A planogram is an effective visual tool used by retailers and suppliers to illustrate product placement and the quantity of facings each shelf will have/need. Ensuring brands have key positioning and share of shelf is important for a product’s success and is vital that they reflect sales performance, popularity and competition. For some, planograms may seem like a long, daunting task though; having to compile hundreds of products manually all into one place. However, what if you were able to have everything you need to build an effective planogram at your fingertips? And why should you use planograms in your business?
Veronica O’Driscoll, Senior Analytic Consultant – Assortment and Space Optimisation from Nielsen Ireland has identified 14 key reasons why planograms need to be used for products:
1. Category Performance: when sales are continuously up, a category may need to be expanded or may need to have space re-allocated due to growth. But when sales are down, a review of planogram strategy, assortment, layout, and space allocation is necessary to reverse the trend. With the help of an effective planograms solution, you can ensure you’re identifying any issues early and fix the issues as soon as possible. Other Category Performance “red flags” that may trigger a new planogram project include:
a. Retailer is not getting their fair share of the category in the market
b. Retailer is not growing as fast as competitors in the market
c. Significant growth or decline of sub-categories and brands require changes to the planogram layout, assortment and/or space allocation
2. New Products and/or new packages have been introduced and need to be added. Where can they be positioned for optimum performance right away? How many new products can fit into the planogram? Where will they fit?
3. Other retailers have implemented a new planogram strategy, assortment, layout and/or space allocation that compels you to make changes in order to remain competitive.
4. New merchandising best practices have been proven for the category which requires a change in planogram strategy and layout.
5. In-store conditions such as chronic out-of-stocks, potential out-of-stocks, or difficulty shopping and/or stocking have been identified.
6. Geodemographic traits that drive category sales have been identified for stores, but not yet addressed by planogram strategy, assortment, layout, and space allocation.
7. Other categories need to be added or require space allocation changes so now, your category must be expanded or downsized.
8. New store layouts and formats have been developed (for new stores and remodels).
9. New fixtures are replacing old fixtures in the category.
10. A supplier change or a change in the distribution method has been made for the category (or a significant part of it).
11. Innovation or growth has created the need for a new category to be planogrammed.
12. The need to integrate planograms (and planogram data) with other retail systems requires the current planograms to be validated, adjusted, corrected, or possibly even rebuilt to ensure accuracy and proper linkage.
13. A category review and planning meeting has been scheduled by a retailer and it is customary to include new planogram ideas and solutions as part of the review.
14. Retailer has requested new planogram ideas: a retailer may have already defined a “Need for Planogram Change” and has asked their trusted suppliers to present ideas and solutions.
Implementing a planogram strategy into your business doesn’t need to be hard work. With Nielsen Brandbank’s Planogram Solutions you can streamline your approach to category planning, saving you time, money and resources in the process. Nielsen Brandbank can work with you to compile and create accurate up to date product content that can help you plan out your planograms in an effective and timely manner moving forward.
To find out more about how Nielsen Brandbank can help you, please contact Lauren Hunt on 01.5253800 or email email@example.com.