Targeted, hyperlocal, personalized… PepsiCo mines data to help retail partners boost sales via new pepviz platform
A proprietary data practice developed by PepsiCo combining consumer insights, advanced analytics, data science and industry expertise, pepviz is proving particularly valuable in an omnichannel environment in which retailers are trying to find the right products and pack sizes, messages, and promotions to meet shoppers where they are, whether that’s online or in store, SVP at PepsiCo North America Kate Garner told FoodNavigator-USA.
'We were able to customize the shelf set for shoppers in store, while enabling the demand [for multipacks] to be fulfilled through the back door'
In one collaboration deploying pepviz, PepsiCo worked with a large retailer to compare sales performance, e-commerce sales mix, and shelf space across stores.
PepsiCo then identified stores with the highest potential for e-commerce sales growth that needed additional holding capacity for Frito-Lay multipacks in the store backroom, which instore shoppers are less likely to purchase, but click and collect shoppers over-index on, said Garner.
Stores in the test saw their salty category sales outpace those in stores not in the test, she said.
“We said, we know the demand is there for that [multipack] inventory, but it doesn't have to be on shelves, because what shoppers walking through the store are looking for is a different assortment set [vs the click & collect shopper]. So we were able to customize that shelf set for that shopper in store, while enabling the demand to be fulfilled through the back door.”
'We were able to come in and deliver planograms on a store by store basis to deliver growth'
In another case study, PepsiCo worked with two national retailers with small store formats. By looking at shoppers’ buying patterns and behaviors, each of the retailers was able to sort its customers into four clusters—each assigned its own salty snack product mix.
One chain saw sales in the salty snack segment grow by $4,000 per store per year, while the other saw growth of nearly $1,300 per store per year, with both now planning to expand this approach, said Garner.
“We were able to come in and deliver planograms on a store by store basis to deliver growth.”
'A much more granular approach to their assortment process'
In one collaboration, she said, “We saw an opportunity for a partner to further its better for you assortment and the retailer was uncertain about that; it weren't sure that its shopper had an interest in that. And we agreed that it probably wasn't universal, but we felt there was niche but untapped opportunity.
“We started with a select set of stores – so it was low risk and low investment, a small piece of the footprint - and our ability to demonstrate growth in that area led to a much more granular approach to the assortment process across the board.”
More targeted digital click & collect coupons
In a final example, a large supermarket chain leveraged pepviz to better understand the impact of school closures, changes to SNAP benefits and other COVID-19-inspired factors on their shoppers to help drive more targeted digital click & collect coupons, said Garner.
'How do we use data to be more predictive?'
Like all major CPG brands that serve as category leaders, PepsiCo has been analyzing data to help key customers maximize sales for years, said Garner. But pepviz takes this to a more granular level.
“We have been going down the data path for a number of years, but one of the things that we've learned in the last 18 months is the agility that this data provides, so we can work with our retail partners and further advance those strategic relationships.
“We’ve also learned that looking back is not an indicator of what's happening today or tomorrow, so how do we use data to be more predictive? Our category team is using this on a daily basis to work with retailer partners.”
'Oftentimes what can be most difficult to see is what's not happening in your store'
Asked about what data sources PepsiCo is mining to feed into its pepviz platform, she said: “It's a broad set of third party, second party as well as first party data."
In a nutshell, she said, "Where we see opportunity in partnership with our retailers, is that they go very deep on what's inside their box, whereas our data looks right across the marketplace, and oftentimes what can be most difficult to see is what's not happening in your store.”
Image credits: PepsiCo