To create optimal, data-driven planograms in the DotActiv software, there are certain data prerequisites to consider. This article will explore this in more detail.
This article will explore this in more detail which is applicable to all planners including planners who work with a database, without a database, data-driven planograms and generic planograms.
Applicable Products: DotActiv Lite, DotActiv Pro, DotActiv Enterprise
What Are The Image Requirements?
When collecting and processing images and dimensions to build shelf plans in the DotActiv software, there are certain requirements to adhere to. Each product can be displayed in different ways on the planogram, therefore, DotActiv uses three types of images per product, namely front, side(left) and top images. For example, soft pouches or bags of rice are merchandised on its top, whereas a cereal box can be merchandised on its front. At a minimum, at least the default merchandising orientation should be captured.
Images should be neatly cropped and the background should always be white. The software will automatically decrease the size of the images to be the optimal size for the software to function properly.
Tray images and dimensions can also be captured and used in the software. These images and dimensions should be captured separately from the individual products as the software will treat these as separate data forms.
Forward Share
Forward share is a calculation by the software which determines the two-dimensional area taken up by a product, which is calculated by multiplying the height by the width. This is shown as meters-squared. ‘Forward share’ assists in ensuring brands receive the space they deserve on the shelf. The more you open up to high sellers, the more it will sell due to the visibility you have given the product.
This measure is affected by the dimensions of the product, so if height and width are not correctly captured in the software, the calculation will be incorrect.
It is worth considering whether the client has any trade agreements where certain brands should get a set amount of space on the shelf. If this is the case, forward share can be used to ensure the correct space is given to these brands. There is also a forward share graph tool that can be used to give the buyer a visual representation of how the brands are spaced on the planogram.
If the client has a specific sustainability strategy regarding sustainable brands that must be followed in terms of category space, you can use forward share to ensure compliance with that strategy. There is also a forward share graph tool that gives the buyer a visual representation of how the brands are spaced on the planogram.
Space Allocations
Space on the planograms is allocated based on the client’s needs and objectives. There can be various roles, strategies and objectives to keep in mind when completing planograms, where roles include convenience and destination; objectives include growing a certain sub-category, brand or category by a target percentage or reducing inventory costs. There are also various strategies that planograms help to achieve such as transaction building or profit generating.
By considering the consumer decision tree, the planogram will be merchandised optimally as per how the consumer shops in that category. For example, when a customer is shopping for coffee, they might consider types first, such as beans or instant coffee, then brand, and then size.
The planogram must also adhere to the client’s merchandising principles. This can include packing the products from small to large, premium to economy, block or vertical merchandising, keeping KVI’s at eye level, etc.
It is also important to keep house brands in mind, which should ideally be given a little more space and should be allocated strategically on the planogram. For example, house brands can be merchandised next to the brand leader to create a sense of value in the minds of the customers.
Another important consideration is the allocation of space for sustainable brands. This allocation should align with the client’s objectives and merchandising principles. It is also crucial to strategically place the products/brands to ensure the most optimal layout is developed.
An exciting update on the software has also now been introduced to allow the software to create an automated planogram, the planogram automation function allows the user to plan the flows and space allocation per sub-category, segment or brand, depending on the criteria. The software auto-generates a planogram based on the selected criteria.
Steps to follow for the planogram automation:
- Open the software with a database
- Open the planogram you want to automate
- Navigate to the Toolbar and click on planogram automation
- The planogram automation setup will appear where the criteria need to be chosen.
For space planning the criteria are selected for the first 2 levels of the hierarchy. The first step is to select the packing criteria at the top of the pop-up.
- Click on the new row button on the right-hand side, once clicked a number 1 will appear on the top. Within the criteria selection, click the drop-down to select the criteria.
Otherwise, if only a few will be used, only tick the fields used. Reorder the sub-category names to reflect the flow which you would like them to follow on the planogram by dragging and dropping them. Then click add.
- To add another criteria click on Add criteria on the right-hand side. Another column will appear to add criteria as done previously. Add the second criteria field. In this case, we’re using a brand. Follow the same process.
- Make sure to tick ‘only use products on the shelf’ in the market/product/fact filter section to only make use of the SKUs that are ranged for that planogram. Check that all dimensions are correct as this influences packing space and the space products occupy on the shelf.
- Click preview to open the auto-generated planoguide. A planoview pop-up will appear with Sub-categories with allocated space.
- The cubes created can be adjusted to the space, select the cube and drag it to where you want. Move the cubes until the correct flow and space have been achieved.
- To create another cube, select the cube and press the control key.
- To delete a cube, select the relevant cube and press the delete key on the keyboard.
- To merge cubes; the cubes must be of the same type. Keep the control key in to select cubes. Merging cubes are used in this instance where the sub-category is not doglegging into another drop. Eg interdental having one or two products/facings in the toothbrush drop. It’s better to give space to toothbrushes to block out the sub-category. The merging gives a rounded look rather than having the same subcategory repeated.
- To reorder segments, right-click on the mouse and select reorder segments. Right-click on the mouse to remove the function.
- If any changes were made, click save, and the planoguide will be saved as a .dpa file. This file can be opened later for review or changes.
- Once done click ‘OK’ and the auto-generated planogram will load.
- If there’s a new orange shelf, it is the products the automation could not fit onto the planogram. Check to add these products to the planogram.
Please refer to How To Create A Planogram By Using Planogram Automation if you need more information.
Category Analysis
The category analysis should be done before completing the planogram. Based on the category analysis, space can be allocated optimally on the planogram. The category analysis uses two periods to compare the category’s performance. Certain measures, such as sales, units, unit growth, sales growth, sales and unit contribution and sales and units cumulative contribution are evaluated to determine the best amount of space to be given to the products.
Based on these results, space can be allocated in line with the data and client objectives. Best sellers can be given adequate space and underperforming brands can be closed down in terms of facings wide.
What Dimensions Are Required?
Product and fixture dimensions are crucial to create accurate planograms. Fixture dimensions include floor-to-shelf height, shelf height, width and depth. Product dimensions are crucial to obtain for the planogram to be data-driven. The software captures product dimensions as height, width and depth:
- Height: From the bottom to the top of the product.
- Width: From the left to the right of the product.
- Depth: From the front to the back of the product.
The units of measure to be used are dependent on the client’s preference, which will depict how DotActiv has been set up. It can be either imperial or metric. Although capturing dimensions of fixtures and products can be time-consuming and tedious, it is an important prerequisite for the software to display correct product information on the planogram, such as weekly movement, days of supply and capacity.
What Fixture Information Is Required?
To complete planograms, the correct fixture information must be obtained. If a planogram has sales and unit data, but the incorrect fixtures are used, the days of supply and weekly movement will be incorrectly calculated, as stipulated above.
The correct fixture types and dimensions should be obtained. There are various fixture types a retailer may have in stores such as retail and bulk shelving, wooden or steel shelves, hanging bars, pegs, baskets, drip trays, chiller shelves, fridges, freezers and so forth.
There are standard fixtures, as well as the fixture library tool in DotActiv software that can be used to save fixtures used previously.
What Classifications Should Be Done And Checked?
Data classifications are a crucial part of planogram generation. Before completing the planogram, data classifications must be completed in line with the retailer hierarchy and consumer decision tree.
These classifications must be signed off by the buyer before the planograms can be completed to ensure it is in line with their category objectives.
The classifications should be done at the merchandise group, department, category, sub-category, segment and sub-segment levels. This aids in completing the planograms in line with the category objectives.
The highlights feature can be used to pack products within their correct sub-category, segment and sub-segment groups.