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Pervasive Technologies develops the analytical use of planograms in retail sector

The Spanish company of Artificial Intelligence Pervasive Technologies has applied Artificial Intelligence to perform a really useful image recognition in Planogram analysis. These work as a fundamental analytical tool to understand what happens in the shelf and make decisions that improve it and increase the purchase profitability.

Pervasive Technologies is clear that the analytical use of planograms is still the weak point in the implementation strategies of a Planogramming Plan and intends to end with this statement. By applying Artificial Intelligence, the company, based in Barcelona, is able to extract all the analytical power from the point of sale with reports and graphs that enable informed decisions to be made.

In this way, through image recognition, the brand will be able to know what is really happening with its products inserted in a shelf, about the products to be exhibited, or the necessary stock not to have losses. A good planogram study can mean the difference between having losses or gains.

The planogram is a visual representation that indicates and establishes the positioning of the products in a store, line or display. It is a scheme that establishes the “layout” of the categories at the point of sale and of the individual products within each category.

The aim is to be able to present the customer with the products in the right place, in the right quantity, at the right price at the best time in the purchasing process. Additionally, planograms allow for the establishment of a uniform style for different points of sale, something fundamental for chains with multiple locations.

To develop this project, Pervasive Technologies has the Cloud technology infrastructure and uses Google Cloud Platform with all its capabilities and Opensource Tensorflow technology, among others.

Artificial Intelligence and Deep Learning technology has demonstrated high performance in vision tasks such as image classification, object detection and semantic segmentation. In particular, recent advances in deep learning techniques bring encouraging performance to fine-grained image classification that aims to distinguish subordinate level categories, such as bird species or dog breeds.

Through image recognition, we are able to identify all the information we need the point of sale to provide. In this way, through something as simple as a photograph taken by the Point of Sale (POS) Manager with his own mobile phone, all the information necessary to carry out the analysis can be extracted.

Lack of price labels, incorrect location of products or an incorrect number of facings are some of the situations to avoid and check when complying with the planogram. When executed correctly, the planogram allows to reduce the distortions of inventory on display, to align customer preferences with the customers on display and to increase sales at the point of sale by up to 9%. On average, a display receives customer attention for only 3-8 seconds, so a planogram executed with 100% compliance can mean the difference between making or losing a sale.

The Planogram Analysis solution is in the Beta phase and has been tested by two Pervasive Technologies clients, one in Spain and the other in Argentina, although tests with clients in the United States will begin shortly and the commercial launch is planned for the end of October this year.

Pervasive Technologies is an innovative company specialized in the construction of predictive solutions using advanced systems of Artificial Intelligence, Machine Learning and Deep Learning. These solutions are applicable to companies in sectors such as: Retail, e-commerce, energy, manufacturing, banking and insurance, telecommunications and agriculture, among others.

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