Creating Profitable Localized Assortments and Space Plans

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JDA Software delivers the transformational technology, best practices and expertise that suppliers need to excel in today’s consumer-centric world. The JDA Collaborative Category Management solution suite empowers category management professionals to move from manually intensive tasks to offering proactive, analytics-driven insights that collaboratively grow category sales and margins for both suppliers and retailers.

The JDA Collaborative Category Management suite enables you to:

◾ Achieve and exceed sales plans at the store level
◾ Satisfy customer shopping experiences with targeted assortments
◾ Maximize scale and planner productivity through automation
◾ Support execution and compliance with mobility

The industry’s most widely used space and category management solutions, JDA’s Collaborative Category Management suite delivers end-to-end capabilities and the tools that suppliers need to connect the entire category management process, supporting all stages of category management.

◾Capture and manage high volumes of shopper data from various sources
◾Analyze data and generate insights about shopper behaviors at macro and local markets
◾Develop localized, actionable assortment plans based on the insights

Leverage mobility to enable:

◾Collaboration on assortments and planograms for store-level execution
◾Performance monitoring and feedback with field merchandising team

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Creating Profitable Localized Assortments and Space Plans

  1. 1. Creating Profitable Localized Assortments and Space Plans JDA Collaborative Category Management
  2. 2. Current Consumer – Retail – Supplier Dynamics Prove Problematic Challenges and Opportunities
  3. 3. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Sales Outlet Showroom Fulfillment Center The Role of the Store in the Omni- Channel Journey Continues to Expand Specialty And Performance Expectations of Trading Partners are Increasing Shelf Productivity Promotion Inventory Management
  4. 4. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL • Resets are on the rise • Thousands of POGs = 6 months to produce • Retail data is vast and plentiful • Data volume is not manually consumable • Ability to extract value from data is limited Retailers Move to Localization: Strain on Productivity / Precision
  5. 5. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL What Value do Retailers Seek from their Trading Partners? • Happy Customers • Category Growth • Effective Local Assortments • Shelf Productivity • Store Compliance • Value-Add Partnerships
  6. 6. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Yet, Brand Loyalty and Experiences on the Decline 2010 33% Source: Deloitte “Must Have” Brands 2012 29% 88% Source: Deloitte Move to Private Label? 27% Moving Back to Brand? 15% Source: IPG Media Labs Store shopper satisfaction is declining per year
  7. 7. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Manufacturers Turn to Choice: SKU Counts are Increasing Number of SKUs in Grocery grew 50% between 2003 and 2010. Source: Food Marketing Institute
  8. 8. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Category Managers Struggle to “Do It All” “My sales are flat, and I’m starting to lose shelf space.” “I can’t meet my reset deadlines.” “Regardless of how many new people I hire, there’s only so many planograms I can produce.” “My business plan isn’t convincing without meaningful insights.” “How can I demonstrate better value to my retailer?” “My sales are flat, and I’m starting to lose shelf space.” “I can’t meet my reset deadlines.” “Regardless of how many new people I hire, there’s only so many planograms I can produce.” “My business plan isn’t convincing without meaningful insights.” “How can I demonstrate better value to my retailer?”
  9. 9. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Making the Category Management Leap Planogram Development Gut-Feel Decisions Fixed Resets “Contributor” Status Dynamic Adjustments Proactive Insights Analytics-Driven Decisions “Collaborator” / “Trusted Advisor” Laggard Leader
  10. 10. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL • Aligned Business Goals • Integrated and Automated Tools • Deep Analytics • Reliable Performance Measurement • Interactive, Corporate-to- Field Collaboration What Do Category Managers Need to Have?
  11. 11. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL JDA Collaborative Category Management Creating Profitable Growth with Localized Assortments Empowering category management professionals to move from manually intensive tasks to proactive, analytics-driven insights that grow category sales and margins for both suppliers and retailers Mobility and Task Management Automation and Workflow Planogram Precision & Volume Consumer Insights & Analytics EXECUTION Collaborative Category Management PLANNING EXECUTION Access & Delivery JDA Cloud Business Agility Sustainable ROI Upgrade & Optimization Process & People Strategy and Process Organizational Design Change Leadership Continuous Improvement Assortment
  12. 12. JDA Collaborative Category Management • Localizing Assortments and Plans • Maximizing Sales and Optimizing Space • Creating Trading Partner Value • Driving Profit
  13. 13. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Problems Solved: Insightful Assortments Offers Aligned with Local Shopper Preferences Improved Turns and Sales per Sq Ft. Improved Customer Experience Precise Space Allocation AFTER JDA Collaborative Category Management Variety Mismatched w/ Local Preferences Assortment Never Aligned with Space Strategy Plan Profitability Was Always Questionable One-Size-Fits-All Assortment BEFORE JDA Collaborative Category Management Inventory Waste | Unfulfilled Shopping Higher Sell-Through | Winning Experiences Experienced double-digit percent sales increases
  14. 14. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Problems Solved: Localization Non-productive Space, Missed Sales Category Manager Productivity Drain Makeshift, In-Store Edits Poor Compliance to Plan Unsatisfied Shoppers BEFORE JDA Collaborative Category Management Fitted to Local Store Fixture and Sales Goal Increased Shelf Productivity Higher Productivity by Automation Better Compliance to Plan Much Happier Shoppers AFTER JDA Collaborative Category Management Limited Space Productivity | Store Strategy Misalignment Customer Satisfaction | Higher Sales Growth and Turns Experienced 4pts of growth over traditional cluster POG
  15. 15. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Problems Solved: Mobility Planograms Integrated with Task Interactive Field Collaboration Improved Compliance Chain-wide Visibility Mobile Execution AFTER JDA Collaborative Category Management Unreliable Plan to Field Collaboration Limited Visibility to Execution Sporadic Compliance Ad-Hoc Field Feedback Reliance on Paper POGs BEFORE JDA Collaborative Category Management Underutilized Space | Missed Opportunities | Bad Experiences Productivity | Maximized Revenue | Better Experiences
  16. 16. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL JDA Collaborative Category Management Suite Provides end-to-end category management capabilities delivering sales growth through collaboration and planning, empowered with consumer insights and advanced automation. High Sales per Square Foot / Meter • Scalability through Automation ONLY “Better identification of product assortment for each point of sale has helped us increase sales and customer satisfaction.” Roberto Franci Chief Operating Officer, Conad Del Tirreno
  17. 17. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Collaboration, alignment, visibility, monitoring Increased consumer relevance (customer loyalty) Supply chain efficiency and stock turn A higher return on space Business efficiency via reduction in operational costs Increased sales and profitability Overall improvement in bottom line contribution JDA Localized Assortments Optimal Utilization of Inventory & Space
  18. 18. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Collaborative Category Management Consumer Insights & Analytics Targeted Assortments Localized Planogram Automation & Workflow Mobility & Task Management ONLY Precision • Monitoring • Growth Happy Customers Happy Retailers Profitability
  19. 19. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL Guided by the Industry’s Most Experienced Professionals 400+ 1,300+ Retailers Manufacturers Image courtesy: alpha 300,000+Stores
  20. 20. Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL http://www.jda.com/solutions/collaborative-category- management/ Discover More about JDA Collaborative Category Management

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