A planogram may be referred to as a diagram that helps the retailers in showing the particular place where the products can be put on the racks, shelves or other store fixtures. Planograms serve as effective tools for exhibiting the names of the products in a store. Shoppers’ attention is focused as regards planograms, also called as POGs. They are the visual representation of product shelving that is used for maximizing the sales and capacity. Techniques including cross merchandising are used in making these tools quite effective. They are aimed at the most profitable product placement.
Creating a planogram – It is a process wherein these tools are used for balancing logical organization including grouping of items in the same category. Focus on the customer behavior and psychology is laid for exposing them to the newly arrived and highly profitable products. This process helps to increase the sales with use of cross-selling techniques. The stores group the products by their use. Bread like products is grouped first in the same section followed by jelly, peanut butter or other such items. It helps the shoppers for stocking up such items.
It may be noted that the products that are placed at our eye-level can be sold in great quantities than the ones that are kept on the lower shelves. But the children may have easy access to the products that are placed at the bottom shelves. The children will be at ease to pick up such products and help their parents in taking them home. That’s the reason that most stores prefer to keep the sugary kid-centric cereals on the lower shelves that are easily seen by the kids. However, high-fiber items are usually placed at the higher shelves.
Increasing revenue – Stores intending to increase their revenue must use planograms in such a way that the products meant for sale are placed at the appropriate shelves. As stated above, items usually consumed by the children may be placed at the bottom racks, and the other items meant for general purposes may be placed at eye-level racks or in the higher ones. Identification of high and low-selling items is a must as far as their placing in the appropriate shelves is concerned. This is the basic idea behind increasing sales and thus the revenue in great manners. It is a fact that the buyers do not waste their valuable time and focus their attention on the easily located products. As such the stores must identify their behaviour as regards placing the products in appropriate shelves.
* Satisfying layout is much helpful as it helps the customers to have access to the desired products.
* It is wise to reduce the overstocked and out-of-stock products as the customers may be confused.
* Emphasize on the bestsellers by making use of planograms as regards the placement of items.
* Be wise to allow incentives on higher margin items.
The above tips can be of great help in increasing the sales and the revenue too.
Read More →