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Kellogg’s Enhances Latest Product Shelving Innovation with Virtual Reality Technology

Qualcomm and Accenture have partnered to create a VR solution featuring embedded eye-tracking to enable Kellogg’s in implementing shelving concepts of its new products. The technology was utilised by Kellogg’s to discover that shelving its Pop-Tart Bites on lower shelves would reduce sales by as much as 20 percent.

The idea of shelf management is by no means a new idea for businesses to explore. Effective management of the shelf space lets product manufacturers decide where to stock their products for best results. It is now a proven fact that placing some items strategically on the shelves can impact their sales potentials. The factors affecting shelving include sizes, colours and shapes and how a product correlates to its related products.

Products placed on designated shelf parts like the starting region may not perform good enough in terms of sales. It has to do with the fact that customers need some time for making purchase decisions. Many such observations can be made regarding the shelf placement of products and their relations to sales performance. Companies hire professionals to determine the optimal shelf placement for their products in stores.

Kellogg’s, a prominent food manufacturing company, has launched a new variety of its renowned Pop-Tarts product line recently. It is relying on Qualcomm and Accenture to create a technology-based solution to achieve optimal shelf management for its new product variant. Qualcomm is a developer of solutions including semiconductors, wireless technology, applications, and more. Accenture provides advisory services and has dynamically enhanced its marketing and design ventures recently. The partnership of these two firms has given Kellogg’s an opportunity to create a VR experience for shelf management purposes.

Accenture has created a comprehensive scenario with a simulated store, complete with consumers, depending on the real-world shelf placement and pricing evaluation requirements of Kellogg’s. The simulation scenario shows the consumers along with a simulated store which they move through. The consumers are seen picking up products, putting those in their carts and performing other shopping tasks. It is complete with an embedded eye-tracking application which offers information regarding what consumers are focusing on, and for what length of time. This offers more clarity regarding the purchasing behaviours of consumers. Kellogg’s was given the option of changing multiple scenario variables for gauging the impact of placements.

The results found that there were significant differences based on the placements of products. Pop-Tarts packages that were on the lower shelves scored higher on the scale than those that were on the higher shelves. Sales of the new product went down by 18 percent when they were placed on higher shelves. Eye-tracking data made it evident that the new Pop-Tarts Bites variant brought attention to the other products by the company on the shelves.

Jenny McDaniels, Senior Manager of Strategy at Kellogg’s, said that the simulation methods enabled better understanding on part of the organisation. She emphasised that the company continues to be interested in the future of category-wide buying behaviours.

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