Planograms are an advertising tool usually used in retail stores. The Journal of the Operational Research Society defines it as "a diagram of fixtures and products that illustrates how and where products should be displayed, usually on a store shelf in order to increase customer purchases." Planograms are created using special software. The quality of the software changes the look of the actual planogram.
The purpose of a planogram is to create the best-suited and most-profitable location for a product. It wants to present the product's brand identity to potential customers. This advertising tool also effectively uses the space given for the particular product. The planogram designer takes the look, feel and position compared to competing products into account when creating a planogram. This makes for a more efficient planogram, which most likely results in more profits.
Planograms are usually developed and distributed to store managers before the product is available to the public. This gives the store distributing the product time to generate effective displays that the planogram strategy entails. Updated products replacing outdated products may use the same planogram or a slightly altered one. Car dealerships usually do this when new annual vehicles become available to the public.
There are various types of planogramming software available to buy. Technology is starting to have the capability to accurately illustrate what a specific area will look like for the product. Precisely representing what a physical store looks like will make a planogram more useful for management to make decisions. Because planogramming software is expensive, managers may decide to alter the quality of the planogram to cut costs. Some planograms are a photo of the section being used to present the product. The photo will have notes describing the specifics of each layout.
The size complexity of a planogram usually depends on the store size and the need of the person using the planogram. Some planograms distinguish the specific sport for each item, not just the layout. For example, the exact number of JIF peanut butter containers located in a G Supermarket at one time.
The way a planogram looks can drastically affect a company. Having a high quality, structured planogram will force a company to be more organized. Allowing customers to easily find products will lead to more customer spending. It will also increase customer service by allowing employees to easily remember where each item in the store is.