Planogram
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Planograms, also known as plano-grams, plan-o-grams, schematics, POGs or simply plans, are visual representations of a store's products or services on display. They are considered a tool for visual merchandising. According to the Merriam-Webster Dictionary, a planogram is "a schematic drawing or plan for displaying merchandise in a store so as to maximize sales."[1] The effectiveness of the planogram can be measured by the sales volume generated from the specific area being diagrammed.
Overview
[edit source]Planograms are predominantly used in retail businesses. A planogram defines the location and number of products to be placed on display, often with detailed specifications on the number of product facings and spacing; shelf layout, height, width, slant and depth and necessary or recommended chiller conditions (e.g. fresh meat versus white wine). Any other information deemed necessary or useful can be included. The rules and theories for creating planograms are set under the terms of merchandising. For example, given limited shelf space, a vendor may prefer to provide a wide assortment of products, or may limit the assortment but increase the facings of each product to avoid stockouts.[2]
Placement methods
[edit source]Visual
[edit source]Visual product placement is supported by different theories: horizontal, vertical, and block placement. Horizontal product placement increases the concentration of a certain article. Research indicates that a product's shelf location, including its position relative to customer eye level, has a substantial effect on its sales.[3][4] This depends on the customer's distance from the unit. Vertical product placement puts products on more than one shelf level to achieve 15 centimetres (5.9 in) – 30 centimetres (12 in) of placement space. Similar products are placed in blocks. A store's layout can be compared to a book, with each module a page: customers "read" a module from left to right and top to bottom. Goods are typically arranged from least to most expensive along the shelf, though a retailer may reverse this to promote particular goods, as luxury retailers often do.[5]
Commercial
[edit source]Commercial placement is determined by both market share placement and margin placement.[6]
References
[edit source]- ↑ "planogram(plan·o·gram)". Merriam-Webster Dictionary. Merriam-Webster, Incorporated. Retrieved 4 February 2022.
- ↑ Rajesh., Ray (2010). Supply chain management for retailing. New Delhi: Tata McGraw-Hill Education. ISBN 9780070145047. OCLC 616081266.
- ↑ "The way the brain buys". The Economist. 2008-12-18.
- ↑ Drèze, Xavier; Hoch, Stephen J.; Purk, Mary E. (1994). "Shelf management and space elasticity". Journal of Retailing. 70 (4): 301–326. doi:10.1016/0022-4359(94)90002-7.
- ↑ "What is it PLANOGRAM". QuantRetail.com. Archived from the original on 2019-01-04. Retrieved 2019-01-04.
- ↑ "PLANOGRAM". prezi.com. Retrieved 2018-10-17.
External links
[edit source]
Media related to Planogram at Wikimedia Commons
