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Basics of Retail Execution and How to Get It Right Every Time
by Mansi Srivastava
For people from the FMCG industry, ‘retail execution’ is akin to breathing. But what exactly is FMCG Retail Execution?
What is FMCG Retail Execution?
FMCG retail execution is a term used for all the activities that FMCG and CPG brands carry out in-store to attract buyers and make sure they actually have something to buy. In other words, retail execution aims to put the right product on the right shelf at the right time.
Have a look at the above image. What’s the first thing that caught your attention? Is it your favourite brand or the discounts?
Consumer purchasing behaviour is mostly driven by the brand’s promotions or discounts until a customer is brand loyal. Most consumers are ready to switch their preferences if there’s a better deal.
Have a look at the image below. Products placed near the checkout counter are most likely to be viewed by customers. Customers usually take a few seconds to make the buying decision and add 1-2 extra items to their carts which leads to higher sales. By looking at this consumer psychology, an FMCG brand should always remember to place the right product in the right place with the right offers.
According to G2.com, research shows that brands lose 25% of sales annually to poor in-store retail execution practices and this is why in-store retail execution matters to brands.
How is in-store retail execution done?
In order to make the most of your Retail Execution activity, it is critically important to capture and analyse data. Can you track the 50 outlets in the city that have the highest sales of your products? Do you know which store sells more of a competitor’s products than yours? Can you see in 30 seconds which outlets have poorly merchandised displays?
Retail execution software provides you assistance with real-time planogram tracking, improved sales, increased market reach, improved promotional effectiveness, and many more.
The retail execution process runs a gamut of activities, from competitor activity tracking to retailer stock level management monitoring to providing retailer shelf placement metrics and real-time store planogram tracking.
According to shopassociation.org, “ 76% of all purchase decisions are made in-store, and 68% of all in-store purchases are impulse-driven.”
How can Bizom help FMCG and CPG brands in retail execution?
Bizom, a retail intelligence platform, has been helping FMCG brands manage their retail execution strategies. It does so by tracking competitor activities including their schemes for multi-brand outlets, ensuring store planogram effectiveness, calculating the retail share of shelves via intelligent algorithms, and checking the quality of the in-store display, promotional materials and in-store placement of products.
Bizom can make your merchandising and retail execution data-driven and intelligent by ensuring the right stocking and in-store promoter compliance with Bizom retail execution and merchandising solution.
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