Planograms: why brands need to master them too

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

Corentin Malissin
December 5, 2023 - 6 min reading

Drawing up a planogram in supermarkets is a crucial step for any brand seeking to optimize the presentation of its products in-store. That's why we're bringing you this article on the challenges of planograms for brands present in supermarkets.

We will explore a methodical process for achieving optimal results, enabling your brand to pursue its objectives: 

  • Increased sales ;
  • Increased visibility ;
  • Improved customer experience.

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

Planogram in retail: definition

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

The aim of the planogram is to optimize shelf layout in order to maximize sales. Indeed, since the surface area of a sales outlet is always limited, stores are constantly looking for ways to make their offer easier to grasp and increase customer purchases. Brands are just as concerned: competition leads them to constantly strive to boost their presence, but also their visibility. The planogram is a strategic reflection on how to optimize sales per linear meter.

Who makes the planogram?

In the supermarket sector, planograms are generally designed by the merchandising team at store level, then implemented by department managers in the stores, with a certain degree of flexibility.

These "virtual gondolas" standardize the presentation of products in all a chain's stores, based on merchandising choices whose effectiveness has been previously tested before regional or national deployment. 

The aim? To ensure that customers find a uniform layout for the range, regardless of the store in which they do their shopping.

These planograms are created using merchandising software, and are often based on product image databases. They are particularly useful for organizing and reorganizing store shelves. They can also be accompanied by instructions and notes for shelving staff.

But, as a brand, it's precisely this degree of flexibility that you want to avoid. When you negotiate centrally, you incur costs in order to secure one location rather than another. The planogram is there to enforce it. 

That's why brands also create planograms.

In fact, as a mass-market brand, you have the opportunity to suggest specific set-ups for the chains or outlets where your products are sold.

The planogram is a real sales tool, and can be a convincing argument in front of the department manager or buyer. For example, if you want to increase your sales volumes - and therefore those of your department - you can negotiate a new layout with the department manager, using the planogram as a support.

The planogram can also be used for layout and packaging tests. 

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

Why make a planogram?

There are several important reasons for a mass-market brand to produce a planogram:

Maximize the visibility of your products

Products that are well positioned on shelves attract the attention of your customers. By drawing up a planogram, you can ensure that your products are optimally positioned on the shelves to maximize their visibility and accessibility in the store.

Space optimization

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

Consistency of presentation

A planogram helps to ensure that your products are presented in a coherent and consistent way at all points of sale, whatever the brand. Although your distributors are not obliged to follow your recommendations, it helps reinforce your brand's image and consumer recognition of your products.

Better customer experience

A well thought-out planogram makes it easier for customers to find your products, improving 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 products on promotion or new products, increasing sales and customer attention on these specific items. It is therefore an important tool for convincing your distributor to follow your promotional plans. A good planogram can make your contact feel that you've fully understood his sales challenges, and that your vision is aligned with his objectives.

Working with the distributor

It can therefore be seen as a means of collaborating effectively with the retailer, within a trade marketing logic: visual representations of shelves enable you to align your brand's objectives with those of your retailer, finding win-win solutions to maximize sales.

Inventory management

An effective planogram helps you to manage inventory more accurately by forecasting replenishment requirements. Inventory management has a significant impact not only on your profitability, but also on that of your reseller. So it's an argument to add to your demonstration when you're trying to sell a new layout.

10 key steps to a good planogram

For your brand to achieve a good planogram in mass retail, it should follow these steps:

  1. Data analysis: start by collecting as much data as possible on sales, consumer preferences, seasons, market trends, and any other information relevant to defining your on-shelf implementation strategy. This data will serve as the basis for planogram planning.
  2. Clear objectives: define specific objectives for the planogram, such as increasing sales of your flagship product, promoting new products, or improving your brand's visibility.
  3. Product knowledge: make sure you have a good understanding of your product positioning as well as that of your competitors: the features and benefits of each product is crucial to deciding on their optimal placement on the shelves.
  4. Collaboration / negotiation with the distributor: work closely with your distributor. Point-of-sale visits should be an opportunity to discuss merchandising opportunities, his vision of location allocation (or store-level guidelines) and your retail partner's specific requirements.
  5. Creating a visual layout: take the time to compare planogram creation software to create a visual layout of products on shelves. Don't forget to include price labels, signage and any other elements that could increase the relevance of the layout and impact sales if the project is validated.
  6. Test and adjust: before implementing the planogram, we recommend testing it in a pilot store. This will enable you to identify any necessary adjustments before rolling out the plan on a larger scale. Bear in mind, however, that you may need to adapt your approach to different banners, or even store types, particularly for reasons of shelf size or assortment completeness.
  7. Staff training: make sure that the staff responsible for stocking the shelves are trained to follow the planogram. Very often, your sector managers do this themselves, but sometimes you'll need to take the time to train your floor managers too. 
  8. Monitoring and evaluation: once the planogram is in place, organize your sales rounds so that you can evaluate your sales performance and measure the impact of your strategy. Concentrate on your key performance indicators, paying particular attention to hold rates. Adjustments may be necessary 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 related objectives and strategies. Sales and marketing teams need to share common objectives and resources. 
  10. Regulatory compliance: a quick trip to the legal department can help you avoid unnecessary problems: validate that information complies with regulations and directives in the retail sector, such as standards for labeling, food safety and product presentation.

Technical notes and advice

Now that you know the theory behind planograms, you should be aware that their appearance varies from industry to industry, and from sign to sign. There are several reasons for this: 

  • Dimensions of sales area, aisle sizes, etc. ;
  • Shelf dimensions ;
  • Shelf materials (wood, metal, etc.) ;
  • Integration of point-of-sale displays on the shelves;
  • Referencing policy ;
  • Possibility of stacking products (or not);
  • Merchandising strategy, etc.

In addition, the way in which you wish to promote your brand may involve different graphic choices 

  • Some people, for example, choose to zoom in or zoom out on their layout: in this case, the entire department can be shown, but from a perspective in which your products are in the foreground. A conscientious department manager will prefer a frontal or 3D view, which will enable him or her to better appreciate the impact of your project on the layout of the sales area concerned;
  • You can also create a white background, coloring only your products. This visual representation respects proportions, and the eye naturally focuses on the subject; 
  • In contrast to the previous exercise, you can start with a realistic model, and even integrate competitors' products. Of course, this method requires considerable graphic design work. It requires a well-taken, front-facing photograph of the sales area;
  • As a general rule, don't get too creative when stylizing your planogram: fantasy doesn't sell, but realism does!
  • If your project involves theatrical or volume displays, make a 3D planogram: this will help the floor manager imagine the shopper's shopping experience. It's also the only way he'll be able to confirm that the floor space is sufficient for your planogram!

You now know all the basics about the planogram, a very useful tool for boosting sales in supermarkets. Now that it's in constant use in supermarkets, it's time for brands to get to grips with it too. We've gone over some useful definitions, the reasons for using it, and a set of steps and tips to optimize your planograms.

All that's left is to wish you happy sales!

Ready to conquer the field? 
Try Sidely free for 15 days. 
Request a demo
Ready to conquer the field? 
Request a demo