Retailing is a constantly changing enterprise that has been impacted by a wide variety of factors in recent decades. As a result, traditional small retailers have had to evolve into more specialized businesses or give way to larger 'big box' type stores. Part of the competitive edge developed by small retailers and often inaccessible to larger retailers is the ability to provide individualized service and product knowledge. Imperial Multimedia has developed a Retail Kiosk Solution that enables any retailer to provide an unparalleled and consistent level of product knowledge and individualized service to their customers today.
The founder of Imperial Multimedia, Fred Lochner, spent most of his childhood helping out in his family's neighborhood hardware store. Over the years the family business grew to include a number of stores that they owned and operated, each of which had to grow to keep up with changing times and remain competitive. Employees who were recruited as store clerks and department managers would often be involved in a variety of tasks including customer service, ordering, and merchandising. As the number of products increased in each store, employees were challenged to keep their product knowledge current while still providing the level of service their customers had become accustomed to. Value-added products began to compete for shelf space while adding greater complexity to the shopping experience. For example, in the past a customer could go to the hardware store and simply purchase a can of motor oil. Today a customer needs to not only determine which type of motor oil to purchase, but must make a decision between several competing brands as well. A customer service solution needed to be found that could provide accurate and consistent information without competing for employee's valuable and limited time.
When Fred founded Imperial Multimedia he envisioned an interactive touch-screen solution that could be incorporated at the point of sale to illustrate the features and benefits of products and provide printable product comparisons and user instructions. While the displays were initially intended as self service instruments, the firm quickly realized their value and capacity to increase product knowledge in store staff at all levels.
The Projects
Two pilot projects were developed to test this theory in each of two different retail environments. The first project created a partnership between Weber-Stevens Product Co., manufacturer of the Weber® Grill and Ace Hardware. An application was developed to market Weber Grills. The Weber Grill is a premium product and has a corresponding price point. For example: Weber gas grills retail between $400 and $1200 depending on the chosen model and features, while competing grill manufacturers may sell their product for as little as $200 at discount retailers. What's the difference and what justifies the difference in price? Imperial Multimedia initiated a study that determined that most front line employees were ill-equipped to answer these questions.
Imperial Multimedia worked with Weber® and Ace Hardware to develop a kiosk which could be placed with the grills on the merchandising floor. It included a large and highly visible touch screen LCD monitor, dedicated computer, four inch printer and custom designed enclosure. An attractive Main Menu prompted customers to: 'Choose a Grill', select 'Grilling Tips', explore 'Recipes' or find 'Accessories'. Touching the 'Choose a Grill' button would bring up a menu of all available Weber models. Upon choosing a grill the kiosk presented a short video presentation, highlighting the features and benefits of the chosen model and an offer to print a product comparison on demand. The 'Grilling Tips' area presented short videos about a variety of subjects including food preparation, grill cleaning, and more. The 'Recipes' selection would open a searchable data base of hundreds of recipes from the Weber® test kitchen, all of which could be explored on screen or printed on a user friendly 4" x 6" recipe card. A later version of the software allowed retailers to integrate other branded products into the recipe format for cross-marketing purposes.
The kiosk were installed during the peak of the grilling season from May through August to best track use and impact on sales. The success of the project was evaluated using a variety of methodologies. The kiosk application had been designed to incorporate customer tracking so reports could be generated that provided specific information about user habits such as time spent, frequency, popular products, and more. In addition, comprehensive sales information was evaluated using the store's existing POS system and on-site observation. The degree of success experienced during the pilot program was staggering! Comparisons of comprehensive sales showed a relative net increase of 70% over prior year sales during the same period. Employees were routinely observed reciting features and benefits statements such as "Patented Flavorizing Bars" and "Lifetime Nickel coating" that had been presented in the kiosk. Tracking results clearly indicated that customers were using the kiosk regularly and provided a means of determining the most effective location and method of presentation for the future.
The second pilot project was launched in a retail grocery environment. Iowa Beef Processors (IBP), now Tyson Foods, is the worlds largest supplier of fresh meat and poultry. Tyson Foods was working to increase sales of prepackaged, or case ready products, to their retailers. Case ready products are shipped directly from the producer to the store ready to sell. Prior to the development of a wide variety of case ready products the consumer would take a trip to the local butcher shop or grocery, visit the meat counter and ask for product based on the meal to be prepared. For example a beef roast to feed six people. The neighborhood butcher would cut up a roast and wrap it while providing verbal instructions on how to prepare the meal. The customer may, or may not, have known exactly what cut of meat they ended up with. Even if they were told, they probably wouldn't know the difference, nor did it matter.
Case ready product is convenient and safe for both consumer and retailer. The meat case at a 'big box' grocery is full of a wide variety of packaged meats of all types and quantities. Research shows that 75% of the retail buyers of packaged meats are women aged 25 to 52. When surveyed, most cannot identify these cuts of meat or relate them to specific recipe options. This can discourage many customers from even purchasing the product at all. For example, consider cuts of meat with names like "chuck top blade" or "carne' picata," whose names give no indication of their intended use. Imperial Multimedia approached Tyson Foods who had concurrently identified this issue, and proposed a kiosk application that would solve this problem. Tyson Foods accepted the proposal and funded a pilot project to develop a site-specific application for one of their largest customers, the Wal-Mart Corporation.
Based upon research conducted in the stores by Imperial Multimedia, a software application was developed that addressed topics such as 'Choose a Cut,' 'Recipe Ideas,' and 'Preparation and Cooking Tips.' While Wal-Mart became the charter retailer for testing, the project was developed with any major food retailer in mind. Several different enclosures and mounting designs were created and initial testing took place in Wal-Mart's home state of Arkansas. Following the initial test, an identical test was conducted at Cub Foods Stores in the Minneapolis/St. Paul region. In both instances the pilot program was very successful and returned significant positive results in sales and customer satisfaction. The kiosk was used frequently with numerous recipes printed and related comprehensive sales increases recorded.
Conclusion
In the changing landscape of retail sales, retailers must continue to pursue methods that make the buying experience easy and satisfying for the consumer and increasingly cost-effective for their businesses. In both of the projects explored here, Imperial Multimedia was able to craft a custom solution that resulted in outstanding performance under 'real-world' conditions. Imperial Multimedia continues to craft unique and effective solutions for the retail environment and a wide variety of other clients. For more information visit www.imperialmultimedia.com.
