The Strategic Power of Planograms in Merchandising
Effective visual merchandising requires strategic organization. Tools like planograms as well as a thoughtful planogram strategy can help.
Merchandising planograms (POGs) illustrate how products should be arranged on a display in a retail space. They act as product blueprints for retail locations, indicating the most desirable set-up for store displays to optimize space, increase sales, and elevate brand perception.
In many ways, they serve as the point where marketing strategy and consumer psychology meet. Learn more below.
Visual Appeal
Planograms often utilize visually pleasing arrangements, such as color coordination, symmetry, and balance, which can evoke positive emotions.
They are designed with a visual hierarchy in mind, placing more popular items at eye level. This tactic makes use of the psychological concept of visual prominence, where items that are more visible are more likely to be noticed and purchased.
Merchandising planograms also aid in the efficiency of POP displays, where presentation is key. Many brands choose to remove a sample product from its packaging for closer inspection.
Having a clear visual of the product being sold is paramount to creating a connection between it and the customer. This out-of-box display is particularly important for products that are sealed in packaging through which the merchandise itself is not visible.
Product Association
Another way a well-designed planogram strategy taps into psychology is through product association. Grouping products logically can make the shopping process more intuitive for consumers, and planograms are there to instruct which products should be paired with what as well as where and how they should be displayed. This ensures high-demand products are prominently featured and that complementary items are strategically placed together.
Grouping complementary or related products together allows for easier comparison, expediting the decision-making processes for shoppers.
By strategically placing similar products together, planograms encourage cross-selling and upselling. This leverages the psychological principle of association, where the presence of one item triggers thoughts of related items.
Impulse Buying
Product placement on planograms can influence customers’ perceptions of value.
For example, grouping similar items together and offering bulk discounts can create the perception of a good deal, even if the individual prices remain the same. This leverages the psychology of pricing and comparison, encouraging customers to perceive the products as more valuable.
Showcasing seasonal products or trendy items prominently allows retailers to capitalize on the psychology of scarcity and novelty, prompting customers to purchase these items before they’re no longer available.
Consistency
Consistent planogram layouts help to build brand recognition, trust, and feelings of loyalty among customers. This, in turn, creates a sense of familiarity for repeat customers and makes it easier for them to navigate the store and find their preferred products.
This taps into the psychology of habit formation, as customers become accustomed to specific routes and product placement over time.
Understanding these foundational principles allows retailers and brands to develop merchandising planograms that effectively meet the needs of customers.
However, visual merchandising planograms also support merchandising teams, too, by providing an easy process for accurate restocking. In turn, the time-to-shelf for inventory is cut down.
When used correctly, planograms can drive sales, encourage longer dwell times in-store, increase the likelihood of repeat visits, and ultimately contribute to the success of long-term retail operation.
Navigation and Traffic Flow
In retail, POGs are crucial because they can enhance or facilitate customer navigation, ultimately contributing to an intuitive and easier shopping experience.
By strategically designing planograms, retailers can control the flow of customer traffic within the store, guiding customers along desired paths. The use of navigation makes it easier for customers to find what they’re looking for and sometimes what they don’t know they’re looking for.
Using navigation, stores can lead shoppers directly past in-store displays. Placing high-margin or promotional items on endcaps or attractive POP displays within the store can capture customers’ attention and entice them to explore specific, potentially leading to impulse purchases.
By integrating these visually appealing displays into the planogram design, retailers not only guide customer navigation but also create focal points that draw shoppers’ interest.
Leveraging the psychology of navigation for POP enables retailers to orchestrate a shopping experience that not only meets consumer needs but also strategically influences their behavior and purchase decisions.
Data-Informed POG Optimization
How do brands use sales data to refine their retail display planograms?
Sales metrics reveal which SKUs are driving revenue and which are lagging, and knowing this information informs how best to arrange products when making any seasonal tweaks. Brands can prioritize high-performing products in eye-level zones of the display and phase out underperformers.
Additionally, reviewing cross-selling data lets brands adjust product adjacencies. For example, if sneakers and special shoe cleaner frequently sell well together, they may be placed side-by-side to boost basket size.
Sales trends can also differ by location. Where a brand’s sunscreen line might sell best on a merchandising display in Florida, the company might opt to highlight their facial serums on an end cap in regions with a dryer, cooler climate.
In short, sales data can tell brands how best to optimize their visual merchandising display planogram.
Conclusion
Optimizing product placement and enhancing the overall shopping experience are paramount to meeting sale objectives, and this can be made possible with visual merchandising planograms. These meticulously crafted visual guides aren’t just about arranging goods, however.
By analyzing sales trends, retailers can adjust planograms to highlight popular items or reposition underperforming ones to improve their visibility and sales. Planograms often incorporate sales data analysis to understand which products are selling well and which ones may need better placement or promotion.
The use of planograms can wield a subtle influence over customer behavior and purchasing patterns, and the psychological principles that can influence customer behavior have a profound impact on the overall effectiveness of the product presentation.
Looking to elevate your in-store presence? Let’s design retail displays that perform across every location. Contact us.