Advantages of planogramming
Working with planograms has already lead to many successes.
In short it always comes down to the fact that by using planograms and the accompanying analyses the financial performance of a category improves.
Thanks to the planogram it was possible to place more products on the shelves, there was less Out-of-Stock, consumer demand is addressed better, and/or
things are being done more professionally than the competition.
The most important advantages for retailers and wholesalers:
- Reduction of out-of-stocks (more revenue and better customer satisfaction)
- Better balance between consumer demand and shelf inventory (lower costs)
- A shelf layout that stimulates purchasing behavior (more revenue)
- A consistent image and marketing message (better customer satisfaction and higher loyalty)
- Improved usage of scarse retail space (higher ROI)
- More efficient use of staff during shelf-resets (lower costs and less disruption for the consumers)
For manufacturers and suppliers the most important advantages are:
- Reduction of out-of-stocks (more revenue and better customer satisfaction)
- A shelf layout that stimulates purchasing behavior (more revenue)
- More influence on the assortment and space allocation (better ROI on marketing activities)
- Quick and simple "reality-check" when developing new product packaging (lower costs and less risk for costly mistakes)
- Increased success with product-introductions (lower marketing costs, higher distribution levels reached faster)
- Improved relationship with trading partners (better ROI and less focus on relative margins)
- Better insights in the performance of the competition (strategic advantage)
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