Having an accurate account and store-level information on fixture execution against the CMA trade contract, allowed the CPG to tighten contract compliance.

Biz question

The World’s largest salty snacks manufacturer came to us with a common challenge across CPGs especially in convenience stores. To quantify and fix their gaps with in-store fixtures/displays vs. the Customer Merchandising Agreement (CMA) contract, with some of their top customers. Without accurate data on the number of display placements they were getting at every store, our CPG customer was unable to act on the ‘contract compliance gaps’.

Solution

Our AI solution analyzed images of displays from each store, identified display type (ex: 4-way pre-packaged display), whether the right product type was on it (ex: ‘wings display’ has new innovation products), shelf share (ex: 45% shelf share for ‘under the counter’ display), and price/promotion/placement is as expected. By comparing against the ‘CMA contract’ per-store gaps were identified, and rolled-up dashboards and specific actions per store/zone/account were identified. Monthly follow-up audits are conducted to ensure gaps are closed and take proactive steps where needed.

Impact

Results showed a display compliance percentage close to 57%, leaving a large execution gap to go after. Data was used to close the gaps across store/zone/account levels by building a data-led collaboration to address the ‘reasons’ for non-compliance. The customer finance team estimated around 10x ROI from this initiative.