Impact of Exposition Quality on Sale in the store

The Business Case of Coty.

Activity which has helped to increase the sales of Coty products: 20 percentage points in the Traditional Channel and 15 percentage points in the Modern Channel respectively, in addition to the organic growth of the category itself.

The 4P Principle, formulated by Philip Kotler, says that in order to be successful with your product, you should consciously manage the quality of 4 elements - Product Promo, Place and Price. Another important principle is that proper exposition, supported by appropriate POSM communication, translates into an increase in sales. However, it is rare that we can verify its correctness on a larger scale, especially when we talk about improving and expanding the exhibition, not fighting about the appearance of the product on the shelf itself.

The rule mentioned above influenced the decision of Coty which, looking for opportunities for further increases in market share, focused on Quality of Exposition.

The main challenges that have been defined in past activities are:

• Reliability of data verifying the actual quality of large-scale expositions.
• Access to display data at the level of a single SKU, selected POSM and location on a selected shelf or in the vicinity of a defined category.
• The combination of data on controlled KPIs with the exposition's photo base, generating real influence and strength of arguments, both for its Sales Department and Retail Partners.
• Linking exhibition data from individual stores and their sales data.

Photo Recognition technology, which is based on Artificial Intelligence algorithms and verifies the quality of the exposition based on the analysis of photos from the stores, is highly suitable for such projects. The PRO.Display application allows you to verify thousands of expositions in a very short time, giving customers an extensive database combining controlled KPIs, specific pictures of expositions, addressing specific stores, or those responsible for those exhibitions, all with 99% accuracy. It also turned out that, the element of Motivation building has come up for people from the Sales Department. A purely psychological mechanism - "I know that":

• the quality of my work will be verified,
• 100% of my exhibitions are verified,
• the control is repeated cyclically,
• photos help to conclude the discussion on what was actually in the store,
• the system takes into account the so-called "fair factor" because as a controlled person:
  • • I often take pictures of the exposition by myself,
    • I have an overview of each rating,
    • I can file a complaint if I disagree with the assessment.

In the following link you will find a link to the COTY business case that we presented together at Retail Summit 2017.