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Defining Twenty-first Century

Merchandising

BenchmarkReport:September2010

WrittenBy:NikkiBairdandPaulaRosenblum,ManagingPartners

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EXECUTIVESUMMARY

Afteraseriesoffitsandstarts,theretailthoughtprocesshasirrevocablychanged.Sciencesupportedprocessisnowcore

tothemerchandisingdiscipline.However,faith inscienceisnotalwaysgroundedinanunderstandingofwhatitcando

(evenforthe largestretailers), leavinguswithsomeconcernsaboutunrealisticexpectationsandabacklash later inthe

decade.Tohelppreventthisbacklashandcreatethemostopportunitiesforsuccess,RSRhasdefinedsevencriticaltenets

for21st

century

merchandising.

BUSINESSCHALLENGES

Continued economic uncertainty has brought new issues to the forefront of retail merchants. Fractured planning

processeshavebeenusurpedbyconcernsoverunderperforming inventoryon theonehand,andoutofstockson the

other as the biggest challenges retailers face in merchandising. Operationally, merchants must learn towork with the

supplychain,storesandmarketingtoinsuretheirstrategiesareexecutedinanefficientfashion.

OPPORTUNITIES

Integratedplanningwithcrossfunctionalteamsremainsacriticalopportunityforimprovingthemerchandisingprocess,

but

price

and

markdown

optimization

to

improve

sellthrough

have

emerged

as

a

way

to

combat

underperforming

inventory.Retailersarecurrentlyusingdemand forecastingtoolstoplan futureseasonsandadjust inseason.Perhaps

mostinterestingly,wereseeingcrosspollinationacrossretailsegments,withthosesellingFastMovingConsumerGoods

beginningtoadopttoolsandtechniqueshistoricallyusedmorefrequentlybyretailerssellingGeneralMerchandiseand

Apparel.Thisisperhapsthemosttellingsignofachangeintheworldofmerchandising.

ORGANIZATIONALINHIBITORS

Despiteall the signs ofchange,cultural issues still loom largewithin the enterprise. Laggards lackof capitalseriously

constrains any kind of technologyenabled change. Our retail respondents believe, though, that if their inventory

management processes could be improved, and inventory made more accurate, they might be able to move forward

moreeasily.

TECHNOLOGYENABLERS

Integration,mostespeciallybetweenplanning,allocationandreplenishment,remainthemostdesirableendstategoal,

followedcloselybytheenablersofmerchandiseanalyticsandpriceandassortmentoptimization.RetailWinners(those

who overperform in year over year comp store sales) are most interested in attributebased merchandise planning

systemsandassortmentoptimization. Laggardsstilllooktogettheirfundamentalmerchandisemanagementsystemsin

order.Retailersselling fastmovingconsumergoods inparticularare looking to invest ina fullrangeofmerchandising

technologyenablers.

BOOTSTRAP

RECOMMENDATIONS

Basedonourreportfindings,RSRrecommends7coretenetstosupport21stcenturymerchandising.1)Optimization in

merchandisingspansproducts,pricesandprocesses,2)ensuremerchantshaveasolidunderstandingoftheirtools,3)do

nottinkerwithassortmentswithoutbroadduediligenceandreviewofpotentialconsequences,4)bringmarketinginto

merchandisingplanningandexecutionsprocesses,5)crosspollinatetoolsandtechniquesacrossretailsegments,6)make

sureshiftsinmerchandisingcapabilitiesarestrategic,notjusttacticaland7)reducerelianceonmerchantsastheunique

intersectionpointbetweenconsumerinsightsandproductplans.

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TableofContents

EXECUTIVESUMMARY.....................................................................................................................................ii

BusinessChallenges

....................................................................................................................................

ii

Opportunities..............................................................................................................................................ii

OrganizationalInhibitors............................................................................................................................ii

TechnologyEnablers...................................................................................................................................ii

BootstrapRecommendations.....................................................................................................................ii

SECTIONI:OVERVIEW....................................................................................................................................1

NascentChangeBecomesManifest..........................................................................................................1

ScienceMattersaLot,ButUnderstandingLags........................................................................................1

Methodology.............................................................................................................................................2

DefiningRetailWinnersandWhyTheyWin..............................................................................................3

SurveyRespondentCharacteristics...........................................................................................................3

SECTIONII:

BUSINESS

CHALLENGES

...............................................................................................................

5

InanUncertainGlobalEconomy,NewChallengesEmerge......................................................................5

WhyWeLookforaMagicBullet...............................................................................................................5

OperationalChallengesHamperStrategyExecution.................................................................................6

SECTIONIII:OPPORTUNITIES..........................................................................................................................8

CreatingaBetterProcess:OpportunisticToolsandTechniques...............................................................8

WhatOpportunitiesAreRetailersTakingTODAY?....................................................................................9

FMCGRetailersTakingPagesfromtheGMAPlaybook...........................................................................10

SECTIONIV:ORGANIZATIONAL INHIBITORS.................................................................................................12

WithChangeComesResistance..............................................................................................................12

TheRoadtoGranularityisPavedwithInventoryManagement.............................................................13

MovingUp

to

Move

Across

.....................................................................................................................

15

SECTIONV:TECHNOLOGYENABLERS...........................................................................................................16

IntegrationRemainsanEndStateGoal...................................................................................................16

WinnersLookingtoEnableCustomerandLocal.....................................................................................17

IfMoneyGrewonTrees..........................................................................................................................17

FMCGFinallyInvests................................................................................................................................18

SECTIONVI:BOOTSTRAPRECOMMENDATIONS..........................................................................................20

#1:OptimizationinMerchandisingSpansProducts,Prices,andProcesses............................................20

#2:EnsurethatMerchantsHaveaSolidUnderstandingofTheirTools..................................................20

#3:DoNotTinkerwithLocalAssortmentsWithoutBroadDueDiligence..............................................20

#4:MarketingMustBeanIntegralPartofMerchandisePlanning&Execution.....................................20

#5:RetailersWillCrossPollinateBestPracticesAcrossSegments.........................................................20

#6:ThisShiftinMerchandisingCapabilitiesisStrategic,NotTactical.....................................................21

#7:MerchantsNoLongertheIntersectionPointBetweenCustomerInsightsandProductPlans.........21

APPENDIXA:TheBOOTMethodology.........................................................................................................22

APPENDIXB:AboutRSR...............................................................................................................................23

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Figures

Figure1:OptimizedProcessesandProceduresImportanttoMostRetailers................................................1

Figure2:SolidUnderstandingLagsRecognitionofImportance.....................................................................2

Figure3:AverageComparableStore/ChannelSalesIncreases......................................................................3

Figure4:ExternalBusinessChallengesTakeCenterStage.............................................................................5

Figure5:TheWorstPerformersWorryoverUnderperformingAssetstheMost..........................................6

Figure6:LearningtoExecuteandWorkTogether.........................................................................................7

Figure7:ToolsandTechniquestoHelpImproveMerchandisingProcesses..................................................8

Figure8:WhatstheBaseline,andWhereareWeHeaded?.........................................................................9

Figure9:GMAMoreMatureinMerchandisingProcesses...........................................................................10

Figure10:2012sBraveNewMerchandisingWorld....................................................................................11

Figure11:CulturalResistanceCareenstotheTop.......................................................................................12

Figure12:EconomyDragsonLaggards........................................................................................................13

Figure13:

Getting

over

the

Hump

................................................................................................................

14

Figure14:LaggardsNeedMoreHelp...........................................................................................................14

Figure15:WhatRoleforStore?...................................................................................................................15

Figure16:IntegrationAspirations................................................................................................................16

Figure17:AttributesandAssortment,HandinHand..................................................................................17

Figure18:IntegrationandAnalyticsTopFuturePlans.................................................................................18

Figure

19:

A

Vertical

Wish

List

......................................................................................................................

19

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SECTIONI:OVERVIEW

NASCENTCHANGEBECOMESMANIFEST

RSRconductsbenchmarkstudiesonthestateoftheartandscienceofmerchandisingeveryyear.

This

year,

our

going

in

hypothesis

was

that

after

a

series

of

fits

and

starts,

the

retail

thought

process

has

genuinely and irrevocably changed. We expected the see this change affect merchants across several

dimensions:anembraceofsciencebasedprocesses,collaborationwithotherinternaldepartments,anda

morecustomerdatadrivenapproachtocreatingandmanagingassortments.

Our survey respondents did not disappoint. Science has become core to the merchandising discipline.

Fracturedplanningprocessesarecontinuingtoheal,andperhapsmostinterestingly,retailersarelooking

across segments to find transferrable best practices. We find retailers that sell fast moving consumer

goods (FMCG) embracing tools and techniques long used by those selling General Merchandise and

Apparel (GMA). Forexample,while only16% ofFMCG retailers havepracticedbottomsup planning

andreconciliationoftopdownandbottomsupplanningformorethanayear(vs.47%ofGMAretailers)

another32%areimplementingthistypeofsystemnow.

Thisis

afar

healthier

change

than

early

21st

century

attempts

to

infuse

retail

with

tools

and

techniques

fromotherindustries.Forexample,SixSigmaRetailinginstoreswasanunmitigateddisaster,andthose

leaders who were brought in to implement it have gone back from whence they came. Now we find

retailersmakingsenseofmaturingmerchandisingtools,evenastheyrushtocatchuptothecustomeron

outwardfacingtechnologies.

SCIENCEMATTERSALOT,BUTUNDERSTANDINGLAGS

Aswecansee inFigure1, thevastmajorityof todays retailers recognize the importanceofoptimized

processesandprocedures.

Figure 1: Optimized Processes and Procedures Important to Most Retailers

56%

48%

46%

32%

48%

42%

12%

4%

12%

Localizedassortments

Anoptimized,endtoendmerchandisinglifecycle

Lifecyclepriceoptimization

HowImportantarethefollowingtoYourRetailing

Success?

ExtremelyImportant SomewhatImportant LittletoNoImportance

Source:RSRResearch,September2010

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Thus, we can say the first tenet of 21st century merchandising is recognizing the importance of

optimizingprices,product,andprocess.

However, the recognition of importance is not always matched by an understanding of how these

optimizedprocessesandtechnologieswork(Figure2).

Figure 2: Solid Understanding Lags Recognition of Importance

26%

46%44%

46%48%

56%

LifecyclePriceOptimization IntegratedMerchandisePlanning,

AllocationandReplenishment

AssortmentOptimization

WeMayNotUnderstandit...butweKnowit'sImportant

Solidunderstanding ExtremelyImportant

Source:RSRResearch,September2010Unless itsrectified,thissituationcouldeasily leadtoa latedecadebacklash,asunrealisticexpectations

onwhatoptimizationtechnologiesandprocessescanaccomplishcouldleadtodisillusionment.

Oddly, thegreatestdisconnect is found in the largest retailers. Only18%of respondentswithannual

revenuesgreaterthan$5billionreporttheyhaveasolidunderstandingoflifecyclepriceoptimization,

yet64%believe it isextremely important to their retailing success. The prospect of having powerful

toolsinthehandsofthosewhohavehugereach,butonlyavagueunderstandingofhowtousethem,is

disconcertingtosaytheleast.

Therefore, the secondcritical tenetof21stcenturymerchandising isensuringmerchantshaveasolid

understandingof theoptimization tools,processesand techniques theyplan toemploy. Throughout

thisdocument,wellcontinuetoidentifycriticaltenets,alongwiththeobstaclesthatmightkeepretailers

fromadopting

and

adhering

to

those

tenets.

METHODOLOGY

RSRusesitsownmodel,calledtheBOOT,toanalyzeRetailIndustryissues.Webuildthismodelwithour

surveyinstruments.AppendixAcontainsafullexplanationofthemethodology.

Inoursurveys,wecontinuetofinddifferencesinthethoughtprocesses,actions,anddecisionsmadeby

retailerswho outperform theircompetitorsandthe industryat large.TheBOOTmodelhelpsusbetter

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understandthebehavioralandtechnologicaldifferencesthatdrivesustainablesales improvementsand

successfulexecutionofbrandvision.

DEFININGRETAILWINNERSANDWHYTHEYWIN

OurdefinitionoftheseWinnersisstraightforward.Wejudgeretailersbyyearoveryearcomparablestore

sales improvements. Assuming industry average comparable store sales growth of three percent, we

defineretailerswithsalesabovethishurdleasWinners,thoseatthissalesgrowthrateasaverage,

andthosebelowthissalesgrowthrateaslaggardsoralsorans. It isconsistentthroughoutmuchof

RSRsresearch findingsthatWinnersdontmerelydothesamethingsbetter,theytendtododifferent

things. They think differently. They plan differently. They respond differently. Their merchandising

practicesarenoexception.

Ofcourse, in thewildeconomic times of2009evenpreviousRetailWinnerssustainedsignificant sales

losses, especially at the high end of the market. To normalize the data, we did two things: we asked

retailerstoaveragetheirperformanceoverthepriorthreeyears,andwealsoaskeddirectlyaboutthe

impacttheeconomicdownturnhadonsales.

The

law

of

large

numbers

seems

to

have

hit

our

largest

retailers

the

hardest.

While

aggregate

performanceisevenlydistributedacrosstherespondentpool(Figure3),only6%ofretailerswithannual

revenueover$5billionreportedahistoryofoverperformance. Infact,historicallyretailersofallother

revenuetiersoutperformthelargestretailers.

Figure 3: Average Comparable Store/Channel Sales Increases

31% 32%

38%

Worsethanaverage Average Betterthanaverage

AnnualComparableStoreSalesIncreasesbased

on3%Average


On

the

flip

side,

the

largest

retailers

were

least

impacted

by

the

economic

downturn,

with

only

18%reporting significant revenue losses, vs. 48% of the smallest retailers. It may not have been Walmart

Timeaseveryonethoughtitmightbe,buttherecessionof2009definitelysawcustomersspendingtheir

moneyatlargerretailersanddesertingtheindependents.

SURVEYRESPONDENTCHARACTERISTICS

RSR conducted an online survey from MayJuly 2010 and received answers from 98 respondents.

Respondentdemographicsareasfollows:

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JobTitle:SeniorManagement(CEO,CFO,COO,CIO) 25%

VicePresident 31%

Director/Manager 28%

InternalConsultant&OtherStaff 16%

2009Revenue($Equivalent):$50Millionorless 31%$51 $999Million 39%

$1 $5Billion 15%

Over$5Billion 15%

Locations(Headquartersvs.RetailPresence):Region HQ Presence

USA 72% 74%

Canada 8% 25%

LatinAmerica 0% 7%

Europe

6%

15%

UnitedKingdom 3% 11%

MiddleEast 3% 10%

Africa 1% 7%

Asia/Pacific 7% 12%

Segments:FastMovingConsumerGoods(FMCG) 36%

GeneralMerchandise,Apparel 60%

FoodandHospitality 4%

Last3YearsComparableStoreSalesGrowthRates(assumeaverageann.growthof3%):Worse

than

Average

31%

Average 32%

BetterthanAverage(RetailWinners) 38%

4

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SECTIONII:BUSINESSCHALLENGES

INANUNCERTAINGLOBALECONOMY,NEWCHALLENGESEMERGE

Last year, we observed that Fractured Planning Processes was losing its preeminent position as the

most frequently identified topthree business challenge in merchandising. It remained the most

frequently cited issue, but for the first time since RSR has asked the question, fewer than 50% of

respondentsplaceditattopofmind.

Thisyear,wecanseetheshiftisalmostcomplete. New issueshaveusurpeditmoreoutwardfacing

and no doubt directly related to continued economic uncertainty. Figure 4 shows underperforming

inventorytobefarandawaythebiggestissueretailersface,followedbytheothersideoftheinventory

challengecoinoutofstocks.

Figure 4: External Business Challenges Take Center Stage

23%

26%

27%

35%

35%

37%

40%

56%

Segmentblurring competitionfromunexpected

places

Theuncertaineconomydrivesustounderbuy

Ourstores

are

a"sea

of

sameness"

our

product

mixisundifferentiated

Consumersexpectmorelocalizedassortments

thanweprovide

We'restuckinourproductselection:some

retailersoutpriceus,someoutstyleus

Fracturedplanningprocessesmakeusless

efficient

Outofstocksremainapersistentproblem

Underperforminginventory

BusinessChallenges

Source:RSRResearch,September2010Getting departments to work together in planning and executing merchandising strategies remains a

concern,butaswellsee,ithasdroppedfromastrategicissuetoanoperationaltacticalmatter.

WHYWELOOKFORAMAGICBULLET

RSR has observed on many occasions that category or department turn calculations can mask serious

problemsatamoregranularlevel. Astheoldsayinggoes,ifyouvegotonefootinabucketoficeandthe

otherinabucketofboilingwater,onaverageyoumaybewarmbutyouredefinitelyuncomfortable. The

twinconcernsofoutofstocksandunderperforming inventoryareclearexamplesofthisproblem,and

areaprimaryreasonwhyretailersbelieve inthe importanceofassortmentoptimization. Whileoutof

stocks tend to be a consistent topofmind concern regardless of retailer performance, concern about

underperforminginventoryincreasesinverselytoperformance(Figure5).

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Figure 5: The Worst Performers Worry over Underperforming Assets the Most

32%

50%

85%

RetailWinners AveragePerformers Laggards

UnderperformingInventoryasaTop3Business

Challenge

Source:RSRResearch,September2010Weveheardagreatdealofanecdotalinformationaboutretailerstrimmingtheirassortmentstomakeit

throughtrickytimes. Mostoftheseanecdotesdonotendwithpositiveoutcomesprimarilybecausethe

trimstendtobedonewithveryroughblades.Hence,wecometothethirdtenetof21

stcenturymerchandising:Neitheraddtonorsubtractfromlocal

assortmentswithout lookingat the impactonothercategoriesanddepartments. True customer and

marketbasketanalysis isacriticalpartofassortmentoptimization. RetailWinnersknowthis. Laggards

actfromdesperation,andtheirplightcontinuesunabated.OPERATIONALCHALLENGESHAMPERSTRATEGYEXECUTION

Whileinventory

management

has

replaced

fractured

planning

processes

as

the

biggest

business

challenge

forretailersintheirmerchandiseoperations,theabilitytoexecuteplansbothwithintheorganizationand

across other departments remains a key concern. Retailers selling General Merchandise and Apparel

(GMA)are,forobviousreasons,moreconcernedthanthosesellingFastMovingConsumerGoods(FMCG)

aboutmanaging thecomplexitiesof theircrosschannelmerchandisingoperations (44%ratethisa top

threeconcernvs.23%respectively).

FMCG retailers,however,are farmoreconcernedaboutgettingstores toexecute merchandisingplans

thanGMAretailers(73%vs.36%respectivelyratethisasatopthreeconcern). Webelievetherearetwo

reasonsdrivingthisissueforFMCG. First,thenotionofcentralizedcontrolofmerchandiseassortmentsis

newer to FMCG retailers than it is to GMA. Decentralized Computer Assisted Ordering (CAO) has

historically

been

far

more

prevalent

in

FMCG

than

it

ever

was

in

GMA.

Second,

FMCG

remains

far

more

promotionalthanmostGMAretailers,withtheobviousexclusionofmassmerchants. Thesheernumber

ofSKUsinastoresellingfastmovingconsumergoods,thechallengeofmanagingtoplanogramsthatmay

ormaynothaveanyrelationtothestoresactual layouts,androtatingendcapdisplaysareachallenge

forchainswithdecreasingpayrollindifficulteconomictimes.

Beyond these two challenges, there was some degree of unanimity around operational business

challenges(Figure6showsresponsesoftheaggregaterespondentpool).

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Figure 6: Learning to Execute and Work Together

26%

37%

45%

53%

60%

Gettingmarketinginlinetosupport

merchandisingplans

Managingthecomplexitiesofcrosschannel

merchandising

Overallexecution

Gettingstorestoexecutemerchandisingplans

Gettingmerchandisingandsupplychaintowork

together

TopThreeOperationalChallengesFacedinExecuting

MerchandisingStrategies

Source:RSRResearch,September2009TheriseoftheChiefMarketingOfficeracrossallretailsegmentsandtiers isapparent. Aquarterofour

respondentsreportgettingmarketingtosupportmerchandisingplansasatopthreeconcern. Thisfinding

isprimarilydrivenbyRetailWinners,whorecognizetheneedto integratethekeepersofcustomerdata

intotherestoftheorganization. RSRbelievesthistrendwillonlycontinue,anditbringsustoourfourth

tenetof21stcenturymerchandising:Marketingmustbean integralpartofmerchandiseplanningand

execution.

As we look through the opportunities available to retailers, well find the ways winning retailers are

meetingthesechallengesandthe21stcenturymerchandisingimperative.

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SECTIONIII:OPPORTUNITIES

CREATINGABETTERPROCESS:OPPORTUNISTICTOOLSANDTECHNIQUES

In an environment where underperforming inventory is a critical concern, where theres a sense that

people are ready to work together, andwithsomewhatshaky sales projections, retailers cansee clear

opportunities to improve their processes in support of retailing success. Figure 7 shows the relative

importance of opportunities, which clearly match up with business challenges. Its interesting to note

thatmostoftheseopportunitiesinvolvetechnologyenablementratherthansimpleprocesschanges.

Figure 7: Tools and Techniques to Help Improve Merchandising Processes


10%

22%

31%

36%

52%

57%

58%

59%

37%

42%

34%

43%

41%

38%

33%

38%

53%

36%

36%

21%

7%

5%

8%

3%

Testingassortmentsonlinebeforeallocatingtostores

Earlierindicationsofdemandthroughsentiment

analysisormonitoringofsocialnetworks

Testingmerchandiseinasubsetofstoresbefore

committinginbulk

Localizedpromotionstobettermatchdemandagainst

availableinventory

Betterincorporationofcustomersegmentations&

preferencesintotheplanningprocess

Improvingourabilitytoadjusttodeviationsfromsales

forecasts

Integratingplanningwithcrossfunctionalteams

Priceandmarkdownoptimizationtoboostsellthrough

OpportunitiestoCreateaStrongMerchandisingProcess

VeryImportant SomewhatImportant LittletoNoImportance

The best way to push underperforming inventory through the pipeline is certainly through price and

markdownoptimization,designedtomaximizesellthrough. Ninetysevenpercentofretailrespondents

reportthisasatleastasomewhatimportantopportunity.However,anelementoffantasyremains,asthe

smallestretailers,whohavetheleastabilitytoactuallyexecuteonthisopportunity,ratedithighest,with

88%believingitsveryimportant.

Notsurprisingly,thelargestretailers,thosewithannualrevenueover$5billion,aremostinterestedinde

siloing

their

organizations.

Seventypercent

of

respondents

believe

integrating

planning

with

cross

functionalteams isvery important.Theyareusing,orwilluse,technologytosupport integrationacross

departments.Thisisanotherareawheremarketing integration iscritical. Customer insightsareneeded

tosupportfindingoptimallocalizedprices,promotionsandassortments,andthemarketingdepartmentis

thedefactoownerofthatinformation.

FMCG retailers are considerably more interested in localized promotions that match demand against

available inventorythantheirpeers(45%rate itvery importantvs.only29%ofretailerssellingGeneral

MerchandiseandApparel).RSRbelievesseveral factorscontribute to this interest.Themostobvious is

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FMCG retailers longer history of localized assortments purchased through decentralized processes.

FMCGretailersalsoembracedpriceandpromotionoptimizationearlierthanGMAretailers,whofocused

moreonendoflifepricing.

Weweremost interestedtodiscoveranoveralllackofinterest inusingtheonlinechannelasatestbed

for new assortments. Retailers recognize theneed for consistencyacrosschannels,and in fact,would

rather

use

some

of

their

stores

as

a

proving

ground

for

new

product

than

any

other

channel.

Retailers

believe,and past datahas shown, the crosschannel customermuch less tolerantof mistakes,miscues

andpoorproductthantheinstorecustomers.

WHATOPPORTUNITIESARERETAILERSTAKINGTODAY?

Retailershavebeenusingbreadandbuttertoolstoenabletheirmerchandiseprocesses,asillustratedin

Figure8.

Figure 8: Whats the Baseline, and Where are We Headed?

12%

13%

13%

24%

25%

27%

27%

29%

34%

36%

39%

56%

14%

22%

20%

16%

20%

20%

18%

15%

11%

11%

17%

4%

11%

20%

16%

20%

18%

23%

16%

24%

19%

15%

17%

22%

25%

9%

24%

13%

20%

18%

15%

15%

8%

4%

13%

11%

38%

35%

27%

27%

18%

12%

24%

18%

28%

34%

15%

7%

Customersentimentanalysis

Reconciliationofplanagainstdistributioncapacity

Optimization ofassortmentagainstkeycustomersegments

Markdownoptimization

Promotionoptimization

Assortmentoptimization

Assortmentlocalization

Initialpriceoptimization

Reconciliationofbottomsupandtopdownplan

Bottomsupplan

Inseasondemandforecast

Initialdemandforecastasthebasisfornextyear'splan

MerchandisingProcesses

in

Use

Inusemorethan1year Inthelastyear Implementingnow Plannedforthenextyear Noplans

Source:RSRResearch,September2010Withinthenextyear,over90%ofourrespondentswillbeusingsomeformofinitialdemandforecastto

createaplanforthefollowingyear. Similarly,85%willhavetheabilitytorecastthatdemandwithinthe

season. WhilemostGMAretailersmaynotbeabletoeitherstaunchorexpandtheflowofproduct in

response to this demand forecast, they hope to adjust prices and promotions to maximize both gross

margindollarsandsellthrough.

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FMCGRETAILERSTAKINGPAGESFROMTHEGMAPLAYBOOK

Aswenotedintheoverview,wereseeingalotmorehealthycrosspollinationacrossretailsegmentsand

subverticals than in the past. This is dramatically illustrated in the Figures 9 and 10. Figure 9 shows

merchandisingprocessesthathavebeeninplaceforlongerthanoneyear.

Figure 9: GMA More Mature in Merchandising Processes

5%

21%

37%

16%

11%

42%

18%

32%

42%

47%

47%

65%




Bottomsup

Plan


Initialdemandforecastasthebasisfornextyear's

plan

Today'sMerchandisingProcesses

GMA FMCG

Source:RSRResearch,September2010Many

of

the

processes

weve

highlighted

in

Figure

9

have

been

historically

considered

traditional

practicesforGeneralMerchandiseandApparelretailers,whilethosesellingFastMovingConsumerGoods

were traditionally more interested in market basket analysis, boosting average transaction value with

loyaltyprograms,andmanagingwithinanygivencategory.

However,whenwelookatrespondentswhoindicatetheyeitherimplementedprocesschangesoverthe

past year or are in the middle of implementing changes we find a very different scenario. The retail

merchandisingworldwilllookquiteabitdifferentbythestartof2012(Figure10).

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Figure 10: 2012s Brave New Merchandising World

68%

84%

84%

63%

58%

79%

52%

59%

70%

63%

69%

85%




BottomsupPlan


Initialdemandforecastasthebasisfornextyear's

plan

MerchandisingProcessesinPlaceby2012

GMA FMCG

Source:RSRResearch,September2010HerewefindFMCGwillhaveachievedparity,orinsomecasesactuallyleapfroggedtheirGMAcousinsin

merchandiseprocesses.

Thus,wefindthefifthtenetof21stCenturymerchandising:Retailerswillcrosspollinatebestpracticesacrossallsegments,lookingforsimilaritiesandopportunitiesalongwiththemoreobviousdifferences.

Withallthisseeminggoodnesscomingdowntheroad,whatcouldstandinthewayofatrulymodernand

advancedmerchandisingenterprise? Asalways,wehavetolookfortheenemywithin.

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SECTIONIV:ORGANIZATIONALINHIBITORS

WITHCHANGECOMESRESISTANCE

Over the past two years, the primary organizational inhibitors have been driven either by the messy

technology infrastructuresthathinderchangeortheeconomicconditionsthathavemadecapitalscarce

orROI

amore

stringent

requirement.

This

year,

anew

inhibitor

has

reached

the

top:

cultural

resistance

tochange(Figure11).

Figure 11: Cultural Resistance Careens to the Top

23%

25%

30%

35%

37%

39%

42%

67%

Poorperpetual

inventory

systems

Incentivesarenotaligned,creatingorganizations

thatworkatcrosspurposes

Toomanyforecasts nosingleversionofthetruth

Theexistingtechnologyinfrastructureis

preventingusfrommovingforward

Pastexperiencewithmerchandisetechnologies

showstheROIishardtoprove

Dataisnotclean;pricing,inventory,customeror

POS

Scarcityofcapitalfornewtechnologypurchases

Culturalresistancetoanintegratedplanning

process

OrganizationalInhibitors

Source:RSRResearch,September2010For cultural change to impact merchandising organizations is a tremendous shift in perspective within

retail. InotherbenchmarksthatRSRhasconducted,"merchandisingwon'tworkwithus" isacommon

refrain. Even with the advent of sciencebased pricing, retailers have to some degree limited the

influenceofculturalresistancebyisolatingpricinggroupsunderthemerchandisingumbrella.

Butnolongercantheyremainisolated. Asmerchandising'sissuesbecomedefinedintermsofinventory

managementandcustomer insights,demandinggreaterdegreesofgranularityandfaster,moreflexible

processes,an

organization

that

has

historically

dictated

changes

in

other

parts

of

the

company

now

faces

theneedtochange.

This leads tooursixthtenetof21stcenturymerchandising:Retailersmust recognizethat21

stcentury

processesrequiremorethanatacticalshiftor"simple"increaseingranularity andplantheirchange

managementaccordingly.

Interestingly,thisisrecognizedwithequalfervorbybothWinnersandlaggards(Figure12).

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Figure 12: Economy Drags on Laggards

33%

22%

28%

33%

22%

28%

61%

72%

10%

19%

33%

33%

38%

43%

43%

71%

Poorperpetualinventorysystems

Incentivesarenotaligned,creating

Toomanyforecasts nosingleversionofthetruth

Theexistingtechnologyinfrastructureis

Pastexperiencewithmerchandisetechnologies

Dataisnotclean;pricing,inventory,customeror

Scarcityofcapitalfornewtechnologypurchases

Culturalresistancetoanintegratedplanning

Top3OrganizationalInhibitors

Winners Laggards

Source:RSRResearch,September2010Typically, laggards are less cognizant of cultural issues. But for merchandising changes, laggards'

challengesaroundcapitalconstraintsandpoorperpetualinventorysystemsoutpacetheirpeers.

ThedifferencesbetweenGMAandFMCG retailers fall into morestereotypical bands for the verticals

FMCG retailers are more capitalconstrained then their fattermargined peers. They also have poorer

perpetual

inventory

management,

and

larger

issues

with

data

cleanliness.

However,

one

additional

differenceposesapotentialopportunityforFMCGretailers:becausetheyhavenotimplementedalotof

"merchandising" solutions outside of pricing, they are less jaded than their GMA peers about past

implementationsandROIpromises.

THEROAD TOGRANULARITYISPAVEDWITHINVENTORYMANAGEMENT

Inventory accuracy tops the list of retailers' opportunities to overcome their inhibitors inventory

accuracynarrowlyoutpacesevenorganizationalchangetobetteralignmerchandisingteams,thenatural

partnertotheculturalchangeinhibitorthattopsthelistabove(Figure13).

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Figure 13: Getting over the Hump

28%

33%

46%

49%

52%

57%

58%

48%

44%

40%

39%

36%

34%

34%

24%

23%

13%

12%

12%

9%

8%

Datacleansingprojectsorproviders

Changingcompensation&incentivestobemore

alignedacrossthecompany

Smaller,easiertodigestprojectsthatbuildtoalarger,

integratedendstate

Morerealtimevisibilitytodeviationsfromtheplan

Moreinvolvementfromseniormanagementchampions

Changingorganizationalstructurestomoreintegrated

merchandisingteams

Betterinventorymanagementprocessesandsystems

formore

accurate

inventory

WaystoOvercomeOrganizationalInhibitors

VeryImportant SomewhatImportant LittletoNoImportance


Thisrepresentsasignificantshiftfromlastyear,wherethechampionshipofseniormanagementandreal

time visibility into inventory conditions topped the list. Retailers have backed off of the realtime

requirementthisyear,seekinginventoryaccuracy howeverfarfromrealtimeitmaybe.

Laggards drive the greatest differences in the opportunities to overcome inhibitors that retailers see

(Figure14).

Figure 14: Laggards Need More Help

33%

29%

59%

50%

67%

65%

72%

24%

19%

43%

45%

38%

43%

48%

Datacleansingprojectsorproviders

Changingcompensation&incentivestobemore

alignedacrossthecompany

Smaller,easiertodigestprojectsthatbuildtoa

larger,integratedendstate

Morerealtimevisibilitytodeviationsfromtheplan

Moreinvolvementfromseniormanagement

champions

Changingorganizationalstructurestomore

integratedmerchandisingteams

Betterinventorymanagementprocessesand

systemsformoreaccurateinventory

OvercomingOrganizationalInhibitors "VeryImportant"

Winners Laggards


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Almost across the board, laggards ascribe more importance to everything from better inventory

management systems to more involvement from senior management champions, to changing

compensationandincentivesordatacleansingprojects.

It isinterestingtonotethatdespitetheacknowledgementofdirtydataasanorganizational inhibitorby

Winners (43% rated it "very important"), only 24% rate data cleansing a "very important" way to

overcome

the

obstacle.

It's

not

the

data

that

is

the

issue,

it's

the

systems

and

processes

that

lead

to

dirty

datathatmustbefixed.

MOVINGUPTOMOVEACROSS

With more involvement desired across multiple areas of the retail organization from inventory to

marketing, to senior executives, who requires the most education about the coming changes to

merchandise strategy? The executive team, merchandising, and store operations, followed by supply

chainandmarketing(Figure15).

Figure 15: What Role for Store?

23%

36%

17%

19%

30%

28%

40%

43%

53%

21%

25%

27%

31%

33%

44%

44%

77%

81%

Procurement/Sourcing

SupplyChain

eCommerce/DirectOperations

Finance

IT

Marketing

StoreOperations

Merchandising

Executiveteam

Participantsin

the

Strategic

Direction

of

Merchandise

Strategies

Participates RequiresEducation


Storeoperationscontinuestooccupyatopplaceonthelistofthoserequiringmoreeducation in2009,it

heldthetopspotwithWinners,with26%selectingthisgroup. Thisindicatesanimportantcaveattothe

sixthtenetof21stmerchandising while itmayrequireastrategicchangewithinmerchandising,stores

needtoremainontheradarofgroupsimpacted particularlygiventhebusinesschallengesthatretailers

earlier reported around execution. If stores don't understand the changes that are occurring within

merchandisingandhowitwillimpactanythingfrom"manager'sspecials"tonewlayoutsorassortments,

thentheywillnotbeabletobeactiveparticipantsinmakingthosechangeshappensuccessfully.

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SECTIONV:TECHNOLOGYENABLERS

INTEGRATIONREMAINSANENDSTATEGOAL

Onceagain,thetopofretailers'wish listsofvalue inmerchandising isoccupiedby integratedplanning,

allocation,andreplenishmentsystems(Figure16).

Figure 16: Integration Aspirations

22%

19%

21%

31%

17%

28%

20%

30%

26%

27%

21%

29%

30%

31%

38%

39%

45%

46%

49%

53%

56%

58%

60%

60%

62%

74%

Newmerchandisingcoresystems(MMS)

Space

optimization

Attributebasedmerchandisingplanningsystems

Supplychainplanning

Integratedcustomerdatawithinmerchandiseplanning

Marketbasketanalytics

Storeexecutionmanagement

Automatedreplenishment

Integratedassortmentandspaceplanning


Priceoptimization

Merchandisinganalytics

Integratedplanning,allocation,andreplenishmentsystems

TechnologyEnablers Valuevs.Use

VeryValuable InUseMoreThan1Year

Source:RSRResearch,September2010Least important,andwiththesmallestgapbetweenvalueanduse, isnewcoremerchandisingsystems.

Retailerscontinuetosee littlevalueinreplacingthecore,buthaveambitiousaspirationswhenitcomes

toaddingnewcapabilities capabilitiesthatideallywillbeintegratedtothatcore.

However,don'tbe fooledby industryverticalstereotypeswhen itcomes to thetechnologiesthatboth

FMCGandGMAretailersvalue. Therewasalmostnodifferenceinthevaluethatbothgroupsascribedto

spaceoptimizationorautomatedreplenishment technologiesthathavetraditionallybeenthedomainof

FMCG. GMArespondentsweremorelikelytoseevalueinanewcoremerchandisingsystemandalsoin

attributebased merchandise planning applications, but both groups laid equal importance on store

executionmanagement.

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WINNERSLOOKINGTOENABLECUSTOMERANDLOCAL

TheclearestdifferenceinwhatWinnersvalueintheirmerchandisingtechnologyenablersvs.theirpeers

comes down to what Winners feel they need in order to inject customer and local insights into their

planningprocesses(Figure17).

Figure 17: Attributes and Assortment, Hand in Hand

41%

71%

71%

35%

71%

19%

41%

82%

29%

44%

45%

47%

47%

53%

58%

65%

Spaceoptimization



Integratedcustomerdatawithinmerchandise

planning

Priceoptimization



Integratedplanning,allocation,andreplenishment

systems

"VeryValuable"TechnologyEnablers

Winners Laggards

Source:RSRResearch,September2010While

both

sets

of

respondents

place

heavy

emphasis

on

integration

no

surprise

given

the

business

challenges and opportunities above they diverge on where to go next. Nearly three times as many

Winners as laggards place significant value on attributebased merchandise planning systems, and

Winnersarealmost1.5timesmorelikelytovalueassortmentoptimization. Laggards,ontheotherhand,

arestilllookingtogetthefundamentalsright,includingnewcoremerchandisingsystems,andheavybets

placedonthevalueofpriceoptimizationandmerchandisinganalytics.

Thisleadstotheseventhtenetof21stcenturymerchandising:Retailerscannolongerrelyonmerchants'

headstobetheintersectionpointofcustomerinsightsandmerchandiseplans. Inordertoexecuteat

the granularity that retailers need, merchandising systems will have to evolve, from updates to core

systemstoensuringthatattributeswithinplanningsystemscanhelpcarrytheburdenofoperationalizing

customerinsights

in

product

plans.

IFMONEYGREWONTREES...

Whenitcomestocurrentlyadoptedtechnologies,retailersreportafairlywelladoptedcore the"basics"

ofsupplychainplanningandreplenishment. Inlinewiththedesirefor,butrelativelackofunderstanding

of,optimizationtechnologies,afull32%ofrespondentsreportedimplementingpriceoptimizationinthe

lastyear(Figure18).

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Figure 18: Integration and Analytics Top Future Plans

17%

19%

20%

21%

21%

22%

26%

27%

28%

29%

30%

30%

31%

17%

12%

13%

12%

32%

11%

19%

21%

15%

21%

17%

17%

22%

17%

8%

13%

19%

13%

20%

15%

12%

21%

21%

23%

17%

11%

21%

31%

11%

15%

11%

11%

17%

15%

9%

10%

15%

17%

16%

Integratedcustomerdatawithinmerchandiseplanning

Spaceoptimization



Priceoptimization


Integratedassortmentandspaceplanning




Integratedplanning,allocation,andreplenishmentsystems


Supplychainplanning

LengthofTimeInvolvedwithTechenabledProjectstoSupport

Merchandising

Longerthan1year Lessthan1year BudgetedProject Planned,butnotBudgeted

Source:RSRResearch,September2010Wherethefaceofmerchandisinglookstochangethemostinthenext1218monthsisaroundanalytics

merchandiseanalytics

and

market

basket

analytics,

enabled

through

integrated

planning,

allocation,

and

replenishment, and possibly anchored with a new core merchandising system, ideally with attribute

basedplanning.

Unfortunately,budgetscontinuetobewatchedcarefully,andasaresultthereareseveralprojectswhere

thedesire withearmarkedplans istrumpedbylackofbudget. Themostnotableisspaceoptimization,

with31%ofrespondentsindicatingthatiftheyhadthebudget,theywouldhaveaproject. Secondonthe

listofdesiresisalsonotable:customerdataintegratedtomerchandiseplanning.

FMCGFINALLYINVESTS

One

long

held

tenet

of

retail

technology

has

been

that

FMCG

particularly

grocers

do

not

invest

in

technology, and when they do, they often try to build it themselves, rather than buy software. That

appearstobeabouttochange. FMCGretailersdidmuchbetterinthedownturnthantheirpeersinother

verticals(thoughmanywilltellyouitwasequallytoughforthemasconsumerstradeddownwithintheir

basket), and so now have an opportunity to invest in their future. Their plans include new core

merchandisingsystems,integratedplanning,allocation,andreplenishmentsystems,andstoreexecution

management(Figure19).

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Figure 19: A Vertical Wish List

14%

24%

7%

7%

4%

7%

31%

17%

14%

7%

11%

7%

7%

17%

17%

28%

10%

25%

7%

3%

7%

14%

17%

4%

21%

11%

27%

20%

19%

13%

19%

25%

31%

13%

14%

31%

6%

31%

19%

13%

13%

13%

19%

19%

19%

19%

25%

25%

25%

31%

31%

38%

Integratedassortment&spaceplanning

Integratedcustomerdatawithmerchandiseplanning

Merchandiseanalytics

Priceoptimization


Supplychainplanning

Spaceoptimization



Attributebasedmerchandiseplanningsystems


Integratedplanning,allocation,andreplenishment

systems


TechnologyAdoptionPlans

FMCG Budget FMCG Planned GMA Budget GMA Planned

Source:RSRResearch,September2010FMCG retailers are all about integration these days not only is integrated planning, allocation, and

replenishmentatthetopoftheirlist,everysingleFMCGretailerrespondenttooursurveyindicatedthat

theyeitheralreadyhadoraregoingtohave integratedassortmentandspaceplanningassoonasthey

cangetit. Oncethat'sachieved,itappearsthatspaceoptimizationwillbenextontheirlist.

GMAretailersaremorefocusedonanalytics merchandiseandmarketbasket. Theyaremore likelyto

alreadyhaveattributebasedmerchandiseplanningsystems,sotheirfuture investmentsappearsmaller

here. However,capturingattributesisanimportantprecursortosuccessfulmerchandisinganalytics.

One area where priorities diverge between the two groups is in store execution. Neither group has a

significant

investment

in

place

for

store

execution

management,

but

FMCG

appears

to

be

looking

to

addressthis andsoon whileGMAretailersgave ita lowfuture investmentpriority. The industrywill

havetowatchandseetofindoutwhichstrategywasthebetterone:executionoranalytics.

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SECTIONVI:BOOTSTRAPRECOMMENDATIONS

Throughoutthisreportwehavehighlightedthetenetsthatwebelievewillbecomecriticaltoenabling21st

century merchandising practices. To levelset, 21st merchandising combines customer insights and

localizeddemandtocreatesciencebaseddecisionsaroundassortmentandprices. Whatdoyouneedto

enablesuchpractices? Thetenets:

#1:OPTIMIZATIONINMERCHANDISINGSPANSPRODUCTS,PRICES,ANDPROCESSES

Whiledifferentkindsofoptimizationhavecome intovogue inmerchandising priceoptimization,space

optimization, and assortment optimization especially retailers clearly understand that these need to

workwelltogethersothattheydonotcomeupwith"suboptimal"results. Processisthekey thesteps

that connect these different pieces together, assisted by integration of the technology enablers that

supporttheseprocesses.

#2:ENSURETHATMERCHANTSHAVE ASOLIDUNDERSTANDINGOFTHEIRTOOLS

Thedegreetowhichsciencebasedtechnologieshasbeeninjectedintomerchandisinginashortperiodof

time

is

significant.

More

often

than

not,

the

understanding

of

a

new

tool's

value

outpaces

the

understandingofhow itworks,what itcanreallydo,andmostespeciallyhow itmightbeapplied toa

retailer's unique circumstances. Merchants in particular have seen an enormous change in how they

work,andinhowtechnologycouldpotentiallysupporttheirwork,andthesenewrequirementsneedto

beacknowledgedandaccommodated.

#3:DONOTTINKERWITHLOCALASSORTMENTSWITHOUTBROADDUEDILIGENCE

Thelasttwoyearshaveseenasignificantnumberofproofpointstosupportthistenet. Asretailerstryto

trim their assortment to meet more discerning customers, inevitably mistakes are made because due

diligencehasbeenlimitedtothecategoryowner'sfieldofview. Inaworldrichwithcustomerdataand

market basket analytics, these mistakes should never happen. But most important, retailers should

recognize that the more local they get in their assortments, the smaller is their margin of error with

fewer"averages"tohidtheoversandtheunders.

#4:MARKETINGMUSTBEANINTEGRALPARTOFMERCHANDISEPLANNING&

EXECUTION

Marketingownscustomer insights,andtheyownthecommunicationchannelsthatbestreachtheright

customerswiththerightmessages. Theyalsohavethebestknowledgeofwheretofindthosecustomers,

bothinthechannelsandgeographically. Toexecuteatthegranularlevelthatretailersneedtoachieve,

merchantsneedmorethanageneralunderstandingofwhotheirshopperis. Thatmeansthatmerchants

should

know

who

their

counterparts

are

in

marketing,

and

they

should

meet

more

than

once

in

a

blue

moon.

#5:RETAILERSWILL CROSSPOLLINATEBESTPRACTICESACROSSSEGMENTS

Threeareaswithinmerchandisingarecurrentlyleadingtheway:pricing,andspaceplanningfromFMCG

andattributebased"true"merchandiseplanning fromGMA. Of thethree,therehasalreadybeenthe

most crosspollination around pricing, as FMCG retailers look to add markdown optimization to their

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21

portfolioforthe increasingnumberofseasonal itemstheycarry,andGMAretailers looktofull lifecycle

pricingandpromotionoptimizationtogivethemfinergrainedcontrolovertherateofsellthrough.

This is more revolutionary than it sounds. RSR has worked with many a vendor entering the retail

technologyspacefromotherindustries vendorsthatareshockedthattheirmarquisgroceryclientbuys

themnocredibilitywithGMAorviceversa. Thefactthatthesetwoverydifferentverticalsarepoisedand

willing

to

learn

from

each

other

speaks

to

the

importance

they

are

placing

on

process

change

and

improvementsinmerchandising.

#6:THIS SHIFTINMERCHANDISINGCAPABILITIESISSTRATEGIC,NOTTACTICAL

Becoming more granular in your assortments and prices is notjust about adding yet another level or

attribute to your merchandise hierarchy. It is yet another proof point for the profound changes that

customer centricity is driving within the retail industry. As such, retailers need to treat it as

transformative, with all of the change management and organizational structure scrutiny that should

comewithbusiness transformation. Whilemerchandisingwillneed tobear the bruntof that scrutiny,

marketingandstoreoperationswillneedtocomealongfortheride,ifalloftheseeffortsaregoingtobe

successful.

#7:MERCHANTSNOLONGERTHEINTERSECTIONPOINTBETWEENCUSTOMERINSIGHTS

ANDPRODUCTPLANS

Themoregranularyouget,themoredifficultitistoholdallthedetailsinoneperson'shead especiallyif

you seek speed and flexibility at the same time. Merchants have long been the intersection point

betweencustomerinsightsandproductplans,drivenperhapsbyanoccasionalcustomerbrieforshopper

insightspresentationbymarketingorathirdparty. Thiscanno longerhold anditmeansthatsystems

andprocesseshavetochangeinordertoenablethisnewgranularity. Wesawthatwinnerswerelooking

closely at assortment optimization, enabled by attributebased merchandise planning. Without

placeholdersforgranularityinyoursystems,youwon'tgetfar.

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APPENDIXA:THEBOOTMETHODOLOGY

TheBOOTmethodologyisdesignedtorevealandprioritizethefollowing:

BusinessChallengesRetailersofallshapesandsizesfacesignificantexternalchallenges.Theseissuesprovideabusinesscontextforthesubjectbeingdiscussedanddrivedecision

makingacross

the

enterprise.

OpportunitiesEverychallengebringswithitasetofopportunities,orwaystochangeandovercomethatchallenge.Thewaysretailersturnbusinesschallengesintoopportunities

oftendefinethedifferencebetweenWinnersandalsorans.WithintheBOOT,wecan

alsoidentifyopportunitiesmissedanddescribeleadingedgemodelswebelievedrive

success.

OrganizationalInhibitorsEvenasenterprisesfindopportunitiestoovercometheirexternalchallenges,theymayfindinternalorganizationalinhibitorsthatkeepthemfrom

executingontheirvision.Opportunitiescanbefoundtoovercometheseinhibitorsaswell.

Winningretailersunderstandtheirorganizationalinhibitorsandfindcreative,effectiveways

toovercomethem.

TechnologyEnablers If a company can overcome its organizational inhibitors it can usetechnology

as

an

enabler

to

take

advantage

of

the

opportunities

it

identifies.

Retail

Winners

aremostadeptatjudiciouslyandeffectivelyusingtheseenablers,oftenfarearlierthantheir

peers.

AgraphicaldepictionoftheBOOTfollows:

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APPENDIXB:ABOUTRSR

RetailSystemsResearch(RSR)istheonlyresearchcompanyrunbyretailersfortheretailindustry.RSR

provides insight into business and technology challenges facing the extended retail industry, providing

thought leadershipandadviceonnavigatingthesechallengesforspecificcompaniesandthe industryat

large.Wedothisby:

Identifyinginformationthathelpsretailersandtheirtradingpartnerstobuildmoreefficientandprofitablebusinesses;

Identifyingindustryissuesthatsolutionsprovidersmustaddresstoberelevantintheextendedretail

industry;

Providing insight and analysis about a broad spectrum of issues and trends in the ExtendedRetailIndustry.

Copyright2010byRetailSystemsResearchLLCAllrightsreserved.

Nopartofthecontentsofthisdocumentmaybereproducedortransmittedinanyformorbyanymeanswithoutthe

permissionofthepublisher.Contactresearch@rsrresearch.comformoreinformation.
mailto:[email protected]:[email protected]

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