Frozen Food Industry - Case Study

Take a look at how we improved brand representation in-store.
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We provided a full merchandising program for this client.

Client Challenge

  • Ensuring that stock is constantly replenished to keep up with increasing sales. In-store staff are often too busy to replenish and tidy up displays.
  • Frequent Out of Stock in many stores requiring extra monitoring.
  • Constantly need to reinforce agreements made between the company and the retailer (eg. displaying client’s “Used-by” stickers as opposed to defaulting to generic store “Best-before” stickering)
  • Maintaining gold standard POS setup to continually promote growth.
  • Approached our business with a specific need to receive rapid communications about in-store issues, as soon as they are presented.
  • Being a small player in the FMCG market, their previous merchandising supplier did not give them the attention they needed.

Facts Service Solution

  • We manage concurrent weekly, biweekly and fortnightly merchandising programs tailored to the specific replenishment needs of individual stores.
  • Store visit frequencies are closely monitored and recommendations given to the client based on week-by-week replenishment figures (by SKU).
  • “Cost-per-unit” (average figure that determines the cost for a merchandiser to put out one unit) data is tracked and reported weekly to assist with merchandising call frequency recommendations.
  • Merchandising program structure is continually being revised to respond to new insights gathered from quantitative data reported weekly (OOS lines, replenishment units, time in store etc.).
  • Audits are conducted to provide clients with requested data (eg. registers for their date-guns).
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ROI

  • As a result of continual revisions and feedback of the merchandising program we have gradually reduced the “cost per unit” for the client. Based on our weekly data figures, this has decreased from $0.41 in early June to $0.33 in late August of this year. The client’s target is set at $0.40.
  • Since the beginning of our relationship with the client, the client has introduced additional stores into our program, resulting in replenishment figures lifting by 200% from the initial order placed, over a 5-month period.
  • Qualitatively, our merchandisers have improved brand representation in-store through regular maintenance of displays.