Planogram strategies are in play when retailers arrange related products within reach of each other. In such cases, planogram designs serve as in-store marketing tools that inadvertently encourage shoppers to buy several related items at one time. Product suppliers pay close attention to planograms because they know product placement affects sales.
A planogram is a diagram that shows retailers where to put products on shelves, racks and other store fixtures. On average, store sections get shoppers' attention for five to six seconds, according to "Retail Merchandiser" magazine. A planogram that's well executed can be the key to making a sale in those few seconds. For example, customers who are shopping for toothpaste may notice the mouthwash nearby and remember that they're out of mouthwash too.
Retailers refer to planograms to determine shelf heights and the number of facings products have. Shelf heights partly depend on the size of products, but they're also adjusted to keep items within reach of shoppers. Retailers call a row of products a facing, so three rows of items would equal three facings. The number of facings is important because the best-selling and most-profitable products generally receive the largest number of facings. Those products also are usually at eye-level to make them easier for shoppers to see.
Product suppliers use planograms to show the amount of space they want retailers to allocate to various brands based on product popularity and sales. Planograms also are drawn up to present new ideas for product displays. The diagrams play a role in inventory control too, because they help retailers determine the amount of inventory to keep on hand to restock shelves in accordance with the shelf space provided to each product.
Consumers make several of their buying decisions while they're shopping, and an effective planogram can influence several of those decisions, according to "Retail Merchandiser" magazine. For example, a shopper who can't find a favorite brand at a store may purchase a similar product that’s a better value instead of forgoing a purchase, because good planograms place competing products near each other in a product display. Additional sales may result from appealing planogram displays that move shoppers to make unplanned purchases when they like the way displayed items look, smell or operate.
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