In addition, the highest-priority factor in creating a planogram is product placement, or when CPG manufacturers pay for ideal product locations within a store. Loyal customers want to know exactly where to find their favorite products. This results in a poor experience and may prompt them to leave the store without making a purchase. Any deviation from the planogram can make it difficult for consumers to find the items they need. The items may be arranged based on visual appeal, popularity, ongoing promotions and so on.
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The drivers for a delta (i.e., difference) between a planogram and realogram are countless, but some examples include knowledge gaps around new "resets," uncommunicated changes made at headquarters, space constraints due to limited shelf real estate, clienteling activities and others.Įnsuring planograms and realograms are aligned is critical otherwise, the consequences can be far more severe than just a sloppy-looking display.įor one, planograms are set up to maximize sales. By checking the realogram against the planogram, retailers can verify that their stores have properly executed the planogram and are in compliance, with all items displayed as expected. Essentially, it is how the shelf actually looks and "behaves" in terms of product assortment and layout. In contrast, a realogram is a realistic depiction of a specific shelf at a given store and a given time. Put simply, a planogram is what a shelf should look like, per corporate's objectives. Additionally, terms and conditions/agreements with CPG vendors, specific clienteling needs or even the retailer’s culture can influence a planogram. A retailer's merchandising or marketing team creates the planogram, factoring in aesthetics, product placement and flows, merchandising principles, sales performance, number of facings and eyesight level.
A planogram is a visual representation of the final, exact product placement and layout of a shelf.
With strategy being driven at the corporate level, it's common practice for retailers to use planograms to execute their in-store plans.
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RealogramsĬountless factors go into deciding how to set up a shelf. To avoid the missed sales, out-of-stocks and customer dissatisfaction caused by realogram (the actual state of the shelf)-to-planogram misalignment, retailers must invest in advanced technologies that can ensure compliance and proper execution.ĭifferentiating Planograms Vs. Some disconnects are understandable because of differences in store space, locations and layouts. There is always a risk of a disconnect between different intermediaries in the merchandising team, for both e-commerce and brick-and-mortar stores, which can impact communication and cause misexecution. Planogram compliance should never be assumed.
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