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Video  How to use Plannogrammer.


The Plannogrammer is an experiential learning facility for category managers, trade marketers, and retailers in consumer markets. Ideally suited for hybrid learning programmes, Plannogrammer imparts hands-on training in the planning and evaluation of promotions and merchandising.

It supports a collection of simulation and analysis platforms such as Promotions and Space Planner for optimizing space and promotions, Plannogram for populating shelves and merchandising, a Due To Analysis dashboard that decomposes brand sales into the factors driving sales, and a Promotion Evaluator to evaluate the volume, value and profit impact of promotion plans.

The How to use Plannogrammer video illustrates the key platforms on this facility.

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Promotions and Space Planner — What If Analysis

Retail Promotions and Space Plan - Category Management - Plannogram. Training App: Retailer, Category Manager, Trade Marketing.
Exhibit Retail Promotions and Space Plan - Category Management.

The Promotions and Space Planner is a What If Analysis tool that permits users to optimize shelf space and promotion plans.

Users set item facings, and chalk out promotion plans in terms of price discounts, displays and feature or co-op advertising.

As can be seen from the above exhibit, the platform provides details of brands’ baseline sales in volume and value, list prices and regular prices. And, based on the promotions plan, it estimates projected sales including losses if any due to stock outs.

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Plannogram

Retail Space Management - Plannogram. Training App: Retailer, Category Manager, Trade Marketing.
Exhibit Retail Space Management - Plannogram.

The planogram is a facility for populating shelves and merchandising.

The merchandising score at the top of the exhibited page, ranges from 0 to 100. It reflects how well items are aligned within their respective segments.

As users populate the shelf, the plannogram’s colour codes reveal whether the facings are adequate, high or low. For instance, code red for a brand indicates facings are so low that unless the item is on display, it is expected to experience stock outs.

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Due-To Analysis

Due-to analysis: Decomposition of sales - Promotions Evaluation. Training App: Retailer, Category Manager, Trade Marketing
Exhibit  Due-to analysis of Promotions and Merchandising - Category Management.

The Due-To analysis dashboard decomposes brand sales into the baseline and each of the causal factors driving sales.

For the example shown in the exhibit, Koko Krunch’s projected sales are much greater than its baseline sales primarily due to gains from the price discount. The brand has also gained significantly from the display as well as co-op advertisement.

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Promotion Evaluator

P&L Analysis of Promotions and Merchandising - Plannogram. Training App: Retailer, Category Manager, Trade Marketing
Exhibit  P&L Analysis of Promotions and Merchandising - Category Management.

Promotion Evaluator evaluates promotions in terms of the volume, value and profit impact of the promotions plan, on all of the items in the category, as well as the category as a whole.

For plan depicted in the exhibit, considering the big price discount for Koko Krunch, we see a large projected gain in volume. The gain in value is not as large due to the discount, and for the same reason the brand’s gross margin has plummeted.

At the bottom of this screen you can see that for the category as a whole, while there is significant increase in volume, value sales have declined and profits have dipped considerably.

This analysis, however, does not account for the promotional support that the retailer might have received from the manufacturers of the promoted brands.

And importantly it does not account for the gains in sales of other product categories, through the additional store traffic generated by the promotions in breakfast cereals.

The plan would be beneficial, if the increase in shopper traffic resulted in gains in sales and profits across product categories that more than compensated the loss in breakfast cereals.

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Model Parameters

Plannogram - Elasticities and Cross Elasticities. Training Retailers, Category Managers, Trade Marketers.
Exhibit  Elasticities and Cross Elasticities - Category Management.

This dashboard depicts Elasticities and Cross Elasticities for discount price, display and co-op advertising.

Elasticity refers to the degree of responsiveness of one variable to another. So for instance, price elasticity of demand is a measure of the responsiveness of demand (i.e. sales quantity) to a change in price.

In the table, the elasticities are placed along the diagonals and shaded beige. For instance, the discount price elasticity of demand for Koko Krunch is −3.2. This implies that a 10% reduction in the item’s price will result in a 32% increase in sales.

The table also depicts the cross discount elasticities. It tells us that a 10% discount in the price of Koko Krunch will result in 8% drop in the sales volume of Milo. Similarly a 10% discount in the price of Milo will result in 3% reduction in sales of Koko Krunch.