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.
Read also: Benefits of Retail Audit, Market Price and In-Store Stock for Principals
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.
2. Convince retailers that your product can help their bottom line.
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.