Inspire 2013 - Making Sure You’re Covered for any Contingency at Levi Strauss & Co


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Levi Strauss & Co. has been innovating since 1873, the year they created and patented the world’s first blue jeans. Throughout their long history they’ve inspired change in the marketplace, the workplace and the world. Sometimes though it’s necessary to make the best decision in response to changes the world has in store for you. Come to this session to hear how the company started to adopt and broaden the use of Alteryx Strategic Analytics in response to market risks like the demise of major customers like Mervyn’s, as well as market opportunities with smaller retailers that represent potentially new sources of growth. See how Robert Smyre, Manager - Global Marketing Insights at Levi Strauss & Company, stays on top of his game with Alteryx and learn where he’s headed next.

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Inspire 2013 - Making Sure You’re Covered for any Contingency at Levi Strauss & Co

  1. 1. Making Sure You’re CoveredContingency Planning with AlteryxLevi Strauss & CompanyRobert SmyreMarch 7, 2013
  2. 2. Levi Strauss & Company• Founded in San Francisco by Bavarian immigrant Levi Strauss in 1853• Created the first pair of jeans, patenting riveted work wear in 1873• Introduced Dockers® khakis in 1986 to fill the wardrobe gap between jeans and suits• Brands sold today by Levis Strauss & Company • Levi’s® (1873) • Dockers® (1986) • Signature by Levi Strauss & Company™ (2003) • Denizen® (2011)
  3. 3. IntroductionMarketplace Insights• Consumer and Competitor Insights• Channel Insights (wholesale, retail, brick and mortar, online, etc.)• Data acquisition and management (syndicated, internal, survey, vendor, etc.)• Reporting and Advanced Analytics• Brand Equity and Social Media MonitoringRobert Smyre• Joined Levi Strauss & Company 6 years ago• Previously worked for CSX Corporation, Wells Fargo Bank, Safeway, and Accenture• MBA from Florida State University• Originally from North Carolina
  4. 4. Alteryx at Levi Strauss & CompanyGeo-Spatial and Demographic Applications
  5. 5. Alteryx at Levi Strauss & Company• LS&CO started using Alteryx in 2008 with a desktop license• Initially attracted to its data handling capacity vs. that of existing geo-demographic software• Also attracted to the straightforward user interface and the ability for a new user to be up and running quickly• In the first year, using Alteryx the company reduced a semi-annual data compilation project process from four days to four hours and eliminated the need for an outside consultant to scrub data (estimated annual savings: $60,000)• Alteryx has reduced the time needed to do ad hoc geo-spatial and demographic work – increasing the use of these tools in projects throughout the company
  6. 6. Alteryx at Levi Strauss & Company Today• Identify and quantify top opportunity markets using an indexed sales metric for brand and category sales - Alteryx was instrumental in helping to turn this from a data dump to a usable market intelligence tool• Identify existing customers for new account approval process• Create store and retailer profiles – ethnicity, income, age, education, etc. – for product assortment and marketing projects• Create market profiles to better understand product penetration in those markets• Study new product cannibalization of existing product offerings at nearby stores• Compile a database, including demographics and geographies, of existing doors for remote user research projects – using Alteryx’s Calgary database tools• Identify stores near attractions (theme parks, golf courses, etc.) for related promotions
  7. 7. Proximity Reporting App Single Address Multiple Addresses Link to a file with a list of addresses to be mapped Map the fields in the column to the listed fields Enter a single address to be mapped
  8. 8. Proximity Reporting OutputAlteryx App output
  9. 9. Contingency PlanningUsing Alteryx to be prepared
  10. 10. 2008 & 2009 were difficult years for retailers• July 29, 2008 – Mervyn’s announces it has filed for Chapter 11 bankruptcy protection• August 4, 2008 – Boscov’s announces it has filed for Chapter 11 bankruptcy protection• October 31, 2008 – Mervyn’s announces it will liquidate its assets and close all its stores• December 31, 2008 – Mervyn’s closes its final store• January 14, 2009 – Gottschalks announces it has filed for Chapter 11 bankruptcy protection• March 31, 2009 – Gottschalks announces it will liquidate its assets and close all its stores• July 12, 2009 – Gottschalks closes its final store• September 19, 2009 – Boscov’s exits Chapter 11 intact
  11. 11. Impact of Closures on Retail Landscape• Mervyn’s • 177 stores in 7 states (as of February 2007 – after closing the stores in Washington and Oregon)• Gottschalks • 58 department stores and 3 specialty apparel stores in 6 states (California, Idaho, Washington, Oregon, Nevada, and Alaska)• Boscov’s • 41 stores in 6 states (Pennsylvania, New Jersey, Maryland, Delaware, New York and Ohio)
  12. 12. Losing a favorite store can leave a shopper lost • Consumers may wonder where to find their favorite brands, fits, or styles • Customers may gravitate toward new brands if they cannot find their favorites in their old brands • Despite a higher degree of sophistication in modern shoppers, people still gravitate toward the familiar and comfortable • Shoppers who migrate to another store will often migrate to the brands carried by that store if they cannot find their favorite brands or preferred fits there
  13. 13. Impact of Closures• Regional retailers are an integral part of the retail landscape and customers often have a high degree of loyalty• Finding nearby stores that carry the customer’s preferred size and fit will make the transition to another retailer less taxing for the customer and facilitate his continuing brand loyalty• LS&CO needed to find out how many stores the other retailers had in close proximity to the closing retailer’s stores and what kind of synergy existed in the LS&CO fits and styles sold by each• To facilitate a smoother transition for consumers, LS&CO would need to work with retailers who have stores near the closing stores - to ensure they stock the sizes and fits that customers of the closing retailer prefer
  14. 14. Identify Contingency Stores for Closing Retailers• Specify a trade area size (e.g., 5 miles) that will keep alternate stores within the customer’s shopping pattern• Contingency stores identified using the geocoding, trade area, and spatial match tools • National Chain #3 and Major Department Store would be excluded because they’re outside the trade area • Other stores (e.g., specialty stores and value retailers) would be filtered out due to insufficient synergy in product offerings• Compare volumes, styles, proximities, demographics, prices, and consumer attitudes to identify which retailers may be able to best attract and handle customers from the closing retailer and quantify the potential business
  15. 15. Identify and Quantify the Capture Potential Stores in Percent Potential Total Brand Total Styles RtC Trade Customer Units Percent Retailer Units Sold Stores Sold Areas Swtich Increase Growth Retailer to Close 1,945,008 468 16 432 National Chain #1 2,104,551 591 18 281 60% 700,702 33% National Chain #2 2,633,658 654 12 226 60% 563,554 21% National Chain #3 1,731,417 529 11 184 60% 458,822 26% Major Dept. Store 1,869,114 403 21 193 40% 320,843 17% Value Retailer 0 642 0 293 40% 487,083
  16. 16. Next Steps in Contingency Plan• To ensure that the sizes, fits, and styles sold at the closing retailer are available at the targeted retailer’s stores • Identify sizes, fits, and styles that will need to be added to the target retailer’s product mix at the store level • Develop placards and instructions for the product displays to let migrating customers know their favorite fits and styles are available and make them easy to find • Pull demographics to understand potential differences in target stores and closing stores• Supply Chain and Logistics will need to know what sizes, fits, and styles may need to be shipped, in what quantity, and where• Work with targeted retailers to implement these steps
  17. 17. Thank You!