1. Case Study Response For Consideration Information Retail Services Director of Retail Product Management S. Livingston Smith 01/05/2006

2. 01/2006 Livingston Smith Copywrite 2009 2 Outline Introduction Context: IRI Brand, IRI Strategy, and RCS (Retail Client Services) Requirements Situational Analysis Research: Requirements based on US retail grocers market, shopper, & competitor analysis Development Strategy & Approach Approach: Getting started / a developmental approach for solutions

3. 01/2006 Livingston Smith Copywrite 2009 3 Introduction The IRI Brand Position Winning at the Shelf Requirement – any new, repositioned, or expanded IRI SERVICE OFFERING must align with current branding strategy The IRI Strategy Customer Satisfaction Developing Innovative Solutions Driving Efficiencies throughout the Business Building its Leadership Team Requirement – Any new, repositioned, or expanded IRI SERVICE OFFERING must align with top THREE strategy components Sources: www.infores.com & www.executivesclub.org

4. 01/2006 Livingston Smith Copywrite 2009 4 Introduction The RCS Branding Strategy Three Major Components Current Retail Offerings RCS Brand RCS Pipeline Development Approach & Direction Requirement- Any new, repositioned or expanded RCS SERVICE OFFERING must leverage and strengthen the current RCS branding strategy Sources: Product Management Group, Retail Client Services

5. 01/2006 Livingston Smith Copywrite 2009 5 Introduction Development Strategy NPD (New Product Development Theory Three Stages: Discovery, Development, and Commercialization Various Approaches Six Sigma Objective Oriented Innovation Quality Functional Deployment (QFD) Voice of the Consumer (VOC) Benefits of NPD Based Approach Each is a proven approach Each support immediate action and long term planning Findings can be reproduced and leveraged for later projects

6. 01/2006 Livingston Smith Copywrite 2009 6 Situational Analysis US Grocery Retail Market Overview Fragmented Industry Top 5 food retailers control 1/3 of market share Vigorous Competition Continual new entrants; changing competition along with minimal population growth Minimal Margins Food retailers feed Americans at a net profit of one penny for every dollar in sales Vast and Sophisticated Supply Chain Reflected in farm-to-retail price spread Labor = 38.5% Packaging = 8% Transportation = 7.5% Sources: Food Marketing Institute, Backgrounder, “Food Retailing in the 21st Century”

7. 01/2006 Livingston Smith Copywrite 2009 7 Situational Analysis Three Key Issues for US Retail Grocers Gain Market Share (from Competitors) Gain More of the Family Dollar Spent Increase Customer Loyalty Three Key Goals for US Retail Grocers Increase Repeat Visits Increase Loyalty to Retailer Increase Loyalty to MFG brands Sources: www.infores.com, GMA, Food Management Institute

8. 01/2006 Livingston Smith Copywrite 2009 8 Situational Analysis Food Retail Market Competition Supermarkets Super Centers Membership Clubs Food & Drug Stores Natural & Organic Outlets Limited Assortment Stores Convenience Stores Dot Coms Gasoline Stations Restaurants

9. 01/2006 Livingston Smith Copywrite 2009 9 Development Strategy: Overview Project Level Methodology Strategy Customer Inputs Position Current Offerings New Opportunities Identify Breakthrough versus Growth Concepts Market Segmentation Define Target Strategy Prioritize Pipeline Comment: Basic NPD or Innovation based Methodology

10. 01/2006 Livingston Smith Copywrite 2009 10 Development Strategy Step One: DISCOVERY Evaluate Current RCS Offerings for: Customer Loyalty % of Dollar Market Share Solutions Sources Internal Experts Stakeholders Method Total Quality Tool: Tree Diagram (Per Solution) Benefits Defines Current Offerings Aligns Offerings with IRI Branding & Strategy Builds RCS Branding by Highlighting Benefit Groupings Develops Current or New offerings by emphasizing gaps Feeds Development Pipeline / manages gaps

11. 01/2006 Livingston Smith Copywrite 2009 11 Development Strategy Step Two Quantify Opportunity for Developing New or Expanded Solutions Customer Loyalty % of Dollar Market Share Solutions Source Tree Diagrams (Step One) Method Pareto Chart Benefits Aligns RCS with overall IRI Strategy Develops RCS Branding Strategy Develops / Manages Pipeline

12. 01/2006 Livingston Smith Copywrite 2009 12 Development Strategy Step Three Prioritize Development Opportunities Customer Loyalty % of Dollar Market Share Solutions Source Internal Experts Stakeholders Method Priorities Consensus Tool Benefits Further Aligns RCS with IRI Strategy Solidify RCS Brand Elements Further Develops (Solidifies) Pipeline Priorities

13. 01/2006 Livingston Smith Copywrite 2009 13 Development Strategy Step Four Focus & Pursue HIGHEST Priorities Source Priorities Consensus Tool Method Profitability Analysis Driving Tactical Plan Dependent on Outcomes Possible Methodologies Incremental Innovation Objective Oriented Innovation Methodology Outcomes Sought within each step of process Breakthrough Innovation VOC Collection Tool + QFD Current IRI New Product Development (NPD) Process