Previous studies have shown that many consumer goods manufacturers believe that their promotions are not well executed in retail stores. One common concern is that in-store promotions are not synchronized with television and online advertising campaigns. In recent years, RFID has been actively promoted as a tool to improve in-store promotion execution. This paper presents the results of a study in which promotional displays were tagged with RFID tags and tracked as they moved from a retail distribution center to a number of different retail stores. The analysis shows that only 28% of all displays are placed on the shop floor within +/-3 days of the official promotion launch. Our analysis suggests that by adjusting the timing of the delivery to the store the performance could be improved such that 87% of all displays are present on the shop floor within this time frame. The results confirm that RFID is a useful diagnostics tool to measure promotion execution performance and to identify business process shortcomings. The results also suggest that a continuous measurement via RFID is not required to improve performance
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