Where Retail meets Tech

September 17, 2018

Why You'd Better Use Retail Execution and Image Recognition All in One

Written by Cécile Garrett

What do top growth leaders in the Fast-Moving Goods industry have in common? As digitalization disrupts the retail landscape by transforming consumption and purchasing habits, some Consumer-Packaged Goods (CPG) manufacturers manage to sustain their growth and reach corporate ambitions. There are many levers which enable them to do so, but their capacity to deliver outstanding retail execution is the cement of their growth. Innovations and advanced technologies such as joint Retail Execution and Image Recognition solutions help them achieve that seamlessly.

Besides scaling capacities, increased agility, and strategic M&A deals, studies by McKinsey (2017) and BCG (2018) reveal that top growth leaders in the CPG industry demonstrate best-in-class Retail Activity Optimization (RAO). RAO is about leveraging recent data at the point of sale to optimize in-store execution and maximize the profitability of each store visit. Thanks to various technologies and methods such as Image Recognition to digitally measure shelf KPIs, e-pos, consumer studies, etc., leading CG firms can collect tailored insights which they can leverage in their negotiations with retailers and stores.

Indeed, their in-depth knowledge of both the performance and business potential of their categories, as well as of shoppers gives them the ability to optimize their trade marketing and retail execution activities. In a press release announcing their “Top Growth Leader” award, the President of Sales for Mars Chocolate North America, Tim LeBel, highlights that effect. He shares their vision to "continue to focus on bringing breakthrough innovation to all of our categories while also delivering brilliant execution on the iconic brands our fans love.” Great retail execution is part of that course, and the backbone of any robust RAO strategy as it helps maximize sales in stores and ensure planogram compliance. It enables CPG firms’ field forces to be more agile and prioritize store visits according to the business opportunities they identify as most promising. Great retail execution also helps streamline in-store processes to:

  • Minimize the complexity of the environment sales reps and merchandising teams must work in
  • Support CPG businesses’ ambitions as they look out for new ways to optimize their growth drivers to keep up with the ever-evolving retail landscape

For CG manufacturers, sales performance is a primary growth driver. But, their sales forces have little time to allocate to each store, which can ultimately impact their ability to reach their targets. Between monitoring planogram compliance, assessing the situation at the store level, and actually selling, a store visit can feel even shorter and, sometimes, rather inefficient. Hence, one of the pillars of an RAO strategy is to identify ways to add more value to the outcomes of sales reps’ activities by diminishing the time they spend on tasks with less added value and increasing business opportunities to drive sales growth in stores. Combining cutting-edge technologies of Retail Execution and Image Recognition into an all-in-one solution can help FMCG companies address the modern challenges that they face effectively.

 

 

At Planorama, we partner with leading organizations to bring Retail Execution activities to the next level with Image Recognition. So, we could not miss out on the opportunity to join forces with AFS Technologies. With over 30 years of experience, AFS is the leading provider of software solutions purpose-built for CG companies and serves more than 1,000 customers in over 50 countries. That is why we decided to merge our solutions of Image Recognition and Retail Execution together. By providing FMCG firms with an all-in-one application integrating the power of Artificial Intelligence with Sales Force Automation, we provide them with an elusive competitive edge to reach the next level in retail execution. Instead of relying on a handful of siloed applications to influence costs and sales, CPG manufacturers can now fuel their salesforce automation application with real-time shelf data to generate higher returns and optimize their ROI. By providing them with consistent and timely insights to identify and act on sales growth opportunities, we allow CG manufacturers to touch on the key steps of the retail execution process to execute, measure, and improve sales and merchandising activities in stores.

But we know actions speak louder than words. So, we based this free white paper on a series of real-life examples to shed light on the different ROI an integrated RE/IR solution can deliver to CPG companies to support their growth.

Interested in learning more? 

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Topics: retail execution, partnerships