Note: Descriptions are shown in the official language in which they were submitted.
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ENHANCED SHOPPING & MERCHANDISING METHODOLOGY
CROSS REFERENCE TO RELATED APPLICATIONS
[0001] This application claims priority based on United States Application No.
14/673,003 entitled "ENHANCED SHOPPING & MERCHANDISING
METHODOLOGY" filed March 30, 2015, which is a continuation-in-part of U.S.
patent
application Ser. No. 13/047,142, filed on Mar. 4, 2011, which, is a
continuation of U.S.
patent application Ser. No. 12/701,849, filed on Feb. 8, 2010, now U.S. Pat.
No.
7,873,547, which is a continuation of U.S. patent application Ser. No.
12/357,519, filed
on Jan. 22, 2009, now U.S. Pat. No. 7,689,473, which, in turn, claims priority
to and the
benefit of U.S. Provisional Patent Application No. 61/037,820, filed on Mar.
19, 2008,
hereby incorporated by reference.
BACKGROUND OF THE INVENTION
1. Field of the Invention
[0002] The present invention relates to an enhanced merchandising methodology
for use
in grocery and other retail applications.
2. Description of the Prior Art
[0003] Grocery stores, as well as other retail markets, are constantly trying
to make
shopping easier. Bar codes, for example, as illustrated in FIG. 3, are known
to be placed
on individual retail items and grocery items. Such bar codes enable retail
items to be
quickly identified by way of a bar code scanner for items being purchased by a
consumer, as illustrated in FIGS. 1 and 2.
[0004] Consumers are also known to use bar code scanners to scan empty grocery
containers at home as the products are consumed to create a shopping list. For
example,
U.S. Pat. No. 5,047,614 discloses a method and apparatus for computer-aided
shopping
system for assisting a consumer with shopping. The '614 patent discloses a
system in
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which a consumer utilizes portable bar code scanner 10 having a removable
electronic
memory, i.e. smart card 132, to scan bar coded items at home after the item
has been
consumed. In that system, the consumer thereafter removes the smart card 132
from the
scanner 10, proceeds to a retail store, and then interfaces smart card 132
with a dedicated
terminal 130 in the retail store, wherein the terminal 130 reads data from
smart card 132
and then compiles a printed shopping list 60 for the consumer. The shopping
list 60 may
include quantity, location, and price and arrange the items to provide the
customer with a
preferred route through the store when picking items.
[0005] U.S. Pat. No. 6,513,017 discloses a system and a method for household
grocery
management. The system includes a bar code scanner 22 operable to scan bar
codes on
grocery items at a consumer's home. Bar codes on food items that are consumed
are also
scanned. As such, the system disclosed in the '017 patent is able to maintain
a current
inventory of household groceries and generate a replenishment list when the
inventory of
various food items on the list drops below a predetermined value. The system
is
connected to a grocery clearing house for electronically transmitting the
replenishment
list to a grocery store by way of the clearing house.
[0006] U.S. Pat. No. 7,171,378 discloses a portable electronic terminal and
data
processing system which includes a portable terminal 40 for use with a
personal
shopping system 10 in both a user's home 12 and shopping establishment 14. The
portable terminal 40 includes a bar code reader for reading bar codes
associated with
various goods. The data associated with the bar codes is stored in a memory 46
in the
portable terminal 40. In order to place an order for the items scanned by the
bar code
reader, the bar code related data may he transferred from the portable
terminal 40 to a
host computer 16 or downloaded to an in-store kiosk portable terminal-
receiving station
[0007] U.S. Pat. No. 7,213,766 discloses a multi-interface compact personal
token
apparatus which. includes a compact personal token apparatus (e.g., standard
USB
memory stick device) which may be utilized at a consumer's home to store
downloaded
coupons, wherein the coupons may be redeemed when plugged into a participating
grocery store or retail merchant point-of-sale (POS) device, e.g. cash
register, kiosk etc.
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[0008] US Patent Application Publication No. 2002/0027164 Al discloses a
system
which includes a portable computing apparatus for use in a weight management
program.
The system includes a portable computing apparatus, such as a personal digital
assistant
(PDA 10), for aiding a user in monitoring the consumption of consumable items
and in
reordering the items. The PDA 10 includes barcode reader 13 for inputting
information
identifying various items as they are consumed by the user. The PDA 10 may be
utilized
to prepare a printed shopping list for the person, to show a list using a
display, to display
a map of the store showing the location of the items ordered, to display a
list of items in
an order related to the order that they will be encountered in the store, to
check off items
as they are purchased, and to suggest product alternatives on demand.
Additionally, the
PDA 10 may incorporate a removable memory for transferring consumable item
data to
another personal computer.
[0009] US Patent Application Publication No 2002/087415 Al discloses a method
and a
system for on-line shopping utilizing a personalized shopping list and an
electronic
network. The method is for ordering items found in a person's home, wherein a
personal
scanning device is utilized to scan bar coded items to create a shopping list
which may
be transmitted to a remote location for processing and delivery of the items
found on the
list.
[0010] US Patent Application Publication No 2004/0128210 Al discloses a
marketing
information system for remote computing platforms. The system is for managing
a
consumer's shopping list and for interfacing that list with a retailer's
computing system
prior to beginning a shopping trip, wherein hand-held computing devices 34 and
35 may
be equipped with a barcode scanner for scanning universal product codes
("UPC") on
products that a user may like to add to their shopping list. The hand-held
computing
devices 34 and 35 are configured to be interfaced with the retailer's system
to allow the
items in the consumer's list to be organized according to how the consumer
would
encounter them in retail store environment 186, e.g., aisle number and/or
shelf location.
Additionally hand-held computing devices 34 and 35 may incorporate flash
memory 68
to store the consumer's inventory.
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[0011] US Patent Application Publication No 2006/0047577 Al discloses a
system. and
a method for preparing an electronic shopping list and a path through the
store. The
system matches a customer's shopping list with the order that items are found
in a store
to optimize the customer's shopping experience.
[0012] The use of bar code scanners by consumers for use with grocery items is
well
known in the art. For example, a trade publication entitled: "CS1504 Handheld
Barcode
Scanner", http://www.symbol.com/products/bar-code-scanner/general/cs1504;
discloses
a consumer memory scanner which can be used to scan bar codes on items that
can be
used with an Internet/Intranet store kiosk. Another trade publication
entitled; "iGrocer--
A Ubiquitous and Pervasive Smart Grocery Shopping System", by Shekar et al,
SAC
2003, Mar. 9-12, 2003, Melbourne, Fla.,
http://www.icta.ufl.edu/projects/publications/HELAL-igrocer.pdf, discloses a
smart
phone with a bar code scanner. Another trade publication entitled;
"Intelliscanner.TM.
Kitchen Companion", http://intelliscanner.com/products/kitchen/index.html,
discloses a
portable bar code scanner for home use for scanning bar codes on retail
products at home
and creating a shopping list.
[0013] Another trade publication entitled; "Symbol Technologies CS 2000 Memory
Scanner Endorsed For Use By Leading Web Grocery Companies",
http://www.symbol.com/assets/tools/print.html, discloses a portable bar code
scanner for
use in creating a grocery list. The systems described above are not in wide
spread use
because of the lack of incentive for grocers and retailers to implement the
system. More
specifically, the systems described above are simply used to collect, compile,
and
compose consumer shopping lists. In order to implement such systems, several
elements
must be put in place--(i) data collection hardware and software, such as
barcode scanning
equipment at the consumer's site would need to be provided for each consumer;
(ii) web
portals or a dedicated in-store terminal at the grocery or retail store for
processing,
compilation, and printing would need to be established; (iii) a database of
available
grocery or retail items would need to be stored and accessible by the terminal
would
need to be built, maintained and continuously updated as grocery or retail
items are
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added or dropped from the store's available merchandise to facilitate the
process and, for
those systems which provide locations for grocery or retail items on a
shopping list,
updated every time any grocery or retail items changed locations or were
located or
relocated to a free standing point of sale display; and (iv) other elements of
cost such as
customer support.
[0014] Unfortunately, such systems require a significant and continuous
investment in
overhead while providing little or no value or incentive to the grocer or
retailer or the
food item vendors. As such, the systems disclosed above are not in widespread
use.
Consequently, consumers must continue to shop in the conventional and
cumbersome
manner even though technology is obviously available that would greatly
facilitate
shopping. Thus, there is a need to provide incentive to grocers and retailers
to adopt such
systems in order facilitate consumer shopping.
SUMMARY OF THE INVENTION
[0015] The present invention relates to a system for facilitating grocery or
retail
shopping for consumers while providing incentive to consumer packaged goods
manufacturers ("CPGs"), grocers and retailers to provide the system. The
system
includes a portable seamier with a memory device, such as a portable memory
device. In
one embodiment, the system may include an in-store terminal, for example,
configured
as a standalone terminal or a part of computer network. The in-store terminal
is used to
receive the information from the memory device and print out the shopping
list. In an
alternative embodiment, the application may be web-based obviating the need
for an in-
store terminal. In the web-based application, the shopping list may be
displayed, for
example, on a smart phone, or printed from any terminal connected to the
Internet. From
a shopper's perspective, groceries to be purchased are scanned at home after
the items are
consumed to form a shopping list that facilitates shopping. In essence, the
system is a
replacement of the traditional hand written "shopping list" used by many
consumers. In
accordance with an important aspect of the invention from a grocery or
retailers
perspective, the system provides incentives to grocers and retailers to
implement the
system by way virtual merchandising which can be sold to product manufacturers
to
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provide additional income to such grocers and retailers. These additional
sources of
income provide the incentives for grocers and retailers to implement and
maintain the
system. Since each item on the consumer's list is uniquely identified, the
retailer can
provide manufacturers with product specific "virtual merchandising"
opportunities which
may include (i) "protecting" a manufacturer's product on the shopping list by
advantaging said manufacturer's products over other competing products by
displaying
additional information about said manufacturer's products such as brand
information
(e.g. brand logos versus no logo, brand name versus a generic description of
the item,
coupons/discounts and/or nutritional information), thereby providing "virtual
shelf
space", increasing the shopper's brand awareness, and increasing the
probability that a
consumer repeats the purchase of the consumed product; (ii) allowing a
manufacturer to
provide or suggest substitutes and associated coupons for the suggested
substitute
product, if the consumed item was not "protected" by that product's
manufacturer (i.e.
products for which no product protection has been purchased); (iii) allowing a
manufacturer to add suggested products (specific & branded) to a consumer's
list in an
effort to pull through complementary product sales, thereby "virtually
merchandising" an
associated product; and/or (iv) tracking consumer purchasing patterns and
suggesting
when a product might have been left off of the list. An example of virtual
merchandising
is--if the consumer purchases buns with hot dogs and the list includes hot
dogs but no
buns, the system can prompt the customer with respect to hot dog buns. An
additional
example would be if a consumer adds Brand A of cake mix (not protected) to
his/her list
and Brand B is a protected brand of cake mix, the consumer's list would have
Brand A
on the list as either a more generic description (e.g. cake mix, chocolate
cake mix or even
perhaps "Brand A Chocolate Cake Mix" while Brand B would be suggested, such
suggestion to include a more fulsome description (e.g. "Brand B Super Deluxe
Chocolate
Cake Mix" with a brand logo and a coupon associated with purchasing Brand B).
As
such, the virtual merchandising generates income opportunities in the form of
advertising
and shelf space revenues, additional sales opportunities, and customer
retention to
grocers and CPGs which will provide incentives to them to put the necessary
elements in
place to drive such a system into everyday use.
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DESCRIPTION OF THE DRAWINGS
[0016] These and other advantages of the present invention will be readily
understood
with reference to the following specification and attached drawing wherein:
[0017] FIG. 1 is simplified diagram illustrating the basic operation of a
scanner, in which
the scanner scans the barcode and picks up the signals from the different
lengths of the
barcode, unique product code, or UPC. This data is then sent to a computer
(either on-
line or at the grocery store) Where it is processed against various databases,
linked by
together by the unique UPC. This processing covers ordering the list by aisle,
performing
the various virtual merchandising algorithms, and compiling the users shopping
list. This
information is then turned from traditional data format into a language that
is easily
readable by humans. Next, the information is printed on hard copy, or in
alternate form
displayed on a portable device, which will allow for a quick and easy shopping
trip.
[0018] FIG. 2 is an exemplary diagram of an aisle in a supermarket in which
different
foods of the similar type are normally located in the same aisles to make it
easier for
customers to locate.
[0019] FIG. 3 illustrates various types of known bar codes.
[0020] FIG. 4 illustrates an exemplary record layout of the product specific
information
that would make up the global product information database that could be
maintained
centrally for all products or could be maintained by each retailer.
[0021] FIG. 5A is a data flow diagram of the system in accordance with the
present
invention.
[0022] FIG. 5B is a flow chart illustrating the logic associated with
implementing the
brand display virtual merchandising option.
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[0023] FIG. 5C is a flow chart illustrating the logic associated with
determining whether
or not a manufacturer has purchased rights for rank.
[0024] FIG. 5D is a flow chart illustrating the brand incentive virtual
merchandising
option.
[0025] FIG. 5E is a flow chart for displaying generic product details of
scanned items by
a consumer.
[0026] FIG. 5F is a flow chart for displaying complete product details of
scanned items
by a consumer.
[0027] FIG. 5G is a flow chart illustrating the aisle assignment of an item on
the
shopping list item on the grocery list in step 103.
[0028] FIG. 5H is a flow chart for a duplicate item filter that checks for
duplicate items
on the shopping list.
[0029] FIGS. 6-9 illustrate exemplary flow charts for the invention.
[0030] FIG. 10A illustrates an exemplary shopping list which illustrates
virtual
merchandising in accordance with the present invention.
[0031] FIG. 10B is a table explaining how each item in the shopping list
illustrated in
FIG. 10A would have flowed through the process in accordance with the present
invention.
[0032] FIGS. 11-16 illustrate exemplary dialog screens for composing a
shopping list in
an interactive mode.
[0033] FIG. 17 illustrates an exemplary web page that represents all of the
categories of
available food items available in a particular store.
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[0034] FIG. 18 illustrates an exemplary drop down list for one category of
food items in
FIG. 17, namely "dairy".
[0035] FIGS. 19A and 19B represent an exemplary illustration indicating
application of
enhanced shopping system.
DETAILED DESCRIPTION
[0036] The present invention relates to an enhanced shopping system and method
which
utilizes technology and information in a manner which uniquely changes (1) the
way
grocery retail industry captures and retains customers, (2) how customers
organize their
shopping efforts in grocery stores, (3) the approach to advertising and
reaching
customers, and (4) the information available to retailers and merchandisers
related to
customer (a) shopping patterns, (b) responses to merchandising and
advertising, and (c)
specific impact of discounting/coupons. Even though the application focuses on
the
grocery retail industry, the concepts are equally applicable to any retail
segment where
consumable goods are involved (e.g. also applicable to small business office
supply
segment).
[0037] This system and method will create a new type of program for the home.
In
particular, in one embodiment, the system enables groceries to be scanned
after use and
stored on a portable memory device, such as a flash drive, smart card, smart
phone, or
directly within a small, portable scanner with memory and data ports. In that
embodiment of the invention, the portable memory device is brought to the
supermarket
like a virtual shopping list. An in-store terminal may be provided that is
configured to
receive the portable memory device. The in-store terminal checks the inventory
of the
items on the shopping list and also adds the location of the items on the
grocery list
within the store. In an enhanced version of the system, at least one virtual
merchandising
logic element is added to the list. The in-store terminal then prints out a
shopping list for
the consumer as illustrated, for example, on FIG. 10A. The scanner and memory
can be
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incorporated into off the shelf devices, such as a cell phone or PDA, which
would make
the concept even more ubiquitous.
[0038] Multiple embodiments of the system are contemplated from a consumer's
side.
Both embodiments may include a portable scanner and a memory device. In a
first
embodiment, an in-store terminal is provided. The in-store terminal is
configured to
receive the data from the memory device. In this embodiment, a database is
either
resident in the in-store terminal or the database is resident on another
server or computer
and in communication with the in-store terminal by way of a communication
link. In a
second embodiment of the invention, the system is web based and does not
require an in-
store terminal. In the second embodiment, the data from the memory device
associated
with the scanner is downloaded directly to a remote server which processes the
data and
enables a shopper to display and/or download and print a shopping list
directly from their
computer. An alternate embodiment of the invention is disclosed from the
standpoint of
the manufacturer or retailer which provides optional virtual merchandising.
[0039] In the various embodiments include an in-store terminal embodiment and
a
remote server embodiment, accessible by a smart phone, these embodiments
include data
on all for all but a few) items available in the store. The data on the types
of food may
also include brand data. For example, as will be discussed in more detail
below, an entry
for potato chips may include data regarding multiple brands, such as Lays and
Doritos.
For perishable items, such as, fresh meat, cheese, and fish, a different
format is used. For
example, such perishable items may be included by category, such as Meat,
cheese, fish,
baked goods, etc. These perishable food items may be further broken down into
sub-
categories. Using meat as an example, the sub-categories include the type of
meat, e.g.
turkey; the brand; and the amount, for example, in pounds.
[0040] In order to provide an incentive for grocers and retailers to implement
the system,
the customers, the retailers, and the manufacturers must gain value from it.
The
customers perceive value through an enhanced and more efficient shopping
experience.
The retailers gain value through "stickier", i.e. more loyal, customers,
increased sales,
and additional merchandising and advertising revenues. The manufacturers will
gain
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value through more targeted marketing and advertising and increased visibility
through
"virtual" merchandising (virtual shelf space--product protection and/or brand
display;
switching and retention incentives; product linkage, and consumption
patterns). Given
these attributes, the concept, in addition to being a new approach, can be
implemented
without significant technological. barriers.
Value to the Customer
[0041] As the hardware cost associated with hand held scanners has fallen, the
availability of significant amounts of memory has increased, and the
availability of smart
phones with built in scanners and the tech savvy of the average consumer has
risen, the
ability to move to a new type of replenishable shopping process has become
realizable.
Following is a description the process from the customer's point of view.
Goods Capture Process:
[0042] From a consumer's standpoint, the an initial objective of the invention
is to
establish a process where consumers utilize existing scanning technology to
create
"shopping lists" of grocery items. Consumers capture a record of the products
they
consume and generate a replenishment listing using existing scanning
technology and
scanning software, such as distributed by Intelliscanner Corp., has reached a
point where
the cost to produce consumer level scanners and capture consumer data is
affordable and
such technology can be distributed to consumers to assist in the replenishment
process
associated with consumables (e.g. groceries).
[0043] In addition, shopping lists could be generated by linking product UPCs
or SKUs
to recipe cards and, by scanning a given recipe card, a shopping list could be
generated.
This concept is not discussed in this paper, but it is conceivable that
manufacturers might
purchase rights to link to recipes and thereby increase sales.
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Aisle Aligned Shopping List:
[0044] Then, by matching the "shopping lists" with store product layouts, an
"aisle
aligned shopping list" may be generated. This process will make the consumer's
shopping experience much more user friendly by replacing hand written shopping
lists
that are generally written in consumption order with printed shopping lists
that are
organized in the order the products are arranged throughout the store. With
the evolution
of technology and the rapidly falling price of computer and smart phone
hardware, this
concept can be implemented on an electronic tablet interface or a smart phone
that the
consumer can utilize throughout the store, making the experience much more
interactive.
[0045] This matching of shopping list items to store layouts can be done using
data
gathered during a retailer's inventory or store mapping process, during which
UPC/SKU
locations would he accumulated. This data is available today for some
retailers but is not
utilized in this manner as the consumer does not accumulate his/her shopping
list by
UPC/SKU.
[0046] These initial steps will make use of the process valuable to the
consumer and
ensure use by the consumer. It also has value to the retailer, discussed
below.
Value to the Retailer
[0047] Another objective of the invention is to leverage the above methodology
in such a
manner that stores and manufacturers can present opportunities to the consumer
on an
extremely targeted basis. This targeting will generate revenue for the store
and will more
effectively use the manufacturers' advertising and merchandising expenditures
by
targeting the point of use. This concept breaks into several basic elements of
value, all
under the concept of Virtual Merchandising--Virtual Shelf Space (Virtual
Product
Protection and Brand Display, Partner Incentive Enhancements), Switching
Incentives,
Consumption Patterns Additions, the use of Product Linkages, and Information
Capture.
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"Virtual Merchandising (Shelf Space)--Product Protection"
[0048] Manufacturers typically purchase the rights to physical shelf space,
generating
revenue for retailers. Using this concept, retailers or, in a retailer
agnostic version, the
application company, will be able to sell "virtual shelf space" to
manufacturers. As a
result, the retailer or the application company will be able to expand a
manufacturer's
shelf space by selling "virtual product protection" to the manufacturer. If a
given
manufacturer purchases "virtual product protection" for its product or product
category,
any time a consumer has selected a "protected product" on a shopping list, the
protected
product will be displayed on the consumer's shopping list and will not be
switched with
an equivalent products for which virtual product protection was purchased.
This is the
equivalent of expanding the manufacturer's shelf space to exclude all other
options,
increases the visibility to and probability of replenishments by the consumer.
[0049] As will be discussed in more detail below, there are various types of
virtual
merchandising options.
[0050] Virtual product protection simply protects a product from being
switched on a
shopping list with a comparable and competitive product. For products that are
protected
with virtual product protection, only the protected item including its
respective brand
name are displayed on the shopping list. If virtual product protection is
purchased, one or
more of: Brand Display; Partner Incentive Enhancements and Product linkage may
also
be purchased. Alternatively, Brand Display; Partner Incentive Enhancements and
Product linkage may be purchased without "virtual product protection". In this
embodiment, if one of Brand Display; Partner Incentive Enhancements and
Product
linkage are purchased, the product will be protected from switching even
though "virtual
product protection was not purchased.
[0051] Brand Display protection not only protects a product from being
switched but
also displays the product logo of the product.
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[0052] In addition to virtual product protection, manufacturers purchasing
"virtual
product protection" also have the right to purchase "partner incentive
enhancements".
The partner incentive enhancements option allows manufacturers to display
coupons
and/or special offers as an incentive to purchase a product irrespective of
whether any
other virtual merchandising options have been purchased. Partner Incentive
Enhancement prevents also protects a product from being switched.
Alternatively, the
partner incentive enhancements may he offered as a part of virtual product
protection,
discussed above.
[0053] Product linkage is also comes under the auspices of product protection.
As will be
discussed in more detail below, product linkage is based upon the concept that
certain
products are linked to other products. In this type of product protection, the
base product
is covered by product protection.
[0054] As an example of virtual product protection, if the Coca Cola Bottling
Company
purchased virtual "product protection" for its cola products and a consumer
has specified
Diet Coke . on their shopping list, Diet Coke . (and the brand image if Brand
Display,
i.e. its logo, is also purchased), Diet Coke . and its logo would be displayed
on the
shopping list. If the Brand Image protection is not purchased, then "Diet
Coke" would be
displayed on the shopping list without a brand logo. Using the above example,
assuming
the Coca Cola Bottling Company purchased virtual product protection, the
Company
may also purchase partner incentive enhancements which provides an additional
right to
display any discounts and/or coupons associated with this product to further
enhance the
"virtual product protection". This enhancement can be used-to increase the
probability of
replenishment, the success ratio of which can be measured and correlated to
the
associated discount amounts.
"Virtual Merchandising (Shelf Space)--Brand Display"
[0055] This option allows a manufacturer to have the ability to purchase the
right to have
its brand logo displayed on the customer's shopping list, virtually expanding
its shelf
space and the interaction of its brand with the consumer, thereby increasing
the
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"stickiness" of the product on the list (in other words, lowering the
propensity for a
customer to select another brand) and increasing the consumer's brand
awareness.
[0056] This brand display option may be acquired in addition to virtual
product
protection module, as discussed above or purchased without virtual product
protection.
Similarly, irtual product protection" can be purchased with or without "brand
display"
option.
[0057] As will be discussed below, the "brand display" option may also be
purchased
with a "product linkage" option. "Product linkage" also falls under "product
protection"
(e.g. why would a manufacture pay for a product to be linked and then have a
competitor's product be displayed).
"Virtual Merchandising¨Product Linkage"
[0058] Retailers and manufacturers spend significant amounts of money and time
attempting to physically link compatible products together using product
placement.
Product placement leverages the concept that certain products are linked to
other
products (e.g. chips and salsa, hot dogs and buns, charcoal and lighter fluid,
etc.).
Retailers and manufacturers arrange products within the stores to leverage on
these
purchasing relationships--typically through the use of side by side shelf
display, clip
strips and hanging displays, end cap arrangements and floor displays.
Unfortunately, this
product placement concept requires moving product physically in a selection of
test
stores, testing the success rate and, if successful, rearranging an entire
retail chain of
stores. This is an expensive and time consuming process and one that cannot be
implemented and modified quickly.
[0059] The concept here is to establish the product placement linkages
virtually and
enable the retailer to sell the rights to such linkages to manufacturers. This
concept is the
selling of "virtual merchandising--product linkages". Using the customer's
shopping list,
manufacturer's will have the opportunity to identify given products on a
consumer's
shopping list and virtually link their complimentary products, thereby adding
these
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complimentary products to the consumer's shopping list. These complimentary
products
can be identified as complimentary to product "X" on the shopping list,
highlighted for
the consumer as complimentary add-ons, and displayed in the aisle where they
are
located. This enables the consumer to purchase the product in an orderly
manner while
enabling the manufacturer to link and "display" the complimentary products
together.
[0060] A retailer establishes a series of linkages and, if the base product is
on a shopper's
list, the linked product (this linkage purchased by a manufacturer) is
displayed as a
possible paired product, including the product details (brand, label, and
coupon). If
accepted, this product is placed on the shopping list in the aisle that the
product is placed
within the store. This operation places the linked product next to the base
product
without actually relocating either product, saving the retailer and the
manufacturer
money and enabling them to rearrange the store virtually.
[0061] For example, a linked product could be added with a tag line, e.g.
"Bachman .
Pretzels go great with Beer". In this example, the base product may be Miller
Genuine
Draft beer. In this example, anytime Miller beer is specified by a consumer on
a
shopping List, the tag line would also be displayed. The linked product is
"Bachman .
Pretzels. The idea here is to sell more of the base product by linking it with
the linked
product.
[0062] Another example of linking products follows--if Frito Lay, Inc. is
trying to sell
more of its Jalapeno Cheese dip (located in aisle 3, for example) by pairing
it with
Tostitos . chips (aisle 6 in this example), Frito Lay, Inc would have several
options. It
could add a coupon to the Tostitos . chips and hope the consumer used this on
the
current or next trip to the store, it could move the dip to aisle 6, or (using
virtual
merchandising) it could add a tag line and/or assuming that product
enhancements is also
acquired, a coupon may be displayed t on the grocery list of consumers that
were
replenishing Tostitos . chips (e.g. "Jalapeno Cheese dip goes great with
Tostitos .
chips" and a $0.50 off Jalapeno Dip with the purchase of Tostitos). The
Jalapeno Cheese
dip suggestion and coupon would display with the rest of the items found in
aisle 3. In
essence, the manufacture would have virtually moved the cheese dip next to the
CA 02923871 2016-03-16
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Tostitos . Chips and displayed the coupon next to the cheese dip. An option in
the
interactive mode would be to prompt the consumer and the consumer would accept
or
reject the suggested product (Jalapeno Cheese dip in this case). This is a
very targeted
linkage of products, one which manufacturers utilize regularly, especially
with the
introduction of new products.
[0063] Another example of product linking follows. If Skippy0. Peanut Butter
purchased the rights to link its peanut butter to ALL brands of jelly,
Skippy0. Peanut
Butter would be added to the list, along with the Skippy . brand (if
purchased) and any
incentive schemes Skippy0. wished to display (e.g. 25 off a 20 oz jar) each
time a
consumer purchased jelly. This is a broader application of the Frito Lay .
scenario.
Alternatively, if product linkage 26 has not been purchased by the
manufacturer for an
item on the shopping list, the system 20 looks up known unprotected and/or
protected
potential linked items and optionally adds the unprotected or protected items
to the list as
a suggestion.
[0064] A virtually endless selection of combinations could be derived and
sold. Retailers
could also put limiters in the program to ensure that a customer's list did
not grow to be
unmanageable by adding too many alternatives. The retailer could also apply a
ranking
algorithm similar to that discussed above to "arbitrate" when more than one
manufacturer
wanted to link to a base product (e.g. if both Skippy0. and JifC). wanted the
jelly link),
although these are minor alterations/tailoring of the basic concept of
"virtual
merchandising--product linkages".
[0065] A ranking algorithm can also be used for product linkages. Such a
ranking
algorithm is similar to the ranking algorithm used for switching alternatives.
The ranking
algorithm used in this application can also be based upon occurrence slots,
for example,
as defined above. In this application, the linkage of product A to a matching
product
could be sold to multiple manufacturers by selling "occurrence slots", as
defined above.
For example, a store could sell four (4) "occurrence slots" to link beer to
snack foods. If
the four (4) occurrence slots were bought by four (4) different product
manufacturers,
each manufacturer would take its turn in the occurrence rotation, in a similar
manner as
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discussed above. Alternatively, an individual manufacture could purchase all
four (4)
slots and have different products or promotion campaigns rotate through the
line up,
allowing the manufacturer to analyze the effectiveness of the linkage and/or
the
advertising/promotion.
[0066] All of the above virtual merchandising concepts are true point of
purchase
advertising as the consumer has indicated that he/she desires to purchase a
given product
and this product is either "protected" or alternatives are provided. There is
no random
pop-up concept or mass marketing.
[0067] Each of these virtual merchandising applications would (1) be an
enhancement
for the customer, (2) drive higher revenue for the store by ensuring potential
items were
not missed, and (3) represent point of purchase marketing opportunities that
could be
purchased by manufacturers to enhance their sales.
"Virtual Merchandising--Switching Incentives"
[0068] For products that are on the consumer's shopping list and for which
Product
Protection has not been purchased, other manufacturers that have purchased
"virtual
merchandising--switching incentives" would have an opportunity to present
specials and
discounts associated with their products that are substitutes for the
unprotected product.
For example, if a consumer specifies Seventh Generation laundry soap on their
shopping
list and no product protection was purchased for the Seventh Generation
product, the
specified product would be subject to suggestions for alternate products for
which
switching incentives were purchased. For example, if a switching incentive is
purchased
for an equivalent product, a button, identified as "other offers available"
may be
displayed beneath the specified product. In other words, the display of the
specified
product may automatically be switched to a display of the specified product
along with a
user selectable option, such as a button, for "other offers available".
Selection of the
"other offers available" button may automatically display a substitute product
that may
be substituted for the specified item without displaying the selected item.
Alternatively,
selection of the button may result in the substitute product being displayed
along with the
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specified product along with optionally displayed coupons or other offers. For
example,
if a switching incentive is purchased for Arm & Hammer laundry soap, the Arm &
Hammer laundry soap may be displayed alone with the specified item. Optionally
the
Arm & Hammer laundry soap may be displayed along with a coupon or discount
offer if
product enhancements were also acquired. Another user selectable option, such
as a
button identified as "Replace", may also be provided with the substitute item
being
displayed. Selection of the "Replace" button switches the specified item on
the grocery
list with the substitute item. In the above example, above, the Arm & Hammer
laundry
soap would be substituted for the Seventh Generation. laundry soap if the
"replace"
button was selected.
[0069] The switching may alternatively result in automatic switching of the
entry on the
shopping list. Using the example mentioned above, if a consumer specifies
Seventh
Generation laundry soap on their shopping list and no product protection was
purchased
for the Seventh Generation product, the specified product would be subject to
suggestions for alternate products for which switching incentives were
purchased. In this
embodiment if a switching incentive was purchased by Arm & Hammer for laundry
soap, then, the Seventh Generation laundry soap would be automatically
switched to
Arm & Hammer laundry soap with coupons if product enhancements were also
acquired.
If no switching incentives have been purchased, just a generic or brand
description of the
item is may be displayed without a logo. For example, if the RC Cola Company
had not
purchased "virtual product protection" and the consumer has RC Zero Cola . on
their
shopping list, the shopping list may display "Diet Cola" (no brand or image)
or
alternatively RC Zero Cola with no image. Assuming no switching protection has
been
acquired for an item on the shopping list, the system may search for
alternative
unprotected items and display the product coupons, specials, rebates,
discounts and/or
the manufacturer's brand logo for the alternate product alongside the generic
shopping
list item to incentivize the consumer to switch brands. Alternatively,
assuming "virtual
product protection" is not purchased and the consumer identifies a brand on
the shopping
list, such as RC Zero Cola , no image will be displayed adjacent the item,
however, the
brand, for example, as designated by the consumer, may be displayed. In this
example,
RC Zero Cola . brand may be displayed without a logo or the item may be
alternatively
CA 02923871 2016-03-16
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displayed as a generic item, such as diet cola, as mentioned above. In this
case, the
product is vulnerable to being switched.
[0070] A ranking algorithm may be implemented to allow rotation of
manufacturers or,
in the case of an interactive, on-line process, would allocate different
amounts of space
or assign different positioning of ads on the screen depending on what was
purchased.
For example, a ranking algorithm may be set up in terms of "occurrence slots.
An
occurrence slot may he defined as an unprotected item on a shopping list that
is therefore
subject to "switching", as discussed above. The occurrence slots may be
sequentially
based. For example, a subscription of time based slots could be offered for
sale for a
particular period of time, for example, one (1) year. The slots, for example,
could he
based upon the sequential occurrences of the unprotected item. over the
subscription
period on a rotating basis. The number, price and length of the subscription
periods of
the occurrence slots may be set by the store.
[0071] The use of a ranking algorithm allows multiple manufacturers to
purchase the
switching rights for the same individual, groups or categories of unprotected
items. For
example; assume that two soda manufacturers, identified as Manufacturer A and
Manufacturer B, want to purchase switching rights for all unprotected soda.
Also assume
that the store sets up and sells four (4) "occurrence slots" for switching
unprotected soda
to manufacturers that purchase product switching rights. Further assuming that
Manufacturer A purchased one (1) slot and Manufacturer B purchased three (3)
slots, the
switching rotation would be that Manufacturer A would get the switching rights
to the
first shopping list and Manufacturer B would get the switching rights to the
next three (3)
shopping lists. The next unprotected item would then rotate back to A and so
on. For
example, the pattern would be: A-B-B-B-A-B-B-B and so on, as consumers with
shopping lists with unprotected soda occurred in the store. An individual
manufacturer
could purchase all 4 slots and have different products or promotion campaigns
rotate
through the line up, allowing the manufacturer to analyze the effectiveness of
the linkage
and/or the advertising promotion.
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[0072] Each grouping of products is linked to a hierarchy of product
categories
established by the retailer. This hierarchy establishes the backbone for
product protection
as well as the offering of alternatives. It also drives the offering of paired
products as
described in the following section.
"Virtual Merchandising¨Consumption Patterns"
[0073] "Virtual Merchandising--Consumption patterns" utilizes a customer's
normal
buying patterns and frequencies to establish a baseline pattern, compares this
expected
set of items to those on the customer's shopping list, and highlight items
that it appears
the customer might have missed on the shopping list. A frequency forecast and
a forecast
based on the frequency certain products can be purchased together and used to
establish
the expected list of products. This expected list is compared to the actual
shopping list
and potential missed products are added to the consumer's list or, in an
interactive mode,
the consumer is queried as to Whether or not these items should be added to
the list.
These items would then be put through the above virtual shelf space and
virtual
merchandising scenarios as the original list or this could be done initially
and followed
by the virtual shelf space and virtual merchandising scenarios. In either
case, the end
shopping list should be the same.
[0074] For example, if a customer purchases bacon every time they purchases
eggs,
bacon would be offered as a potential missed item if eggs were on the shopping
list and
bacon was not. In addition, if Kraft Foods purchased coupon rights for
situations in
which bacon is on a shopping list and "unprotected" (which all items added in
this
manner would be since they would. be generic rather than brand specific), the
coupon
would be displayed in this scenario, thereby extending the component of
"virtual product
protection" that links advertising rights to "unprotected" products. A similar
scenario
would play out based on frequency models.
[0075] In addition, if a customer purchased a given product on a regular
basis, but the
current shopping list did not list that product, and the algorithm did not
indicate to add
the item, the consumption pattern option is configured to add the items to the
shopping
CA 02923871 2016-03-16
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list and highlight them. In one embodiment of the invention, this option can
be
incorporated with other data and only add items to the shopping list, for
example, that are
on sale. This option therefore highlights the buying opportunity for the
consumer and
even though the item was not selected, further enhances the shopping
efficiency of the
customer and expand the advertising reach of the manufacturer in a targeted
manner.
Using this methodology, a retailer could predict how many times a certain
product would
either be selected by consumers or flagged to remind consumers, giving
merchandisers a
much better feel for the potential market of an add campaign. The retailer
could limit the
number of items added to a consumers shopping list to ensure the list did not
become too
cumbersome or cluttered.
Information Capture
[0076] Unlike the information that is available today, the information that
would be
captured using this process links the exact items consumed (as collected
during the
scanning process and preparation of the consumer's shopping list) and the end
products
purchased. In other words, manufacturers know both the behavioral outcome as
well as
the specific consumption activities immediately prior to the activity (or lack
thereof) they
are trying to drive. The exact effectiveness of these marketing strategies
would be
available, unlike the "rough estimates" that are associated with existing
marketing and
merchandising efforts today. This is because the items consumed and desired to
be
replaced are not known in any application today. In order to attempt to obtain
this
information, manufactures spend millions hiring firms that conduct exit
interviews with
consumers. These exit interviews, while being expensive and incomplete, are
the best
proxy manufactures have for the information that could be
[0077] Various different types of scanners can be used for scanning the
barcode. There is
a wireless portable scanner, a portable batch scanner, and a fixed scanner.
The wireless
portable scanner is ideal for remote locations or when one needs the
information right
away (1). The information for this scanner is uploaded very quickly and
accurately when
scanning something. The negative aspect of a wireless scanner is that it needs
to be
connected through a wireless network which requires more cost and technical
know-
CA 02923871 2016-03-16
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how. The portable batch scanner is a battery operated seamier that uploads
that data at a
different time from when it is scanned, This is an ideal scanner if mobility
is the number
one priority, like in a factory or an individual's kitchen/home. A fixed
scanner is attached
to a computer through a cable and is transmitted as if it were being typed
into the
computer from a keyboard (1). This would not be the best type for in the
kitchen of an
every day home. The wireless portable scanner would probably be the best
scanner to use
in a large scale, industrial application because of its mobility and quick
response, while
the portable batch scanner, with its mobility and lower cost/infrastructure,
would be the
best hardware for a consumer application. Most scanners come with a cable to
attach to
the computer.
[0078] Scanners get the information off of a barcode by waving a strip of red
light in
front of the barcode. What the scanner does not see is that the light source
absorbs the
difference between the black and white spaces. This information is converted
into an
electrical signal. The light source starts out scanning a white space, which
is called the
quiet zones, and then continues to move along to the last bar. The light
source keeps
passing over the barcode until it reaches the white source on the other side
of the
barcode. Different heights for the barcode are chosen to make it easier for
the scanner to
be able to read it. If there is more information to be encoded, then the
barcode is longer,
and when the length of the barcode is increased, so are the height and spaces
of the
barcode.
[0079] The type of barcode that is mandatory for all supermarkets is a UPC/EAN
barcode (3). UPC barcodes are set at a fixed length and are usually only used
in the
grocery department They were designed just for the supermarket because that
type of
barcode fits the twelve digits that are needed for the groceries. There are
also other types
of barcodes, such as Code 39, Code 128, Postnet, and PDF417 but those types
are not
used in the grocery store industry (2).
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Software Flow Charts
[0080] FIGS. 5A-5H illustrate the logic flow of the exemplary processes in
accordance
with the present invention. FIGS. 6-9 illustrate exemplary flow charts for the
invention.
Referring first to FIG. 5A, this figure is an exemplary top level diagram for
the present
invention. It is to he understood that FIG. 5A is for illustration purposes
and illustrates an
embodiment in which all virtual merchandising options are incorporated. It is
to be
understood that the present invention may be implemented with one or more of
the
virtual merchandising options. The order in which the logic is implemented
within the
flow chart can be modified and, in many scenarios, achieve the same end
result. As such,
the order of the logic is not of critical importance.
[0081] The shopper scans in the bar codes for grocery items, for example, that
have been
consumed and. forms an initial shopping list, for example, as illustrated in
FIG. 1. In
accordance with an important aspect of the invention, the system, generally
identified
with the reference numeral 20, processes the initial shopping list, as
discussed below.
The processing may include one or more virtual merchandising options, as
illustrated in
FIG. 5A, implemented, for example, as software modules relating to virtual
merchandising options, such as, consumption patterns 22, product protection
24, product
linkage 26, product switching incentives 28 and product brand display 30.
[0082] For each item on the initial shopping list, the system 20 may initially
determine
the consumption pattern 22 for the item in step 34 and illustrated in more
detail in FIG.
6. After the consumption patterns 22 are determined, the system 20 checks for
duplicate
items in step 36 (FIG. 5A) and adds any missing items to the initial shopping
list based
upon the consumption pattern in steps 38 and exits the consumption pattern
module 22 in
step 40 and may indicate the missing items on the shopping list under a
heading "You
Forgot", as indicated in step 42, or identified as "Possibly missed", for
example, as
illustrated in FIG. 10 for the bacon.
[0083] The system 20 checks each item on the initial shopping list, as
indicated in step
57. After the initial shopping list is created by the consumer and optionally
enhanced by
CA 02923871 2016-03-16
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the system 20 based upon consumption patterns, as discussed above, the system
20
obtained if this application was implemented and the data collected. The
retailers and
manufacturers would be able to utilize the results associated with various
marketing and
merchandising strategies to measure the effectiveness of each strategy. For
example, the
Coca Cola Bottling Company could measure the effectiveness of its protection
strategy
with and without coupons or with coupons at various discount price points.
Technology/Ideas:
[0084] Following is a listing of known technology that may be associated with
delivering
the above concept to market.
[0085] 1. Bar code/UPC/SKU information.
[0086] 2. Bar code/UPC/SKU information capture technology (e.g. scanners)
would be
used to generate the initial shopping list and would capture the necessary
item
information, including product description, at the manufacturer level.
[0087] 3. Retailer master files.
[0088] 4. Store specific store product layout files containing aisle, section,
UPC, SKU
and other information and maintained by the retailer. Companies that take
inventory
today can capture the location within the store (e.g. aisle, department, and
shelf) of each
item through a mapping exercise which results in a database of store level
product
locations.
[0089] The invention is amenable to being implemented with various types of
scanners
which are well known in the art. Such bar code scanners usually consist of
three parts; a
scanner, a decoder, and a cable or wireless link that connects the scanner to
a computer
(1). FIG. 1 illustrates how the scanner reads the spaces and bars making up
the barcode
and provides an electrical output to a computer. The decoder decodes the
spaces and the
bars and correlates the bar code with an item from a list in a database. Bar
code scanners
CA 02923871 2016-03-16
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are described at (barcode.comilearning center/how do_scanners_work.shtml),
hereby
incorporated by reference may then check whether the item on the list contains
a
manufacturer's specific UPC code in step 59. If so, the system 20 may then
check if the
manufacturer purchased the rights to other virtual merchandising options for
that item on
the list associated with the UPC code in step 61.
[0090] If product protection 24 has been purchased, the system 20 runs through
the logic
to assess what has been purchased by the manufacturer and, where applicable,
adds the
complete product details (step 63), the brand logo (step 65), and any
incentives, e.g.
coupons, sales, banners (step 67) for the item on the list and optionally
provides an aisle
assignment in step 69.
[0091] The system 20 also checks for product linkage 26, as indicated in step
54 for each
item on the list. Product linkage 26 relates to, for example, items that
appear on the
shopping list that may be linked to other items that do not appear on the
shopping list.
Examples of such linkages are as described above. As such, each item on the
shopping
list is checked whether product linkage 26 has been purchased by the
manufacturer of the
item on the list in step 56. If product linkage 26 has not been purchased by
the
manufacturer, as determined in step 56, the system 20 looks up any known
unprotected
potential linked items in step 60 and adds those unprotected items to a
product link list in
step 62, assuming it is not a duplicate, as determined in step 64. The system
20 then
proceeds to the next item on the list, as illustrated in step 71 and returns
to step 54 until
all items on the initial shopping list have been analyzed.
[0092] If the system 20 determines in step 56 that product linkage protection
26 has been
purchased for the item, the system 20 looks up the item on a product link list
in step 58.
Next, in step 64, the system 20 checks if the linked product is already on the
product link
list. If so, the system 20 does not add the item to the grocery list. If the
item is not a
duplicate, the item is added to the grocery list. For each linked item in the
product link
list for which product linkage has been purchased by the manufacturer, as
indicated in
step 71, the system 20 cheeks in step 73 whether other types of virtual
merchandising has
CA 02923871 2016-03-16
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,
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been purchased for the linked item, such as, i.e., brand displays 30,
incentives, and
whether any occurrence slots, have been purchased for the linked items.
[0093] After the portion of the grocery list that had protection purchased has
been
processed for linkages, the final version of the grocery list is created for
those products
that had a UPC and had protection purchased (steps 59 and 61, respectively),
as indicated
by the dotted block 73. In the completed grocery list, each item in the list
has been
evaluated for and is listed with one or more virtual merchandising options
including:
complete product details; brand display; and incentives, such as coupons or
ads. As will
be discussed in more detail below, if more than one manufacture has purchased
switching incentives for the same item, the highest ranked manufacturer's
information
(coupon, banner, incentive) is displayed. A manufacturer's rank may be based
upon
several factors including the amount of money that the manufacturer paid for
this right
and/or the point in the rotation the consumer represents. Also, the grocery
list may
optionally include an aisle assignment for each item on the list.
[0094] If it is determined that a manufacture's specific UPC code is not
associated with
an item on the list or product protection has not been purchased for and item
on the list
(steps 59 and 61, respectively), the item is processed with generic product
details, as
indicated by the block 75. The system 20 next checks if switching incentives
28 have
been purchased in step 77. If not, an aisle assignment may optionally be
associated with
the item, as indicated by the block 79. The system 20 then proceeds to the
next item on
the list.
[0095] If switching incentives 28 have been purchased, as determined in step
77, the
system 20 looks up whether there are any incentives associated with the item
covered by
switching incentives 28 option, as indicated by the block 81 and associates
the switched
item with the item on the grocery list and incorporates an incentive, i.e
coupon, sale
information, in step 83, after it is determined that the switched item is not
a duplicate in
step 64. In step 85, the system 20 adds complete product details for the
switched item.
The system 20 also checks in step 85 whether virtual merchandising has been
purchased
for the switched item. If so, the system 20 adds, where appropriate, the
virtual
CA 02923871 2016-03-16
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merchandising options purchased by the manufacturer for the switched item,
such as,
adding a brand display 30 for the switched item; adding incentives and
checking the
manufacturer's rank with respect to the switched item, by checking whether and
how
many occurrence slots have been purchased by the manufacturer. As discussed
above, if
the rank option has been purchased by any of the manufacturers', the switched
products
associated with items on the list are associated with a manufacturers' product
according
to rank, as discussed above.
[0096] Next, the system 20 creates a shopping list 85 that incorporates one or
more of the
virtual merchandising options, as discussed above. More particularly, the, two
sets of
products--(i) those with UPCs and product protection plus any products added
through
linkages and (ii) those without UPCs or without product protection are
combined and
processed. For embodiments which incorporate the product location, the aisle
is
associated with each item on the list and the list can be sorted in aisle
order, as illustrated
in step 109. The list is then formatted in step 111 and printed or sent to
another type of
interface (e.g. a mobile terminal, a blackberry, etc) in step 113.
[0097] FIG. 5B is a flow chart illustrating the brand display virtual
merchandising option
30. For each item on the list, the system 20 simply checks whether the brand
display
merchandising option has been purchased in step 87. If so, the manufacturer's
brand logo
is associated with that item on the shopping list in step 89. If not, generic
information is
associated with that particular item on the list.
[0098] FIG. 5C is a flow chart illustrating the logic necessary to evaluate
whether a
manufacturer has purchased rights for rank, as discussed above. For example, a
manufacturer's rank may be associated with the product switching virtual
merchandising
option 28. In particular, when there are multiple manufacturers' products
available for
switched products, the manufacturer which purchased a rank option prevails, as
discussed above. In particular, for each item determines whether the rank
option has been
purchased by any manufacturer in step 91. If so, that manufacturer's product
is associated
with the switched item in step 93. If no manufacturer purchased the rank
option ail
CA 02923871 2016-03-16
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manufacturers products for manufacture's that purchased the switching
incentive virtual
merchandising option will be associated with the switched item in the list.
[0099] FIG. 5D is a flow chart illustrating the brand incentive virtual
merchandising
option. For each item on the list, the system 20 checks whether any
manufacturer has
purchased a partner incentive enhancement option. As discussed above, this
option
relates to the right of a manufacturer to have coupons or ads associated with
particular
items on the shopping list. For each item on the list, the system 20 checks
whether any
manufacturer. If so, the manufacturer's incentive, e.g., coupon or ad is
associated with
the shopping list in step 97, for example, as illustrated in FIGS. 14, 15 and
17.
[0100] FIG. 5E is a flow chart for displaying generic product details. These
generic
product details are the product details associated with the UPC code scanned
by the
consumer to create the initial shopping list. These product details are
available as part of
a master data base that would be compiled. An exemplary record layout and
fields is
illustrated in FIG. 4. These product details are linked to those items scanned
by the
consumer through the unique UPC.
[0101] FIG. 5F is a flow chart for displaying complete product details of
scanned items
by the Consumer. The complete product details include the product details, for
example,
description of the item and the brand logo associated with the item for items
for which
manufacturers have purchased the product protection virtual merchandising
option 24.
For items for which the product protection option has been purchased, a
complete
product description including the brand logo is may be associated with that
item on the
shopping list in step 101.
[0102] FIG. 5G is a flow chart illustrating the aisle assignment of an item on
the
shopping list. For embodiments which include this option, an aisle location is
associated
with each item on the grocery list in step 103.
[0103] FIG. 5H is a flow chart for a duplicate item filter that checks for
duplicate items
on the shopping list. The duplicate item filter 64 checks for duplicate items
in step 105.
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As indicated by the block 107, duplicate items are excluded from the list. Any
item that
is not a duplicate continues to be processed.
[0104] Referring to FIG. 6, the logic for consumption pattern virtual
merchandising
option 22 is illustrated in detail. As mentioned above, the consumer or
shopper scans the
containers (UPCs) of consumed grocery items and downloads this data to the
system 20
by either an in-store terminal or a web application, as discussed above, to
form an initial
shopping list, as generally indicated by the block 44. Every time a consumer
creates an
initial shopping list by scanning the packages of used items, those items are
stored in a
product consumption database, for example, and used to develop a consumer's
historical
shopping pattern. The historical shopping pattern could be implemented in
several ways.
For example, a periodic purchasing pattern could be developed. In particular,
if a
consumer purchased a particular food item on a fairly regular basis, and was
not listed on
a shopping list for some predetermined time, the item would be added to a
shopping list
as a possible missed item, For example, if a consumer added eggs to their
shopping list
on a weekly basis, eggs would be added to a consumer's shopping list if eggs
were left
off the list on a particular week.
[0105] In step 46, the system 20 may compare each item on the initial shopping
list with
a product consumption database to determine if any items in the consumer's
product
consumption pattern have been left off the list. The product consumption
database is may
be compiled for each customer based upon consumption patterns over a period of
time.
Items are identified as "missed items" in step 48 and combined with the
initial shopping
list in step 50 to create a revised shopping list, as identified by the block
52.
[0106] The product protection module 24 is illustrated in FIG. 7. As discussed
above,
product protection refers to a concept in which the manufacturer purchases the
right to
prevent other manufacturers from displaying any incentives, i.e. coupons, or
brand logos
that might provide incentive to a consumer to purchase an alternate brand for
an item on
the list. Referring first to FIG. 6, once a revised product or shopping list
is created, as
indicated by the block 52, the system 20 checks in step 66 for a
manufacturer's specific
uniform product code (UPC) or item on the revised shopping list. If not, as
indicated by
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the block 51, the system 20 proceeds to step 68 (FIG. 7) to check Whether the
manufacturer purchased product protection, as discussed above. If the system
20
determines in step 66 (FIG. 6) that a manufacturer specific UPC code is
associated with a
product on the list, as indicated by the block 72, the system 20 proceeds
directly to step
70 (FIG. 7) to determine if any manufacturer purchased a switching option for
the item
on the list. Alternatively, if it is determined in step 68, that the
manufacturer associated
with the manufacturer specific UPC code did not purchase a switching option
for the
item on the list, as indicated by the block 74, the system 20 also proceeds to
step 70 and
checks if any manufacturer purchased a switching option for the item on the
list. If not,
as indicated by the block 75, the system 20 proceeds to step 76 to determine
if all items
on the shopping list have been checked. If at least one manufacturer has
purchased a
product switching option, as indicated by the block 78, the system 20 proceeds
to step
80. If there is only one manufacturer that has purchased a switching option
for that
product, that manufacture's coupon or other incentive is added to the shopping
list, as
indicated by the block 82.
[0107] If it is determined in step 68 that the manufacturer associated with
the
manufacturer's UPC code purchased, indicated by the block 86, the
manufacturer's
product description is displayed on the shopping list instead of the generic
description, as
indicated by the block 88. Next in step 90, the system 20 cheeks whether
protected
manufacturer purchased the right to display their logo on the shopping list.
If so, as
indicated by the block 92, the system 20 displays the logo, as indicated by
the block 94.
Next in step 96, the system 20 checks whether the manufacturer purchased the
right to
display ads. If so, as indicated by the block 98, the system 20 categorizes
the
manufacturer as a protected manufacturer in step 100 and proceeds to step 82
and adds
the manufacturer's coupon to the shopping list if it is determined in step 96
that the
manufacturer did not purchase the right to display ads, as indicated by the
block 97, the
system 20 proceeds to step 76 to determine if the item processed was the last
item on the
grocery list. If it is determined in step 90 that the manufacturer did not
purchase the right
to add its logo to the grocery list, as indicated by the block 102, the system
20 proceeds
directly to step 96 to determine if the manufacturer purchased the right to
display ads, as
discussed above.
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[0108] As mentioned above, the system 20 checks in step 76 (FIG. 7) whether
all items
on the list have been processed. If so, as indicated by the block 104, the
system 20
proceeds to step 56 (FIG. 5A) and checks each item on the list for linkage
products, as
discussed above. If the last item checked was not the last item on the list,
as indicated by
the block 106 (FIG. 7), the system 20 returns to step 66 (FIG. 6) and, if a
UPC is
associated with the item, repeats steps 68-100 (FIG. 7) for the next item on
the list.
[0109] The product linkage virtual merchandising option 26 is illustrated in
detail in
FIG. 8. Referring to FIG. 8, the system 20 checks in step 115 whether there is
a product
linkage for an item on the list. If not, as indicated by the block 117, the
system 20 checks
the next item in step 119 until all items on the list have been checked. If a
linkage
product exists for an item on the list, as indicated by the block 121, the
system 20 next
checks in step 123 whether the linkage product is already on the list. If so,
as indicated
by the block 124, the system 20 proceeds to the next item on the list. If the
linkage
product is not on the list, the linked item is added to the list in step 127.
Steps 115-127
are repeated until each item on the initial shopping list has been checked for
possible
product linkages, as indicated in step 129. If all items on the initial
shopping list have not
been checked for possible product linkages, as indicated by the block 131, the
system 20
checks the next item on the list, as indicated by the block 133. If all items
on the list have
checked for product linkages, as indicated by the block 135, the system 20, as
indicated
in step 137, the system proceeds to step 140 (FIG. 9) and assigns an aisle and
section to
each item on the list, as discussed below.
[0110] FIG. 9 is a flow chart which illustrates the process for assigning
aisles to items on
the shopping lists. For implementation of this embodiment of the invention,
the store for
which the shopping list is being created needs to have a database which not
only
provides current inventory but also the aisle and optionally section
assignments of all
items in the inventory. Referring to FIG. 9, for each item on the shopping
list, the system
20 accesses the database mentioned above and associates an aisle and optional
section
with each item, as indicated by step 140. In order to facilitate the shopping
experience,
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the system 20 sorts the shopping list by aisle and optional section order. In
step 142 and
upon demand prints a final grocery list in step 144.
Exemplary Grocery List
[0111] FIG. 10A illustrates an exemplary shopping list which illustrates
various virtual
merchandising options in accordance with the present invention. FIG. 10B is a
table
explaining how each virtual merchandising option in the shopping list
illustrated in FIG.
10A would have been generated through the process in accordance with the
present
invention. The shopping list may be a physical list, printed on paper or an
electronic list,
available on a PDA, cell phone, tablet PC or other electronic display media.
[0112] Turning to FIG. 10A, the exemplary shopping list, generally identified
with the
reference numeral 146, may include the exemplary fields illustrated. In
particular, the
exemplary shopping list 146 may include a location field 148 which identifies
the aisle in
the store and other location information for each item on the shopping list
146. The
shopping list 146 also includes an item field 150. The item field 150 is used
to list the
item, either generic or by brand name, depending on whether the manufacturer
of the
item purchased the brand rights as discussed above. A field 152 may be used
for brand
logos for items for which the manufacturer of the item purchased those rights.
Another
field 154 may be used to display incentives for items in which the
manufacturer
purchased incentive rights, as discussed above. A comment field 156 may he
included to
identify linked and missed items, for example.
Web Embodiment¨Non Interactive
[0113] The function of the in-store terminal can also be replicated in a web-
based
embodiment. The process is illustrated in FIG. 1, although the terminal is
remote and the
master databases (e.g. store layout, product info, etc.) is accessed remotely.
In this
embodiment, a prospective customer simply registers on-line for the service
with their
store of choice. All of the processing mentioned above is done by a remote
server, which
not only processes the shopping list. The consumer may download a client
application
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onto the consumer's personal computer (PC) or smart phone for interacting with
the
remote server and utilizing the shopping list functionality described above.
More
particularly, as discussed above, the consumer will may scan consumed items by
way of
a bar code scanner, as discussed above. Alternatively, the consumer can select
from a
list. More particularly, the remote server may have access to a number of
grocery and
other items on a searchable database. The items may be searchable by the
consumer by
way of a generic name and/or a brand name. The search feature may be initiated
by
selection of an icon on a display hosted by the client application. Once the
icon is
selected, a text box and a keyboard may be displayed. The consumer types the
desired
item into the text box and selects a "search " button. Selection of the search
button causes
the system to display all generic and/or brand items that match the text in
the text box.
For example, if "soap" is typed in the text box, the following generic and/or
branded
items may be listed:
[0114] Bar Soap & Body Wash
[0115] Hand Soap and Sanitizers
[0116] Dish Liquid Soap
[0117] Ivory Bath Soap Classic with brand logo (assuming brand protection is
purchase)
[0118] CareOne Foaming Hand Soap Olive & Ace-no logo.
[0119] Selection of an item automatically adds that item to the shopping list.
Because of
the possibility of competing items, each branded item with or without logo
protection
may be provided with its ranking, as discussed above. The bar code data for
scanned and
other retail items is stored in the remote database. When the consumer wants
to compose
a shopping list, the consumer logs onto the remote server and uploads the bar
code data
or uses the text box, as discussed above, The remote server associates each
item of bar
code data with an item, such as a food item and assembles a basic shopping
list, This
processing is exactly the same as would be done in the in-store application
and is
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illustrated in FIGS. 5A-H and FIGS. 6-9. For each item on the list, the system
20 checks
whether items have been missed and whether any virtual merchandising rights
have been
purchased, as discussed above, to create an enhanced shopping list, for
example, as
illustrated in FIG. 10A.
Interactive Shopping Experience
[0120] The generation of the consumer's shopping list could also be done in a
more
interactive manner, obtaining consumer input during the generation of the list
rather than
simply generating an enhanced shopping list that the consumer then uses
throughout the
store. This type of embodiment maybe a web-based application given the
constraints of
time associated with in-store processing (e.g. a consumer is more likely to
spend time at
home in front of the computer rather than standing in a store) as well as the
hardware
costs that an in-store interactive experience would require (retailers would
need
significantly more terminals in store to avoid lines associated with the time
an interactive
process would take). The screen layouts (aka web pages), illustrated in FIGS.
11-18 are
exemplary.
[0121] FIG. 11 illustrates an exemplary initial screen that is generated by
the remote
server after the shopping list 158 has been compiled, as discussed above. Each
web page
may include a button, generally identified with the reference numeral 160 that
allows the
consumer to continue to the next page.
[0122] FIG. 12 illustrates an exemplary next page which allows the consumer to
create a
personal profile with respect to the shopping list. As shown, various display
choices may
be selected for a single shopping list or added to the consumer's personal
profile. A
consumer would only have to establish this profile once, as this information
would then
be retained in the central database as being specific to each customer.
[0123] FIG. 13 illustrates a web page which illustrates a manufacturer's
incentive for
oatmeal. In this example, the consumer needs to purchase oatmeal. In this
example, the
consumer either listed a generic oatmeal or branded oatmeal that was not
protected. In
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either case, since, in this example, McCann's purchased switching incentives.
McCann's
is automatically displayed as a switching option. If the consumer checks the
check box
162 for the coupon, the coupon is may be printed (or electronically added to
the
shopping list) or alternatively displayed for scanning at checkout. The
manufacturers
brand logo may be printed (or displayed) next to the oatmeal, as shown in FIG.
14. FIG.
14 also illustrates a similar scenario for diet cola and a check box 164. If
the Check box
164 is selected, the brand logo is inserted next to the item on the shopping
list 165, as
illustrated in FIG. 15. For both of these items, the coupon information is
added to the
final shopping list, as illustrated in FIG. 16 or alternatively as bar codes
for scanning at
checkout.
[0124] FIG. 15 illustrates two (2) examples of incentives. The first example
relates to
Lays potato chips. In this example, potato chips are listed on the shopping
list, such
items having been consumed and the manufacturer of the consumed product having
not
purchased product protection. As such, potato chips are may be added to the
list as a
generic item or alternatively as a branded item. Using the logic in FIG. 7,
the system 20
can offer an incentive from a manufacturer which purchased switching
incentives
automatically, as discussed above. In this case, the company offers an
incentive by
offering $1,00 off a 20 ounce bag. If the consumer checks the check box next
to the
Lays incentive, the brand logo for Lays will be inserted next to the listing
for "potato
chips" on the shopping list and the coupon notation will be added to the
shopping list as
illustrated in FIG. 16.
[0125] The other type of incentive illustrated in FIG. 15 is for an item not
on the
shopping list, but one that is linked to an item that is on the list, an
example of virtual
merchandising. That item is Smuckers preserves which, in this example, has
been
linked to peanut butter. This example illustrates a situation in which the
manufacturer
purchased a virtual merchandising and, together with the right to display a
coupon,
purchased the brand display option as well, as discussed above. If the
consumer checks
the check box next to the Smuckers incentive, Smuckers , together with the
brand
logo for Smuckers will be added to the shopping list and the coupon notation
will be
added to the shopping list as illustrated in FIG. 16.
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[0126] FIG. 16 illustrates an exemplary web page with a completed shopping
list and
may also include a drop down menu 166, which provides various options for the
consumer to select and skip to, such as providing a complete coupon list,
listing possible
missed items, placing deli orders, going to the store categories section to
add items and
displaying the consumer profile.
[0127] The completed shopping list is displayed for example, as illustrated in
FIGS. 10A
and 16 and a "Print List" button 168 (FIG. 16) may be provided so that a
printed copy of
the grocery list can he provided. As shown, each web page may he provided with
a Print
list button that enables the consumer to print the list at any stage of the
complete process.
In addition, each web page as shown may he provided with a "Go To" button that
allows
the consumer to jump to various sections of the interactive session.
[0128] FIG. 17 illustrates the web page that, as shown, represents all of the
various items
available in the store, grouped by category, to enable the consumer to take a
virtual
shopping tour of all of the items available in the store. In order to add
items to the
shopping list, a user simply selects a category (FIG. 17) and the system 20
displays,
either as a separate page or as a "drop down" list, as illustrated in FIG. 18,
all available
"generic" items in that category, as exemplified for the selection of "dairy".
A user then
simply checks the item listed under a particular category to add that item to
the shopping
list. After this selection process, the system 20 logic could run through the
various
scenarios on these new, generic items that the consumer added to the list,
displaying
switching alternatives and pairing options for the consumer to select from.
Alternatively,
the consumer can select items by way of a text box, as discussed above.
[0129] FIGS. 19A and 19B illustrate an exemplary shopping list and the
application of
the enhanced shopping and merchandising system described above.
[0130] Obviously, many modifications and variations of the present invention
are
possible in light of the above teachings. Thus, it is to he understood that,
within the scope
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,
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of the appended claims, the invention may be practiced otherwise than as
specifically
described above.
10131] What is claimed and desired to be secured by a Letters Patent of the
United States
is:
