Optimization of Category Assortment

Cloetta

Challenge

Cloetta was having problems with the way stores displayed its pastilles. The products are mostly sold at checkout counters, and an in-store surveillance service reported that only 11.5 percent of stores maintained those counter planograms in compliance with Cloetta’s instructions.

Retail Academics’ mission was to test lighted display cases to ensure the placement of the assortment on the competitive space in the checkout line. The purpose off the test was to measure the effect, and then provide the client with a basis for use in discussions with grocery chains and individual stores regarding planograms in the category. To succeed, it was important to increase sales and profitability, not just for Cloetta´s own brands, but for the entire category.

Solution

By installing lighted refreshment display cases in a number of test stores and in a scientific manner measuring sales, we received real facts from the store.

After the installation of display cases in the checkout line in the test stores, we used several sources to provide the client with facts anchored in reality.

The analysis consisted of:

  • Sales and transaction data
  • Shopper behaviour in sales area
  • Purchasing process through eye-tracking
  • Shopper attitudes
  • Attitudes towards brand
  • Attitudes towards assortment
  • Overall shopping experience
Results

Sales in the checkout lines increased with a average of 15 % . The sales increase did not only apply to items placed in the display case—checkout lines with display cases drove sales for the entire cash line.

The client was given actionable facts to use in negotiations, both with different grocery chains and directly with stores. In order for members of the Cloetta sales team to succeed in their negotiations with the stores, Retail Academics educated the salesforce and provided the staff with arguments based on test results.

Placing the product near the beginning of the checkout line was the most effective. The placement drew attention to the product sooner, made it easier for the shopper to navigate the checkout shelf and understand the difference between pastilles and gum, and generally increased awareness of pastilles as a category in shoppers minds.

Putting the packages in display cases made shoppers feel like there was more to choose from and enhanced the perception of quality.

Cloetta and Retail Academics won an award in Category Management, the ”Best practice award”, for the project. The anchoring in real in-store environment was one key factor.