Unilever’s AXE Gets Increased Action in Wal-Mart

What does one of the world’s largest CPG companies do when one of its best selling brands mysteriously isn’t selling in select stores, costing millions?

The AXE brand of men’s personal hygiene products is known for making a hot impression. However, parent company Unilever was feeling a chill in sales in numerous Wal-Mart stores across the U.S. and wanted to close the opportunity gap. RMX (Retail Marketing Xpress) delivered results that demonstrate the proven benefits of real-time knowledge and scheduling capabilities powered by NaturalInsight.

The Business Issue: A Gap Costing Millions

Unilever felt there was a significant sales gap of approximately 15% in select Wal-Mart stores. It believed the cause of the gap was the automatic replenishment system that was not effectively keeping AXE merchandise on the shelves. Unilever needed to understand the error and how to correct it to drive up AXE’s all commodity volume (ACV), i.e., entire store inventory sales, within the Wal-Mart system.

Business Summary:

• 15% sales gap
• ACV potential not realized
• Replenishment orders not accurate
• Needed to quickly understand and correct error

RMX — Merchandising Innovation at Work

Wal-Mart looked to Retail Merchandising Xpress (RMX) for an accurate and rapid answer. Using NaturalInsight, the latest in Software as a Service (SaaS) technology, RMX helps Fortune 500 consumer packaged goods manufacturing companies and retail customers increase speed to shelf, improve distribution, reduce salvage costs, enhance brand exposure and drive product movement.

RMX conducted a six-week test in 1,800 Wal-Mart stores to analyze problem areas and effectively close the ACV gap. Using data managed by NaturalInsight, RMX compared product schematics against what was actually displayed, and worked with store representatives to learn what was on the shelves, on order and in the stock room. Team members then conducted inventories to see if the data was correct and immediately fixed the inconsistencies.

“NaturalInsight played a pivotal role in the tremendous success of the AXE project. There is no other solution in the market that’s as comprehensive.”
Terri Stover
Business Development Manager, RMX

NaturalInsight Empowers Success

NaturalInsight gave RMX the ability to schedule and deploy representatives to 1,800 stores on a same day/next day basis. This kind of rapid, uniform approach would not have been possible with the scheduling procedures — phone calls and emails — used prior to NaturalInsight.

“The RMX team is at its best with a project that requires immediate action designed to produce immediate results,” according to Terri Stover, Business Development Manager at RMX. “Thanks to NaturalInsight, we were on top of the AXE situation in a matter of days.”

RMX created store-specific surveys within NaturalInsight using integrated TDLinx database information to ensure accuracy. When the completed surveys were faxed in, a small bar code identified the store, the specific project and the person to whom it was assigned, ensuring accuracy. A hard copy backup was automatically maintained for auditing purposes.

RMX generated six individualized reports within 24 hours at the close of the project. Because of NaturalInsight’s web-based interface and flexible format, Unilever was able to easily check the data against reported sales data. This process would have taken days or even weeks, had it not been for the automated, standards-driven approach provided by NaturalInsight.

Results: $3 Million Added to Annual Bottom Line

More than 10,000 store visits were completed in six weeks; data was compiled, recorded and measured; and the results were outstanding.

Prior to the surge period, ACV for the AXE line was running at 84.95%, equaling an opportunity gap of almost 15%. AXE’s ACV value jumped to nearly 92.6% after the surge period, resulting in approximately $3 million in additional annual sales. The results were verified using highly accurate inventory and sales data, showing that the sales increase was valid and long-lasting.

Unilever was enormously pleased with the results. According to a Unilever manager: “While the RMX team can’t influence how well the product sells, they did influence the product’s availability to the consumer. The most impressive gain was that the opportunity gap was closed. It was excellent, and RMX made a big difference!”

The process and findings were important to both Unilever and Wal-Mart. “We appreciated the opportunity to work with RMX’s professional team that conducted the Unilever in-store research,” stated a marketing executive at Wal-Mart. “Their highly skilled representatives were unobtrusive, knowledgeable and friendly — and helped us uncover areas that represent significant revenue opportunities for Wal-Mart.”

“NaturalInsight was the backbone that supported the RMX teams as they got the project done quickly and accurately,” stated Stefan Midford, president and CEO of South 49 Solutions, NaturalInsight’s holding company. “We develop solutions that enable our clients to achieve astounding results for companies like Unilever.”

Solid Results

• $3 million annualized net gain
• ACV increased to nearly 92.6% in six weeks
• Corrected replenishment order system
• Long-term impact ensures maximum sale potential

The AXE ACV challenge was successfully met through the combination of the committed, motivated and retail-savvy RMX team and NaturalInsight, the innovative market-driven solution. “NaturalInsight is an invaluable tool for us and played a pivotal role in the tremendous success of the AXE project for Unilever,” according to Terri Stover. “There is no other solution in the market as comprehensive as NaturalInsight.”

The AXE results have created a new set of expectations for Unilever’s retail partner performance.