Apparel brands and retailers are more focused on presentation and use pictorial planograms that illustrate the look and brand identity for each product. Often, a consumer goods manufacturer releases a planogram with each new product to show how the product can relate to existing products.įast-moving consumer goods organizations and supermarkets mostly use text and box-based planograms to optimize shelf space, inventory turns and profit margins. This is useful when a vendor wants retail displays in multiple store locations to have the same look and feel. Manufacturers often send planograms to stores ahead of new product shipments. For example, given limited shelf space, a vendor may prefer to provide a wide assortment of products, or may limit the assortment but increase the facings of each product to avoid stock-outs. The rules and theories for creating planograms are set under the terms of merchandising. A planogram defines the location and quantity of products to be placed on display. Planograms are predominantly used in retail businesses.
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