Earlier this year Fifth Dimension had the opportunity to co-sponsor the Next Generation Retail summit in California. It was an excellent opportunity to network with retail colleagues and understand what challenges they’re facing, especially in the current climate. Among the many one to one meetings and workshops we engaged in, the standout for me was the ‘behind the scenes’ discussion on the first evening between the CIOs and CTOs who attended. I had the opportunity to be involved and the theme that emerged was quite surprising. Almost every delegate in that discussion was concerned with the impact the the internet, [...]
Well, it’s been some time since I last settled into writing the first series of articles on this blog. Since then I, and our whole team, have been involved in many new and exciting retail initiatives, encompassing macro and micro space planning optimisation, assortment planning, virtual store research, aisle management and many innovative shopper insights projects all around the world, all of which have added enormously to our experience and breadth of retail knowledge here at Fifth Dimension. Our software development teams have also been busily building new generations of our advanced software for release this coming year, and so [...]
Visual Merchandisers Need New Planogramming Software This past two years we’ve seen traditional planogramming systems come under heavy scrutiny. These older systems were originally marketed, in the main, by data companies. This background, coupled with pressure from particularly influential clients, led to applications which were primarily optimised for analytics and overburdened with extensive but little used functionality. The net effect was software which was hard to learn and difficult to use. Today, clients have new requirements, which these older systems have difficulty in fulfilling. In our detailed surveys of both manufacturers and retailers, it emerged that they want a new [...]
Last week saw the expansion of Marks and Spencer’s Mobile ‘Food To Go’ service in Milton Keynes. It seems that the ‘new’ service has been run in pilot mode for some time in Milton Keynes and in Swindon with two mobile units in each town. According to our local man there are to be two more units regularly servicing MK offices and another sixty across the country by the end of this year. Our two M&S associates say that the service has been an ‘instant’ hit. The most popular purchase being fruit. They also carry more exotic items such as sushi, which is also very popular. What a great idea! It brings the all the convenience and quality of their packaged lunch foods right to the doorstep of your offices.
Earlier this year Wilkinson commissioned Fifth Dimension to help them with the launch of their new Home Living range, which they had re-branded with a more modern design. To implement the new range they had also developed new display equipment that included a bed, curtain displays, carpet plinths etc., all of which would be new to the store staff.
To ensure a successful roll-out to the stores, Wilkinson asked Fifth Dimension to create highly visual Store Briefing Packs to show the store staff how to implement the new range most effectively. The goal was to achieve the highest standards of compliance with the guidelines and so create the best possible presentation of the new range, consistently, in all stores.
We first created a Virtual Store from which we then created detailed animations showing how to implement the new equipment, how to “dress” the product on each type of fixture and how to maintain the display each day. [... ]
Trade Promotion – the King is dead; long live the King!? Or so some would have you believe. Trade Promotion or In-Store Marketing – The King of Prising Open the Retailers’ Iron Grip on Shelf Space – is perhaps still well and truly alive and kickin’; even in the depths of the deepest recession we’ve seen in decades. But, what if Joe Mandese’s prediction had been right in his article ‘Fast Forward: Is Mass Marketing History About To Repeat Itself?’, just over two years and a bold, ‘booming’ economy ago? Who knows what would be happening now in trade spending? [...]
The In-Store Marketing Institute recently published a comprehensive White Paper on Virtual Store simulation in marketing research. Thorough, but necessarily brief, it left out important examples of the earliest research and commercial work in this field. We summarise the White Paper’s introduction.
Then, in an attempt to fill in the gaps about the beginnings of Virtual Store based shopper behavior studies, we review Morton Heilig’s fantastic 1957 Sensorama machine, Ivan Sutherland’s ‘Ultimate Display’ and the first laboratory based ‘Virtual Shopping Simulation’, by Burke in 1992.
Finally, we look at the late 1990′s commercial research work done for PepsiCo and Procter and Gamble by Fifth Dimension, a pioneer in simulation since 1995. [...]
Through 2003 to 2005 Unilever and United Co-op Stores collaborated on designing, testing and implementing a ‘Perfect Store’ layout. Research was commissioned in response to a realization that important Shopper Missions were poorly supported by the layout of typical convenience stores.
We look at Unilever’s’ initial findings and the Virtual Store tests we conducted to understand local shoppers’ reactions to the layout changes. We discuss the insights gained, the new store layout principles developed for refurbishing the format and their subsequent implementation in the pilot store .
The pilot validated the research and proved that, after an initial sales surge, average weekly sales stabilized 8.9% up overall; average spend per customer rose by 9% and the pilot store’s gross profits increased by 9.7%. These improvements were then rolled out to more convenience stores in the Co-op portfolio with similar success. [...]
Shopping in computer simulated Virtual Stores, as a means of researching shopper behavior, is exciting a great deal of press coverage. It’s not that the technique is new, more that it’s particularly topical, given the dynamics in today’s stores.
Both Retailers and ‘Big Brand’ Manufacturers need to offer the best choice of product at the right price to an ever changing customer base – particularly difficult in today’s spatially challenged retail stores and tight profit margin constraints.
Recognizing these challenges means there will always be keen interest in better, cheaper, faster ways of understanding the most cost-effective and profitable way to innovate product assortment and implement visual merchandising changes in-store.
But can Virtual Stores accurately test Shopper Behavior? Good Question. [...]
Procter and Gamble asked us to create a new kind of Visual Merchandising tool. Codenamed ‘Mary Shelf’, the first of a new generation of Visual Merchandising software was designed and delivered by one of our top Rapid Application Development teams in May 2003, after a very challenging five month development and QA effort. At the time, P and G owned global software licenses for all the first generation shelf planning planogram tools i.e. InterCept, ProSpace, Apollo, Spaceman etc., so it seemed strange to us that they would want to build another one.
They felt that the previous generation of software had not kept pace with the more sophisticated needs of today’s visual merchandisers and that it was not capable of realistically representing new merchandising concepts, point-of-sale graphics, shelf edge labels, innovative header boards etc at the highest level of photo-realism they thought was possible. So they hired us to build it for them. [...]
Shoppers often react unpredictably when faced with new ideas and we wanted to use our expertise to build Virtual Stores to explore that behaviour – under more closely controlled conditions than those in a real store. Creating realistic, fully interactive retail environments for testing shoppers’ reactions was, though, still in its infancy in the late 1990s. So, despite our proven track record, we were still something of an unknown quantity to PepsiCo when we met in 1999 to take up their challenge.
Over the next three years we broke new ground in our collaboration with them. We pioneered an innovative Virtual Store application called ‘Discovery’, which PepsiCo successfully used to test radically new retail concepts for Drive-Through Fast Food Outlets, Convenience Stores and full sized Grocery Stores, further enhancing their reputation as thought leaders in the process. [...]
Procter and Gamble is one of the most innovative companies in the retail world and often the first to pioneer emerging technologies. We first worked with them in 1999 on a ‘proof of concept’ project which allowed them to research shoppers’ reactions to a new Mall Kiosk concept they had developed.
After that success, they commissioned us to develop an experimental ‘Virtual Store’, called ‘Spa Lore’, which was our first real opportunity to design a commercial application, purpose-built for the in-depth study of Shopper Behavior.
P&G wanted to research consumers’ potential interest in a new range of personal products. Traditional grocery outlets were rejected as inappropriate hosts for this project. Instead, they preferred the idea of an in-mall specialist store. They wanted to create a unique shopping experience; one which would educate consumers as well as offer them a relaxed atmosphere in which to explore, seek advice on and purchase the products, as part of a holistic personal ‘treatment’. [...]
