Download pdf - Prs Overview 1 26 2011

PREMIUM RETAIL SOLUTIONS OVERVIEW

Premium Retail Solutions

February 2011

www.premiumretailsolutions.com

678-279-8252

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http://www.premiumretailsolutions.com/


PREMIUM RETAIL SALES – THREE PILLARS

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Premium Retail can bring account management experience and

expertise at a fraction of the cost


PARTIAL CLIENT LIST

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PREMIUM RETAIL SOLUTIONS – THE TEAM

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Tom Armstrong - CEO• 21 years experience in the consumer products and specialty retail industries

• Expert in launching new products and getting the most out of existing programs

• Former Merchandising Vice President – Vendor Service with Home Depot

• Vice President – Sales & Service Emerson Electric, included flagship brands like Ridgid, ClosetMaid, In-

Sinkerator and Louisville Ladder

• Began his career with Black & Decker and DeWalt

Winston Ledet – Chief Operating Officer• Former Home Depot Merchandising VP - Strategy and Innovation

• Ran portfolio management and space allocation for Home Depot

• Led an internal innovation group called OrangeWorks that launched new products at Home Depot

• Led corporate strategy at Home Depot for three years

• Former consultant with McKinsey and Company and MBA from MIT’s Sloan School

Marthe Souza –Director Consumer Insights• Home Depot –Strategic Business Development / HD Fuel

Wes Brown –Director Merchandise Analytics• Home Depot –Director Merchandise Analysis; D25 Product Development Analyst

Arlene Korleh –Client Account Director• Home Depot –D23 / HD Expo Merchant Assistant –18 years

Anita Clonts –Client Account Director• Home Depot –D26 / D29 / D25 HD Expo Merchant Assistant - 22 years

• JDA Certified Space Planner


PRODUCT AND CHANNEL STRATEGY

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Premium Retail Solutions works with manufacturers who are brand new to retail or

to the US Market to develop a strategy for maximizing sales. We have conducted

studies of this sort for Wind Generators out of Europe, a new concept in Attic

Storage and welding tools out of Japan. The general study follows these basic

steps.

Consumer and Market Insights

• Understand through primary and secondary sources the demand for the category, channel

market share and competitor market share

• Test, through end user research, the viability of the clients offering and the potential share

gain as well as key features to develop/promote and price ranges to hit.

Channel Strategy

• Based on both share and current state of offering, create a prioritized channel

development strategy

• Developed a detailed plan for each channel –offering, price points, margin, distribution,

merchandising

Strategy Execution

• Assist in the sell in to retail channels


CONSUMER INSIGHTS

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0%

20%

40%

60%

80%

100%

Un

der

10

0

$1

00

-13

0

$1

30

-16

0

$1

60

-19

0

$1

90

-22

0

$2

20

-25

0

$2

50

-28

0

$2

80

-31

0

$3

10

-40

0

$4

00

-50

0

Ove

r $

50

0

Expect to Pay* - Unprompted

Expect to Pay

Cum Percent

Premium Retail Solutions specializes in

turn key execution of consumer insights

studies. By managing all stages of the

research in-house we can turn project in 2

weeks and apply all of our retail and

Home Improvement expertise to your

research needs

Typical Types of Studies:

• Channel or brand market share

• Brand awareness

• Purchase intent and driving factors

• Prior purchases and driving factors

• New concept tests (including a proprietary

Home Improvement model to predict

success)

• Pricing studies

• New product market share predictions

• Understanding shopping behaviors, patterns

and occasions

• Demographics of adopters and non-adopters

• Testing of different shopping concepts

Pricing

Pricing

Shopping Occasions

Planned64%

Unplanned36%


PRODUCT LINE REVIEW PREPARATION

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Winning Business at retail: • Superior product assortment

• Customer focused product presentation

• Focus on driving sales and margin productivity

• Market and consumer insights (consumer

preference, pricing, competitive assessment)

What we do:• Prepare customer focused research to drive and

validate your PLR recommendations

• Develop an overall strategy to win the business by

driving sales and margin for the retailer

• Use our ~20,000 square foot facility just down the

street from Home Depot’s Innovation Center to set,

photograph and change your bays

• Prepare for multiple assortments based on bay type

and market

• Assist with signage, packaging and placement

development

• Dry run through your PLR presentation with people

who have sat in the “other chair”

• Negotiation strategy development

Proposed Assortment

Expected Lift

0%

5%

10%

15%

20%

25%

30%

2004 2005 2006 2007 2008 2009

Un

it S

hare

Step Stool Dollar Share

Wal-Mart Home Depot

Lowe's Target


NEW PRODUCT/PROGRAM LAUNCH

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What we do:• Market and competitive intelligence

• Sales forecast based on market data and comparable products at retail

• Store placement and bay productivity guide placement and sales requirements

• Pricing analysis based on market and margin requirements

• Packaging and branding development

• Launch options including market test approaches

• Sales support with merchants

• Negotiations support

• In-store execution when needed

Market Research Product Placement

Pricing Launch / Test Development

Price

Projected

units (all

stores)

Projected

Revenue

39.95$ 104,000 4,154,800$

29.95$ 208,000 6,229,600$

19.95$ 260,000 5,187,000$


ACCOUNT ADMINISTRATION

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Premium Retail Solutions has a team of former Merchandising Assistants and

specialist in Retail analytics to supplement your sales team. Our team have decades

of experience working in Home Depot’s system and can manage the administration of

your Home Depot account at a fraction of the cost of a full time person.

Responsibilities include:

• Establishing and maintaining your items in HDLink,

Home Depot’s item repository for both stock and on-

line goods.

• Supplier Buying Agreement set up, needed whenever

your organization starts doing business with a new part

of Home Depot.

• SKU set up and maintenance in the core merchandising

systems including e531, e560 and AMT – tools to

maintain pricing, and active status

• Host (or push) orders to launch new products, execute

promotions or stay in stock

• In-Store-Service-Requests (ISSR) to engage the Home

Depot’s field merchandising team

• RTVs and Buybacks


WEEKLY SALES REPORTING AND RESPONSE

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Exception Reporting:(Weekly / Action Oriented)

• Zero Inventory

• Drops in sales

• Unexpected price deviations

• Ad Hoc reporting

What we do:• Combine EDI 852 POS sales data with Store level data

• Reports available weekly in Excel format

• Field response to exception reporting available

Standard Reporting:(Weekly, Monthly, Quarterly)

• Trending by SKU (Sales / Units)

• Trending by Market and Program

• On top of issues before the merchant

asks

• Catch sales opportunities and problems

Ad Hoc Reporting (project based)

• Test vs. Control for promotions, price changes and regional

variations

• Preparation for Merchant meeting on a specific topic

• PLR preparation to show the need for assortment changes

• Predictive modeling - What-if analysis

Stores with Zero Sales for the Week

Store # Store Name SKU # SKU Description

4 week

average run

rate

(dollars)

4 week

average

run rate

(units) On Hands On Order

Expected

on-hand

at turn

target

Store

Manager Store Phone RMM RMM Phone

121 Cumberland 998424 Outdoor Security Light 312.27$ 10 0 0 57 Joe Blow 555-123-3333 Dan Johnson 555-444-3334

107 Tilly Mill 998424 Outdoor Security Light 364.86$ 11 89 11 67 Suzy Cue 555-123-3334 Dan Johnson 555-444-3334

141 Midtown 998424 Outdoor Security Light 295.83$ 9 10 0 54 John Horn 555-123-3335 Dan Johnson 555-444-3334

972.95$

0%

5%

10%

15%

20%

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

Irrigation 2006 D28 2006 28I 28O

Weekly Sales Trend - YOY


ASSORTMENT MANAGEMENT & PLAN-O-GRAM DEVELOPMENT

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Assortment Management:• Having the “right” product in the “right” place at the “right”

time.• Certified in Space Planning by Intactix® from JDA® software• Optimized assortments to markets and stores• Develop regional and seasonal variations

What we do:• Transition your existing plan-o-grams the

required Home Depot format• Manage the plan-o-gram, assortment, store

relationship for you using AMT and Intactix• Maintain the plan-o-grams as you or other

vendors change, add or delete SKUs• Transfer digital plan-o-grams to the Home

Depot and manage all compliance issues

Additionally with POS data we can• Analyze sales, inventory and market data to

determine optimal assortments• Develop alternative assortments• Transfer digital plan-o-grams to the retailer


IN-STORE MERCHANDISING SERVICE

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Premium Retail has over 4,000 field employees and we cover every major market in the United States.

Premium can be the perfect complement to your existing retailer based merchandising. Premium adds the

ability to react fast. We can take a request by a Wednesday, be in stores for the project the next Monday and

be complete in all stores by the following Sunday. Whether you need help with on-hands and inventory,

recalls, returns, packaging fixes, POP or light PK training Premium Retail can be your partner to get it done.

Benefits:• Over 4,000 field W2 employees covering every major market

• All employees are background checked and drug tested

• Extensive experience with stocking, POP, audits, resets, and

training

• State of the art web based training and project tracking -

QTrax

Cost:Projects are quoted on a project basis typically from a base of $26 per man hour.

What we do:• Plan your project to ensure your needs are met

• Execute the project to deliver results

• Report on progress and results


DEMOS AND ASSISTED SALES EVENTS

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Benefits:• For new products – assisted sales is one of the most powerful

ways to drive awareness and Sales

• Over 40% of purchase decisions are made at the shelf. An

assisted sales person, a demo or a well informed associate can

drive significant growth.

Cost:Projects are quoted on a project basis typically from a base of $36 per store hour

plus expenses related to demonstration supplies, shipping and training

What we do:• We manage every step of the process from scope development, to

training to deployment

• Execute the events

• Report back activity and results

Premium Retail Assisted Sales representatives, fully trained on the features and benefits of your

products, can provide in-store, in-aisle product knowledge training , demonstrations and conduct

event based selling in high traffic times. Premium can use sales analytics to help target the right

time of year, day of week and time of day to be in store. We have over 2,000 assisted sales reps

and a dedicated team of Home Depot certified sellers.

We have superior tracking systems which capture in store

activity and combine it with hard measures of ROI like

sales lift and softer measures like number of associates

trained and level of knowledge.

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VPOP – A VIRTUAL APRON IN THE AISLE FOR SPECIALTY DEPTS

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• vPop solves the problem of staffing in

specialty department where:– You have to have an associate to get a sale and…

– …average ticket is often huge – thousands of dollars but…

– …transactions are infrequent leading to extended

unproductive time

• Premium has the retail and Home Depot

expertise to make a solution turn-key– Expertise in specialty departments and processes

– Centralized staffing of call center operations

– Assisted sales training for expertise

– IT department to integrate any required system

• vPOP is a robust platform built to handle two

way customer interaction– Live video / audio

– Ability to show samples, pictures, videos

– Allows centralized service to build expertise and allow multi-

lingual support

– Bandwidth option built in to the solution (if needed)

– Works with online solutions as well

– Monitored remotely with nationwide repair

crew


MERCHANDISING AND MEETING SPACE

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Premium Retail has a 20,000 square foot plan-o-gram and office facility about a mile from Home

Depot’s headquarters and the Home Depot Innovation Center. Space is available for store sets

that are too sensitive competitively for the IC or will take too long to perfect to be affordable

there. You can also use space permanently to have your store set up whenever you need it.

Benefits:• 24 hour access to your set

• Guaranteed privacy from competitors

• Meeting space available

• 1 mile from SSC and IC