What Is A Planogram? (How To Use It, Tips And Benefits)

Indeed Editorial Team

Updated 25 September 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Merchandising highlights an organisation's efforts to advertise its goods to consumers and persuade them to make a purchase successfully. While advertisements and other promotional efforts are major components in increasing the revenue of a business, this also refers to the specific choices retailers make for their physical stores. Learning more about the subject can help you increase the sales of the organisation you work for and help you grow as a professional.

In this article, we answer the question 'What is a planogram?', discuss how to use them, explain how to read one, provide tips and share its benefits for your understanding.

What Is A Planogram?

Learning the answer to 'What is a planogram?' is important for those who want a career in visual merchandising or manage a brick-and-mortar store. Planograms are a crucial means for creating visual merchandising selections to entice clients to make purchases. A planogram is a visual marketing tool that frequently forms a part of a bigger visual marketing strategy. It is a graphical depiction, model or plan that establishes the specific layout of stores. Other names for a planogram are shelf space plan, schematics, space plan or POG.

Planograms are frequently in-depth and offer instructions for positioning each unique product to produce uniform, methodical presentations. It shows potential sections for the store, their locations and details the precise positions of each item by aisle, display or point of sale.

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How To Use Planograms

Here are a few steps you can follow to create and use a planogram:

1. Consult an expert

Consider the retail locations, merchandise and clientele as you look for new layout concepts for the planogram. Consulting professional to discuss what might work perfectly for the store as you evaluate various concepts. Even if you cannot have access to a qualified full-time planogram specialist, you might seek an eligible outside visual merchandiser or assign a visual merchandiser on your team the task to design a planogram.

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2. Find a suitable software for creating a planogram

You may draft initial planogram concepts on paper using a pencil but it is typically worthwhile to create formal designs and soft copies using the appropriate software. Investigate the many software options available in the market and invest in one. Depending on the business or the unique requirements of the store, you may select the best one for the task.

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3. Design a planogram

Start creating your planogram based on your initial market studies and rough sketches of concepts. Consider using a template provided by the software you selected previously. Assign tasks to each section of your store after dividing it into several areas and then decide how you want to arrange each product on the shelves or other fixtures. A great shelf space plan is visually appealing to the customers and can tempt them to buy more products from the store.

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4. Implement the planogram design

After creating the design and finalising it, you can start implementing the approved schematics in the store. Give physical copies of the POG to the required associates or give them access to digital ones. In addition, you may instruct your team on what a planogram is and how to utilise it. This can help the staff in reorganising the store and its merchandise per the established plan so they can more readily service clients.

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5. Review and update the planogram

It is also crucial to examine and update your planogram regularly, which may involve changes for the entire shop or only a few sections. This might happen frequently in the store, depending on the natural sales cycles or seasonal changes. You can choose where to position specific products by looking at sales data from earlier times to discover the busiest locations of the store.

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Tips On How To Read A Planogram

A well-produced POG can show you the best layout for placing the stock-keeping units (SKU) in the store. Knowing how to read one is essential for guiding other personnel and helping them organise the store accordingly. Follow the tips given below to better read a planogram:

  • Understand the specifications. To read a POG, comprehending the requirements or measurements, along with the type of display or shelf space often used, is usually necessary. Coolers, gondolas, pegboards, vending machines and slat walls are a few examples of typical display types.

  • Recognise the products and brands on display. Carefully match those specifics with the products offered in the business, as the planogram typically contains these details in the design as well. This can help you strategically place items to encourage sales.

  • Decide on the right product placement. You can follow the design of the POG to decide which items to stock and where to place the products. Adhere to the planogram's recommended number for the facings of these products.

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Benefits Of Using A Planogram

Here are some benefits of using a shelf space plan in the store:

Establishing a consistent design layout

Chain retailers benefit the most from using planograms. It establishes uniformity among the designs and aesthetics of many store locations. Customers may enjoy a better overall shopping experience because of knowing where to find the goods they require more frequently. For instance, because they are familiar with a certain area, they can visit a store there or perhaps one that is close to their home and locate things conveniently. They may visit a chain store while on a trip and feel confident about the layout. This may help enhance customer satisfaction and to grow reputation.

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Enhancing inventory management

Effective planograms encourage improved store organisation and help you determine the quantity of a certain product you require and can stock. By ensuring the shop possesses the necessary products and enough space to accommodate them, a POG enables improved inventory management. The ability to more accurately assess the requirements within the business may prove beneficial for larger stores that collaborate with third-party sellers.

Optimising store space

You can optimise the space available in the store and use it more effectively with the help of a planogram. Designate each area of the shop in this diagram with a certain function. You can make use of sales data throughout this process to use the space as efficiently as possible and position the right products in prime sales locations.

Increasing visual appeal

Using a planogram helps you to put things in the store according to where they might sell the best and where they appear the most enticing. This usually results in more attractive stores that appear inviting to customers. It might, for instance, group comparable products or put related packaged items close together, like kitchen or electronic appliances.

Enhancing sales

Planograms usually focus on grouping products according to client preferences to create efficient tactics to increase sales. Based on which products sell the most and their location within the store, you can review past sales data to determine the ideal sales areas within the establishment. You may even map prospective consumer pathways similarly. This enables you to store products customers require together to promote additional purchases. You may also arrange essential goods on opposing ends of the store to encourage customers to make quick purchases while walking the distance between the two sides.

Improved employee engagement and performance

Using planograms might enhance staff performance. These designs help allocate a specific location for each product, enhancing employee knowledge and improving customer service. This may help the employees experience increased confidence and drive to succeed and meet organisational goals.

Tips For Using Planograms

Follow the tips shared below when using planograms:

  • Start simple. Make a basic planogram first. When first implementing them, it is crucial to construct a simpler planogram and procedure to build a system you can maintain.

  • Ideate the overall product package. Consider how the packaging for your products might appear when you create your planograms. Think about what might attract customers and how to produce a visually appealing environment.

  • Understand your target market. Create POG based on consumer feedback and experiences. Knowing how customers prefer to browse and use your items may help you design an experience that caters to their wants and preferences.

  • Educate other employees. Provide training to store personnel in the usage and interpretation of planograms. Consider laying out explicit instructions for them to follow when you execute the design.

  • Select area leaders. You might designate employees as area leads for various departments in the shop. This gives them the authority to oversee the section's visual merchandising and perhaps even find methods to enhance the next planograms.

  • Determine the effectiveness. Regularly evaluate your sales to determine how well the POGs are working. This might assist you in identifying what functions well and potential opportunities for improvement.

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