Re-Inventing Retail: Making a Difference at the Shelf
Jan 03, 2016
Re-Inventing Retail:
Making a Difference at
the Shelf
Re-Inventing Retail:
Making a Difference at
the Shelf
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Discussion TopicsDiscussion Topics
Project Foundation/Timeline
Re-Invent Retail Strategy
Re-Invent Retail Coverage Model
Technology & Tools
How’s It Working?
Re-Invent Retail
Strategy
Re-Invent Retail
Strategy
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Strategic Partnersfor Retail project
Strategic Partnersfor Retail project
Internal Acosta cross-functional team
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Acosta Strategic PrioritiesAcosta Strategic Priorities
Analytics / AssessmentBain analytic teamAcosta taskforceDesign Working Team – 8 monthsBain design teamSenior Acosta team
Test and Pilot
MEI NARS Technology – Canada testTest markets – test structure & process elementsPilot markets – test complete modelImplementationProject team – 12 month commitment (planning/training) National Rollout – 6 months
•Re-invent Retail
•Scorecarding
Strategic initiatives to address key industry dynamics:
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Project Goal: Significantly Improve
Distribution, Shelving, New Item Execution, and Merchandising
Project Goal: Significantly Improve
Distribution, Shelving, New Item Execution, and Merchandising
Dist
ribut
ion
She
lving
New
item
exe
cutio
n
Mer
chan
disin
g
Pric
ing
Rep
ortin
g
Prod
uct
rota
tion
POS
plac
emen
t
2522
19
14
96
4 4
0
10
20
30
Average value of retail services
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What Drives Performance for the Key Elements of Retail Services?What Drives Performance for the Key Elements of Retail Services?
Distribution ShelvingNew item execution
Merchan-dising
Overall average
Call frequency 1 1 1 1 1.0
Time in Store 2 2 2 3 2.3
Category/ Product knowledge
3 3 4 4 3.5
Data/ Technology
5 5 5 5 4.8
Customer Expertise 4 4 3 2 3.3
Driver
Frequency & time in store are the most important drivers of superior retail execution
Rank ordered importance of drivers (1-5)
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New Retail Model – Key PrinciplesNew Retail Model – Key Principles Maximize SCALE through Syndicated Coverage
Enables greatest frequency & duration in highest volume stores At the point of opportunity more often Fewer stores…avg. 14 per rep = greater store expertise 50% less drive time…More time in-store
Dedicated Retailer Vertical Teams Greater retailer penetration Enables more effective work in store
Full-Time Associates on coverage Reduced turn-over…Higher Skill Utilize part time for set work
Focused by Trade Class Dedicated Fresh Team
Requires unique skill sets State-of-the-art Technology system
Re-Invent Retail
Coverage Model
Re-Invent Retail
Coverage Model
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Retail coverage variables
Continuity Coverage Segmentation
Continuity Coverage Segmentation
Store characteristics
Grocery Mass Natural/Specialty
Product line
Core store Dairy, Frozen,
Grocery, HBC/GM Fresh Products
Produce, Deli, Meat
Channel
Volume Buying authority CDI & BDI
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Coordinated Offering With Focused, Differentiated Services
Segmentation by channel and product lines
Segmentation by channel and product lines
Fresh Products
Fresh foods team
Core Store
Syndicated grocery team
Coverage team
Frequency 2X per mo. & 1x per mo. 61% ACV Weekly coverage
86% ACV 2x/month covg
Key drivers of value
Ability to identify stores with high buying authority
Knowledge of product portfolio
Relationships with store-level decision-makers
Duration of coverage - work
Frequency of visits Ability to respond to voids
and OOS rapidly Ability to leverage POS
data proactively and reactively
Wal*Mart
Dedicated Wal-Mart Teams
Anchor Team-WMSC Syndicated-Div 1
2X/month-WMSC 1X/month-Div 1
In stock rates-99%+ STS new items-98%/4 wks Modular/Merchandising
compliance Improve product
awareness with dept. level penetration/training
Grocery Mass
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Priorities are Designed to Focus on the Highest Value
Work
Priorities are Designed to Focus on the Highest Value
WorkPriority 1
Priority 2
Priority 3
Priority 4
New Items
Distribution Voids
Merchandising Questions
Tasks (To-Do’s)
=
=
=
=
•Rules engines designed to insure prioritization consistency & compliance
•Additional matrix for individual SKU volume
•Gatekeepers insure focus and allow for potential extreme exceptions
Technology & Tools
Technology & Tools
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In-store opportunity identification – tools & technology
In-store opportunity identification – tools & technology
DMS: In-store Distribution Management System•Voids identified by retailer, by store, by period•Resides on intranet site on ASSET •Accessible to all Business Managers
Data Prism: •system for analyzing retailer POS data•identifies distribution voids
Void Algorithm:•Developed with Bain•Accurately identifies void items – driving efficiency
MEI:•Enterprise retail system•Store-specific APL’s reside on PPC•Communicates store specific opportunities
Data sources:•Syndicated•Retailer POS•TD Linx
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Tools and Technology Store-Specific Call Plan
Tools and Technology Store-Specific Call Plan
NationalStrategy
Local Opportunities& Activities
Void Data
Store Call Script•(P1) New Items•(P2) Voids•(P3) Questions•(P4)Tasks
•Store Specific•Date SpecificA
costa
Pri
ori
tiza
tion
Syste
m
Sto
re S
pecifi
c A
PL
Retailer POS
Syndicated
How’s It Working?How’s It Working?
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Post Re-Invent Retail Results
Post Re-Invent Retail Results
Store coverage at 97% Call per store averaging 2.3 per store per month New Item speed to shelf at 63% in 4 weeks Closing >90% of all identified voids each month Averaging 9 hours coverage/store/month Completing 95% objectives/call Scan rates have improved 1.2%
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•Up 1.5 POINTS since inception of Re-Invent Retail…•Over 32,000 net distribution points added.
HBC manufacturer
HBC manufacturer
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Distribution AnalysisManufacturer C – Pre vs. Post Rollout
Source: Manufacturer C Dashboards, Pre-Rollout Data (1/21/04) and Post-Rollout Data (11/06/04)
Distribution Analysis Pre Rollout vs. Post Rollout
# Storesin Chain
TPD'sAvg Sku's per
Store
Period: 1/ 21/ 04 10,139 1,246,893 123
Period: 11/ 06/ 04 9,774 1,341,913 137
Difference (365) 95,020 14
% Change (3.6) 7.6 11.4
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Fastest Manufacturer Speed to Shelf Results Ever!!!
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%24
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% Attained % Mkts Attained
2003 2004
0.0%
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40.0%
60.0%
80.0%
100.0%
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Brand G Void Closure Q4 ’04
$8,600,000 annual impact for Brand G
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How has RIR ImpactedManufacturer B at Retail So Far?
How has RIR ImpactedManufacturer B at Retail So Far?
Distribution improving– scan data reflect positive changes in distribution…
plus 2.8 points or 3.7% Voids decreasing
– 9.5% no scan reduction versus July ’04– Nearly 5000 voids filled
New Item Speed to Shelf– STS has increased 50% (based on retail availability)– New Item at 94% tagged where authorized
Based on MEI reports/ scan data.
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Acosta Re-Invent Retail Model Recap
Acosta Re-Invent Retail Model Recap
Scale Creates the foundation for most efficient model
Syndicated model provides for greater efficiency Greater frequency and duration in the store
Focused by Trade Class Allows for greatest retailer knowledge
Superior tools and technology Identifies greatest opportunity stores Laser focused scripted tasks
Superior in-store performance Full-time associates on coverage teams Vertical by customer – provides greater focus
42,000+ calls per month/2.4 average per store per month
At the point of opportunity