In the face of increased completion, Italy’s Mellin—part of Danone Baby Nutrition—needed help with developing a common strategy and structured approach for making successful and profitable store merchandising decisions.
Working with Accenture on a pilot program using the Accenture CAS Digital Merchandising Service, Mellin has improved the monitoring of its shelf assortment and achieved an improved presence and placement of it products on the shelves of the point-of-service (POS) locations in Northern Italy involved in the pilot program.
In recent years, competition in the market for baby food has intensified and the price premium for brand products has eroded. In addition, supermarkets continue to have a strong influence in the fight for shelf space. Having sufficient shelf space is critical for companies like Mellin since at least 50 percent of consumers’ purchasing decisions happen while looking at products on the store shelves.
The key challenge for companies focused on the food market is how to reach operational excellence while meeting the needs of consumers and building strong retail partnerships. Therefore, food products companies must have the right products per category on supermarket shelves.
Mellin determined it needed help with developing a common strategy and structured approach for obtaining the data required to make successful and profitable store merchandising decisions.
Working together at the Accenture Delivery Center in Milan, Italy, Mellin and Accenture conducted a pilot program featuring the Accenture CAS Digital Merchandising Service at roughly 100 POS locations in Northern Italy.
With the Accenture CAS Digital Merchandising Service, the team captures the retail shelf with photographs using a smart phone. These pictures are automatically sent to the cloud to be processed and translated into actionable information.
This innovative and new technique to monitor in-store quality and compliance is enabled by mobility software, market analytics and Accenture’s unique proprietary algorithms.
This successful pilot, completed in July 2011, has introduced a new paperless and automated in-store process that captures full realogram details—providing insights into in-store performance and corrective actions needed.
With the Accenture CAS Digital Merchandising Service, the client will be able to define and maintain its shelf space in terms of:
Quality of Layout
To date, the total average data collection time has decreased by roughly 40 percent—which is consistently faster than Mellin’s former merchandising solution. Mellin is in a position to keep its shelf space well organized, well monitored and to increase sales by creating an optimal visual and commercial product placement.