GfK Retail and Technology USA
Controlled Store Tests
As a methodology, controlled store tests provide an excellent technique to understand the consumer response to in-store marketing variables, such as the introduction of new products/line extensions, the reduction or increase in selling price, changes in shelf facings and/or positioning, the impact of in-store displays or merchandising (signage, shelf danglers, coupon dispensers, aisle violators), etc. The major advantage of controlled store tests over other testing methods is that they take place in a "real life” environment – real markets, real stores, real products and real consumers – but one that is tightly proscribed and where all key variables can be managed and monitored.
Measuring ROI
We at GfK Retail and Technology USA understand that the key objective in most controlled store tests is to identify that option, from among two or more alternatives, which results in the maximum bottom-line ROI for your brand and your company. Our team of research professionals will design and execute the study that will also maximize another ROI, the return on your research investment. Only GfK RT USA has the depth of experience and the breadth of market, outlet type and chain coverage to ensure that your test will deliver the results you require. We will:
- Identify the markets and types of stores that are most appropriate to test in
- Recommend the design that best fits the number and types of variables you wish to test, including sample size options that will meet the sensitivity required to reliably measure results as well as the cost and timing dictated by your marketing plan
- Collect the necessary POS data from each participating retailer or, if necessary, in stores that are not equipped with scanners, conduct physical audits to develop the necessary consumer sales data
- Arrange to sell in your product or program to the retailer(s)
- Set up and maintain the test conditions
- Process the data, analyze the findings and present them in coherent, insightful formats for decision making
- Complete your test on time and within budget
Matched Panel Designs
A frequently used methodology for controlled store tests is the Matched Panel design, which offers efficiency and effectiveness on both a measurement and cost basis.
In brief, this technique involves the set up of two (or more) panels of stores which are matched as closely as possible on pre-set criteria during a non-test "base” period. The test variable (a line extension, a new package design, a display, a shelf reset, etc.) is then introduced into one of these panels and results are compared to the other non-test panel (multiple matched test panels can be employed if two or more variables are to be tested).
Reading Results
- A major strength of this design is in the reliability and clarity of reading results.
- Sales (and share) performance can be compared directly in two ways:
TEST PANEL <-------------> CONTROL PANEL
BASE PERIOD <-------------> TEST PERIOD
- A straightforward calculation of indices provides a picture of the results; a statistical analysis determines the validity vs. the pre-determined objective.
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- All sample stores are measured through the base period to determine normal sales rates and shares. During the matching process two panels are selected to replicate each other as closely as possible. One (test panel) receives the test variable(s) while the other (control panel) does not.
- The two panels are then monitored to ensure that the test variable is maintained and represents the only difference in selling conditions between the two panels. Sales are measured during this test period to assess the performance of the test variable.
- Following the test period, the resulting sales data are analyzed for actual as well as covariant differences. Other statistical techniques, such as regression modeling, may also be employed, where necessary, when unanticipated competitive activity or other uncontrollable conditions occurred during the testing phase. Lastly, a post-test period may be measured to determine if there is any longer term effect as well as to evaluate if, and to what degree, the test conditions cannibalized any potential future sales.
Reliability and Accuracy
GfK Retail and Technology USA has worked with almost every major retail chain organization in the U.S. across the complete spectrum of trade channels. We can assist you in acquiring the retailer’s cooperation to conduct the test and collect the POS data necessary to complete the initial matching process as well as the test and post-test reporting.
- We are able to accommodate virtually any data file format in which retailers provide their data.
- Our systematic data entry and quality control procedures, along with our regular communications with the retailer, ensure that all data are verified, checked and processed to the highest industry standards.
- In the rare instances where scanner data may not be available, our local-market audit staff will conduct manual audits.
Reporting and Analysis
All data are collected at the individual UPC/SKU level which can then also be aggregated to provide data by types, formulas, sizes, brands, etc. up to and including the overall product category. Typically, reported measurements include the following by Base vs. Test vs. Post-Test periods:
- Retail Sales - units, dollars, equivalent units
- Brand Shares - units, dollars, equivalent units
- Relative Sales Changes - Test Panel vs. Control Panel
- Relative Gain (or Loss) in Test Panel vs. Control Panel
- Average Sales per Store Stocking
- Distribution and Out-of-Stock
- Retail Pricing Analysis
- Point-of-Sale Activity
Reports are graphically presented with full analysis and stat testing results to make them both comprehensive and actionable.
Additional In-Store Services
Our Field Management team can arrange for trained, local-market auditors and interviewers to execute any needed in-store monitoring or interviewing:
- Visit stores during the test and post-test periods to monitor and report on the presence (and proper functioning) of the POP being tested, out-of-stocks, shelf inventory, Digitally capture in-store conditions.
- Conduct in-store surveys of shoppers after they have experienced the test conditions, getting your customers’ immediate reactions and shopping behavior at the point-of-sale.
- Interview store personnel to gauge their opinions on the impact and maintenance of test conditions to uncover any latent issues before they become problematic to the program.
Benefits of GfK Retail and Technology USA
No other research partner can offer you a greater combination of experience, talent and capability. GfK Audits & Surveys provides:
- Proficiency in test design and matching store panels
- Ability to gain chain cooperation
- Facility to collect and process data
- Vast network of trained field personnel
- Superior analytic abilities to deliver insights, not just reporting
- Consummate reputation for superior quality research
- Affordability
- Assistance in preparing sales materials and presentations to both retailers and customers
LocationScan™
Pioneered by GfK RT USA, this is a powerful and unique tool for marketers. It provides the ability to measure sales and shares from every independent location where a product/category is located within a retail store.
It can be used to assess a product’s performance across multiple locations where it is currently stocked or it can measure the potential incremental sales (and ROI) to be gained by adding one or more new locations, be they temporary or permanent.
How It Works
LocationScan™ is a sophisticated form of controlled store testing. As such, it requires the project management and field force capabilities that only a research company like GfK RT USA can provide. However, the payoff is the type of highly valuable and actionable information about your sales performance that is otherwise unavailable.
Our experience assures you of consistency and quality in study design and execution:
- Designing the study and choosing the sample stores
- Arranging for the retail cooperation to a) control the stocking of your product and its competitors in each location within the store, b) set up separate UPC codes for each item for each of these locations, c) enter and verify each of these codes within the store’s POS system and d) receive and process the store’s electronic sales data
- Maintain the stocking conditions through regular store visits throughout the test period – assuring all products are coded by their location and not permitting out-of-stocks
- Preparing and analyzing results so that you and your organization can get maximum value from the findings
In-Store Testing Introduction
Download our "Introduction to In-Store Testing" (PPT)