The purpose of this article is to clarify the distinctions between the processes followed for a new category implementation versus those undertaken during a review or refresh of an existing category.
This guidance is relevant for both Shelf Planners and Category Planners, as understanding these differences is crucial for effective category management.
By outlining the unique steps and considerations involved in each scenario, the article aims to enhance the planning and execution of category strategies, ensuring optimal results in both new and established categories.
New
A new planogram is created when entirely new data sets are utilised to design a planogram from start to finish. This typically occurs when a new category is being implemented in the store that has not been previously planogrammed or merchandised.
The creation of new planograms will happen frequently as the business continues to expand its brands, categories, and offerings. This process involves gathering relevant data, understanding the category’s unique requirements, and developing a planogram that effectively represents the new product range while optimising shelf space and enhancing the shopping experience for customers.
Before introducing a new product category it’s important to determine whether it makes business sense.
Review
A review involves utilising a combination of new sales data, historical data, and other relevant metrics to analyse and assess growth within a category.
Following this analysis, changes are made to the planogram, which may include adding new products, discontinuing underperforming items, and adjusting category flow or subcategory and segment flows. The space allocation for all products on the planogram is carefully reviewed and modified based on the updated data set. Additionally, the strategies for the category are evaluated and the planogram is adjusted accordingly.
The frequency of these reviews depends on the rate of innovation within the category and its significance to the business’s income and growth. Reviews may be conducted at various intervals, such as every three months, quarterly, every six months, or annually, depending on the specific needs of the business and the dynamics of the category in question.
This process ensures that the planogram remains relevant and effective in driving sales and meeting customer needs.
Learn more about how to complete a product range review successfully and four ways you can prepare for your next category review.
Refresh
A refresh is a streamlined process that involves a quick import of new data to identify any newly added or discontinued products within a category. This process is typically completed within one to two hours, depending on the category and the size of the planograms. Importantly, the space allocation remains unchanged during a refresh; any adjustments to space allocation are reserved for the Review process, which involves a more thorough reanalysis of the data.
The frequency of refreshes is influenced by the rate of innovation within the category and its significance to the business’s income and growth. It may also depend on how often new products are introduced and the expansion of the product offering. Refreshes could be conducted weekly, bi-weekly, every three months, quarterly, semi-annually, or annually, based on the specific retailer and category dynamics.
Tip: If the number of new products added during the refresh necessitates significant changes to space allocation, it is advisable to consult with your Account Manager. In such cases, it may be more appropriate to take the category through the Review process to ensure that any changes to space allocation are grounded in comprehensive data analysis. This approach will help maintain the effectiveness of the planogram in driving sales and enhancing the customer experience.
Learn more about this topic on the DotActiv blog.
Generic
In a generic planogram, DotActiv employs standardised product and shelf layouts that are not specifically tailored to individual stores or retailers. Instead, these layouts are based on general merchandising principles applicable across various retail environments. This approach offers scalability and flexibility, making it well-suited for use across multiple store locations or product categories.
A generic planogram is typically utilised in scenarios where a highly customised planogram is either impractical or unnecessary. Key situations where a generic planogram is employed include:
1. New Store Layouts or Launches:
When opening new stores or introducing new product lines, retailers may lack detailed sales or customer data necessary for crafting a tailored planogram. In these cases, a generic planogram serves as a solid starting point, providing a functional and visually appealing layout until specific insights can be gathered.
2. Temporary Displays or Seasonal Promotions:
For short-term setups such as promotional displays, end caps, or seasonal items, the need for a custom planogram may be minimal. A generic planogram allows for quick and efficient presentation of these products without the requirement for extensive planning.
3. Lack of Data:
In situations where specific sales or demographic data is unavailable or unnecessary for certain product categories, retailers may opt for a generic planogram to guide product placement. This strategy enables effective merchandising to continue without delaying for detailed insights.
4. Initial Product Rollout:
During the initial rollout of a new product line, a generic planogram can act as a temporary solution. It ensures that products are displayed appropriately while retailers collect the necessary data to develop a more tailored, data-driven planogram.
By leveraging generic planograms in these contexts, retailers can maintain effective merchandising practices, enhance product visibility, and streamline the planning process, ultimately contributing to a positive shopping experience for customers.