The interim manager was tasked with identifying the optimal points of sale for batteries for a leading German DIY store and a leading German battery manufacturer, thereby increasing frequency and revenue for the category. Batteries have been a growing category for years, as the demand for portable energy continues to increase (keywords "smart home" and "Internet of Things"). However, there was a lack of certainty as to which area in the point of sale (POS) generates the highest sales.
Batteries are often purchased as impulse buys at the checkout or in impulse zones in the store. In order to find out which batteries are most in demand where in the store, the interim manager developed a test concept with a renowned market research company to determine the sales per placement in the store on an item-by-item basis.
Sales by impulse zone evaluated with Latin Sqaure method
The range of batteries in DIY stores is very broad. Batteries are therefore offered in many impulse zones for a wide range of product categories, from cars to lights to household appliances: however, not all batteries are offered in every zone - and the assortment per zone varies in composition.
In order to make the evaluation traceable based on sales, it must be clear which battery comes from which impulse zone. To ensure this, a sales force team from the market research company used a special process for six months. In this Latin Sqaure process, items are uniquely labeled for each point of sale. This allows a clear sales result to be determined at the end.
New placement strategy developed for the entire battery range
The results of the test enabled a completely new placement strategy for the battery range. By simply changing the product selection, it was possible to achieve high double-digit growth rates in volume and especially in revenue in individual impulse zones.
Retailer adopts new product placement in almost all DIY stores
The main placement with the entire range was also optimized and grew by almost double digits compared to the previous period. Both the retailer and the manufacturer were very satisfied with the result and, as a consequence, the placements were adjusted to the test results across the board in almost all stores. What remains critical on a day-to-day basis is that the results of the study remain in the minds of the people involved, even in the event of personnel changes, and that the successful concept is maintained.
