If you look closely at the shop windows, you will notice that all products are laid out on the trading floor in a certain order. Properly positioned product meets these basic characteristics:
- this position should be easy for the buyer to find on the counter;
- the product must be noticeable, it must stand out among similar items;
- the product must promote not only itself, but also new or related products of the same brand.
The sale of a certain product in any store is controlled by the representatives of the distributor. Specialists who determine the completeness of the presented assortment on the shelves, the correctness of its location and evaluate the sales of this product are called merchandisers. The main tool of such a professional is a planogram.
What is a planogram
Planogram is one of the main tools for promoting a product on the market. It is a drawing, a graphthe location of goods on the counter, in a refrigerated display case, on a store shelf. With the help of it, a representative of a trading company checks whether the goods are laid out correctly, whether the assortment corresponds to a given brand, how much space is occupied by a particular product. A planogram is usually a flyer with photographs of the correct arrangement of products. Each merchandiser, upon entering the store, has the right to go behind the counter and rearrange the goods in accordance with the current planogram.
How a planogram is developed
Product planogram is developed by order of the manufacturer or at the request of the trademark owner. This takes into account the following main factors:
- current demand for the top positions of this brand;
- the presence of the necessary minimum of a commercial product in this outlet;
- current or expected promotions and sales;
- joining a related product to the main product in order to increase sales of the latter;
- entry into the assortment of a new product or a product with a limited supply / limited edition in order to familiarize the buyer with new products.
All these questions are worked out by specialists of sales departments of large companies, and on the basis of these developments, a planogram appears. An example of a simple supermarket food layout is shown in the figure.
How a planogram works
After the development of planograms in the form of flyers, they are provided to wholesalers and purchasing firms that deal withdelivery of goods to the places of sale. They are distributed to sales departments of distributors, who provide planograms to merchandisers and sales agents. It is these employees of the sales departments who are obliged to control the location of the goods of this brand in retail outlets. Any planogram is the main reference point for commercial departments of supermarkets, managers and retail store managers. It is they who are responsible for maintaining the correct layout of the goods according to the planogram. If the product is displayed correctly, its rotation is observed, and the necessary inventory is regularly replenished, then sales of this product increase.
Pen alties for non-compliance with the planogram
When concluding a contract for the supply of products, a prerequisite is the observance of planograms when laying out goods. For the fulfillment of this condition, the buyer receives bonuses in the form of a free promotional product or a cash reward. The planogram is a confident argument in negotiations with stores. If the supplier’s requirements are not met at the point of sale, the rules for displaying goods according to the planogram are not followed, if merchandisers are not allowed on the shelves, the supplier has the right not to pay bonus remuneration, and in the future has the right to terminate the contract and completely stop supplying goods to the store.
