Automate Value, Speed and Efficiency
The physical retail world is in a constant state of competition for sales with the increasing popularity of discounters, e-commerce as well as new business models such as Direct-to-Consumer. The need to deliver a simple, less cluttered shopping experience that meets the shopper’s need is the key to winning the shopper in store.
How well is the physical retail world competing? A Kantar World Panel study found that only 1.1% of new products tracked managed to reach a standard benchmark of success (market penetration of 1% in Year One)1. Retailers and manufacturers need a more effective way of ensuring needs are met while being able to innovate, design and test simpler shopping experiences.
Find out how a few leading CPG companies are currently simplifying to compete.
Model SKU Value
Measure incrementality (SKU Value) to determine the uniqueness of a product’s value to your retailer. This will simplify the experience for shoppers by reducing the overlap of highly similar products. You’ll improve assortments and be able to introduce a more optimal mix of innovative, core and niche items. In the past 25 years of working with manufacturers & retailers, we have seen that optimized assortments can mean up to 3% – 5% in category lift.
Scott Huff, former EVP of Merchandising Operations at Walmart, stated that speed is the only long-term, sustainable advantage in retail. Speed enables Category Managers and their retailer partners to reinvest their time towards value-adding activities that have a bigger impact on growth. Speed up with easy to reach time saving efficiencies, such as guided merchandising and platforms that integrate important shopper data.
In the end, shoppers spend three currencies in store: Money, Time/Convenience and Angst. In order to increase spend, in-store assortments and delivery must reduce or eliminate the other two. Digital innovation via Virtual Reality allows for quick tests of potential shelf configurations and flows before you go to market, at a fraction of the cost of physical testing.
See an example of how you can bring together growth, efficiency and ease of shop in collaboration with your retailer partners so you can create the next generation of category winning innovation.
Curious? Learn more about streamlining category growth here.
1 Kantar World Panel, Innovation for Growth, June 2017
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Global Product Director