Planogramming Strategies to Utilize Retail Space Efficiently
Planogramming is a retail tactic employed to maximize product visibility on shelves in an effort to make them more accessible, enhance customer satisfaction, and boost sales. Following systematic planogramming strategies enables retailers and FMCG companies to build a more organized and efficient shopping environment.
Important Planogramming Techniques
Vertical Merchandising
Products are stocked in vertical columns such that customers can see easily and find similar products at different price points.
For instance, a supermarket stocks several brands of shampoo in vertical blocks such that premium, mid-range, and economy variants are all at eye level.
Horizontal Merchandising
Items are stacked in horizontal rows so that customers will scan an entire row before making a selection.
Example: A grocery store sets various breakfast cereals side by side in a horizontal position for comparison of brands.
Block Merchandising
Comparable products of the same brand are bundled together to make a stronger brand presence.
Example: In a hypermarket, all Nestlé dairy products (milk, yogurt, cheese) are showcased in a single section to make a stronger brand presence.
Eye-Level Placement Strategy
High-margin and top-selling products are displayed at eye level to maximize visibility and drive sales.
Example: FMCG brands like Coca-Cola and Lays negotiate for eye-level shelves to capture customer attention at once.
Cross-Merchandising
Complementary products are piled together to create impulse buying.
Example: Pasta sauces are piled with pasta packs, and customers are persuaded to buy both together.
Shelf Depth & Facing Strategy
More facings (shelf space) are allocated to products with greater demand so that they are always available and within easy reach.
Example: A supermarket allocates more shelf space to best-selling biscuits such as Britannia's Good Day to avoid regular stockouts.
Seasonal & Promotional Display Placement
Temporary fixtures and end caps are utilized to promote new products, promotions, or seasonal offerings.
Example: Mondelez installs special chocolate fixtures during Diwali and Christmas to draw festive shoppers.
Advantages of Good Planogramming
- Increases Sales: Places best-sellers and high-margin items in optimal locations.
- Improves Customer Experience: Provides an easy-to-use shopping experience by keeping products accessible.
- Maximizes Space Use: Makes every inch of shelf space count.
- Enhances Stock Management: Eliminates stockouts and overstocking by allocating space according to demand.
With the help of these planogramming strategies, brands are able to place products in strategic locations to enhance visual attractiveness, increase customer interaction, and optimize sales performance.
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FAQs
Q1. Which planogramming methods organize retail space?
Key planogramming methods are vertical and horizontal placement, block merchandising, eye-level positioning of merchandise drivers, cross-merchandising, and strategic facings to optimize display efficiency and product exposure.
Q2. How does planogramming boosts customer experience and sales?
Planogramming helps positionaing the best sellers at eye level and use the optimal shelf space strategically to enhance the customer experience and drive sales.
Q3. Why is flexibility valuable in planogramming?
Flexible planogramming enables retailers to change layouts for seasonal promotions, new product introductions, or changing shopper habits—keeping displays fresh, relevant, and attuned to trends.
Q4. How data and analytics define planogramming strategies?
Strategic planogramming is followed by data-driven decisions, calculated through sales data, inventory, and shopper engagements on various products and product placements.