V 2.0
INTER-ORGANIZATIONAL SOLUTIONS FOR
MERCHANDISING
PERFORMANCE MANAGEMENT
MARKET ANALYSIS & BUYERS’ GUIDE
© 2009 VSN Strategies June 23, 2009
Contents
© Copyright 2009 VSN StrategiesMerchandising Performance Management 2
• Introduction & Summary
• Market Overview
• Solution Sector
• Solution Providers
• Strategic Considerations
• Recommendations
• Appendix
Contents
Economies of Scale?
© Copyright 2009 VSN StrategiesMerchandising Performance Management 3
Sources: Monthly Retail Trade Survey, Census Bureau; Company annual reportsNote: 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
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
Top 4 Top 8 Top 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
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
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
• Evaluate and compare competing solutions
• Provide a buyers guide for retail managers
Introduction & Summary
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.
© Copyright 2009 VSN StrategiesMerchandising Performance Management 6
Market Overview
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
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, SEM and MPM
elements, as well as and an underlying
INTER-organizationalportal communications
platform, device-agnostic, and supported by
merchandising “storecards”.
Strategic Considerations
Special Offer:
20% Off for ISI Network Full Members
James Tenser, Director
http://instoreimplementation.com
520-797-4314
9Merchandising Performance Management © Copyright 2009 VSN Strategies
Conclusion / Take Action
Top Related