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How can you maximize sales and minimize waste in your planogram?

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A planogram is a visual representation of how products are arranged on a shelf or display in a retail store. It helps you optimize the use of space, increase customer satisfaction, and boost sales. However, it also comes with some challenges, such as managing inventory, reducing waste, and adapting to changing consumer preferences. In this article, you will learn some tips on how to maximize sales and minimize waste in your planogram.

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1 Know your customers

Before you design your planogram, you need to understand who your target customers are, what they want, and how they shop. You can use various sources of data, such as sales reports, customer feedback, market research, and loyalty programs, to gain insights into their behavior, preferences, and needs. Based on this information, you can segment your customers into different groups and tailor your planogram accordingly. For example, you can place the most popular or profitable items at eye level, group complementary or cross-selling products together, or create themed or seasonal displays.

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Prasanta Panigrahi

Head of Customer Relationship Management
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You know its "Planogram"- mostly it is related to retail businesses. I don't have much practical knowledge but what I observed from market environments; A planogram is a visual representation of how products should be arranged on retail shelves to optimize sales and improve the overall shopping experience. By carefully planning and optimizing your planogram, you can create a retail environment that maximizes sales while minimizing waste. Regular analysis, responsiveness to market trends, and a focus on customer needs are essential elements of a successful planogram strategy.

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2 Balance variety and efficiency

One of the main goals of a planogram is to offer a variety of products that appeal to different customers and occasions. However, too much variety can also create problems, such as overstocking, out-of-stocks, confusion, and clutter. Therefore, you need to balance variety and efficiency in your planogram by selecting the right assortment, quantity, and size of products. You can use tools such as category management, demand forecasting, and inventory management to help you make data-driven decisions and optimize your product mix. You can also apply the Pareto principle, which states that 80% of your sales come from 20% of your products, and focus on the best-selling items.

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3 Test and measure

A planogram is not a static document that you can set and forget. It is a dynamic and flexible tool that you need to test and measure regularly to evaluate its performance and effectiveness. You can use various metrics, such as sales volume, turnover rate, gross margin, shrinkage, customer satisfaction, and conversion rate, to assess how well your planogram is meeting your objectives and expectations. You can also use methods such as A/B testing, customer surveys, and feedback loops to collect qualitative and quantitative data and identify areas of improvement. Based on the results, you can make adjustments and refinements to your planogram to keep it relevant and responsive.

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Du?an Mudri?

Head of Wholesale Trading department at Mercator-S d.o.o.
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Moreover, continual planogram revision is a must. Seasonal trends, new product launches, TM activities and micro location adjustments highlight the necessity to position planograms as an action tool to maximise sales and profit throughout the year. Revisions should be regular and based on sales data, market trends and profitability strategy. What customers see on the shelves should be non-confusing, differentiated and with perceived value added.

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4 Communicate and train

A planogram is only as good as its execution. If your staff does not follow the planogram or understand its benefits, you will not be able to maximize sales and minimize waste in your planogram. Therefore, you need to communicate and train your staff on how to implement and maintain the planogram correctly and consistently. You can use various channels, such as manuals, posters, videos, and apps, to provide clear and detailed instructions and guidelines on how to set up, stock, rotate, and replenish the products according to the planogram. You can also use incentives, recognition, and feedback to motivate and reward your staff for following the planogram and achieving the desired outcomes.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you maximize sales and minimize waste in your planogram?

1

2

3

4

5

1 Know your customers

2 Balance variety and efficiency

3 Test and measure

4 Communicate and train

5 Here’s what else to consider

Merchandising

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How can you maximize sales and minimize waste in your planogram?

1

2

3

4

5

1 Know your customers

2 Balance variety and efficiency

3 Test and measure

4 Communicate and train

5 Here’s what else to consider

Merchandising

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