In-store promotions have forever been used as a growth lever in the physical retail world. For manufacturers, promotions may account for as much as 25 percent of gross sales.
While it’s pretty easy to measure how much a promotion sold and factors like pricing come into play as a quick win, it is a lot harder to clearly understand why a pricing discount or a display worked or, even more important, why something didn’t. So, in addition to point-of-sale (POS) data, consumer goods companies are adopting new data on store conditions to fill in the gaps around performance measurement as well as develop actionable insights for new promotion and display strategies.
Here are 3 simple, yet effective ways in which to improve your promotion analysis using in-store execution data.
A store-level analysis by Trax and POPAI showed that 42 per cent of displays were noncompliant with the plan, but CPGs assumed compliance rates of 70 per cent or more.
Here is a real-world example of how one brand uncovered a substantial sales opportunity by closely analyzing its promotional displays.
This CPG company leveraged a customized BI dashboard to identify an astonishing 87 percent gap in display compliance versus the target execution for a core brand, Brand F. Bridging this gap alone would generate an additional $106,400 in sales. Ultimately, this client stands to gain $3.6M in revenue by closing all such execution gaps.
Using the same in-store execution data, the manufacturer identified that their promotions had a high reliance on Front end-cap and floor displays; Front end-cap displays constituted more than half of its overall share of display.
By combining this with POS data, they quantified the effectiveness of displays and uncovered new promotion optimization and rationalization opportunities.
In the dashboard below, it is easy to visualize not only how many stores have the company’s products on display in the store, but also see which display type drives the highest lift in shelf performance. In this case, in-aisle displays drive the highest lift (4.5%) and Front End Cap the lowest lift (2.5%).
Having ‘eyes in the store’ on placements means going beyond getting compliance right in the store. It’s important for brands to understand their own displays and shelf optimization strategies, but they should aim for visibility across competitors’ promotional activity and workflows too.
The dashboard below gives multinational alcohol manufacturer intelligence on their competitors’ core SKUs and shelf data insight such as their on-shelf presence across display types, store types, regions and trade channels. It visualizes shelf presence versus that of the competition using a simple traffic light color code based on real-time feedback to help drive sales, improve conversion rates and bottom line.
With continuous access to this data, the brewer can:
Compliance metrics, and digital shelf insights about their product listings such as on-shelf availability (OSA), share of shelf and shelf positioning are essential for ensuring brands are getting what they’ve paid for and identifying which corrective actions field sales teams should prioritize during store visits.
With access to analytics solutions such as granular reports that compare clusters of promotions displayed versus what competitors have on display – CPGs’ brand and category managers can create clear actionable targets for the retail outlets displaying promotions, whether an existing or a new product.
Trax Insights Studio provides on-demand insights and accessible data that allows CPG brands to make data-backed display decisions with confidence. It turns a cumbersome analytics process into an easy, intuitive experience for infrequent users and offers unparalleled analytical insights for primary users in the overall decision making process.
Find out more about Trax Insights Studio and request a demo to see more use cases and how our platform works.
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