Kimberly-Clark Gets an Early Win
The global health and hygiene company is using RFID to track promotional displays of its incontinence products. The result? K-C has improved its execution of in-store promotions by more than 20 percent, which should lead to increased sales.
By Mark Roberti
April 1, 2007—Product promotions are a big deal for most consumer packaged goods companies, especially in the United States. In many cases, the money spent on securing premium floor or shelf space for special displays in a retail store, advertising the products, paying merchandising agents to check that the displays are out and other costs can equal or exceed the cost of manufacturing the product. But all too often, the displays aren't out in time, and both the manufacturer and the retailer lose out on potential sales. Thanks to RFID technology, this might soon change.
Kimberly-Clark, the global health and hygiene company based in Irving, Texas, has been testing radio frequency identification's ability to improve the execution of its in-store promotions. The company worked with OATSystems to conduct a pilot program with Wal-Mart to track and manage promotional displays of its Depend and Poise incontinence products in hundreds of stores. The result: improved execution of in-store promotions by more than 20 percent at RFID-enabled stores.
Several years ago, K-C assembled a brain trust to figure out how the company could take advantage of RFID technologies in the short, medium and long term. Mike O'Shea, director of auto-ID sensing technologies, leads the RFID technology team responsible for developing solutions, evaluating hardware and software, and testing it before it is deployed. Phil Therrien, RFID implementation manager, is in charge of the business team representing the business managers who will use the technology in
April 1, 2007—Product promotions are a big deal for most consumer packaged goods companies, especially in the United States. In many cases, the money spent on securing premium floor or shelf space for special displays in a retail store, advertising the products, paying merchandising agents to check that the displays are out and other costs can equal or exceed the cost of manufacturing the product. But all too often, the displays aren't out in time, and both the manufacturer and the retailer lose out on potential sales. Thanks to RFID technology, this might soon change.
Kimberly-Clark, the global health and hygiene company based in Irving, Texas, has been testing radio frequency identification's ability to improve the execution of its in-store promotions. The company worked with OATSystems to conduct a pilot program with Wal-Mart to track and manage promotional displays of its Depend and Poise incontinence products in hundreds of stores. The result: improved execution of in-store promotions by more than 20 percent at RFID-enabled stores.
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| Left to right: Phil Therrien, Mike O'Shea, Rick Polzin and Daniel Bowman |
Several years ago, K-C assembled a brain trust to figure out how the company could take advantage of RFID technologies in the short, medium and long term. Mike O'Shea, director of auto-ID sensing technologies, leads the RFID technology team responsible for developing solutions, evaluating hardware and software, and testing it before it is deployed. Phil Therrien, RFID implementation manager, is in charge of the business team representing the business managers who will use the technology in
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