Mobile Shelf Monitor Shop organization for profit maximization

1. Mobile Shelf MonitorShop organization for profit maximization

2. The way to boost your sales Customer Monitoring Behavior Analysis Product Placement and Promotion Optimization Increased Sales Maximized Profit

3. The way to boost your sales • Mobile Shelf Monitor is a solution to cost effectively predict the performance of a customer behavior analysis system by optimizing product placement on one shelf • Easily deployable • Produces results in short term operation time • Effectively answers feasibility questions • Gives accurate measurements and performance indicators • CUBEA analyzes the behavior of customers*, optimizes product placement and promotion in an entire shop • Based on the installed video surveillance system • Continuous operation time • Able to recognize complex behavior patterns • Gives shop–level measurement data • Results increased performance indicators • * Performs best in shops with shopping carts Customer Monitoring Behavior Analysis Customer Monitoring Product Placement and Promotion Optimization Increased Sales Behavior Analysis Maximized Profit Product Placement and Promotion Optimization Increased Sales Maximized Profit

4. Preconditions Customer Monitoring A shop should meet certain preconditions in order that the product placement optimization should work: • Asymmetry in usual movement directions in front of a shelf(e.g. 70%-30% ratio between left and right passing) • Anonymized purchase data*from the transaction database: • Overall number of purchases from the selected products • Number of cases when the selected products were sold together * Privacy concerns: individual customers are not connected with the products or purchases • At least 500 sells from each product during the monitoring time interval • Practical requirements: • Network access point for the IP cameras or • Place for a computer behind the self • Mobile Shelf Monitor can then evaluate whether real correlation between the products exist from the point of view of customer behavior Behavior Analysis Product Placement and Promotion Optimization Increased Sales Maximized Profit

5. Customer Monitoring Customer Monitoring • Mobile Shelf Monitor • Cameras are mounted • at the end of the shelf • on the ceiling • looking at the shelf • Estimates how many of the people purchasing the selected products were moving left-to-right and right-to-left • Correlates information queried from the transaction database • CUBEA Customer Behavior Analysis System • Obtains video images from the video surveillance system • Existing camera positions are calibrated • Extra ceiling cameras may be needed to ensure full coverage • Information about individual purchase transactions • Optionally: shopping carts with ID plates* * Shopping carts can be tracked this way more easily and reliably than humans Behavior Analysis Product Placement and Promotion Optimization Increased Sales Maximized Profit

6. Customer Monitoring Behavior Analysis Product Placement and Promotion Optimization Increased Sales Maximized Profit Order of items selected: 1. Detergent 2. Cleaner 3. Milk 4. Eggs 5. Wine

7. Customer Monitoring Behavior Analysis Customer Monitoring • Geospatial data mining • Based on the customers’ route and its correlation with the monitored products • Data mining engine is Correlation System’s GDM6 http://www.correlation-systems.com/ Behavior Analysis Product Placement and Promotion Optimization Increased Sales Maximized Profit Product Placement and Promotion Optimization • Clear recommendations on how to reorganize product and promotion placement in order to maximize revenue • System performance is objectively validated by measuring the effects of single product changes

8. First step: Piloting with Mobile Self Monitor Behavior Analysis Customer Monitoring 4 weeks runtime: • Selecting the observed subset of products based solely on statistical analysis of previous transactions • Installing 6-10 cameras around the selected shelf / aisle • Record a couple of days long initial video • to check appropriateness • to make the necessary adjustment in system configuration • 2 weeks continuous customer monitoring • Single changes in product placement • Evaluation of affected sales and performance indicators Behavior Analysis Product Placement and Promotion Optimization Increased Sales Maximized Profit Product Placement and Promotion Optimization

9. The consortium behind Mobile Shelf Monitor Correlation Systems Ltd.(Israel) is a research and development company. As the developer of the GDM6 Geospatial Datamining engine, Correlation Systems has specialized in providing customized solutions for the gathering and analyzing of geospatial information. NETAVIS Software Gmbh. (Austria) is a pioneer of server-based IP video surveillance. With thousands of successful installations around the world, many customers in retail, government, banking, transportation and industry rely on NETAVIS’s Observer product family. SEARCH-LAB Ltd. (Hungary) develops IDENTRACE, an innovative intelligent video surveillance system. The applied video analytics can classify, identify and track moving objects, and based on this information the system can recognize unauthorized actions and suspicious activities automatically.