Store Planogram – Importance and Why You Should Digitize the Compliance Monitoring
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Planogram and Why Retailers Need It
Planogram is a visual technique of diagram, floor plan, sketch or photo, which details the quantity, color palette, displays, product and banner alignment on the shelves of stores. The goal is to maximise sales by attracting customers to buy and a way for store staffs to easily put products in the right, strategic and optimal place. Planogram is usually strategized by the marketing team or visual merchandiser, and monitored by field merchandiser or field salesmen.
The average space of general trade stores is 12m2 and sells 25 product categories on average. A proper allocation of shelf space will increase the value of potential sales per unit area size.
For your product to stand out from the competition you need to ensure your planogram at all times. It is important because if the location of the product is:
- difficult to find
- very messy
- not in their line of sight
- not maximizing the shelf space
consumers may end up buying your competitor’s product instead.
- Create appealing visuals
- Out of stock refills
- Analyze reports planogram
- Motivate consumers in buying additional products they didn’t really plan on buying
- Make sure the product doesn’t run out on the shelves
- Help product team in designing product package that is eye-catching and functional on shelves
What Determines A Good Planogram
A good planogram has a strategic placement that drives up purchasing decisions for consumers who are planning to buy while also giving alternative choices for consumers who aren’t planning on initially buying. They’re also consistent in all stores so that your consumers will be familiar with your brand.
It is also important to make sure the product doesn’t run out on the shelves by conducting frequent out-of-stock refills. If the process is conducted by store staffs themselves, merchandisers can check the execution during their regular visit.
How to Negotiate the Most Strategic Placement as A Principal
Getting the best shelf positioning can have a real impact on profit. So, it’s important that whenever you, as a principal, go on a negotiation with retailers and stores, you need to keep a couple of things in mind:
1. Draw up the most effective marketing strategy for your brand.
From packaging, promotions and other sales materials, brands need to ensure that it’s functional yet eye-catching and stands out from the competition.
You can back up these claims by using historical sales data and how you can compete with your competitors in the industry.
3. For smaller brands consider pitching to small retailers that don’t require slotting fees.
Keep in mind that slotting fees are expensive, if you’re starting out, wait until your brand is more established in the market
A convincing marketing campaign is critical for gaining retailer’s trust. If retailers realize that they can grow their business together with you , they’re much more likely to give you better shelf positioning.
Planogram Tips and Tricks
- Track the success and failures of planogram using visual audit merchandising every month.
- Ensure product and promotional materials are placed in the right location according to its planogram, immediately refill empty shelves, and repair any damaged labels, posters, etc.
- Train employees (merchandiser, salesmen, SPG) properly and provide them with the right tools.
Monitoring Planogram with Advotics Apps
Distribution Management System comes with a planogram module to help companies ensure their planogram in stores. Marketing team can send out planogram references to all employees, then the field team (merchandisers and SPGs) can ensure and follow the product arrangement in stores is the same as the design. Then they can take photos, write reports, even collect surveys of questionnaires and send them back to the main office.