Manufacturers and physical retail stores were two ends of a single retail supply chain spectrum. The only job of retail is to help in ideation, suggestion, and service, thus enabling the retail supply chain to provide products effectively and sustainably to the consumers.
But, often retail manufacturers find it challenging to understand what's happening inside stores. Sales and supply chain leaders sit in their offices. Their on-field sales agents are their bridge to the physical stores and the only hands-on personnel who can ensure proper execution of all retail strategies.
With consumer product portfolios running in hundreds and sitting across thousands of store shelves, Manufacturers worry about gaining finer control over how consumers see and buy their products. With many variables that threaten to derail your sales strategies and it can prove really hard to ascertain what went wrong and where it went wrong. With increasing business footprint, manually collecting in-store data by a field force agent or a merchnadizer can be slow, time consumg, while severely limiting your ability to scale.
Gathering these data in real-time to address time-bound demands is challenging with manual intervention. So, how does one gain instant visibility on their execution performance to re-capture sales and safeguard their market share? Gathering in-store data is crucial for smooth running retail execution. But collecting the right data in time will prove to be insightful.
It’s attention to detail that makes the difference between winning and failing.
Retailing is ancient and has evolved from sharing and bartering, to selling and consuming. While the industrial revolution pioneered mass-production and distribution of consumer products, the fundamental shift happened when software-driven 'digital transformation' hit the traditionally run retail industry in the mid-90s.
A picture speaks a thousand words. But it also speaks the truth.
Image recognition technology is a set of complex algorithms that are trained to identifying places, objects, faces, buildings and more from digital images.
In the context of physical retail, image recognition technology helps you recognize any type of SKU placed on a retail shelf and derive valuable data from the images. This visual data can help impact your business in various ways.
Image recognition combined with AI can help stakeholders see how their products are placed on the shelves.
Instant and accurate store-level insights enable manufacturers to take actions that increase product share on every shelf of every store shelf. Thus, safeguarding their brand presence insides stores to increase sales through high availability of products for consumers who shop.
Stores are required to comply with trade marketing rules and promotional compliances set by the Brands to be eligible for incentive payouts. With no visibility in how their promotional displays and POSMs are positioned inside stores, it becomes challenging for manufacturers to achieve higher marketing ROI. With image recognition, marketing and branding teams can instantly flag stores that violate compliances and quickly work with the store and category managers to improve promotional visibility.
Merchandizers who visit stores during their audits spend anywhere from 30 to 45 mins to gather in-store data manually. Collecting data manually is tedious, thus resulting in fatigue causing a high margin of errors. Manual audits are slow and time-consuming and have very limited scope to scale. By the end of it, Brands cover only a fraction of stores. With a simple image capturing function at stores, merchandizers can spend their time more productively. To start, they can visit more stores, fix execution issues on the spot and build better relationship with the stores.
Understanding what and how competing brands execute their execution strategies inside store can be a crucial insights for many stakeholders. Not only does it help in making better execution strategy, but also provide valuable insights into product mix on every shelf across stores. this enables brands to achieve precision sales and distribution strategies to ship right products to right stores in right quantities.
Another advantage of competitor intelligence is to understand the competitors pricing strategies implemented across stores for specific product variant. This helped brand managers and category managers to build better pricing strategies compared to their competitors.
To know more on how image recognition can help deliver massive business value to your retail business, talk to us today!
Also, if you wish to understand how Image Recognition AI works to deliver accurate in-store retail insights, check out this our Your complete guide on Image recognition for in-store retail execution