Ever wondered how retail store shelves manage to look perfectly organized and aesthetically appealing at all times? Apparently, this simple presentation is a result of detailed planning and calculated execution.
In order to optimize the available space, retailers customize displays to specific dimensions of the shelves. This ensures utilization of every inch of the available space. However, when a retail outlet has multiple store keeping unit in different sizes, how will it stay organized? PLANOGRAMS.
Planograms are visual merchandising tools. They provide diagrammatic representations of the store layout, showing retailers where specific products should be placed. For instance, when a retailer decides to place their best-selling products at an eye level, or when he places sugary candies or chocolates at bottom level, it may be the result of a planogram strategy. A well-designed and executed planogram is key to retail success. Although planograms were primarily created to assist retailers, it provides an array of benefits to manufacturers and consumers a well.
1. Planogram benefits to retailers: Considering the limited amount of space available to a retail store, appropriate shelf space planning is crucial to retail success. However, optimum utilization of retail store space is easier said than done. From determining where products should be placed, how many facings each product gets; from analyzing consumer buying behavior to placing complementary goods within each other’s reach, everything has to be carefully planned. Planograms are the most practical tools that guides you in this direction. Let’s have a look at various benefits of planogram to retailers.
- Maximizing sales and revenue
- Timely replenishment of stock
- No more out-of-stocks
- Better usage of limited retail space
- Improved shopping experience for customers
- Consistency in product layout
2. Planogram benefits to manufacturers: Retail space management and product placements are important concepts for manufacturers too. With data driven planograms, manufacturers can find better ways to optimize shelf space allotted to them by retailers. Other than that, planograms help manufacturers in showcasing their product’s value to retailer –thus ensuring higher buy-ins. Let’s see what benefits a manufacturer gets, when he invests in planograms.
- Manufacturers use planograms to generate reports based on data collected from multiple sources. This helps them in understanding marketing trends, performance of different product categories, buying patterns and so on.
- With planograms, manufacturers can be assured that products are displayed as per their vision.
- Provides insights for improved product design and packaging
- Improved relationship with trading partners
3. Planogram benefits to consumers: What does a customer expect from a retail store? An easily accessible, well-organized and logical store and shelf layout- so that they can easily find what they are searching for with minimum effort. Simultaneously, a customer will also expect a visually appealing shopping experience. This is exactly what a planogram offers. Planogram aims at providing personalized shopping experiences to customers.
Introduction to Nexgen POG:
Nexgen POG is a powerful cloud-based visual merchandising tool. It is designed for quick and easy planogramming. With Nexgen POG, planograms can be created by simply dragging and dropping products from the product library. It is a multi-device compatible software that helps you to create, share and edit your planograms anywhere, anytime. It is designed for creating easy store specific planograms that help boost sales and increase revenue.
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