You invest time, money and sleepless nights to launch a NPD you trust the consumer will try, enjoy and purchase over and over again. You put processes in place to insure the product is produced to specific standards. Then release the product, ship it to the retailer, with little control—hoping their plan of execution meets your company’s standards.
What if you could influence this process?
Suppliers introduce tens of thousands of new products each year around the world and the majority fail within a brief period of time. Having this information early-on can make the difference between success or failure.
Unfortunately, you can’t send a team of people into every store and have them execute your marketing and merchandising plan. So, Aglo created a system that can report in real-time how these processes are handled. Utilizing this information, you look for opportunities which will create real-value in your conversation with the buyer. Recognizing the value of these opportunities, the retailer is easily persuaded to increase shelf space which will improve overall sales—a win-win situation for you and the retailer.
The following are several reasons why tracking product facings can raise your revenue of your NPD:
- Visually see hidden business opportunities
- Know how well your brand is being stocked on the shelf
- Know how well your brand is competing compared to your competitors
- Help you develop an execution strategy going forward
- Assuring the proper location of your NPD
Let’s visit two separate case studies.
One for Coconut Water 1-liter bottle and the second is Chocolate Bars 100g. Three different small-format retailers were tracked over a 6-day period (June 21stto July 2nd, 2018): Woolworths MetCentre, Woolworths George Street and Coles Wynyard Station.
Case study 1: Coconut Water 1-liter bottle
As you examine the pictures below taken after lunch each day at 13:00 you’ll notice:
- Inconsistent merchandising.
- Number of facings changed almost daily.
- The competitor’s conditions and facings changed as well.
- Notice the out-of-stock condition of the 12-pack water at the lower left and lower right.
Tracking product conditions in a nearly real-time scenario can go a long way in providing data for making decisions on how to proceed.
- Cocobella is a brand leader in Australia with the highest market share among any other competitor. However, at this location, it’s the third brand regarding facings after H2 Coco and the private label.
- The private label has higher facings even with a lower market share
- Innovations’ Sparkling Coconut Water and Watermelon 250ml aren’t performing as rapidly as mainstream based on these snap-shots.
- The overall execution of shelf conditions and out-of-stocks were very poor.
- Increasing the number of facings of Cocobella, could increase the sales of the product.
- If the private label is using a price or bonus pack strategy, perhaps you can work to compete at that level for more shelf space.
- Improving the merchandising at this store would improve sales.
Case Study 2: 100g chocolate bars
After examining the pictures, chart and graph you’ll notice many of the same issues found in the first case study.
- Cadbury is the chocolate bar market leader in Australia with the broadest range of products. However, many of the SKU’s were missing during this week.
- The planograms don’t appear to be correct based on other store planograms. Have their competitors acquired extra shelf space?
- The current planogram doesn’t appear to provide a good customer experience—too confusing.
- Product availability alone would increase sales. Ordering and merchandising would be great subjects to discuss with the buyer.
- Assure the buyer has the proper planogram for the Cadbury set.
- Cadbury could re-visit its packaging. Off brands may be benefiting due to the consumer not recognizing the difference in similar product packaging.
Making effective long-term decisions about your company’s NPD is critical to the success of any enterprise. Product tracking by Aglo provides the data necessary in seeking opportunities which will give you a competitive advantage. Sharing these opportunities with the retail buyer proves the case for increasing shelf space.
The better informed you are, the more comfortable you’ll be with any decision you make. Aglo’s innovative retail intelligence platform provides the knowledge necessary to achieve the desired outcome over your competitor’s products as presented to the consumer—and that’s leverage.