What is a Planogram?

A planogram is a schematic diagram used to depict the positioning of retail products on shelves, aisles, and counters to understand and increase customer purchases. A tool for visual merchandising, planograms are also referred to as schematics, POGs, or simply plans or blueprints.

Planograms are typically very detailed - with graphics that visualize how, where, and in what numbers should products be displayed. Retailers use planograms to optimize product placement, and thereby, customer journeys within physical stores. Planograms are deemed espeically important for larger stores that cover large areas - supermarkets, home centers, clothing retailers, and electronics stores.

There are six different categories of planograms. They are as follows:

1. Horizontal product placement
2. Vertical product placement
3. Block product placement
4. Product placement based on commercial status
5. Product placement based on market share
6. Product placement based on margin

There are several benefits to planograms, and in how they impact retail management. The primary motive is the maximization of sales, but some other notable advantages include - maximization of space, strategic product placement, optimized customer journeys, and increased customer engagement.

Planograms is a crucial step in the cycle of collecting reliable customer intelligence, and can help retailers better understand customer pain points and address them adequately.

The video below takes a look into the monitoring of customer engagement using Isarsoft Perception. The scene is set in a grocery store, and highlights how product placements affects the purchase decision.