19 Mar

Why is it important to maintain planogram?

planograms maintain important

Many of todays business use planograms to effectively display their products. However, it is not only important to implement planogram but also maintain it.

What is a planogram?

Planograms are the arrangement of goods on shelves according to a prepared plan. In most cases, planograms are prepared taking into account the demographics of the region and the specifics of consumer behaviour in a particular location. As a result, properly selected products highlighted in the plan help customers make more active purchasing decisions. Also, attractively placed products catch customers’ eyes.

5 reasons why it is important to constantly maintain a planogram

1. Efficient use of shelf space

Planograms make efficient use of shelf space, so even small deviations can result in out of stocks or reduced sales. The main purpose of the planogram is to have the right product, of the right quantity at the right location on the shelf, only maintaining it can result in boosted sales.

2. More efficient inventory management

The right quantities of products on the shelves decrease re-stocking activities which can increase inventory efficiency.

3. Special attention to promotional displays

Getting the right place for promotional planograms is essential for retailers and brand owners as it can increase the brand visibility during high season, however, the increased demand in the promotional places should always be complemented by the timely and efficient re-stock.

4. Layouts change naturally over the time

Re-stocking errors can easily occur once the products are purchased and/or returned even if the planogram is correctly set up in the first place. Furthermore, A study reviewed by Cognizant revealed that the planograms go out of compliance at the rate of 10% every week.

5. Workforce issues

The busy store personnel may not dedicate enough time for properly maintaining planograms. Sometimes the empty places on the shelves are filled out with any other product than the one specified usually it is the bestselling or the one with the largest quantities left. Therefore, the miss – stocked or misplaced product can easily result in a lost sale.

Undoubtedly planogram is an effective tool for shelf space management and better sales. However, it requires not only careful planning of each product’s placement but also constant care. @ServingBaltics we make sure that the planograms are thoughtfully and comprehensively maintained. Want to find out more? Visit our merchandising section.