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New product positioning technology is good for both retailers and the customers

Published: 23. januari 2016

Product positioning is essential to retail. The product’s position in the store and on the shelf is determined based on sales data and customer behaviour with the aim of maximising profit. The product position therefore represents a value for the retailer, but also a challenge to be managed.

Recently, new shelf labelling technology has become available that opens new opportunities for getting the most out of the product positioning with minimal amount of work.

Electronic shelf labelling suppliers – such as Pricer – now have the capability to automatically confirm the product’s position. This is done with infrared (IR) technology. It is achieved by measuring the strength of the response signal from the electronic shelf label, which digitally represents the product on the shelf. Then the product’s position is calculated with triangulation.

Infrared technology sends IR signals from transceivers on the ceiling to the label on the shelf, and the label sends signals back to the transceiver to confirm the signal has been received.  This is very important to secure that labels are updated at all times.

This IR technology has a number of advantages.  Here are some examples:
The same transceivers and triangulation technique can be used to track customer movements in a store and to position a product in a way that increases the customers shopping.  This information will help the retailer to optimise product positioning and subsequent profit. When you know how customers move in your store, you can position your high margin-products smarter.

You can also guide and help customers to find products, and thus enhance their shopping experience.  Imagine your customers moving around in the store, having shelf labels flashing green when they approach the ones with a product they have on their shopping list!

You can also help your store staff:  What help would it not be if they are moving around in a store to replenish goods, and the shelfs that needs replenishing flashes their “here am I” to them!  It would speed up the process considerably, and reduce the chance of mistakes to a minimum.

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