1.
Customer
Insight
6. Item P/L
BLM
CATEGORY
5. Promotion
LEVEL
4. Assortment &
Modular Planning
CBA (rev 7-23-02)
2.
Competitive
Environmen
t
3. Strategic
& Financial
Plan
STEP 1:
Business Leadership Model (W-M terminology)
Integrated Business Planning (P&G terminology)
STEP 2A:
8 weeks
Customer & Associate Insights
8 weeks
Competitive Assessment
Understand WM &
Understand the
Shopper &
Consumer
P&G vs. competition
STEP 2B:
8 weeks
Category Assessment
Understand P&G
Business in WM in-depth
Step 3: 3 weeks
Strategic & Financial Planning
STEP 3A
STEP 3B
•
•
•
•
Define Role of sub-category
Develop a clear concept
Develop strategy recommendations
Set clear objectives & goals
•Business measures
•Shopper measures
Align Strategy with BTL/ KAR/ Functional leaders
CN
Collaboratio
n
STEP 3C
Align GBU/MDO
STEP 3D:
Align Strategy with DMM/Buyer
STEP 5: PROMOTION/MARKETING
Annual Business Plans
Merchandizing,
Pricing,
Promotion,
Marketing
Generates
:
•Firm
•Budget
Joint
Business
Planning
ASST & MODULAR PLANNING: 6 Weeks
STEP 4:
Step 4A: 2 Weeks
Modular Preparation
•Line Reviews with Vendors
•Finalize additions (new items)
and deletions
•Develop modular principles
•Identify two to three next
generation modular concepts
Modular Test & Learn
Align Buyer/DMM on Next Generation
Modular in-store tests
Merchandising Test & Learn
Step 4B: 4 Weeks
Modular Development
•Develop the Modular, starting
from the largest modular
•Get Buyer/DMM alignment to
proceed
Step 4C:
Modular Deployment
•Complete WM Paperwork
Total Time To Modular Deployment:
17 weeks
•Align WM Ops to drive greater
compliance
Track Modular Performance
•Measure Compliance and OOS via
quarterly omnibus study
•Financial performance by cluster
Step 6:
Item P&L
•VCS Scorecard (P&G)
•52 Week Scorecard (W-M)
Field in-store tests and read
results (12 Weeks) – Align with
buyer on potential and timing
(mid-year or annual modular
update)
1.
Customer
Insight
6. Item P/L
BLM
CATEGORY
5. Promotion
LEVEL
4. Assortment &
Modular Planning
2.
Competitive
Environmen
t
3. Strategic
& Financial
Plan
You are
here!
STEP 1:
8 weeks
Customer and Associate
Insights
Objective: Integrate consumer, shopper, and associate insights to
identify unmet customer needs and business-building opportunities.
Determine a target customer, and clarify the current barriers to
target customer closure.
•
What are the category trends?
–
–
–
•
What are the category drivers? Are there meaningful cluster variations?
–
–
•
–
–
What are the relative importance of the different attributes within the purchase decision
tree?
How does the shopper navigate the modular?
What are the shopping behaviors and product preferences of the target
shopper?
–
–
–
–
–
–
•
How well is Wal-Mart currently delivering the shopping experience? (shopper
satisfaction)
What do we need to do to better meet her needs?
What is the purchase decision tree?
–
•
Why are they not closing at Wal-Mart? (barriers to closure)
What are the non-closers likely to purchase at Wal-Mart?
What are the customers’ shopping needs within this category?
–
•
Why are they closing at Wal-Mart?
Who are the category non-closers?
–
–
•
What are their characteristics demographically?
What are their attitudes? (importance of attributes)
What are the closure trends in category closure? Who are the category
closers?
–
•
Demographic
Regional
Who is the target customer?
–
–
•
Demographically/psychographically?
What are the category consumption trends?
What are the emerging consumer attitudes and technologies?
How do the shoppers interact with the shelf (e.g. sniff & read; browse; grab and go)
How likely is the customer switch to different brands?
What is the shopper “language” for this category?
What is the customer’s desired benefit from a consumer perspective?
What is the size of the evoked set of brands?
Item selection/de-selection behavior (at home and in-store)
What are the Associate insights?
–
–
–
How does the store execute the modular (sets & stacks)?
What modular improvements would the associates make?
What are the most common customer complaints?
1.
Customer
Insight
6. Item P/L
BLM
CATEGORY
5. Promotion
LEVEL
4. Assortment &
Modular Planning
2.
Competitive
Environmen
t
3. Strategic
& Financial
Plan
You are
here!
STEP 2A:
8 weeks
Marketplace Competitive Assessment
Objective: Understand Wal-Mart’s and P&G’s category performance
versus balance of market and key competitors. Identify businessbuilding opportunities.:
•
Which other retailers are winning within the category?
–
–
–
•
What are Wal-Mart’s category opportunities (shopper-based
development index) versus the balance of market (Automated
Tool: WM-BOM)?
–
–
•
Why are they winning?
Market Visits
–
–
•
% volume by segment
SKU’s in distribution
% feature by segment
% display by segment
Pricing
Retailer Marketing
Which other suppliers are winning at Wal-Mart?
–
•
% volume by segment
SKU’s in distribution
% feature by segment
% display by segment
Pricing
Retailer Marketing
How does P&G compare within Wal-Mart from a sales
fundamentals perspective?
–
–
–
–
–
–
•
By purchase decision tree attribute?
By combination of purchase decision tree attributes?
How does Wal-Mart compare with other winning retailers from
a sales fundamentals perspective?
–
–
–
–
–
–
•
From a shopper conversion perspective
From a shopper satisfaction perspective
Why are they winning?
What are the best in class modular executions?
How are retail competitors winning in store?
New Initiatives (P&G and Competitors)
–
What do we know about P&G and competitive plans for deploying major
technology breakthroughs (competitive intelligence)
1.
Customer
Insight
6. Item P/L
BLM
CATEGORY
5. Promotion
LEVEL
4. Assortment &
Modular Planning
2.
Competitive
Environmen
t
3. Strategic
& Financial
Plan
You are
here!
STEP 2B:
8 weeks
Wal-Mart Category Assessment
Objective: In-depth analysis of category performance
(index versus previous year) at a total category,
cluster, segment, and regional level.
• How are my different modulars performing at
Wal-Mart (Automated Tool: PC Trax)?
– Regular modulars?
– Test Modulars?
•
How is my overall category performing at WalMart?
– Versus other retailers?
– Versus other categories at Wal-Mart?
– Versus Wal-Mart Merchandising objectives?
•
How are my sub-categories performing at WalMart (PC Trax)?
– Segmented by the purchase decision tree?
– Segmented by Wal-Mart product characteristics?
•
What are the unique category operating
parameters?
– Logistics
– Replenishment
•
Do we have in-stock opportunities?
1.
Customer
Insight
6. Item P/L
BLM
CATEGORY
5. Promotion
LEVEL
4. Assortment &
Modular Planning
2.
Competitive
Environmen
t
3. Strategic
& Financial
Plan
Step 3: 3 weeks
You are
here!
Strategic & Financial
Planning
Objective: Develop the overall concept and strategies for the category
business plan, and gain alignment with key stakeholders.
Determine financial objectives and sales fundamental goals.
•
What are Wal-Mart’s strengths, weaknesses, opportunities and
threats within this category?
–
•
How much money is there to be had in this business?
–
•
Size of the prize.
What are the sub-category roles?
–
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–
•
SWOT analysis.
Which sub-categories are Anchors?
Which sub-categories are Transaction Builders?
Which sub-categories are Convenience?
What do you want this business to stand for with the shopper?
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–
–
What is the concept?
Why is it important?
Is this compatible with Wal-Mart’s current strategy?
•
•
What are the strategy recommendations?
–
–
How do the recommended strategies deliver the concept?
How do the strategies touch:
•
•
•
•
•
•
The shelf?
Marketing?
Display?
TAB?
Pricing?
What are the clear objectives & goals?
–
–
–
•
If not, what is the plan to gain Wal-Mart’s alignment?
What are Wal-Mart financial objectives?
What are the business measures?
What are the shopper measures?
Do we have key stakeholders’ alignment?
–
–
–
Team business leaders?
GBU/MDO?
DMM/Buyer?
1.
Customer
Insight
6. Item P/L
BLM
CATEGORY
5. Promotion
LEVEL
4. Assortment &
Modular Planning
You are
here!
2.
Competitive
Environmen
t
3. Strategic
& Financial
Plan
Step 4A: (2 Weeks)
Modular Preparation
Objective: Gather and analyze detailed information required
to develop specific guidelines and principles for modular
development.
•
Do we need to update the current Wal-Mart store cluster to
better reflect category drivers identified in step 1?
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–
•
Do we need to perform a SKU rationalization review?
–
–
–
•
MCAPS
P&G clustering tool.
Are there new items to work into the modular?
Is the current modular holding capacity sufficient to support demand
surges?
Is the modular meeting Wal-Mart case pack out standards?
What are the recommended items to be carried and/or
reviewed for below average performance?
–
Preparation for vendor line reviews (Item Performance via CM
Trax)?
•
•
•
•
•
•
Does the existing Modular need to be set-up (for line reviews)?
–
•
At Bentonville layout room or vendor facility
What are the key inputs from all Vendor Line Reviews?
–
New Initiatives
•
•
–
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–
•
What are the new initiatives?
How to forecast projected volume?
Business Plan Changes
Modular Strategy Recommendations
Finalize Modular Assortment (Additions and Deletions)?
What are the Modular principles that support the strategies?
–
–
•
•
Benchmark Current Financials
Determine Target SKU Count
Determine Possible Adds
Determine Composite Scores
Finalize Category Line Review Book
For overall modular design.
For modular cut downs
Do you need to prepare a Buyer Modular Recap/Summary?
Are there specific modular concepts we want to execute in a
test and learn plan?
1.
Customer
Insight
6. Item P/L
BLM
CATEGORY
5. Promotion
LEVEL
4. Assortment &
Modular Planning
2.
Competitive
Environmen
t
3. Strategic
& Financial
Plan
Step 4B: (4 Weeks)
Modular Development
You are
here!
Objective: Develop the new modular including all cut-downs
and clusters.
• What is the predominant modular to be set in the WalMart layout facility?
–
–
–
•
Are there any issues with Wal-Mart store layouts?
–
–
–
•
Pack and a half?
Surge Protection?
Minimum days of supply (DOS)?
Minimum facings?
What data is needed for the DMM walkthrough?
–
–
•
Push systems/gravity feeds?
Peg boards?
When determining shelf requirements, did we
consider:
–
–
–
–
•
Category wrap-around?
Unique store fixtures?
Shelf depth?
Are there unique shelf fixtures?
–
–
•
Modular Set-up at Wal-Mart layout facility
Is the design consistent with the strategy?
Modular Cut Downs
BLM 1-pager
DMM “hot buttons”
Are there replenishment implications for P&G?
–
Notify CTLC of additions, deletions or warehouse types.
1.
Customer
Insight
6. Item P/L
BLM
CATEGORY
5. Promotion
LEVEL
4. Assortment &
Modular Planning
2.
Competitive
Environmen
t
3. Strategic
& Financial
Plan
Step 4C: (2 Weeks)
Modular Deployment
You are
here!
Objective: Complete all of the internal Wal-Mart documentation and
alignment required for effective and efficient dissemination and
implementation of the new modulars at stores.
•
What are the key WM documentation required for deployment?
–
–
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–
•
What is our strategy to gaining W-M Ops alignment to drive
greater compliance
–
–
–
•
Distribution Matrix
Strategy Letters
Cover Letters
Add/Delete List
Clusters Finalized
Product Trait/Maintenance
MBM Outputs
Modular sell-in to RVP’s
Store Associate communications (letters, kits, etc.)
W-M Merchandising shows (Dallas, KC)
How will we track modular compliance and performance?
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Measure store compliance on:
Timing
Accuracy
Reliability (store level modifications)
Measure sales performance by:
Total Stores
Clusters