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Copyright © IRI, 2005. Confidential and proprietary. Neighborhood / Store Merchandising Presented by Tom Gittins.

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Presentation on theme: "Copyright © IRI, 2005. Confidential and proprietary. Neighborhood / Store Merchandising Presented by Tom Gittins."— Presentation transcript:

1 Copyright © IRI, 2005. Confidential and proprietary. Neighborhood / Store Merchandising Presented by Tom Gittins

2 Copyright © IRI, 2005. Confidential and proprietary. Key Messages 1.You have to get it right at the shelf. 2.Getting it right at the shelf requires a system that is: 1.Integrated 2.Scalable 3.Flexible

3 Copyright © IRI, 2005. Confidential and proprietary. “No amount of advertising will offset the importance of merchandising at the shelf” - D. Ogilvy Space Automation A Solution for Key Issues

4 Copyright © IRI, 2005. Confidential and proprietary. Potential Revenue Growth

5 Copyright © IRI, 2005. Confidential and proprietary. Bishop Consulting - 2004 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.

6 Copyright © IRI, 2005. Confidential and proprietary. Key Messages 1.You have to get it right at the shelf. 2.Getting it right at the shelf requires a system that is: 1.Integrated 2.Scalable 3.Flexible

7 Copyright © IRI, 2005. Confidential and proprietary. Customer Comp Price IRI Scan IRI Panel Other Order Mgmt Pricing Store POS Internal Data External Market Data Integration / BPM Platform Performance Dashboards, Alerts and Reports IRI Business Performance Solutions Continuous Category & Assortment Planning Store-Specific Space Planning & Automation Loyalty Marketing & Analytics Revenue Management – Price & Promotion Planning

8 Copyright © IRI, 2005. Confidential and proprietary. BPM Solutions 1.Interoperability – Built to work together with common data, analytic engines, and reporting 2.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) 3.Flexibility of Change – The tool set is designed to read, manipulate, and present large amounts of data quickly and easily.

9 Copyright © IRI, 2005. Confidential and proprietary. The Evolution of Space Automation Automate Re-Allocation Automate Location with IF/Then Statements Automated Add & Delete 1990 19952002 2005 2000 Rules Based Planogramming High Volume Planogramming

10 Copyright © IRI, 2005. Confidential and proprietary. Closed-Loop Process Assortment Workflow Compliance  Item rank per sub category  Required vs. optional items  Structured approval workflow [optional]  Item rank per sub category  Required vs. optional items  Structured approval workflow [optional] Daily update Edit Rules Cat Mgmt/ Scorecards  Item data per planogram per section and store  Time history (revisions)  Extensive set of measures  Item data per planogram per section and store  Time history (revisions)  Extensive set of measures Automated ETL process Create POGs Publishing

11 Copyright © IRI, 2005. Confidential and proprietary.

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14 Closed-Loop Process Assortment Workflow Compliance  Item rank per sub category  Required vs. optional items  Structured approval workflow [optional]  Item rank per sub category  Required vs. optional items  Structured approval workflow [optional] Daily update Edit Rules Cat Mgmt/ Scorecards  Item data per planogram per section and store  Time history (revisions)  Extensive set of measures  Item data per planogram per section and store  Time history (revisions)  Extensive set of measures Automated ETL process Create POGs Publishing

15 Copyright © IRI, 2005. Confidential and proprietary.

16 Closed-Loop Process Assortment Workflow Compliance  Item rank per sub category  Required vs. optional items  Structured approval workflow [optional]  Item rank per sub category  Required vs. optional items  Structured approval workflow [optional] Daily update Edit Rules Cat Mgmt/ Scorecards  Item data per planogram per section and store  Time history (revisions)  Extensive set of measures  Item data per planogram per section and store  Time history (revisions)  Extensive set of measures Automated ETL process Create POGs Publishing

17 Copyright © IRI, 2005. Confidential and proprietary. Job & Process Controllers Computers combines Rules & Store Specific Data to generate planograms People create the Merchandising Rules Merchandising Rules Store Data Web Cat/Brand Mgr. Merchandiser Partner BPM

18 Copyright © IRI, 2005. Confidential and proprietary.

19 Rule Editor

20 Copyright © IRI, 2005. Confidential and proprietary. Brand = Kellogg’s Brand = Other Brand = General Mills

21 Copyright © IRI, 2005. Confidential and proprietary. Space Automation uses Merchandising Blocks to place items Kellogg’sKellogg’s Gen MillsGen Mills OtherOther

22 Copyright © IRI, 2005. Confidential and proprietary. Wheaties to General Mills Block, Shelf 1

23 Copyright © IRI, 2005. Confidential and proprietary. Frosted Flakes to Kellogg’s, Shelf 1

24 Copyright © IRI, 2005. Confidential and proprietary. More Frosted Flakes to Kellogg’s, Shelf 1

25 Copyright © IRI, 2005. Confidential and proprietary. Brand = Kellogg’s Brand = Other Brand = General Mills

26 Copyright © IRI, 2005. Confidential and proprietary. Rule Editor

27 Copyright © IRI, 2005. Confidential and proprietary. Rule Editor

28 Copyright © IRI, 2005. Confidential and proprietary. Rule Editor

29 Copyright © IRI, 2005. Confidential and proprietary. Rule Editor

30 Copyright © IRI, 2005. Confidential and proprietary.

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32 Closed-Loop Process Assortment Workflow Compliance  Item rank per sub category  Required vs. optional items  Structured approval workflow [optional]  Item rank per sub category  Required vs. optional items  Structured approval workflow [optional] Daily update Edit Rules Cat Mgmt/ Scorecards  Item data per planogram per section and store  Time history (revisions)  Extensive set of measures  Item data per planogram per section and store  Time history (revisions)  Extensive set of measures Automated ETL process Create POGs Publishing

33 Copyright © IRI, 2005. Confidential and proprietary. Reports to Category/Brand Manager

34 Copyright © IRI, 2005. Confidential and proprietary. Query the data to understand the rules

35 Copyright © IRI, 2005. Confidential and proprietary. Closed-Loop Process Assortment Workflow Compliance  Item rank per sub category  Required vs. optional items  Structured approval workflow [optional]  Item rank per sub category  Required vs. optional items  Structured approval workflow [optional] Daily update Edit Rules Cat Mgmt/ Scorecards  Item data per planogram per section and store  Time history (revisions)  Extensive set of measures  Item data per planogram per section and store  Time history (revisions)  Extensive set of measures Automated ETL process Create POGs Publishing

36 Copyright © IRI, 2005. Confidential and proprietary.

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38 Facings Grid to Eval Store Specific Planograms

39 Copyright © IRI, 2005. Confidential and proprietary. Closed-Loop Process Assortment Workflow Compliance  Item rank per sub category  Required vs. optional items  Structured approval workflow [optional]  Item rank per sub category  Required vs. optional items  Structured approval workflow [optional] Daily update Edit Rules Cat Mgmt/ Scorecards  Item data per planogram per section and store  Time history (revisions)  Extensive set of measures  Item data per planogram per section and store  Time history (revisions)  Extensive set of measures Automated ETL process Create POGs Publishing

40 Copyright © IRI, 2005. Confidential and proprietary. Store 3

41 Copyright © IRI, 2005. Confidential and proprietary. Direct Feedback From the Field

42 Copyright © IRI, 2005. Confidential and proprietary. Collect Realograms and Monitor Compliance Track at HQ View exceptions at HQ Display to correct the shelves Download to PDA Using the PDA

43 Copyright © IRI, 2005. Confidential and proprietary. Compliance Exceptions - Facings

44 Copyright © IRI, 2005. Confidential and proprietary. Closed-Loop Process Assortment Workflow Compliance  Item rank per sub category  Required vs. optional items  Structured approval workflow [optional]  Item rank per sub category  Required vs. optional items  Structured approval workflow [optional] Daily update Edit Rules Cat Mgmt/ Scorecards  Item data per planogram per section and store  Time history (revisions)  Extensive set of measures  Item data per planogram per section and store  Time history (revisions)  Extensive set of measures Automated ETL process Create POGs Publishing

45 Copyright © IRI, 2005. Confidential and proprietary. 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

46 Copyright © IRI, 2005. Confidential and proprietary.

47 “No amount of advertising will offset the importance of merchandising at the shelf” - D. Ogilvy Space Automation A Solution for Key Issues

48 Copyright © IRI, 2005. Confidential and proprietary. Assortment Process Rules Based Planning Item Rank Assort Mix Space Customer Local Assort Exception Assort Tactics Opt SKU Count Item Potential Trans Demand Add, Keep, Delete Final Assort Assort Updates Space Automation Validation

49 Copyright © IRI, 2005. Confidential and proprietary. Establish Objectives Acquire / Align Information Create Effective Assortment Create Accurate POG Distribute & Implement Verify Compliance Closed-Loop Neighborhood Merchandising Flow

50 Copyright © IRI, 2005. Confidential and proprietary. NEIGHBORHOOD / STORE MERCHANDISING SOLUTION Objectives Web Browser New Assortment Store Specific Allocation Engine WEBWEB Assortment Optimization Rule Engine Exception Report Generator Category Review Compliance Tool Macro/Micro Merchandising Rule Engine Report Generator Web Publishing Engine Establish Objectives Acquire / Align Information Create Effective Assortment Create Accurate POG Distribute & Implement Verify Compliance

51 Copyright © IRI, 2005. Confidential and proprietary. NEIGHBORHOOD / STORE MERCHANDISING SOLUTION New Product Cut-In Objectives Web Browser New Assortment Store Specific Allocation Engine WEBWEB Exception Report Generator Compliance Tool Web Publishing Engine Establish Objectives Acquire / Align Information Create Effective Assortment Create Accurate POG Distribute & Implement Verify Compliance


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