Solution demonstrates business value of VR, results in 18 percent
increase in brand sales during testing
NEW YORK -- (Business Wire)
Accenture (NYSE: ACN), Qualcomm Technologies, Inc., a subsidiary of
Qualcomm Incorporated (NYSE: QCOM) and Kellogg Company (NYSE: K) have
collaborated to develop and pilot a solution that embeds eye tracking
technology in a mobile virtual reality (VR) headset to reinvent how
brands and retailers gather critical consumer data and perform market
research.
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The Accenture
Extended Reality (XR) practice developed the VR
merchandising solution utilizing a Qualcomm® VR reference
design headset, powered by Qualcomm® Snapdragon™ 845 Mobile
VR Platform. The VR merchandising solution features embedded
eye-tracking along with mixed reality software from InContext
Solutions and eye-tracking data analytics capabilities from Cognitive3D.
The resulting experience immerses consumers in a full-scale, simulated
store, enabling them to move through the space, shop, pick up products
and place them in carts – all while monitoring what consumers are
looking at, for how long and why. The mobile solution is designed to
allow companies to extend their reach to more geographically dispersed
participants and perform market research faster, more affordably and on
a larger scale.
The solution was tested in collaboration with Kellogg Company around the
launch of its new Pop Tarts Bites product. The mobile VR eye-tracking
solution provided far deeper behavioral data than standard testing,
which typically relies on online surveys and in-home user tests. In
fact, this new data led to an entirely different merchandising
conclusion than what was determined by traditional methods. Rather than
placing Pop Tarts Bites on higher shelves, which conventional testing
indicated was where consumers expected to find new products, the VR
solution demonstrated that optimal placement for the new product was on
lower shelves. This led to an increase in brand sales of 18 percent
during testing.
“Our VR merchandising solution has the potential to transform product
placement by examining consumer buying behavior in a holistic way,” said
Raffaella Camera, global head, Innovation & Market Strategy, Accenture
Extended Reality. “By combining the power of VR with eye-tracking and
analytics capabilities, it allows significant new insights to be
captured while consumers shop by monitoring where and how they evaluate
all products across an entire shelf or aisle. Ultimately, this enables
product placement decisions to be made that can positively impact total
brand sales, versus only single product sales.”
Jenny McDaniels, senior manager of Category Strategy at Kellogg Company
added, “When trying to best assess a future product’s shelf placement,
this new methodology provided optimal guidance from both a product and
category perspective. This approach provided multiple data outputs,
which in turn, created a holistic solution that would drive success for
both the category and product.”
“XR provides transformative value to the enterprise,” said Patrick
Costello, senior director of business development at Qualcomm
Technologies, Inc., “At Qualcomm Technologies, we develop foundational
XR technology through our VR reference designs that are engineered to
enable companies to evaluate and quickly launch devices. This proof of
concept with Accenture and Kellogg Company demonstrates the benefits of
full immersion and eye-tracking and we expect several customers to
follow with similar deployments.”
This new pilot solution represents an important step toward transforming
retail merchandising. Brands spend considerable time, money and manual
effort to determine optimal product placement and assortment on store
shelves, as well as an ideal pricing strategy. However, these efforts
tend to be limited in terms of the depth and quality of data garnered.
The VR merchandising solution can provide deeper data while expediting
the merchandising process and reducing costs at scale by:
- Expanding testing reach to diverse locations: Companies can
invite geographically dispersed consumers to use the mobile VR
headsets for product testing in their homes, at brick-and-mortar
stores, during product roadshows or at any large consumer gatherings.
- Improving experience in branded environments: Shoppers can walk
through realistic and branded virtual store models, look at shelves at
their discretion, pick up and examine products, and place selections
directly into their carts.
- Increasing the dataset for analytics: During the shopping
process, companies can gather data using eye-tracking technology that
is built into the VR headset in a manner that does not interrupt the
shopping experience. The resulting analytics provide detailed insights
into actual consumer behavior, such as which products attract their
attention, where they look first or gaze longest, and what helps to
trigger buying decisions.
- Decreasing costs while improving flexibility: The VR-based
solution makes it easy to test a variety of retail designs and
layouts, cost effectively. In a matter of minutes, brands and
retailers can modify store and shelf layouts in the VR environment,
rotate product inventory and experiment with pricing to determine an
optimized plan.
As a strategic initiative of Accenture, the Accenture Extended Reality
(XR) practice uses human-centered design principles, deep industry
knowledge, global scale, and expertise in combinatorial technologies
such as AI and IoT, to help companies imagine, create and deliver
impactful XR experiences to unlock new business value. For more
information, please visit https://www.accenture.com/us-en/insights/technology/virtual-reality-merchandising
The VR merchandising solution will be on display at MWC
2019 Barcelona from February 25-28 in the Accenture booth (Hall 2,
2H20, by appointment only, please contact Jens.Derksen@accenture.com).
It will also be on display at South by Southwest® (SXSW®) from March
8-11 in the Accenture
Interactive Experience Cantina, which will be a prime innovation
station, packed with additional cutting-edge activations featuring the
latest emerging technology.
About Accenture
Accenture is a leading global professional services company, providing a
broad range of services and solutions in strategy, consulting, digital,
technology and operations. Combining unmatched experience and
specialized skills across more than 40 industries and all business
functions — underpinned by the world’s largest delivery network —
Accenture works at the intersection of business and technology to help
clients improve their performance and create sustainable value for their
stakeholders. With 469,000 people serving clients in more than 120
countries, Accenture drives innovation to improve the way the world
works and lives. Visit us at www.accenture.com.
About Qualcomm
Qualcomm invents breakthrough technologies that transform how the world
connects, computes and communicates. When we connected the phone to the
Internet, the mobile revolution was born. Today, our inventions are the
foundation for life-changing products, experiences, and industries. As
we lead the world to 5G, we envision this next big change in cellular
technology spurring a new era of intelligent, connected devices and
enabling new opportunities in connected cars, remote delivery of health
care services, and the IoT — including smart cities, smart homes, and
wearables. Qualcomm Incorporated includes our licensing business, QTL,
and the vast majority of our patent portfolio. Qualcomm Technologies,
Inc., a subsidiary of Qualcomm Incorporated, operates, along with its
subsidiaries, all of our engineering, research and development
functions, and all of our products and services businesses, including
the QCT semiconductor business.
About Kellogg Company
At Kellogg Company (NYSE: K), we strive to enrich and delight the world
through foods and brands that matter. Our beloved brands include Pringles®,
Cheez-It®, Keebler®, Special K®, Kellogg's Frosted Flakes®, Pop-Tarts®,
Kellogg's Corn Flakes®, Rice Krispies®, Eggo®, Mini-Wheats®, Kashi®, RXBAR®
and more. Net sales in 2018 were approximately $13.5 billion, comprised
principally of snacks and convenience foods like cereal and frozen
foods. Kellogg brands are beloved in markets around the world. We are
also a company with Heart & Soul, committed to creating three billion
Better Days by the end of 2025 through our Breakfasts
for Better Days global purpose platform. Visit www.KelloggCompany.com
or www.OpenforBreakfast.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190214005080/en/
Contacts:
Christina McDonald
Accenture
+1 415 537 7997
christina.mcdonald@accenture.com
Macey Davis
Qualcomm Technologies, Inc.
+1 760 420 3904
macedavi@qti.qualcomm.com
Kellogg Media Hotline
+1 269 961 3799
media.hotlines@kellogg.com
Source: Accenture
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