Retail analytics ASIA workshop_ New perspective on GfK retail analytics

GfK. Growth from Knowledge – Analysis for Retailers, RS Workshop 06

Richard JoRetail service ManagerGfK Marketing Service Korea Ltd.

11th Sep. 2006

Analysis for Retailers


Agenda1

2 Store identity: Who the retailer is?

Concept of retail analysis

3 Identification business issues

4 Long-term strategy: Directional Policy Matrix

5 Targeting: Preference analysis

6 Positioning: Differentiation

7 Area marketing

8 Conclusion


Concept of retail analysis1

4

GfK. Growth from Knowledge – Analysis for Retailers, RS Workshop 06 20 September 2014

Marketing Activitiese.g. Pricing, Promotions

What retailers are concerning about?

� Customer Service� Layout, display � Location

� Open outlets� Localization for local needs

� Merchandising� Assortment� Consumer Trend

� Identity� Targeting� Positioning� Differentiation

RevenueRevenue

ProfitProfit

5


Retail Analysis Flow

ParadigmIdentification

Business IssuesCritical

reasoningActionable

Recommendation

Revenue

Sales up-down

M/S changes

Market development

Profit

Sales up-down

Assortment changes

Price changes

Market Trend

Technology trend

Consumer trend

Internal

External

Directional Policy Matrix

Brand development index

Category development index

Sales efficiency

Pricing efficiency

Positioning analysis

Channel preference

Store identity

SWOT

3 Key points

after prioritisation


Store identity

:Who the retailer is?2

7


More revenue or More profit

Low end

High end

General Assortment

Selected Assortment

GES

Retailer X

IND

Wide range Discounter

Online

Mass Premier

Brand sensitivePrice sensitive

HM

DS

Revenue

Market ShareGrowth Rate

Market DevelopmentTurn-over frequency

Profit

Differentiation in identitySales efficiency

AssortmentExclusive model

X-Axis: AVG PriceY-Axis: Number of model selling

8


TV Homeshopping110

GES 134

Hypermarket 75

Internet shoppingmall82

IND87

DS133

Low financial riskLow financial risk High financial riskHigh financial risk

Retailer XRetailer X

136136

AVG Price index 100

Identity concept

AVG Price by each channel


Identification business issues3

10


7.7%

20.6%

12.2%

4.3%

32.8%

1.6%

19.4%

1.5%

0%

5%

10%

15%

20%

25%

30%

35%

Last 2 Months Apr. vs. Mar

Retailer X Hypermarket GES Total

0.1%

19.5%

3.8% 3.5%

26.8%

2.3%

9.1%

3.0%

0%

5%

10%

15%

20%

25%

30%



16.1%

21.6%21.3%

5.0%

37.6%

1.2%

30.5%

0.1%0%

5%

10%

15%

20%

25%

30%

35%

40%



[Consumer Electronics, 48%] [Home Appliances, 52%]

[Sales Growth by Channel]

[CE & HA Sales Growth by Channel]

4.8% 4.5% 3.8% 4.5%

15.0% 14.2% 13.5% 13.9%

35.0%

38.0%40.7% 40.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Jan 06 Feb 06 Mar 06 Apr 06

Retailer X Hypermarket GES[Market Share trend]

� Retailer X grow the most this month� M/S improved by 0.7%� CE improved the most� HA contribute the growth

Overview: Total market competition

11


52.5

43

42.4

38.2

38.1

33.9

29.8

29.5

24.4

22.7

20.7

20

19.1

19.1

19

17.9

12.2

10

8.5

8.5

7.9

7.9

7

7

-0.2

-0.3

-1

-1.1

-13.9

-17.2

-38.8

-51

-54.2

-100 -80 -60 -40 -20 0 20 40 60 80 100

Airconditioner

Digital Still Camera

Food preparation

Shaver

Rice cooker

Dental care

Side-by-side REF

Camcorder

Iron

LCD TV

PDP TV

MP3P

TOTAL

PMP

CRT TV

Kimchi Refrigerator

DRUM WM

TUB WM

Vacumme cleaner

Sigle REF

DVD player

Kettle

Projection TV

Radio recording player

Memory card

Toaster

Audio Component

Microwave oven

Hot beverage machine

E-dictionary

Headphone Stereo

Coated Inkjet paper

CDP/MDP

Period : Apr.06 vs. Mar.06

Growth: Category performance against TOTAL (Chart)

12


Size

(B.Won) LM TM Retailer vs.TOT vs.HM vs.GES vs. Dep. vs. Online vs. IND HMP vs.TOT vs.HM vs.GES vs. Dep. vs. Online vs. IND TOTAL HM GES

MD Airconditioner 100.0 1.6% 2.4% 69% 53% 36% 47% 61% 111% 39% 212% 36% -8% 8% 127% 24% 76%

PI Digital Still Camera 54.0 3.3% 4.4% 62% 43% 23% 48% 77% 39% 50% -18% -3% -10% -7% -6% 15% -24% -2% 53% 4%

SD Food preparation 6.2 5.4% 8.0% 30% 42% 18% 20% 6% 74% 30% 38% -6% 15% -1% 0% -45% 24% 82% 255% 45%

SD Shaver 4.8 4.4% 6.5% 19% 38% 25% 30% 18% 72% 2% -16% 2% -6% -11% 11% 14% -15% -6% 82% 85%

SD Rice cooker 27.6 5.6% 7.6% 34% 36% 47% 44% 34% 25% 27% 2% 10% 12% 8% -3% 19% 2% 13% 31% 59%

SD Dental care 1.7 1.3% 2.2% -12% 34% -8% 6% 3% 53% -26% -3% -25% -21% -10% -5% -35% -32% 54% 18% 70%

MD Side-by-side REF 102.7 3.4% 4.4% 25% 30% 20% 30% 17% 49% 32% 20% -6% 1% -12% -13% -7% 2% 67% 144% 72%

VI Camcorder 8.7 0.8% 1.1% 29% 30% 43% 22% 49% 10% 30% -29% -24% -18% -42% 30% -42% -29% -14% -52% -47%

SD Iron 2.7 6.7% 8.3% 21% 24% 17% 22% 42% 40% 29% 46% 32% 29% 35% 44% -62% 52% -12% 21% 15%

VI LCD TV 94.7 4.2% 4.9% 55% 23% 18% 28% -2% -91% 32% 54% -11% -9% -51% -7% 114% 17% 516% 924% 522%

VI PDP TV 71.6 4.5% 5.5% 16% 21% 14% 31% -8% -52% 24% -2% -7% -3% -16% -4% 23% 0% 64% 187% 40%

AU MP3P 9.7 3.1% 3.9% 4% 20% 12% 21% -23% 31% 19% -32% -15% -29% -22% -15% -10% -11% -66% -33% -51%

AU PMP 7.2 3.2% 4.0% 3% 19% 45% -4% 6% 32% -3% -13% 1% 38% 5% 10% -3% -7%

TOTAL 742.4 3.8% 4.5% 21% 19% 16% 19% 5% 38% 16% 8% -12% -5% -25% -7% 6% -9% 23% 59% 37%

MD Kimchi Refrigerator 29.2 5.1% 6.0% 14% 18% 12% 22% -11% 25% 21% 5% 14% 19% 20% -43% -20% 19% -15% 46% -5%

VI CRT TV 36.4 4.1% 4.8% 8% 15% 24% 19% 31% -1% 7% -20% -18% -5% -21% -5% -50% -22% -33% -41% -38%

MD DRUM WM 45.3 3.6% 4.0% 12% 12% 7% 11% 8% 48% 8% 2% -20% -8% -22% -17% -45% -22% 69% 111% 52%

MD TUB WM 18.0 5.0% 5.5% 2% 10% 15% 7% -30% 49% 1% 3% 0% 4% -12% 12% 35% 0% -8% -6% -2%

SD Vacumme cleaner 15.9 7.1% 7.8% 3% 8% 12% 7% 10% 19% 1% -8% -3% 2% -9% -26% 10% -11% 4% 53% 6%

MD Single REF 19.8 2.5% 2.8% 4% 8% 5% 12% -29% 14% 4% 1% -22% -14% -28% -29% -30% -14% -3% -18% 18%

VI DVD player 7.7 5.6% 6.1% -1% 8% 10% 11% -23% 25% 4% -14% -7% -2% -21% 14% 23% -8% 4% 5% 35%

SD Kettle 2.3 9.4% 10.2% -2% 8% 12% 14% 16% -2% -11% 9% 10% 12% 5% 22% 14% 11% 3% 52% -9%

AU Radio recording player 4.3 8.7% 9.5% -18% 7% 6% 16% 9% -10% -6% 10% 2% 8% -6% 22% 10% 2% 8% 33% 9%

PI Memory card 12.4 2.4% 2.5% -1% 6% -28% 27% 6% 19% 3% 37% 4% -36% 19% -25% 51% -9% -26% -5% 35%

VI Projection TV 15.2 0.9% 1.0% -20% 6% 14% 13% 53% 5% -7% -39% -53% -1% -21% 27% -116% -13% -39% -76% -85%

SD Toaster 0.6 6.9% 6.9% 2% 0% 13% 3% -2% -31% -15% 6% 1% 5% -10% 44% -6% -11% 13% 10% 95%

AU Audio Component 19.4 3.5% 3.5% 8% -1% 14% -37% -5% 48% 15% 5% -8% -1% -45% 25% 5% 10% 31% 11% 37%

MD Microwave oven 9.0 6.2% 6.1% -5% -1% 11% -3% 19% -2% -10% -1% -16% 5% -36% 23% 10% -18% 27% 41% 58%

SD Hot beverage machine 0.8 5.9% 5.1% -13% -14% 5% -27% -31% -22% -18% 4% -1% 4% -39% 22% -3% 9% 6% 34% 58%

PI E-dictionary 13.3 7.4% 5.7% -40% -17% -1% -25% -21% -9% -31% -9% -6% 5% -13% -1% 1% -14% -16% 13% 17%

AU Headphone Stereo 0.4 5.3% 3.0% -49% -39% -36% -19% -65% 3% -56% -47% -36% -32% -52% -7% -27% -41% -50% -45% -54%

PI Coated Inkjet paper 0.4 0.6% 0.3% -54% -51% -23% -35% -37% -140% -57% 15% 15% 8% 18% 39% 53% 15% -5% -47% -30%

AU CDP/MDP 0.5 1.8% 0.7% -64% -54% -41% -50% -52% -39% -62% -63% -46% -48% -16% -39% -52% -51% -67% -68% -84%

Total YOY growth

Cat

M/S & Growth Analysis Retailer X M/S Monthly Sales growth 2 Monthly Sales growth

Growth: Category performance (Table)

13


(B.Won) Sales % vs. LM vs. LY Retailer X vs. LM vs. Total vs. Hyper vs. GES

Side-by-side REF 102.7 13.8% -4.7% 67.3% 13.50% 0.49% -0.34% 0.09% -2.90%Airconditioner 100.0 13.5% 16.8% 7.09% 2.04% -6.38% -5.15% -8.40%LCD TV 94.7 12.7% 31.7% 516.2% 13.87% 3.05% 1.13% 0.91% -1.38%PDP TV 71.6 9.6% -5.0% 63.9% 11.76% -0.48% 2.12% -1.28% 1.58%Digital Still Camera 54.0 7.3% 18.9% -1.6% 7.15% 1.83% -0.13% 1.96% 3.64%DRUM WM 45.3 6.1% -0.5% 68.9% 5.46% -0.43% -0.65% -0.51% -1.82%CRT TV 36.4 4.9% -7.3% -32.7% 5.15% -0.61% 0.25% -0.55% -0.14%Kimchi Refrigerator 29.2 3.9% -3.6% -14.9% 5.23% -0.28% 1.30% 1.30% 1.23%Rice cooker 27.6 3.7% -1.1% 13.3% 6.22% 0.64% 2.50% 3.00% 2.64%Single REF 19.8 2.7% -4.3% -3.0% 1.62% -0.25% -1.04% -0.39% -1.83%Audio Component 19.4 2.6% 9.4% 30.5% 2.02% -0.23% -0.59% -0.24% -0.86%TUB WM 18.0 2.4% -7.9% -8.1% 2.94% -0.53% 0.52% 0.09% 0.15%Vacumme cleaner 15.9 2.1% -5.9% 4.5% 3.67% -0.65% 1.53% 0.53% 1.75%Projection TV 15.2 2.1% -26.2% -38.9% 0.43% -0.22% -1.62% -0.50% -0.06%E-dictionary 13.3 1.8% -23.0% -16.0% 2.26% -2.30% 0.47% 0.74% 0.77%Memory card 12.4 1.7% -7.9% -25.9% 0.94% -0.21% -0.73% 0.08% 0.58%MP3P 9.7 1.3% -15.9% -65.8% 1.13% -0.18% -0.18% -0.30% 0.45%Microwave oven 9.0 1.2% -3.7% 26.6% 1.63% -0.44% 0.43% 0.20% 0.13%Camcorder 8.7 1.2% -0.3% -13.5% 0.28% 0.02% -0.89% -0.09% -0.01%DVD player 7.7 1.0% -9.2% 4.5% 1.39% -0.31% 0.35% -0.34% 0.48%PMP 7.2 1.0% -16.2% 0.85% -0.15% -0.12% 0.56% 0.56%Food preparation 6.2 0.8% -12.1% 81.6% 1.47% 0.11% 0.64% 0.05% 1.02%Shaver 4.8 0.6% -19.2% -5.9% 0.93% -0.01% 0.28% 0.01% 0.61%Radio recording player 4.3 0.6% -24.5% 8.3% 1.22% -0.57% 0.64% 0.01% 0.73%Iron 2.7 0.4% -3.3% -11.6% 0.67% 0.00% 0.31% 0.00% 0.38%Kettle 2.3 0.3% -9.6% 3.4% 0.71% -0.16% 0.40% 0.03% 0.51%Dental care 1.7 0.2% -45.9% 54.4% 0.11% -0.04% -0.12% -0.05% 0.07%Hot beverage machine 0.8 0.1% 1.0% 6.5% 0.12% -0.04% 0.01% -0.07% 0.04%Toaster 0.6 0.1% 1.9% 12.5% 0.12% -0.02% 0.04% -0.02% 0.06%CDP/MDP 0.5 0.1% -9.6% -67.0% 0.01% -0.03% -0.06% -0.03% 0.00%Coated Inkjet paper 0.4 0.1% -2.7% -5.1% 0.00% -0.01% -0.05% -0.03% -0.01%Headphone Stereo 0.4 0.1% -9.9% -50.3% 0.04% -0.05% -0.02% -0.01% 0.02%TOTAL 742.4 100.0% 1.5% 23.3% 100.00% 0.00% 0.00% 0.00% 0.00%

Sales %Total market/ GrowthCategory

Assortment: Sales participation by category

14


229

250241

254

249261 260

288

387

422

455

482

314

331339

361

200

250

300

350

400

450

500

550

Jan-06 Feb-06 Mar-06 Apr-06

Retailer X

Hy permarket

General Electro

Stores

TO TA L

+5% vs. Last

Month

+6% vs. Last Month

+11% vs. Last Month

+6% vs. Last Month

**Product Category: CTV, DVD, CAM, ADP, AHS, RRP, HST, DPAP, DPVP, REF, KREF, WM, MWO, DSC, EAS, VAC, SHV, IRN, RC, HBM, KET, DEN, FP, MED, CIP, TOA, AIR** Excl. Mob

Pricing: ASP trend by channel type

15


92%85%

90%

101%

76%

100%95%

111%

69%

87%95%

84%81%87%

96%

Retailer X GES HM

Audio Visual PHO IT SDA MDA

Sales efficiencyBasis : 5 regions (Seoul, Kyunggi, Incheon, Kyungnam, Kyungbuk) based on 24 PCAT Dec~Nov 2004 and Dec~Nov 2005

*Sales efficiency = Sales growth / Sales participation growth

83%100%88%107%114%139%121%MP3

Sales efficiency

Participation Growth

Sales efficiency


Sales efficiency


ORG Sales Growth

GESHMRetailer X


Long-term strategy:

Directional Policy Matrix4

17


Market Share of Retailer X

Strong1.1%< AVG 2.2%<3.3%Weak11.5%5.6%1.6%2.5%3.3%CIP

5.6%5.4%7.1%5.9%1.1%MED

11.8%25.1%12.2%7.5%1.9%EAS

IT

6.7%12.5%22.3%2.7%1.2%DSC

15.7%8.2%4.4%12.0%0.6%PHOPh

ot

o

6.8%13.3%5.9%11.4%0.3%CAM

28.6%28.6%3.2%6.2%2.9%VCR

26.0%26.4%6.5%4.5%6.7%DVD

10.6%21.7%11.2%5.2%1.5%RPTV

14.1%46.2%0.7%17.7%1.6%PLASM

19.1%38.7%10.5%0.5%1.4%NFLAT

10.9%45.3%2.9%11.7%0.6%LCD

22.6%43.3%4.9%3.2%4.2%FLAT

Vi

su

al

27.1%35.0%5.0%2.5%7.1%RRP

9.0%14.4%32.6%5.5%1.3%DPAP

9.9%14.8%10.6%9.1%2.0%HPS

14.8%35.6%6.4%8.9%1.6%AHS

8.2%7.3%7.8%11.2%1.5%ADP

Au

di

o

HMGESINDDSRetailer PCAT HMGESINDDSRetailerPCAT

13.7%31.4%10.0%7.6%2.2%TOTAL

18.1%42.1%5.8%2.3%3.3%TUB

14.2%50.0%5.3%7.8%2.6%DRUM

11.9%30.3%7.3%3.8%1.1%KREF

11.2%51.2%6.0%1.1%1.8%SING

15.4%40.2%7.6%9.4%2.3%SBS

19.5%38.1%9.1%3.1%4.5%MWO

M

D

A

15.3%30.9%10.9%3.5%3.1%VAC

17.9%31.4%5.5%2.4%3.2%RC

29.9%21.1%4.5%21.6%5.0%KET

32.1%17.8%3.9%10.4%4.7%TOA

13.2%12.6%12.3%32.0%2.1%SHV

22.6%22.2%4.7%16.2%4.4%IRN

23.1%13.1%6.6%31.7%3.3%HBM

21.8%29.8%7.5%13.6%6.9%FP

8.4%5.6%10.0%31.4%1.6%DEN

S

D

A

18


Market Attractiveness

Market

Size

Value

GrowthPCATRank

2.3%27.9%EAS10

1.4%143.2%DVD9

5.3%-6.1%DRUM8

3.6%15.5%RC7

8.2%-4.5%FLAT6

8.2%3.1%KREF5

15.0%2.3%SBS4

4.0%358.5%LCD3

12.0%50.7%DSC2

9.0%213.2%PDP1

Market

Size

Value

GrowthPCATRank

0.7%-18.4%FP20

2.5%-36.9%AHS19

1.0%-12.7%MWO18

0.3%18.9%KET17

0.3%24.6%DEN16

5.4%-35.9%RPTV15

2.9%-7.5%VAC14

3.6%-6.4%TUB13

4.6%-11.0%DPAP12

4.3%-3.1%SGL11

Market

Size

Value

GrowthPCATRank

0.1%-85.6%NFLAT31

0.2%-85.9%VCR30

0.1%-69.1%HPS29

0.2%-78.1%ADP28

0.1%-29.7%TOA27

0.1%-19.3%HBM26

0.6%-36.5%PHO25

2.0%-41.4%CAM24

0.9%-19.3%SHV23

0.7%-13.9%RRP22

0.5%-11.0%IRN21

Attractive More or Less Not Attractive

*Rank = Value Growth Ranking + Market Size Ranking

19


CAM, PHOSHV, ADP, HPS, VCR, NFLAT IRN, RRP, HBM, TOA

SGL, DPAP, VAC, RPTV, DEN, AHS

TUB, KET, MWO, FP

LCD, KREFPDP, DSC, SBS, RC, DRUM,

EASFLAT, DVDP

Business Strength

Strong Weak

Ma

rke

t

Attra

ctiv

e

Invest /Grow

Selectivity/Earnings

Harvest /Divest

Directional Policy Matrix for each product

Hig

h

Lo

w

Opportunistic development

Manage for cash

SelectiveMaintain market position

Invest for growthStrategy

Upgrade management

Aggressive

Aggressive for lead

Differentiation

Category expansion

Increase dominance

FLAT, DVDP, DRUM, SBS, RC

InvestCut backAllocate key managers

TightenPersonnel

AggressiveMinimizeMaintainlimitPromotion

Aggressive for shareRaiseMaintainStabilize or RaisePrice

Differentiation

Category expansion

Aggressively prune

Emphasize product quality

Prune less successful differentiation

Assortment

Invest moreForego share for profit

MaintainMaintain for earningMarket Share

LCD, KREF, PDP, DSC, EAS

CAM, PHO, SHV, ADP,

HPS, NFLAT

SGL, DPAP, VAC, RPTV

IRN, RRP, HBM, TOA, TUB, KET, MWO, FP,

VCR, DEN, AHS


Targeting:

Preference analysis5

21


Consumer channel preference for digital convergence

9.5%

4.3%3.5%

4.7%

18.3%

33.3%

5.3%

4.1%

1.6%

2.8%3.6%

2.0%

9.4%8.3%

4.1%4.6%

27.9%

7.0%

IND DS HM GES INTERNET MOH

DSC

EAS

DPAPIND, 24.3%

DS, 3.7%HM, 10.5%

GES, 14.8%

INTERNET,

26.6%

MOH, 20.1%

� Customer with portable digital prefer IND, INTERNET channel� DSC participation in MOH is high� DPMP participation in INTERNET is high� focused assortment, in-detail product information, word of mouth are important for digital convergence

22


Retailer X’ Portfolio for Consumer Electronics

PDP, 1.7%

DRUM, 3.3%

SBS, 2.1%

DSC, 1.3%

EAS, 2.2%

RC, 3.4%TUB, 3.6%

VAC, 3.4%

KET, 6.0%

KREF, 1.2%

FP, 5.5%

CRT, 4.5%

SGL REF, 1.8%

MWO, 4.7%

RRP, 7.5%

AHS, 1.8%

DVD, 7.2%

SHV, 2.1%

IRN, 4.7%

MP3P, 1.3%PRJ TV, 1.4%

HBM, 4.2%

PHO, 0.9%

DEN, 1.7%

VCR, 5.0%

CDP/MDP, 1.4%

HPS, 2.3%

LCD, 0.6%CAM, 0.3%

Problem Children Dog

Star Cash Cow

High Attractiveness Low Attractiveness

High Market Share

Low Market Share

23


Business portfolio comparison by stock turn-over

11%

26%

38%

11%

10% 10%

42%53%

Value Volume

Retailer X Other Hypermarket General Electro Store

7%

21%

26%

12%

12% 12%

55%54%

Value Volume

5%

11%

9%

22%

9%14%

78%

53%

Value Volume

Dog

Problem

Children

Cash Cow

Star

24


Retailer X’ StarBase: 5 regions & Online, 2005

53%

4.3%

5.7%

3.7%

4.9%

4.2%

4.3%

7.3%

8.0%

8.5%

Retailer X Unit Share

87%15,932 3.3%10,297,761 DRUM3

100%638,001 2.3%125,306,772 Retailer X

133%335,767 3.9%52,092,027 Cash Cow Total

5,404,918

7,046,234

6,265,314

20,078,271

1,806,546

1,192,983

Retailer X Value

Sales Value

188%51,556 5.5%FP12

170%86,387 4.5%CRT13

101%22,452 3.6%TUB8

98%61,038 3.4%RC7

116%61,978 3.4%VAC9

10

Market Attractiveness

36,424

Retailer X Unit

Sales Unit Consumer Preference

(000’ KRW)Category

42%How important this category?

200%6.0%KET

Retailer X Market Share

How consumers prefer buying the PCAT from the Retailer X?

Consumer Preference= AVG unit share/ Retailer X unit share

25


2,760

1,544

358 275 27933

703

35232

396

3,116

2,210

633

1,018

424266

124289

97 46

723

41280

427

3,790

2,538

748

430136 134 48

969

48

444 410646

963

115 87

353251

1,377

PD

P

LCD

DRU

M

SBS

DSC

EAS

RC

TU

B

VAC

KET

KREF

FP

CRT

SG

L R

EF

Retailer X HM GES TOTAL

Category price (Assortment class) for top 14 itemsBase: 5 regions, 29 PCAT

80%

36% 42% 40%

121%

283%

44%

271% 275%

47%

129%

85%

110%127%

38%

58%

120%133%

152% 149%

98%

164%

213%

58%

176%165% 158%

43%

133%

97%

76%

111% 104%113%

178%

99% 93%

119%

168%

133%

80%

141%

PD

P

LCD

DRU

M

SBS

DSC

EAS

RC

TU

B

VAC

KET

KREF

FP

CRT

SG

L R

EF

Retailer X HM GES

How consumers prefer the price when buying the PCAT from the Retailer X?

Price preference for the PCAT= Consumer preference/ Retailer X AVG sales price index

26


80%

36%42% 40%

121%

283%

44%

271%275%

47%

129%

85%

110%

127%

38%

58%

120%

133%

152% 149%

98%

164%

213%

58%

176%

165%158%

43%

133%

97%

76%

111%104%

113%

178%

99%93%

119%

168%

133%

80%

141%

PD

P

LCD

DRU

M

SBS

DSC

EAS

RC

TU

B

VAC

KET

KREF

FP

CRT

SG

L R

EF

Retailer X HM GES

Comparative category price ratio to consumer preference Base: 5 regions, 29 PCAT

How consumers prefer the price when buying the PCAT from the Retailer X?

Price preference for the PCAT= Consumer preference/ Retailer X AVG sales price index


Positioning: Differentiation6

28


DS

0

20

40

60

80

100

120

140

160

180

200

220

240

260

280

AUDIO

VISUAL

PHO/IT SDA

MDA

DS

GES

HM

INTERNET

MOH

IND

TOTAL

*Category Price Index=Channel AVG price/Total AVG price**Total AVG price=Value total/unit total**Channel AVG price=Channel value total/ unit total

Needs for differentiation : VISUAL, AUDIO, MDA

Differentiation index for Category

29


DS

0

20

40

60

80

100

120

140

160

LCD

PDP

RPTV CAM

DVD

DS

GES

HM

INTERNET

MOH

IND

TOTAL

�Differentiation needs against IND�Diffferentiation gap: RPTV>PDP>LCD

Needs for differentiation : PDP, PROJECTIONCompetitive pricing for LCD

*Category Price Index=Channel AVG price/Total AVG price**Total AVG price=Value total/unit total**Channel AVG price=Channel value total/ unit total

Differentiation index for Visual

30


92

82

126

97

91

99

69

98

147

83

97

92

92

82

INTERNET

66

62

106

21

35

63

110

22

66

84

72

223

86

59

High-low Gap

9777104143SBS

8997144TOA

7290178HBM

111

87

80

62

95

94

77

78

56

73

75

HM

104

101

97

116

103

125

104

107

114

115

134

GES

118

122

131

172

117

87

161

116

279

159

133

DS

110TOTAL

111EAS

LCD

105DPAP

153PHO, IT

68PDP

169AHS

127

150

226

121

MOH

MDA

SDA

VISUAL

AUDIO

HighHigh--end assortment needed : end assortment needed :

AHS, PDP, AHS, PDP,

HBM, TOA, SBSHBM, TOA, SBS

LowLow--end assortment needed : end assortment needed :

EAS, LCDEAS, LCD

Premium Strategy : Premium Strategy :

AUDIO, VISUAL, MDAAUDIO, VISUAL, MDA

Competitive pricing : Competitive pricing :

SDA, PHO,SDA, PHO, ITIT

For Retailer X

Possibility for differentiation

Differentiation table

31


� PDP

Investment direction

� SBS� DRUM

Differentiation

MoreHigh-end

improvement

By what degree

Large

Small� HBM

� DEN� SHV� CDP/MDP

Large

Less� EAS� DSC� MP3 Competitive

Pricing

Small

� LCD� RC

More Large

Differentiation chart for recommendation

Based on Differentiation table

Based on Directional Policy Chart

Based on Sales efficiency


Area marketing7

33


Category development index in Region XBasis : 5 regions (Seoul, Kyunggi, Incheon, Kyungnam, Kyungbuk) by sales value, 25 PCAT from Jan 2003 to Oct 20005

Home Home

AppliancesAppliances

Consumer Electronics

� Shot-term: CTV, DVD� Long-term: DSC, EAS

� Price sensitive: CTV, EAS

� Short-term: KREF, WM, REF, RC, VAC�Long-term: DEN

0%

100%

CDP/MDP

AHS

RRP

HPS

MP3

DVD

VCR

CTV

CAM

PHO

DSC

EAS

DEN

FP

HBM

IRN

KET

SHV

VAC

RC

MWO

REF

WM

KREF

C.D.I

Price index

CDI (Category Development Index): How developed PCAT in each region?

CDI in the region= Category importance in the region/ Category

importance total

34


Store Brand and Category Development in SBSBasis : 5 regions (Seoul, Kyunggi, Incheon, Kyungnam, Kyungbuk), YTD 2005

Retailer X’ SBS M/S 7%

Region D 16%

(7, 15)

Region C 34%

(4, 13)

Region E 7%(9, 16)

Region A 21%

(12, 11)

Region B 22%

(7, 13)

AVG SBS CDI 13%

----BDI, +CDIBDI, +CDIBDI, +CDIBDI, +CDI++++BDI, +CDIBDI, +CDIBDI, +CDIBDI, +CDI

++++BDI, BDI, BDI, BDI, ----CDICDICDICDI ----BDI, BDI, BDI, BDI, ----CDICDICDICDI

�Market penetration,�Price discount�Category development,

�More participation�Advertisement

*BDI (Brand Development Index): How developed Store brand in each region?*CDI (Category Development Index): How developed PCAT in each region?


Conclusion8

36


Conclusion

� Retailer’s needs are various� Can be focused on either Revenue side or Profit side� Combination of value, volume, price, No of outlets, No of models can explain what retailer want to know

� Value� Volume� Price� Location� Shop

� Identity� Position� Preference

� SWOT

� Sales efficiency� Directions� Area marketing

Retailer needsRetailer strategy

GfK Value


GfK Marketing Services Korea Ltd.

23rd Fl., Goodmorning Shinhan Tower 23-2

Yeouido-dong, Yeongdeungpo-gu, Seoul, 150-712, Korea

Richard Jo

Retail Service Manager

Tel: 02-784-4588

Fax: 02-784-4589

Email: [email protected]

“Thanks”

Presentations & Public Speaking

Retail analytics ASIA workshop_ New perspective on GfK retail analytics