As a person in the retail sector you should be aware of planograms.
If you are not, then planograms are visual charts or representations that denote the position where the product should be placed on the shelf in order to achieve maximum sales. With a planogram created according to strategies which help in increasing sales, customers can be visually persuaded to buy products. Also, the in-store staff will be clear about what product should be placed where according to the plan by the managers.
Even if there are several merits to a planogram, if its implementation is not properly managed then it will lead to several problems.
- When planogram is not modified according to trends and only simply reused then it may go obsolete and may not give the expected result.
- If the planogram is complex and there is no clear representation of what product is to be placed were then the store employees may find it confusing and may mess-up the whole arrangement.
- A compliance check is something that should be done on a regular basis. If it is not done, then the planogram implementation expected may not properly happen.
Is planogram compliance important?
Planogram compliance include practices like periodically updating the planogram according to the changing data related to the market trends. Compliance also includes a proper arrangement of the shelf space according to the planogram preferred. Even though planograms are provided, sometimes shelf arrangement may not be according to that, this may happen due to various factors. Misplaced or product may not be available in the store. Some reasons to planogram noncompliance they are:
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A difference between corporate and store data
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Lack of partner collaboration
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Workforce issues lead to shelf-set errors
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Store maintenance challenges
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Unavoidable restocking errors
Just check the following data.
The chart shows the rate of planogram compliance in retail stores. Even though 57.4% is measuring planogram compliance 42.6% still required to be practicing planogram compliance.
If planogram compliance is not done properly then the customers may not see the shelf space as designed by planograms, this may lead to a decrease in sales. Sales may drop due to change in the proposed arrangement of shelf space, difficulty in finding products or unavailability of the product in the outlet.
Then who all are responsible for planogram compliance?
If a product-based company designed a planogram and is distributed to the retail outlet to strategize the visual merchandising of their product, then the persons responsible may be the field monitoring staff who is directed to regularly visit the retail outlets and the personals who are appointed to monitor the tickets raised and do needful action. The process will be like:
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Field personal monitor the shelf space and any deviation are reported.
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Deviations from the planogram are reported to the concerned manager.
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The managers on receiving tickets received showing deviation should respond by suggesting possible counteractions that should be taken.
In the case of a retailer, the planogram is created by himself. Any deviation or noncompliance may be caused by various reasons. An authorized person can be appointed to check the compliances and report problems at various locations of retail outlets and at various outlets. Once the noncompliance is spotted, they should be solved accordingly.
Planogram compliance cost
Planogram compliance is necessary for the proper execution of planogram and is unavoidable. The next concern is how much will the compliance feature cost. For the cost-effective implementation of planogram, the cost of implementation of compliance should be less.
Nexgen POG is a cost-effective planogram software with compliance feature within it. It is easy to use and comes with unlimited licensing. Nexgen POG is cloud-based multidevice compactable software. Web-based planogram sharing and bulk uploading of image library are some features.
The compliance feature of Nexgen POG helps to raise incompliance tickets with the shelf number and picture of the current arrangement of the shelf to understand the problem better. Concerned personal can access the ticket and resolve the issue. There are no extra charges for the compliance feature which make Nexgen POG attractive.
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