A major UK confectionary
manufacturer gains additional shelf space and improved layout
November 2004Using a combination
of Named Account Data and the Apollo Software, Merchandising Consulting
at IRI helped a major UK Confectionary Manufacturer gain additional
shelf space and improved layout in the Confectionary category.
The Manufacturer in question, who planned to launch a
completely new pack design, required assistance from IRI in producing a
business case to change the layout of the confectionary fixture within a
major Retailer, which would incorporate its new style packs.
The existing planogram was generated in Apollo
Professional and with the use of Named Account Data, the Manufacturer in
conjunction with IRI was able to prove that the particular brand did not
have the space it deserved, in its original form, compared to its sales.
The competitor products that were over faced based on their sales were
highlighted so the Retailer could clearly identify areas for
improvement.
The submitted business case resulted in the Retailer
generating a completely new layout by adjusting the facings of the
bagged confectionary section and adding new mini shelves to the middle
of the fixture to make sure that the “new look” brand received a fairer
percentage share of space in accordance with its sales (the original
brand had previously sat, below eye level, on a shelf below the hanging
bagged confectionary).
The new layout was implemented in a set of trial
stores, and the sales were tracked against stores of similar size which
had the original layout.
The result was that sales for the “new look” product
increased in both types of stores, however, the sales for those stores
that implemented the new trail layout increased on average by 3% more
that the stores that had the original layout.
Due to these results, the Manufacturer and Retailer
came to the conclusion that both the new pack design and the new
positioning were successful. The Manufacturer went on to replicate the
business case at other Retailers, and the “new look” brand went on to be
repositioned within a large part of the market place.
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