One of the global confectionery manufacturers visited us to seek an innovative solution to track the performance of their retail execution regarding the chocolate and biscuit categories in modern channel.
Their existing solution was based on having hundreds of field agents to track, monitor, and replenish the retail displays on a periodic & reactive manner. They have realized that visual assessment and manual reporting of SKU counts, facing & shelf shares and planogram compliance is very open to human errors especially in categories like biscuit and chocolate which consist of at least 1000+ items per shelf on average. Moreover, the collected data was not properly stored in a database to build an institutional memory and to serve smart and actionable analytics. Last but not least, this operational time was stealing from the time to be spent to ensure customer interaction and satisfaction in modern channel.
We ran a pilot project during August -November 2016 where 7 stores of a national retail chain account (X) and 5 stores of a local modern trade account (Y) have been visited periodically. The following results which allowed the company to take immediate actions, were identified and reported by Vispera Image Recognition Service.
The comparison of KPIs (Planogram Compliance, Facing Share and on-shelf availability scores) for 2 different customers were shared (Figure 1).
Both Key Account Managers were able to calculate the potential loss due to out-of-stock and share with top management. Accordingly, they have started taking preventive actions to increase on-shelf availability scores to above 90%.
Based on the list of Most out-of-stocked SKU lists, an internal analysis was done to understand the root cause of not being on shelf (due to production, distribution or customer).
Regional Sales Manager set one-on-one meetings with field executives to discuss the reasons of low planogram compliance scores and informed them that their incentives would be given based on the overall store scorings.
Data not transformed into actions