A leading consumer packaged goods (CPG) company found that its revenue increased by 13% in stores where it implemented a Perfect Store strategy. In this blog, we outline what a Perfect Store strategy is and how it can work for your business.
What is a Perfect Store?
A Perfect Store is one in which consumers can find the right products in the right location, with products presented in the best possible way to influence buying behavior. To achieve this, CPGs design and execute shelf standards that translate shopper-centric insights into practical, scalable and repeatable in-store-execution guidelines.
This strategy:
How do you create a Perfect Store?
The Perfect Store process is co-owned by Category Management, Market Insights/Research and Space Planning teams. Creating the ideal ‘picture of success’ requires a deep knowledge about consumer behavior and makes use of qualitative and quantitative research, POS data, panel, shopper card and manual survey data. When done well, the Perfect Store strategy delivers insights on:
The levers of a Perfect Store strategy
Perfect Store guidelines may vary across categories, customers and channels, and it’s not uncommon for CPG companies to have up to 20 distinct sets of guidelines. Broadly speaking, these are the main levers of a Perfect Store strategy that field teams are expected to execute in the right stores:
Executing the Perfect Store
Implementing a Perfect Store strategy is expected to bring a wide range of benefits including:
However, monitoring whether the picture of success is executed correctly currently involves a manual process with limited survey questions. Managers at the head office are left to rely either on sales data or field teams self-reporting on execution. This not only limits their ability to measure execution effectively but also to fully measure the impact of program non-compliance over time.
Improving compliance at outlet level
The good news is that you can overcome the limitations of these traditional approaches by using image-recognition (IR) technology (see table below). IR captures images of retail shelves and provides real-time insights into what is happening on every aisle in every store. By seeing what is actually happening on the shelves, you can monitor what elements of your Perfect Store strategy are in place and measure how effective they are.
Perfect Store execution: Traditional versus Image Recognition
With eyes in the store and access to trustworthy, reliable store and SKU-level data at the shopper moment of truth, CPGs can develop a tighter framework to improve the success of Perfect Store programs.
Example of a Perfect Store execution framework
Watch this webinar to learn how Trax can help you improve brand and category performance while increasing store sales and margins.|A leading consumer packaged goods (CPG) company found that its revenue increased by 13% in stores where it implemented a Perfect Store strategy. In this blog, we outline what a Perfect Store strategy is and how it can work for your business.
What is a Perfect Store?
A Perfect Store is one in which consumers can find the right products in the right location, with products presented in the best possible way to influence buying behavior. To achieve this, CPGs design and execute shelf standards that translate shopper-centric insights into practical, scalable and repeatable in-store-execution guidelines.
This strategy:
How do you create a Perfect Store?
The Perfect Store process is co-owned by Category Management, Market Insights/Research and Space Planning teams. Creating the ideal ‘picture of success’ requires a deep knowledge about consumer behavior and makes use of qualitative and quantitative research, POS data, panel, shopper card and manual survey data. When done well, the Perfect Store strategy delivers insights on:
The levers of a Perfect Store strategy
Perfect Store guidelines may vary across categories, customers and channels, and it’s not uncommon for CPG companies to have up to 20 distinct sets of guidelines. Broadly speaking, these are the main levers of a Perfect Store strategy that field teams are expected to execute in the right stores:
Executing the Perfect Store
Implementing a Perfect Store strategy is expected to bring a wide range of benefits including:
However, monitoring whether the picture of success is executed correctly currently involves a manual process with limited survey questions. Managers at the head office are left to rely either on sales data or field teams self-reporting on execution. This not only limits their ability to measure execution effectively but also to fully measure the impact of program non-compliance over time.
Improving compliance at outlet level
The good news is that you can overcome the limitations of these traditional approaches by using image-recognition (IR) technology (see table below). IR captures images of retail shelves and provides real-time insights into what is happening on every aisle in every store. By seeing what is actually happening on the shelves, you can monitor what elements of your Perfect Store strategy are in place and measure how effective they are.
Perfect Store execution: Traditional versus Image Recognition
With eyes in the store and access to trustworthy, reliable store and SKU-level data at the shopper moment of truth, CPGs can develop a tighter framework to improve the success of Perfect Store programs.
Example of a Perfect Store execution framework
Watch this webinar to learn how Trax can help you improve brand and category performance while increasing store sales and margins.