The Facts About Grocery Display Planogram
Products on grocery stores are displayed on shelves according to the product's categories. There are different product categories in grocery stores like wet goods, dry goods, kitchen products, beverages, fancy foods, breakfast section, and others. Each category had a particular pattern know as display planogram.
Example of grocery planograms:
Here are some reasons why grocery products are following display planograms.
1. It is easier for the consumers to locate products. Display planograms are patterns design to help customers find products more easily by placing the most search products on the most visible locations on grocery shelves.
Note: Grocery shelves are also known as “grocery gondolas”
2. Display planograms minimize or even eliminate conflicts between brands of similar products. Product manufacturers or suppliers often want to have a bigger space and better position/location for their products on grocery shelves. With display planograms, all products are arranged in accordance to their categories and each product is given fair spaces and locations.
3. With display planograms, grocery stores can easily identify which products are “fast-moving” and “slow-moving”. Since products are arrange in pattern, store owners can easily identify which part (or which products) of the shelves are decreasing fast and needs to be refilled and which part takes too long before refilling it.
Note: The best place to display products is on the “eye-level” position. All manufacturers are trying to placed their products in “eye-level position” since in can generate more sales.
4. Easy to locate expiring products. Products that are damaged and expired are called Bad Order of B.O. With the implementation of display planograms, grocery stores can easily locate products that are nearing its expirations. Since products are arrange by groups, once a merchandiser see a product which is about to expire, merchandisers can easily identify all these same products since they are placed in the same area in the shelves.
Note: B.O. or Bad orders are products that are damaged and expired. It should not be displayed on shelves anymore and should be return to supplier or manufacturer.
5. Easy to return products. Customers often misplaced products within the selling areas of the grocery stores. With display planograms it will be easier to return the products back to their allotted locations.
Note: Misplacing a product often cause that product to expire inside the selling area. Products should never reach its expiration date within the selling area. Customers might buy this expired product and it will be bad for the customer and can damage the reputation of the store.
Display Planograms are often designed by the grocery stores personnel. But then, manufacturers are still trying to implement their own display planograms for their products, and this is where the conflict starts. Some manufacturers are paying (with money, discounts or freebies) just to implement their own display planograms rather than the store’s own planogram. Now that money is involved, some grocery stores are having their display planograms patterned to how much a supplier or manufacturer can pay. Some are even selling their display shelves space with fix amount (example: $1 per “facing” per month)
Note: “facing” is a row of similar products (or sku) facing forward. One “facing” is equivalent to one row of similar product whatever the size of the product face. There are times that manufacturers or suppliers wants two or more facing for one sku or similar product, so they need to pay for that extra “facing”.
Some grocery stores have a good solution to this conflict. And this solution is called display planograms “based on sales contributions”. In these planograms, products are given spaces and locations based on how much each product contributed to the total sale of such product category. The more contributions a product produce, the bigger and better location it gets on the display planogram.
Product category is Coffee and there are 4 brands that are competing for a display namely Nescafe, Great Taste, Kopiko, and Starbucks Coffee. Suppose Nescafe contributed 60% of the total sales for Coffee and 20% for Great Taste, 10% for Kopiko and 10% Starbucks coffee. With these sales contributions Nescafe will have the 60% of the total display for coffee and 20% for Great Taste, 10% for Kopiko and 10% for Starbucks.
Finally, customer may not give attentions to the arrangements of products in grocery stores. But for the manufacturers and grocery owners, a good product display means increase on sales. But then huge amount of money is involved just to place a product on a desired location.