Kellogg Edges Out Competition Using GRiDPAD Computers
FREMONT, Calif. — January 4, 1991 — People don't usually think of breakfast cereal as being a high-tech product, but in the very competitive cereals market high tech can make the difference between a winner and a loser. After equipping its retail sales reps with state- of-the art, pen-and-display GRiDPAD(TM) computers from GRiD Systems Corp., and FASTECH Sales Information System software from FASTECH Inc., Kellogg (NYSE: K) has clearly positioned itself to be a winner.
In an industry where new products have only about 90 days to prove their worth to retailers, the key to success for companies such as Kellogg is rapid turnaround of information. Vital statistics such as product positioning, facings (how many rows of product are displayed on the shelf) and in-store display participation must be analyzed as soon as possible in order to assure that a product has a fighting chance against its competition.
In the past, these statistics were collected and analyzed via bubble forms, similar to SAT test forms. Sales reps would fill in the appropriate bubbles for each product and retail store, then send the completed forms into headquarters for processing. At best, this resulted in a six to eight-week turnaround time for information.
"The response time of the older system made it almost impossible to get the kind of feedback needed to quickly find out which products were selling or not selling and to take appropriate action," according to Richard Hirsh, vice president of marketing and sales for FASTECH, the Broomall, Pa., company that developed the GRiDPAD software for Kellogg.
Kellogg turned to FASTECH, a software and systems integration firm specializing in consumer package goods sales forces, for a solution. FASTECH chose the pen-based, battery-operated GRiDPAD as the heart of that solution, based on its strong reputation as an easy-to-use data collection device. Now, each sales rep carries a GRiDPAD equipped with two half-megabyte RAM cards, an integrated 2400-baud modem and a custom territory management software package from FASTECH.
The software takes advantage of the GRiDPAD's unique pen and touchscreen interface to allow the reps to easily enter the information they collect directly into the computer. Unlike other portable computers, the GRiDPAD allows numbers to be handwritten on the screen and recognized by the computer, and boxes be checked off with a simple and intuitive touch of the pen. Information entered this way by Kellogg sales reps is then stored in the GRiDPAD, accessible through a variety of reports and summaries (the reps also carry a portable printer for hard copy reports) and ready to be transferred to Kellogg's database.
Unlike the old bubble forms, the GRiDPAD allows information to be added to the company's database the same day it's collected, via the built-in 2400-baud MNP modem. At the end of the day, the sales representatives simply connect the GRiDPAD to a telephone line and retire for the evening.
The software automatically makes a phone call and transfers the information to the database while they sleep. It also receives updated assignments from Kellogg's Battle Creek, Mich., headquarters. The next morning the reps simply check their GRiDPADS for the day's assignments and objectives.
The company database is maintained by FASTECH on a mainframe computer. It consists of information from all the territories in a national sales area and can be accessed by Kellogg's management via laptops or desktop computers equipped with modems and standard communications software.
How exactly is the information used? Hirsh explained, "Account managers and sales managers tap into the database with requests such as 'show me all of the displays at Kroger last week' or 'show me all the out-of-stocks in the northwest region for the month of June.' The people back in Battle Creek will use it for national summaries. It's really designed so that each manager can get to the pertinent slices of information for him or her."
The bottom line for Kellogg is that its use of the GRiDPAD has resulted in a significant increase in the firm's ability to stay competitive in the marketplace. Hirsh concurs: "Kellogg sees itself in a very strong position competitively as a result of using this technology. The other major players in the cereal category have not automated anywhere near Kellogg's prominence, and Kellogg feels that it is maintaining its market leadership as a result."
Thus, with a little high-tech assistance from the GRiDPAD, Kellogg has assured itself of remaining a winner in a highly competitive market.
GRiD manufactures and markets laptop, pen-and-display and desktop computers, electronic mail and networking systems. GRiD, which has a worldwide direct sales and support organization, demonstrates products at 50 GRiD Systems Centers and sells products through application- specific value added resellers. GRiD is located at 47211 Lakeview Blvd., Fremont, Calif., 94538. GRiD also has offices in Canada, the United Kingdom, Germany, Spain, Sweden, France, Belgium and Denmark.
GRiD is a wholly-owned subsidiary of Tandy Corp. (NYSE: TAN), Fort Worth, Texas. Tandy is a leading manufacturer and distributor of consumer electronics and computers. A New York Stock Exchange company, Tandy has sales in excess of $4 billion annually.
FASTECH is a software and systems integrator focusing on sales force automation software specifically for the consumer goods sales organizations. A profitable, privately held firm, FASTECH is located at 450 Parkway Drive, Broomall, Pa., 19008.
GRiDPad is a trademark of GRiD Systems Corp.
CONTACT:
Bob Goligoski of GRiD Systems Corp., 415-656-4700