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About

PepsiCo, a global leader in food and beverages, faced growing challenges in managing its in-store merchandising operations across diverse and often complex markets such as Latin America.

Region

North America

Categories

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Challenge

Key issues included: • Inconsistent product placement and poor adherence to planograms. • High operational costs tied to outdated and manual merchandising processes. • Limited visibility into shelf conditions, product availability, and pricing in real time. • Ineffective tools for managing merchandising across thousands of stores, often without internet connectivity.

Solution

Shelf Intelligence – AI-Powered, On-Device Image Recognition
Key Capabilities:
  • On-Device Image Recognition: AI models run directly on mobile devices, enabling offline audits even in remote areas.
  • High-Speed Performance: Shelf recognition is completed up to 100x faster than cloud-based alternatives, with no need to send photos to a server.
  • Realogram vs. Planogram Matching: Real-time comparison of shelf state with planograms to detect gaps or misplacements.
  • Price Tag Recognition: Pricing identification and mapping of prices to products with high accuracy.
  • Actionable Shelf Analytics:
    • Share-of-shelf measurement
    • Competitor price tracking
    • SKU-level availability audits
    • POSM (point-of-sales material) checks
    • Trend analysis by SKU, location, and time

Technical Advantages:
  • Seamless integration with PepsiCo’s internal platforms
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  • Optimized for performance on both high-end and older Android and iOS devices.
  • Built with a scalable back-end architecture designed for global rollout and real-time data sync.

Results

📈Business Impact
  • +3% sales uplift, translating to $750,000 in additional profit.
  • $2.4M annual cost savings by eliminating cloud processing and reducing audit-related overhead.
  • $3.15M in total financial benefit within the first year.

⚙️Operational Efficiency
  • Reduced audit cycle time, enabling reps to visit more stores per day.
  • Real-time access to shelf data and KPIs at the point of sale.
  • Clean data flow into internal systems with lower bandwidth and storage needs.

✅Performance & Accuracy
  • 96–98% image recognition accuracy, exceeding industry benchmarks.
  • Zero bugs or technical debt at launch.
  • Full offline functionality, supporting remote and bandwidth-limited regions.

🔒Scalability & Security
  • Seamless integration into PepsiCo’s ecosystem.
  • Supports decentralized analytics across regions and time zones.
  • Built-in support for advanced features (on-demand loading, Flex Mode, CI/CD).


Conclusion:

PepsiCo’s collaboration with SmartLook and Grid Dynamics represents a breakthrough in AI-powered retail execution. Shelf Intelligence not only automates and optimizes shelf audits but also enables smarter, faster decisions at scale — helping PepsiCo maintain its competitive edge in global retail markets.

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