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Neighborhood / Store Merchandising
Presented by Tom Gittins
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Key Messages You have to get it right at the shelf.
Getting it right at the shelf requires a system that is: Integrated Scalable Flexible
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A Solution for Key Issues
Space Automation A Solution for Key Issues “No amount of advertising will offset the importance of merchandising at the shelf” - D. Ogilvy
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Potential Revenue Growth
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Bishop Consulting The study was conducted at the SKU level for 6 departments across 3 supermarket chains. Findings: Shifting excess facings to higher volume SKU’s would yield a 1.7% sales increase or $340,000 per store. Eliminating unproductive inventory would yield $493,000 per store capital savings.
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Key Messages You have to get it right at the shelf.
Getting it right at the shelf requires a system that is: Integrated Scalable Flexible
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IRI Business Performance Solutions
Performance Dashboards, Alerts and Reports Continuous Category & Assortment Planning Store-Specific Space Planning & Automation Loyalty Marketing & Analytics Revenue Management – Price & Promotion Planning Integration / BPM Platform Order Mgmt Pricing Store POS Customer IRI Scan IRI Panel Comp Price Other Internal Data External Market Data
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BPM Solutions Interoperability – Built to work together with common data, analytic engines, and reporting Pre-built CPG Solutions – 80% of what you need comes out-of-the-box (e.g. integration between Category Management, Assortment, Space, Execution, and Compliance) Flexibility of Change – The tool set is designed to read, manipulate, and present large amounts of data quickly and easily.
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The Evolution of Space Automation
Automate Location with IF/Then Statements High Volume Planogramming Automate Re-Allocation 2000 2005 1990 1995 2002 Automated Add & Delete Rules Based Planogramming
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Closed-Loop Process Compliance Cat Mgmt/ Scorecards Publishing
Item data per planogram per section and store Time history (revisions) Extensive set of measures Cat Mgmt/ Scorecards Daily update Compliance Publishing Assortment Workflow Automated ETL process Create POGs Edit Rules Daily update Item rank per sub category Required vs. optional items Structured approval workflow [optional]
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Closed-Loop Process Compliance Cat Mgmt/ Scorecards Publishing
Item data per planogram per section and store Time history (revisions) Extensive set of measures Cat Mgmt/ Scorecards Daily update Compliance Publishing Assortment Workflow Automated ETL process Create POGs Edit Rules Daily update Item rank per sub category Required vs. optional items Structured approval workflow [optional]
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Closed-Loop Process Compliance Cat Mgmt/ Scorecards Publishing
Item data per planogram per section and store Time history (revisions) Extensive set of measures Cat Mgmt/ Scorecards Daily update Compliance Publishing Assortment Workflow Automated ETL process Create POGs Edit Rules Daily update Item rank per sub category Required vs. optional items Structured approval workflow [optional]
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People create the Merchandising Rules
BPM Web Merchandising Rules Store Data Cat/Brand Mgr. Job & Process Controllers Merchandiser Partner People create the Merchandising Rules Computers combines Rules & Store Specific Data to generate planograms
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Rule Editor
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Brand = Kellogg’s Brand = Other Brand = General Mills
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Space Automation uses Merchandising Blocks to place items
Kellogg’s Gen Mills Other Space Automation uses Merchandising Blocks to place items
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Wheaties to General Mills Block, Shelf 1
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Frosted Flakes to Kellogg’s, Shelf 1
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More Frosted Flakes to Kellogg’s, Shelf 1
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Brand = Kellogg’s Brand = Other Brand = General Mills
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Rule Editor
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Rule Editor
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Rule Editor
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Rule Editor
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Closed-Loop Process Compliance Cat Mgmt/ Scorecards Publishing
Item data per planogram per section and store Time history (revisions) Extensive set of measures Cat Mgmt/ Scorecards Daily update Compliance Publishing Assortment Workflow Automated ETL process Create POGs Edit Rules Daily update Item rank per sub category Required vs. optional items Structured approval workflow [optional]
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Reports to Category/Brand Manager
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Query the data to understand the rules
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Closed-Loop Process Compliance Cat Mgmt/ Scorecards Publishing
Item data per planogram per section and store Time history (revisions) Extensive set of measures Cat Mgmt/ Scorecards Daily update Compliance Publishing Assortment Workflow Automated ETL process Create POGs Edit Rules Daily update Item rank per sub category Required vs. optional items Structured approval workflow [optional]
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Facings Grid to Eval Store Specific Planograms
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Closed-Loop Process Compliance Cat Mgmt/ Scorecards Publishing
Item data per planogram per section and store Time history (revisions) Extensive set of measures Cat Mgmt/ Scorecards Daily update Compliance Publishing Assortment Workflow Automated ETL process Create POGs Edit Rules Daily update Item rank per sub category Required vs. optional items Structured approval workflow [optional]
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Store 3
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Direct Feedback From the Field
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Collect Realograms and Monitor Compliance
Download to PDA Using the PDA Display to correct the shelves View exceptions at HQ Track at HQ
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Compliance Exceptions - Facings
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Closed-Loop Process Compliance Cat Mgmt/ Scorecards Publishing
Item data per planogram per section and store Time history (revisions) Extensive set of measures Cat Mgmt/ Scorecards Daily update Compliance Publishing Assortment Workflow Automated ETL process Create POGs Edit Rules Daily update Item rank per sub category Required vs. optional items Structured approval workflow [optional]
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Key Benefits Increase Market Share Increase Sales per Customer
Increase Customer Penetration Increase Profitability per Category Increase Speed to Shelf / Reduce Out-of-Stocks Increase Turns / Decrease Inventory Carrying Costs Improved Planogram Compliance
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A Solution for Key Issues
Space Automation A Solution for Key Issues “No amount of advertising will offset the importance of merchandising at the shelf” - D. Ogilvy
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Assortment Process Rules Based Planning
Assort Tactics Assortment Process Rules Based Planning Opt SKU Count Item Potential Trans Demand Add, Keep, Delete Validation Local Assort Exception Item Rank Assort Mix Space Customer Final Assort Space Automation Assort Updates
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Closed-Loop Neighborhood Merchandising Flow
Establish Objectives Acquire / Align Information Create Effective Assortment Accurate POG Distribute & Implement Verify Compliance
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NEIGHBORHOOD / STORE MERCHANDISING SOLUTION
Establish Objectives Acquire / Align Information Create Effective Assortment Accurate POG Distribute & Implement Verify Compliance NEIGHBORHOOD / STORE MERCHANDISING SOLUTION Category Review Compliance Tool Objectives Assortment Optimization Rule Engine W E B Store Specific Allocation Engine Web Publishing Engine Web Browser New Assortment Exception Report Generator Report Generator Macro/Micro Merchandising Rule Engine
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NEIGHBORHOOD / STORE MERCHANDISING SOLUTION
Establish Objectives Acquire / Align Information Create Effective Assortment Accurate POG Distribute & Implement Verify Compliance NEIGHBORHOOD / STORE MERCHANDISING SOLUTION New Product Cut-In Objectives Compliance Tool W E B Store Specific Allocation Engine Web Publishing Engine Web Browser New Assortment Exception Report Generator
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