People are not sure about the real function and purpose of a planogram so many tend to feel confused about it. Most of the confusion arises with the plano guide. People think that a meaningful planogram can be made without the use of the sales data. But that is impossible. The main purpose of the planogram is to increase the sales. This is ensured by allocating the most popular and the profitable products on the shelf so that it can mainly grab the attention of the customers.
They are also updated on special events and time to time with changing seasons. This is also known as shelf space plans, Plano’s, POG’s or the schematics. They are a tool that helps in visual merchandising. It is a model that indicates the position of the retail products on the shelves. They also indicate the number of facings each of the products should have also that the sales maximize. The significance of the planogram software is hence described underneath.
Because of the store layouts, they serve as an opportunity for the retailers to provide a consistent sales strategy. So, whiles your consumers are visiting the stores, they are going to have an experience of your sales strategy.
Space Elastic Demand
The number of facings that a product is allocated has a significant impact on the production sales. It is important that the products that are both profitable and popular to be allocated with a larger space than any other kinds of products. The opportunity cost for the retailers is a significant one in this respect.
Measurement of Product and Category Performance
After the implementation of the plano design, the outcome was analyzed. Later it was utilized into the making of next generation planogram software. This redesigning means that the store spaces are refined continually for consumer satisfaction ion and optimized sales.
Right Time to Design Plano
The planos are designed one or two months before they are implemented in the stores. Even with seasonal changes, they are updated. When you are opening a new store you can get your store designed. It is helpful for Category Management Strategy.
Interdependencies of the Software
- Assortment Planning– Do you know what your assortments are? They are the range of products that you decide to keep in your store. You need to have a good assortment planning strategy before you can design a meaningful planogram. This can also be done with the help of a software.
- Data Driven Software– They are designed using special software that is connected to internal and external sales data. This informs the users about affects the allocation will have on the sales of the product. This is good for the inventory management and sales forecasting.
- Store Clustering– If you are having a number of stores then planning individual stores can cost you a lot. To come to terms with this problem, similar stores are often grouped together. Thus, a single set of the planogram can efficiently design and apply it to the stores saving their resources.
As a retailer increasing the sales rates is your first priority. To do it effectively you can always take the help of planogram software so that your stock reaches out to the customer’s basket smoothly.