whitepaper catch the eye screenplacement
TRANSCRIPT
© 2009 CatchTheEye AS
All rights reserved. Passing or copying of this document, use or communication of its contents is not permitted without written authorization.
Whitepaper
Screen placement in a Retail environment
© 2009 CatchTheEye AS
How to place screens in stores
in a profitable way?
Q
© 2009 CatchTheEye AS
How screens make money
1. Strengthen Sales Promotion by• Increasing volume
• Increasing trial
• Increasing repeat purchase
• Increasing loyalty
• Widening usage
• Creating interest
• Deflecting interest from price
• Restoring brand perception
• Retaining brand perception
2. Increase Joint Marketing revenue
3. New advertising income
© 2009 CatchTheEye AS
CatchTheEye Key Performance Index
1. Screen placement
2. Editorial content
3. Broadcasting schedule
4. Creative solutions
5. Official coverage figures
within OOH Digital media
distribution
6. Official rating figures for
targeted audience
© 2009 CatchTheEye AS
Knowledge and experienced in business models
and legal papers to sell advertising space within a
brand-named environment
CatchTheEye research
• R&D to identify how to launch screens within a brand-named store in a profitable way
• R&D to convert a visitor into GRP or CRP “Customer Rating Points”
• R&D to calculate advertising revenue potential and strategies within a single- or multi narrowcasting network
© 2009 CatchTheEye AS
Case Study
This presentation describes the results for a retail chain
with more than 600 outlets in Scandinavia.
Key findings is not valid and generalized for
supermarkets as a whole.
A pilot is necessary to identify key numbers for each
individual distribution network regarding placement of
screens.
© 2009 CatchTheEye AS
“Placement of screens and investments
must be profitable and measurable
based upon site-owners core business”
Specific | Measurable | Agreed | Reasonable | Time bound
© 2009 CatchTheEye AS
Our pilot is conducted to identify a reasonable start
point regarding investment level based on
consumer impact to justify an
investment within the distribution based upon
sales increase alone, though
prepared for further hardware investments
according to market growth.
© 2009 CatchTheEye AS
To mould an original
A prerequisite for the selection of
screen placement is to identify store zones and categories that
are both easily generalized and representative of the chains.
For each individual chain, we selected pilot stores that is
representative of a ”standard store” so that measurements of
the system’s impact would be representative for the average store.
© 2009 CatchTheEye AS
Design of Experiments
Design of experiments includes the
design of all information-gathering
exercises where variation is present,
whether under the full control of the
experimenter or not.
Often the experimenter is interested in the
effect of some process or intervention
on some objects (the 'experimental
units'), which may be people. Design
of experiments is thus a discipline that
has very broad application across all
the natural and social sciences.
© 2009 CatchTheEye AS
Research design
By setting up an appropriate research design in which we employ randomisation we are able to ensure that other unknown and random factors do not become “mixed together” with the factors that we are studying.
– Controllable factors such as the size (large or small) of the screen, its location in the store, etc., are incorporated into the trial plan.
– Systematic factors that cannot be controlled, but that we believe can influence the response (e.g., the number of customers per day) are measured and entered as parameters as part of the statistical analysis.
© 2009 CatchTheEye AS
Research Design #2
Internal factors
– Changes in turnover/natural chain growth
– Customer news sheet
– Cut-price offers
– Promotions
– Access to advertised products
– The layout of advertised
products.
External factors– Weather
– Competitor behaviour
– Holidays
– Weekdays and weekend days.
”We know that there are various factors that influence store turnover, and we have identified and analysed these and have taken them into account as part of our analysis”
© 2009 CatchTheEye AS
Choice of Pilot stores
• Turnover and the number of visitors
• Store area
• Geography
– Stores that are located in large towns and those that are not (urban/rural)
– Chain-specific geographical classification (e.g., high streets, shopping canters, railway stations, hospitals)
• Randomized draw
© 2009 CatchTheEye AS
Methodology
As part of the trial plan we took account of external factors bydisplaying advertising and the chain logo on the screens every other day.
Once a fortnight we made changes to the trial plan by modifying
the screen configuration and the content displayed on the screens. In doing so we removed the uncertainty surrounding
the differences in turnover for the different week- and weekend days.
We used geographically separated “twin stores”, i.e., sets of two
stores that we analysed for the purpose of comparison in order to avoid the influence of other factors such as local
competitors’ sales, customer news sheets, advertising and such like.
© 2009 CatchTheEye AS
Trial Plan
The Pilot project was carried out according to scientific method in general and experimental planning and variance analysis in particular.
Experimental planning is a familiar and well-documented discipline. The data that we acquired from the trials were analysed with the aid of variance analysis.
© 2009 CatchTheEye AS
Trial Plan3 158 unique experiments over 56 days
• The trial plan was based on
one principal hypothesis and 12 sub-hypotheses.
• The principal hypothesis was
”Screen advertising in the store has a positive impact on the store’s turnover”.
• This would provide us with an
answer as to whether screens in the stores have any impact at all.
• The other hypotheses were designed to provide answers
related to which screen configuration would be the
most cost-effective during roll-out. 11On2216.01.200701.05.200714
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11Off5105.01.200720.04.20073
11On4104.01.200719.04.20072
11Off3103.01.200718.04.20071
Store number
Schedule
Screen status
DayWeek
Reference dateTrial DateDay
© 2009 CatchTheEye AS
Key Findings
We have documented that screens in stores provide a significant boost for
individual products, a modest boost for product categories and a
satisfactory boost for the store’s overall turnover.
Out of 9 identified zones we found 4 giving positive results.
Out of 19 screens we identified 5 representing more than 95% of the results
Out of 3 screen formats we found 1 giving the best results
Out of 30 product categories we found 8 representing more than
90% of the results
© 2009 CatchTheEye AS
Customer Impact within a 99% significance level!
Classified (%)Total customer impact
73 screens, #”Checkout
63 screens, #”Shelf screens 2
72 screens, #”Shelf screens 1
31 screen, #”Beer and soft drinks
21 screen, #”Aisle after dairy products
51 screen, #”Dairy products
41 screen, #”Refrigerated goods
71 screen, #”Soft drinks (1/2 l) at
refrigeration counter
11 screen, #”Entrance
Range
Change in
turnover
Screen systemStore zone
© 2009 CatchTheEye AS
All rights reserved. Passing or copying of this document, use or communication of its contents is not permitted without written authorization.
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