The CPG-packaging RFID integrator, Checkpoint Systems Inc., has made an initial minority investment in Goliath Solutions, a start-up developer of RFID technology for point-of-purchase advertising and display compliance, targeting grocery stores, drugstore chains, mass merchandisers, and convenience stores.
Strategically positioned advertising and marketing displays within a retail store’s dynamic selling space can dramatically increase consumer purchases (not to mention retailer advertising revenues). According to Checkpoint, consumer packaged goods companies (CPGs) in the USA spend some US$17 billion each year to produce, distribute, and monitor their promotional displays and signage within retail environments. But, approximately 50% of the time, their displays are not deployed in a timely and consistent manner.
Since CPG companies spend so heavily on promotional displays, there is a fundamental need for them to confirm the deployment and positioning of the materials during the negotiated display period. Traditional use of store clerks, sales staff, and outside audit firms to monitor displays can leads to untimely, incomplete, or even inaccurate data. Checkpoint’s investment in Goliath is aimed at producing a more cost efficient and effective solution to the problem.
The answer to the problem may lie in an advertising space equivalent of the much discussed ‘smart shelf’ concept. Goliath’s RFID tags are designed for easy integration into the point-of-purchase (POP) display to enable automatic monitoring and proof-of-placement when the display is positioned at the intended location. A wireless network of in-store readers continuously monitors POP status, relaying that information back to Goliath’s central database for secure access by the advertisers and retailers alike.
When the system indicates that the display has not been deployed appropriately, has been moved beyond the dynamic selling zone, or even dismantled prematurely, Goliath’s web-based compliance and notification system ensures that appropriate personnel are notified immediately to ensure the maximum return on trade advertising investments.
Backing the Giant
Checkpoint’s initial US$2.5 million investment is a part of its larger investment strategy to innovate and grow RFID-based solutions that support consumer product brand owners and retailers from source to shelf. Checkpoint will make its design engineering, manufacturing, and field service resources available to Goliath to help drive the company’s growth into the retail market.
“Goliath plans to develop new information solutions aimed at solving the investment compliance challenge of the POP industry to optimise their trade dollar investments,” said George Off, chairman for Checkpoint Systems.
For additional information:
- Visit Goliath at http://www.goliathsolutions.com
- Visit Checkpoint at http://www.checkpointsystems.com
Sources: Checkpoint Systems Inc.; Goliath Solutions
Copyright 2003 UsingRFID.com
Reprinted with permission from Using RFID (http://www.usingrfid.com/news)
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