Definition: Visual description, diagram or drawing of a store's layout to include placement of particular products and product categories.

It is a diagram created from photographs, computer output, or artists renderings that illustrate exactly where every SKU should be placed
Also Known As: plan-o-gram, POG

 Received before a product reaches a store. Are useful when a retailer wants multiple store displays to have the same look and feel. (UNIFORMITY)

Planograms essentially should have

It should be visually appealing Represent the manner in which a consumer shops ( or the manner in which the retailer would like the consumer to shop) And embody the strategic objectives of the corporation. There is an art and a science to planogramming. the art is in ensuring that the proper visual impact and presentation is maintained; the science is in the financial analysis portion. The planogrammer must be able to balance these two elements in creating a planogram that is best for the store.

PURPOSE
To communicate how to set the merchandise . To increase customer purchases. To adjust the visibility, appearance and presence of products. To make them look more desirable. To ensure sufficient inventory levels on the shelf or display. To use space effectively whether floor, page or virtual. To optimize short- and long-term returns on investment. To provide a logical, convenient and inspiring productcustomer interface. To make right selection of products available. To facilitate communication of retailers brand identity. To maximize profit per centimeter of shelf space. Understand the relationship between space, sales and profit

PURPOSE
The productivity of space is measured by using sales per square foot of area, since rent and land purchases are assessed on a per- squarefoot basis. When allocating space to merchandise the profit impact on all departments are considered. remember ,the objective is to maximise the profitability of the store,not just a particular department.

PURPOSE
Since the cosmetic department has a realtively high gross margin per sqaure foot,should management give it more space or less space ?the answer depends on whether profitability of the entire store would increase if more space were allocated to this department

Depends on the Retail Sector

Fast-moving consumer goods organizations and supermarkets largely use text and box based planograms that optimize shelf space, inventory turns, and profit margins. Apparel brands and retailers are more focused on presentation and use pictorial planograms that illustrate "the look" and also identify each product.

 There are some consulting firms which specialize in retail space layout and Planogramming.

Some chain stores and wholesalers also create and maintain planograms for their stores.

Understanding the Retail Planogram

These schematics not only present a flow chart for the particular merchandise departments within a store layout but also show on which aisle and on what shelf an item is located.

Customised Planogram
Planograms are created for merchandisers to use when setting the sections in the customers stores. Merchandisers can customize these planograms based on the stores special needs. pictures and schematics of these planograms are provided for use in setting stores sections. Customized Planograms Customized planograms can be created by the regional manager using the Marketing departments standard planograms. These customized planograms take into account specific store sizes and demographics that may not apply to all stores. Once customized planograms are set, scanning tags are affixed to the shelves for reorder purposes.

 Schematic - Planogram
schematic---a computerized drawing of the planogram indicating the number of shelves or peg hooks needed, overall planogram dimensions and product information. Also locate the stock keeping unit (SKU) list. This is a listing of all the products and the number of facings, or the number of times each product is merchandised on the shelf.

Electronic planogramming
Electronic planogramming requires the user to input model numbers or UPC codes, product margins,turn-over,sizes of product packaging or actual pictures of the packaging,and other pertinent information into the program. the computer plots the planogram based on the retailers priorities.

Electronic planogramming
For instance,if the retailer wants prime shelf space given to products that produce the highest returns, the computer will locate those products in the best locations. adjustments to the initial planogram can be made to see how additional space or different fixtures would affect the productivity measures. Like if margins are more important that ,the computer will determine the shelf space priority and the optimal no. of SKUs to stock in that space.

 Recent advances in computer graphics and three- dimensional modeling allow planogarms to be designed ,tested with consumers,and changed, all in a virtual shopping environment.

 A planogram should also illustrate how many facings are allocated for each SKU.
Facing: create the look of a perfectly stocked store (even when it is not) by pulling all of the products on a display or shelf to the front. SKU: is an identifier that is used by merchants to permit the systematic tracking of products and services offered to customers.

 The complexity of a planogram may vary by the size of the store, the software used to create the planogram and the need of the retailer.
Planograms can be as simple as a photo of a preset section or more detailed with numbered peg holes and shelf notches showing exact placement of each item. Hand outs of types of planograms

Market Research Coupled with Technology Provides Practical outcomes and retail intelligence for:
Manufacturers Distributors Retail designers Store managers Lighting designers Suppliers Sales and Marketing teams

Traffic Flow and Planograms!

PLANNING GUIDE
Store Formats Site and Building Planning Site Selection Space Allocation Store Layouts Store Concepts

Images of few planograms

Soft drinks section

Personal care section

Chocolates and refreshment section