A well documentet study on how to place your digital comunication within a retail environment

1. Whitepaper
Screen placement in a Retail environment
© 2009 CatchTheEye AS
All rights reserved. Passing or copying of this document, use or communication of its contents is not
permitted without written authorization.

2. Q
How to place screens in stores
in a profitable way?
© 2009 CatchTheEye AS

3. 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
© 2009 CatchTheEye AS

4. 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
© 2009 CatchTheEye AS

5. 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
Knowledge and experienced in business models
and legal papers to sell advertising space within a
brand-named environment
© 2009 CatchTheEye AS

6. 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.
© 2009 CatchTheEye AS

7. “Placement of screens and investments
must be profitable and measurable
based upon site-owners core business”
Specific | Measurable | Agreed | Reasonable | Time bound
© 2009 CatchTheEye AS

8. 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.
© 2009 CatchTheEye AS

9. 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.
© 2009 CatchTheEye AS

10. 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.
© 2009 CatchTheEye AS

11. 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.
© 2009 CatchTheEye AS

12. Research Design #2
External factors Internal factors
– Weather – Changes in turnover/natural
– Competitor behaviour chain growth
– Holidays – Customer news sheet
– Weekdays and weekend days. – Cut-price offers
– Promotions
– Access to advertised products
– The layout of advertised
products.
”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”
© 2009 CatchTheEye AS

13. 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
© 2009 CatchTheEye AS

14. Methodology
As part of the trial plan we took account of external factors by
displaying 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.
© 2009 CatchTheEye AS

15. 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.
© 2009 CatchTheEye AS

16. Trial Plan
3 158 unique experiments over 56 days
• The trial plan was based on Day Trial Date Reference date Wee
k
Day Screen
status
Schedul
e
Store
number
one principal hypothesis and
1 18.04.2007 03.01.2007 1 3 Off 1 1
12 sub-hypotheses.
2 19.04.2007 04.01.2007 1 4 On 1 1
• The principal hypothesis was
3 20.04.2007 05.01.2007 1 5 Off 1 1
”Screen advertising in the store
has a positive impact on the 4 21.04.2007 06.01.2007 1 6 On 1 1
store’s turnover”. 5 22.04.2007 07.01.2007 1 7 Off 1 1
• This would provide us with an 6 23.04.2007 08.01.2007 1 1 On 1 1
answer as to whether screens 7 24.04.2007 09.01.2007 1 2 Off 1 1
in the stores have any impact 8 25.04.2007 10.01.2007 2 3 On 1 1
at all. 9 26.04.2007 11.01.2007 2 4 Off 1 1
• The other hypotheses were 10 27.04.2007 12.01.2007 2 5 On 1 1
designed to provide answers 11 28.04.2007 13.01.2007 2 6 Off 1 1
related to which screen
12 29.04.2007 14.01.2007 2 7 On 1 1
configuration would be the
most cost-effective during roll- 13 30.04.2007 15.01.2007 2 1 Off 1 1
out. 14 01.05.2007 16.01.2007 2 2 On 1 1
© 2009 CatchTheEye AS

17. 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
© 2009 CatchTheEye AS

18. Customer Impact
within a 99% significance level!
Range
Store zone Screen system Change in
turnover
Entrance 1 screen, #” 1
Soft drinks (1/2 l) at
1 screen, #” 7
refrigeration counter
Refrigerated goods 1 screen, #” 4
Dairy products 1 screen, #” 5
Aisle after dairy products 1 screen, #” 2
Beer and soft drinks 1 screen, #” 3
Shelf screens 1 2 screens, #” 7
Shelf screens 2 3 screens, #” 6
Checkout 3 screens, #” 7
Total customer impact Classified (%)
© 2009 CatchTheEye AS

19. Tor Olav Haugen | Adm. dir/ CEO
Norway:
Torvveien 5 | N -1383 Asker | Phone Norway: +47 66 90 50 18 | Mobile: +47 99 22 92 90
E-mail: torolav@CatchTheEye.no | Web: www.CatchTheEye.no
© 2009 CatchTheEye AS
All rights reserved. Passing or copying of this document, use or communication of its contents is not
permitted without written authorization.