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Monday, May 05, 2008

Vending Machine Techniques: Planogram Design

In simple terms, category management is a system designed to enable you to take advantage of market research in selection of products fro your Planet Antares vending machines.
Basically, there are three steps for designing a planogram and consist of:

a) Identification of product categories
b) Space allocation to each category
c) Deciding on specific products for each category

I would suggest that the categories be grouped in smaller categories. This is a judgment issue. Actually, it is easier to do a planogram if there is lesser number of categories. Still the more categories identified, more the planogram will ensure variety.

After this, you need to allocate space in the Planet Antares vending machine. At least one facing should be available for each category. The number of facings will depend on the category sales and how the products fit into the shelf.

Next comes the product selection. This is a difficult task and needs consideration regarding:

  • Core products
these are items that sell consistently in all machines and represent 20% of the total product mix.
  • Cycle products
these are filled in each machine during the menu cycle but changed between such cycles. Majority of the products constitute cycle products.
  • Choice products
these are items that can be provided for a particular location to meet specific requirements. These are usually less than 20% of the product selection.

Certain vending operators create separate planograms for different accounts according to their nature. Overall, a planogram gives you control over what products to be included in the vending machines. Otherwise, there will be no efficiency in operations as drivers will use personal preferences to save time.

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