1. Driving executional excellence by leveraging new technology
Winning at the shelf
Driving executional excellence
by leveraging new technology
Sharon Skurnac, Nielsen
Alejandra González, Kimberly-Clark
October 1, 2014

2. MANUFACTURERS VS. RETAILERS
Both have different structures that are constantly interacting with each other to satisfy consumer needs
MANUFACTURER
RETAILER
Top Management
Business Units / KAM
Regional Managers
Sales Force Operations
Top Management
Purchasing
Central Warehouse
Store Managers

3. Top Management Target assignment and results follow up
A WELL-OILED MACHINE
Each function needs to execute the strategy effectively to realize growth
KAM & Catman
Negotiation x
Marketing
Operations
Sales Force
Business unit strategies
Trade
Marketing
Drugstores
Supers
Conv. Stores
Traditional
Strategy by channel
Self Service
Convenience
Traditional x
Strategies &
Negotiations execution

4. PLANNING Vs. EXECUTING Different meanings by function EXECUTION
BUSINESS NEED
SOLUTION
FOCUS
IMPACT DURATION
Plan execution by designing optimal strategies
ROI Impact
Market / Portfolio
Long
1 Year +
Detect competitors’ performance and opportunity detection
Improve execution by detecting opportunities
Compliance
Retailer / Category
Medium
1 – 3 Months
Determine inputs to the strategy from real execution gaps
Measure execution with robust key performance indicators
Store Check
Store / Item
Short
1 – 7 Days
Strategies to correct common execution gaps
Trade/Brand
Marketing
Catman &
Trade
Field Sales

5. INTRODUCING NIELSEN MIRROW
Nielsen Mirrow supports executional insights across all functions
Product A
Product B
Product C
Product D
Turning mobile photos into actionable store insights.

6. Capturing the WHOLE store with Mirrow
An all-in-one recognition tool
✓ Photo recognition
✓ Manual scan
✓ Questionnaires
COLLECTION METHODS
✓ Primary shelf
✓ Secondary shelf
✓ Macro exhibits
✓ Displays & end-caps
✓ Coolers
STORE LOCATIONS
✓ Modern trade
✓ Traditional trade
✓ Specialty stores
CHANNELS

7. THE mirrow picture – multiple perspectives
One market reality with multiple perspectives…
LEVERAGED FOR BY
Execution follow-up tool
Top Management
Strategy insights, opportunity areas detection
Business Units/ Trade Marketing
Negotiation tool
Key Account Managers / Category Managers
Performance / incentives / improvement tool
Regional Managers
Negotiation and performance improvement tool
Sales Force Operations

8. KIMBERLY-CLARK diapers CASE STUDY

9. Kimberly-clark opportunity
Single source of the truth for execution
CURRENT PROCESS
Multiple data sources
Store-level insights limited (manually collected) and often slow to gather
Competitive intelligence often limited to hearsay
Disparate spending pools for promotion communications and execution
Functionality-contained analysis of execution
OPPORTUNITY WITH MIRROW
All data from Mirrow
Fast and full view of 700 stores
Photo evidence and competitors’ activity
One measure of compliance across KC enterprise
Common language and view through entire organization

10. Nielsen mirrow – kimberly-clark
Flexible tool to provide in-store insights
KC NEEDS
EXECUTION OPERATIONS
COMPETITOR MONITORING
PRICE TRACKING
CATMAN FOLLOW-UP
Quick Response
Detailed Information
Situation Evidence
High Scalability
KIMBERLY-CLARK EXPECTATION FOR IN-STORE MONITORING:
Successful execution process with Multinational and Local Retailers
Continuous follow-up for executional activities
Incentives for sales force
Execution performance feedback

11. Executional guidelines
Ensuring end-to-end measurement and response to executional activity
EXECUTION OPERATIONS
Shelf & Special Exhibitions strategy compliance
Brand communication
Offers & promotions activation
COMPETITOR MONITORING
Competitor activity follow-up
Promotions and offers activation
Special exhibitions
PRICE TRACKING
Price strategy compliance
Competitor price monitoring
CATMAN FOLLOW-UP
Planogram compliance

12. KC diapers case study - EXECUTION SUMMARY
TOTAL MARKET – RETAILER #1
SCORE TREND BY INDICATOR
J F M A M J J A S O N D
Average overall execution with wide swings across metrics
TOTAL COMPLIANCE
OPERATIONAL EXECUTION
SHELF COMPLIANCE
COMPETITIVE INTELLIGENCE

13. Operational execution – scorecard
TOTAL MARKET – COMPLIANCE BY KPI
Retailer 1 not delivering on assortment, space or promotions
TARGET
RETAILER #1
RETAILER #2
PRODUCT AVAILABILITY
12 items avg by store
10 items
13 items
NUMBER OF FACINGS BRAND 1
25 facings avg by store
26 facings
LINEAR METERS BRAND 1
35 mts avg by store
32 mts
35 mts
SPECIAL EXHIBITIONS
4 exhibits. Avg by store
2 exh.
4 exh.
POP MATERIAL
80% stores
85%
82%
PROMOTIONAL ITEM
90%
89%
ACTION BY FUNCTION
Sales, Key Account Managers: Negotiation compliance with Retailer
Operations: Executional gap closure at store level
Marketing / Trade: Strategy compliance, New item review
Score by Retailer
Total Market Score
Retailer #1
Retailer #2
Operational Execution

14. Operational execution – scorecard
STORE #1 – COMPLIANCE BY KPI
TARGET
STORE #1
PRODUCT AVAILABILITY
12 items
10 items
NUMBER OF FACINGS BRAND 1
25 facings
26 facings
LINEAR METERS BRAND 1
35 mts
32 mts
SPECIAL EXHIBITIONS
4 exhibits
2 exhibits
POP MATERIAL
Presence
PROMOTIONAL ITEM
Operational Execution
Store #1 Score
Photo evidence of gaps to close by store

15. Store to-do list – operational execution
Retailer #1
STORE #1
STORE #2
Correct OOS for Huggies Supreme
Increase 7 facing units for Huggies
Implement an island or end shelf in the store
Increase +8 facings for KleenBebe
Implement an island or end shelf for Huggies in the entrance
STORE #3
Correct OOS for Huggies and KleenBebe
Implement a special exhibition for KleenBebe in the entrance
Top 3 items to correct by store focuses field reps and drives largest impact on outcomes

16. Competitive intelligence – scorecard
TOTAL MARKET – COMPLIANCE BY KPI
Competitive positioning impacted for price in Retailer 2 and promotions in Retailer 1
TARGET
RETAILER #1
RETAILER #2
PRICE
COMPLIANCE
15 items less than 5% variance to target
15 items
6 items
SHARE
OF FACINGS
25% KC
28%
30%
ADJACENCIES IN SHELF
Brand segment OK
SHARE OF EXHIBITIONS
30% in checkouts
15%
30.%
OF POP
40% in shelf
40%
ACTIONS BY FUNCTION
Sales, Key Account Managers: Retailer negotiation – get what was paid for
Operations: Visibility on competitive focus by store
Marketing / Trade: Opportunity and risk assessment
Score by Retailer
Operational Execution
Total Market Score
Retailer #1
Retailer #2

17. Competitive intelligence – scorecard
STORE #1 – COMPLIANCE BY KPI
TARGET
STORE #1
PRICE COMPLIANCE
15 items less than 5% variance to target
10 items
SHARE OF FACINGS
25% KC
28%
ADJACENCIES
IN SHELF
Brand segment OK
SHARE OF EXHIBITIONS
30% in checkouts
15%
SHARE OF POP
40% in shelf
20%
Competitors picture
Competitors picture
Competitors picture
Competitors picture
Store #1 Score
Significant gaps in price and promotion in Store 1 need to be closed.
Operational Execution

18. Shelf execution – what does the perfect shelf look like?
Recommended shelf driven by business portfolio strategy, shopper research, retailer negotiations

19. Shelf execution scorecard
TOTAL MARKET – COMPLIANCE BY KPI
TARGET
RETAILER #1
RETAILER #2
BRAND SEQUENCE
80% of stores with less than 10% of variance of
sequence, according price strategy
80%
87%
STAGE SEQUENCE
80% of stores with less than 30% of variance of small sizes at top, large sizes at bottom
14%
BRAND STRATEGY
80% of stores with less than 30% of variance of All the stages for each brand 0%
12%
Combined executional performance not meeting objectives in market
Score by Retailer
Operational Execution – 50%
Total Market Score
Retailer 1 – 33%
Retailer 2 – 66%

20. Operational execution – scorecard
Store #1 Score = 33%
RETAILER 1 STORE 2 COMPLIANCE BY KPI
<10% of variance for
sequence according price strategy
<30% of variance of small sizes at top, large sizes at bottom
<30% of variance of all the stages for each brand
TARGET
15 items less than 5% variance to target
25% KC
Brand segment
STORE #1
6.91 %
44.4%
77.78%
COMPLIANCE
Incidents
Huggies Space Reduced
Unexpected Big-Size Formats
Vertical Stages Implementation
PLANOGRAM
REALOGRAM 1 2 3
ACTION BY FUNCTION: Catman: Key stores follow-up, negotiation and strategy feedback/ Operations: Execution at store level and reaction/ KAM: Negotiation

21. Common shelf gaps across both retailers
Impact to shopper perception of category due to shelf conditions
Price & Brand Disorder
Horizontal Stages Implementation
New Big Size Formats
Size Disorder

22. Assortment Compliance
Retailer
% Items
Not Authorized But In Store
% Items Authorized
And In Store
But Not In Store
Retailer 1
Store 1
29.3%
24.1%
46.6%
Store 2
36.9%
27.7%
35.5%
Store 3
43.1%
30.9%
26.0%
Store 4
28.8%
33.6%
37.6%
Store 5
28.7%
26.6%
44.8%
Store 6
26.9%
34.3%
38.8%
Retailer 2
9.0%
79.1%
11.9%
9.9%
74.6%
15.5%
13.5%
67.6%
18.9%
4.8%
69.8%
25.4%
8.2%
71.4%
20.4%
10.4%
74.0%
15.6%
Store 7
11.3%
75.3%
13.4%
Store 8
9.5%
67.4%
23.2%
Attempts to influence shopper behavior compromised due to lack of assortment compliance

23. Retailer 1 summary
Planned strategy is not being followed by the retailer. Evaluate need to reopen negotiations, adjust internal plans, etc.
Assortment in store not as planned. Evaluate retailer negotiations, pricing strategy, portfolio strategy.
New Large-Size formats missing from stores. Increase focus on promotions and distribution.
Close gap on size blocking within retailer.

24. Retailer 2 summary
Overall good implementation of the strategy – getting what has been agreed and paid for.
Good assortment compliance. Evaluate opportunity to test new products with this retailer.
Tight focus on closing OOS in specific stores.