Explanation should include the following concepts:
- A planogram is a computer-developed diagram that directs retailers how and where a product or products should be displayed on the shelf, sales floor, or e-commerce platform.
- The ability to maximize a product’s potential directly relates to where products within certain categories are displayed within individual stores or e-commerce platforms.
- Other products that are used in conjunction with a product are also noted on a planogram.
- A planogram can be customized by individual stores and e-commerce platforms to address their customer base.
Process/Skill Questions:
- What are the elements of an effective planogram?
- What determines when a planogram needs to be changed?
- What tools would a company use to help customize a planogram for individual stores?
- How can sales forecasting be used to develop planograms?
- What training should a sales team be provided to understand and use a planogram?
- What is meant by facing and allocation of space? What part do they play in successful sales through use of a planogram?
- Who is responsible for the implementation and management of the planogram and keeping up with updates and changes?