Making IoT Data Beautiful, COTY Drives Sales by Optimizing In-store Merchandising
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The document discusses how Coty uses real-time data from Shelfbucks to optimize in-store merchandising and drive sales. Only 50% of displays were being executed correctly historically, leaving sales opportunities. Shelfbucks provides data on display compliance across retailers in real-time. Early case studies found 20-35% incremental sales are possible by using the data to ensure displays are properly placed and maintained. The solution provides transparency across merchandising, supply chain, and store operations to coordinate improvements. Coty and CVS saw benefits including increased category sales and optimized inventory levels from the partnership.
Making IoT Data Beautiful, COTY Drives Sales by Optimizing In-store Merchandising
- 1. This Exhibitor Big Ideas session is developed, produced and sponsored by + Making IoT Data Beautiful COTY Drives Sales by Optimizing In-store Merchandising January 15, 2018
- 2. This Exhibitor Big Ideas session is developed, produced and sponsored by 2 Data is power New data + alerts for improved display execution & sales performance at retail
- 3. This Exhibitor Big Ideas session is developed, produced and sponsored by How much will CPG Marketers spend in 2017? 3 $225 Billion
- 4. This Exhibitor Big Ideas session is developed, produced and sponsored by Where is largest portion spent? 4Cadent Consulting Group- 2017 Consumer Promotion, 10.5% Shopper Marketing, 12.9% Traditional Advertising, 13.3% Digital, 19.9% Trade Promotion, 43.4% § Traditional Advertising § Digital marketing § Shopper Marketing § Consumer Promotion § Trade Promotion= $98 Billion
- 5. This Exhibitor Big Ideas session is developed, produced and sponsored by TO CELEBRATE AND LIBERATE THE DIVERSITY OF YOUR BEAUTY
- 6. This Exhibitor Big Ideas session is developed, produced and sponsored by The Beauty Consumer She is a beauty enthusiast who is looking for both her favorite products and the latest new products and trends. Her trip is not a traditional stock up, planned purchase but rather one that is discretionary and impulsive in nature. Her impulse purchase is influenced by what she sees in the media and in-store.
- 7. This Exhibitor Big Ideas session is developed, produced and sponsored by Displays drive significant sales
- 8. This Exhibitor Big Ideas session is developed, produced and sponsored by Challenge is Display Compliance 8 % Displays ordered that are executed at retail within the sales period in the approved store list
- 9. This Exhibitor Big Ideas session is developed, produced and sponsored by Challenge is Display Compliance 9 Industry is 50% = opportunity for improvement!
- 10. This Exhibitor Big Ideas session is developed, produced and sponsored by Historic solutions, there was not a good one… 10 § Little data was available and was not real-time to take action § Work with retailers to improve execution but there were lags § Send out 3rd Parties to set up displays which costs additional money and often missed key alignment dates § Utilize 3rd Parties to audit execution compliance Needed actionable data!
- 11. This Exhibitor Big Ideas session is developed, produced and sponsored by Why it matters 11 § Lost incremental sales opportunities for the category § 50% of displays don’t get executed so there is waste § Inventories build and impact GMROI § Future display forecasts are not optimized Opportunity: Leverage data to increase store execution, drive incremental sales, improve ROI and enhance future planning.
- 12. This Exhibitor Big Ideas session is developed, produced and sponsored by Optimal Future State: § Real Time Display Location Data- Floor or Not § Brand & Retailer Execution Partnership § Brokers or Store Personnel Leverage Data to Increase Compliance § Increase Category Sales § Optimize Future Promotions/Displays based on Data Analysis 12 Real Time Data + Brand & Retailer Partnership Category Sales Opportunity =
- 13. This Exhibitor Big Ideas session is developed, produced and sponsored by The Shelfbucks Solution 13 ü Increase category sales ü Real-time location data (On sales floor or not) ü Brand & Retailer execution partnership to drive efficiencies ü Brokers or stores use data to increase performance and strengthen operations ü Merchandising use data to optimize future promotions/displays CVS pilot 2 years ago Now at scale
- 14. This Exhibitor Big Ideas session is developed, produced and sponsored by Real-time Display Data & Alerts How it works Industry Findings Case Studies ©2017 Shelfbucks Confidential & Proprietary
- 15. This Exhibitor Big Ideas session is developed, produced and sponsored by 15 20-35% incremental sales volume with actionable data & alerts to improve performance
- 16. This Exhibitor Big Ideas session is developed, produced and sponsored by 16 Data from every display, every store, every day Improved execution & decision making
- 17. This Exhibitor Big Ideas session is developed, produced and sponsored by More Days on Display = Improve 35% points Sales & Category Share GM ROI Optimize Trade $, COGS & Time Reduce Excess Inventory
- 18. This Exhibitor Big Ideas session is developed, produced and sponsored by Where are your displays every day Confidential
- 19. This Exhibitor Big Ideas session is developed, produced and sponsored by SKU-level Incremental Sales Incremental Sales by Week Confidential
- 20. This Exhibitor Big Ideas session is developed, produced and sponsored by Identify missed sales $1,000,000+ Confidential
- 21. This Exhibitor Big Ideas session is developed, produced and sponsored by Full transparency in communications + planning across merchandising supply chain & store operations
- 22. This Exhibitor Big Ideas session is developed, produced and sponsored by Early Results & Case Studies 500 Million Data Points Early Industry Insights
- 23. This Exhibitor Big Ideas session is developed, produced and sponsored by 23 Shelfbucks 2018+ Shelfbucks 2017 500 Million Data Points 2 Trade Channels 3 Retail Chains 6,500 Stores 27 Programs 9 Categories 19 Display Types 183 Products 3 Billion Data Points Mass, Grocery, Drug Trade Channels Top National Retail Chains 30,000+ Stores most Programs most Categories most Display Types Thousands Products Historical Scale
- 24. This Exhibitor Big Ideas session is developed, produced and sponsored by 24 500M data points. Three chains. Two trade channels. 50+ programs. Source: 2016 Shelfbucks Study Historical Reporting
- 25. This Exhibitor Big Ideas session is developed, produced and sponsored by 25 80% 50% Program D 41% Program C 19% 91% Program B 95% 82% Program A 0% On-Floor Rate Sales Performance Hidden Sales Opportunity Unlock hidden sales opportunities
- 26. This Exhibitor Big Ideas session is developed, produced and sponsored by 26 Late/neverOn-timeearly 28%14%58%Allergy 44%11%45%Snack 53%17%30%Snack 30%26%44%Beauty 33%15%52%Cough & Cold 62%12%27%Beauty 45%11%44%Beauty On-time varies widely
- 27. This Exhibitor Big Ideas session is developed, produced and sponsored by 27 Display 1 - SKU Mix Display 2 - SKU Mix SKU mix drove sales lift
- 28. This Exhibitor Big Ideas session is developed, produced and sponsored by 28 41% 80% Store Brands Program ActualExpected -39% 30% 70% New Product Launch ActualExpected -40% High profile programs had high variability
- 29. This Exhibitor Big Ideas session is developed, produced and sponsored by 29 Grocery Battery Display Case Study Displays arrived late Displays put on floor late Displays never arrived Displays thrown away
- 30. This Exhibitor Big Ideas session is developed, produced and sponsored by 30 +391K Incremental sales at scale +64% Sales lift when executed Challenge • Sales rate higher when displays on sales floor • Sent alerts to stores requesting execution Results • Stores took action to execute displays • 64% sales lift per day when display executed • At scale $391K additional sales during period Grocery Battery Display Case Study
- 31. This Exhibitor Big Ideas session is developed, produced and sponsored by In Supply Chain In Stockroom On floor Was on-floor, but now removed Disposed without being placed on-floor • 39 delivered to wrong store • 60 never delivered Drug Beauty Display Case Study
- 32. This Exhibitor Big Ideas session is developed, produced and sponsored by 32 +33% Incremental execution +45% Stores took action Challenge • Only 800 displays on sales-floors at start date • Sent alerts to 600 stores requesting execution Results • 270 additional stores took action to execute displays • Added 8,400 additional days of promotional sales • Additional 33% incremental display execution Drug Beauty Display Case Study
- 33. This Exhibitor Big Ideas session is developed, produced and sponsored by In Supply Chain In Stockroom On floor Was on-floor, but now removed Disposed without being placed on-floor • 16 delivered to wrong store • 90 never delivered Drug Allergy Display Case Study
- 34. This Exhibitor Big Ideas session is developed, produced and sponsored by 34 +17% Incremental execution +32% Stores took action Challenge • Only 800 displays on sales-floors at start date • Sent alerts to 443 stores requesting execution Results • 143 additional stores took action to execute displays • Added 5,800 additional days of promotional sales • Additional 17% incremental display execution Drug Allergy Display Case Study
- 35. This Exhibitor Big Ideas session is developed, produced and sponsored by 35 Before Data § 50% execution § $9M sales during period § $12M excess inventory Brand Opportunity 60K displays $21M sales opportunity After Data § 80% execution § $14M sales during period § $7M excess inventory
- 36. This Exhibitor Big Ideas session is developed, produced and sponsored by 36 Before Data § 50% execution § $450M sales during period § $550M excess inventory Retailer Opportunity 3M displays $1B sales opportunity After Data § 80% execution § $750M sales during period § $250M excess inventory
- 37. This Exhibitor Big Ideas session is developed, produced and sponsored by 37 § Increase Category Sales § Real-time location data for decision making and action § Brand | Retail transparency & partnership § Field & Stores Operations use data to increase performance § Merchandising and Inventory Management use data to optimize future promotions/displays COTY & CVS Benefits = Industry Game Changer
- 38. This Exhibitor Big Ideas session is developed, produced and sponsored by Future Media Tie-in
- 39. This Exhibitor Big Ideas session is developed, produced and sponsored by Thank you + QA Contact: Karen Van Dongen, Karen_Van-Dongen@cotyinc.com Erik McMillan, emcmillan@shelfbucks.com +
- 40. This Exhibitor Big Ideas session is developed, produced and sponsored by 40