For CPG brands, Share of Shelf is an important metric to measure. Improvement in Share of Shelf for a specific product category means more on-shelf visibility at a store.
Nearly 66% of the in-store shoppers decide on what products to pick up while they are at the store shelf. Hence, more on-shelf brand visibility means better discoverability and hence better sales.
The success of this metric directly impacts your market share of a specific product category per region. Today many CPG brands measure this important metric using manual audit processes which are proving to be time-consuming and expensive with inconclusive and often inaccurate data. With expanding product portfolio and no. of stores, the manual audit process will pose serious roadblocks in your ability to market demands.
Today CPG brands need agility in response and fast-paced decision-making to counteract market volatility. Adoption of new and cutting-edge technologies such as Image Recognition and AI is on the rise and proving to be crucial in providing real-time visibility into their entire supply chain and store execution. Image Recognition and AI are helping measure critical on-shelf metrics across hundreds of product categories across thousands of stores in real-time and complementing business goals.
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Share of Shelf metric is measured in two different methods.
In this blog, we explore how real-time Share of Shelf data can help improve overall stock availability on the shelf, enhance discoverability that in turn impacts sales performance at a per-store level. Determining Share of Shelf in real-time can also optimize your inventory distribution and store fulfillment.
Image Recognition enables you to capture Share of Shelf in real-time across 10X more stores and deliver insights in real-time as compared to the manual audits. The measured trend over time can help determine what brands or products are underperforming or fast-selling and whether the spacing of certain product assortment is justified and if they need to be moved to get better visibility.
Share of Shelf can also indicate your sales velocity and zero-sales event within a store. For example, a share of shelf metric for a particular vertical can be an indication of the right quantity of on-shelf stock availability for the consumers to discover. See how a leading personal care brand is continuously improving its Share of Shelf in 2,000 stores across the South-East Asian market.
Brands invest in the verticals that are most profitable for them. Market position is determined by your Share of Shelf which means having more SKUs on the shelf compared to your competitors, at least in the fast-selling or premium product category, thus ensuring dominance in a specific segment.
Distributing and shipping the right kind of products to stores can be tricky if you do not have accurate and real-time insights on your shelf metrics. Co-relating Share of Shelf data with your historical sales data can lead to discovering high or slow-moving SKUs and determine what products are to be shipped to what stores in the right quantities.
This has proved to be beneficial in managing inventory and regulating your supply chain during the pandemic which saw sudden high and low spikes of demand for certain product verticals. The market now demands brands to respond faster and keep the right products stocked adequately on the store shelf.
47% of US consumers are tending to favor or stick with brands that responded better to the market dynamics during the Covid-19 pandemic.
By mapping real-time Shelf Share, CPG brands can better align their distribution and store fulfillment to the stock right mix of products on the right shelf in the right store.
With Image recognition, CPG brands can get detailed insights on not just their Share of Shelf but also understand how they stack up against their competitors. Fine-tuned insights on what assortments occupy what % of the shelf can help in understand what category of products is your competitor driving sales in which stores.
We are currently enabling global CPG brands in the adoption of Image Recognition and AI to help gain accurate and real-time shelf-level data to prevent stock-outs, ensure a fair Share of Shelf for their brand in every store. Tracking WoW metrics have continuously improved in-store SKU visibility by over 20%.
Image Recognition can help uncover other critical shelf metrics and enable CPG manufacturers to exactly identify errors in on-shelf execution and pinpoint new sales opportunities.
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