Case Study: Snack Foods Department Audit and Restock Project
“Solving out-of-stocks spikes sweet and salty snack sales”
Prompt audit/replenishment services helps drive new product sales.
Lawrence Merchandising was engaged by a nationwide manufacturer of salty/sweet snack foods who was not achieving projected sales to investigate an out-of-stock issue within a mass merchandiser. They requested an inventory and restock service to ensure the product had ample inventory quantities on the selling floor and in the stock room. This would be followed up with a time-sensitive service call to coincide with the product’s advertised sale pricing. The service included an audit to gather competitive intelligence to ensure their product was best positioned relative to their competitors. The client is a newer company with recently launched product in the retailer. It was critical to maximize product placement for increased sales as successful product performance would result in expanded nationwide distribution.
To leverage our frequency within the retailer to promptly execute an audit and restock project in multiple locations simultaneously. The competitive intelligence was gathered to help the client monitor factors affecting their sales, especially out-of-stocks allowing competitor brands to move into their designated space (this data varies by store and is not available through POS reporting). Lawrence service representatives are Backroom Certified at this retailer, enabling them to more effectively expedite replenishment at retail.
Timing and execution was urgent to identify the out-of-stocks and cause of low sales. It was imperative to service quickly but in accordance with the retailer’s grocery stocking schedule and advertised sale campaign, which required high stock levels on the floor. A recent in-store demo diminished stock levels so the product was very low or out-of-stock with no replenishment in the stock room. Lawrence discovered that in some stores, when the demo company ran out of product they used a competitive brand to sample, which we communicated to the client. This was crucial information that the client was unaware of.
Lawrence Merchandising was able to maximize our frequent service schedule at the retailer through immediate project deployment to quickly assess the stock status at each store. Careful planning enabled us to schedule the initial visit and subsequent service calls to coincide with the scheduled stock and sale dates to expedite product replenishment. Prompt service reporting communicated valuable information to the client.
Lawrence Merchandising visited over 98% of the stores within the scheduled service dates to ensure the highest stock levels. Our ability to report real time issues and be the “eyes and ears in-store” provided the client with critical retail intelligence they would not have been able to capture from their usual reporting. The client reported back to Lawrence that our service was very valuable and that their sales showed an increase as a direct impact of our in-store merchandising, with the second visits generating a 15% sales increase!