THE SMART SHELF: YOUR PATHWAY TO WINNING IN RETAIL · Ankush Patodi Planogram Hub Lead, Nielsen...

THE SMART SHELF:YOUR PATHWAY TO WINNING IN RETAILA GUIDE ON HOW CAN YOU AS MANUFACTURER WIN AT THE SHELF

Copyright © 2020 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

2Copyright © 2020 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

Ankush Patodi

Planogram Hub Lead, Nielsen Global Markets

WELCOME


INTRODUCTION TO THE WORLD OF PLANOGRAMMING


SHOPPERS

MANUFACTURERS

RETAILERS


LOGISTIC

VISUALFINANCE

RETAILER MANUFACTURER

SHOPPER

PLANOGRAM – A MIX OF ART AND SCIENCE

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MANUFACTURERS

RETAILERS


LOGISTIC

VISUALFINANCE


SHOPPER


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LOGISTIC

VISUALFINANCE


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LOGISTIC

VISUALFINANCE


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SHOPPERS

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SHOPPERS

MANUFACTURERS

RETAILERS


LOGISTIC

VISUALFINANCE


SHOPPER


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SHOPPERS

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SHOPPERS

MANUFACTURERS

RETAILERS


SHOPPERS

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SHOPPERS

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SHOPPERS

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SHOPPERS

MANUFACTURERS

RETAILERS


SHOPPERS

MANUFACTURERS

RETAILERS


SHOPPERS

MANUFACTURERS

RETAILERS



최적화된 플래노그램으로 시작되는 “SMART-SHELF”는 매장별

카테고리 전략을 실제 매장 환경에 적용하기 위해 반드시 필요한

단계이며, “SMART-SHELF”를 구축하는 작업은 제조사와 유통사 모두가

협력해야 하는 하나의 여정입니다. “SMART-SHELF” 구축하는 데 필요한

사항을 살펴보겠습니다.


WHAT DO YOU NEED TO START THE JOURNEY?

STEP 1: PREPARE


PLANOGRAMMING DATA REQUIREMENT HIERARCHY

1) PRODUCT LIST PREPARATION

A. DATA

PROFITABILITY: PRODUCT COST &

DISCOUNTS / MARK-UP

GREAT TO HAVE

GOOD TO HAVE

MUST HAVE

SUPPLY CHAIN REQUIREMENT: DAY WISE DEMAND, REPLENISHMENT AND SUPPLY

INFORMATION

ANALYTICAL REQUIREMENT: UNIT SALES & PRICE

MERCHANDISING REQUIREMENT: PRODUCT CHARACTERISTICS (SEGMENT, SUB SEGMENT, BRAND NAME, ETC.), PACK SIZE,

PACK TYPE, UNIT CASE & PRODUCT IMAGES

BASIC REQUIREMENT: PRODUCT ID (BARCODE / UPC / EAN / RETAILER ID), NAME & PRODUCT DIMENSIONS (HEIGHT, WIDTH & DEPTH)






A. DATA


DISCOUNTS / MARK-UP

GREAT TO HAVE

GOOD TO HAVE

MUST HAVE


INFORMATION








A. DATA


DISCOUNTS / MARK-UP

GREAT TO HAVE

GOOD TO HAVE

MUST HAVE


INFORMATION








A. DATA


DISCOUNTS / MARK-UP

GREAT TO HAVE

GOOD TO HAVE

MUST HAVE


INFORMATION









+

+

FACT-BASED SELLING

RETAILER DATA SHARING

RETAILER COMMITMENT TO CATEGORY MANAGEMENT

MANU

FACT

URER

CAPA

BILITY

TO

BE CA

TEGO

RY “E

XPER

T”

MANU

FACT

URER

STRA

TEGY

SHAR

ING

SPACE & ASSORTMENT MANAGEMENT

FULL CATEGORY MANAGEMENT

JOINT EXTENDED CATEGORY PROJECTS

TRUST

+Source: Nielsen Practical Category Management Workshop

THE CATEGORY MANAGEMENT JOURNEY

2) FIXTURE INFORMATION



ILLUSTRATION ON FIXTURE INFORMATION

SEGMENT WIDTH

SEGMENT HEIGHT

SEGMENT DEPTH

SHELF’S DISTANCE FROM FLOOR

BASE HEIGHT

SHELF DEPTH

SHELF HEIGHT

SHELF WIDTH

Source: Nielsen Spaceman Software was used to generate the output

B. KNOWLEDGE


CATEGORY DEFINITION

TO HAVE A REFRESHMENT DRINKNEED

ALL RELATED PRODUCTS

CLUSTERED INTO GROUPS

INTERCHANGEABLE PRODUCTS

SUBSTITUTABLE PRODUCTS (SEGMENTS)

COLA NON-COLA

Source: Nielsen Practical Category Management Workshop


SHOPPER DECISION TREE

CARBONATED BEVERAGES

SINGLE CONSUMPTION

MULTI CONSUMPTION

COLA

BRAND A BRAND B FLAVOUR A FLAVOUR B

NON-COLA COLA NON-COLA

BRAND A BRAND B FLAVOUR A FLAVOUR B

BRAND A BRAND B BRAND CPACK SIZE BRAND A BRAND C

SHOPPERS ARE MOST LIKELY TO SUBSTITUTE AT THE BOTTOM OF THE TREE

BRAND BPACK SIZE PACK SIZE PACK SIZE

PACK SIZEPACK SIZEPACK SIZEPACK SIZEPACK SIZEPACK SIZE

PLANOGRAM BLOCKING

FLOWMOST LOYAL

MORE VARIETY

LEVEL 3

LEVEL 1

LEVEL 2

NEED ONE SKU AT LEAST IN EVERY NODE TOSATISFY ALL SHOPPERS


C. TOOLS

STEP 2: BUILD A MERCHANDISING STRATEGY


A. PRODUCT PLACEMENT RULE


VISUAL BLOCK ILLUSTRATION

BLOCK 2

IDEALLY MAX. 1.5M

BLOCK 11ST LEVEL OF

SHOPPER DECISION TREE

2ND LEVEL OF SHOPPER

DECISION TREE

BLOCK 3

SUB-BLOCK 1

SUB-BLOCK 2

..3

SUB BLOCK 4

Source: Nielsen Impactful Space Management Workshop


UNDERSTANDING ‘EYE LEVEL’

15°

30°


PREMIUM PRICED PRODUCTS “CURIOSITY” PRODUCTS

HIGH PROFIT “STRATEGIC” PRODUCTS

HIGH ROTATION “MASS/POPULAR” PRODUCT



BRAND A VARIANT 1

BRAND A VARIANT 2 OR

BRAND B VARIANT 1



B. AVOIDING OUT OF STOCKS

STEP 3: BUILD AND OPTIMIZE THE PLANOGRAMS


--

-

CARBONATED BEVERAGES

100%

SINGLE CONSUMPTION

48%

COLA 13%

NON-COLA 35%

MULTI CONSUMPTION

52%

COLA 11%

NON-COLA 41%

BRAND A 5%

BRAND B 8%

FLAVOUR A 15%

FLAVOUR B 12%

FLAVOUR C 8%

BRAND A 4%

BRAND C 7%

FLAVOUR A 18%

FLAVOUR B 16%

FLAVOUR D 7%

-

-

- -

SINGLE CONSUMPTION MULTI CONSUMPTION

COLA COLA

NON-COLA NON-COLA

LEVEL 0

LEVEL 1

LEVEL 2

LEVEL 3

SAMPLE MUD MAP FOR THE CARBONATED BEVERAGE CATEGORY

A. BUILDING THE MUD MAP


HORIZONTAL BLOCKING

GROUP ANALYSIS GROUP FIELD: SEGMENT

MULTIPLE CONSUMPTIONSINGLE CONSUMPTION


B. CREATING THE PLANOGRAM


VERTICAL BLOCKING




C. OPTIMIZING THE PLANOGRAM


SINGLE VS MULTI CONSUMPTION BLOCKING ANALYSIS




COLA VS NON-COLA BLOCKING ANALYSIS

GROUP ANALYSIS FILTER SET: MULTIPLE CONSUMPTION GROUP FIELD: SEGMENT

COLANON-COLA



FLAVOUR BLOCKING ANALYSIS

GROUP ANALYSIS FILTER SET: MULTIPLE CONSUMPTION GROUP FIELD: DESC_A

COLACREAMGINGER

LEMONORANGESODA


BRAND BLOCKING ANALYSIS


GROUP ANALYSIS FILTER SET: MULTIPLE CONSUMPTION GROUP FIELD: BRAND

BRAND ABRAND BBRAND C

BRAND DBRAND EBRAND F

BRAND GBRAND HBRAND I

BRAND J



UNDER/OVERSTOCKED PRODUCTS GROUP: BY PRODUCT TARGET: BY UNITS

UNDERSTOCKED 10%OVERSTOCKED 10%

EXTREME UNDERSTOCKED 20%EXTREME OVERSTOCKED 20%

INVENTORY ANALYSIS

•


TOP/BOTTOM PERFORMER ANALYSIS


TOP/BOTTOM PERFORMING PRODUCTS FILTER SET: MULTIPLE CONSUMPTION FIELD: SALES

TOP 10%BOTTOM 10%

TOP 25%BOTTOM 25%


MULTI VARIABLE ANALYSIS

LOW

VOLU

ME SA

LEHI

GHLOW PROFIT HIGH

MULTI VARIABLE ANALYSIS



SAMPLE OUTPUT - PAGE 1

D. GENERATING THE OUTPUT FOR IMPLEMENTATION

BRAND B LIGHT CAN 330MLBRAND B BOTTLE

400ML BRAND G ORANGE CAN250 ML

BRAND G ORANGE500ML

BRAND I COLA MY CAN250 ML

BRAND I 500ML PET

BRAND A LEMON CAN 250MLBRAND A LEMON CAN

350ML

BRAND C ORANGE CRUSH 500ML

BRAND E ORANGE BOTTLE 400ML

BRAND J CAN 330MLBRAND J PLASTIC

BOTTLE 500ML

BRAND C CREAMSODA CAN

330ML

BRAND CCREAM

SODA 500ML

BRAND ECREAM SODA

BOTTLE 400ML

BRAND ECREAM SODA

BOTTLE 500ML

BRAND C LEMONADE 500MLBRAND C

SODA 500MLBRAND D

SODA 500MLBRAND F

SODA 500ML

BRAND H CAN250ML

BRAND H BOTTLE 500MLBRAND C

GINGER BEERCAN 330ML

BRAND C GINGERBEER 500ML

BRAND F GINGERBEER 400ML

BRAND B BOTTLE750ML

BRAND B PET 2L

BRAND B PET 2L

BRAND I MEGA 2L BRAND H COLAPET 1.5L

BRAND C CREAMSODA 1L

BRAND CCREAM

SODA 2L

BRAND ECREAMSODA

PET 2L

BRAND HBOTTLE 2L

BRAND CGINGERBEER 1L

BRAND CGINGERBEER 2L

BRANDC SODA

1L

BRAND CSODA

PET 1.5L

BRAND FCLUB

SODA 1.25L

BRANDD SODA

1.5LBRAND G MEGA 2LBRAND C

LEMONADE 2LBRAND C

LEMONADE 1L

BRAND JBOTTLE 750ML

BRAND JPET 2L

BRAND A750ML PET

BRAND A2L BOTTLE BRAND E ORANGE

BOTTLE 750ML

BRAND EORANGEPET 2L

BRAND CORANGE

CRUSH 1L

BRAND CORANGE

CRUSH 2L

CARBONATED BEVERAGES PLANOGRAM




SEGMENT VIEW SHELF POSITION PRODUCT POSITION REPORT

NAME: BRAND B LIGHT CAN 330MLPOSITION ON SHELF: 1 FACINGS:10

NAME: BRAND BBOTTLE 400ML

POSITION ON SHELF: 2FACINGS: 7

NAME: BRAND I COLA MY CAN 250MLPOSITION ON SHELF: 1 FACINGS: 9

NAME: BRAND A LEMON CAN 250MLPOSITION ON SHELF: 1 FACINGS: 12

NAME: BRAND J CAN 330MLPOSITION ON SHELF: 1 FACINGS: 10

NAME: BRAND C LEMONADE 500MLPOSITION ON SHELF: 1 FACINGS: 15

NAME: BRAND JPLASTIC BOTTLE 500MLPOSITION ON SHELF: 2

FACINGS: 7

NAME: BRAND ALEMON CAN 350ML


NAME: BRAND I500ML PET


NAME: BRAND HCAN 250ML


NAME: BRAND H BOTTLE 500MLPOSITION ON SHELF: 2 FACINGS: 10

180.00CM45.00CM

45.00CM

45.00CM

45.00CM

45.00CM

45.00CM

159.00CM

134.00CM

102.00CM

71.00CM

43.00CM

14.00CM10.00CM

POSITION

BAY 1.1 SHELF

1 10000000000041 BRAND H CAN 250ML 6

10000000000040 BRAND H BOTTLE 500ML 10

UPC NAME FACINGS

2

10000000000048 BRAND J PLASTIC BOTTLE 500ML 72

BAY 1.2 SHELF

1 10000000000017 BRAND C LEMONADE 500ML 15

BAY 1.3 SHELF

1 10000000000046 BRAND J CAN 330ML 10

10000000000002 BRAND A LEMON CAN 350ML 102

BAY 1.4 SHELF

1 10000000000002 BRAND A LEMON CAN 250ML 12

10000000000042 BRAND I 500ML PET 72

BAY 1.5 SHELF

1 10000000000043 BRAND I COLA MY CAN 250ML 9

10000000000003 BRAND B BOTTLE 400ML 72

BAY 1.6 SHELF

1 10000000000005 BRAND B LIGHT CAN 330 ML 10

SAMPLE OUTPUT - PAGE 2 5Copyright © 2020 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

SHOPPERS

MANUFACTURERS

RETAILERS


PERIOD A$ 14,000

$ 16,000

$ 18,000

PERIOD B

6.85% TEST STORECONTROL STORE

PLAYBOOK VS. RETAILER SPECIFIC PLANOGRAMS

HOW TO MEASURE RETURN ON INVESTMENT?

SAMPLE PLANOGRAM IMPACT ANALYSIS


SHOPPERS

MANUFACTURERS

RETAILERS


LOGISTIC

VISUALFINANCE


SHOPPER


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SHOPPERS

MANUFACTURERS

RETAILERS


3 Gartner’s ROI study by Mike Griswold on How to Increase Revenue and Strengthen Customer Loyalty

WHAT DOES IT TAKE, AND WHAT WILL YOU GET?


LOGISTIC

VISUALFINANCE


SHOPPER


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SHOPPERS

MANUFACTURERS

RETAILERS


WHAT’S NEXT?

33Copyright © 2020 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute. 200239

ABOUT NIELSENNielsen Holdings plc (NYSE: NLSN) is a global measurement and data analytics company that provides the most complete and trusted view available of consumers and markets worldwide. Nielsen is divided into two business units. Nielsen Global Media, the arbiter of truth for mediamarkets, provides media and advertising industries with unbiased and reliable metrics that create a shared understanding of the industry required for markets to function. Nielsen Global Connect provides consumer packaged goods manufacturers and retailers with accurate, actionable information and insights and a complete picture of the complex and changing marketplace that companies need to innovate and grow. Our approach marries proprietary Nielsen data with other data sources to help clients around the world understand what’s happening now, what’s happening next, and how to best act on this knowledge. An S&P 500 company, Nielsen has operations in over 100 countries, covering more than 90% of the world’s population. For more information, visit www.nielsen.com.

SHAPING A SMARTER MARKET™

34Copyright © 2020 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.At Nielsen, data drives everything we do—even art. That’s why we used real data to create this image. Copyright © 2020 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.

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THE SMART SHELF: YOUR PATHWAY TO WINNING IN RETAIL · Ankush Patodi Planogram Hub Lead, Nielsen...

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