ELECTRONIC SHELF LABLING

A Detailed Report

BY Kapil Batra Krishna Sai Annepu Sanya Ratan Ritika Dang Fen Joe Sebastian N.V.R.S.Manideep Nulu

Introduction about NISA

Nisa Retail Limited is a brand and buying group of independent retailers and wholesalers in the United Kingdom. Its headquarters and ambient distribution depot are located in Scunthorpe, North Lincolnshire. It also has distribution depots for temperature controlled products at Stoke-onTrent, Staffordshire and Harlow, Essex. It is a mutual organisation owned by its members and operating like a co-operative, using the collective buying power of the large group of members to negotiate deals with suppliers.

History
The present organisation can trace its history back to 1977 when Peter Garvin, a Yorkshire-based retailer, met Dudley Ramsden, a wholesaler whose family owned a supermarket in Grimsby. The company was called the Northern Independent Supermarkets Association and comprised 30 retailers, with a turnover of 20 million. Garvin had established NISA some years earlier as a means of fighting the larger supermarket chains of the time but had struggled with the format and future growth. A chance meeting with Ramsden at an industry gathering at a hotel in Bawtry allowed Ramsden to see the potential of the idea. The Retail chain also has started 3 brands of its own in the packaged food section-Heritageselect Our premium range offers extra special products to make meal times even more enjoyable. Eg: premium scotch beef sausage

Heritage
A broad range of fantastic products available at great prices. eg. large free range eggs

Heritagevalue
Nisa's value range provides a range of high quality products at affordable prices. eg. sugar free cola. Present Scenario -In 2011 Nisa Retail Limited opened its new distribution centre for Scotland in Livingston.As of 2012, Nisa Retail Limited represents over 1080 registered shareholders operating over 4,000 convenience stores and small supermarkets, including the Costcutter symbol group.they follow many strategies for being the dominant market players- they have started many lucky draws and every week people can register for the same and gain prizes, most of which are grocery items.

Introduction about Herbert

Herbert is an established provider of class-leading solutions to major

organizations in fast moving industries in the UK. From retail, warehousing, logistics and hospitality, to healthcare, petrol forecourts and local authorities. They focus on business improvement, with technology driven solutions delivering increased productivity and the competitive edge.

They are premier UK partners to Honeywell, Intermec, HP, Casio, CashGuard, RetailPro, Getac, Airwatch, Toshiba, Zinwave KoamTac, Zebra and more. They offer mobile computers, scanners, POS systems, printers, cash handling, weighing, labelling and slicing equipment, electronic shelf edge labels (ESLs), retail and workforce software, along with industry leading installation, service and support.

NEEDS AND PROBLEMS :

Nisa is one of the leading convenience stores in the United Kingdom.Due to the economic depression in UK in 2008, the disposable income of the consumers has decreased considerably. Therefore, the consumers started being drawn to extreme value retailers such as 99 pence store and other retailers of that sorts. Consequently,the footfall for such stores increased and Nisa also ventured into this class of retailing. 1. In order to face the competition from its competitors, NISA had to find some or the other way to increase the augmented value that it offers to the consumers. 2. It is important for a retailer to be dynamic and keep up with the pace of the retail industry itself. 3. The role of MIS has become immensely significant in the last decade, thus, it was high time that the retail chain, NISA, developed or adopted an information system for themselves. 4. Brand Building. Use of innovation or extremely satisfactory sales and after sales service are two very trusted and used factors that carry on and put forth successfully, the value that is being offered by a retailer to his customer. This will prove to be an important tool to offer competition to other retailers of the same class such as 99

pence store 5. CURRENT MARKET SCENARIO : As discussed earlier, the customer behavior has changed significantly over the past. The customers today, prefer to buy in a local store, in smaller quantities, frequently. This means that a customer will visit the store very often, also, he/she will want to have the same shopping experience that they have in a supermarket and also expect to get the same promotional offers on a particular product. In order to meet these demands, costs have to be cut down in other departments of the store.

Gaining competitive advantage, enhance the customer experience

ESL enables store owners to make automatic pricing and timed promotional updates as and when required at any time of the day or night. Among the many advantages, ESL cuts the cost of printing labels and offer savings in staff time when distributing and applying updated labels. They also provide meaningful business metrics and facilitate efficient re-stocking and aid in-store customer retention.

ROLE OF ORGANIZATION IN COMING UP WITH A SOLUTION TO THE PROBLEM :

The role of an organization in designing of the solution is to bear in mind the future interests of the firm and then take a decision on what kind of technology is to be used or adopted in order to suit those interests better. However, in this case, it is pretty evident, what are the needs of the store and the challenges that need to be overcome by it to accomplish its future goals. Basically, there are two types of technology :

1. One which enhances the business. 2. One which improves business efficiency and productivity. Implementing ESL will enable you to achieve significant

financial benefits: Research has demonstrated that a supermarket of 4,000m can achieve a net annual profit increase of 7.9%when it adopts ESL technology and that retailers can see a return on their initial capital investment within 1.4 years. Improved waste management using adaptive pricing strategies can result in a significant reduction in lost revenue and help retailers meet the increasing demands of both consumers and legislation to reduce waste. Improved cross-sell and up-sell strategies can have a considerable impact on volume and increase the size of a customers basket. Improved operational processes reduce costs associated with merchandising and ensure that situations such as out of stock can be handled to minimize loss of revenue. Significant labor savings and efficiencies can be achieved in relation to the Existing price maintenance and price verification teams .With the interface to your stores back office systems in place pricing errors are eliminated. Integrated merchandising strategies enable a store to take full advantage of promotions and offers to the relevant audience at the relevant time throughout the day for example lunchtime pricing strategies for a city centre store. After having considered the above mentioned factors which satisfy all the needs of the store and also help the store to effectively overcome the challenges posed to it by different sources, there is still another important aspect that the organization needs to take into consideration before deciding to adopt the technology. That factor being

COST HOW IS ESL A SMART INVESTMENT ? 1.Reduces total cost of ownership

Graphic labels, segment labels, you choose smart tag labels fit on your existing rails, giving you the possibility to mix and match the labels for better cost control

2.Extra space for merchandising information

Use multiple pages for additional operational information such as stock, margin, and weekly sales. your staff misplaces one, if the battery starts running low, when it has received the update correctly, you will know right away.

3. keep track of your labels

Because our labels also communicate back to the system , you are able to monitor them from your central office. If your staff misplaces one, if the battery starts running low, when it has received the update correctly, you will know right away. After having carefully considered all the above mentioned factors, the organization takes the decision on whether or not to use the technology that is in question. In this case, ESL.

Role of management
The decisions to be made in the area of managerial control are largely dependent upon the information available to the decision makers. Commonly their decisions are based on price, so the most important thing for stores, is to ensure that pricing is easy to see and compelling, encouraging repeat purchase and customer retention. ESL technology facilitates this dynamically, allowing time-of-day promotions, and also facilitates added-value point of purchase information, such as cost per unit, recipe ideas, QR codes, suggestions for accompanying products, such as wine to compliment your meal choice, and much more. It is basically a middle level where planning of promotions and also maintaining the inventory are done and whenever an order is voided, the reasons for the void are keyed in which later helps in management decisions, especially if the voids are related to non availability of the products so esl helps in improved operational processes reducing costs associated with merchandising and ensure that situation of out of stock can be handled. The managerial control that is middle level also gets customer feedback and is responsible for customer satisfaction. Customers are now using the internet and smartphones, as well as going in store to compare prices, prior to making their purchase decisions. Bring your physical store up to digital speed and close the purchase in store with digital labels you can adjust your prices as fast as they are adjusted in your web store, and give your customers the same quality experience no matter how they shop and through this it helps in retaining the customers and providing better facilities to them in the store itself.

ROLE OF TECHNOLOGY
Basic Working of ESL

Enter the Product Description in the Database

Assign the product the electro-tag

Update the electro tags based on the requirement

Basic Work Flow for Usage of Electronic Price Tags

Step 1: Initially while implementing the system or introducing the new product, we need to enter the product description of the product into the database which will create the basic data about the particular product. Step 2: In this step we will be integrating the product data to the electronic price tag. Here we will be having products details which will be displayed to the consumer Step 3: Here in the store itself we will have the communication systems will be connected to the Ethernet with which it is connected to the server in the office back end from where the tags are updated

Fig: Model for working of electronic labels System Implementation: To implement this this system we should be reaching the following requirements such as display, updating are specified below Initially we are coming up with what the store expects from the displays and what the store is being provided

Parameter Display

Requirement
The display must be clear and legible to customers even in harsh lighting environments Two way communications between each label and the back office server is necessary so that the server can verify updates have been made correctly

What System Brings you

High power display which is energy efficient is being provided. >The implementation as a transceiver allows communications in both directions between the server and the labels >This has very good Non-Line-of-Sight and Line-of-Sight range reducing the number of communications hubs required

Communications

Assignment / Reassignment of products

Update Speeds

Long Battery Life Physical security

When labels are being assigned to new products for the first time or being reassigned to different products this process needs to complete within about 5s to avoid staff confusion store can regularly make 10,000 price adjustments in one night this needs to happen in no more than a couple of hours at most Batteries need to last a significant length of time typically 5 years based on a 5 7 update cycle per day. ESLs should be easy for staff to remove and difficult for customers to remove

It has high data rates of 6.8 MB/sec with which the data can be handled faster between systems

As the data rate is high we can The displays are provided with lock that only employs can take them off