Most retailers especially those
that are in the supermarket, groceries, hypermarkets, beauty shops,
perfumeries, pharmacy, convenience stores, drugstore retail businesses have a
blueprint of shelf stock allocation count, phasing or what we commonly call the
“planogram”, to determine the appropriate stock required for the product
assortments and mix and to ensure the steady replenishment of merchandise in
their gondola shelf.
This is a tedious work based on
actual shelf size and stacking, a retailer must know how to estimate the size,
boxes, how the look of the shelf should be.
It is important for one to have a planogram to know the store
requirements for a given stocks(merchandise) to avoid store overflowing of
merchandise.
Most retailers these days also use
the planogram as basis determined by sales volume, as per category, supplier,
and sales contribution. Oftentimes for
big multinational suppliers, who wants to occupy a more dominant store shelf
space can offer to pay for the rental of the store shelf in order to have a more
visible area in the given store.
This is one way for retailers to
maximize shelf space and even earn from those willing to pay for rental of the
shelf spaces if they want to have a more highlighted store space.
What is a
Planogram?
A planogram is a diagram used by
retail chains to determine the merchandise layout of any given store. The
overall goal is to provide customers with the best-selling merchandise and to
guide the customer through the store in a way that produces the largest sales
volume for the retailer.
A planogram contains a visual
schematic as well as a product listing, which is used by a merchandiser to
place the products on the shelf. They
are designed to aid the space and shelf management of the store which are
updated frequently to keep up with the ever-changing marketplace, product
offerings, new products.
Purpose
The planogram provides the merchandiser, with a guide as to how
the store should be laid out and the proper space allocation for each section.
For example, a grocery store usually contains a series of 4-foot shelving units
known as gondolas and may allow 20 feet of shelf space for canned goods, 24
feet for prepared dinners such as canned pasta or 32 feet for condiments. The
planogram will also tell the merchandiser where each particular item needs to
be placed on the shelf and in what quantity.
Components
Typically, there are three main components to the planogram: the
cover page, the schematic and the stock keeping unit (SKU) listing with
accompanying Universal Product Codes (UPC). The cover page includes general
information and instructions. The schematic shows the overall layout of each
section along with the number of shelves needed and the proper shelf heights.
The SKU listing and UPC codes tell the merchandiser the correct placement of
each item and the proper number of facings, or number of shelf positions, each
product is to receive.
Layout Design
It used to be that planograms were
drawn by hand with the use of a mechanical pencil, a ruler and graph paper.
These days, larger retail chains use computerized space management software to
lay out a store set. The program makes use of information such as the size of
the product and how fast it typically sells to determine proper shelf
positioning.
Retail Implementation
Store
sets are usually carried out by a team of professional merchandisers or by
store employees. If possible, store resets are conducted while the store is
closed, although it is not uncommon to perform them during shopping hours. The
merchandisers normally work in teams, with each member possessing a copy of the
planogram for the section being set.
Regularly Updated
Planograms are not static. As new products enter the
market and old ones are discontinued by the manufacturer, there is a need to
update the planograms both at the home office and in the store. The use of an
effective space management program can make changes easier to manage for both
headquarters personnel and the merchandisers.In conclusion, I will have to say, in order for a retail store to have an organize shelf space usage and maximize the per square meter gondola space, one must have a dynamic planogram team who can manage, produce shelf lay out as fast as the market products turn in the store. This can also be a money spinner for MNC's who may want to promote and highlight their new products.
