Thursday, July 16, 2009

Store Trips: Technology Enabled Segmentation and Need States Analysis with Hershey and Video Mining

The Hershey Company has figured out that winning in C-Stores depends on being in the right place at the right time to capture incremental purchases. The world-class company conducted a test in six C-Stores in which 350,000 shopping trips were video recorded and analyzed by cutting-edge technology provided by VideoMining Corporation.

To increase candy sales, Hershey had to understand the path to purchase by day-part because the shopper behavior changes with the hours. For example, 7-8 am the "need state" is a daily snack; 12-1 pm, it is a meal enhancer, 3-4 pm, it is for energy, 6-7 pm, it is a snack, and 9-10 pm, it is habit/social.

Technology-enabled segmentation and need states analysis using VideoMining programs help Hershey place its products and vary its approach by: location in store (be on the path to purchase), assortment at each location, promotion partner (if any), message content, and time of day messaging.

Speakers Susan LaPointe of The Hershey Company and Rejeev Sharma and Priya Baboo of VideoMining Corp. stressed the need to keep the shopper at the center in three ways:
One, Understand the decision process of the various shopper segments; two, track segment composition and behavior trends, and three, test the response of each segment to new strategies.

VideoMining's proprietary in-store measurement technology gives an unprecedented visibility into the shopping process at every retail touch point. Sounds like a sweet idea.

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