Does Your Product Stand Out on the Shelf? A Fresh Look at Category Management and How AI Can Help You Win

Let's face it – category management in the fast-moving consumer goods (FMCG) sector has always been about the art and science of maximizing sales through effective product placement.

But here's the challenge: in today’s crowded retail environment, even the most experienced category managers face an overwhelming array of challenges. Just imagine trying to make your product stand out among over 40,000 SKUs competing for consumer attention in an average supermarket. It's like finding a needle in a haystack, isn't it?

Don't worry though – in this blog, we’ll explore common category management challenges and show how AI-driven solutions can transform your approach, ensuring your products capture attention, drive engagement, and boost sales.

The Hidden Complexities of Shelf Success

“Products receiving primary visual attention have a 50% higher chance of being purchased.”

Source: https://dcp-uk.co.uk/10-key-reasons-why-packaging-design-is-so-important/

The 7-Second Challenge

Here's a striking fact: consumers spend only 5-7 seconds deciding what to buy when they are in front of a shelf. Think about that for a moment - that's barely enough time to read this sentence! In such a short time, brands must capture attention quickly, or they risk being overlooked. While visibility is a key driver of sales, many brands struggle to optimize their shelf presence effectively​.

We all know the golden rule: products placed at eye level on the shelf tend to perform better. It makes perfect sense - this prime positioning naturally draws consumer attention, increasing the likelihood of purchase. However, there's more to the story. To truly drive sales, successful category managers need to understand how a brand performs within the full competitive context. This means taking a deeper look: how does the product stand out against competing SKUs? Which neighboring products complement or detract from your brand? How do its visual elements compare? Moving beyond eye-level placement reveals these critical factors that influence consumer decisions. The key to effective category management lies in a holistic view of the shelf, taking into account everything from the visual impact to competitor dynamics.

Making Sense of the Shelf

Picture your typical shopper: limited time, countless choices, and often, a pressing need to make a quick decision. That's why arranging products in a way that facilitates quick and easy navigation is crucial. A poorly organized shelf can overwhelm shoppers, driving them to walk away without making a purchase. Smart navigation strategies—such as creating clear product groupings or using goal-based organization—guide shoppers confidently through their decision journey and increase overall sales uplift. However, many traditional methods haven't kept pace with the latest insights on consumer visual attention and behavioral patterns.

The Data Dilemma

Here's where things get tricky: category managers often rely on historical data, intuition, or costly in-store trials to decide on product placement. These methods are not only expensive but also time-consuming, and they often fail to capture real-time consumer behavior insights. It's like trying to drive forward while only looking in the rearview mirror. Without objective data, it's difficult to understand how adjustments to product placement affect sales, making optimization a guessing game.

Time for a Change: Why Traditional Methods Are Holding You Back

For as long as we can remember, category managers have relied on traditional methodologies like manual shelf tests, historical sales data analysis, and expert intuition to optimize product placements. Think in-store eye-tracking studies and consumer surveys—tried-and-true methods offering insights into shopper behavior by observing how people interact with products on the shelf.

While these approaches have served us well in the past, they're starting to show their age. Let's look at why:

1. The Cost of Being Thorough: Would you believe that manual shelf tests or eye-tracking studies can cost upwards of $30,000 per test? And that's not all — they often need to be repeated multiple times throughout the year to gain actionable insights. This process is not only prohibitively expensive but also impractical for real-time decision-making​. Even worse, these studies are often localized, meaning their findings may not translate across different stores or regions.

2. Speed: The Missing Ingredient: Traditional tests can only scratch the surface of possible configurations. By the time you've gotten your results, the market may have already shifted. In today's fast-paced FMCG world, decisions need to be made quickly, but traditional methods just can't keep up.

3. The Gut-Feel Gap: We've all been there — relying on intuition or historical data alone when we know it's not enough. For example, a small adjustment in the layout could significantly boost visual attention, but without solid data, such opportunities slip through our fingers.

The AI Revolution: A Game-Changer for Category Managers

Here's the reality: in an industry where speed and precision are key, category managers who rely solely on traditional methods risk falling behind. Leading brands like Henkel, and Lavazza are already leveraging AI-powered solutions to gain real-time insights, streamline decision-making, and stay ahead of the competition. Want to keep pace? It's time to explore how AI can transform your approach to shelf strategy.

Let's explore how AI is revolutionizing category management:

1. Crystal-Clear Insights with Predictive Eye-Tracking: Gone are the days of waiting weeks for test results. AI-powered solutions deliver insights instantly. Trained on vast datasets of real human eyetracking, AI can predict how different shelf configurations will perform, helping you optimize product placement in real-time. Say goodbye to expensive in-store trials—AI offers actionable insights that reflect real and unbiased consumer behavior. Now you can understand which products capture attention and why, leading to smarter, data-driven decisions.

2. Navigation Made Simple: Imagine knowing exactly how to arrange your products for maximum impact. AI doesn't just guess—it knows where the consumer's eyes naturally gravitate, helping you create product arrangements that encourage faster decision-making and reduce choice overload. The result? A smoother shopping experience and higher sales conversion, as shoppers easily find and engage with your products.

3. Decisions at the Speed of Retail: Remember those lengthy discussions and testing cycles? AI cuts through all that, enabling 10x faster decision-making. Instead of endless deliberations, teams can quickly assess various scenarios and make informed choices within minutes. Think about the possibilities: significant cost savings and more time to focus on strategic initiatives. For large FMCG businesses, this means unprecedented agility and the ability to react to market changes faster than ever before.

4. Global Consistency, Local Impact: Managing multiple brands across different markets? Here's where AI really shines. AI allows for scalable testing and benchmarking across diverse retail environments, ensuring your brand story remains consistent while adapting to local needs. Plus, the ability to simulate various shelf setups reveals winning patterns that drive category growth—insights that would be impossible to discover through manual testing alone. The result? A clearer understanding of how to position your products within the competitive landscape, considering both visibility and brand interaction.

Looking Ahead: The Future of Category Management

Category management has always been a mix of art and science, but the retail landscape has evolved. In today's dynamic market, relying on traditional, intuition-based methods simply won't cut it anymore. FMCG category managers need tools that provide immediate, data-driven insights to stay ahead of the competition.

The verdict is clear: AI isn't just another trending technology—it's becoming essential for success in modern retail. Category managers who embrace AI will gain the competitive edge they need to thrive in this increasingly complex landscape.

Ready to take your shelf strategy to the next level? Discover how Brainsuite's AI-powered platform can transform your approach, improve product visibility, and boost your sales. Let's talk and take the first step.