Optimizing Space in the Dairy Case

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Optimizing Space in the Dairy Case
Presented at
October 26, 2005
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Milk is Important Because

• Almost every household buys it
• Few products are purchased as frequently
• Its a key source of department growth
• Strongest space productivity in department
• Milk is the foundation
  of the dairy
  department

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Its Also Vulnerable Because

• Retailers
• Perceive dairy space as fixed
• Stock Fluid Milk multiple times a day
• Need space for new dairy products
• So, fluid milk routinely
  finds its space under assault

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Wheres The Disconnect?

• If milk is so strong
• And retailers know it
• Why is milk's space under assault?

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Challenges We Observed

• Lack of Consistent Point-of-View
• No Standardized Approach
• Limited Availability of Tools
• Today, retailers are using space optimization
  tools from

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What Do We Need to Do?

• MilkPEP has
• Listened to retailers and processors
• Analyzed retailer performance data
• Developed an industry-accredited approach
• Constructed a turn-key tactical framework

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MilkPEPs Effort Produced
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What Youll Hear About

• How are retail practices impacting fluid milk
  space?
• How can we improve the current space allocation
  process?
• How can milk processors work more effectively
  with retailers to optimize space?

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What We've Learned

• New items present challenges
• Retailers rely on traditional allocation methods
• Major suppliers are driving the process
• Best-in-class suppliers integrate the retailers
  category strategies
• Retailers want store-level optimization plans

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What Youll See

• A New Space Allocation Model
• Utilizes retailer data
• Offers a multi-dimensional approach
• Integrates retailer strategy
• Provides actionable direction
• to optimize performance

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Model Overview
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Five-Step Process
Excel based, point and click environment
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Two Data Import Options
Use retailer or syndicated data to run model
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Retailer Specific
Analysis thats real world and customized
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Beyond Sales Dollars
Analysis with a multi dimensional approach
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Using Retailer Strategy
Allows user to input retailer strategy
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Using Retailer Strategy
Weighted against strategic value to retailer
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Analyzing Results
Several pre-built report and chart options
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Assuring Flexibility
Model allows for focus on whats important
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Varying Levels of Analysis
Model allows for various levels of detail
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Enabling Action
Model makes actionable recommendations
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Custom Charts
Ready for use in retailer presentations
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Custom Charts
Ready for use in retailer presentations
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Custom Charts
Ready for use in retailer presentations
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Qualifying Model Results
Other factors to consider
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Five Easy Steps Towards Optimizing Space
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A New Tool

• Fact is
• Milks shelf space is threatened
• Retailers are looking for solutions
• Not allocating milk space effectively
• We need a common framework
• The tool is here!

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Thank You!
www.bishopconsulting.com