The document discusses how Coty uses real-time data from Shelfbucks to optimize in-store merchandising and drive sales. Only 50% of displays were being executed correctly historically, leaving sales opportunities. Shelfbucks provides data on display compliance across retailers in real-time. Early case studies found 20-35% incremental sales are possible by using the data to ensure displays are properly placed and maintained. The solution provides transparency across merchandising, supply chain, and store operations to coordinate improvements. Coty and CVS saw benefits including increased category sales and optimized inventory levels from the partnership.

1. This Exhibitor Big Ideas session is developed, produced and sponsored by
+
Making IoT Data Beautiful
COTY Drives Sales by Optimizing
In-store Merchandising
January 15, 2018

2. This Exhibitor Big Ideas session is developed, produced and sponsored by
2
Data is power
New data + alerts for improved display
execution & sales performance at retail

3. This Exhibitor Big Ideas session is developed, produced and sponsored by
How much will CPG Marketers spend in 2017?
3
$225
Billion

4. This Exhibitor Big Ideas session is developed, produced and sponsored by
Where is largest portion spent?
4Cadent Consulting Group- 2017
Consumer
Promotion,
10.5%
Shopper
Marketing,
12.9%
Traditional
Advertising,
13.3%
Digital,
19.9%
Trade
Promotion,
43.4%
§ Traditional Advertising
§ Digital marketing
§ Shopper Marketing
§ Consumer Promotion
§ Trade Promotion= $98 Billion

5. This Exhibitor Big Ideas session is developed, produced and sponsored by
TO CELEBRATE
AND LIBERATE
THE DIVERSITY
OF YOUR BEAUTY

6. This Exhibitor Big Ideas session is developed, produced and sponsored by
The Beauty
Consumer
She is a beauty enthusiast who is looking
for both her favorite products and the latest
new products and trends.
Her trip is not a traditional stock up,
planned purchase but rather one that is
discretionary and impulsive in nature. Her
impulse purchase is influenced by what
she sees in the media and in-store.

7. This Exhibitor Big Ideas session is developed, produced and sponsored by
Displays drive significant sales

8. This Exhibitor Big Ideas session is developed, produced and sponsored by
Challenge is Display
Compliance
8
% Displays ordered
that are executed at retail
within the sales period in
the approved store list

9. This Exhibitor Big Ideas session is developed, produced and sponsored by
Challenge is Display
Compliance
9
Industry is 50%
= opportunity for
improvement!

10. This Exhibitor Big Ideas session is developed, produced and sponsored by
Historic solutions, there was not a good one…
10
§ Little data was available and was not real-time to take action
§ Work with retailers to improve execution but there were lags
§ Send out 3rd Parties to set up displays which costs additional money and
often missed key alignment dates
§ Utilize 3rd Parties to audit execution compliance
Needed actionable data!

11. This Exhibitor Big Ideas session is developed, produced and sponsored by
Why it matters
11
§ Lost incremental sales opportunities for the category
§ 50% of displays don’t get executed so there is waste
§ Inventories build and impact GMROI
§ Future display forecasts are not optimized
Opportunity: Leverage data to increase
store execution, drive incremental sales,
improve ROI and enhance future
planning.

12. This Exhibitor Big Ideas session is developed, produced and sponsored by
Optimal Future State:
§ Real Time Display Location Data- Floor or Not
§ Brand & Retailer Execution Partnership
§ Brokers or Store Personnel Leverage Data to Increase Compliance
§ Increase Category Sales
§ Optimize Future Promotions/Displays based on Data Analysis
12
Real Time Data +
Brand & Retailer Partnership
Category Sales
Opportunity
=

13. This Exhibitor Big Ideas session is developed, produced and sponsored by
The Shelfbucks Solution
13
ü Increase category sales
ü Real-time location data (On sales floor or not)
ü Brand & Retailer execution partnership to drive efficiencies
ü Brokers or stores use data to increase performance and strengthen
operations
ü Merchandising use data to optimize future promotions/displays
CVS pilot 2 years ago
Now at scale

14. This Exhibitor Big Ideas session is developed, produced and sponsored by
Real-time Display
Data & Alerts
How it works
Industry Findings
Case Studies
©2017 Shelfbucks Confidential & Proprietary

15. This Exhibitor Big Ideas session is developed, produced and sponsored by
15
20-35% incremental sales volume
with actionable data & alerts
to improve performance

16. This Exhibitor Big Ideas session is developed, produced and sponsored by
16
Data from
every display,
every store,
every day
Improved execution
& decision making

17. This Exhibitor Big Ideas session is developed, produced and sponsored by
More Days on Display =
Improve 35% points
Sales & Category Share
GM ROI
Optimize Trade $, COGS & Time
Reduce Excess Inventory

18. This Exhibitor Big Ideas session is developed, produced and sponsored by
Where are
your displays
every day
Confidential

19. This Exhibitor Big Ideas session is developed, produced and sponsored by
SKU-level
Incremental
Sales
Incremental
Sales by
Week
Confidential

20. This Exhibitor Big Ideas session is developed, produced and sponsored by
Identify missed sales
$1,000,000+
Confidential

21. This Exhibitor Big Ideas session is developed, produced and sponsored by
Full transparency in
communications + planning
across
merchandising
supply chain &
store operations

22. This Exhibitor Big Ideas session is developed, produced and sponsored by
Early Results &
Case Studies
500 Million Data Points
Early Industry Insights

23. This Exhibitor Big Ideas session is developed, produced and sponsored by
23
Shelfbucks 2018+
Shelfbucks 2017
500 Million Data Points
2 Trade Channels
3 Retail Chains
6,500 Stores
27 Programs
9 Categories
19 Display Types
183 Products
3 Billion Data Points
Mass, Grocery, Drug Trade Channels
Top National Retail Chains
30,000+ Stores
most Programs
most Categories
most Display Types
Thousands Products
Historical
Scale

24. This Exhibitor Big Ideas session is developed, produced and sponsored by 24
500M data points. Three chains. Two
trade channels. 50+ programs.
Source: 2016 Shelfbucks Study
Historical Reporting

25. This Exhibitor Big Ideas session is developed, produced and sponsored by 25
80%
50%
Program D
41%
Program C
19%
91%
Program B
95%
82%
Program A
0%
On-Floor Rate Sales Performance
Hidden Sales
Opportunity
Unlock hidden sales
opportunities

26. This Exhibitor Big Ideas session is developed, produced and sponsored by 26
Late/neverOn-timeearly
28%14%58%Allergy
44%11%45%Snack
53%17%30%Snack
30%26%44%Beauty
33%15%52%Cough & Cold
62%12%27%Beauty
45%11%44%Beauty
On-time varies widely

27. This Exhibitor Big Ideas session is developed, produced and sponsored by 27
Display 1 -
SKU Mix
Display 2 -
SKU Mix
SKU mix drove sales lift

28. This Exhibitor Big Ideas session is developed, produced and sponsored by 28
41%
80%
Store Brands Program
ActualExpected
-39%
30%
70%
New Product Launch
ActualExpected
-40%
High profile programs had high
variability

29. This Exhibitor Big Ideas session is developed, produced and sponsored by
29
Grocery Battery Display Case Study
Displays arrived
late
Displays put on
floor late
Displays never arrived
Displays thrown away

30. This Exhibitor Big Ideas session is developed, produced and sponsored by
30
+391K
Incremental
sales at scale
+64%
Sales lift when
executed
Challenge
• Sales rate higher when displays on sales floor
• Sent alerts to stores requesting execution
Results
• Stores took action to execute displays
• 64% sales lift per day when display executed
• At scale $391K additional sales during period
Grocery Battery Display Case Study

31. This Exhibitor Big Ideas session is developed, produced and sponsored by
In Supply Chain
In Stockroom
On floor
Was on-floor, but now removed
Disposed without being placed on-floor
• 39 delivered to wrong store
• 60 never delivered
Drug Beauty Display Case Study

32. This Exhibitor Big Ideas session is developed, produced and sponsored by
32
+33%
Incremental
execution
+45%
Stores took
action
Challenge
• Only 800 displays on sales-floors at start date
• Sent alerts to 600 stores requesting execution
Results
• 270 additional stores took action to execute displays
• Added 8,400 additional days of promotional sales
• Additional 33% incremental display execution
Drug Beauty Display Case Study

33. This Exhibitor Big Ideas session is developed, produced and sponsored by
In Supply Chain
In Stockroom
On floor
Was on-floor, but now removed
Disposed without being placed on-floor
• 16 delivered to wrong store
• 90 never delivered
Drug Allergy Display Case Study

34. This Exhibitor Big Ideas session is developed, produced and sponsored by
34
+17%
Incremental
execution
+32%
Stores took
action
Challenge
• Only 800 displays on sales-floors at start date
• Sent alerts to 443 stores requesting execution
Results
• 143 additional stores took action to execute displays
• Added 5,800 additional days of promotional sales
• Additional 17% incremental display execution
Drug Allergy Display Case Study

35. This Exhibitor Big Ideas session is developed, produced and sponsored by
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Before Data
§ 50% execution
§ $9M sales during period
§ $12M excess inventory
Brand
Opportunity
60K displays
$21M sales
opportunity
After Data
§ 80% execution
§ $14M sales during period
§ $7M excess inventory

36. This Exhibitor Big Ideas session is developed, produced and sponsored by
36
Before Data
§ 50% execution
§ $450M sales during period
§ $550M excess inventory
Retailer
Opportunity
3M displays
$1B sales
opportunity
After Data
§ 80% execution
§ $750M sales during period
§ $250M excess inventory

37. This Exhibitor Big Ideas session is developed, produced and sponsored by
37
§ Increase Category Sales
§ Real-time location data for decision making and action
§ Brand | Retail transparency & partnership
§ Field & Stores Operations use data to increase performance
§ Merchandising and Inventory Management use data to
optimize future promotions/displays
COTY & CVS Benefits
= Industry Game Changer

38. This Exhibitor Big Ideas session is developed, produced and sponsored by
Future Media Tie-in

39. This Exhibitor Big Ideas session is developed, produced and sponsored by
Thank you + QA
Contact:
Karen Van Dongen, Karen_Van-Dongen@cotyinc.com
Erik McMillan, emcmillan@shelfbucks.com
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40. This Exhibitor Big Ideas session is developed, produced and sponsored by
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