WINNING AT
THE SHELF
DRIVING EXECUTIONAL EXCELLENCE
BY LEVERAGING NEW TECHNOLOGY
Sharon Skurnac, Nielsen
Alejandra González, Kimberly-Clark
October 1, 2014
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
MANUFACTURERS VS. RETAILERS
Both have different structures that are constantly interacting with each other to
satisfy consumer needs
MANUFACTURER
RETAILER
Top Management
Top Management
Business Units / KAM
Purchasing
Regional Managers
Central Warehouse
Sales Force Operations
Store Managers
2
A WELL-OILED MACHINE
Each function needs to execute the strategy effectively to realize growth
Top Management
Target assignment and results follow up
x
KAM & Catman
Negotiation
Marketing
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
Business unit
strategies
Trade
Marketing
Drugstores
Strategy by
channel
x
Self Service
Convenience
Traditional
Supers
Conv. Stores
x
Operations
Sales Force
Traditional
x
Strategies &
Negotiations execution
3
PLANNING VS. EXECUTING
Different meanings by function
EXECUTION
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
BUSINESS NEED
Trade/Brand
Marketing
Plan execution
by designing
optimal strategies
Catman &
Trade
Field
Sales
SOLUTION
FOCUS
ROI Impact
Market / Portfolio
Improve execution
by detecting
opportunities
Compliance
Retailer /
Category
Measure execution
with robust key
performance
indicators
Store Check
Store / Item
PLANNING
IMPACT DURATION
Long
1 Year +
Detect
competitors’
performance and
opportunity
detection
Medium
1 – 3 Months
Determine inputs
to the strategy
from real
execution gaps
Short
1 – 7 Days
Strategies to
correct common
execution gaps
4
INTRODUCING NIELSEN MIRROW
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
Nielsen Mirrow supports executional insights across all functions
Product A
Product B
Product C
Product D
Turning mobile photos into actionable store insights.
5
CAPTURING THE WHOLE STORE WITH MIRROW
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
An all-in-one recognition tool
COLLECTION METHODS
STORE LOCATIONS
✓ Photo recognition
✓ Manual scan
✓ Questionnaires
✓
✓
✓
✓
✓
Primary shelf
Secondary shelf
Macro exhibits
Displays & end-caps
Coolers
CHANNELS
✓ Modern trade
✓ Traditional trade
✓ Specialty stores
6
THE MIRROW PICTURE – MULTIPLE PERSPECTIVES
One market reality with multiple perspectives…
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
LEVERAGED FOR
BY
Execution
follow-up tool
Top Management
Strategy insights, opportunity
areas detection
Business Units/ Trade
Marketing
Negotiation tool
Key Account Managers /
Category Managers
Performance / incentives /
improvement tool
Regional Managers
Negotiation and performance
improvement tool
Sales Force Operations
7
KIMBERLY-CLARK DIAPERS CASE STUDY
KIMBERLY-CLARK OPPORTUNITY
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
Single source of the truth for execution
CURRENT PROCESS
OPPORTUNITY WITH MIRROW
Multiple data sources
All data from Mirrow
Store-level insights limited (manually
collected) and often slow to gather
Fast and full view of 700 stores
Competitive intelligence often limited to
hearsay
Photo evidence and competitors’ activity
Disparate spending pools for promotion
communications and execution
One measure of compliance across KC
enterprise
Functionality-contained analysis of
execution
Common language and view through
entire organization
9
NIELSEN MIRROW – KIMBERLY-CLARK
Flexible tool to provide in-store insights
EXECUTION
OPERATIONS
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
CATMAN
FOLLOW-UP
KC
NEEDS
PRICE
TRACKING
KIMBERLY-CLARK EXPECTATION
FOR IN-STORE MONITORING:
COMPETITOR
MONITORING
•
Successful execution
process with Multinational
and Local Retailers
•
Continuous follow-up for
executional activities
•
Incentives for sales force
•
Execution performance
feedback
10
EXECUTIONAL GUIDELINES
Ensuring end-to-end measurement and response to executional activity
EXECUTION
OPERATIONS
COMPETITOR
MONITORING
• Shelf & Special
Exhibitions strategy
compliance
• Competitor activity
follow-up
• Price strategy
compliance
• Promotions and
offers activation
• Competitor price
monitoring
• Brand
communication
PRICE
TRACKING
CATMAN
FOLLOW-UP
• Planogram
compliance
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
• Special exhibitions
• Offers &
promotions
activation
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KC DIAPERS CASE STUDY - EXECUTION SUMMARY
TOTAL MARKET – RETAILER #1
100%
SCORE TREND BY INDICATOR
90%
80%
100%
90%
70%
80%
70%
60%
60%
50%
50%
40%
J
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
40%
30%
F
M A M
J
J
A
S
O N D
Average overall execution with wide swings across metrics
20%
10%
0%
TOTAL
COMPLIANCE
OPERATIONAL
EXECUTION
SHELF
COMPLIANCE
COMPETITIVE
INTELLIGENCE
12
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
OPERATIONAL EXECUTION – SCORECARD
TOTAL MARKET – COMPLIANCE BY KPI
TARGET
RETAILER #1
RETAILER #2
Retailer 1 not delivering
on assortment, space or
promotions
PRODUCT
AVAILABILITY
12 items
avg by store
10 items
NUMBER OF
FACINGS BRAND 1
25 facings
avg by store
26 facings
26 facings
LINEAR METERS
BRAND 1
35 mts avg
by store
32 mts
35 mts
SPECIAL
EXHIBITIONS
4 exhibits.
Avg by store
2 exh.
4 exh.
Operations: Executional gap
closure at store level
POP MATERIAL
80% stores
85%
82%
PROMOTIONAL
ITEM
80% stores
90%
89%
Marketing / Trade: Strategy
compliance, New item
review
ACTION BY FUNCTION
Score by Retailer
Retailer #1
13 items
Retailer #2
Sales, Key Account
Managers: Negotiation
compliance with Retailer
Total Market Score
Operational Execution
13
OPERATIONAL EXECUTION – SCORECARD
STORE #1 – COMPLIANCE BY KPI
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
TARGET
STORE #1
PRODUCT
AVAILABILITY
12 items
10 items
NUMBER OF
FACINGS BRAND 1
25 facings
26 facings
LINEAR METERS
BRAND 1
35 mts
32 mts
SPECIAL
EXHIBITIONS
4 exhibits
2 exhibits
POP MATERIAL
Presence
Presence
PROMOTIONAL
ITEM
Presence
Presence
Store #1 Score
Photo evidence of gaps to close by store
Operational
Execution
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STORE TO-DO LIST – OPERATIONAL EXECUTION
Retailer #1
STORE #1
STORE #2
•
Correct OOS for Huggies Supreme
•
Increase +8 facings for KleenBebe
•
Increase 7 facing units for Huggies
•
•
Implement an island or end shelf in the
store
Implement an island or end shelf for
Huggies in the entrance
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
STORE #3
•
Correct OOS for Huggies and KleenBebe
•
Implement a special exhibition for
KleenBebe in the entrance
Top 3 items to correct by store focuses field reps and drives largest impact on
outcomes
15
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
COMPETITIVE INTELLIGENCE – SCORECARD
TOTAL MARKET – COMPLIANCE BY KPI
TARGET
PRICE
COMPLIANCE
RETAILER #1
RETAILER #2
15 items less
than 5%
variance to
target
15 items
SHARE
OF FACINGS
25% KC
28%
30%
ADJACENCIES IN
SHELF
Brand segment
OK
OK
SHARE OF
EXHIBITIONS
30% in
checkouts
15%
30.%
SHARE
OF POP
40% in shelf
40%
40%
6 items
ACTIONS BY FUNCTION
Score by Retailer
Retailer #1
Competitive positioning
impacted for price in Retailer
2 and promotions in Retailer 1
Retailer #2
Sales, Key Account Managers:
Retailer negotiation – get what
was paid for
Operations: Visibility on
competitive focus by store
Marketing / Trade: Opportunity
and risk assessment
Total Market Score
Operational Execution
16
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
COMPETITIVE INTELLIGENCE – SCORECARD
STORE #1 – COMPLIANCE BY KPI
TARGET
PRICE
COMPLIANCE
STORE #1
15 items less than
5% variance to
target
10 items
SHARE OF
FACINGS
25% KC
28%
ADJACENCIES
IN SHELF
Brand segment
OK
SHARE OF
EXHIBITIONS
30% in checkouts
15%
SHARE OF POP
40% in shelf
20%
Competitors
picture
Competitors
picture
Competitors
picture
Competitors
picture
Store #1 Score
Significant gaps in price and promotion in
Store 1 need to be closed.
Operational
Execution
17
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
SHELF EXECUTION – WHAT DOES THE PERFECT
SHELF LOOK LIKE?
Recommended shelf driven by business portfolio strategy, shopper
research, retailer negotiations
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SHELF EXECUTION SCORECARD
TOTAL MARKET – COMPLIANCE BY KPI
TARGET
BRAND
SEQUENCE
STAGE SEQUENCE
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
BRAND STRATEGY
RETAILER #1
RETAILER #2
80% of stores with
less than 10% of
variance of
sequence, according
price strategy
80%
80% of stores with
less than 30% of
variance of small sizes
at top, large sizes at
bottom
14%
87%
80% of stores with
less than 30% of
variance of All the
stages for each brand
0%
12%
Score by Retailer
Retailer 1 – 33%
Retailer 2 – 66%
87%
Combined executional
performance not
meeting objectives in
market
Total Market Score
Operational Execution – 50%
19
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
OPERATIONAL EXECUTION – SCORECARD
Store #1 Score = 33%
RETAILER 1 STORE 2 COMPLIANCE BY KPI
<10% of variance for
sequence according
price strategy
TARGET
<30% of variance of
<30% of variance of all
small sizes at top, large
the stages for each
sizes at bottom
brand
15 items less than 5%
variance to target
25% KC
Brand segment
6.91 %
44.4%
77.78%
STORE #1
Incidents
COMPLIANCE
PLANOGRAM
Operational
Execution
REALOGRAM
1
1.
2.
3.
Huggies Space Reduced
Unexpected Big-Size Formats
Vertical Stages Implementation
2
3
ACTION BY FUNCTION: Catman: Key stores follow-up, negotiation and strategy feedback/
Operations: Execution at store level and reaction/ KAM: Negotiation
20
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
COMMON SHELF GAPS ACROSS BOTH RETAILERS
Impact to shopper perception of category due to shelf conditions
Price & Brand Disorder
Horizontal Stages Implementation
New Big Size Formats
Size Disorder
21
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
ASSORTMENT COMPLIANCE
Retailer
Retailer 1
Store 1
Store 2
Store 3
Store 4
Store 5
Store 6
Retailer 2
Store 1
Store 2
Store 3
Store 4
Store 5
Store 6
Store 7
Store 8
% Items
Not Authorized But In
Store
% Items Authorized
And In Store
% Items Authorized
But Not In Store
29.3%
36.9%
43.1%
28.8%
28.7%
24.1%
27.7%
30.9%
33.6%
26.6%
46.6%
35.5%
26.0%
37.6%
44.8%
26.9%
34.3%
38.8%
9.0%
9.9%
13.5%
4.8%
8.2%
10.4%
11.3%
9.5%
79.1%
74.6%
67.6%
69.8%
71.4%
74.0%
75.3%
67.4%
11.9%
15.5%
18.9%
25.4%
20.4%
15.6%
13.4%
23.2%
Attempts to influence shopper behavior compromised due to lack of
assortment compliance
22
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
RETAILER 1 SUMMARY
Planned strategy is not being followed by the retailer. Evaluate
need to reopen negotiations, adjust internal plans, etc.
Assortment in store not as planned. Evaluate retailer
negotiations, pricing strategy, portfolio strategy.
New Large-Size formats missing from stores. Increase focus on
promotions and distribution.
Close gap on size blocking within retailer.
23
Copyright ©2014 The Nielsen Company. Confidential and proprietary.
RETAILER 2 SUMMARY
Overall good implementation of the strategy – getting what has
been agreed and paid for.
Good assortment compliance. Evaluate opportunity to test new
products with this retailer.
Tight focus on closing OOS in specific stores.
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