MERCHANDISE AND CATEGORY MANAGEMENT CONSULTANCY SERVICES AND INSIGHT SOFTWARE TO OPTIMISE ASSORTMENT, PRODUCT, PRICE AND STOCK

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1 MERCHANDISE AND CATEGORY MANAGEMENT CONSULTANCY SERVICES AND INSIGHT SOFTWARE TO OPTIMISE ASSORTMENT, PRODUCT, PRICE AND STOCK 1 Merchandise and Category Management

2 MERCHANDISE AND CATEGORY MANAGEMENT Ensuring the right product is in the right place at the right time and price is critical to rewarding customer experiences and, as such, fundamental to successful retail. And while investing in the right categories to do so can be a challenge the complexity of modern retail and the pace of change across the competitive landscape surely don t make it simple the rewards of making customer-led investment decisions across categories and around product, price, promotion and merchandising are worth the effort: increased customer loyalty and profitable sales growth. What s the benefit to putting customers at the heart of your category and product decisionmaking? When you understand which customers are shopping and how their behaviours are impacting each category and each product s sales, you understand where to invest more and where to invest less. dunnhumby s Merchandise and Category Management consultancy services and insight software provide the necessary insights to make the right strategic and tactical decisions. We help businesses develop their Merchandise and Category Management capability with powerful offerings in four key areas: CATEGORY LEADERSHIP ASSORTMENT, DISPLAY AND NEW PRODUCT LAUNCH PRICE AND PROMOTION INVENTORY AND STOCK MANAGEMENT WE HELP RETAILERS AND FMCGS LIKE YOU TO: Identify the role each category plays in your overall offer and focus investment on the categories in which you want and need to win Establish end-to-end category management approaches from collaborative category strategy development to in-store initiative implementation to post-implementation tracking of performance Understand the implications of your current pricing strategy and its impact on customers, margin and revenues Develop price and promotion plans to drive sales and margin, monitor their performance against forecasts and adjust as necessary Optimise your category assortment and layout whilst meeting the right customer needs to drive improved loyalty Improve on-shelf availability through better demand forecasting and real/near time analysis of which products are going out of stock and why 2 Merchandise and Category Management

3 CATEGORY LEADERSHIP Our Category Leadership offering transforms a deep understanding of your customers and categories, market and competitor conditions into plans and strategies that grow customer loyalty, sales and margin. Through our consultancy-led approaches and flagship self-service insight solution, Shop, we provide a flexible end-to-end proposition which helps embed best practice into your ways of working and serve up continuous insights leading to year-on-year growth. The main difference in range reviews with dunnhumby is the process structured with the retailer. The integration of an effective analysis and all the planning of actions and product innovation helped us advance with innovation and Category Management guidelines much more than we could in the past. Unilever - National Sales Manager PRODUCTS AND SERVICES Category Leadership Our end-to-end, integrated, modular approach to category management offers both strategic and operational perspectives, right through to post-implementation tracking. Shop dunnhumby Shop provides a deep and seamless understanding of how customer behaviour, in-store and online, is impacting your brand or category performance. Powered by basket-level detail from millions of households, refreshed weekly, Shop reveals granular customer insights like no other. Selfservice, comprehensive and intuitive insight reports provide you with answers to the majority of your brand and category questions, when you need them. Category Roles, Priorities and Goals We ll work with you to establish an analytical framework including key financial, customer and market metrics to assist you in optimising investments across categories, thereby maximising loyalty, sales and margins across the entire store. Retail Heartbeat Market Basket Analytics This powerful Software as a Service (SaaS) solution harnesses your shopper data to deliver unique insights analyses such as basket diversity, affinity and brand loyalty, allowing you to make assortment and promotions decisions that drive lift. 3 Merchandise and Category Management

4 ASSORTMENT, DISPLAY AND NEW PRODUCT LAUNCH Incorporating consultancy-led solutions and software-based tools, our Assortment, Display and New Product Launch proposition offers a range of products and services to help determine your optimal category assortment, provide specific recommendations on how to best organise your shelf space and monitor new product introductions to allow course corrections in near time. PRODUCTS AND SERVICES Category Assessment We work with retailer category managers or buyers to develop strategies for categories built on an in-depth understanding of customers, market conditions and the role each category plays in a retailers portfolio. Shelf Review A web-based application enabling retailers and FMCGs to plan a change to product assortment whilst meeting customer needs and driving loyalty. With interactive views and a powerful Recommendation Engine, Shelf Review turns simple observations of current performance metrics by product into reasons for that performance and delivers actionable recommendations. LaunchPad An interactive tool based on real shopping behaviour, LaunchPad helps you quickly and accurately evaluate and understand the performance and key drivers of a new product and, when used regularly, uncover insights that drive value. As such, we ll work closely with your commercial teams to embed a structured and efficient process to monitor new product performance and take action to drive sales or to de-list depending on the situation. Shop New Product Evaluation report (NPE) The Shop NPE report allows you to understand the success of a new product launch in relation to competitor launches, the incremental value driven to your brand and to the category, and whether you ve reached your desired target market. 4 Merchandise and Category Management

5 PRICE AND PROMOTION Price and promotion are two of the most important levers a retailer can pull but doing them right isn t easy. Competition is fierce as discounters and pure online retailers grow, and price transparency is greater than ever. To build loyalty, it s crucial to strengthen customer price perception without reducing prices so low that you limit financial growth or worse. dunnhumby can help you focus on what s important. Our strategic process, proprietary insights, engagement approach, and cuttingedge software suite create sustained pricing power for retailers that want to grow customer loyalty and long-term profit. From strategy to execution, we can help you avoid the race to the bottom and deliver prices and promotions that are meaningful to your customers. SELECT PRODUCTS AND SERVICES Pricing and Promotion Healthcheck An essential starting point for benchmarking the maturity of your price and promotion capability, this service identifies opportunities for improvement and delivers a clear action plan to take your business to the next level. Price Perception Tracking and Insights A combination of attitudinal and behavioural shopper insights, this service offers a model of competitive price perception which reveals where competitors are outperforming you, so you can better prioritise investments. Pricing and Promotion Loyalty Drivers More promotions or fewer? Which categories are delivering the most customer value? Our attitudinal and behavioural research answers the big questions to help drive improvements in price perception and customer loyalty. 5 Merchandise and Category Management

6 PRICE AND PROMOTION Cont. SELECT PRODUCTS AND SERVICES PriceStrat: Price and promotions optimisation Developed with the world s leading retailers and powered by the best in demand science, PriceStrat helps model and execute pricing and promotional scenarios in real time with unparalleled accuracy. It features a flexible and sophisticated pricing rules engine, automated pricing and unique customer segmentation capabilities. PriceStrat Analyzer Our companion reporting suite for PriceStrat compares the performance of your price and promotion scenarios against forecasts so you can adjust and continuously improve. Promotions Analytics Our web-based dashboards are essential to understanding how your recent promotions performed and why, and determining which tactics and mechanics maximise results. evaluating Warren Buffet February 2011 The single most important decision in a business is pricing power. 6 Merchandise and Category Management

7 INVENTORY AND STOCK MANAGEMENT One of the biggest challenges any retailer faces is lost sales caused by out-of-stock positions. From delayed purchase to buying from a competitor, the impact is significant. To combat this, we offer the Heartbeat Availability Suite, three related solutions all utilising a powerful real-time, fine grain prediction engine with machine learning techniques to quickly and accurately create demand forecasts or analyses on current or near time sales, out of stocks and other anomalies. PRODUCTS AND SERVICES Improving your in-stock position is not easy. From a shopper perspective, out of stock is much broader than a product not being in the right place in the supply chain damaged or short dated stock, missing shelf edge labels and poor merchandising all have an impact. Traditionally, tacking out stocks has been too difficult or too expensive. The Heartbeat Availability Suite of solutions - which can operate stand-alone or in combination tackles the issue from multiple directions, and can also unlock the field sales resources already calling on stores to be part of the solution. Inbound forecasting to stores Real time in-store alerts Outbound next day issue reports HB Forecasting HB Alerting HB OOS Reporting What it is: Rolling 7-day demand forecast improving the accuracy of demand required at an item/store level What it s for: Increasing sales through reduced OOS occasions, eliminate manual store ordering What it is: In-store real time alerts of anomalous sales patterns delivered to a mobile device with inbuilt root cause analysis What it s for: Improving re-stocking and identifying and fixing issues which lead to out-of-stocks What it is: Accurate OOS reporting delivered daily to Head Office, Stores and Suppliers What it s for: Improving sales through reduced OOSs, driving strategic and operational improvements, and quantifying the cost of OOSs 7 Merchandise and Category Management

8 dunnhumby is the world s leading customer science company. We analyse data and apply insights from nearly one billion shoppers across the globe to create personalised customer experiences in digital, mobile, and retail environments. Our strategic process, proprietary insights, and multichannel media capabilities build loyalty with customers to drive competitive advantage and sustained growth for clients. dunnhumby employs over 2,000 experts in offices throughout Europe, Asia, Africa, and the Americas and works with a prestigious group of companies including Tesco, Monoprix, Raley s, Macy's, Coca-Cola, Procter & Gamble, and PepsiCo. GET IN TOUCH Contact us at for the tools and insights you need make smarter decisions in assortment, product, price and stock. 8 Merchandise and Category Management dunnhumby 2015

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