Co-operatives’ Award Winning Website

2008 saw the launch of the award winning The Co-operative Media website.  This innovative site enables third party suppliers and affinity partners of The Co-operative to interrogate media communication channels and plan a marketing campaign online. Co-operative’s Head of Commercial Marketing, Susan Beetlestone, made it her mission to create a site that was easy to navigate but also gave suppliers a clear understanding of the return on investment for all retail media.  As a bonus, the site also calculates the “multiplier” effect of advertising a product in multiple channels; a metric that the industry has never had access to before.

The Rise of Retail Media

But first things first, what is Retail Media?  Traditionally, it was thought that a header board or barker card was the first and last word in retail media, but that was then and this is now!
At The Co-operative group they recognise many different forms of media; till screens, magazine adverts, mail outs, in-store radio, the list goes on, each one a piece of retail media to be utilised to best effect.  In this initiative, The Co-operative has provided many innovative ways for a forward thinking manufacturer to get their message out to shoppers.

So how does it work?  The website is available to all suppliers to The Co-operative and allows them to plan their media spend on-line, providing a “one stop shop” for Retail Media.  The site boasts numerous media channels across The Co-operative’s broad portfolio of businesses, from Food to Pharmacy, Travel to Electrical. This is a very powerful concept when you consider that The Co-operative Group has the largest digital screen network in Europe, with their till screens being seen by 17 million customers every week.  Couple that with 1.9 million members receiving a copy of the membership magazine last November (compared with 135,000 receiving BBC Good Homes) and you can understand why, for a supplier investing in The Co-operative, media is guaranteed to bring returns.

When the website launched 2 years ago there were 35 media items, there are now 50 and the site offers an innovative index allowing suppliers to balance their spend based on building brand awareness, enhancing consumer education and sales activation.

The site has seen a 40% increase in income year on year,  and according to a recent econometrics study, this spend has translated into £13.4m worth of incremental revenue in Co-operative Food sales over the last two years. The site provides its users with a budget calibrator and an ROI calculator.  These features allow their suppliers to work out what return they are likely to get from their activities and how much they would need to spend.  This has resulted in suppliers buying more multi-channel media because they can predict the financial return and the in-store impact it’s going to generate.

Another benefit of the site is that The Co-operatives labour costs are kept to a minimum whilst maintaining a consistent offer to their suppliers.

Communicating the Opportunity using Virtual Reality

One issue that The Co-operative needed to address was bringing to life all of the channels within the website.  Susan Beetlestone says “When the issue of communicating the channels came up, I knew exactly who to call.  Fifth Dimension had created a number of virtual reality movies showing how our store refits were going to look and I was sure they’d be able to help.  Fifth Dimension created four virtual reality movies that are accessed via the site.  Each movie shows a channel and the various media items that are available.”

Retail Media Case Study

As an illustration, an overview of one of the many successful case studies on the site has been reproduced below.

Co-operative Food (Discovery Foods) – (Booked June 2008) – Campaign active in August 2008 (Revolutionise your chicken)

Length of campaign: The radio campaign ran for 3 weeks

Campaign exposure level: The media campaign ran in 2259 stores

Brief overview of the campaign:

• To drive sales of Discovery’s Fajitas which will be on promotion and to direct the customer to the Mexican food section of the International Food aisle.
• It will also, for example, encourage customers to try salsa sauce and guacamole with their tortillas.
• The goal is that once they have tried the product they will make repeat purchases.

Chosen no. media hosts engaged: 1, The Co-operative Food

Chosen mix of channels: 2, Shelf talker and radio advert

Brief overview of the methodology used in researching this case study:

• We use 514 Co-operative stores which do not have radio (control stores) to measure the effect of the media campaign. (For the purpose of this campaign, Shelf Barkers are present throughout all stores).
• Sales from the campaign and control stores are indexed over the period, and the sales % uplifts compared.
• The only difference between the 2 sets of stores is that the Campaign stores heard the ad, and the control stores did not. Therefore the effects of other variables (i.e. seasonality, other promotions etc) are removed.

Brief overview of the observed results:

Analysis of the control stores indicated the radio campaign was responsible for a 20.1% sales uplift during the campaign

• Units
• Sales within the International Cuisine – Americas Food category grew by 204.3% during the Campaign period, The Discovery Foods range sales grew by 221.2% during the campaign.
• The Discovery Foods range category share grew in the Co-op from an average of 79.7% before the campaign to 84.1% during the campaign.

• Value
• Sales within the International Cuisine – Americas Food category grew by 106.4% during the Campaign period, The Discovery Foods range sales grew by 111.5% during the campaign.
• The Discovery Foods range category share grew in the Co-op from an average of 81.5% before the campaign to 83.5% during the campaign.

Gold Award Winner

The success of the site seems to continue and in June, The Co-operative Media won the 2009 Grocer Gold Awards Business Initiative of the Year award.

Susan Beetlestone said “This initiative is proving extremely successful, not only in terms of the number of different brands engaged with the website but also in relation to the range of opportunities and high levels of service that they receive. I am delighted that this achievement has been recognised with a Grocer Gold Award, which is a tribute to the media team, headed by Rachel Bartfield, who have worked so hard to get this project off to such a flying start.”

The media centre is living proof that The Co-operative isn’t just “good with food”

Links

http://news.coop/news/Retail%20Societies/1390

http://www.retail-week.com/technology/sign-of-the-times-digital-signage/5006613.article

http://www.co-operative.coop/food/whats-hot/Our-latest-news/Co-operative-double-at-grocer-gold-awards/

http://www.manchestereveningnews.co.uk/news/business/s/1058263_coop_offers_media_services

http://www.marketingmagazine.co.uk/news/830240/Media-Co-op-launches-media-planning-hub

http://www.how-do.co.uk/north-west-media-news/other-media/co%11op-media-centre-investment-pays-off-200811244093/

http://www.marketingweek.co.uk/news/co-op-media-centre-to-offer-ads-on-cashpoints/3001973.article

How important is it to make the most of seasonal displays?  One of our clients found that gift packs of their products consistently found uplifts of 74% when placed in the seasonal aisle.

We at Fifth Dimension have helped many retailers with their seasonal displays.  This help usually comes in three forms: visualising and refining the displays as they go through design revisions; researching the impact of the proposed design: and communicating the results to the stores themselves, usually through DVD’s, online training materials and printed guides.

Throughout, the secrets to seasonal implementation success are clear:

• keep the stores on top of what they need to implement
• give them clear guidance for the short duration of this seasonal implementation
• ensure stores understand the value of what they are doing
• ensure stock supply to store is plentiful during these high sales periods
• ensure on shelf stock replenishment is timely and all store dressing is maintained throughout the duration of the promotion.

Most manufacturers and retailers are already knee deep in Christmas planning, with the smart few already having all of this in the bag.  The truth is that we at Fifth have in the past worked on Christmas implementation materials as late as September, with our client still designing their strategy even at this late stage!

More and more often, suppliers are being asked to drive part or all of these seasonal displays, not just Christmas, and this includes defining the range, designing the look and ensuring the correct implementation.  We find that our consumer research, range analysis and micro space planning services help our customers to gain the knowledge and retailer focus to define range and content, while our Visual Communications team facilitate the development of the look and feel and create the materials to ensure top notch, accurate implementation.

Different Approaches – Retailers and Suppliers

It’s noticeable that suppliers and retailers approach Christmas seasonal implementation in two different ways and both could learn something from each other.  Retailers usually opt for implementation training movies.  These are very detailed, listing exact code names for the components and hardware, and showing precisely how items are to be constructed and where items are to be placed.  The objective is perfect implementation for this extremely important time and nothing is left to chance.

Manufacturer movies however are usually more general.  They focus on the overall vision and less on the detail of the implementation.  What these movies do very well however, is focus on the possible financial uplifts of correct implementation of certain tactics.  This comes out of the need to persuade the retailer to take on their ideas, and for the supplier to financially justify their vision.

Our job at Fifth Dimension is to add more of the financial why to retailer staff implementation movies, to empower the store staff to understand the financial impact of correctly implemented and maintained seasonal displays, and the cost of poor compliance. If store staff understand the financial importance of keeping displays fully stocked and pristine, their display has a far greater chance of being compliant throughout the phases of the season.

For manufacturers, our job is also to add our implementation experience and advice to ensure that the manufacturer has considered the practicalities of the seasonal display.  How easy is it to implement?  What maintenance is required?  When should it be revised or enhanced, and what specific pieces of kit are needed? Without this detail, supplier visions may lack implementation buy-in from the retailer and the store.

Virtual Collaboration

Clothing retailers have greater issues, where the point of sale materials and seasonal dressing must complement the styles and fashions or stories for that year.  Often the content of our movies will shift and develop as the plans are being shaped, with the delivery movies acting as instore design reviews for windows, atriums, escalators, counters and fixtures.

This is where online or real-time store visualisations can help seasonal planners. The digital environment can be updated as the designs are progressing and stakeholders can collaborate virtually on the evolution of the design.  This can go through many changes in collaboration with design departments, but by coming back to the store visualisation, a real world implementation sensibility is always uppermost.

Seeing everything in context answers the question of whether designs work in store, and any amendments can be updated quickly and shared with all decision makers, regardless of their location.  At any stage, this can be tested by select members of the public through Virtual Consumer Research, ensuring that the most effective display package is selected for these vital trading periods.

Often these visualisations are merely the vanguard of a series of communication mechanisms.  After setting the tone and introducing the vision, clothing retailers will often follow up with specific implementation guidance for each business unit for that season, either with printed brochures or via internal intranet portals.  There really is no excuse for poor compliance, especially using the process of:

• Virtually shaping the instore seasonal design
• Refining designs collaboratively with all stakeholders
• Validating the display effectiveness with focus groups while still maintaining secrecy and confidentiality
• Issuing engaging content to the store, while maintaining clear communication of how the fixtures change and evolve during the lifecycle of the seasonal promotion period

So as Spring begins, have a Merry Virtual Christmas and a Happily Compliant New Year!

Let us know your experiences with Seasonal Displays from retailer and supplier viewpoints.  How easy is it to get instore compliance?  How close is the implementation to your original vision?  What one issue about seasonal displays would you LOVE to see solved?

See our other blog Insights In Retail for our views on how new technologies can reshape category management, space optimisation and consumer research.

Visit our website and follow us on Twitter to stay informed on how we are providing companies with excellence from concept to in-store execution.

Keeping a retail store looking spic and span is one of the most important tasks for managers and merchandisers.  Yet with faster turnover, store specific planograms and 24 hour shopping, there is more opportunity for standards to slip, just when they need to be at their highest.  However, by taking a few simple steps, display specialists and store managers can ensure that their store looks as good as the day the displays were first implemented.  The key to a great customer experience is making sure these steps are communicated swiftly and clearly to replenishment staff in store. But what is the most effective communication method to achieve compliance?

Visual Communication Improves In-Store Compliance

This is the challenge that we at Fifth Dimension set ourselves, and it’s a challenge we especially enjoy.  We suggest that the most effective way to communicate excellence to replenishment staff is through a short impactful movie, which can be shown at training sessions and breaks to outline how basic everyday housekeeping can lead to a smart, contemporary shopping experience, even in fast moving, high traffic environments.  These movies can be hosted online, used as part of an e-learning suite, used as an induction tool, and appeal to all ages of staff.  Visual stimulus is also ideal for communicating principles to a workforce of different nationalities and who speak different languages.  As a format, they are fun, engaging and memorable.  They work!

Movies as a Training and Change Agent

To showcase this for a retailer, we put together a movie demonstrating how we would typically present these simple steps. Based in a convenience store, the movie starts off with real life photographs showing the type of problems store managers face everyday in keeping the store tidy and the customer engaged.  All of these problems contribute to a cluttered and messy store.  The movie then highlights the 10 steps we suggest stores can use to improve the in store execution and customer experience.  Some are low cost, some are basic housekeeping, and some propose a rebrand of point of sale materials in a smarter, more elegant style, but all of them contribute to raising the impression of the store, and the experience and expectations of the consumer.  Play the movie to see the 10 steps and a couple of extra strategic investments you can make to your store to bring a premium shopping feel to a convenience environment.

From Concept to In-Store Execution

In the rush to convey price led messaging, the real cost to the store can be lack of clarity of the offer itself, confusion at the point of sale, and poor customer reaction to the shopping environment.  Using techniques like best practice movies, training documents and merchandising manuals, we can provide a key step in achieving excellence from concept to in-store execution.

See our other blog Insights In Retail for our views on how new technologies can reshape category management, space optimisation and consumer research.

Visit our website and follow us on Twitter to stay informed on how we are providing companies with excellence from concept to in-store execution.

This image comes from a series of renders created form a Virtual Store built for House of Fraser by Fifth Dimension to illustrate their visual merchandising themes for the Christmas 2008 season.

Wilkinson recently commissioned Fifth Dimension to help them with the launch of their new Home Living range. They had re-branded the range with a more modern design and to implement it they had developed new display equipment which included a bedding display, home accessories, curtain displays, carpet plinths etc., all of which were unfamiliar to the store staff.

Wilkinson’s Store Compliance Goals

To ensure a effective roll-out to each of the stores in the portfolio, Wilkinson asked Fifth Dimension to create new Store Briefing Packs to show the store staff in a highly visual way, how to most effectively implement the new range. Wilkinson’s goal was to achieve the highest levels of compliance and so create the best possible consistent presentation of the new range in each store.

Animated Briefing Packs created from a Virtual Store

We created a Virtual Store for them from which we created multiple animations describing how to implement the new equipment, how to “dress” the product on each type of fixture and how to maintain the display each day.

The animated Store Briefing Packs were delivered as a DVD and were presented to all store managers at their recent staff conference. Each manager received copies of the Briefing Pack and used the presentations to train their local staff. Wilkinson is a UK retailer with 320 stores sited from Newcastle to Plymouth.

In-Store Marketing, Promotions and Point of Sale Treatments for Kentucky Fried Chicken

The computer simulation of virtual shopping environments is reaching new levels of realism. Photo-realistic presentations can now be created which are virtually indistinguishable from reality. This image is taken from a virtual store environment simulated by Fifth Dimension to illustrate how a new merchandising display concept would impact the presentation of cell phones in-store for a new high street store format.

Product Displays In Store – The Moment of Truth

Merchandising products in a compelling and efficient way extends, of course, far beyond the confines of Grocery. Electronic products evolve rapidly and have massive marketing budgets behind each product’s launch. Without effective in-store merchandising, that marketing campaign, which encourages shoppers to visit the stores, will be wasted if, at the moment of truth, the product isn’t available or cannot easily be found in-store, or when found is poorly presented and does not reinforce the customer’s desire to own it.

Merchandising Virtual Products in a Virtual Store

One of the ways in which merchandising practice can be optimised for large price ticket, high value items is to use Virtual Store simulations to see what works most effectively, without disrupting a real store. The image above shows one such example. Here the computer and laptop sections of an electronics retailer have been created in a virtual store to determine how the product should best be displayed and on what kinds of fixtures, using which color schemes. Not something that could be done easily in a real store, or even a mock retail environment.

Concentrated Product – Packaging Reduction – Positive Environmental Impact

Consumers have become more environmentally conscious. One of the ways in which Unilever has responded to this challenge is by developing products that are kinder to the environment, use less packaging, are easier to carry and which take up less space in the home. Their products Persil and Surf Small and Mighty are a prime example. They reformulated them so that they could be more concentrated without loss of cleaning power. This meant that the product could be packaged in relatively small bottles, reducing the amount and cost of packaging, transportation costs and fuel usage. Compared to their diluted competitor products, Small and Mighty use 40% less packaging, which reduces the amount of plastic that’s manufactured which, in turn, has a positive impact on the environment.

Virtual Products in a Virtual Aisle Shopper Marketing Test

Before Small and Mighty was launched, Unilever commissioned Fifth Dimension to help them determine the most effective way to merchandise the new range in retail stores. We created a Virtual Aisle for the Detergent category and conducted a research project, the insights from which enabled Unilever to successfully launch the product in the UK. This image shows some of the three-dimensional product which was built for the Virtual Store test.

Communicating In-Store Marketing Using Computer Simulation

This promotional End-Cap display was created in-store using a hand held camera to capture the context of the Best Buy store as well as all the products on the proposed display. These images were then used in Fifth Dimension’s Virtual Shelf software to render this computer simulated merchandise display. The entire exercise took just thirty minutes to complete, showing that it’s possible to rapidly capture any in-store situation, re-plan the merchandise display with new product, rapidly render the scene on a laptop and quickly give the in-store associates a visual instruction of how to implement the changes.