Creating Profitable Localized Assortments and Space PlansJDA Collaborative Category Management
Current Consumer – Retail – Supplier Dynamics Prove ProblematicChallenges and Opportunities
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Sales Outlet Showroom Fulfillment Center
The Role of the Store in the Omni-Channel Journey Continues to Expand
Specialty
And Performance Expectations of Trading Partners are Increasing
Shelf Productivity Promotion Inventory Management
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
• Resets are on the rise• Thousands of POGs = 6 months to
produce• Retail data is vast and plentiful• Data volume is not manually consumable• Ability to extract value from data is limited
Retailers Move to Localization:Strain on Productivity / Precision
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
What Value do Retailers Seek from their Trading Partners?
• Happy Customers• Category Growth• Effective Local Assortments• Shelf Productivity• Store Compliance• Value-Add Partnerships
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Yet, Brand Loyalty and Experiences on the Decline
2010 33%Source: Deloitte
“Must Have” Brands
2012 29%
88%
Source: Deloitte
Move to Private Label?
27%Moving Back to Brand?
15%Source: IPG Media Labs
Store shopper satisfaction is declining
per year
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Manufacturers Turn to Choice:SKU Counts are Increasing
Number of SKUs in Grocery grew
50%between 2003 and
2010.
Source: Food Marketing Institute
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Category Managers Struggle to “Do It All”
“My sales are flat, and I’m starting to lose shelf space.”
“I can’t meet my reset deadlines.”“Regardless of how many new people I
hire, there’s only so many planograms I can produce.”
“My business plan isn’t convincing without meaningful insights.”
“How can I demonstrate better value to my retailer?”
“My sales are flat, and I’m starting to lose shelf space.”
“I can’t meet my reset deadlines.”“Regardless of how many new people I
hire, there’s only so many planograms I can produce.”
“My business plan isn’t convincing without meaningful insights.”
“How can I demonstrate better value to my retailer?”
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Making the Category Management Leap
Planogram Development
Gut-Feel Decisions
Fixed Resets
“Contributor” Status
Dynamic Adjustments
Proactive Insights
Analytics-Driven Decisions
“Collaborator” / “Trusted Advisor”
Laggard Leader
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
• Aligned Business Goals• Integrated and Automated
Tools• Deep Analytics• Reliable Performance
Measurement• Interactive, Corporate-to-
Field Collaboration
What Do Category Managers Need to Have?
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
JDA Collaborative Category Management
Creating Profitable Growth with Localized Assortments
Empowering category management professionals to move from manually intensive tasks to proactive, analytics-driven insights that grow category sales and margins for both suppliers and retailers
Mobility and TaskManagement
Automation and Workflow
Planogram Precision & Volume
Consumer Insights& Analytics
EXECUTION
CollaborativeCategory
Management
PLANNING
EXECUTION
Access & DeliveryJDA Cloud
Business AgilitySustainable ROI
Upgrade & Optimization
Process & PeopleStrategy and ProcessOrganizational DesignChange Leadership
Continuous Improvement
Assortment
JDA Collaborative Category Management• Localizing Assortments and Plans• Maximizing Sales and Optimizing Space• Creating Trading Partner Value• Driving Profit
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Problems Solved:Insightful Assortments
Offers Aligned with Local Shopper PreferencesImproved Turns and Sales per Sq Ft.
Improved Customer ExperiencePrecise Space Allocation
AFTER JDA CollaborativeCategory Management
Variety Mismatched w/ Local PreferencesAssortment Never Aligned with
Space StrategyPlan Profitability Was Always
QuestionableOne-Size-Fits-All Assortment
BEFORE JDA CollaborativeCategory Management
Inventory Waste | Unfulfilled Shopping Higher Sell-Through | Winning Experiences
Experienced double-digit percent sales increases
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Problems Solved:Localization
Non-productive Space, Missed SalesCategory Manager Productivity Drain
Makeshift, In-Store EditsPoor Compliance to Plan
Unsatisfied Shoppers
BEFORE JDA Collaborative Category Management
Fitted to Local Store Fixture and Sales GoalIncreased Shelf Productivity
Higher Productivity by AutomationBetter Compliance to PlanMuch Happier Shoppers
AFTER JDA CollaborativeCategory Management
Limited Space Productivity | Store Strategy Misalignment Customer Satisfaction | Higher Sales Growth and Turns
Experienced 4pts of growth overtraditional cluster POG
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Problems Solved:Mobility
Planograms Integrated with TaskInteractive Field Collaboration
Improved ComplianceChain-wide Visibility
Mobile Execution
AFTER JDA CollaborativeCategory Management
Unreliable Plan to Field CollaborationLimited Visibility to Execution
Sporadic ComplianceAd-Hoc Field Feedback
Reliance on Paper POGs
BEFORE JDA CollaborativeCategory Management
Underutilized Space | Missed Opportunities | Bad Experiences Productivity | Maximized Revenue | Better Experiences
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
JDA Collaborative Category Management Suite
Provides end-to-end category management capabilities delivering sales growth through collaboration and planning, empowered with consumer
insights and advanced automation.
High Sales per Square Foot / Meter • Scalability through Automation
ONLY
“Better identification of product assortment for each point of sale has helped us
increase sales and customer satisfaction.”
Roberto FranciChief Operating Officer,
Conad Del Tirreno
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Collaboration, alignment, visibility, monitoringIncreased consumer relevance (customer loyalty)
Supply chain efficiency and stock turnA higher return on space
Business efficiency via reduction in operational costsIncreased sales and profitability
Overall improvement in bottom line contribution
JDA Localized Assortments
Optimal Utilization of Inventory & Space
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Collaborative Category Management
Consumer Insights & Analytics
Targeted Assortments
Localized Planogram
Automation & Workflow
Mobility & Task Management
ONLY
Precision • Monitoring • Growth
Happy CustomersHappy Retailers
Profitability
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
Guided by the Industry’s Most Experienced Professionals
400+
1,300+
Retailers
Manufacturers
Image courtesy: alpha
300,000+Stores
Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL
http://www.jda.com/solutions/collaborative-category-management/
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