Kellogg sees 18% sales bump through pilot for VR merchandising tool

Dive Brief:

Kellogg was a test partner on a virtual reality (VR) merchandising solution that embeds eye-tracking technology into a mobile VR headset, according to a press release. The solution, developed by Accenture's Extended Reality unit, leverages Qualcomm technology and aims to help brands find better ways of gathering consumer data and conducting market research.
Kellogg tested the solution around the launch of a Pop Tart Bites product with the intention gleaning deeper behavioral data compared to its usual product testing, which relies on online surveys and in-home users tests. Through the pilot, Kellogg determined that placing the Pop Tart Bites on lower shelves was optimal, rather than on top shelves. The adjustment in placement led to an 18% increase in brand sales during the test, the company said.
The VR experience immerses consumers in a full-scale, simulated store where they can move through the space, shop, pick up products and put them in shopping carts. Brands can monitor what consumers look at, for how long and why. Accenture will showcase the solution at Mobile World Congress in Barcelona, Spain, later this month.

Dive Insight:

The new solution combining immersive content, eye-tracking and analytics shows how VR, which has seen its hype cool considerably in consumer-facing applications, still has rich potential for marketers when it comes to B2B functions and research like market testing. Kellogg's pilot for its new Pop-Tarts product uncovered some insights that go against common industry wisdom when it comes to shopper marketing — such as recommending lower-shelf placement — but ones that also provided a bump to sales.

Marketers are investing in VR to provide unique, memorable and customizable shopping experiences. Revenue linked to VR technology initiatives is expected to jump 3,000% over the next four years and is projected to generate up to $1.8 billion for retail and marketing companies by 2022, according to a Pymnts.com research. VR and other immersive technologies can help consumers better research products and try them out, both at home or in-store, before purchasing.

Retailers have embraced VR and sister technologies like augmented to learn more about their customers and offer more personalized experiences. Beauty giant Coty recently debuted a multisensory VR experience that immerses consumers into its fragrances and helps shoppers find a new scent from its fragrance portfolio.

Shoppers wear a VR headset and pick up scented stones to activate a video that brings the scent to life. They provide their name, email address and the fragrances that they wear, and Coty then offers personalized recommendations to help them find a new fragrance.