Planograms, also known as plano-grams, plan-o-grams, schematics and

POGs, are visual representations of a store's products or services. They are
considered a tool for visual merchandising. According to the Oxford Dictionary, "It is
a diagram or model that indicates the placement of retail products on shelves in
order to maximize sales."[1] Planograms therefore help dictate a retail store's layout.
The ultimate effectiveness of the planogram can be measured by sales volume.

Planograms are mostly used in retail. A planogram defines where and in what quantity products
are placed on a shelving unit. The rules and theories for the creation of a planogram are set under
the terms of merchandising. Manufacturers often send planograms to stores ahead of new
products. This is useful when a retailer wants multiple store displays to have the same look and
feel. Often, a consumer-packaged goods manufacturer will release a new suggested planogram
with their new product to show how the product relates to existing products.
Fast-moving consumer goods organizations and supermarkets largely use text- and box-based
planograms that optimize shelf space, inventory turns, and profit margins. Apparel brands and
retailers are more focused on presentation and use pictorial planograms that illustrate the look of
and also identify each product.

Visual product placement is supported by different theories, including horizontal, vertical, and
block placement. Horizontal product placement increases the concentration of a certain article
for customers. Research studies[citation needed] have found that a minimum placement range between
15 centimetres (5.9 in)–30 centimetres (12 in) of one single product is necessary to achieve an
increase in customer attention. This also depends on a customer's distance from the unit. Vertical
product placement puts products on more than one shelf level to achieve 15 centimetres (5.9 in)–
30 centimetres (12 in) of placement space. Similar products are placed in blocks – brands, for

Commercial placement is determined by both market share placement and margin placement.
Market share research companies like ACNielsen collect sales data for various products, and
from this data, calculate the market share of a certain product in its market segment. Margin
placement is determined by the profit margin of a specific item. Higher margin places a product
closer to the front of the store where it is most likely to attract attention.

Derivative targets
Derivative targets:

To communicate how to set the merchandise

For example. pricing. Recent advances in store virtualisation and collaboration now allow manufacturers. . and screen)  To facilitate communication of retailer's brand identity  To assist in the process of mapping a store The planogram originated with K-Mart. By removing the boundaries of distance this enables retailers and manufacturers to have a real choice between black box automated solutions and access to low cost labour pools to perform the same tasks. which. and product placements based on business rules derived from location. should increase efficiency. As the retail industry grows increasingly competitive. page.[citation needed] Planograms are created with the help of planograming software. while maintaining centralized control and supply chain efficiencies. 1. and fixture attributes to create localized assortments. The retail industry utilizes the automated software with the goal of ensuring accurate stocking. To ensure sufficient inventory levels on the shelf or display  To use space effectively (e. retailers are turning to planogram software to reflect each store’s unique customer desires and localized demand. according to the producers. Such planogramming solutions allow these companies to respond with location and language-specific messaging. Automation provides near real time results across hundreds of permutations. retailers and category management experts from across the globe to work in the same virtual store in real time. campaign.g. floor. There are advantages to both approaches. some software packages focused upon fast-moving consumer goods and hard goods sectors made some enhancements to transfer parts of shelving elements to single store measurements. while low cost labour pools provide the unique human touch that automation so far has failed to deliver. Retailers are automating the creation of store-specific planograms through use of corporate-level business rules and constraints describing best practice product placements.