number of stores spreads over various locations, planogram is a good
way of communicating how displays are to be done. This allows for consistency in presentation,
across locations. When products are presented in the same manner across locations, the customer
feels familiar and comfortable at each location. This helps to build brand loyalty and customer
trust.

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