There is a high intensity of promotional campaigns in retail, where consumers have become used to buying products with discounts and where a high percentage of costumer’s purchases comes from impulsive buying due to offers and deals.
However, implementing offers is not an easy task, it requires a series of actions that have to happen in a coordinated and timely fashion: assuring that the products have the right price tags (in the context of thousands of SKUs on each store), that you have the correct exhibition space, the implementation of POP material (specific marketing material for a brand or product, that can go from stickers in gondolas to sophisticated exhibitions), tastings and samples, etc. According to a study made by Popai consultant, massive consumer companies and retailers estimate that, in average, the correct implementation of POP material is higher than 70%, while this study shows that they comply with approximately 40%, generating a great breach between what they believe is happening and what actually is being shown.
Why is this happening?
There are three problematic situations that have an impact in a good implementation:
- Lack of information in stores about the implementation of discounts: It is usual that central areas send information to store administrators through mails or more informal channels such as WhatsApp. What happens when there is a change of administrator or if he or she is on vacations? Is there a standard to comply by delivering this documentation? When the administrator sends this information to another person, like the section or department leader, how is it possible to know that they understood the requirement? Is there a platform where people can raise questions?
- Deficiency in prioritization and centralization of requirements: Modern day retail specialization has led companies to have an independent business team for each product category, which many times compete for resources and spaces in the store. The store receives simultaneous instructions from diverse communicational channels, that take time from the store personnel, often existing an over demand and not having enough resources to implement in time and according to commercial expectations.
- Lack of visibility of implementation from central offices: Usually, when a requirement is sent to the store, the commercial areas need to hope for things to be implemented in the store just as they need to, which doesn`t necessarily happens. More often than not, they use informal and ineffective methods, such as email and WhatsApp to raise evidence (photos), many of them not being sent most of the times.
Frogmi is helping retail companies by simplifying the implementation of discounts at sales points, through a simple platform used to centralize the stores requirements, deliver relevant information for the implementation of sales and raise evidence in the stores, achieving an on time execution of promotional activities. By accomplishing this, you can increase the productivity of your teams and achieve visibility of the stores execution.
Do you want to achieve a perfect store execution?