Increase Product Sales & Save Thousands on FSDUs
A Cosine Guide
Increase Product Sales & Save Thousands on FSDUs
Table of Contents
FSDU Spend – The £31 million ‘elephant in the room’ .................................................... 2
FSDU Spend – What Are The Figures?................................................................................ 3
How Brands Can I ncrease Sales & Cut Costs. ................................................................. 3
Cosine’s Cardboard Maximiser & Tactical Field Visits – Cutting Costs & I ncreasing
Sales ....................................................................................................................................... 4
Cardboard Maximiser I nsights ........................................................................................ 4
Cardboard Maximiser Combined With Tactical Field Visits ....................................... 4
1
Increase Product Sales & Save Thousands on FSDUs
Thanks for requesting Cosine’s guide to reducing FSDU costs, and increasing product
sales. I n this short guide, w e’ll highlight the issues of FSDU spend and explain how
data can be used to cut costs and maximise sales from FSDU campaigns.
FSDU Spend – The £31 million ‘elephant in the room’
FSDUs hav e long been a staple part of an in store
merchandising plan for practically all FMCG brands, be
that soft drinks, spirits & beers, confectionery & snacks,
cosmetics or any of the myriad of other FMCG
categories.
Whilst FSDUs do offer a great solution for raising product
aw areness and increasing sales within category, it’s a
clear fact that a high percentage of the £31 million
worth* of free standing units sent out by brands each
year are either placed poorly, or w orse still, never even
make it to the shop floor.
The reasons for this v ary, including, but certainly not
being limited to:
FSDUs being throw n away by store staff before
being placed – staff may be too busy, not know
how to assemble the units, or simply not know
the best area to place the stand.
Units being placed in the stock room to be dealt w ith later, often being lost or
forgotten.
Poor placement of FSDUs, due either to a lack of floor space, or
inexperienced store staff.
Whatever the reason, the result is the same: Poor or no merchandising, leading to:
Thousands of pounds w asted on cardboard that is throw n away
Underperforming promotions, not realising full uplift potential
* Cosine, industry estimate August 2013
2
Increase Product Sales & Save Thousands on FSDUs
FSDU Spend – What Are The Figures?
With 2,542 stores across the top four retailers, even if just one FSDU w as placed each
w eek in every store that w ould equate to £8 million spent a year.
How ever we estimate that up to 10 FSDUs are v ying for floor space at any one time
in the top 250 stores of each retailer.
This means that across 250 stores for each of the 4 top retailers:
£60 – Av erage cost of an FSDU including construction, shipping to stores, and a
merchandising v isit
10,000 – Number of units placed on av erage, based on 10 units per supermarket
store, across 1,000 of the top 4 retail stores
£600,000 – Total w eekly spend on FSDUs
£31.2 million – Total yearly cost of FSDUs
With a £31.2 million industry spend brands need to ensure FSDUs are doing their job
of increasing product sales, rather than sitting in a store room.
How Brands Can Increase Sales & Cut Costs.
By tapping into a specialist promotional compliance database and insights, it’s
possible to turn a traditional FSDU campaign around, slash w asted spend and deliver
a significant increase in product sales.
This can be achieved by:
I dentifying stores that don’t allow FSDUs to be placed prior to any activ ity,
and understanding the reasons behind this refusal.
Creating a solution based on each store specific scenario, using the
feedback gained from the stores to inv estigate other possibilities. For
example, the store might simply not hav e enough floor space and may
w elcome an alternative display stand, such as a ladder rack, or smaller POP
display unit. Equally regional or local licensing issues, such as city centre stores
being unable to adv ertise alcohol on FSDUs, can be addressed.
A pre-campaign dialogue can be established w ith the buyer to try and
resolve such issues before activity goes live, or after the fact, as negotiation
tool.
3
Increase Product Sales & Save Thousands on FSDUs
Cosine’s Cardboard Maximiser & Tactical Field Visits – Cutting Costs &
Increasing Sales
Cosine’s new service can solve the problems long associated with FSDU inefficiency.
By using our Cardboard Maximiser’s insights, mixed w ith tactical field v isits, w e can
ensure merchandising compliance and maximum sales potential.
Cardboard Maximiser Insights
Hav ing access to data is v ital for cutting w astage and increasing product sales from
FSDU spend.
When it comes to FSDU data, Cosine is in an env iable position. Our Cardboard
Maximiser I nsights database holds the outcome of placing cardboard display units
into:
Tesco
Sainsbury’s
Morrisons
Asda
This data giv es Cosine industry-leading insights into the FSDU problems and potential
solutions of indiv idual stores for the four major supermarket chains, and by putting
this data to w ork, Cosine helps brands to gain a competitiv e advantage.
Cardboard Maximiser Combined With Tactical Field Visits
When Cosine combines our
Cardboard Maximiser data
w ith in store tactical field
v isits from our established
team of tactical field
agents, w e are able to:
Ensure FSDUs are not sent to stores that w ill immediately throw them aw ay, or
to stores that hav e a ‘clear floor policy’. Sav ing you around £60 per store.
4
Increase Product Sales & Save Thousands on FSDUs
Where FSDUs are not accepted, we suggest alternative display solutions and
ensure compliance w ith the alternative solutions. This leads to increased
merchandising presence of products, and can driv e sharp sales increases.
Highlight ‘problem stores’, giv ing our clients the ability to discuss w ith their
buyer, and agree a plan of action. JBP’s can, of course, be amended
accordingly.
The Cardboard Maximiser allows brands to optimise their promotional activity
in store by predicting the success rate of placing the unit before the call
happens, giv ing brands the information they need to make informed
decisions.
I f increasing product sales in supermarkets, whilst cutting w asted FSDU spend is of
interest to your brand, contact Cosine to find out how w e can use our Cardboard
Maximiser insights to increase your sales, and cut w asted FSDU spend.
Contact Cosine to discuss how our Cardboard Maximiser Insights can
potentially save you thousands on FSDUs whilst increasing product sales.
Call Cosine on 01844 296717 to find out how we can support your sales
growth.
Or visit: http://www.cosineuk.com/
5