Retail analytics ASIA workshop_ New perspective on GfK retail analytics

GfK. Growth from Knowledge – Analysis for Retailers, RS Workshop 06
Analysis for Retailers
Richard Jo
Retail service Manager
GfK Marketing Service Korea Ltd.
11th Sep. 2006

Agenda
1
Concept of retail analysis
2 Store identity: Who the retailer is?
3 Identification business issues
4 Long-term strategy: Directional Policy Matrix
5 Targeting: Preference analysis
6 Positioning: Differentiation
7 Area marketing
8 Conclusion

Concept 1 of retail analysis

4
GfK. Growth from Knowledge – Analysis for Retailers, RS Workshop 06 20 September 2014
What retailers are concerning about?
Marketing Activities
e.g. Pricing, Promotions
Customer Service
Layout, display
Location
Open outlets
Localization for local needs
Merchandising
Assortment
Consumer Trend
Identity
Targeting
Positioning
Differentiation
RReevveennuuee
PPrrooffiitt

5
Retail Analysis Flow
Paradigm
Identification
Business Issues
Critical
reasoning
Actionable
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
GES
Wide range Discounter
Selected Assortment
Retailer X
IND
Mass Premier
Online
HM
DS
Price sensitive Brand sensitive
Revenue
Market Share
Growth Rate
Market Development
Turn-over frequency
Profit
Differentiation in identity
Sales efficiency
Assortment
Exclusive model
X-Axis: AVG Price
Y-Axis: Number of model selling

8
TV Homeshopping
110
GES
134
Internet shoppingmall
Hypermarket
75
82
IND
87
DS
133
LLooww ffiinnaanncciiaall rriisskk HHiigghh ffiinnaanncciiaall rriisskk
RReettaaiilleerr XX
113366
AVG Price
index
100
Identity concept
AVG Price by each channel

Identification 3 business issues

10
Retailer X Hypermarket GES Total
7.7%
20.6%
12.2%
4.3%
32.8%
1.6%
19.4%
1.5%
35%
30%
25%
20%
15%
10%
5%
0%
Last 2 Months Apr. vs. Mar
0.1%
19.5%
26.8%
3.8% 3.5%
2.3%
9.1%
3.0%
30%
25%
20%
15%
10%
5%
0%
21.3% 21.6%
16.1%
5.0%
37.6%
1.2%
30.5%
0.1%
40%
35%
30%
25%
20%
15%
10%
5%
0%
[Consumer Electronics, 48%] [Home Appliances, 52%]
[Sales Growth by Channel]
[CE HA Sales Growth by Channel]
[Market Share trend]
35.0%
Retailer X Hypermarket GES
38.0%
40.7% 40.8%
15.0% 14.2% 13.5% 13.9%
4.8% 4.5% 3.8% 4.5%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Jan 06 Feb 06 Mar 06 Apr 06
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
-100 -80 -60 -40 -20 0 20 40 60 80 100
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
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)

Total YOY growth
12
Growth: Category performance (Table)
M/S Growth Analysis Retailer X M/S Monthly Sales growth 2 Monthly Sales growth
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
Cat
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 5 4.0 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 2 7.6 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 9 4.7 4.2% 4.9% 55% 23% 18% 28% -2% -91% 32% 54% -11% -9% -51% -7% 114% 17% 516% 924% 522%
VI PDP TV 7 1.6 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 2 9.2 5.1% 6.0% 14% 18% 12% 22% -11% 25% 21% 5% 14% 19% 20% -43% -20% 19% -15% 46% -5%
VI CRT TV 3 6.4 4.1% 4.8% 8% 15% 24% 19% 31% -1% 7% -20% -18% -5% -21% -5% -50% -22% -33% -41% -38%
MD DRUM WM 4 5.3 3.6% 4.0% 12% 12% 7% 11% 8% 48% 8% 2% -20% -8% -22% -17% -45% -22% 69% 111% 52%
MD TUB WM 1 8.0 5.0% 5.5% 2% 10% 15% 7% -30% 49% 1% 3% 0% 4% -12% 12% 35% 0% -8% -6% -2%
SD Vacumme cleaner 1 5.9 7.1% 7.8% 3% 8% 12% 7% 10% 19% 1% -8% -3% 2% -9% -26% 10% -11% 4% 53% 6%
MD Single REF 1 9.8 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 1 2.4 2.4% 2.5% -1% 6% -28% 27% 6% 19% 3% 37% 4% -36% 19% -25% 51% -9% -26% -5% 35%
VI Projection TV 1 5.2 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 1 9.4 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 1 3.3 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%

13
Assortment: Sales participation by category
Total market/ Growth Sales %
(B.Won) Sales % vs. LM vs. LY Retailer X vs. LM vs. Total vs. Hyper vs. GES
Category
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%

14
Pricing: ASP trend by channel type
229
250
241
254
249
261 260
288
387
422
455
482
314
331
339
361
550
500
450
400
350
300
250
200
Jan-06 Feb-06 Mar-06 Apr-06
+6% vs. Last Month
Retailer X
Hy permarket
+6% vs. Last Month
General Electro
Stores
+11% vs. Last Month
TO TA L
+5% 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

15
Sales efficiency
Basis : 5 regions (Seoul, Kyunggi, Incheon, Kyungnam, Kyungbuk) based on 24 PCAT Dec~Nov 2004 and Dec~Nov 2005
92%
85%
90%
101%
76%
100%
95%
111%
69%
87%
95%
87%
81% 84%
96%
Retailer X GES HM
Audio Visual PHO IT SDA MDA
MP3 121% 139% 114% 107% 88% 100% 83%
*Sales efficiency = Sales growth / Sales participation growth
Sales
efficiency
Participation
Growth
Sales
efficiency
Participation
Growth
Sales
efficiency
Participation
Growth
ORG Sales
Growth
Retailer X HM GES

Long-term strategy:
Directional Policy Matrix 4

17
Market Share of Retailer X
DEN 1.6% 31.4% 10.0% 5.6% 8.4%
FP 6.9% 13.6% 7.5% 29.8% 21.8%
HBM 3.3% 31.7% 6.6% 13.1% 23.1%
IRN 4.4% 16.2% 4.7% 22.2% 22.6%
SHV 2.1% 32.0% 12.3% 12.6% 13.2%
TOA 4.7% 10.4% 3.9% 17.8% 32.1%
KET 5.0% 21.6% 4.5% 21.1% 29.9%
RC 3.2% 2.4% 5.5% 31.4% 17.9%
MWO 4.5% 3.1% 9.1% 38.1% 19.5%
SBS 2.3% 9.4% 7.6% 40.2% 15.4%
SING 1.8% 1.1% 6.0% 51.2% 11.2%
KREF 1.1% 3.8% 7.3% 30.3% 11.9%
DRUM 2.6% 7.8% 5.3% 50.0% 14.2%
TUB 3.3% 2.3% 5.8% 42.1% 18.1%
Weak 1.1% AVG 2.2%3.3% Strong
ADP 1.5% 11.2% 7.8% 7.3% 8.2%
AHS 1.6% 8.9% 6.4% 35.6% 14.8%
HPS 2.0% 9.1% 10.6% 14.8% 9.9%
DPAP 1.3% 5.5% 32.6% 14.4% 9.0%
FLAT 4.2% 3.2% 4.9% 43.3% 22.6%
LCD 0.6% 11.7% 2.9% 45.3% 10.9%
NFLAT 1.4% 0.5% 10.5% 38.7% 19.1%
PLASM 1.6% 17.7% 0.7% 46.2% 14.1%
RPTV 1.5% 5.2% 11.2% 21.7% 10.6%
DVD 6.7% 4.5% 6.5% 26.4% 26.0%
VCR 2.9% 6.2% 3.2% 28.6% 28.6%
CAM 0.3% 11.4% 5.9% 13.3% 6.8%
Ph PHO 0.6% 12.0% 4.4% 8.2% 15.7%
ot
o
EAS 1.9% 7.5% 12.2% 25.1% 11.8%
MED 1.1% 5.9% 7.1% 5.4% 5.6%
CIP 3.3% 2.5% 1.6% 5.6% 11.5%
IT
DSC 1.2% 2.7% 22.3% 12.5% 6.7%
Vi
su
al
RRP 7.1% 2.5% 5.0% 35.0% 27.1%
Au
di
o
PCAT Retailer DS IND GES HM PCAT Retailer DS IND GES HM
TOTAL 2.2% 7.6% 10.0% 31.4% 13.7%
M
D
A
VAC 3.1% 3.5% 10.9% 30.9% 15.3%
S
D
A

18
Market Attractiveness
Attractive More or Less Not Attractive
Market
Size
Value
Growth
Rank PCAT
1 PDP 213.2% 9.0%
2 DSC 50.7% 12.0%
3 LCD 358.5% 4.0%
4 SBS 2.3% 15.0%
5 KREF 3.1% 8.2%
6 FLAT -4.5% 8.2%
7 RC 15.5% 3.6%
8 DRUM -6.1% 5.3%
9 DVD 143.2% 1.4%
10 EAS 27.9% 2.3%
Market
Size
Value
Growth
Rank PCAT
11 SGL -3.1% 4.3%
12 DPAP -11.0% 4.6%
13 TUB -6.4% 3.6%
14 VAC -7.5% 2.9%
15 RPTV -35.9% 5.4%
16 DEN 24.6% 0.3%
17 KET 18.9% 0.3%
18 MWO -12.7% 1.0%
19 AHS -36.9% 2.5%
20 FP -18.4% 0.7%
Market
Size
Value
Growth
Rank PCAT
21 IRN -11.0% 0.5%
22 RRP -13.9% 0.7%
23 SHV -19.3% 0.9%
24 CAM -41.4% 2.0%
25 PHO -36.5% 0.6%
26 HBM -19.3% 0.1%
27 TOA -29.7% 0.1%
28 ADP -78.1% 0.2%
29 HPS -69.1% 0.1%
30 VCR -85.9% 0.2%
31 NFLAT -85.6% 0.1%
*Rank = Value Growth Ranking + Market Size Ranking

19
Business Strength
Strong Weak
PDP, DSC, SBS, RC, DRUM,
EAS
SGL, DPAP, VAC, RPTV, DEN,
AHS
FLAT, DVDP
TUB, KET, MWO, FP
LCD, KREF
IRN, RRP, HBM, TOA SHV, ADP, HPS, VCR, NFLAT CAM, PHO
Market
Attractive
Invest /Grow
Selectivity/Earnings
Harvest /Divest
Directional Policy Matrix for each product High Low
Opportunistic
development
Manage for
cash
Maintain market Selective
position
FLAT, DVDP,
DRUM, SBS, RC
Strategy Invest for growth
Increase dominance
Differentiation
Category expansion
Price Aggressive for lead
Stabilize or Raise Maintain Raise Aggressive for share
Promotion Aggressive
limit Maintain Minimize Aggressive
Upgrade
management
Allocate key Cut back Invest
managers
Personnel Tighten
Differentiation
Category expansion
Aggressively
prune
Emphasize
product quality
Prune less successful
differentiation
Assortment
Forego share Invest more
for profit
Market Maintain for earning Maintain
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 analysis 5

21
Consumer channel preference for digital convergence
9.5%
4.3%
3.5%
4.7%
DSC
EAS
DPAP
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
IND, 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
High Market Share
Star Cash Cow
DRUM, 3.3%
High Attractiveness Low Attractiveness
PDP, 1.7%
RC, 3.4%
EAS, 2.2%
SBS, 2.1%
DSC, 1.3%
KET, 6.0%
TUB, 3.6%
VAC, 3.4%
FP, 5.5%
RRP, 7.5%
MWO, 4.7%
CRT, 4.5%
KREF, 1.2%
SGL REF, 1.8%
DVD, 7.2%
SHV, 2.1%
AHS, 1.8%
IRN, 4.7%
HBM, 4.2%
PRJ TV, 1.4%
MP3P, 1.3%
VCR, 5.0%
DEN, 1.7%
CDP/MDP, 1.4%
PHO, 0.9%
HPS, 2.3%
LCD, 0.6%
CAM, 0.3%
Low Market Share
Problem Children Dog

23
Business portfolio comparison by stock turn-over
Retailer X Other Hypermarket General Electro Store
10% 10%
11%
26%
38%
11%
42%
53%
Value Volume
12% 12%
7%
21%
26%
12%
55%
54%
Value Volume
5%
11%
9%
22%
9%
14%
78%
53%
Value Volume
Dog
Problem
Children
Cash Cow
Star

24
Retailer X’ Star
Base: 5 regions Online, 2005
How consumers prefer buying the PCAT from the Retailer X?
Consumer Preference= AVG unit share/ Retailer X unit share
Sales Unit Consumer
Retailer X
Unit Share
8.5%
Retailer X
Market Share
KET 6.0% 200%
8.0%
Market
Attracti
veness
Retailer X
Unit
12 FP 5.5% 51,556 188%
13 CRT 4.5% 86,387 7.3%
170%
8 TUB 3.6% 22,452 4.3%
101%
7 RC 3.4% 61,038 4.2%
98%
9 VAC 3.4% 61,978 4.9%
116%
3.7%
Sales Value
Retailer X
Value
1,192,983
1,806,546
20,078,271
6,265,314
7,046,234
3 DRUM 10,297,761 3.3% 15,932 87%
Cash Cow Total 52,092,027 3.9% 335,767 5.7%
133%
Retailer X 125,306,772 2.3% 638,001 4.3%
100%
53%
5,404,918
10
36,424
Preference
Category (000’ KRW)
How important this category? 42%

25
Category price (Assortment class) for top 14 items
Base: 5 regions, 29 PCAT
2,760
1,544
How consumers prefer the price when buying the PCAT from the Retailer X?
Price preference for the PCAT= Consumer preference/ Retailer X AVG sales
358 275 279
price index
33
703
35
232
396
3,116
2,210
633
1,018
424
266
124
353
289
97 46
723
41
280
427
3,790
2,538
748
430
136 134 48
969
48
444 410
646
963
115 87
251
1,377
PDP
LCD
DRUM
SBS
DSC
EAS
RC
TUB
VAC
KET
KREF
FP
CRT
SGL REF
Retailer X HM GES TOTAL
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%
PDP
LCD
DRUM
SBS
DSC
EAS
RC
TUB
VAC
KET
KREF
FP
CRT
SGL REF
Retailer X HM GES

26
Comparative category price ratio to consumer preference
Base: 5 regions, 29 PCAT
How consumers prefer the price when buying the PCAT from the
Price preference for the PCAT= Consumer preference/ Retailer X
80%
36%
Retailer X?
AVG sales price index
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%
PDP
LCD
DRUM
SBS
DSC
EAS
RC
TUB
VAC
KET
KREF
FP
CRT
SGL REF
Retailer X HM GES

Positioning: 6 Differentiation

28
Differentiation index for Category
DS
AUDIO
280
260
240
220
200
180
160
140
120
100
80
60
40
20
0
VISUAL
Needs for differentiation : VISUAL, AUDIO, MDA
SDA PHO/IT
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

29
Differentiation index for Visual
DS
160
140
120
100
80
60
40
20
0
LCD
PDP
CAM RPTV
DVD
DS
GES
HM
INTERNET
MOH
IND
TOTAL
Differentiation needs against IND
Diffferentiation gap: RPTVPDPLCD
Needs for differentiation : PDP, PROJECTION
Competitive 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

30
INTER
NET
82
92
92
97
83
147
98
69
99
91
97
126
82
92
High-low
Gap
59
86
223
72
84
66
22
110
63
35
21
106
62
66
HM
MOH
TOTAL 75
110
73
56
78
77
121
226
150
127
AUDIO
VISUAL
SDA
MDA
PHO, IT 94
153
DPAP 95
105
AHS 62
169
PDP 80
68
87
LCD
EAS 111
111
GES
134
115
114
107
104
125
103
116
97
101
104
DS
133
159
279
116
161
87
117
172
131
122
118
HBM 178 90 72
TOA 144 97 89
SBS 143 104 77 97
Possibility for
differentiation
For Retailer X
PPrreemmiiuumm SSttrraatteeggyy ::
AAUUDDIIOO,, VVIISSUUAALL,, MMDDAA
CCoommppeettiittiivvee pprriicciinngg ::
SSDDAA,, PPHHOO,, IITT
HHiigghh--eenndd aassssoorrttmmeenntt nneeeeddeedd ::
AAHHSS,, PPDDPP,,
HHBBMM,, TTOOAA,, SSBBSS
LLooww--eenndd aassssoorrttmmeenntt nneeeeddeedd ::
EEAASS,, LLCCDD
Differentiation table

31
PDP
Investment direction
SBS
DRUM
Differentiation
More
High-end
improvement
By what degree
Large
HBM Small
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

7 Area marketing

33
Category development index in Region X
Basis : 5 regions (Seoul, Kyunggi, Incheon, Kyungnam, Kyungbuk) by sales value, 25 PCAT from Jan 2003 to Oct 20005
HHoommee
CDP/MDP
100%
AApppplliiaanncceess
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%
AHS
RRP
HPS
MP3
DVD
VCR
CTV
CAM
PHO
DSC
EAS
DEN
FP
IRN
HBM
MWO
KET
RC
VAC
SHV
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 SBS
Basis : 5 regions (Seoul, Kyunggi, Incheon, Kyungnam, Kyungbuk), YTD 2005
+BBBBDDDDIIII,,,, ++++CCCCDDDDIIII -BBBBDDDDIIII,,,, ++++CCCCDDDDIIII
Region D 16%
(7, 15)
Retailer X’ SBS M/S 7%
Region C 34%
(4, 13)
Region E 7%
(9, 16)
Region A 21%
(12, 11)
Region B 22%
(7, 13)
AVG SBS CDI 13%
+BBBBDDDDIIII,,,, --CCCCDDDDIIII -BBBBDDDDIIII,,,, --CCCCDDDDIIII
Market penetration,
Category development, Price discount
More participation
Advertisement
*BDI (Brand Development Index): How developed Store brand in each region?
*CDI (Category Development Index): How developed PCAT in each region?

8 Conclusion

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 needs
Retailer strategy
GfK Value

“Thanks”
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: richard_jo@gfkasia.com

Retail analytics ASIA workshop_ New perspective on GfK retail analytics

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