Primary targets which should be achieved with planograms:
a) creation of an optimal visual product placement
b) creation of an optimal commercial product placement
In short, the primary targets can be summarised with a turnover and profit increase.
The visual product placement is supported from different theories:
a) horizontal product placement: To increase the concentration of a customer for a certain article, a multiple horizontal placement side by side of one product is applied. Different researches found that a minimum placement range between 15–30 cm of one single product is necessary to achieve an increase in customer advertence (depending on the customer distance from the unit).
b) vertical product placement: A different stream with its follower is the vertical product placement. Here one product is placed on more than one shelf level to achieve 15–30 cm placement space.
c) block placement: products which have something in common are placed in a block (brands). This can be done side by side, on top of each other, centred, magnetised.
Next to the visual placement the commercial placement is the other important pillar of a planogram. Here the question has to be answered which products should be placed. Two factors for the decision-making process can be differentiated.
a) Market share placement - means the placement of turnover bringers. Different market research institutes like Nielsen, IMS are collecting turnover data of all kind of products and calculate from this data the market share of a certain product in its market segment. With the help of this data products can be selected which should appear in a shelving unit in a “A” location. A simple calculation of turnover data from a single store is better than nothing for this purpose however it would be better to use data from a group of stores.
b) Margin placement - is influenced from the margin a product brings. The higher the margin is of a product the better the location should be where it is placed.
Solus have a wide variety of Planograms which we feel may influence the customer to choose the right products for them. Depending on the shop and customer we would vary our Planogram to suit the customers needs, but always with our very best prices and products displaying on our stands.