How to optimize your merchandising plan thanks to machine learning?
What is Machine Learning?
Machine learning or "automatic learning" in French is a concept that is increasingly talked about in the world of information technology.
Machine learning is a computer programming technique, allowing machines to learn without having been programmed for this purpose. It can be defined as anartificial intelligence technology. Machine Learning is explicitly linked to Big Data, since in order to learn and develop, computers need streams of data to be analysed and trained on. Therefore, the Learning Machine, in essence derived from the Big Data, needs the Big Data to function. Machine Learning and Big Data are therefore interdependent.
Today, we use machine learning in all areas: when we interact with banks, buy online or use social media, machine learning algorithms come into play to optimize, fluidify and secure our experience.
The Machine Learning at the heart of the merchandising strategy!
Merchandising is a set of techniques for presenting merchandise in physical stores. They aim to guide the consumer towards a purchase. One of the main objectives of merchandising is to maximize sales. It also aims to enable companies to stand out from their competitors by presenting their articles differently on the shelves.
It is difficult to define clearly what an effective merchandising strategy should be based on, as it must first and foremost be adapted to each point of sale and its needs.
Nevertheless, we know that merchandising is based first of all on a study of the profitability of sales (by product, by range...). This study is associated with the analysis of visitor behaviour. This analysis is based in particular on the route taken to the exit, the time spent in each department and in the store in general, as well as visual behaviour. All these studies result in a very strict layout of the points of sale, from the organization of the departments to the way in which products are presented in the same space.
Suppliers and distributors must work together to develop operational excellence at the point of sale.
The learning machine thus becomes an indispensable tool in a company's merchandising strategy. It allows you to successfully plan the implementation of products in points of sale, analyze a store's potential, discover development opportunities or create action plans. It is a key success factor for both manufacturers and retailers in the retail sector.
Discover Oriade Predictive Merchandising
In a difficult and highly competitive economic environment, price wars, promotional pressure or cost reduction are no longer the only solutions to be favoured in order to preserve margins and defend revenues. It is essential to provide consumers an adapted response, by proposing efficient merchandising and relevant management of the linears to limit breakage or breakage.
This is why at Iraten we have decided to develop and create our own decision support tool: Oriade Predictivie Merchandising
It allows you to optimize thelayout of the shelf (facing), increase the visibility of your products and boost your sales and market share. This strategic planning tool allows you to develop the market shares of product categories and assortments based on the performances collected by the sales force during field surveys.
Oriade Predictive Merchandising analyses all sales and field surveys to enable your teams to adapt future recommendations, according to multiple typologies (stores, products, seasonality, regional consumption...).
Rapid linear surveys will be carried out to compare the implementation objective with the one achieved. You can easily adapt your recommendations to the specificities of the points of sale and distribute them automatically.
You effectively manage and plan product referencing to increase the profitability of your sales areas, anticipate changes in consumption and build customer loyalty.
Oriade Predictive Merchandising is an indispensable tool for your business! Do not hesitate to visit our page and ask for a demo: Oriade Predictive - Merchandising Platform