Whitepaper Catch The Eye Screenplacement

© 2009 CatchTheEye AS

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Whitepaper

Screen placement in a Retail environment


How to place screens in stores

in a profitable way?

Q


How screens make money

1. Strengthen Sales Promotion by• Increasing volume

• Increasing trial

• Increasing repeat purchase

• Increasing loyalty

• Widening usage

• Creating interest

• Deflecting interest from price

• Restoring brand perception

• Retaining brand perception

2. Increase Joint Marketing revenue

3. New advertising income


CatchTheEye Key Performance Index

1. Screen placement

2. Editorial content

3. Broadcasting schedule

4. Creative solutions

5. Official coverage figures

within OOH Digital media

distribution

6. Official rating figures for

targeted audience


Knowledge and experienced in business models

and legal papers to sell advertising space within a

brand-named environment

CatchTheEye research

• R&D to identify how to launch screens within a brand-named store in a profitable way

• R&D to convert a visitor into GRP or CRP “Customer Rating Points”

• R&D to calculate advertising revenue potential and strategies within a single- or multi narrowcasting network


Case Study

This presentation describes the results for a retail chain

with more than 600 outlets in Scandinavia.

Key findings is not valid and generalized for

supermarkets as a whole.

A pilot is necessary to identify key numbers for each

individual distribution network regarding placement of

screens.


“Placement of screens and investments

must be profitable and measurable

based upon site-owners core business”

Specific | Measurable | Agreed | Reasonable | Time bound


Our pilot is conducted to identify a reasonable start

point regarding investment level based on

consumer impact to justify an

investment within the distribution based upon

sales increase alone, though

prepared for further hardware investments

according to market growth.


To mould an original

A prerequisite for the selection of

screen placement is to identify store zones and categories that

are both easily generalized and representative of the chains.

For each individual chain, we selected pilot stores that is

representative of a ”standard store” so that measurements of

the system’s impact would be representative for the average store.


Design of Experiments

Design of experiments includes the

design of all information-gathering

exercises where variation is present,

whether under the full control of the

experimenter or not.

Often the experimenter is interested in the

effect of some process or intervention

on some objects (the 'experimental

units'), which may be people. Design

of experiments is thus a discipline that

has very broad application across all

the natural and social sciences.


Research design

By setting up an appropriate research design in which we employ randomisation we are able to ensure that other unknown and random factors do not become “mixed together” with the factors that we are studying.

– Controllable factors such as the size (large or small) of the screen, its location in the store, etc., are incorporated into the trial plan.

– Systematic factors that cannot be controlled, but that we believe can influence the response (e.g., the number of customers per day) are measured and entered as parameters as part of the statistical analysis.


Research Design #2

Internal factors

– Changes in turnover/natural chain growth

– Customer news sheet

– Cut-price offers

– Promotions

– Access to advertised products

– The layout of advertised

products.

External factors– Weather

– Competitor behaviour

– Holidays

– Weekdays and weekend days.

”We know that there are various factors that influence store turnover, and we have identified and analysed these and have taken them into account as part of our analysis”


Choice of Pilot stores

• Turnover and the number of visitors

• Store area

• Geography

– Stores that are located in large towns and those that are not (urban/rural)

– Chain-specific geographical classification (e.g., high streets, shopping canters, railway stations, hospitals)

• Randomized draw


Methodology

As part of the trial plan we took account of external factors bydisplaying advertising and the chain logo on the screens every other day.

Once a fortnight we made changes to the trial plan by modifying

the screen configuration and the content displayed on the screens. In doing so we removed the uncertainty surrounding

the differences in turnover for the different week- and weekend days.

We used geographically separated “twin stores”, i.e., sets of two

stores that we analysed for the purpose of comparison in order to avoid the influence of other factors such as local

competitors’ sales, customer news sheets, advertising and such like.


Trial Plan

The Pilot project was carried out according to scientific method in general and experimental planning and variance analysis in particular.

Experimental planning is a familiar and well-documented discipline. The data that we acquired from the trials were analysed with the aid of variance analysis.


Trial Plan3 158 unique experiments over 56 days

• The trial plan was based on

one principal hypothesis and 12 sub-hypotheses.

• The principal hypothesis was

”Screen advertising in the store has a positive impact on the store’s turnover”.

• This would provide us with an

answer as to whether screens in the stores have any impact at all.

• The other hypotheses were designed to provide answers

related to which screen configuration would be the

most cost-effective during roll-out. 11On2216.01.200701.05.200714

11Off1215.01.200730.04.200713

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11Off6213.01.200728.04.200711

11On5212.01.200727.04.200710

11Off4211.01.200726.04.20079

11On3210.01.200725.04.20078

11Off2109.01.200724.04.20077

11On1108.01.200723.04.20076

11Off7107.01.200722.04.20075

11On6106.01.200721.04.20074

11Off5105.01.200720.04.20073

11On4104.01.200719.04.20072

11Off3103.01.200718.04.20071

Store number

Schedule

Screen status

DayWeek

Reference dateTrial DateDay


Key Findings

We have documented that screens in stores provide a significant boost for

individual products, a modest boost for product categories and a

satisfactory boost for the store’s overall turnover.

Out of 9 identified zones we found 4 giving positive results.

Out of 19 screens we identified 5 representing more than 95% of the results

Out of 3 screen formats we found 1 giving the best results

Out of 30 product categories we found 8 representing more than

90% of the results


Customer Impact within a 99% significance level!

Classified (%)Total customer impact

73 screens, #”Checkout

63 screens, #”Shelf screens 2

72 screens, #”Shelf screens 1

31 screen, #”Beer and soft drinks

21 screen, #”Aisle after dairy products

51 screen, #”Dairy products

41 screen, #”Refrigerated goods

71 screen, #”Soft drinks (1/2 l) at

refrigeration counter

11 screen, #”Entrance

Range

Change in

turnover

Screen systemStore zone


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Whitepaper Catch The Eye Screenplacement

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