In retail, the shelf is where the product meets the customer. ServiceChannel research shows that 64% of customers leave a store because of clutter on the shelves. This means that chaos on the shelf is a direct path to lost sales. To manage the display, retailers and distributors use planograms - detailed schemes of product placement.
Effective use of planograms can increase sales by 20-30%, optimize inventory and increase customer satisfaction.
Effective use of planograms can increase sales by 20-30%, optimize inventory and increase customer satisfaction.
"A planogram is not just a tool for visual order, but a strategic solution. It allows the distributor to compete on the shelf, increasing sales due to the correct placement of key products." - Nikolay Doroshchuk, an expert with 35 years of experience in distribution, a member of the European Distributors Association.
What is a planogram?
A planogram is a scheme that determines how and where a product should be placed on the shelf. It takes into account several factors at once: visual appeal, convenience for customers, commercial benefits and strategic goals of the brand.
Examples of situations where a planogram is important:
Examples of situations where a planogram is important:
- In a supermarket, promotional items are placed at eye level to attract attention.
- In pharmacies, medications with similar effects are grouped into categories to simplify the choice.
- In electronics stores, accessories such as cables or cases are placed next to the main devices.
"A brand that does not pay attention to planograms loses up to 20% of its sales on the shelf. This is due to the fact that the buyer does not notice the product if it is located in the wrong place." - John Miller, retail strategy consultant, PwC research.
Why do distributors need planograms?
Distributors working with traditional retail especially benefit from using planograms. They help effectively compete for the buyer's attention on the shelf and solve several problems at once:
- 1.Increase sales.
- 2.Optimize space.
- 3.Reduce human errors.
- 4.Inventory management.
"A correct planogram allows not only to increase revenue, but also to reduce costs by optimizing inventory management. This is especially important for traditional retail, where control is more complex than in chain stores." — Vladimir Tsoy, Director of Logistics at Green Line Trading (Carlsberg distributor in Uzbekistan).
Mistakes in the absence of a planogram
Without a clear scheme, the shelf turns into chaos, which reduces sales efficiency. Problems that arise:
Real consequences:
- High-margin products are lost among secondary ones.
- Buyers spend more time searching for what they need.
- Some products are missing from the shelf, others are left lying around, creating an imbalance in stock.
Real consequences:
- Decrease in sales by 10-20%.
- Deterioration of the brand image.
- Decrease in customer loyalty.
"A clearly structured shelf is a language of communication with the buyer. When this language is missing, the client does not understand what you are offering and simply leaves." — Azim Zaynitdinov, trade marketing expert, Green White Solutions.
Three golden rules for a successful planogram
1. Placement at eye level.
Products that are easy to see and take attract 25% more attention from customers.
2. Related products.
Placement of companion products increases the number of purchases by 50%. For example, pasta and sauces, shampoos and conditioners.
3. Regular audit.
Companies that conduct weekly checks of the display increase sales stability by 15%.
Products that are easy to see and take attract 25% more attention from customers.
2. Related products.
Placement of companion products increases the number of purchases by 50%. For example, pasta and sauces, shampoos and conditioners.
3. Regular audit.
Companies that conduct weekly checks of the display increase sales stability by 15%.
"Auditing planograms helps keep everything under control. Regular checks allow you to quickly identify errors and avoid problems with product turnover." - Nikolay Doroshchuk.
How does automation solve the problem of chaos on the shelf?
Today, working with planograms is becoming easier thanks to automation. Systems like Smartup allow you to create, adjust and control planograms in electronic format.
Main functions of Smartup:
Effect of automation:
Main functions of Smartup:
- Quick creation of planograms: creating a diagram takes 3-4 times less time.
- Control of standards: all points receive uniform rules for display.
- Analysis of the current situation: a photo of the shelf is loaded into the system, which allows for instant detection of deviations.
Effect of automation:
- Sales growth by 20–30%.
- Time savings by 50%.
- Cost reduction by 15%.
"Automation systems such as Smartup allow for routine work to be taken off the shoulders of field employees. This improves discipline and helps focus on strategic tasks." — Abdukakhhor Tashmukhamedov, founder of a SaaS distribution solution.
The environmental benefits of automation
Switching to digital planograms not only saves money, but also reduces the burden on nature. If you stop printing 100 sets of planograms of 5 pages per month, this will save:
Example: According to WWF, every 500 pages of paper is equivalent to cutting down 1 tree. Implementing digital planograms is a contribution to preserving the environment and reducing the carbon footprint.
Planograms are not just a scheme for displaying goods, but a strategic tool that can significantly increase sales, optimize inventory management and create a comfortable experience for customers interacting with the brand. It is especially important for distributors working with traditional retail to implement planograms in order not to lose their positions in the competitive market.
Automating this process through systems such as Smartup allows not only to simplify the work, but also to minimize costs, increase control and standardize the approach to shelf space management. These measures ensure sustainable sales growth, increased customer loyalty and a stronger brand reputation.
- 500 pages of paper,
- logistics costs,
- printing costs.
Example: According to WWF, every 500 pages of paper is equivalent to cutting down 1 tree. Implementing digital planograms is a contribution to preserving the environment and reducing the carbon footprint.
Planograms are not just a scheme for displaying goods, but a strategic tool that can significantly increase sales, optimize inventory management and create a comfortable experience for customers interacting with the brand. It is especially important for distributors working with traditional retail to implement planograms in order not to lose their positions in the competitive market.
Automating this process through systems such as Smartup allows not only to simplify the work, but also to minimize costs, increase control and standardize the approach to shelf space management. These measures ensure sustainable sales growth, increased customer loyalty and a stronger brand reputation.
