Monday, August 28, 2006

Designing the Planogram

Category management is a system designed to enable you to take advantage of market research in selecting products for your Antares vending machines.

There are three steps in designing the planogram;

1) Identify product categories

2) Allocate space to each category

3) Decide on specific products for each category.

Product groups: a judgment call

Categories can be grouped into smaller categories. This is a judgment call. It is easier to do a planogram if there are fewer categories. But the more categories identified, the more the planogram will ensure variety.

The next would be to allocate space in the Antares vending machine. Each category should get at least one facing. The number of facings is based on category sales and how the products will physically fit the shelf.

The third step of product selection is the most difficult. You will need to consider:

· Core products – these are products that sell consistently in all machines. They can represent 20 % of the products in your Antares vending machine.

· Cycle products – these go in every machine during the menu cycle, but change in between menu cycles. This comprises the majority of products.

· Choice products – these are products that can be provided for a specific location to meet specific requests. They should comprise no more than 20 % of the facings.

The planogram must designate every facing in the Antares vending machine. Hence it is necessary to have a separate planogram for a machine that has a different number of facings.

How many planograms?

Some operators establish separate planograms for different types of accounts, such as; white collar, blue collar, educational etc. There are differences in different types of accounts. For example, cracker sandwiches do better in public sites than captive sites; pretzels do better in offices than factories.

The planogram will give you control over what products are placed in the Antares vending machines. Without this tool, drivers are free to place products based on personal preferences, or use whatever products are available in order to save time.

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