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Shelf Ready Packaging (Retail Ready Packaging) PowerPoint PPT Presentation


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Shelf Ready Packaging (Retail Ready Packaging). CASE STUDIES. Margarine Case Study (I) Stationary Case Study Chocolate Case Study Soft Drinks Case Study Margarine Case Study (II) Pasta Case Study Diaper Case Study Canned Foods and Ham Products Case Study Bottled Beer Case Study

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Shelf Ready Packaging (Retail Ready Packaging)

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Shelf Ready Packaging (Retail Ready Packaging)

CASE STUDIES

Margarine Case Study (I)

Stationary Case Study

Chocolate Case Study

Soft Drinks Case Study

Margarine Case Study (II)

Pasta Case Study

Diaper Case Study

Canned Foods and Ham Products Case Study

Bottled Beer Case Study

Home Care Liquid Case Study

Supported by:


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i. Margarine Case Study

During 2006, Mills and ICA Norway worked collaboratively on an SRP solution for Soft Flora Light.

The objectives agreed between the Trading Partners included reduced replenishment costs and shrinkage, and increased sales through improved product visibility and OSA.

The re-designed on-shelf solution (pictured opposite) was implemented in all Norwegian stores and delivered significant productivity savings on product replenishment and rotation, equating to a total of approximately €375,000

New on-shelf SRP design

1

2

3

Source: ECR Norway

ii. Stationary Case Study

Sanford Brands and Carrefour have worked collaboratively to address some of the challenges in the Stationary category with flexible SRP solutions. The key challenge was high seasonal demand (back-to-school), with 70% of annual sales in 1 month, resulting in high OOS. Product identification for store personnel was difficult with all varieties in brown/white cases, with brand identification for shoppers in-store also difficult.

Focussing on the Functional Requirements, a flexible SRP solution was developed that was suitable for both hanging and on-shelf displays. Replenishment productivity improvements of the new design allowed end-of-aisle displays to be merchandised in 7mins, down from 50mins.

Addressing the Functional Requirements

Easy ID

Easy Open

Easy Shop

Easy Shelf

Easy Dispose

Source: Carrefour


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iii. Chocolate Case Study

At the time of publishing, Kraft Foods were preparing to implement a new on-shelf SRP unit for Côte d’Or chocolate tablets. During a strategic product review, the Solution Assessment tool was used to highlight SRP opportunities.

The Business Case calculation identified that the packaging on-cost of €0.05/Kg could be recovered by achieving a 2.5% sales uplift. In addition, during the evaluation, opportunities to reduce complexity were also identified, moving from 3 regional-specific case designs with 2 count sizes, to a single multi-regional design with a single count size.

Before – Low SRP score

After – High SRP score

iv. Soft Drinks Case Study

At the beginning of 2006, Coca-Cola, working with Hypermarket retailers in France, introduced a new ½ pallet SRP solution across approximately 550 stores. The priority drivers behind the initiative were to reduce Out of Stocks (OOS), whilst improving merchandising efficiencies and reducing secondary packaging costs.

The display of 2 ½ pallets in-store ensured improved availability, contributing to an increase of 2.7% market share for the 2L SKU, whilst meeting the 5 SRP Functional Requirements.

Source: Kraft Foods

Before – decanted consumer units

After – display ready ½ pallets

Source: Coca-Cola


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v. Margarine Case Study (II)

Throughout 2005 and 2006, Unilever, working with retailers across western Europe, developed and implemented a harmonised outer case for margarine spreads. The priority drivers for the SRP initiative focussed on reduced complexity, improved availability, and ease of replenishment.

The resultant solution delivered cost savings through a harmonised outer case design for factories in western Europe, and whilst no significant impact on sales uplift was realised, OSA improved by 1.3% in the UK, enabled by one-touch replenishment of product in-store.

Before – Standard case

After – Easy ID, Open, Shop & Shelf

Source: Unilever

vi. Pasta Case Study

Barilla identified a high shopper benefit opportunity for their dried Tortellini products. Their category leading brand experienced high product rotation, and an SRP solution was used to meet the opportunities of shopper communication, product range assortment, and replenishment efficiency.

The solution, an on-shelf ISO-modular case, improved shopper brand recognition, and facilitated efficient one-touch replenishment, supporting an increase in product range carried by retailers, and delivering transportation efficiencies throughout the supply chain.

Before – High priority opportunity

After – Full product range in SRP

Source: Barilla


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vii. Diaper Case Study

Kimberly-Clark analysed the suitability of different SRP solutions for their Huggies product with Tesco. The study focussed on evaluating the most efficient packaging for minimising replenishment time in-store.

The results demonstrated that for this product, a move to an on-shelf SRP case would actually increase the replenishment time overall, primarily from the additional time taken to dispose of empty packaging and to re-face the product on shelf. Due to the bulky nature of the product and the typically low case counts, the time saving of not having to decant the consumer units did not off-set other handling implications.

Within existing formats, a polythene bundle and a cardboard case, the results showed that the poly bundle was the most efficient solution for 'easy dispose‘, and the cardboard case was more efficient for 'easy open' and required least additional work at fixture. Overall, existing formats were more efficient to replenish than the potential on-shelf SRP solution

On-shelf SRP prototype (B) found to be less efficient than existing standard case (A)

A

B

Source: Kimberly-Clark

Canned Foods

viii. Canned Foods & Ham Products Case Study

Carrefour, committed to achieving widespread availability and usage of SRP on private label products, has implemented a number of new solutions throughout 2006.

For their private label canned foods, integration of ½ pallet SRP solutions have delivered an in-store productivity saving of 8%, whilst Pilot stores have demonstrated a 34% reduction in OOS and an increase of 61% turnover for the category compared to store averages.

Similar benefits have been realised for their range of private label ham products, with a new on-shelf SRP unit improving in-store productivity by 7%, whilst Pilot stores have demonstrated reduced OOS by 30% and increased turnover of 90% for the category compared to store averages.

Ham Products

Source: Carrefour


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ix. Bottled Beer Case Study

Hall & Woodhouse, manufacturers of Badgers Ales, completed the full roll-out of an on-shelf SRP solution to Tesco between May and September 2006. Acknowledging the requirement for SRP to become a common feature of their products ranges, Hall & Woodhouse have made significant capital investment to achieve SRP functionality for their products.

Whilst it remains too early to report the impact the new on-shelf SRP solution has had on sales volume and in-store productivity (at the time of publishing), preliminary insights from store visits indicate Badger brands are now easier to identify for store staff, and more efficient replenishment and simpler merchandising has improved OSA.

Before – Decanted

After – On-shelf Trays

Source: Hall & Woodhouse

x. Home Care Liquids Case Study

Colgate-Palmolive implemented a category solution to products in their home care liquids category in the Nordics from June 2005. The solution focussed on increasing in-store efficiency, and provided flexibility for moving product between primary and secondary display areas.

The single design could be displayed either as an on-shelf simple tray, or as a stackable case on pallets, end-of-aisle displays, and on bottom shelves.

The improvement in Easy Open functionality, and flexibility of using the same solution in multiple locations, was achieved with some increase in packaging cost but required no investment or increase in conversion cost. The stackable option supported high velocity promotional activity, whilst providing suitable protection to vulnerable trigger spray products.

Flexible SRP solution

OR

Source: Colgate-Palmolive


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