Sales & Distribution
A planogram is a visual diagram or drawing that shows where and how retail products should be placed on shelves or displays within a store to maximize sales and optimize space.
Full Definition
A planogram is essentially a blueprint for product placement. It dictates the exact location, number of facings, and vertical/horizontal positioning of each SKU on a retail shelf. For CPG brands, these diagrams are crucial for ensuring their products are displayed effectively, adhering to retailer guidelines, and appealing to shoppers. They are developed using sales data, shopper behavior insights, and category management strategies to optimize product visibility and sales performance.
Why It Matters for CPG Brands
For CPG brand operators, effective planogram execution directly impacts sales volume and market share. A well-placed product is more likely to be seen and purchased, leading to increased revenue and stronger relationships with retailers. It helps ensure your products get the optimal shelf space they deserve.
In CPG Operations
In the CPG world, a beverage brand might work with a major grocery chain to develop a planogram for the soda aisle. This planogram would specify exactly how many rows and facings their new flavored sparkling water should have, its position relative to competing brands, and its placement on eye-level shelves to attract impulse buys.
Example
A granola bar brand with 8 SKUs, including gluten-free and high-protein options, works with a supermarket chain to implement a new planogram. The planogram dictates that their best-selling 'Berry Blast' flavor gets two eye-level facings, while newer 'Chai Spice' is placed slightly lower with one facing, next to other healthy snack bars, to encourage trial and maximize category sales.
Manage Planogram with Guidance
Guidance is the operations platform built for CPG brands. Replace your spreadsheets with one connected system for purchasing, production, inventory, COGS, and compliance.
Apply as a Design Partner
Frequently Asked Questions
How do planograms affect my product's visibility in stores?
Planograms directly impact visibility by dictating precise product placement. Products positioned at eye-level, with more facings, or strategically next to complementary items are far more likely to be seen by shoppers and stand out from competitors.
Can I influence the planogram my products are on?
Yes, CPG brands can influence planograms through strong sales performance, providing compelling shopper data, and building solid relationships with retail buyers and category managers. Presenting data on your product's velocity, profit margins, and consumer demographics can help advocate for better placement.
What data do retailers use to create planograms?
Retailers use a variety of data, including sales history (velocity by SKU), profit margins, inventory levels, shopper traffic patterns, demographic data, and category trends. They also consider product size, packaging, and brand adjacency to optimize the overall shelf presentation and maximize sales for the entire category.