Palmer Retail Solutions Blog

What is a Planogram? The Psychology Behind Product Placement.

Posted by Kathy Heil on Jun 15, 2017 6:01:45 PM

what is a planogram?A disorganized floor plan can kill your sales. So can disorganized displays. To prevent such a disaster from befalling your retail store, you need to know how create a planogram.

What is a planogram?

It’s just what the name suggests — a diagram that depicts your merchandise display plan. It shows exactly where every product in your store should be placed. You can sketch your planogram on a piece of paper, or use specialized software to create a diagram that is highly detailed and color-coded. It doesn’t have to be fancy, but it does have to be complete.

It may be tedious, but it’s worth the effort

There are practical benefits to having a planogram:

  • You can maximize available sales space
  • Any staff member can easily restock displays
  • You have a handy reference to recreate seasonal displays that were especially hot sellers

But the real plus is your planogram’s strategic value. It’s not just about organizing your store so people can find products, it’s about placing products where they will attract the most attention and tempt customers to buy more. To do that, you have to know your customer, and know something about buying behavior.

Best practices: How to make planogram.

Before you can create a planogram, you first need to determine your store’s basic “framework.” Your layout has to be inviting and easy to navigate, and your fixtures must distinctly brand your store. That sets the stage for a psychologically satisfying shopping experience. Custom fixtures let you have it all – practicality and aesthetics that fit your space and style like a glove.

Once you have that foundation, you’re ready to put the right stuff in the right place, where it will pique customer interest, encourage interaction, and inspire sales. Creating a planogram ensures you’re taking advantage of proven visual merchandising techniques:

  • Position new and seasonal products at the front, to the right as customers enter. This is your “power space.”
  • Place best-sellers and featured items at eye level (or on lowest shelves to appeal to kids).
  • Locate necessities in the rear, so shoppers have to pass by more exciting “optional” merchandise to get to them.
  • Create “speed bumps” that catch the eye and cause shoppers to pause for a closer look. Multiple facings of a single product, especially if it’s boldly colored, can produce this visual effect.
  • Design a planogram for your cash wrap, too. It’s not only a work space, it’s your store’s prime (and final) impulse purchase zone. You don’t want to waste that opportunity!

While a planogram ensures consistent product placement, it should be flexible, too. Re-evaluate it frequently, tracking what sells and what does not so you can make adjustments. You don’t want to waste prime territory on weak-performing merchandise. On the other hand, you do want to regularly freshen displays with new merchandise.

Become a student of retail psychology

Our free Retail Psychology e-book will help you master the art of product arrangement, to entice customers into and around your store, discovering must-have merchandise as they go.

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