What is a planogram and how to implement one in your business with just 5 steps – WAU
The planogram is a tool that makes it possible to increase control over the flow of products, retain customer loyalty and optimize brand exposure. To prepare this document, it is necessary to take strategic actions based on the behavior of consumers inside the store.
Increasingly accustomed to the ease offered by shopping in virtual stores, consumers intensify their requirements related to the experience in physical stores. Thus, to ensure the practicality, safety and accessibility of customers, an establishment must plan the layout of its products in a strategic way.
In addition to favoring the public’s experience, the practice gives brands the opportunity to optimize the flow of products. Positioning on gondolas influences consumers’ purchasing decisions. To guide this planning, the marketing team creates a graphic representation called a planogram.
Continue reading the article to understand the concept and the importance of this document. At the end, we will address the main steps for preparing a planogram for your business.
What is a planogram?
Also known as gondola plan, the planogram is the tool used to guide the organization of products in an environment. It is important that the document is presented in the form of graphic design, in order to facilitate the understanding of the person responsible for the replacement of items.
The execution of what is proposed in a planogram is easily noticed when visiting any supermarket. The organization of goods makes clear a pattern, and this is no accident. By separating items into specific categories, for example, the establishment makes the customer experience more practical and satisfying.
Naturally, the characteristics of the products are not the only factors taken into account when drawing up the planogram. Even within a category, such as cleaning, there are minimally planned details by Marketing professionals to optimize the organization of the shelves.
It is common to notice, for example, items intended for children, being exposed in lower gondolas, within the reach of small ones. The same concept means that products that represent a higher profit margin for tenants are allocated at a time that is within the line of sight of most people.
In addition to focusing on how the goods will be distributed on the shelves, the planogram defines other details. It is important that the document determines the number of items displayed, the separation of different types of products, the height of each column and the length of each row.
It is crucial that, when preparing the planogram, the brand establishes an agreement with the retailer. Depending on the advantages of the desired position and shelf, the negotiation may face competition from other suppliers.
How important is the gondola plan to the point of sale?
Imagine entering a supermarket to buy a packet of cookies and noting that all available products are distributed at random.
The task, which could take two minutes, now requires more time and dedication on your part. The hypothesis may seem extreme, but it helps to understand what happens on a smaller scale if the planogram is neglected.
As we know, consumer 4.0 expects a fast, efficient and satisfying shopping experienceFor this reason, many prefer e-commerces when purchasing their products.
In this way, any time wasted in physical stores can cause a feeling of frustration, which affects the company’s image and makes customer loyalty more difficult.
To ensure that the time spent within the establishment is satisfactory, the planogram is an indispensable tool. With it, it is possible to harmonize the distribution of items on the shelves, making them more accessible to those interested.
It is easy to see one of the main advantages of this tool: the increase in sales volume. With products displayed in an organized way, consumers have an easier time finding what they want, even what was not even on their list.
This is because, with the use of specific strategies, it is possible to create need and purchase desire in customers. This is what often happens in supermarkets, when sweets, drinks and other small consumables are offered at points near the checkout line, where waiting stimulates consumption.
In addition, the planogram is essential to work on brand recognition. Exhibiting products at popular POS points – or on privileged shelves – activates people’s subconscious, making them closer to the brand and, thus, increasing the chances of purchase.
Product flow and replacement
With the establishment of the planogram, employees tasked with carrying out product replacement have the task made easier. That way, you prevents damage caused by empty shelves and, again, optimizes the visitor experience.
Another factor that makes the gondola plan essential is the possibility of controlling the flow of products. Goods that are difficult to generate demand can be placed close to complementary items, that is, which are often purchased together.
You may also be interested in these other content!
Invest in relationships and increase agency customer retention
Trade Marketing: what it is and how to position your goods
Pop-up Store: what it is and how to create one for your business
How to implement a planogram?
It is already more than clear that the elaboration of a graphic design to guide the organization of products at the point of sale is essential for the results of the business.
Now, as promised at the beginning of the text, we will pass on some practical tips for its elaboration and execution. Read on!
1. Involve the entire team
For the planogram to be executed efficiently, it is essential involve the whole team in the drafting processNaturally, decisions are the responsibility of the marketing department, but the participation of employees facilitates their understanding.
If the store in question has management organized into departments, you must ensure that everyone is aligned and aware of the process and their respective responsibilities in it.
At this stage, it is essential to make clear the objectives and results that managers hope to achieve with the implementation of the plan. This point is necessary to make it possible to monitor the execution of the planogram, a subject that we will address shortly.
2. Ensure evidence for the most profitable products
Throughout the article, we made it clear that the location of a product at the point of sale can attract more buyers. One of the most efficient techniques in the elaboration of a planogram is based on this fact to combine the useful with the pleasant.
From internal analysis, it is possible to identify the goods with the greatest potential for ROI – that is, those that were produced or purchased at costs considerably lower than the prices at which they will be sold.
By exposing products that have a higher rate of profitability in places of evidence, such as shelves that are in the line of sight of customers, you increases the sales volume of the items. Thus, in addition to facilitating the customer experience, your establishment creates a way to stimulate your own profit.
3. Position the best selling items away from the entrance
It is important to keep in mind that the planogram is not limited to guiding the positioning of products on shelves. In a macro sphere, the document can determine the general organization of the establishment’s gondolas, always thinking about the customer experience when entering the store.
For this, analysis of consumer behavior within the store is necessary. The paths taken by the person from the moment they enter should be organized in order to encourage purchase decisions. Naturally, the greater the path taken by the customer, the greater the chances of executing this strategy.
For this reason, an interesting practice is to place the most popular items far from the front door.
The reason? As they are the best sellers, we can assume that buyers already arrive at the establishment determined to find and acquire them. If they are located right at the entrance, the customer’s time at the point of sale can be reduced.
On the other hand, by allocating these goods in places that require travel in the store, you increase the likelihood that people will be interested in other offers.
4. Make promotions at strategic points
The promotion of promotions is a widely used method to attract customers and boost sales – and not only for products on sale. That’s because, when visiting the establishment to check an offer, chances are high that the public will be interested in items located in the vicinity.
In this way, promotions can be seen as a way to give life to the sector in which they are carried out. Imagine, for example, that an item has a considerably reduced price, attracting the audience’s attention. By placing it close to less visited areas, you allow other goods to be noticed.
Another way to strategically locate promotions is with the assembly of specific stands for this purpose. A customized shelf to publicize a launch, for example, helps to arouse people’s curiosity.
There are also seasonal promotions. Visiting the market near dates like Christmas and Easter is guaranteed to find stylized piles of panettone or to walk under a roof of chocolate eggs. This is a way of using the planogram to highlight products on the rise.
5. Follow the execution closely
To guarantee the correct execution of the planned ideas, we have already highlighted the importance of involving all teams. There is, however, one character that must gain special attention: the repositor. It is essential that this professional has easy access to the planogram and understand its role in the process.
Once implemented, it is important that the plan is closely monitored. Listening to employee and customer feedback generates valuable insights for strategy optimization. Keep in mind that the planogram is a document that must be updated periodically, even to include the insertion of new products.
A well-designed and efficiently executed planogram can be the differential for the success of an establishment. With goods organized in a simple way for the consumer, the sales volume increases and loyalty becomes viable. The result is the growth in profit and brand exposure.
Now that you understand the importance of the planogram for an establishment, how about learning how to set up your point of sale? Just check out this article!