Nexgen Marketing posted on October 18, 2023

Maintaining franchise brand consistency is one of the most important things to get right to maximize your profitability. Consistency throughout your brand helps attract new shoppers, with its unique product line, enticing displays, and store layout design.

Franchise businesses have long been a cornerstone of the global economy, offering entrepreneurs a proven business model and the opportunity to operate under a well-established brand. One of the key challenges faced by franchise businesses is maintaining brand consistency across multiple locations. This is where planograms come into play, helping franchisees ensure that their stores adhere to the franchisor's standards while also allowing for customization to cater to local tastes and preferences. In this blog, we will explore the concept of planograms, their significance in franchise operations, and how they help maintain brand consistency.

The Importance of Planograms in Franchise Businesses

Planogram ensures optimizing the layout, placement, and organization of products on store shelves, display racks, and even in-store promotional areas. The purpose of a planogram is to improve the customer's shopping experience, maximize sales, and maintain a consistent brand image. You can create planograms using shelf planning software that considers factors like product dimensions, inventory levels, and product relationships (e.g., complementary, or frequently purchased together). They are highly adaptable and can be customized to suit the specific needs and goals of a particular store or location while adhering to the broader brand standards set by the franchisor.

  • Consistency across locations: One of the primary challenges franchise businesses face is ensuring each location maintains a consistent brand identity. Planograms play a crucial role in achieving this consistency. By specifying the arrangement and placement of products, franchisees can ensure that the customer experience remains consistent across different stores. This consistency is vital for building trust and loyalty among customers who visit multiple franchise locations.
  • Maximizing sales and profitability: Effective planograms are designed to optimize the product layout for maximum sales. They consider factors like product popularity, seasonality, and the flow of customer traffic within the store. For instance, if a particular style of jeans or a specific brand of t-shirt is trending in one location, the planogram ensures these items are strategically placed at eye level and within easy reach. This not only increases the visibility of these high-demand products but also encourages customers to make impulse purchases.
  • Adapting to local preferences: While consistency is essential, it is also crucial for franchise businesses to be able to adapt to local market preferences. Planograms can be customized to reflect regional tastes and trends. For example, a fast-food franchise may offer unique menu items to cater to local culinary preferences while maintaining core brand offerings.
  • Efficient Inventory management: Planograms help with inventory management by specifying product placement and stocking levels. This reduces overstocking or understocking issues, ensuring that products are available when customers need them. For instance, during the summer months, you might need to increase the stock of ice creams and cold beverages. As winter approaches, hot beverages and warm snacks might take precedence. The planogram ensures that these transitions occur smoothly, preventing overstocking of off-season products and shortages of in-season items.
  • Staff training and onboarding: Planograms provide a visual reference for how products should be displayed, making it easier for employees to understand and implement brand standards. This is particularly helpful for maintaining consistency and ensuring a smooth customer experience.
  • Overview of Nexgen POG

    Nexgen POG is a robust and user-friendly cloud-based visual merchandising tool. It is designed for quick and efficient planogramming with minimal effort. Planogram in retail can be designed by easily dragging and dropping the products. The multi-device compatibility feature of POG allows you to obtain, share and edit planogram on any device, including your phone. It helps in designing store-specific planograms for increased product visibility and sales.

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