Now, maximum utilization of physical space not only means that how to use your displays, aisles, or point-of-sale, but it also means where you should place a specific product. So basically, a planogram is a tool or model that helps retailers with product placement while utilizing the physical space with maximum efficiency. Planogram, in the simplest of terms, is a merchandising tool that helps retailers to plan their store’s physical place with maximum efficiency. Benefits Of Planogramming In Merchandising Industry.How To Use Planogram For Your Retail Store.