Reasons Why Planograms Are Essential For The Retail Sales Plan


There are several misconceptions related to the function and real purpose of a planogram. However, in literal meaning, it is a diagram which tells as to where and how certain products should be placed on the display shelves in stores so as to increase the sales. This ensures that the most profitable and popular products are allotted the right number of facings. A person who does all this is known as a planogrammer and uses his/her skill in retail space planning and merchandising.

Without proper data, any allocations that you assign to the product would be just speculation. Listed below are a few points that would help you in understanding as to why these diagrams are important for the retail sales plan.

Helps Suppliers in Optimising Product Development

The suppliers would be able to get optimum product dimensions as they get the chance to adjust the dimensions of products in real time. By getting the chance to adjust the dimensions on a planogram, the supplier would also be able to look at the impact that this change would have on the stock value, capacity and profit of the product.

The supplier would also get the opportunity to alter the pack shots on the plano that would let them analyze what impact the newly created pack shot would have on the shelf. This helps them to create a category that would attract more customers.

Ensures that Brands Gain Enhanced Space Allocations

These diagrams work excellently in reflecting what is actually happening in the broader marketplace instead of just the particular retail store. The suppliers purchase this market data and then utilize it for designing their planograms so as to spot authentic market opportunities that are then forwarded to the retailers in a data-driven and enthralling way.

Taking benefit of these opportunity gaps comes in the way of assigning additional spaces to a certain brand, new line introduction of the brand as well as ordering extra stock on the basis of the additional capacity of the Plano.

A Dependable Way of Ensuring How Brands Should Be Positioned By Merchandisers

As is quite obvious, it does become quite difficult for the merchandisers or the store staff to position the products if they do not really have a plan in their hands that speaks of your vision. The plano presents a clear diagram which would tell the merchandisers as to how the brands and their products should be exactly positioned.

If we look into this practically, allocations of the space do really have an impact on the sales of the products. This is the reason why the suppliers need to make sure that their brands are getting appropriate allocations on the shelves of the stores.  The suppliers make use of the plano so as to help the merchandisers to execute their plans in the stores.

With the help of this diagram, you would have a better grasp of all your products performance. By redesigning your Plano continually, the store space allocations can be constantly improved and refined for customer satisfaction and optimized sales.