MPM Analysis Sample

V 2.0

INTER-ORGANIZATIONAL SOLUTIONS FOR

MERCHANDISING

PERFORMANCE MANAGEMENT

MARKET ANALYSIS & BUYERS’ GUIDE

© 2009 VSN Strategies June 23, 2009

Contents

© Copyright 2009 VSN StrategiesMerchandising Performance Management 2

• Introduction & Summary

• Market Overview

• Solution Sector

• Solution Providers

• Strategic Considerations

• Recommendations

• Appendix

Contents

Economies of Scale?

© Copyright 2009 VSN StrategiesMerchandising Performance Management 3

Sources: Monthly Retail Trade Survey, Census Bureau; Company annual reportsNote: Sales based on North American Industry Classification System (NAICS) From: Economic Research Service/USDA, http://www.ers.usda.gov/Briefing/FoodMarketingSystem/foodretailing.htm

0

10

20

30

40

50

60

70

80

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

Top 4 Top 8 Top 20

U.S. Grocery Retailing Concentration, 1992-2005

Grocery retail

consolidation has

concentrated 62% of U.S.

grocery sales within the

top 20 chains; 36% within

the top four chains.

Along with scale

economies, however,

comes intensified store

operational complexity.

How has this combination

affected profits?

%

Introduction & Summary

Context

© Copyright 2009 VSN StrategiesMerchandising Performance Management 4

• Despite retail industry consolidation…– Industry earnings and ROI are flat– Operating complexity is up

• Despite progress in supply chain effectiveness since 1996…– Store-level in-stock performance is unimproved

• Store-level performance may be slipping…– But we can’t really be certain, because we don’t

yet have the tools or practices in place to assert control over In-Store Implementation

Introduction & Summary

Objectives of This Guide

© Copyright 2009 VSN StrategiesMerchandising Performance Management 5

• Provide overview of the significant In-Store Implementation communications opportunity

• Identify/define classes of ISI solutions

• Profile existing competitors in these classes

– Solutions offered – Performance

– SWOT analyses – Leadership

• Evaluate and compare competing solutions

• Provide a buyers guide for retail managers

Introduction & Summary

Implication

• The RCP industry presently suffers from a near absence of INTER-organizational solutions capable of supporting a high-level of store merchandising (ISI) competency.

• While new offerings are coming to market, early-mover opportunity is far from closed.

• This indicates an opportunity with large potential financial rewards.

© Copyright 2009 VSN StrategiesMerchandising Performance Management 6

Market Overview

Three (Linked) ISI Solution Areas

© Copyright 2009 VSN StrategiesMerchandising Performance Management 7

Solution Sector

Work Force Management

• Manage employees

• Time clock

• Scheduling

• Human Resources orientation

• INTRA-organizational

Store Execution Management

• Manage activities

• Field force automation

• Task or process efficiency orientation

• INTRA-organizational

Merch. Performance Management

• Manage outcomes

• Planogram

• Promotions/events

• Distribution

• Plan-Do-Measure orientation

• INTER-organizational

All enabled by some form of multi-user communications platform

MPM is ISI Solution Sweet Spot

Work Force Management

Store Execution

Management

Merchandising Performance Management

© Copyright 2009 VSN StrategiesMerchandising Performance Management 8

A COMPREHENSIVE In-Store Implementation

solution would incorporate WFM, SEM and MPM

elements, as well as and an underlying

INTER-organizationalportal communications

platform, device-agnostic, and supported by

merchandising “storecards”.

Strategic Considerations

Special Offer:

20% Off for ISI Network Full Members

James Tenser, Director

http://instoreimplementation.com

[email protected]

520-797-4314

9Merchandising Performance Management © Copyright 2009 VSN Strategies

Conclusion / Take Action