Planogram: how to boost your brand's impact in supermarkets

Developing a planogram in mass retail is a crucial step for any brand looking to optimize the presentation of its products in stores. That is why today we are offering you this article presenting the key aspects of the planogram for brands present in retail.

We will explore a methodical process to achieve an optimal result, allowing your brand to pursue its goals:

• Sales increase;

• Increased visibility;

• Improved customer experience.

But let's start with the basics: what is a planogram?

Planogram in mass retail: definition

A planogram is a visual representation of the layout of an aisle or shelf in a store. It generally takes the form of a front view, but can also be presented in three dimensions using software or other digital tools.

The goal of the planogram is to optimize the layout of the shelves to maximize sales. Indeed, since the retail floor space is always limited, stores are constantly looking for ways to make the product offering easier to understand and increase customer purchases. Brands are just as affected: competition drives them to constantly boost their presence, but also their visibility. The planogram thus represents strategic thinking on how to optimize sales per shelf linear meter.

Who creates the planogram?

In the supermarket and hypermarket sector, planograms are generally designed by the banner's merchandising team, then implemented by aisle managers in the points of sale, with a certain degree of flexibility.

These "virtual shelves" help standardize product presentation across all stores of a retail chain, based on merchandising choices whose effectiveness has been previously tested before conducting a regional or national rollout.

The objective? For customers to find a uniform layout of the offering, regardless of which store of the retail chain they shop in.

These planograms are developed using merchandising software and often rely on product image databases. They are particularly useful for organizing and reorganizing shelves in a store. They can also be accompanied by instructions and notes for the shelf-stocking staff.

That is why brands also create planograms.

Indeed, as a brand selling in mass retail, you have the opportunity to suggest specific setups to the retail chains or stores in which your products are sold.

The planogram then serves as a genuine sales enablement tool, and can be a convincing argument when dealing with the department manager or buyer. If you want to, for example, increase your sales volumes - and therefore those of the aisle - you can negotiate a new display layout with the department manager, using the planogram as a supporting element.

Furthermore, the planogram can help conduct tests for layout or packaging.

Let's now focus on the benefits of working with planograms for your brand!

Why make a planogram?

A brand present in mass retail has several important reasons to create a planogram:

Maximization of your products' visibility

Well-positioned products on shelves capture the attention of your customers. By developing a planogram, you ensure that your products are optimally positioned on the shelves to maximize their visibility and accessibility in stores.

Space optimization

Shelves are often limited in terms of space, especially in urban areas. A well-designed planogram allows your brand to efficiently manage the available space and optimize shelf space to showcase your products strategically.

Consistency in presentation

A planogram contributes to a consistent and uniform presentation of your products across different points of sale, regardless of the retail chain. Although distributors are not required to follow your recommendations, it helps reinforce your brand image and consumer recognition of its products.

Better customer experience

A well-planned planogram makes it easier for customers to find your products, which improves their in-store experience. Consumers are more likely to buy products if they can find them quickly and easily.

Sales promotion

A planogram can be used to highlight promotional products or new items, thereby increasing sales and customer attention on these specific products. It is therefore an important tool to convince your retailer to support your promotional actions. A good planogram can make your contact feel that you have fully understood their sales goals and that your vision is aligned with their objectives.

Collaboration with the distributor

It can therefore be considered a way to collaborate effectively with the retailer within a trade marketing perspective: visual representations of the shelves align your brand's goals with those of your retailer by finding win-win solutions to maximize sales.

Inventory management

An effective planogram helps manage inventory more precisely by forecasting restocking needs. Inventory management has a significant impact on your profitability, but also on that of your retailer. This is therefore an argument to add to your pitch when trying to sell a new layout.

10 key steps to make an effective planogram

For your brand to make an effective planogram in mass retail, it should follow these steps:

1. Data analysis: start by collecting as much data as possible on sales, consumer preferences, seasonality, market trends, and any other relevant information to define your shelf implementation strategy. This data will serve as the foundation for planogram planning.

2. Clear objectives: define specific goals for the planogram, such as increasing sales of your flagship product, promoting new items, or improving your brand's visibility.

3. Product knowledge: make sure you have a good understanding of your product positioning as well as your competitors' positioning: knowing the features and benefits of each product is crucial to deciding their optimal shelf placement.

4. Collaboration / negotiation with the distributor: work closely with your distributor. Store visits should be an opportunity to discuss merchandising opportunities, their vision regarding shelf space allocation (or banner-level instructions), and the specific requirements of your commercial partner.

5. Creation of a visual layout: take the time to compare planogram software to create a visual layout of the products on the shelves. Do not forget to integrate price tags, signage, and any other element likely to increase the relevance of the mock-up and impact sales if the project is approved.

6. Testing and adjustment: before implementing the planogram, we recommend testing it in a pilot store. This allows you to identify necessary adjustments before a larger-scale rollout. Keep in mind, however, that you may need to adapt your approach to different retail chains, or even to point-of-sale store formats, notably due to shelf dimensions or scope of assortment.

7. Staff training: ensure that the staff responsible for stocking shelves is trained to follow the planogram. Very often, your field representatives do it themselves, but sometimes it will be necessary to also take the time to support the aisle managers.

8. Monitoring and evaluation: once the planogram is set up, organize your sales representative routes so you can evaluate sales performance and measure the impact of your strategy. Focus on your key performance indicators, paying close attention to the on-shelf availability rate. Adjustments may be needed over time to optimize results.

9. Internal communication: effectively communicate the details of the planogram to the sales, marketing, and management teams so that everyone understands the goals and strategies involved. Sales and marketing teams must embrace shared goals and resources.

10. Regulatory compliance: a quick check-in with the legal department will help you avoid unnecessary issues: confirm that the information complies with regulations and guidelines of the retail industry, such as labeling standards, food safety, and product presentation rules.

Technical notes and tips

Now that you know all the theory behind planograms, you should know that their appearance varies depending on the industries and the retail chains. This is due to various reasons:

• Dimensions of the retail space, aisle sizes, etc.;

• Dimensions of the shelving units;

• Shelf materials (wood, metal, etc.);

• Integration of point-of-sale advertising (POSM) directly on shelves;

• Listing policy;

• Possibility to stack products (or not);

• Merchandising strategy, etc.

Furthermore, how you want to showcase your brand might involve different graphic design choices:

• Some may choose, for example, to create a close-up or a zoom on their layout: in this case, the entire aisle may appear, but with a perspective in which your products are in the foreground. While highly appealing, this layout can appear misleading or excessive, and a conscientious department manager will prefer a front view or a 3D view that allows them to better understand your project's impact on the layout of the commercial space in question;

• You can also use a white background, coloring only your products. This visual representation respects proportions, and the viewer's eye naturally focuses on the subject;

• Contrary to the previous exercise, you can start with a realistic mock-up, and even integrate competitors' products. This method obviously requires a considerable amount of graphic design work. It requires a well-taken, front-facing photograph from the store floor;

• Generally speaking, avoid being overly creative in styling the planogram: vanity does not help sell, realism does!

• If your project involves theatricalization or large-scale POS materials, create a 3D planogram: it will help the aisle manager visualize the shopper's purchasing experience. It is also the only way for them to confirm that the floor space allows for the implementation of your planogram!

You now know all the basics about the planogram, a very useful tool for multiplying sales in supermarkets and hypermarkets. While they are constantly used by large retail stores, brands can also utilize them. We have reviewed helpful definitions, reasons to use them, and a series of steps and practical tips to optimize your planograms.

All that is left is to wish you great sales!