Dynamic Electronic Tag for Item-Level Discounting
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Solution Overview
Problem
Current methods for discounting items in retail stores are either time-intensive and costly for individual item labeling or lack the ability to mark down individual items, leading to reduced customer traffic and inefficient marketing strategies.
Innovation Solution
An electronic dynamic communication device in the form of a thin, flexible sticker or tag with a built-in timer and display, capable of generating and displaying discount information at random or predetermined times, allowing for item-level discounts and promotions, reducing the need for employee re-labeling and minimizing overhead costs.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If individual items are marked down ad-hoc by store employees, then individual item discounting is achieved, but store time and labor costs increase
Solution Approach 1:
The electronic shelf label (ESL) performs self-service by automatically updating discount information without requiring employee intervention. The label receives wireless commands from a central system and updates its display autonomously, eliminating the need for employees to physically re-label items during price changes.
Solution Approach 2:
The patent replaces the mechanical manual labeling process with an electronic wireless communication system. Instead of physically attaching new labels or rewriting prices, the system uses wireless signals to transmit pricing data to electronic displays, substituting mechanical labor with automated electronic updates.
2Productivity
If items in bulk are marked down by entire SKU, then labeling time is reduced, but individual item discounting capability is lost
Solution Approach 1:
The electronic shelf label system enables local quality control by allowing individual items or specific locations within a product category to receive targeted discount commands. The wireless communication system can address specific ESL units individually, enabling selective discounting of particular items while leaving others unchanged, thus achieving both efficiency and individualization.
3Stability of the object's composition
If discounts are offered on a scheduled basis, then customer visit patterns become predictable, but store traffic frequency decreases
Solution Approach 1:
The system transitions from static scheduled discounts to dynamic real-time discounting. The electronic shelf labels can update pricing information at any time based on inventory levels, demand patterns, or promotional strategies, allowing the retailer to create urgency and drive immediate customer visits rather than relying on predictable weekly schedules.
4Adaptability or versatility
If hand-marking discounts is done frequently, then individual item pricing flexibility is maintained, but operational costs increase
Solution Approach 1:
The electronic shelf label serves multiple functions: displaying base prices, showing discounted prices, indicating product information, and providing promotional messaging. This multi-functionality consolidates what would otherwise require separate manual processes into a single automated device, reducing operational complexity and cost while maintaining pricing flexibility.
Data Source
AI summary
An dynamic electronic communication device. The tag according to embodiments of the invention is designed or set to discount, promote, incentivize, or apply information at certain states or within a certain timeframe at initial deployment, the tags themselves being capable of handling the logic. The tag generally includes a circuit, such as a silicon chip, that controls a flexible printed display, which displays the information when applied. The tag is optionally encapsulated in a plastic or glass case. The tag is made of a suitably small size such that the tag can easily be placed on individual items, and can be secured to other objects via an adhesive backing, sewn in, pinned on, and the like.