In the competitive landscape of FMCG, securing prime retail space is crucial. Offering branded fridges to retailers, in exchange for exclusivity or a significant share of shelf, is a common strategy to secure this space. It not only enhances brand visibility but also drives impulse purchases.
However, the crux of this strategy lies in effectively managing these assets. Without precise visibility on the location, condition, and maintenance needs of these fridges, brands risk significant financial losses and decreased return on investment.
The company in question faced just such a challenge. With severely limited visibility on its branded fridges’ placements and condition within stores, the potential for ghost assets—assets recorded in the books but missing or unused in reality—loomed large, threatening direct impacts on the company’s bottom line.
The Power of Crowdsourcing: A Refreshing Solution
Embracing a different approach, the company tapped into the potential of crowdsourcing for immediate, automated insights into asset management. Utilizing a network of shoppers spread nationwide to monitor more than 400 branded refrigeration units, the strategy afforded rapid and extensive asset verification. This method significantly outpaced traditional means, sidestepping the hefty expenses and extensive time investments that would have burdened internal teams. This approach provided a slew of benefits:
- Full Geographical Coverage: The extensive reach across convenience stores nationwide allowed for a comprehensive audit of the branded fridges in record time.
- Real-time Automated Intelligence: The rapid identification and documentation of assets by crowdsourced shoppers offered insights at a pace unachievable by traditional means.
- Opportunities Beyond Identification: Beyond merely locating assets, issues related to availability, visibility, and maintenance were flagged, enabling proactive engagement with retail partners.
Results
The results were as impactful as they were immediate:
- Cost-Effective Visibility: Crowdsourcing transformed asset mapping into a swift and cost-efficient process.
- Protected Financial Spend: With each branded asset valued at $2,500 before amortization, the strategy effectively shielded the company from substantial financial repercussions.
- Actionable Data Insights: The documentation of fridges prevented the premature write-off of over 400 assets and facilitated swift action on those needing attention.
Incorporating Broader Insights
This case underscores the critical importance of a data-driven approach to retail execution. The methodical tracking and management of in-store assets, leveraging crowdsourcing and real-time data analytics, exemplify a modern strategy for safeguarding and optimizing asset utilization. This ensures not only the physical presence of the brand within retail environments but also its financial integrity and operational efficiency.
Concluding Thoughts
This case study serves as a testament to the evolving nature of retail execution strategies within the FMCG sector. It illuminates the paths companies can embark on to overcome traditional challenges, showcasing the effectiveness of leveraging technology and crowd-sourced intelligence in tandem. As the retail landscape continues to transform, such strategies will become increasingly vital for brands aiming to maintain a competitive edge and financial health.
To learn more about the Commerce Execution Suite, contact us at intel@wiser.com or visit www.wiser.com. Here’s a PDF version of this use case.
