P1252428576KyWbU

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Re-Inventing Retail Making a Difference at the
Shelf
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Discussion Topics

• Project Foundation/Timeline
• Re-Invent Retail Strategy
• Re-Invent Retail Coverage Model
• Technology Tools
• Hows It Working?

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Re-Invent Retail Strategy
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Strategic Partnersfor Retail project
Internal Acosta cross-functional team
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Acosta Strategic Priorities
Strategic initiatives to address key industry
dynamics

• Re-invent Retail
• Scorecarding

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Project Goal

Significantly Improve Distribution, Shelving,
New Item Execution, and Merchandising
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What Drives Performance for the Key Elements of
Retail Services?
Rank ordered importance of drivers (1-5)
Distribution
Shelving
New item execution
Merchan-dising
Overall average
Driver
1
1
1
1
1.0
Call frequency
2.3
2
2
2
3
Time in Store
Customer Expertise
3.3
4
4
3
2
Category/ Product knowledge
3
3
4
4
3.5
5
5
5
5
4.8
Data/ Technology
Frequency time in store are the most important
drivers of superior retail
execution
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New Retail Model Key Principles

• Maximize SCALE through Syndicated Coverage
• Enables greatest frequency duration in highest
  volume stores
• At the point of opportunity more often
• Fewer storesavg. 14 per rep greater store
  expertise
• 50 less drive timeMore time in-store
• Dedicated Retailer Vertical Teams
• Greater retailer penetration
• Enables more effective work in store
• Full-Time Associates on coverage
• Reduced turn-overHigher Skill
• Utilize part time for set work
• Focused by Trade Class
• Dedicated Fresh Team
• Requires unique skill sets
• State-of-the-art Technology system

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Re-Invent Retail Coverage Model
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Continuity Coverage Segmentation

• Grocery
• Mass
• Natural/Specialty

Channel
Retail coverage variables

• Volume
• Buying authority
• CDI BDI

Store characteristics

• Core store
• Dairy, Frozen, Grocery, HBC/GM
• Fresh Products
• Produce, Deli, Meat

Product line
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Segmentation by channel and product lines

Coordinated Offering With Focused, Differentiated
Services
Grocery
Mass
Fresh Products
Core Store
WalMart

• Fresh foods team

• Syndicated grocery team

Coverage team

• Dedicated Wal-Mart Teams
• Anchor Team-WMSC
• Syndicated-Div 1

Frequency

• 2X per mo. 1x per mo.

• 61 ACV Weekly coverage
• 86 ACV 2x/month covg

• 2X/month-WMSC
• 1X/month-Div 1

Key drivers of value

• Ability to identify stores with high buying
  authority
• Knowledge of product portfolio
• Relationships with store-level decision-makers

• Duration of coverage - work
• Frequency of visits
• Ability to respond to voids and OOS rapidly
• Ability to leverage POS data proactively and
  reactively

• In stock rates-99
• STS new items-98/4 wks
• Modular/Merchandising compliance
• Improve product awareness with dept. level
  penetration/training

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Priorities are Designed to Focus on the Highest
Value Work
New Items Distribution Voids Merchandising
Questions Tasks (To-Dos)

Priority 1 Priority 2 Priority 3 Priority 4

• Rules engines designed to insure prioritization
  consistency compliance
• Additional matrix for individual SKU volume
• Gatekeepers insure focus and allow for potential
  extreme exceptions

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Technology Tools
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In-store opportunity identification tools
technology

• DMS In-store Distribution Management System
• Voids identified by retailer, by store, by period
• Resides on intranet site on ASSET
• Accessible to all Business Managers
• Data Prism
• system for analyzing retailer POS data
• identifies distribution voids
• Void Algorithm
• Developed with Bain
• Accurately identifies void items driving
  efficiency
• MEI
• Enterprise retail system
• Store-specific APLs reside on PPC
• Communicates store specific opportunities
• Data sources
• Syndicated
• Retailer POS
• TD Linx

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Tools and Technology Store-Specific Call Plan
National Strategy

• Store Call Script
• (P1) New Items
• (P2) Voids
• (P3) Questions
• (P4)Tasks

Local Opportunities Activities
Acosta Prioritization System
Store Specific APL
Void Data

• Store Specific
• Date Specific

Syndicated
Retailer POS
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Hows It Working?
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Post Re-Invent Retail Results

• Store coverage at 97
• Call per store averaging 2.3 per store per month
  
• New Item speed to shelf at 63 in 4 weeks
• Closing gt90 of all identified voids each month
• Averaging 9 hours coverage/store/month
• Completing 95 objectives/call
• Scan rates have improved 1.2

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• Up 1.5 POINTS since inception of Re-Invent
  Retail
• Over 32,000 net distribution points added.

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Distribution Analysis
Manufacturer C Pre vs. Post Rollout
Distribution Analysis Pre Rollout vs. Post
Rollout
Source Manufacturer C Dashboards, Pre-Rollout
Data (1/21/04) and Post-Rollout Data (11/06/04)
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Fastest Manufacturer Speed to Shelf Results
Ever!!!
2003
2004
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Brand G Void Closure Q4 04
8,600,000 annual impact for Brand G
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How has RIR ImpactedManufacturer B at Retail So
Far?

• Distribution improving
• scan data reflect positive changes in
  distributionplus 2.8 points or 3.7
• Voids decreasing
• 9.5 no scan reduction versus July 04
• Nearly 5000 voids filled
• New Item Speed to Shelf
• STS has increased 50 (based on retail
  availability)
• New Item at 94 tagged where authorized

Based on MEI reports/ scan data.
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Acosta Re-Invent Retail Model Recap

• Scale
• Creates the foundation for most efficient model
• Syndicated model provides for greater efficiency
• Greater frequency and duration in the store
• Focused by Trade Class
• Allows for greatest retailer knowledge
• Superior tools and technology
• Identifies greatest opportunity stores
• Laser focused scripted tasks
• Superior in-store performance
• Full-time associates on coverage teams
• Vertical by customer provides greater focus
• 42,000 calls per month/2.4 average per store per
  month
• At the point of opportunity