Optimizing Shopper Insights For Grocery Retailers

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Analytics have become a vital element in grocery retailers’ toolboxes, helping them to hone in on best practices in order to improve customer service. From space management and promotion planning to price optimization and assortment planning, analytics are delivering the insights that help grow the business and improve the bottom line.Retailers around the world are finding success with insight-driven analytics. Representing the largest grocery cooperative in Finland, Ilkka Alarotu from the S Group will share his expertise and experiences with analytics in an upcoming webinar.Joining Alarotu during the webinar, industry consultant Jim Hertel from Willard Bishop will discuss his perspective on the benefits of analytics; and Cyndy Renfrow from SAS will share grocery case studies highlighting innovation and analytics.

Text of Optimizing Shopper Insights For Grocery Retailers

  • 1. Ilkka Alarotu, Jim Hertel, Cyndy Renfrow,S Group Grocery Trade Willard Bishop SAS Institute Inc.
  • 2. Welcome to the WebinarYour GoToWebinar Attendee Viewer is made of 2 parts: 1. Viewer Window 2. Control Panel Type your ques9on here
  • 3. Follow this Webinar on Twitter #LiveWebinar hashtag.
  • 4. About Retail TouchPoints Launched in 2007 Over 20,000 subscribers To provide executives with relevant, insightful content across a variety of digital mediumFree subscription to our weekly newsletter:www.retailtouchpoints.com/signup
  • 5. PanelistsIlkka Alarotu Jim Hertel Cyndy RenfrowDirector, Customer Managing Partner Senior Director, EMEAOriented Assortment Willard Bishop Retail/FMCG Practiceand Pricing - Food and SAS Institute Inc.Daily Consumer GoodsS Group Grocery Trade Moderator Debbie Hauss Editor-in-Chief Retail TouchPoints
  • 6. Unique Challenges Facing Grocery Retailers Commodity pricing pressures Decreased household wallet share due to fewer shopping trips Increased competition from non-grocery retailers, including deep discounters Empowered consumers Numerous in-store departments Fresh food management Mountains of SKUs and UPCs Need for a highly optimized workforce Siloed internal business processes
  • 7. Insight-Driven Analytics Boost Grocery Profits And Revenue Insight-driven retailing can break down the barriers/silos and provide transparency across the value chain Supermarket retailers can expect to increase same-store sales 5% to10% when becoming more shopper-centered Jim Hertel, Willard Bishop Mobile Technology and Social Media will greatly impact the grocery business and analytics will play a key role. Location-based information represents the most important single feature of mobile. Richard Hastings, Global Hunter Securities Retailers must institute outside-in thinking in order to analyze customer sentiment and deliver actionable insights
  • 8. Insight-Driven Analytics Boost Grocery Profits And Revenue Smart retailers will respond with a focused optimization strategy featuring 4 key components: 1. Assortment Optimization 2. Campaign Planning, Marketing and Promotion Optimization 3. Pricing Optimization 4. Demand Forecasting
  • 9. 10/12/11 SOK Pivittistavarakaupan ketjuohjaus 9
  • 10. 1. S Group in brief2. Value Chain Optimization: Big Picture3. Space Optimization4. Price Optimization5. Interactive social media services6. Summary 10
  • 11. 1. S Group in brief2. Value Chain Optimization: Big Picture3. Space Optimization4. Price Optimization5. Interactive social media services6. Summary 11
  • 12. The S Group consists of 22 regional cooperatives and the SOK Corporation, which is owned by the cooperatives. S Group has operations throughout Finland, in the Baltic Countries, and in St. Petersburg, Russia. Retail sales: EUR 12,267 million (+5,0 %) Profit before exceptional items: EUR 296 million Bonuses paid: EUR 333 million 1,636 outlets 39,646 employees SOK Grocery Trade Chain Management 12
  • 13. Grocery sales Service station stores Department stores and fuel sales and speciality goodsHotels and restaurants Cars and Agribusiness automotive goods Other S Groups restaurants S Groups car dealerships 13
  • 14. Higher quality at a lower priceS Group leads the industry with consistentlylower prices, wide variety and high customersatisfaction. 14
  • 15. Every Day Low Price (EDLP) requires Every Day Low Costs (EDLC) Best demand-based assortment always (continuously) available Easiest place to shop in all locations 15
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  • 18. 1. S Group in brief2. Value Chain Optimization: Big Picture3. Space Optimization4. Price Optimization5. Interactive social media services6. Summary 18
  • 19. 1. Forecast 2. Forecast 3. Forecast S Group total / Store / Product / Store / Product / Day Product / Period Week 28 days before Optimization Customer-oriented Storeassortment planning Space/product ReplenishmentPricing optimization: In-store efficiency Labour planning volume scenarios Logistics costs Logistics operations Sourcing Display methods Automated ordering Delivery Pack size Pricing Vendors: Vendors: Vendors:Auctions ->Orders Labour plans Logistics plans Raw material Production drivers Inventory levels purchasing Logistics Production plans Capacity operations 4 8 months 2 months 21 days 48 hours 19
  • 20. Orders for vendors 2. Forecast 3. Forecast Drivers: Store / Product / Store specific Store / Product / Week space allocation Day 28 days before 1. Forecast 100% Shelf availability Optimization S Group total / Display methods Tentative Order Product / Period Picking and delivery efficiency pack sizes In-store Store