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Retail Coverage ROI Test Pre-Read March 30, 2009.

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Presentation on theme: "Retail Coverage ROI Test Pre-Read March 30, 2009."— Presentation transcript:

1 Retail Coverage ROI Test Pre-Read March 30, 2009

2 2 Key Messages Retail coverage is a $44M cost and determining its appropriate ROI is critical to resource allocation As we increased coverage in Food, C-Store and Wal-Mart both share and promotional sell through have improved In order to calculate an all inclusive ROI, a comprehensive, lengthy test is required We are recommending a 720 store test that includes, Wal- Mart, Food and C-Store and runs from April 13 th thru Oct. 31 st

3 3 Sample Size – 720 Stores Sample set consists of the following customers: –180 Wal-Mart Super Centers –180 Wal-Mart Div 01 –45 Kroger’s –45 Meijer –45 SuperValu/ Albertson's –45 Giant Eagles –180 C-Stores 60 Speedway Super Americas 60 7-11 60 Meijer Gas

4 4 Sample Size by Class of Trade Each customer will include a control store set and two different coverage variations sets The Wal-Mart test will include high and low price zones C-Stores will require “No Coverage” in lieu of decreased hours due to short call times currently

5 5 Market and HSY Resources Metrics will include: –Store Level POS Change by customer, then applying an average profit margin (COT Average Gross Margin) to measure ROI impact –Sell through – Seasonal and Key Promotional Programs –Big 33 and P3 execution –Share at Food & C-store –Results measured and reported monthly by Retail Development Office 245 RSR’s and 20 RSM’s across all 40 Districts to participate –Food stores selected across key divisions (Kroger & SV-ABS) –Wal-Mart based high ACV / Hi-Low zone within SC and D1

6 6 DSM / RSR Rules of Engagement DSM / RSR cannot alter retail coverage – No Exceptions –Need a true look at enhanced / loss of coverage impact Suggested “test” model times routing must be adhered to –No incremental time spent outside of model set forth –Retail Development will analyze and report variances to DSM / ASD DSM / RSR participating will not be held to same analytic targets as other team members around: –POS Sales / Share –REX Analytics

7 7 Timeline RDM Office to provide routing changes on paper to DSM’s by April 3rd DSM To Review and Discuss with RSR / RSM participants during the week of April 6 th –Explain the Test and Share Rules of Engagement –Set Your Expectation on their participation and feedback –Call Procedure and In-store activities remain the same, only in-store times change –Daily synchronization of REX a must RDM Office to complete routing changes in Siebel by April 10 th Test” coverage begins on Monday April 13 th thru Oct. 31 st –RSR / RSM must download Sunday April 12 th to receive changes

8 8 Routing Changes in Siebel Routing changes will be made by RDM Office –DSM to ensure the following once changes are made: –RSR is not over – under routed for cycle –Potentially more of a concern for Wal-Mart than Food stores –If either, DSM to adjust stores not included in the test but within Customer / Class of Trade to fill out the route –If questions, please contact RDM Office

9 9 Giant Eagle Participants * Please refer to master list for actual store responsibility

10 10 Kroger Participants * Please refer to master list for actual store responsibility

11 11 Meijer Participants * Please refer to master list for actual store responsibility

12 12 SuperValu – Albertsons Participants * Please refer to master list for actual store responsibility

13 13 Wal-Mart By DSM * Please refer to master store list for RSR responsibility


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