Transcript Program Management Office - American Logistics Association

DEFENSE COMMISSARY AGENCY
Category Management Planning & Promotions
ALA Commissary Roundtable, April 1, 2015
Ms. Tracie Russ
Director, Sales
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Overview
Defense Commissary Agency
• Category Management Teams
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• Certification
• Category Management Roadmap
– Consistent processes
– Data
– Scorecards
• Collaborative planning
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Category Management Roadmap
Defense Commissary Agency
• Our objective for today
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– Inform Industry on DeCA Process andYour
Expectations
for Collaborative Planning and Category Reviews
• Panel members
– Mr. Steve Villeneuve, DeCA
– Mr. Jon Sanders, DeCA
– Mr. James Taylor, DeCA
– Ms. KC Remick, Kellogg’s
– Mr. Marc Knowles, P&G
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Evolution
Defense Commissary Agency
• Yesterday
– Limited standardization
– Not part of a strategic management process
– Did not facilitate joint annual plan of trade funds
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• Today
– Standardize processes for identification:
•
•
•
•
•
Strategic Growth
Assortment opportunities
Yearly promotional planning and investment
Incorporation of everyday pricing negotiation
Days of supply (in-stock)
• Tomorrow
– Consistent processes for collaborative strategic planning
– Scorecard for industry and category
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4
Key Components of Program
Defense Commissary Agency
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Category
Management
•Streamline Business Process
•Improve Customer Service
•Utilize Technology for Information Sharing
Shopper Insights
& Shopper
Marketing
Planogram
&
Space
Management
In-Store Execution
&
End to end process to deliver value to
our ever-demanding customers
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Merchandising
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Standardized Practices
Defense Commissary Agency
Category Review
Planogram Review
•
•
•
•
•
• ItemYour
pack
out
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• Size store
Item ranker
Category performance
Line item count
Brand performance
Brand impact
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–
–
–
–
Size 5
Size 4
Size 3
Size 2
Size 1
Templates designed to:
• Manage Strategically Product [categories] over lifecycle
• Optimize Space utilization; analyze effectiveness over time
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• Leverage Business Intelligence
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Resource Sharing
Defense Commissary Agency
Industry
DeCA
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– Category / Shopper Insights
– Strategic role of Category
– Decision Hierarchies Segmentation
– Days of supply objectives
– Best Practices
– Category pricing strategy
– Innovation
– Merchandising Solutions
– Promotional planning
– Performance Metrics
– Performance metrics
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Strategic Planning
Defense Commissary Agency
• Ensure patron satisfaction across all categories
• Identify/invest in categories that drive Patron Loyalty,
Savings,
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How does category perform in DeCA?
(The Why)
Category Index
2.50
– Demographics
– Shopping Occasion
– Assortment
– Price
– Merchandising
– In stock
2.00
1.50
1.00
0.50
-
JUICES/DRINKS-FROZEN
VEGETABLES & GRAINS-DRY
COUGH AND COLD REMEDIES
2.15
2.10
0.31
Category Index
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Spectra & Consumer Demographics
Defense Commissary Agency
Total United States
• Who is our shopper?
• What are they purchasing?
• Demographics
• Identify shopper opportunities
in Remaining Market and All
Other Channels
Race of Head of Household
Race: White (Non-Hispanic)
Race: Black (Non-Hispanic)
Race: Hispanic
Race: Asian (Non-Hispanic)
Race: Other (Non-Hispanic)
Number of Persons
1 Person Households
2 Person Households
3 Person Households
4 Person Households
5+ Person Households
Age of Head of Household
Age 18 - 24
Age 25 - 34
Age 35 - 44
Age 45 - 54
Age 55 - 64
Age 65 - 74
Age 75 or More
Age and Presence of Children
Children Under 6 only
Children 6 - 17 only
Children Under 6 and 6 - 17
No Children
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Private Label
shopper
Index
69.0%
72.3%
12.5%
4.3%
2.2%
12.7%
3.3%
2.1%
105
80
101
77
95
27.1%
32.4%
16.2%
13.2%
11.1%
17.5%
33.8%
17.6%
16.0%
15.0%
65
104
109
121
135
4.2%
15.1%
17.4%
20.1%
19.4%
13.2%
10.7%
3.1%
13.0%
18.0%
21.6%
20.6%
13.7%
10.0%
74
86
104
108
106
104
93
7.4%
18.5%
6.6%
67.5%
7.7%
22.0%
8.0%
62.3%
104
119
122
92
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Assortment/Placement
Defense Commissary Agency
AO 100%
OJ
Segment
Chilled Drinks
Chilled Teas
Super
Premium
Single Serve vs. Multi Serve
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Serving Class
FC
Type
TPP, Trop 50, Minute Maid, Private Label,
Simply, Florida’s Natural, etc.
Brand
Pulp
No Pulp
Low Calorie
Regular
Dole, Simply,
Private Label,
etc.
Minute Maid,
Sunny D, etc.
Form
Health Benefit
Flavor/Fortification
Single
Serve
Size
Apple,
Lemon, etc.
Vitamin Fortified, No Added
Vitamins/Fortification etc.
54/59
vs.
64 oz
89/96
oz
128 oz
Size
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Lemonade, fruit
punch, etc.
Size
Lemon,
Green, etc.
Size
Berry,
chocolate,
etc.
Size
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Space Allocation
Defense Commissary Agency
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Bottom Line Objective
Defense Commissary Agency
Together, we can increase sales and
increase savings to our customers
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Annual Planning
Defense Commissary Agency
Objective: Optimize Promotional Dollars to
Increase Sales and Patron Savings
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– Strategy must fit category role
– Determine pricing strategy (EDLP, MEDLP, Hi/Low)
– Space and assortment depth
– Category seasonality
– Agreement for promotional performance
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Promotional Planner Matrix
Defense Commissary Agency
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Promotional Matrix Packages
Defense Commissary Agency
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Promotional Planner & Matrix
Defense Commissary Agency
• Industry Submission for Requested Promotional Plan
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PROMOTION PERIOD
CATEGORY:
SEGMENT:
XX
Size
MANUFACTURER
•
•
•
•
BROKER
BRAND
PRODUCT DESCRIPTION
UNIVERSAL PRODUCT CODE
Strategy
Dollar Share
Unit
Paton Savings
Share
Hi low
EDLP
Modified
DeCA Cost
Promotion Type
Reg (EDI) Promo
Cost
Price
PWR BUY
MGR SPEC
OTB
Optimal Period Timing
Pricing Strategy (EDLP, Modified EDLP, Hi/Low)
Requires Approval from Category Manager
NTT Pending
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Promotional Evaluation Indicator
Defense Commissary Agency
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Post Promotion Effectiveness
Defense Commissary Agency
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Scorecard in Development
Defense Commissary Agency
Shopper
Sales / Market
Penetration
Volume Growth/Decline
Buying Rate
Category Share
Store Loyalty
Private Label Share
Gaps
Productivity
/ Vendor
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Out of Stocks
Fill Rate
Assortment
Market Basket
Promotion Effectiveness
Conversion Rate
Trips
Days of Supply
Pricing
Distribution Speed
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Speed to Market
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Working Together
Defense Commissary Agency
• Delivery of the Benefit
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• Patron PASSION
– What the patron wants to buy
– When the patron wants to buy it
– Undeniable savings and value
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DEFENSE COMMISSARY AGENCY
Thank You!
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