MPM Analysis Sample

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

1. V 2.0
INTER-ORGANIZATIONALSOLUTIONSFOR
MERCHANDISING
PERFORMANCEMANAGEMENT
MARKETANALYSIS& BUYERS’ GUIDE
© 2009 VSN Strategies June 23, 2009

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

3. Economies of Scale?
© Copyright 2009 VSN StrategiesMerchandising Performance Management 3
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
0
10
20
30
40
50
60
70
80
19921993199419951996199719981999200020012002200320042005
Top 4Top 8Top 20
U.S. Grocery Retailing Concentration, 1992-2005
Grocery retail
consolidation has
concentrated 62%of U.S.
grocery sales within the
top 20 chains; 36% within
the top four chains.
Along with scale
economies, however,
comes intensified store
operational complexity.
How has this combination
affected profits?
%
Introduction & Summary

4. Context
© Copyright 2009 VSN StrategiesMerchandising Performance Management 4
•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
Introduction & Summary

5. Objectives of This Guide
© Copyright 2009 VSN StrategiesMerchandising Performance Management 5
•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
•Evaluateand comparecompeting solutions
•Provide a buyers guide for retail managers
Introduction & Summary

6. Implication
•The RCP industry presently suffers from a near
absence of INTER-organizationalsolutions
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.
© Copyright 2009 VSN StrategiesMerchandising Performance Management 6
Market Overview

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

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

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