70
HOW TO OPTIMIZE YOUR BRAND AND CATEGORY PERFORMANCE THROUGH SHOPPER FOCUSED CATEGORY PLANOGRAMS Presented by Paris Galanis Merchandising Services Business Consultant Nielsen Europe
HOW TO OPTIMIZE YOUR BRAND AND CATEGORY PERFORMANCE THROUGH SHOPPER FOCUSED CATEGORY PLANOGRAMS
Presented by Paris GalanisMerchandising Services Business Consultant Nielsen Europe
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
2
AGENDA
• Introduction to Space Management
• Link between Space and Category Management
• How to optimize your brand and category performance through shopper focused category planograms
• Summary
• Questions
NIELSEN MERCHANDISING SERVICES
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
4More than 40,000 employees in over 100 countries…
The Nielsen Company is the world’s leading provider of marketing information, audience measurement, and business media products and services.
Who We Are
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
5
MERCHANDISING SERVICES
• Software Solutions
• Business Consulting
• Educational Services
• Tailor made solutions
• A division of Nielsen who specializes in tactical assortment, space planning and Category Management
• Strong presence in more than 100 countries in Europe, North and South America, Pacific Ocean Countries, East Europe, Africa, Mid-East and Asia
INTRODUCTION TO SPACE MANAGEMENT
LETS SEE AN EXAMPLE
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
8
Where is Wally?
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
9
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
10
x10Where is Wally?
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
11
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
12
When all of them are together
Where is Wally?
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
13
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
14
STORE LEVEL EXAMPLE• How easily can shoppers find the
categories that they are looking for?
• Based on what logic are the categories placed inside the store?
• Is there a link between the shopper flow and the floor plan design? Is it a positive or negative link?
• How will the above change as we move from a hypermarket to a convenience store or from city center to suburbs?
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
15
CATEGORY LEVEL EXAMPLE• How easily can shoppers find the
products that they are looking for?
• Based on what logic are the products placed on the shelf?
• Is there a link between the shopper flow and the category design? Is it a positive or negative link?
• How will the above change as we move from a hypermarket to a convenience store or from city center to suburbs?
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
16
One Wally is difficult to find
10 Wallys in different placesare still difficult to findx10
All Wallys togetherare very easy to find
To summarize:
WHAT IS SPACE MANAGEMENT?
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
18
WHAT IS SPACE MANAGEMENT?
The process of maximising the performance of the total category at the point of purchase by ensuring achievement
of in-store presence, which will promote
increased availability, accessibility and profitability.
WHAT ARE THE BENEFITS OF SPACE MANAGEMENT?
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
20
Shoppers
RETAILING ENVIRONMENT:
Retailers Manufacturers
IN STOREENVIROMENT
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
21
CONSUMERS’, RETAILERS’ AND MANUFACTURERS’ OBJECTIVES• Consumers:
Everything they need in the one shop and always in stock Well presented display of products that makes it easy to quickly find what
they need Enhanced shopping experience
• Retailers: Improve of store image Best use of available space Maintain existing shopper loyalty and attract new shoppers Maximize category and store performance
• Suppliers: Link ATL and BTL activities Good visibility, accessibility and availability of products Space allocation based on product performance Maximize brand and category performance
THE LINK BETWEEN SPACE AND CATEGORY MANAGEMENT
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
23
DEFINITION OF CATEGORY MANAGEMENT:
• A joint retailer – supplier process
of managing categories as strategic business units
and producing enhanced business results
by focusing on delivering consumer value
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
24
1. Define what products make up the category and what is their segmentation from the consumer’s perspective?
2. Develop & assign a role for the category based on a cross category comparison considering consumer, market, supplier and retailer information
3. Analysis of the category sub-categories, segments etc by reviewing consumer, market, supplier and retailer information
4. Establish the category’s performance measures & targets
5. Develop the marketing and product supply strategies that meets the category role & performance objectives
6. Determine the optimal assortment, pricing, shelf presentation & promotion tactics that ensure the category strategies are implemented
7. To implement the category business plan through a specific schedule & list of responsibilities
Category Definition1
Category Roles2
Category Assessment3
Performance Measurement4
Category Strategies5
Category Tactics6
Plan Implementation7
Cate
gory
Rev
iew
8
CATEGORY MANAGEMENT PROCESS:
WHAT IS A PLANOGRAM?
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
26
WHAT IS A PLANOGRAM?
• Display: It’s a way of displaying the arrangement of a product collection in a
store, a store typology or a retailer
• Position & Facings: It indicates the position of every product in the shelf, as
well as the number of facings per product
• Realism: There are required exact dimensions of the shelves and the
products so as the representation to be 100% realistic
• Data: It may include qualitative and financial data for further analysis and
valuation of the current and the expected results
• Collaboration: It contributes to the bargaining between the retailers and the
suppliers
HOW TO OPTIMIZE YOUR PERFORMANCE THROUGH SHOPPER FOCUSED CATEGORY
PLANOGRAMS
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
28
SPACE MANAGEMENT PROCESS
Create existing planogram
Analyze current performance
Shopper / consumer understanding
Category performance assessment
Blueprint creation and product allocation
Implement the proposed planogram
Evaluate the category performance
ANALYZE CURRENT PERFORMANCE1 IMPLEMENT
AND EVALUATE3CREATE THE PROPOSAL2
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
29
ANALYZE THE CURRENT PERFORMANCE
Create existing planogram
Analyze current performance
Shopper / consumer understanding
Category performance assessment
Blueprint creation and product allocation
Implement the proposed planogram
Evaluate the category performance
ANALYZE CURRENT PERFORMANCE1 IMPLEMENT
AND EVALUATE3CREATE THE PROPOSAL2
CREATE THE EXISTING CATEGORY PLANOGRAM
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
31
RECREATE THE CURRENT IN STORE PLANOGRAM
Market Data
Retailer Data
Supplier Data
Consumer Data
ANALYZE THE EXISTING CATEGORY PERFORMANCE THROUGH YOUR
PLANOGRAM
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
33
• How is the current category planogram designed?
• Is there a link between the category performance and the existing planogram?
• What are the problematic areas and where do opportunities exist?
EXISTING PLANOGRAM ANALYSIS
ANALYSIS EXAMPLES
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
35
Whisky
Spec
Vodka
Gin
Rum
Brandy
SEGMENTATION ANALYSIS
• How is the current category designed?
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
36
PERFORMANCE ANALYSIS
• Is there a link between the SKUs performance and their on shelf placement?
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
37
QUADRANT ANALYSIS
• What happens when I combine more than one KPIs?
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
38
STOCK ANALYSIS
• Do I have the optimal facings, stock on shelf and replenishment cycles to avoid OOS situations?
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
39
SALES VS. SPACE ANALYSIS
• What is the link between the allocated space and the SKU performance?
• What SKUs, brands, manufacturers or subcategories are over and underspaced?
• How can I change my space allocation in order to improve my category performance?
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
40
SPACE MANAGEMENT PROCESS
Create existing planogram
Analyze current performance
Shopper / consumer understanding
Category performance assessment
Blueprint creation and product allocation
Implement the proposed planogram
Evaluate the category performance
ANALYZE CURRENT PERFORMANCE1 IMPLEMENT
AND EVALUATE3CREATE THE PROPOSAL2
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
41
CREATE YOUR PROPOSAL
Create existing planogram
Analyze current performance
Shopper / consumer understanding
Category performance assessment
Blueprint creation and product allocation
Implement the proposed planogram
Evaluate the category performance
ANALYZE CURRENT PERFORMANCE1 IMPLEMENT
AND EVALUATE3CREATE THE PROPOSAL2
SHOPPER AND CONSUMER UNDERSTANDING
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
43
Are the purchasers of a product/ service prior to end use e.g. a parent buying baby food for consumption by their child
Are people who need something, a product or service, the end user of a product/service e.g. a person who buys an ice cream to eat immediately
Shoppers:
Consumers:
SHOPPERS VS. CONSUMERS
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
44
LETS SEE AN EXAMPLE
• Shoppers = Consumers:– Coffee: Since each person has its own criteria regarding coffee
the shopper will be influenced according to his own priorities:– Flavour– Price– Promotion
• Shoppers ≠ Consumers:– Baby food: Parents who are the shoppers of the category will
be influenced mainly by their doctor recommendation & the specific product attributes e.g. vitamins rather than price, promotion or package.
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
45
ANOTHER POINT OF VIEW
High Sensitivity Low Sensitivity
Shopper = Consumer
Coffee Snacks
Shopper ≠ Consumer
Baby Food Pet Food
SHOPPER AND CONSUMER DECISION TREE
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
47
SHOPPER AND CONSUMER DECISION TREE
AlcoholicDrinks
Whisky Vodka Brandy Rum
Premium
Gin Special
VFM
Brand A Brand B Brand C Brand D
CATEGORY ASSESSMENTAND PERFORMANCE MEASUREMENT
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
49
Consumer Assessment
MarketAssessment
RetailerAssessment
SupplierAssessment
OpportunityGap
Analysis
AssortmentAnalysis
PricingAnalysis
PromotionAnalysis
SpaceAnalysis
Product Supply Analysis
PERFORMANCE ASSESSMENT
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
50
CATEGORY MEASURES
Consumer Behavior Current TargetConsumer Household Penetration 90% 95%
Average Category Transaction 10 € 12 €
Consumer Satisfaction 85% 90%
Retailer Current TargetCategory Turnover 40.000 € 45.000 €
Category Gross Profit 6.000 € 8.000 €
Turnover / allocated space 2.000 € / m 2.250 € / m
Market Current TargetCategory Market Share 5% 7%
Productivity Current TargetDays of inventory 8 5
GMROI 7 8,5
CREATE THE CATEGORY BLUEPRINT AND PLACE THE PRODUCTS
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
52
WHAT IS A CATEGORY BLUEPRINT?
• It is a reflection of the
decision tree into the category
• Shows how each segment and
SKU should be merchandised
• Highlights their importance
and aligns their placement
based on the category
objectives and strategies
• More than one blueprint can
be produced according to
different product
assortments, store
formats, regions
CREATE YOUR PROPOSAL BY ADDRESSING THE ISSUES AND OPPORTUNITIES IDENTIFIED
DURING THE PREVIOUS STEPS
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
54
SEGMENTATION ANALYSIS
Current Proposed
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
55
PERFORMANCE ANALYSIS
Current Proposed
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
56
STOCK ANALYSIS
Current Proposed
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
57
CREATE DIFFERENT SCENARIOS
• Create multiple
scenarios
• Estimate the expected
category performance
• Select the scenario that
best fits your strategy
and maximizes the
category performance
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
58
SPACE MANAGEMENT PROCESS
Create existing planogram
Analyze current performance
Shopper / consumer understanding
Category performance assessment
Blueprint creation and product allocation
Implement the proposed planogram
Evaluate the category performance
ANALYZE CURRENT PERFORMANCE1 IMPLEMENT
AND EVALUATE3CREATE THE PROPOSAL2
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
59
IMPLEMENT AND EVALUATE
Create existing planogram
Analyze current performance
Shopper / consumer understanding
Category performance assessment
Blueprint creation and product allocation
Implement the proposed planogram
Evaluate the category performance
ANALYZE CURRENT PERFORMANCE1 IMPLEMENT
AND EVALUATE3CREATE THE PROPOSAL2
IMPLEMENTATION
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
61
• Test stores:
There should be sufficient number of test stores to produce robust
conclusions
Since trial stores are frequently chosen based upon relationships with
stores or store managers, it is crucial to ensure that these trial stores are
representative.
Where possible, rotate trial stores, so that consumers do not become
immune, or aware of their existence
• Support: depending on scale of changes, trial stores may require field-based
support to ensure that the plan is successfully implemented
• Checkpoints: pot checks will be useful to help determine the level of
compliance
PROJECT IMPLEMENTATION
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
62
IMPLEMENTATION:• Enhance head office to stores communication and
maintain consistent standards across similar store
formats
• Achieve quality control in documentation
EVALUATION
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
64
IMPORT THE UPDATED DATA INTO THE PLANOGRAM& REDO THE SAME TYPES OF ANALYSIS
Market Data
Retailer Data
Supplier Data
Consumer Data
Whisky
Spec
Vodka
Gin
Rum
Brandy
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
65
EVALUATION STAGES:
Pre implementation Proposed After implementation
Vs. Vs.• Recreate the existing in
store planogram
• Use multiple data & information sources to assess the current category structure & performance
• Identify problematic & opportunity areas
• Agree on a common category definition & segmentation
• Assess the role of the category in store
• Create common scorecards based on the pre implementation results & future targets & strategies
• Proceed with the proposal creation
• Import the updated data in order to holistically evaluate the category performance
• Compare vs. control stores, total market, LY etc
• Extract key findings that could be replicated & issues that should be resolved in future implementations
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
66
CATEGORY EVALUATION
Consumer Behavior Current Target Actual
Consumer Household Penetration 90% 95% 93%
Average Category Transaction 10 € 12 € 13 €
Consumer Satisfaction 85% 90% 90%
Retailer Current Target
Category Turnover 40.000 € 45.000 € 43.000 €
Category Gross Profit 6.000 € 8.000 € 8.500€
Turnover / allocated space 2.000 € / m 2.250 € / m 2.150 € / m
Market Current Target
Category Market Share 5% 7% 6%
Productivity Current Target
Days of inventory 8 5 5
GMROI 7 8,5 8
SUMMARY
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
68
SUMMARY
Space management can improve your in store environment which is one
of the touch points between shoppers, retailers and manufacturers.
It can help you maximize your brand and category performance through
a shopper centric approach.
Planograms are more than a display of products. They are databases that
contain all the necessary information and KPIs about the category.
Analyze the current situation in order to identify the opportunities and
threats
Use your proposals in order to address them and further develop the
category performance.
Always evaluate your plans and use both positive and negative findings
for future reference.
Copy
right
©20
12 T
he N
iels
en C
ompa
ny. C
onfid
entia
l and
pro
prie
tary
.
69
Thank you!
For any additional information please contact your local Nielsen Office
or send your questions at [email protected]
