How Big CPGs are Streamlining Sales and Design through Augmented Reality

The Retail industry has evolved a great deal behind the power of technology, led by the eCommerce revolution. The Consumer packaged goods (CPG) industry hasn’t seen much innovation to help accelerate sales to retailers. Yet, there are an array of digital solutions helping retailers sell to consumers more efficiently while keeping internal teams connected through POS systems. Retailers who have pursued new-age tech solutions have had a much clearer vision of who’s buying which products and where, both in-store or online. With augmented reality, CPGs can also optimize their sales process, much like retail has grown over recent years.

CPGs now have the luxury of augmented reality and it’s being used in a way that has helped shorten their sales cycle when selling to retailers. How? It’s simple — augmented reality allows for a collaborative vision on the sales floor.

Augment has introduced many Consumer packaged goods companies to the next wave of technology that is helping them not only shorten the selling process to retailers but even the before and after stages of design and compliance.

The Future of Manufacturing Design

“There is something magical about our customers being able to manipulate a display that doesn’t exist yet,” says Jason Hays, a packaging specialist at Dusobox.

DusoBox, a US packaging manufacturer, uses augmented reality to streamline their design process and optimize in-store sales. Manufacturing design can be costly if multiple renditions are needed to make the sale to retail clients. CPGs are spending fortunes in the production and shipping of mockups because the current mockup process doesn’t involve product visualization in an interactive manner; rather, the design isn’t accurately depicted with flat 3D representations.

Augmented reality is bringing an experience to this process. Share real-size 3D designs with your customers to experience how physical mockups would appear in the store’s true environment.

Selling directly to consumers

Manufacturers have used Augment to visualize in-store placement for products and point of sale displays, but more CPGs are selling direct-to-consumer, another area where manufacturers can capitalize on augmented reality. Whether it’s getting design approval in critical stages of your supply chain or 3D product visualization for consumer purchases, AR is aiding sales for manufacturers. Above, Siemens uses Augment to bring their parts to life just through a simple scan of this print catalog.

Tailor the Selling Experience

Tailored experiences are a trend that has been fruitful in the retail arena, especially for eCommerce shoppers. Item wishlists and product recommendations are both personable experiences that ultimately increases the likelihood that a buyer will purchase in a shorter time frame. Tailored marketing and selling is also necessary for POS manufacturers who’re looking to out-do competition when selling to retailers.

A new study from AMG Strategic Advisor, “Trend Behind the Spend” offered great insight into the data trends of CPG companies. The study analyzed 235 CPG companies selling products among 110 different categories. The AMG report estimated that two out of three CPG companies use retailer-specific marketing programs, including 80 percent of large CPG companies.

Manufacturers are just beginning to implement deliberate practices to personalize the marketing and sales experience for retail and consumer buys. Big CPG companies are leveraging augmented reality as a prominent tool within their tailored marketing approach.

The technology evolution in the retail space has shifted the way that sales reps are pitching products. Territory sales reps are no longer working off of a generic template anymore. Mobile augmented reality solutions, like Augment, are powering product visualization to show what a complete POS display would look before anything has been shipped.

Manufacturers and CPG companies are using augmented reality as an end-to-end solution. By uploading your own 3D models, you’re able to accurately depict specific POS displays. Launch your models, at true scale in real-time and position them in the store environment until you’re satisfied with the placement. Whether it’s a floor display or a shelved product, this visual collaboration between CPGs and retailers has been missing, until now. Given the growth of online marketplaces like Amazon, manufacturers are able to cut out the middle man and sell directly to the end consumer. Thus, there will be an inherent need for product visualization for online purchases as well. Will your new LG washing machine fit in your laundry room? Does the coffee maker you want to buy look good in your kitchen? These are the things shoppers will get to see before purchasing in the near future. When selling to retailers and the everday consumer, augmented reality is helping forward-thinking CPGs shorten the selling process and stabilize compliance.

Streamlining Compliance

Planograms will soon be obsolete as the need for flat diagrams have fallen to the wayside. Planograms have been used to show where products and displays should be placed but they often aren’t effective when it comes to compliance.

The National Association for Retail Merchandising Services discovered that 44 percent of the stores studied were unsuccessful in resetting their planograms within 13 weeks. With that said, a majority of merchandise never gets placed in the store — leaving low compliance rates and a waste of product for manufacturers and CPGs.

Before, reps would have to trust that their shipped materials would get there and be placed properly. Yet, a misplaced end cap display could greatly affect sales in a highly-trafficked store.In an effort to stay on the same page with clients, big CPG brands like L’Oreal and Coca-Cola have used Augment to remove the guessing game when managing in-store placement of POS materials.

Originally published at on April 19, 2016.

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