- 1. Whats Leading Edge With Todays Leading Mass Volume
Retailers? 8912 East Pinnacle Peak Road Scottsdale, AZ85255 Phone
(480) 513-0547 Fax (480) 513-0548 E-Mail:[email protected]
[email protected] www.hoytnet.com March 8, 2005 Dallas, TX
American Logistics Association Exchange Roundtable
2. Based on most recent research, the top 3 retailers shoppers
rank as literally indispensable to their daily lives are Wal-Mart,
Target and Costco: Meyers Research:Retailers Consumers Could Not
Live Without(Aug, 2004) Source:Meyers Research, Aug, 2004 Base:
Among those who shop the store 2% Kmart 2% Rite Aid 3% Walgreens 3%
Dollar General 3% 7-Eleven 5% CVS 7% Sam's Club 8% Safeway 9%
Albertson's 9% Kroger 11% BJ's 13% Target 17% Costco 31% Wal-Mart
3. Not coincidentally, Wal-Mart, Target and Costco are also the
same retailers that consumers find the most fun to shop: Specific
Retailers Consumers Find Most Fun To Shop Source:Meyers Research,
Aug, 2004 Base: Among those who shop the store 1% Rite Aid 1%
Safeway 1% Family Dollar 2% Kroger 2% CVS 3% Walgreens 3% Kmart 4%
Albertsons 6% Dollar General 11% BJs 20% SAMs Club 28% Wal-Mart 30%
Costco 30% Target 4. Today:
-
- What is it about Wal-Mart and Target that makes them so
successful, not only with shoppers, but from a business standpoint
in general?
-
- What lessons can Exchanges take away from this, given their
objectives and the constrictions under which they operate?
5. The Leaders Snapshot of Current Vital Statistics:
Source:Company 10Ks & 10Qs; Hoyt & Company, LLC, 2003 -
2004 Hi/Lo EDLP Merchandising Strategy 12 21 Days Sales In Net
Inventory 6.3 7.7 Inventory Turns 289 439 Sales/Sq. Foot 62% 86% HH
Penetration Expect More/ Pay Less Always Low Prices Positioning
8.9% 9.9% Proj. CAGR, 04 - 07 22.4% 18.4% Operating Expenses 32.8%
23.9% Gross Margin 1,313 3,711 # Stores (U.S.) $47.1 $232.9 Sales
(U.S. $B) Target Wal-Mart 6. While Wal-Mart and Target are very
different retailers, both share the same objectives as all other
retailers specifically:
- Grow profitable sales by aligning and focusing all marketing,
merchandising, buying and logistics functions on one or more of the
following objectives:
-
- Increase customer count (new customers) X
-
- Increase trip frequencies (current customers) Yes
-
- Increase transaction size (current customers) Yes
-
- Increase productivity (Human and Financial) Yes
-
- Reduce costs (COGs and Operations) Yes
- As you will see, the paths that Wal-Mart and Target have chosen
to achieve these objectives represent todays industry Best
Practices.
7. The 800 lb. GorillaIn Every Retailers Living Room!
-
- $284B Largest company in the world greater than the GDPs of
Austria, Colombia, Czechoslovakia, Denmark, Greece, Norway,
Portugal, Sweden, Switzerland, Ukraine and Vietnam
-
- $20K in profitper minute !
-
- 13% WW CAGR projected to do $1 trillion by 2014
-
- $233B U..S. sales CAGR of 9.9% to 2007
-
- 500+ new stores/remodels planned for 2005
-
- Objective is to become the largest retailer in every market in
which it operates (now #1 in only two countries out of 10)
8. So what are the key growth drivers that enable Wal-Mart to
sustain the momentum of this juggernaut?
- Lets look at these from the standpoint of whats relevant to
Exchanges in terms of:
-
- Marketing and Merchandising
9. The key elements of the Wal-Mart marketing mix elegant and
sophisticated way beyond just Always Low Prices:
-
- 1. EDLP made possible by EDLC Global buying and relentless
pressure on COGs and operating costs
-
- 2. Use of consumables(food and non-edible CPG items) to drive
traffic and transaction size
-
- 3. OPP/good/better/bestmerchandising ladder (private labels
> national brands)
-
- Localization Demographic assortments
-
- 5. Ancillary businesses hearing aids, optics, stores within
stores, etc.
-
- 6. Consumer-centric versus supplier-centric business model all
allowances are driven into price and not used to subsidize
operating profits
10. The key elements of the Wal-Mart marketing mix (contd)
-
- 7. Shop-ability wide aisles, mucho signage, well lit, easy to
navigate
-
- 8. Speed to market new items and promotions 24/7 + 48 hour
turnaround
-
- 9. Community involvementparking lot extravaganzas, fishing
contests, high school marching bands, etc.
-
- 10. Retail-tainmentin-store TV sets, trendy promotions (Shrek 2
and Britney Spears)
-
- 11. EDLP reinforcement roll backs, action alley, special buys
and multiple clearance items
-
- 12. Clicks and bricks synergy what you cant get in-store, you
can get online
-
- 13. Store managers have broad discretion can tailor
assortments, authorize local displays and recommend new
distribution of local items
11. Wal-Mart strategy to drive trips/provide one-stop shopping
convenience sell need (read food) items! Source:Retail Forward,
Food Industry Outlook, February, 2004; ACNielsen, 2002 and 2003
2001 $63B 2002 $82B 2003 $95B 2004 $112B 2007 $162B 2010 $195B 35%
Bigger than Kroger, Albertsons, Safeway and Ahold combined Bigger
than Kroger & Albertsons Combined Surpasses Kroger as the
nations #1 food retailer +17.0%/Year Compounded Vs. 4.0% For
Supermarkets! Wal-Marts March To The Top of the U.S. Food
Chain:2001 - 2010 (Food & Drug SalesOnly) 12. The Wal-Mart
Merchandising Ladder OPP =Opening Price Point in the category
(typically, Private Labels) GOOD BETTERBEST = Typically National
Brands Source:MVI 10/28/2004 13. Wal-Mart Buying What lies behind
the glitz
- Wal-Mart buyer responsibilities:
-
- Development of innovative merchandising solutions
-
- Understand customer needs and trends and set the pace of new
product development & brand strategy
-
- Management of a diverse supplier base from major brands to own
label
-
- Achievement of business plan targets
-
- Development and delivery of the categorys trading strategy
14. Wal-Mart Buying How Buyers are Measured
-
- Markdowns (e.g., maintained margin)
-
- Comparable store sales growth (in certain categories)
-
-
- Respect for the individual
Wal-Mart Buyer Key Performance Measures 15. To achieve their
objectives, Wal-Mart buyers proactively utilize suppliers to help
run their business:
- Wal-Mart Buyer > Supplier Expectations
-
- Annual plan -- rolling 12 months by month and quarter
-
-
- MCAPS -- community store merchandising
-
-
- Sales, initial margin, markdowns, contribution margin
-
-
- Problem stores/districts, as well as items
-
-
- Economic order quantities
Source:MVI, Selling Wal-Mart 10/28/2004 16. Wal-Mart Vendor
Scorecard Extensive measurements for Wal-Mart and Suppliers
-
-
- Sales at Full Price vs. Markdown
-
-
- Markups and Markdowns (Dollars, Units and %)
-
-
- Prior and current retail price
-
-
- Gross profit at item level
-
-
- Replenishable store inventory
-
-
- Non-replenishable store inventory
-
-
- Customer defective returns
Source:Hoyt & Company Records 17. Wal-Mart Logistics How
does Wal-Mart stack up versus its leading competitors?
- Wal-Mart has the highest inventory turns
- Wal-Mart Turns vs. Kmart + Target: 1998 - 2003
Source:Company Reports; MVI, 10/28.2004 18. Wal-Mart Logistics
How does Wal-Mart stack up (contd)
- and the lowest # of days sales on hand:
- Wal-Mart vs. Leading Competitors:# Days Inventory On Hand:1998
- 2003
Source:Company Records; MVI, 10/28/2004 19. Wal-Mart Key
Inventory Management Drivers:
- Replenishment & Logistics
-
- Co-managed/vendor managed inventory
-
- Two-Tier Distribution (Replenishment vs. Promotional)
-
- Collaborative Planning, Forecasting and Replenishment (CPFR)
works with suppliers to determine appropriate levels
-
- The Future:Radio Frequency IDs (RFID)
-
- Modular-based merchandising
-
- Modular Category Assortment Planning System (MCAPS) /Store of
the Community
20. Why is Wal-Mart so good at logistics?
- Because the buyers open-to-buy is based on inventory management
and supply chain movement:
- Wal-Mart Buyer Open-To-Buy
In The DC In Transit In Store On Order In Route PLUS + New Item
Promotions Replenishment Seasonal What the buyer is able to order
here Depends on how much $ he/she has tied-up in these buckets =
why suppliers are so eager to work with Wal-Mart in helping to
generate maximum sales off the lowest possible inventory base. 21.
Net on Wal-Mart:EFFICIENCY!
-
- Consistent, clear positioning Always Low Prices everyone knows
precisely what Wal-Mart stands for
-
- Relentless focus on the fundamentals
-
- Cost suppression and cost reduction is a mantra
-
- Cooperation with suppliers to achieve mutual objectives
-
- Combination of food (consumables) and traditional discount
creates a low price one-stop shopping mecca
-
- Lightning speed to shelf on new items/trendy promotions
-
- Fun place to shop in-store TV, on trend promotions, parking lot
extravaganzas and tie-ins with local community events
-
- Fierce competitor will price comp anything, anywhere
-
- Store manager discretion means stores can be traited and
tailored demographically
22. Expect More/Pay Less
-
- $47.1B in 04 sales a 15.1% increase vs. 03 (less Mervyns and
Fields)
-
- 8.9% CAGR between now and 2007 projected to do $61B versus
todays $47B
-
- 1,313 stores 1,177 Targets + 136 Super Targets
-
- Comparisons to Wal-Mart are dangerous:
-
-
- Different merchandising strategy
-
-
- No attempt to compete on same basis
-
- Is much more like an Exchange in assortment and
operations:
-
-
- Careful balance of high end vs. commodity merchandise PLs and
exclusives are key
-
-
- Limited CPG food representation (changing quickly)
-
-
- Super centers are NOT the primary growth engine
-
-
- Distinct department store heritage and orientation
23. Target Challenges:
-
- Low trip frequencies vs. Wal-Mart, Costco and even Dollar
Stores!
-
- Supercenters behind the curve
-
- Too Department Store-y for a discounter:
-
-
- Clean, uncluttered store policy sometimes perceived as sterile
and boring
-
-
- Too much emphasis on want vs. need merchandise not enough
everyday consumables to drive trips, create excitement or get
shoppers started on the merchandise ladder
-
- Highly centralized operations Store Managers role is compliance
and execution no local discretionary authority
=71% of Trips and 80% of Spending 24. Target Heavy Shopper Trip
Frequencies Just Not Enough! Source: IRI Panel Data 52 weeks ended
Dec 31, 2003 25. Being perceived as more Department Store-y than
one-stop discount/convenience these days is not exactly on trend:
The U.S. Department Store Death Spiral:1990 - 2010 Department Store
Share of Non-Auto Retail Sales Source: Retail Forward, 2003 26.
Despite these seemingly core negatives, Target has consistently
out-paced Wal-Mart in both sales and comps ever since it jettisoned
Mervyns and Marshall Fields in 2003 Target vs. Wal-Mart sales and
comparable store growth 2004 Source:Company 10Qs and monthly
financial reportsMVI, Dec 09, 2004 27. So what is Target doing to
achieve such exceptional results?
-
- Clear, concise, consistent positioningExpect More, Pay
Less:
-
-
- Not just words but the basis for all buying and merchandising
decisions
-
-
- The framework for Targets Merchandising Ladder
-
-
- A short, simple slogan that shoppers can remember and
relate-to
-
- Non-price differentiationThrough captive brands, designer
exclusives, partnerships with other retailers, trendy P.L.
merchandise, celebrity endorsements and Buzz Marketing
-
- Emotional Connection with its customers My Target
28. So what is Target doing to achieve such exceptional results,
contd?
-
- Heavy advertisingOver $1B in 2004 to heighten awareness, sell
promotions and build equity for the Target name
-
- Quick response segmented merchandising To capitalize on the
latest generational and lifestyle shifts expanded pharmacies
(seniors), Hispanic advertising and Merchandising, One Spot (dollar
sections), always on-trend merchandise (soft goods, apparel and
housewares) and seasonal promotions
-
- Rapidly adding everyday need consumables to drive trips and
increase traffic significantly expanded food sections in all
stores.Recently added extensive wine section.
29. Target Positioning:Expect More, Pay Less PAY LESS EXPECT
MORE Were on top of trends so you will find the latest and greatest
at Target. Bright, clean stores and fast checkouts make shopping at
Target easy and fun. Really low prices are the number one reason to
shop at Target. Great quality at a low price makes Target
merchandise a great value. STYLE SERVICE PRICE QUALITY
-
- Platform for differentiation
-
- Drive trips/build traffic
-
- Create low price impression
30. Targets Expect More/Pay Less Positioning has enabled Target
to place itself squarely between commodity discounters and
traditional department stores and avoid competing with either on
their terms:
- Targets Positioning vs. Discount and Department Stores
Drive Value Focus Drive Trend Focus
- This positioning has become a major asset:
-
- Enables Target to attract a wealthier shopper than traditional
discount stores.
-
- Improves sales per store, transaction size and gross margins
(Targets are highest in the channel at 32.8%).
-
- Trend/Quality/Convenience
31. Target Buying Key Levers
-
- Trend Planning Crucial to Expect More:
-
-
- Trend merchandisers travel to seek-out latest colors, fashions
and designs
-
-
- Research coordinated across departments
-
-
- All items, color schemes, etc. are tested ahead of the
season
-
- Customization Pressure on suppliers to co-brand or custom-pack
merchandise to reinforce Targets differentiation objectives
-
- Competitive Line Reviews Basically auctions consisting of
competitive bidding for line distribution or promotion
support:
-
-
- Target even calls these shoot outs
-
-
- Series of elimination rounds
-
-
- Contracts can be up to one year
-
- Reverse Auctions Online competition to provide lowest cost for
commodity items or private label consumables
-
- Global Sourcing/Direct Imports Target is doing as much as it
can to buy direct from lowest cost producers willing to meet
product specs
32. Target Buying Supplier Mandates
-
- Reduce cycle timesallow for just in time inventory
-
- Zero tolerance for orders delivered before/after scheduled
time
-
- One Purchase Order per Truckwhile trying to reduce overall # of
POs
-
- Tiered in-stock level requirements identify when Target begins
to lose sales maintain in-stocks above this level
-
-
- 97% in stock for top 2500 items
-
-
- 92-95% in stock for remainder of items
-
- Perfect match of invoice to receipt of product
33. Target Supplier Report Card
- Targets scorecard is the most complete of the three largest
Discounters:
-
- Percent of plan $s and unit sales
-
- Share of space, advertising, merchandising
-
- Out of stocks warehouse and store lost sales
-
- Percent orders with changes (customer)
Administration Sell Through Logistics Buying 34. Target Supply
Chain/Logistics Initiatives 2005 and Beyond:
-
- SKU Reduction To facilitate focus on fewer, more important
items and be more important to fewer vendors
-
- Automated Receiving TechnologyElectronic labeling system that
utilizes real-time information about where product is needed:
-
-
- Automatically labels each carton
-
-
- Significantly accelerates the flow of goods
-
-
- Eliminates time-consuming, labor intensive procedure
-
-
- Rollout starting December, 2004
-
- DPIAD irectI mport,P re-distro &A ssortment Programs
-
-
- Converts indirect imports (no middlemen) to direct
-
-
- Have suppliers pack store-specific and store ready pallets,
reducing DC workloads and storage space
-
-
- Have suppliers combine multiple items in cartons to reduce the
number of cartons sent to DCs in stores
-
-
- Estimated savings of$71MMin 2005
-
- RFID Mandatory for pallets and cases by spring, 2007
35. Target From The Suppliers Standpoint:
-
- Multiple opportunities to tie-in with Targets marketing and
merchandising initiatives
-
-
- Expect More/Pay Less platform
-
-
- Target community giving/cause-related sponsorships
-
-
- Co-Marketing to build upon each others equity
-
-
- Current, intense emphasis on Pay Less
-
- Multiple vehicles Target TV and print advertising, circulars
and website, etc.
-
-
- Partners On Line (POL) provides suppliers with same data that
buyer has (like Wal-Marts Retail Link)
-
-
- InfoRetriever Available to Category Captains and top vendors
provides a deeper level of information on a more current basis + 2
years of back data
36. Net on Target:EMOTIONAL CONNECTION!
-
- Non-price differentiation no attempt to compete with Wal-Mart
on its own terms
-
- Willing to settle for a piece of the pierather than going after
the whole enchilada:
-
-
- Consumer target is not the universe but primarily women and
young singles
-
- Clear, precise, consistent positioningthat enables Target to
fill the void between commodity discounters and traditional
department stores
-
- Unique understanding of the needs, wants and aspirations of its
target shopper:
-
-
- Designer clothes, soft goods and housewares at great
prices
-
-
- Clean, uncluttered stores with contemporary colors and thematic
consistency
-
-
- Ancillary services that cater to Target shoppers lifestyles,
needs and shopping proclivities (pharmacies, Minute Clinics, photo,
Starbucks and Pizza Hut, etc.)
37. Net on Target:EMOTIONAL CONNECTION(contd)
-
- Product assortments that cannot be purchased anywhere else
designer exclusives and captive brands, etc.
-
- Strong, centralized controlto ensure uniformity and thematic
consistency throughout all store presentations and activities
-
- A conscious policy of transferring as many costs as possible to
the supplier communitywhile, at the same time, offering suppliers a
strong upside through Targets aggressive advertising, merchandising
and product exclusivity policies
-
- Awareness of and willingness to react quickly to current issues
for example, Targets current campaign to significantly increase its
consumables representation to increase traffic and trip
frequencies
38. While Target and Wal-Mart have each chosen to walk different
paths on route to their success, there are certain factors common
to both of these retailers that make them leading edge vs. most
others in the retail community.
-
- 1. Differentiation Through constant juggling of the following
elements:
-
-
- Successful Private Label Programs
-
-
- National Brand Supplier Customization
-
- 2. Use of Consumables To build traffic and increase trip
frequencies.
-
- 3. Ancillary Departments To increase convenience and share of
wallet.
-
- 4. Fluid Merchandising (rapid ins and outs)To create
excitement, build trip frequency and reinforce differentiation
objectives
39. Ten factors that separate the most successful from the rest,
contd
-
- 5. OPP/Good/Better/Best Merchandise Ladders To trade shoppers
up in almost every category.
-
- 6. Speed to MarketNow more important than Bigness
-
- 7. Relentless Pressure on Costs and ProductivityBoth in general
and store-specific
-
- 8. Willingness to Experiment New formats, ancillary businesses,
stores within stores, partnerships, adjacencies, retail-tainment,
etc.
-
- 9. Global SourcingNow direct from the lowest cost producer no
middle men.
-
- 10. Technological Innovation RFID, etc. to reduce
costs/increase speed
40. Moral of story:
- Its not just price; its a combination of factors, carefully
blended and balanced to satisfy a particular consumer need or
aspiration.Each retailer has to search within its own strengths to
find the right formula.There are no easy answers.
41. 42. A Special Thanks to Sylvia Harris and Cathy Ely of Luke
AFB for their time and hospitality . . . 43. We Appreciate The Time
and Attention You Have Given Us Today
- Specifically, we want to thank Frank Jepson and the American
Logistics Association for inviting us and P&G for sponsoring us
and trust that this has been both fun and helpful.
8912 East Pinnacle Peak Road Scottsdale, AZ85255 Phone (480)
513-0547 Fax (480) 513-0548 E-Mail:[email protected]
[email protected] www.hoytnet.com 44. Appendix Some
particulars that may be of interest . . . 45. Target and Kmart U.S.
Sales vs. Wal-Mart Relatively Small Source:MVI 10/28/2004 Wal-Mart
vs. Target and Kmart Sales & Growth Projections:1999 - 2007E
$19.4B $59.5B $309.4B $382.1B $100 $200 $300 $400 1999 2000 2001
2002 2003 2004E 2005E 2006E 2007E Wal-Mart Corporation Wal-Mart US
Target Corporation Kmart 46. By mid 2004, Wal-Mart U.S. had
achieved 86% household penetration almost 25 points more than its
next largest competitor which translates to over 130MM shoppers per
month Wal-Mart vs. Leading Competitor Household Penetration, Mid
2004 Source: IRI Panel Data (all shoppers - Total US) 47. Not
content with this, Wal-Mart plans an additional 500 new store
openings plus remodels in 2005, driven primarily by new
Supercenters: Wal-Mart Domestic Expansion Plans For 2005 Total U.S.
Supercenters Discount Stores SAMs Clubs Neighborhood Markets Total
New Stores Remodels/Relocations Grand Totals +240 - 250 +40 - 45
+30 - 40 +25 - 30 335 - 365 160 500+ Source: Wall Street Journal,
10/5/2005; Supermarket News, 10/11/2004 + 10/18/2004 48. Wal-Marts
store expansion strategy is carefully calculated to capture new
consumers at all levels of the income spectrum and to provide
shoppers with easy accessibility:
- Wal-Mart Format Expansion Strategy:Capturing Consumers at All
Income Levels
-
-
- Target the same consumer for different trips
Format Consumer by HH income A B C D E 75K+ 60-75K 45-60K 25-45K
< 25K Discount Supercenter N. Mkt SAMS walmart.com Source: MVI
10/28/2004 49. Wal-Marts latest and greatest
-
-
- Kids Connection Candy, soda, clothes, toys
-
-
- Personal Business Centers
-
-
- Dollar Stores plastic bunnies, etc.
-
- Increased focus on soft goods :
-
-
- Heavy focus on Wal-Mart brands
-
-
- Integrated merchandising e.g., not just towels but everything
for the bathroom
-
-
- In-store TV support for How to decorate your home
-
-
- Mary Kate and Ashley exclusives in-store and online
-
-
- The Wal-Mart George line men, women and children big push!
-
-
- Trend alert partnership with Seventeen Magazine to offer teens
cool picks in clothing and electronics
50. Target SuperTarget Growth vs. Wal-Mart Supercenters Not
exactly NASCAR competitive Source: MVI, Selling Target, 12/9/2004
51. Target Super Target Issues:
-
- Traditional Targets are Hi/Lo; Super Targets are EDLP:
-
-
- Target dependent on supplier allowances to grow operating
profits
-
-
- Every time Target converts a traditional discount format to a
Super Target, it loses the benefit of the allowance (which is
thereby driven into price and not op. profits)
-
-
- Building too many super centers too fast would severely impact
Targets financials
-
- Super Target trip frequencies do not support format
productivity
-
- Super Target layouts do not allow easy transition to the
consumables section and cross-over shopping
52. Expect More Implementation is all about non-replicable
differentiation
-
- Department store-like destination departments :
-
- Exclusive Partnerships Fieldcrest, Boots (HBA and Cosmetics)
and Amazon.com (powers the Target website)
-
-
- Reinforce Targets brand equity allhave either Wave or Bulls
Eye
-
-
- Key contributor toTargets 32% gross margin
-
- Synergistic, complementary spin between stores and website
:
-
-
- Bridal registry, Target to a T custom made clothes
-
-
- Red hot shop hot trendy items new every week
53. Pay Less Implementation is all about driving trips and
traffic:
-
- Price comping 2002 - Target pledges to match Wal-Mart on price
item for item throughout stores
-
- Significant expansion of consumablesand commodity items
starting in Q3, 2003:
-
-
- Based on new P2004 format
-
-
- 50% greater space devoted to food, beverages and snacks
-
-
- Consumables World department placed in front of store
-
-
- 70 remodels in 2004 all remodels and new stores starting in
2005
-
- Savings Spot In front of store, near registers, introduced
2004:
-
-
- Paper, household cleaning supplies and pet foods
-
- One-Spot (Dollar departments) now expanding beyond test:
-
-
- Kitchen, storage containers, toys, baby products and
stationery
-
-
- Exceptional value and Treasure Hunt items
-
-
- Managed by separate buying group
-
-
- Does not cannibalize other items
54. Target Ancillary Departments Return Trip and Transaction
Size Drivers:
-
-
- Pharmacy rewards program tied to use of Target Visa card
-
-
- 135 sq. ft., staffed by a nurse practitioner
-
-
- Treats about a dozen common health problems
-
-
- Menu-priced most services $40 - $45, covered by insurance +
co-pay
-
-
- Now testing in 8 stores (BM) with plans to expand in metro
areas
-
-
- 95% of MC patients get prescriptions filled at Target
-
-
- In-store restaurants Starbucks, Pizza Hut, Taco Bell
-
-
- Bridal and baby gift registries
55. Target aggressively advertises its benefits through multiple
vehicles and is, in fact, the largest advertiser of the Big 3
-
- TV is strongly seasonal/holiday oriented
-
- Heavy print budget is targeted to women and young adults
-
- Unmeasured is circulars and ROP
Source:LNA and MVI, 2003 - 2004 (38) (63) (100) Index $413 $678
$1,083 $223 $198 $483 Unmeasured $8 $14 $19 Outdoor $95 $40 $293
Print $86 $426 $288 TV Kmart Wal-Mart Target Vehicle 56.
-
- 85% of buyer compensation:
-
- In-Stock % (10%) and personal objectives (5%) round out
compensation
-
- Senior Buyers are also eligible for a bonus plan that can
represent up to 100% of their base compensation.
-
- Goals are set every 6 months, not annually.
Target Buyer Compensation Structure Including product flow
costs