A description of our methodology - How to implement screen comunication in a profitable way. This methodology is supported by Inovation Norway.

1. How implement screens communication
in a profitable way
Description of the
CatchTheEye methodology
Table of contents
1 Summary ........................................................................................................ 2
2 Screen placements ........................................................................................ 2
2.1 Predefined store zones ........................................................................................................................ 3
2.2 Trial plan for pilot................................................................................................................................ 3
3 Technical system solution ........................................................................... 6
4 Communicating effectively ................................................................... 6
5 Level of investment and operations ............................................................ 7
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2. 1 SUMMARY
The intention of the method is to identify a profitable way to implement screen communication.
Using this method it will be possible to document that screens communication in stores provides a
significant boost for individual products, a modest boost for product categories and a satisfactory
boost for the store’s overall turnover. And, possibly, a satisfactory improvement in returns
sufficient to justify the investment.
The method is based on conducting a pilot, and using the findings of the Pilot, the method can
anticipate an annual growth in the store turnover. Presupposes that the screens are placed in
predefined zones, with a predefined screen configuration and displaying advertising for those
product categories that provide the greatest sales growth at chain level.
Further, it will be possible to predict commercial assessment that indicates the total increase in
turnover for the chains, achieved through the creation of viewer profiles, the preparation of
relevant content and an improved display sequence.
In our methodology we have based evaluations solely on increased franchise revenues resulting
from increased store turnover, but the method can be suited to base the evaluations on other
elements.
The pilot results does not take into account the additional value of the growth in sales for the store
managers, the sale of more profitable products, increased revenues from suppliers, the value of a
reinforced chain image, enhanced campaign implementation or other price and product-related
factors linked to the advantages of large scale store management.
In our calculations, the costs linked to a comprehensive structuring during roll-out and operation
of the system will be taken into account if wanted.
The pilot will tell if the total annual operational costs and the investments can be justified solely
based on an increase in franchise revenues for the chain, and justify the investment.
2 S C R EEN PLAC EMEN T S
During the Pilot we will try to identify significant correlations between (1) the location of the
screens within the stores (store zones), (2) the choice of screen system (size/number) and (3)
the product categories advertised.
By means of the implementation of all the different trials we will identify the combination that
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3. provides the greatest positive impact on the joint retail turnover for the chain.
2.1 PREDEFINED STORE ZONES
A prerequisite for the selection of screen placement is to identify store zones and categories that
are both easily generalised and representative of the chains. We will have to select pilot stores that
are representative of a ”standard store” so that measurements of the system’s impact would be
representative for the average store.
2.1.1 Generalising the stores based on store zones
We will have to identify common factors related to the store zones in the chain, such as a
standardised product location guide or similar, that results in identifying the similarities in the
stores layout.
Further we will use the chains product location guide to divide the store into a number of
different store zones. The zones have to be located in relation to specific goods categories which
we want to test, including a final zone located in a peripheral area characterised by products that do
not generally fill the typical everyday shopping trolley ("monthly products").
2.1.2 ”Cold” and ”hot” store zones
If the chains want to, we will be able to state a hypothesis regarding that customers in the store
primarily adhere to one of two circuits; the “big circuit” and the “small circuit”. This means that
we will be able to identify if the hot zones are located within both circuits, and are linked
principally to the goods categories "Fruit and vegetables", "Dairy products” and “Refrigerated
goods”, in addition to other locations where products are found that have a high purchase
frequency, e.g., dinner items. Correspondingly, if the ”cold zones” are found in areas where
products that have a low purchase frequency are located.
2.1.3 Impact of a screen in the different store zones.
The method will make us identifying the specific level of impact of screen advertising among
all the different store zones, and the different screens within them.
2.2 .TRIAL PLAN FOR PILOT
For the Pilot period, we will choose 4 stores that are representative of the average stores in each
chain.
2.2.1 Choice of Pilot stores.
In order to identify the correct Pilot stores we will carry out a designed analyse to find out what
characterised the average store for the chain. Our starting point is to select Pilot stores from those
categories that have the most stores.
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4. In selecting the Pilot stores, we will use the following criteria:
–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 centres, railway stations,
hospitals)
Based on these criteria’s, we will select the four pilot stores.
2.2.2 Trial plan – hypotheses and method
The trial plan will be based on one principal hypothesis and a number of sub-hypotheses. An
example of a principal hypothesis is ”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 will be designed to provide answers related to which
screen configuration would be the most cost-effective during roll-out.
The Pilot project will be 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 will be analysed with the aid
of variance analysis.
2.2.4 Methodology for the detection of departures that influence the trial data.
We know that there are various factors that influence store turnover, and we will identify and
analyse these and taken them into account as part of our analysis.
− External factors
− Weather, competitor behaviour, holidays, weekdays and weekend days.
− Internal factors
− Changes in turnover/natural chain growth, customer news sheet, cut-price offers,
promotions, access to advertised products and the layout of advertised products.
As part of experimental planning, we will use technicians who are specially employed to ensure that
the impact of the factors we want to study can be isolated from unknown or random factors:
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5. − Controllable factors such as the size (large or small) of the screen, its location in the store,
etc., will be 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) will be measured and entered as
parameters as part of the statistical analysis.
− By setting up an appropriate research design in which we employ randomisation we will be
able to ensure that other unknown and random factors do not become “mixed together”
with the factors that we are studying.
As part of the trial plan we will take account of external factors by displaying advertising and the
chain logo on the screens every other day. Once a fortnight we will make changes to the trial plan
by modifying the screen configuration and the content displayed on the screens. In doing so we
will remove the uncertainty surrounding the difference in turnover for the different week- and
weekend days. We will also use geographically separated twin stores, i.e., sets of two stores
that we will analyse 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.
In order to test all the variables during the Pilot, we will determine how long the pilot will have
to last. It is important to make sure that holiday periods such as Christmas, summer and
Easter doesn’t influence the trial.
In order to ensure that the trial plan is adhered to, each store manager will have the
responsibility for completing a report form. This form will have the following control fields:
- Do all the screens work?
- Are the screens set up correctly according to the trial plan?
- Do the screens display the correct product advertising?
- Does the shop stock sufficient amounts of the advertised product?
This form will be checked on a daily basis and any departures will be rectified.
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6. 3 T EC H N ICAL S YS T EM S O LUT IO NS
It is essential to base the calculations on a potential technical solution based on the identified size
and amount of screens etc. This is to have numbers on expected investments and operational
costs to calculate the Return of investment.
Elements that will influence the investment and operation are e.g.:
- Implementation of the system as part of the existing central operations system
- External or internal technical operation
- The use of existing infrastructure in the shops
- Service level agreement
4 C O MMU N IC AT IN G E FFEC T IV EL Y
In the pilot, communication from the screens will take no account of the customer’s identity
(demographics), or the customer’s interests, needs and shopping behaviour when in the store.
In order to exclude differences in advertising impact (was it “good or bad”?), all advertising will
have to be produced to be “equally tiresome” with identical layout and colours, and simply
consist of a picture of the product together with its price. Each screen will have to display this
advertising message exclusively, and without variation, as part of a 30-second loop, each day for a
14– day period. This form of advertising allows us to measure which store zones, screen
numbers and sizes, and product categories resulting in the greatest impact. In spite of these
restrictions we will most possible get the scientific evidence that allows us to state with 99%
certainty that even this type of advertising provides significantly higher store turnover.
Impact
Viewer profile, relevant Anticipated
content and display
Store Screen system Product sequence operational
zones Categories result
Result from
Pilot
Instrument
After a rollout it’s recommended to continue the monitoring and analysing, and adapt the screen
content as the chains and their customers dictate. Important instruments regarding this are as
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7. follows:
• Viewer profile – Who are the customers?
• Relevant content – What are these customers interested in?
• Display sequence – When and how often shall this be communicated from the screens?
The impact of these instruments can be evaluated in the pilot or in an isolated pilot during for
example the rollout, alternatively as a dynamic process in chosen lab-shops during ordinary
operation.
6 LEVEL OF INVESTMENT AND OPERATIONS
Using the methodology during the pilot, we will identify the chains positive result solely on the
basis of the identified growth in turnover. This will be based on the setting up and operation
of the identified optimal numbers of screens in all stores.
6.4.1 Chain revenues
Revenues will be calculated based on increases in turnover observed during the pilot. We will
calculate revenue based on the chain’s franchise revenue (or other elements wanted by the
chain) as a result of increased turnover.
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