Free preview of the Merchandising Performance Management analysis and buyers\' guide from ISI Network

1. INTER-ORGANIZATIONAL SOLUTIONS FOR
MERCHANDISING
PERFORMANCE MANAGEMENT
MARKET ANALYSIS & BUYERS’ GUIDE
© 2009 VSN Strategies June 23, 2009
V 2.0

2. Contents
Contents
• Introduction & Summary
• Market Overview
• Solution Sector
• Solution Providers
• Strategic Considerations
• Recommendations
• Appendix
Merchandising Performance Management 2 © Copyright 2009 VSN Strategies

3. Introduction & Summary
Economies of Scale?
U.S. Grocery Retailing Concentration, 1992-2005
% 80
Top 4 Top 8 Top 20 Grocery retail
70 consolidation has
60 concentrated 62% of U.S.
50
grocery sales within the
top 20 chains; 36% within
40 the top four chains.
30 Along with scale
20 economies, however,
comes intensified store
10
operational complexity.
0
How has this combination
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
affected profits?
Sources: Monthly Retail Trade Survey, Census Bureau; Company annual reports
Note: Sales based on North American Industry Classification System (NAICS)
From: Economic Research Service/USDA, http://www.ers.usda.gov/Briefing/FoodMarketingSystem/foodretailing.htm
Merchandising Performance Management 3 © Copyright 2009 VSN Strategies

4. Introduction & Summary
Context
• Despite retail industry consolidation…
– Industry earnings and ROI are flat
– Operating complexity is up
• Despite progress in supply chain effectiveness
since 1996…
– Store-level in-stock performance is unimproved
• Store-level performance may be slipping…
– But we can’t really be certain, because we don’t
yet have the tools or practices in place to assert
control over In-Store Implementation
Merchandising Performance Management 4 © Copyright 2009 VSN Strategies

5. Introduction & Summary
Objectives of This Guide
• Provide overview of the significant In-Store
Implementation communications opportunity
• Identify/define classes of ISI solutions
• Profile existing competitors in these classes
– Solutions offered – Performance
– SWOT analyses – Leadership
• Evaluate and compare competing solutions
• Provide a buyers guide for retail managers
Merchandising Performance Management 5 © Copyright 2009 VSN Strategies

6. Market Overview
Implication
• The RCP industry presently suffers from a near
absence of INTER-organizational solutions
capable of supporting a high-level of store
merchandising (ISI) competency.
• While new offerings are coming to market,
early-mover opportunity is far from closed.
• This indicates an opportunity with large
potential financial rewards.
Merchandising Performance Management 6 © Copyright 2009 VSN Strategies

7. Solution Sector
Three (Linked) ISI Solution Areas
Work Force Store Execution Merch. Performance
Management Management Management
• Manage • Manage activities • Manage outcomes
employees • Field force • Planogram
• Time clock automation • Promotions/events
• Scheduling • Task or process • Distribution
• Human Resources efficiency • Plan-Do-Measure
orientation orientation orientation
• INTRA- • INTRA- • INTER-
organizational organizational organizational
All enabled by some form of multi-user communications platform
Merchandising Performance Management 7 © Copyright 2009 VSN Strategies

8. Strategic Considerations
MPM is ISI Solution Sweet Spot
Work Force
Management A COMPREHENSIVE
In-Store Implementation
solution would incorporate
WFM, SEM and MPM
elements, as well as
Merchandising Store and an underlying
Performance Execution INTER-organizational
Management Management portal communications
platform, device-agnostic,
and supported by
merchandising “storecards”.
Merchandising Performance Management 8 © Copyright 2009 VSN Strategies

9. Conclusion / Take Action
Special Offer:
20% Off for ISI Network Full Members
James Tenser, Director
http://instoreimplementation.com
info@instoreimplementation.com
520-797-4314
Merchandising Performance Management 9 © Copyright 2009 VSN Strategies