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Coca Cola

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Coca Cola

  1. 1. Shopper Insights Market Evaluation Pricing & Promotion Analysis Financial Analysis Category Insights Space Management Efficient Assortment Advanced Merchandising FMI May 6-8, 2007
  2. 2. A Number Of Forces, Trends, and Pressures Are Affecting Shopper Behavior Source: The World According to Shoppers, 2004 As consumers grow more time-starved, we are seeing changes in their preferences and behaviors <ul><li>Almost two thirds of consumers do not feel there is enough time in the day to meet all their commitments, with 36% feeling strongly that this is true.* </li></ul><ul><li>Americans are spending more than three times as much time sitting in traffic than they did 20 years ago. The average delay per person per year is 36 hours now vs. 11 hours in 1982.** </li></ul>*Source: Mintel/TechnoMetrica **Source: Texas Transportation Institute, Urban Mobility Study 2001 Shopper Insights
  3. 3. Not Important Important Source: Meyers Research and MVI, August 2004 Important considerations for shoppers when deciding where to shop How are these lifestyle changes affecting the shopper’s behavior? “ Shop-Ability” Impacts Where Consumers Decide to Shop First to offer new products Store brand/private label items Quality name brand products Best selection of products for me Special deals or promotions Convenient location Broad product assortment Easy to shop Fast checkout Products always in stock Good customer service Shopper Insights
  4. 4. <ul><li>60% of supermarket purchase decisions are completely unplanned </li></ul><ul><ul><li>(i.e. category not in consideration set in advance of trip) </li></ul></ul>Higher Shop-ability Greater Potential to Drive Unplanned Purchases = Shopable stores are better positioned to capture unplanned purchases Source:POPAI Consumer Buying Habits Study, MVI Shop-ability = “Anything that enables the shopper to make a faster, easier, better decision” Shopper Insights
  5. 5. Consumer Pressures are Forcing Shopper Needs to Evolve Evolving shopper need states… Trends driving shopping patterns among consumers… Care for Family Smart budget shopping Efficient stock-up Discovery Bargain Hunting Specific Item Reluctance Grab & Go Immediate Consumption Care for Family Money Time Personal <ul><ul><li>Savings (good price) Important </li></ul></ul><ul><ul><li>Store Hopping is Common </li></ul></ul><ul><ul><li>Many are Paycheck-driven </li></ul></ul><ul><ul><li>One-stop Shopping </li></ul></ul><ul><ul><li>Less Tolerant of Delays </li></ul></ul><ul><ul><li>Fast Checkout is a Must </li></ul></ul><ul><ul><li>Personal Indulgences </li></ul></ul><ul><ul><li>“ Take Care of Me” </li></ul></ul><ul><ul><li>Like/Dislike Shopping </li></ul></ul><ul><ul><li>More Focus on Family </li></ul></ul><ul><ul><li>Trust Matters </li></ul></ul><ul><ul><li>Shopping Provides a Connection Point </li></ul></ul>Fill-In Quick Mission Traditional Shopping Need States 27% 16% 18% 9% 10% 9% 4% 5% 2% % of Grocery Spend Source: “The World According to Shoppers” Advanced Shopper Insights Stock-up Shopper Insights
  6. 6. Need States – Large Dollar Rings $110 Average spending per shopping trip 19% Percentage of grocery shopping trips Care for Family Driven to do the best they can for their families “ I buy what people ask for and what I think will please them, but I always make a decision that ensures it’s good for them.” Efficient Stock-Up Laying in supplies to minimize the number of times they have to go to the store “ I don’t like to grocery shop, so on my major trips, I buy everything I can $95 13% Smart Budget- Shopping Want to do the right thing for the family, but saving money is important in their decisions “ I’m laying in supplies for the long term. I want the store to make it easy for me to find savings.” $93 15% Discovery Explorers hoping to find something new $90 7% “ I like to browse during my grocery shopping trips. Every trip is a little different. I look for new ideas, new recipes, new foods—& non-grocery products like clothes.” Source: “The World According to Shoppers” Shopper Insights
  7. 7. Need States – Medium Dollar Rings $57 13% $60 11% $58 8% Bargain-Hunting Among Stores Specific Item Reluctance “ I just don’t want to be here. I’d rather have somebody else do my shopping or go online.” Focus first and foremost on one or two urgently needed items “ I need something right away; a specific food, ingredient, prescription medicine, or alcoholic beverage. If it’s not on the shelf, I’m likely to go to the next store.” Don’t want to grocery shop and seek as little involvement as possible Look for tactical bargains on specific items as opposed to overall savings “ I take pride in what I do. I like to tell my friends about the deals I find.” Advanced Shopper Insights Source: “The World According to Shoppers” Average spending per shopping trip Percentage of grocery shopping trips Shopper Insights
  8. 8. Need States – Small Dollar Rings Small-Basket Grab & Go Want to get in, grab a short list of items, and get out in a hurry “ Bread, milk, bananas, and beer. In and out in 10-minutes. That’s what I’m here for.” $41 Average spending per shopping trip 9% Percentage of grocery shopping trips Immediate Consumption “ I’m thirsty, I’m hungry, or I need cigarettes.” Seek to satisfy a craving $32 5% Source: “The World According to Shoppers” Shopper Insights
  9. 9. Two Need States Indexing High for Non-Alcoholic Beverages (%) = Frequency of purchase (#) = Frequency of purchases in need state/avg. frequency of purchases across all need states. Source: “The World According to Shoppers” $32 Average spending per shopping trip 5% Percentage of grocery shopping trips $110 19% Care for Family Immediate Consumption Fresh prepared food (162) Cigarettes (143) Magazines (113) Imported cheese (157) Fresh fish (163) Refrigerated prepared food (158) Fresh baked goods (152) Non-alcoholic beverage (152) High Indexing Products Snacks/candy/gum (39%) Non-alcoholic beverage (26%) Dairy (26%) Produce (22%) Frozen Food (21%) Dairy (72%) Produce (70%) Packaged food (66%) Frozen food (64%) Fresh meat (60%) Top 5 Categories Purchased Shopper Insights
  10. 10. 8 Beverage Categories 40 Retail Customers 7 Channels 50 DMAs across the U.S. Methodology Size One of the largest surveys we have ever conducted Breadth Unprecedented cross channel view Depth Deep view of customers never done before 60,000 online respondents, 1,200 in-store interviews 115,000+ shopping occasions Shopper Insights
  11. 11. Connecting with the Shoppers’ Needs and Motivation helps Builds Loyalty and Sales It all begins with the NEEDS of the SHOPPER CONSUMPTION Grocery, Clubs, Supercenters, Drug, CR, Mass; Value PURCHASE CHOICE SHOPPING EXPERIENCE OCCASION BASED CHANNEL CHOICE SHOPPING NEED Shopper Insights
  12. 12. Cleanliness, Selection and Convenience are Very Important in Store Choice Cleanliness and neatness of the store Source: Landmark Study, October 2005 Is close to where I live or work Freshness of produce and meats Does not run out of stock of products I want 38% 40% 22% 20% Source: Landmark Shopper Shopper Insights
  13. 13. Health & Wellness Focus is critical Across a Variety of Areas Q55. For each statement please indicate how much you agree or disagree that the statement describes you and your household. Source: Landmark Shopper Study, October 2005 = over index 120+ = under index of at least 80 25% of Shoppers are Extremely Mindful of Health & Wellness when making choices of foods, beverages, and level of physical activity Shopper Insights
  14. 14. Shoppers are Pressed for Time across all shopping segments Supermarkets have the opportunity to satisfy time starved grocery shoppers by ensuring high household penetration and high purchase frequency products are in stock on shelf and display and these categories are easy to shop. Q55. For each statement please indicate how much you agree or disagree that the statement describes you and your household. Source: Landmark Shopper Study, October 2005 = over index 120+ = under index of at least 80 Shopper Insights
  15. 15. The Grocery Channel Satisfies a Variety of Functional Needs for Shoppers Q27. What needs were you trying to satisfy when you went to [store] on this occasion? Source: Landmark Shopper Study, October 2005 = over index 120+ = under index of at least 80 Shopper Insights
  16. 16. Beverages are Staples on the Heavy Basket Shopper Trips Q33a: Which of the following types of non-alcoholic beverages did you buy on this shopping trip Source: Landmark Shopper Study, October 2005 <ul><ul><li>Light Grocery Trip = $1 to $40 (roughly 50% of Grocery trips) </li></ul></ul><ul><ul><li>Medium Grocery Trip = $41 to $84 (roughly 30% of Grocery trips) </li></ul></ul><ul><ul><li>Heavy Grocery Trip = $85 and higher (roughly 20% of Grocery trips) </li></ul></ul>= over index 120+ = under index of at least 80 225 125 50 Yogurt Drink 175 100 50 RTD Tea (not hot) 183 100 50 Sports Drinks or Fitness Water Heavy Grocery Trips Medium Grocery Trips Light Grocery Trips Incidence Index for Beverage Purchases on Light, Medium and Heavy Shopping Trips 36 73 142 No Beverages 131 113 79 Any Beverage 300 200 100 Meal Replacement Beverages 250 150 50 RTD Coffee (not hot) 250 150 50 Energy Drinks 154 108 69 Flavored or Fortified Milk or Milk Drink 194 125 56 Bottled Water or Flavored Water 178 113 61 Juices, Juice drinks, Fruit Smoothie 156 116 67 Carbonated Soft Drinks or Sodas Shopper Insights
  17. 17. <ul><li>Convenience Retail Shopper Behavior Study </li></ul><ul><li>Display Effectiveness Studies </li></ul><ul><li>Display Mix Study – Supermarkets </li></ul><ul><li>CSD Ad Feature Optimization Analysis </li></ul><ul><li>Out-of-Stock Study Supermarkets </li></ul><ul><li>Beverage Consumption Purchase Cycle Learnings </li></ul>Coca-Cola leads in Insights and Research used to Understand the Shopper, Industry and Category <ul><li>Home Meal Replacement Study </li></ul><ul><li>Cross Category Shelf Space Comparison </li></ul><ul><li>Role of the CSD Category in Supermarkets </li></ul><ul><li>Beverage Market Structure Study </li></ul><ul><li>Coca-Cola Retailing Research Council Studies </li></ul><ul><li>ACN Channel Blurring </li></ul><ul><li>Grocery SuperStudy </li></ul><ul><li>Convenience SuperStudy </li></ul><ul><li>Center-Store Re-invention </li></ul><ul><li>Store Optimization Research </li></ul><ul><li>Landmark Study </li></ul><ul><li>RFID Shopper Insights </li></ul><ul><li>Shared Ad Analysis </li></ul>Shopper Insights
  18. 18. Insights to Action Shopper Insights Actions Insights Retailer focus on “shop-ability” will help attract and maintain loyal shoppers. As consumers grow more time-starved, we are seeing changes in their preferences and behaviors. Utilize in-store messaging to help consumers effectively navigate categories and store. Cleanliness, Selection and Convenience are very important in Store Choice. Shoppers feel strongly that there is not enough time in the day to meet all their commitments. Emphasize perimeter selections and fast checkouts. Shopper Insights
  19. 19. Shopper Insights Market Evaluation Pricing & Promotion Analysis Financial Analysis Category Insights Space Management Efficient Assortment Advanced Merchandising
  20. 20. Clear Segments CSD MILK BEER JUICE POWDERED DRINKS INSTANT COFFEE TEA Treat, Fun Nutrition Relax Perk Up Social Reward Cheap for Kids Breakfast 1984 Now - Many New “Categories” and Further Segmenting BEER Spirits Diet MILK Reg. JUICE Juice Drinks Bottled Water Flavored Milk Energy Drinks Sports D ri nks Mixers Tap Water Purified Water INSTANT COFFEE Herbal Teas Café Coffee Flavored Coffees 2007 Flavored Sparkling Water Diet Flavored Mineral Water Yogurt Drinks Premium Wine TEA Fruit Teas Fresh Coffee CSD Regular Imported Light Imported Light Soy Drinks Powdered Drinks 2% Skim Consumers Have More Beverage Choices Than Ever Before Category Insights
  21. 21. Share Of Stomach – Total U.S. Reflects consumption rates and importance of categories Source: Beverage Digest Fact Book 2007, BD/Maxwell CSD 27.9 (-.4) Tea 3.9 (+.1) Juices 4.4 (-.3) Bottled Water 11.5 (+.8) Coffee 8.9 (-.1) Milk 10.7 (-.3) Beer 11.9 (+.2) Sports Drinks / Energy 2.6 (+.3) Wine 1.3 (+.1) Tap Water 14.8 (-.5) Share (Share chg. vs. Prior) 155 Total Annual Gallons per Person = 54oz. Per Day Category Insights
  22. 22. CSD 56.5 (-0.7%) The Size and Value of the Nonalcoholic Beverage Category in all measured channels is growing >$2.3B +6.0% Category Value (Dollar) Share / Dollar % Change Source: Nielsen All Measured Channels Total US 12 months ending 3/31/2007 Sports Drinks 10.0 (+6.8%) Single Serve Water 14.7 (+14.1%) Energy Drinks 8.5 (+30.3%) RTD Tea Bottle/Can 4.3 (+19.6%) RTD Coffee 1.5 (+14.4%) Juice & Drinks 4.4 (-1.4%) Total Nonalcoholic Beverages = $39B, of which $22B is CSD Category Insights
  23. 23. The Beverage Category is very Important: More Consumers say they drink CSDs Daily or Weekly than any other non-tap Water Beverage Source: USA BevCAT 2005 Survey Beverage Category Consumption Frequency Category Insights
  24. 24. Carbonated Soft Drinks Total U.S. Corporate Share and Brand Rankings Retail / Fountain / Vending Channels Source: Beverage Digest Fact Book 2007 Includes Retail, Fountain and Vending Channels Coca-Cola Pepsi-Cola Dr Pepper / Cadbury Cott National Beverage All Other Corporate Share Category Insights
  25. 25. The Soft Drink Category is very important to Shoppers: In addition to high buying rate, Soft Drinks Purchase Frequency ranks second only to Bread <ul><li>Annually, shoppers spend 51% more dollars on Soft Drinks than on any other top 10 center store category - 28% of the Shopper trips include Soft Drinks. </li></ul><ul><li>Bread is the only center store category that surpasses Soft Drinks purchase frequency. </li></ul>$41.38 $29.35 $28.97 $46.71 $72.17 $26.85 $29.54 $22.11 $26.18 $58.01 21 7 9 8 5 7 14 18 8 10 7 Soft Drinks Bread & Baked Goods Cookies Crackers RTE Cereal Snacks Candy Shelf Stable Juice Soup Bottled Water Coffee Buying Rate ($) Purchase Frequency $109.65 Buying Rate = Annual Category $ per Household. Purchase Frequency = Average number of shopping trips (purchase occasions) on which the Category was purchased. Penetration = % of Households Buying the Category at least once per year in any outlet. Incidence = % of ALL trips made by all shoppers that include a purchase of the item/category Source: Nielsen Homescan TOTAL U.S. - TOTAL GROCERY $2MM- 52 WEEKS ENDING 12/31/06 Incidence: HH Penetration: Category Insights
  26. 26. Nonalcoholic Beverage Categories can be grouped into four Consumer Need States Performance Beverages Functional CSDs and Refreshing Alternatives Convenient Refreshment “ Enjoyable Refreshment” CSDs “ Healthy Refreshment” Fruit Drinks (<10% Juice) “ Versatile Refreshment” RTD Teas “ Refreshing Alternatives” Shelf Stable Juices & Drinks ( > 10% Juice) Sports Drinks Sports Hydration Energy Drinks Water Hydration On-the-Go Single-Serve Water: At Home Gallons Enhanced Sparkling Purified Spring Imported Juice/Drink Shelf Stable Health & Wellness Youth Family Adult Shelf Stable Juices & Drinks (>10% Juice) Category Insights
  27. 27. Clear Organization and Messaging helps Drive Shopper Conversion within the Need States CSDs Water Performance Beverages Convenient Refreshment Hydration Functional “ Navigating the store and simply finding the desired product easily becomes a more important consideration” - MVI Sports Drinks, Sports Hydration, and Energy Drinks Purified, Spring, Imported, and Enhanced Sparkling Juice / Juice Drink Health & Wellness Shelf Stable Juices & Drinks (>10% Juice) Category Insights
  28. 28. Enjoyment Today Feel Good Today Feel Good Tomorrow Hunger & Digestion Sensory Pleasure & Food Enhancement Having a Good Time Confidence & Individuality Energy / Stimulation Active Replenishment Mental Renewal Health, Beauty & Nutrition Comfort & Relaxation Routine Refreshment Power Opportunity White Space Top Coca-Cola Brands in each need state Coca-Cola’s Innovation Strategy Is Focused On Meeting Consumption Need States Of Your Consumers Category Insights
  29. 29. Insights to Action Category Insights Actions Insights Armed with Advanced Shopper Insights, Retailers can evolve with Consumers. Consumer need states and occasions drive beverage tastes, preferences and consumption. Non-Alcoholic Beverages can be organized into Consumer Need States. Each beverage need state is unique, serving different consumer needs. Clear messaging provides navigation, information and drives Shopper Conversion. Consumer needs are evolving with more beverage choices than ever before. Category Insights
  30. 30. Shopper Insights Market Evaluation Pricing & Promotion Analysis Financial Analysis Category Insights Space Management Efficient Assortment Advanced Merchandising
  31. 31. As Many Retailers Focus On Perimeter Categories In Their Efforts To Differentiate, Total Labor Costs Will Increase Even More <ul><li>“ The total dollar value of labor costs for the perimeter can nearly triple those of center store items, driving down margins.”* </li></ul>*Source: 2005 GMA Center of Store Study; True Profit from WBC SuperStudy True Profit = Adjusted Gross Profit - Activity Based Costing Financial Analysis
  32. 32. The Coca-Cola System Recognizes that Getting Center Store & Non-Alcoholic Beverages Right is Essential <ul><li>3 of top 10 center store categories are Non-Alcoholic Beverages </li></ul>Source: Willard Bishop Consulting 2005 Supermarket Retailer Survey & WBC SuperStudy Adj. Gross Profit $ per Store per Week $63,983 Center Store Perimeter 65% 35% $118,299 Retail Executives say: “There are too many sales at take; perishables can’t grow fast enough to overcome center-store losses” Total Retail Dollars (Billions) Top Center Store Dollar Categories Source: Nielsen Strategic Planner; Supermarkets $2mm+, 52 WE 9/9/06 Financial Analysis
  33. 33. Soft Drinks are an Important Component to “Center Store” Profitability $3,449 $3,539 $2,560 $1,896 $2,314 $1,839 $1,754 $1,472 $1,469 $1,081 Based on Weekly Sales, Soft Drinks rank second in Adjusted Gross Profit. Source: Bishop Consulting (3) Chain Average Super Study – (Adjusted Gross Profit = GP – Trade & Terms) Soft Drinks Bread Cookies & Crackers RTE Cereal Salty Snacks Candy Shelf Stable Juice Soup Bottled Water Coffee Top Ten Center Store Categories Center Store Adjusted Gross Profit Adjusted Gross Profit= Gross Profit + Terms + Trade Dollars Financial Analysis
  34. 34. Soft Drinks are One of the Most Productive Categories in “Center Store” Source:2005 WBC Super Study: *AGMROII:Adjusted Gross Profit (Gross Profit+Terms+Trade dollars) / Avg Inventory $ on Hand (Adjusted Gross Margin Return on Inventory Investment) $11.92 $12.59 $17.41 $20.82 $25.81 $27.66 $34.30 $62.48 $63.67 $72.85 Coffee Candy Cookies & crackers Soup Ready-To-Eat Cereals Shelf stable juice Salty snacks Soft Drinks Bottled water Bread AGMROII Top Ten $ Categories Financial Analysis
  35. 35. Insights to Action Financial Analysis Actions Insights Add value to make center store easier to shop with relevant product information and convenience features. Evaluate store real estate dedicated to products with high Gross Margin Return on Investment. Leverage the strength of Soft Drinks to drive traffic to Center Store. “ Center Store” contributes significantly to results and is critical to Supermarket Profit. Source:2005 WBC Super Study: Soft Drinks are an Important Component to “Center Store” Profitability. “ Center Store” departments deliver 65% of Adj. Gross Profit. Financial Analysis
  36. 36. Shopper Insights Market Evaluation Pricing & Promotion Analysis Financial Analysis Category Insights Space Management Efficient Assortment Advanced Merchandising
  37. 37. Soft Drink Pricing and Ad Presence Play a Significant Role in the Category’s Ability to Drive Traffic <ul><li>Soft Drink brand strength is a much stronger draw for shoppers than for other categories. </li></ul>Disproportionately important to shoppers to have Soft Drinks in ad Q.1c: Still thinking about your next trip to purchase grocery items, which of the following are reasons you will go to the store for each of the items listed? Source: 2005 Shopper Pricing Perception Study Top Reasons Why Shoppers Say Specific Categories Draw Them To their Supermarket % of Shoppers Need to replenish home stock To get the best price A family member asked for a specific item Saw item on sale in a newspaper/flyer Soft Drinks Dairy (Milk, Eggs, Cheese) Fresh Meat/Fish Produce (Fresh Fruit and vegetables) 94 39 32 23 96 27 3 14 88 40 2 14 83 18 17 2 Pricing & Promotion Analysis
  38. 38. Promotional Planning Modeler 12pk Cans Retail Price Package Planning Tool linked to Sales Forecasting System for developing a Retailer Promotional Plan by Package versus Prior Data Source: KAEP – Key Account Event Planning Pricing & Promotion Analysis
  39. 39. Nielsen Based Elasticity Model Retail Price Package Planning Tool for Evaluating and Analyzing Elasticity over time Data Source: Nielsen Pricing & Promotion Analysis
  40. 40. Nielsen Volume Throw Model Retail Price Package Planning Tool for Analyzing Volume lifts by price point across time Data Source: Nielsen Pricing & Promotion Analysis
  41. 41. Expanding Category Sales and Profits are mutually beneficial It is not about dividing the pie between . . . It is about growing the total pie Zero Sum Game Win – Win Game Manufacturer Retailer Retailer Manufacturer Pricing & Promotion Analysis
  42. 42. Together We Can Improve Category Profitability, even in a rising cost environment Traffic Driving Packages Profit Packages Creating Value for the Retailer Our Packages Play Various Category Roles in Balancing Traffic Building and Profit Generation Pricing & Promotion Analysis
  43. 43. Insights to Action Pricing & Promotion Analysis Actions Insights Utilize Soft Drinks to maintain and grow trips, as well as increase basket size. Soft Drink pricing is an important factor in driving shoppers to the store. Set pricing and profitability goals and measure performance against them. 76% of shoppers believe mid priced Soft Drinks are reflective of total store pricing. Total Basket Price Image is Closely Aligned with Soft Drink Price Image. Use tools like RPA to jointly develop Profitable Retail Price Package Plans. Pricing & Promotion Analysis
  44. 44. Shopper Insights Market Evaluation Pricing & Promotion Analysis Financial Analysis Category Insights Space Management Efficient Assortment Advanced Merchandising
  45. 45. The Shopper Segmented Merchandising Opportunity Shopper Segmented Merchandising: Delivering beverage solutions matched to each store’s DNA Store A’s “Shopper DNA” Each store serves a different mix of Shoppers, Occasions & Needs Each store has a unique DNA Market Evaluation
  46. 46. The Shopper Landscape Is Changing <ul><li>The shopper base is fragmenting </li></ul>U.S. Census and BLS, 2003; Yankelovich Monitor, 2005; *GMA Study – Reducing Out of Stocks in the Grocery Channel, 2002 . . . of U.S. households may now be counted as “Traditional” families – a married couple with at least one child – vs. 44.3% in 1960 <ul><ul><li>. . . of women are now in the workforce </li></ul></ul><ul><ul><li>. . .first year that Hispanics will control more disposable income than any other U.S. minority group. </li></ul></ul>Only 60% 2007 <ul><li>Given the competitive environment & total shopping trips are down, each retailer has fewer opportunities to reach the shopper, so merchandising needs to match your shoppers when they are in your store </li></ul><ul><li>Fewer Out-Of-Stocks is one of the top 3 items identified by shoppers to improve the shopping experience* </li></ul>Market Evaluation
  47. 47. What Is Shopper Segmentation? <ul><li>Instead of creating one solution for millions of shoppers, develop smaller shopper segments and tailor solutions to these segments </li></ul><ul><ul><li>For Beverages, segmentation drives assortment on Shelf, Displays and Coolers: Right Brand, Right Package, Right Price, Right Occasion in the Right Store </li></ul></ul>Your Shopper Base Clusters Impact At Store Level Market Evaluation
  48. 48. Shopper Segmented Merchandising Methodology 5 0 1 1 Store 4 7 12 7 7 Store 5 7 2 13 4 Store. . . 9 3 14 2 Store 6 15 2 1 Segment … 0 6 5 Segment 3 3 6 5 Segment 2 3 Store 3 12 Store 2 10 Store 1 Segment 1 110K+ Households . .clustered into 59 Beverage Purchase Segments 90,000 stores are scored on 59 Beverage Segments Stores with similar scores are grouped together to form 5 Store Clusters Water Sports Drinks Segments are based on beverage Purchase Drivers and demographics Scoring is based on demographic fit between store shoppers and beverage Purchase Drivers Dynamic Clustering: Grouping together stores with similar beverage opportunities Nielsen panel households Beverage Segments SS Juice Energy Tea Beverage Segments 90,000 stores in Spectra database: Grocery, Mass, Club, Drug, and Dollar formats 2 3 4 5 59 SSD 90,000 store profiles Utilizing Nielsen’s new Dynamic Clustering Model , Shopper Purchase Segments are mapped to Store Clusters to drive store-level changes Store level changes Market Evaluation
  49. 49. What Are The Coca-Cola Beverage Clusters? Source: Nielsen Homescan Panel; AO Beverages includes RTD Coffee, Dairy Alternatives, Vegetable Drinks, Powdered Soft Drinks, Drinkable Yogurts, Baby Juice, Non-Carbonated Mixers and Meal Replacement beverages Rural <ul><li>Late adopters of new beverage categories </li></ul><ul><li>Sparkling Soft Drinks 53% of Beverages—62% of Sparkling is Regular </li></ul><ul><li>High Citrus and 24 pack cans </li></ul>Mainstream <ul><li>Middle-of-the road beverage preferences </li></ul><ul><li>Sparkling Soft Drinks 46% of Beverages—60% of Sparkling is Regular </li></ul><ul><li>Average brands and packages </li></ul>Urban Upscale <ul><li>Early adopters of new beverage brands & categories </li></ul><ul><li>Sparkling Soft Drinks 37% of Beverages, 14% is Juice/Juice Drinks </li></ul><ul><li>High Ginger Ale and 2 liter </li></ul>Suburban Upscale <ul><li>Strong users of all beverage categories </li></ul><ul><li>Sparkling Soft Drinks 42% of Beverages—46% of Sparkling is Diet </li></ul><ul><li>High Diet Cola and Tea </li></ul>Urban Ethnic <ul><li>Strong users of beverages with flavor </li></ul><ul><li>Sparkling Soft Drinks 42% of Beverages, 65% of Sparkling is Regular </li></ul><ul><li>High Lemon-Lime and Orange </li></ul>Share of Non-Alcoholic Beverage Retail $ Reg: 60% Diet: 40% Reg: 54% Diet: 46% Reg: 59% Diet: 41% Reg: 65% Diet: 35% Reg: 62% Diet: 38% Market Evaluation
  50. 50. How Can Beverage Assortment Differ by Segment? Deliver “Store Level” Merchandising and Marketing Solutions C luster 3: Suburban Upscale C luster 5: Urban Flavor Right Brands Right Packages Right Occasions Urgent Items HH Stock-up Speedy Fill-in JIT Meals HH Stock-up Everyday Savings Right Brands Right Packages Right Occasions Market Evaluation
  51. 51. Beverage Emphasis by Cluster In Coca-Cola Section Flavor Emphasis Rural Diet Sparkling Emphasis Regular Sparkling Emphasis 13% 11% 17% 28% 31% Urban Ethnic Urban Upscale Suburban Upscale Mainstream % of Stores Market Evaluation
  52. 52. Applying Shopper Segmented Merchandising At Store Level <ul><li>Process: </li></ul><ul><li>Map beverage clusters to your shopper/store segments </li></ul><ul><li>Calibrate store list to ensure each store is mapped to the right cluster </li></ul><ul><li>Survey each store to collect correct Coca-Cola section fixture, cold equipment & rack information and confirm store cluster classification </li></ul><ul><li>Start assortment work with review of macro merchandising guiding principles for relevant clusters </li></ul><ul><li>Develop shelf planogram for each store utilizing store level sales data & merchandising guiding principles </li></ul><ul><li>Develop Marketing & Messaging that connects with your Shoppers to drive Profitable Growth, in Beverages and Cross Category </li></ul>Market Evaluation
  53. 53. Coca-Cola Experience Shows Shopper Segmented Merchandising Drives Results <ul><li>Proven success in Latin America: +8.5% in Coca-Cola Sales </li></ul><ul><ul><li>SKU rationalization by cluster </li></ul></ul><ul><ul><li>New SKU launches to meet shopper needs </li></ul></ul><ul><ul><li>Pricing decisions </li></ul></ul><ul><ul><li>Planogram resets by shopper cluster </li></ul></ul><ul><li>Initial test results in the U.S. very positive </li></ul><ul><ul><li>Tienda (Hispanic) small store program in LA: +23% sales growth </li></ul></ul><ul><ul><li>Denver market large format resets based on shopper clusters: +5.8% sales growth </li></ul></ul><ul><ul><li>Shopper Segmentation of Enviga brand launch: Target key shopper segments and stores for the brand introduction </li></ul></ul>Launched New Package to Target Consumer +10.6% ! Activated Convenience Package +13.1% ! Market Evaluation
  54. 54. Insights to Action Market Evaluation Actions Insights Convert Shopper knowledge into information in action, information focused on results (i.e., Store tailored planograms to maximize sales and reduce out of stocks). Each store has a unique DNA (Shoppers, Occasions & Needs). Extensive shopper research & insights drive store level assortment changes. Segment shoppers based on their beverage purchases with five actionable store clusters. Segment shoppers in a way that would lead to meaningful & actionable changes at a store level. Develop smaller shopper segments and tailor solutions to these segments. Implement merchandising solutions that reflect these differences. Market Evaluation
  55. 55. Shopper Insights Market Evaluation Pricing & Promotion Analysis Financial Analysis Category Insights Space Management Efficient Assortment Advanced Merchandising
  56. 56. Supermarket visits are focused on today’s needs Source: 2005 Coca-Cola RFID PathTracker Study Note: Visuals do not represent only traffic pattern by visit segment. Visuals represent examples of types of visits. 20 Minute+ Trips (42% of all visits) 88% of these trips visit more than 1/4 of the store 58% of Trips Are Less Than 20 Minutes 10-20 Minute Trips (21% of all visits) 28% of these trips visit more than 1/4 of the store <10 Minute Trips (37% of all visits) 1% of these trips visit more than 1/4 of the Store Advanced Merchandising
  57. 57. <ul><li>Rear endcaps receive more shopper traffic than front endcaps </li></ul><ul><li>Products that are in the gondola will receive more shopper exposure if they are positioned towards the back </li></ul>Traffic flow in most aisles (including CSD aisle) tends to run back to front, with shoppers buying mostly on their left. Implication: Shoppers spend a significant amount of time in the back perimeter, shopping aisles from back to front. Source: 2005 Supermarket RFID Study Shoppers shop in a dominant, counter-clockwise pattern, shopping aisles from back to front Advanced Merchandising
  58. 58. <ul><li>Hot Spots: Mostly on the perimeter and a few center of store aisles leading to the checkouts: produce, meat, dairy and frozen food </li></ul><ul><li>Dead Zones: Much of the center of store has light traffic </li></ul>Shopper Density Map Implication: The front and first quadrant of the store offer the greatest number of shopper exposures for messaging & displays High Density Low Density The earliest part of the trip provides exposure to the most shoppers Source: 2005 Supermarket RFID Study Advanced Merchandising
  59. 59. Early Progression Shoppers Total Store Shoppers Quicker Decision Shoppers CSD In-store merchandising efforts should align with shopper behavior and motivations <ul><li>Early Progression Shoppers: </li></ul><ul><li>Generate Excitement </li></ul><ul><li>Message to the shopper’s needs. </li></ul><ul><li>Cross-promote with center store or higher margin perimeter categories. </li></ul><ul><li>Showcase new products and variety (brand & pkg.). </li></ul><ul><li>Total Store Shoppers: </li></ul><ul><ul><li>Cross-promote (e.g. tie-in center store categories). </li></ul></ul><ul><ul><li>Drive new product awareness. </li></ul></ul><ul><ul><li>Showcase variety (brand & pkg.). </li></ul></ul><ul><ul><li>Message to the shopper’s needs. </li></ul></ul><ul><ul><li>Improve shopper navigation. </li></ul></ul><ul><ul><li>Provide product information. </li></ul></ul><ul><li>Quicker Decision Shoppers: </li></ul><ul><ul><li>Merchandise high frequency items to make them easy to find and purchase. </li></ul></ul><ul><ul><li>Cross-merchandise items frequently purchased in combination. </li></ul></ul><ul><ul><li>Communicate promotional information (e.g. hot pricing) to capture unplanned purchases. </li></ul></ul><ul><ul><li>Inspire the impulse purchase. </li></ul></ul><ul><ul><li>Emphasize convenience. </li></ul></ul>Advanced Merchandising
  60. 60. Zone 1 : Early Progression Shoppers <ul><li>Illustrative Opportunities: </li></ul><ul><li>Generate excitement & awareness </li></ul><ul><ul><li>Key promotions </li></ul></ul><ul><ul><li>“ New news” </li></ul></ul><ul><li>Engage the shopper early </li></ul><ul><li>Characteristics of location: </li></ul><ul><ul><li>Shopper Traffic: Very High </li></ul></ul><ul><ul><li>Decision-Making Time: None-Fast </li></ul></ul><ul><ul><li>Shopper Trip Types: Quick-Long </li></ul></ul><ul><ul><li>Stage in Trip Progression: Very Early </li></ul></ul>Targeting Early Progression Shoppers: Applying Insights to Early Displays Advanced Merchandising
  61. 61. <ul><li>Illustrative Opportunities: </li></ul><ul><li>Message to the shopper’s needs </li></ul><ul><li>Cross-promote with center store or higher margin perimeter categories </li></ul><ul><li>Showcase new products and variety (brand & pkg.) </li></ul><ul><li>Communicate information (e.g. product benefits or details) </li></ul><ul><li>Characteristics of location: </li></ul><ul><ul><li>Shopper Traffic: High </li></ul></ul><ul><ul><li>Decision-Making Time: Slow </li></ul></ul><ul><ul><li>Shopper Trip Types: Medium & Long </li></ul></ul><ul><ul><li>Stage in Trip Progression: Early </li></ul></ul>Targeting Early Progression Shoppers: Applying Insights to Secondary Locations Zone 1 : Early Progression Shoppers Permanent/Semi-Permanent Merchandising Advanced Merchandising
  62. 62. Zone 2 : Quicker Trip Shoppers <ul><li>Characteristics of location: </li></ul><ul><ul><li>Shopper Traffic: High </li></ul></ul><ul><ul><li>Decision-Making Time: Fast </li></ul></ul><ul><ul><li>Shopper Trip Types: Quick-Medium </li></ul></ul><ul><ul><li>Stage in Trip Progression: Late </li></ul></ul><ul><li>Illustrative Opportunities: </li></ul><ul><ul><li>Merchandise high frequency items to make them easy to find and purchase </li></ul></ul><ul><ul><li>Cross-merchandise items frequently purchased in combination </li></ul></ul><ul><ul><li>Communicate promotional information (e.g. hot pricing) to capture unplanned purchases </li></ul></ul><ul><ul><li>Emphasize convenience benefits of packages </li></ul></ul>Connecting with Quicker Decision Shoppers: Applying Insights to Front Endcaps Advanced Merchandising
  63. 63. Zone 2 : Quicker Trip Shoppers Temporary Cooler Shrouds IC3 Call-to-Action Messaging <ul><li>Characteristics of location: </li></ul><ul><ul><li>Shopper Traffic: Very High </li></ul></ul><ul><ul><li>Decision-Making Time: Very Fast </li></ul></ul><ul><ul><li>Shopper Trip Types: Quick - Long </li></ul></ul><ul><ul><li>Stage in Trip Progression: Very Late </li></ul></ul><ul><li>Illustrative Opportunities: </li></ul><ul><ul><li>Inspire the impulse purchase with call-to-action messaging & bold imagery </li></ul></ul><ul><ul><li>Stimulate trial of new products with trial-sized packages </li></ul></ul><ul><ul><li>Merchandise to her needs first </li></ul></ul>Connecting with Quicker Decision Shoppers: Applying Insights to the Checkout Advanced Merchandising
  64. 64. Zone 3 : Total Store Shoppers <ul><li>Characteristics of location: </li></ul><ul><ul><li>Shopper Traffic: High - Medium </li></ul></ul><ul><ul><li>Decision-Making Time: Med. Slow </li></ul></ul><ul><ul><li>Shopper Trip Types: Medium - Long </li></ul></ul><ul><ul><li>Stage in Trip Progression: Early - Late Middle </li></ul></ul>Endcap <ul><li>Illustrative Opportunities: </li></ul><ul><ul><li>Cross-promote (e.g. tie-in center store categories) </li></ul></ul><ul><ul><li>Drive new product awareness </li></ul></ul><ul><ul><li>Showcase variety (brand & pkg.) </li></ul></ul><ul><ul><li>Message to the shopper’s needs </li></ul></ul>Connecting with Total Store Shoppers: Applying Insights to Rear Endcaps Advanced Merchandising
  65. 65. Zone 3 : Total Store Shoppers <ul><li>Characteristics of location: </li></ul><ul><ul><li>Shopper Traffic: Low-Medium </li></ul></ul><ul><ul><li>Decision-Making Time: Med. Slow–Medium </li></ul></ul><ul><ul><li>Shopper Trip Types: Medium-Long </li></ul></ul><ul><ul><li>Stage in Trip Progression: Late Middle-Late </li></ul></ul><ul><li>Illustrative Opportunities: </li></ul><ul><ul><li>Improve shopper navigation </li></ul></ul><ul><ul><li>Provide product information </li></ul></ul><ul><ul><li>Inspire the shopper to purchase (HCM-relevant imagery) </li></ul></ul><ul><ul><li>Connect the shopper with front-end categories (e.g. IC beverages) </li></ul></ul>Beverage Landscape Aisle Messaging Connecting with Total Store Shoppers: Applying Insights to the Center Store Advanced Merchandising
  66. 66. Early Progression Shoppers Total Store Shoppers Quicker Decision Shoppers CSD In-store merchandising efforts should align with shopper behavior and motivations <ul><li>Early Progression Shoppers: </li></ul><ul><li>Generate Excitement </li></ul><ul><li>Message to the shopper’s needs. </li></ul><ul><li>Cross-promote with center store or higher margin perimeter categories. </li></ul><ul><li>Showcase new products and variety (brand & pkg.). </li></ul><ul><li>Total Store Shoppers: </li></ul><ul><ul><li>Cross-promote (e.g. tie-in center store categories). </li></ul></ul><ul><ul><li>Drive new product awareness. </li></ul></ul><ul><ul><li>Showcase variety (brand & pkg.). </li></ul></ul><ul><ul><li>Message to the shopper’s needs. </li></ul></ul><ul><ul><li>Improve shopper navigation. </li></ul></ul><ul><ul><li>Provide product information. </li></ul></ul><ul><li>Quicker Decision Shoppers: </li></ul><ul><ul><li>Merchandise high frequency items to make them easy to find and purchase. </li></ul></ul><ul><ul><li>Cross-merchandise items frequently purchased in combination. </li></ul></ul><ul><ul><li>Communicate promotional information (e.g. hot pricing) to capture unplanned purchases. </li></ul></ul><ul><ul><li>Inspire the impulse purchase. </li></ul></ul><ul><ul><li>Emphasize convenience. </li></ul></ul>Advanced Merchandising
  67. 67. <ul><li>The three most influential factors in a shopper’s purchase decision from a display are: Price, Brand and Variety. </li></ul><ul><li>Two-thirds of shoppers say displays help them to stop and look at different products. </li></ul><ul><li>Shoppers say CSD displays help remind them to shop for that category. </li></ul><ul><li>Carbonated soft drinks are the category shoppers claim to purchase most often when they see it on display. </li></ul><ul><li>Shoppers say that they purchase almost half of the soft drinks they buy from a display. </li></ul>Shoppers frequently purchase categories when seen on display Source: Shopper Display Intercept Study 2006: Integrated Research Associates Advanced Merchandising
  68. 68. Traditional “New Age” Sections are a Hodge-Podge of DSD Items Advanced Merchandising
  69. 69. Redefine Categories Based on Consumer Need States CSDs and Refreshing Alternatives Juice/Drink Shelf Stable Water Performance Beverages Convenient Refreshment Health & Wellness Hydration Functional <ul><li>CREATE A “REFRESHMENT CENTER” CSD's and “New Age” SKU’s meet the Convenient Refreshment Need State and should be grouped together </li></ul><ul><ul><li>Redefine the Antiquated “New Age” Category as “Refreshing Alternatives” to Better Meet Consumers Needs for “Healthy” and “Versatile” Refreshment </li></ul></ul><ul><ul><li>Shelve CSDs (“Enjoyable” Refreshment) on One Side of the Aisle and Refreshing Alternatives across from CSDs when possible </li></ul></ul><ul><ul><li>Move Non Carbs from CSD set to Refreshing Alternatives </li></ul></ul><ul><li>IMPROVE ORGANIZATION OF WATER CATEGORY Group items together that meet the Hydration Benefit Need State </li></ul><ul><ul><li>Move Sports Water (e.g. Propel) from Water Aisle into Performance Beverages </li></ul></ul><ul><ul><li>Reallocate space from declining Gallons to fast growing Single Serve </li></ul></ul><ul><ul><li>Segment the Water aisle by Enhanced, Sparkling, Imports, Purified, Spring and Gallons </li></ul></ul><ul><li>ENHANCE JUICE & JUICE DRINK CATEGORY Group items together that meet the Health and Wellness Need state </li></ul><ul><ul><li>Relocate All Drink Items That Contain 10% or More Juice Content to this Aisle Regardless of Route-to-Market </li></ul></ul><ul><ul><li>Evolve the Consumer Usage Set to Include the Emerging PET Segment Between Aseptics (Youth) and Multi-Serve </li></ul></ul><ul><li>CREATE A “PERFORMANCE BEVERAGE” CATEGORY Functional Benefit Need State has grown in importance and redefining category will help consumers find the products they want and create excitement in the aisle. </li></ul><ul><ul><li>Co-locate All Functional or Performance Beverage Categories Together (Regular Sports Drinks, Sports Hydration, Energy Drinks) </li></ul></ul><ul><ul><li>Shelve Where Sports Drinks Are Currently Located in Your Store </li></ul></ul>Advanced Merchandising
  70. 70. Specific Steps to Reorganize Categories to Better Meet Consumers Needs <ul><li>Create NEW “Performance Beverages” Set </li></ul><ul><ul><li>Move Propel from Water Aisle and create Sports Hydration Segment which includes PowerAde Option </li></ul></ul><ul><ul><li>Move Energy Drinks from New Age to Performance Beverages </li></ul></ul><ul><li>Move High Velocity Single-Serve Items Currently in New Age to Cold Equipment </li></ul><ul><li>Move RTD Coffee from New Age to Coffee Aisle </li></ul><ul><li>Reorganize New Age to Create NEW “Refreshing Alternatives” Section That Includes Fruit Drinks & Teas Previously in CSD Section </li></ul><ul><ul><li><10% Fruit Drinks (Healthy Refreshment) </li></ul></ul><ul><ul><li>RTD Teas (Versatile Refreshment) </li></ul></ul><ul><li>Use Vacated CSD Space for Innovation and Highly Productive SKUs </li></ul>“ Performance Beverages” in Shelf Stable J/D Aisle “ Refreshing Alternatives” in Soft Drink Aisle Cooler Coffee Section Refreshing Alternatives Aseptics S-S MPs & Single Units Multi-Serve Performance Beverages Healthy & Versatile NCBs (Fruit Drinks & RTD Tea) CSDs 2 3 1 5 4 Advanced Merchandising
  71. 71. Performance Beverage Benefits Performance Beverages - Functional Beverages Segment Sports Drinks Sports Hydration Energy Product (s) Consumed during physical activity during the day or during a light to moderate workout Consumed during social or other activities when energy is desired Used as a lower calorie alternative drink with added vitamins and electrolytes during workouts Consumer Benefits Retailer Benefits <ul><li>Improve shop-ability of the aisle </li></ul><ul><li>Sports Drinks, Sports Hydration, Energy: </li></ul><ul><ul><li>Different ingredients </li></ul></ul><ul><ul><li>Align like products </li></ul></ul><ul><li>Improve ‘Center Store’ productivity </li></ul><ul><li>Differentiate versus competition </li></ul><ul><li>Convert shoppers into buyers </li></ul><ul><li>Drive excitement into stores </li></ul><ul><li>Create and define emerging categories </li></ul>Advanced Merchandising
  72. 72. Products Can Then be Grouped Within this Segmentation <ul><li>Refreshing Alternatives </li></ul>Clear segmentation allows the shelf to be organized and easy to shop For My Family (All Ages) 12oz/12pk Cans, Multi-Pack Bottles, 1L-3L For Me (Teens/Adults) Single- Serve and Multi-Serve Bottles Product (s) Segment Teas Fruit Drinks Teas Fruit Drinks Advanced Merchandising
  73. 73. Segmentation and Products in the Water Category <ul><li>Water-Hydration </li></ul>Clear segmentation allows the shelf to be organized and easy to shop Single Serve Multi Serve Segment Enhanced Sparkling Imported Purified Spring Gallons Product (s) Advanced Merchandising
  74. 74. Insights to Action Advanced Merchandising Actions Insights Shoppers spend a significant amount of time in the back perimeter, shopping aisles from back to front. Display new products, Cross-Merchandising category tie-ins, and utilize Promotional messaging . Message to the shopper’s needs and Cross-promote with center store or higher margin perimeter categories. Engage the shopper early - Merchandise high frequency items to make them easy to find and purchase. The First Third of the Supermarket Shopping Trip provides exposure to the most shoppers - Higher Traffic and Slower Shop Times. Shoppers shop in a dominant, counter-clockwise pattern, shopping aisles from back to front. Traditional “New Age” Sections are a Hodge-Podge of DSD Items. Redefine Categories Based on Consumer Need States and Segmentation. Advanced Merchandising
  75. 75. Shopper Insights Market Evaluation Pricing & Promotion Analysis Financial Analysis Category Insights Space Management Efficient Assortment Advanced Merchandising
  76. 76. Efficient Assortment (Too Many SKUs, Limited Space) In-Store Space In Supermarkets Has Not Expanded As Quickly As SKUs CPG Manufacturers Have Responded With A Record Number Of New SKU(s) Expansion of Coca-Cola SKU(s) From 1986 to 2006 Impact Of Inventory-to-Sales and Assortment On System Value Chain Efficient Assortment
  77. 77. <ul><li>Which items drive sales, traffic and profits </li></ul><ul><li>Lost opportunities due to not carrying certain items </li></ul><ul><li>Which items represent true variety, not duplication </li></ul><ul><li>Which items are critical to consumer loyalty </li></ul><ul><li>Which items bring valuable (high spending, frequent shopping) consumers to the category </li></ul><ul><li>Which items support your mission and category strategy </li></ul>Efficient Assortment (Helps Determine..) Efficient Assortment
  78. 78. Efficient Assortment (Using Efficient Item Assortment Software) <ul><li>EIA Combines industry-standard methodologies for Efficient Assortment </li></ul><ul><ul><li>As established by the Joint Industry Committees on Efficient Consumer Response </li></ul></ul><ul><li>… And JDA’s industry-leading merchandising/software development expertise </li></ul>Set Market Coverage Level Confirm/Validate Additions/Deletions/ Retentions Review and Finalize Assortment Assortment Quantification Fit Assortment to Shelf Gather the Data Calculate Assortment Category Management Basics Efficient Assortment
  79. 79. Insights to Action Efficient Assortment Actions Insights Assess new products and positioning. Brand and Package innovation - Increasing SKU proliferation. Perform comprehensive analyses & interpretation of category performance. Evolving brands - missed sales and revenue opportunity to reach full potential. Initiate and execute efficient assortment process. Consumer demand for variety may lead to “Variety Confusion”. Efficient Assortment
  80. 80. Shopper Insights Market Evaluation Pricing & Promotion Analysis Financial Analysis Category Insights Space Management Efficient Assortment Advanced Merchandising
  81. 81. Allocation of Inventory <ul><li>Out-of-Stocks </li></ul><ul><li>Lost Revenue </li></ul><ul><li>for Retailer and Bottler </li></ul><ul><li>Creates trial purchase </li></ul><ul><li>of competitors’ products </li></ul>Out-of-Date Product Excessive Cash Tied up in Inventory Quality Assurance Issue Even Sell Downs Maximizes Cash Flow Maintains/grows consumer base The Proper Allocation of Products at the Point-of-Sale to Minimize Out-of-Stocks and Excessive Inventory and Maximize Category Profit, Share and Volume. Space Management Inadequate Inventory Excessive Inventory Proper Inventory Proper Inventory
  82. 82. Space Management (Principles: Art and Science) ART Space Management
  83. 83. C:/data/customer/ACFS/ACFS2 6/4/99 ( ) Space Management (Principles: Art and Science) Data Sources Store Specific or Cluster POG Measures SCIENCE ADD / DELETE Days of Supply Space to Sales GP/LINEAR FT. CROSS POG ANALYSIS NEW ITEM PLACEMENT EFFICIENT ASSORTMENT VALIDATION Space Management
  84. 84. Space Management (Getting “IT” Right at the Shelf) EIA Space Management
  85. 85. Insights to Action Space Management Actions Insights Sales / Category / Space analysis. Pressure on permanent space and effective inventory levels. Continuous Assessment of each SKU performance. Exciting new CSD category innovation has “Squeezed” core CSD brand space. Tight Space has stunted core CSD brand growth and expansion opportunities. Develop and implement a course of action for product introductions. Space Management
  86. 86. Summary - Coca-Cola is Focused on Understanding the Shopper <ul><li>We are engaging every aspect of our system to become a shopper-insights led, shopper marketing-driven organization. </li></ul><ul><li>We are driven to help customers differentiate themselves by targeting shoppers based on their unique needs states and occasions. </li></ul><ul><li>We are working with retailers to develop segmented business solutions that will better differentiate their stores and increase beverage category and total store sales. </li></ul><ul><li>We are converting Shopper knowledge into information in action, information focused on results. </li></ul>Summary

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