1. Using SPSS “Compare Means” Making short work of the category tabulations

2. Microsoft Excel Spreadsheet Have audit data on “top” of Excel workbook, or note the “tab” designation. (Don’t have additional data in file, on additional tabs.) First row becomes the variable labels First column should be number assigned to each supplier (0=private label,1=leading brand) Do all initial editing, corrections to this Excel spreadsheet—use SPSS for analysis and minor formatting changes once all error are spotted.

3. SPSS Commonly sold software, “Statistical Package of the Social Sciences,” Now owned by IBM Not unique in any important ways, more powerful statistical techniques written in advanced software packages. All use Excel spreadsheets for data

4. Common Errors in the Audit Spreadsheet Duplications of a variable name in top row. Negative gross margins—too high of cost estimated for the SKU, some can be tolerated Percent gross margins on private label items below those for leading brands—double check this! Failure to include a number column in spreadsheet: – 0 for private label – 1 for leading supplier, 2 for second, etc. – This permits use of “Select Cases” command in PASW

5. SPSS“Housekeeping” File, Open, Data, to open Excel file (“Files of Type,” Excel *.xls) You’ll probably spot some errors, after all errors are corrected, use Value Labels command to assign supplier names to the number coding in first column (first variable). Common “error” is formatting of “percent gross margin.” Do this to 0 decimal places.

6. Select Cases “Data, Select Cases, If condition is satisfied” All private labels coded “0” for “MNO” All brands found at competing retailers = 1,2,3, 4,5. Any brands not found at competing retailers, not private label listed as “Others” Select brands for analysis by using “If conditions is satisfied “MNO <6”

7. Using Compare Means Analyze, Compare Means, Means… Dependent variables and independent variables Options—Means or Percentages? Copy SPSS output and “paste special picture” directly into an Excel spreadsheet Copy and paste from an Excel spreadsheet into PowerPoint presentation.

8. Required I: Share of Shelfspace Dependent variables: Use the facings variables for selected retailers. Independent variable: Manufacturer (first column) Change Options from Default (for each cell): – % of Sum (share of facings) – % of Total N (share of SKUs) – N=number of SKUs

10. Share of Shelfspace Favored “Brands:” %SKUs < % Shelfspace – Clue to Category Captain, if your share of facings is greater than your share of SKUs, it’s a favorable position for the supplier – Dominant brands: %SKUs > % Shelfspace, indicates the supplier is either being “held back” or trying gain shelf space by increasing depth

11. Required II: Share of Gross Margin Dollars Dependent variables: Use the gross margin dollars ($) variables for selected retailers. Independent variable: Manufacturer (first column) Change Options from Default (for each cell): – % of Sum (share of gross margins) – % of Total N (share of SKUs) – N=number of SKUs

13. Required III: Percent Gross Margin and Manufacturer Dependent Variable: Gross Margins Percents (%) from selected retailers Independent Variable: Number for Manufacturer (or MFR) Options: Mean % of Total N (share of SKUs) and N Which suppliers provided highest percent gross margins—did these vary by different retailers?

15. Examining Mean % Gross Margins What variation do you see across retailers within the leading brands? What should it tell you about the prices? What do see regarding private labels, and unique brands? – If percent gross margins are lower on private label items—what’s your interpretation? – If unique brands have a lower percent gross margins and low dollar gross margins…

16. Interpreting Share of Shelfspace and Gross Margin by Manufacturer Prices (and gross margins) actions benefitting a supplier will be low, or below average. A supplier’s line with above average, or higher gross margins will be higher, or above average will benefit the retailer. Remember: these are the retailer’s gross margins—not the suppliers

17. Option II: Gross Margin and Distribution Intensity Dependent variable: Selected Gross Margins (Wal*Mart, Target, Walgreens) Independent: Number of stores carrying the product Options: Mean, N, Std. Deviation “Do intensively distributed brands/SKUs really have the lowest gross margins?”

18. Preparing for the Exam Run these required three SPSS procedures on your audit data: – Groups should select 4-5 stores that show that reveal the greatest intrachain differences. – Does one manufacturer appear to be “in control” of the category? – Which retailer shows the strongest interest in private label? Does any retailer care about P/L? – Are there retailers whose action can’t be understood without the volume data?