What Is a Planogram? Everything You Need to Know

Jul 27, 2020
6 minute read

Commercial rental spaces come at a high cost, and business owners are always looking to maximize the impact of their physical footprints. This is where the store layout and shelf facing come into play. Planograms, a kind of visual layout tool, help visually lay out products to encourage customers to buy several products in a single trip. 

Planograms come in varying degrees of complexity, and they serve as unique visual fingerprints of the businesses whose sales they help enhance.

What is a planogram? Planogram Definition.

A planogram is a visual merchandising tool that takes the shape of a visual diagram and represents a specific area of the store, like a floor layout, a display, or a shelf. The term is a combination of the words “plan” and “diagram.” The purpose of a planogram is to provide a visual plan of the location and quantity of products in a physical space. They are often used by physical store owners, restaurants, and digital business owners with physical footprints such as pop-ups. A planogram is one of the tools used in merchandising products.

What are the benefits of using a planogram?

Planograms can help to optimize product placement, increase and forecast sales. At shelf level, product placement matters because businesses only have 5-6 seconds of consumers’ attention before a purchase decision is made. Promotion at this level of in-store marketing is called Point of Sale (POS) marketing, and they help direct shoppers’ attention to products. Planograms also help create “paths” throughout the physical location that guide consumers past merchandised products you want to sell more of.

Other benefits of planograms include:

  • Maximized sales potential of existing floor space
  • Increased inventory visual appeal for customers
  • Improved line of sight on stock levels and reduction of out-of-stock products
  • Effective internal visual merchandising communication

As a result of effective product placement planning, businesses get to benefit from increased sales, while customers buy more of what they want or need with less effort.

If you are just starting with planograms, it’s best to start with a template and customize it for your needs and scale its application from there.

Applications of planograms in physical retail, restaurant, pop-up, and digital settings