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Consortium Announces Pilot Study Findings

The In-Store Metrics Consortium, a unique collaboration of leading manufacturers and retailers led by the In-Store Marketing Institute, announced the development of a reliable way to measure consumer reach at the category level in stores.

This model, tested and validated at four leading retailers in spring of 2006, equips manufacturers and retailers with a common language to determine consumer reach in-store. Laura Desmond, CEO, Starcom MediaVest Group, The Americas; Stephen Quinn, senior vice president of marketing, Wal-Mart; and Jim Stengel, global marketing officer, Procter & Gamble joined Peter Hoyt, executive director of the In-Store Marketing Institute, to present the findings of the pilot study and to discuss its significance on Wed., Sept. 27, during the In-Store Marketing Expo at McCormick Place in Chicago.

The In-Store Marketing Institute and several of the world's leading brand manufacturers formed the consortium which supported the study through funding and other resources: Procter & Gamble is the study's presenting sponsor; 3M Company, The Coca-Cola Company, The Walt Disney Company, Kellogg Company and the Miller Brewing Company are co-sponsors. Supporting retailers are Albertsons, Kroger, Walgreens and Wal-Mart.

Called Pioneering Research for an In-Store Metric (P.R.I.S.M.), this measurement model could only have been achieved with the unprecedented cooperation among consortium members and retailers, according to Peter Hoyt, executive director of the In-Store Marketing Institute.

The study demonstrates that:

  1. A metric can be developed as an industry model for measuring in-store marketing activity
  2. This metric can forecast traffic and unduplicated impressions with a very high degree of accuracy
  3. Accurate chain-wide projections are possible by using this metric and data from a limited samples of stores
The research team for the pilot study developed and validated a reliable metric: Store Traffic X Compliance X Unduplicated Impressions = In-Store Marketing Metric.

Significance for consumers, industry
"The fact that in-store marketing -- one of the most ubiquitous forms of media -- can now be measured is an industry breakthrough. We hope this will become an industry metric for calculating audience reach in stores, similar to the ways audience reach is measured for broadcast and other forms of mass media," said Hoyt.

"As consumers increasingly demand more from marketers, and assume more control over how they choose to receive marketing messages, it's clear that we need not only to understand but also to master these engagement 'touchpoints.' In-store marketing is a critical communications device. It deserves a seat at the table. Through this research, based on carefully tested methodology and rich with insights, we now have a powerful metric to build smarter, consumercentric in-store programs for our clients," stated Desmond.

"This study has tremendous importance for retailers. Informed by the sophisticated data that this new metric will provide, retailers, for the very first time, now can consider new store layouts and product adjacencies to create an in-store experience that is more relevant, and thus, even more satisfying," stated Quinn. "Our organization has scrutinized the methodology of this study. We find its implications for both retailers and consumers are far-reaching. We are eager to move forward with the next phase that will refine and expand the application of the metric."

"This project will unleash new potential for retailers and marketers. Armed with the information only available through this metric, they can create more efficient, pleasant experiences for consumers," explained Stengel. "I applaud the industry collaboration that it took to make this new measurement initiative possible."

To review a recording of the In-Store Metric Consortium's presentation on Wednesday, September 27, and for more information about the findings of P.R.I.S.M. and the In-Store Metrics Consortium, visit instoremarketer.org.

Published: October 2006

Source: In-Store Marketing Institute

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