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The Scope of Retail Execution 44% 31% 25% 23% 27% 37% What is the primary goal of your retail execution initiative? EXPERT PERSPECTIVE CUSTOM RESEARCH BY KARA ROMANOW When do you plan to By Joe Bellini, Chief Executive Officer, AFS Technologies SalesSales productivity productivity integrate trade activities 47%47% For companies4747 with retail execution? over $3 billion, CustomerCustomer acquisition acquisition 15%15% sales productivity1515 was cited as the Real-Time Actionable ProfitabilityProfitability 13%13% primary13 13goal by The Scope of Retail Execution Insights:100 Finding Time to LACK OF COHESIVE DEFINITION BUT CERTAINTY PromotionPromotion compliance compliance 13%13% 1313 In progress IN DRIVING SALES PRODUCTIVITY 50% Create the Perfect Store 77 Order/routeOrder/route optimization optimization 7%7% 0 Retail execution has quietly evolved into one of the most talked- 44 % Millions of dollars are spent annually to shape about initiatives for consumer goods (CG) companies in the last CompetitiveCompetitive intelligence intelligence 4%4% 57 few years. For many, it is an off-shoot of a TPM initiative, and the consumer through trade promotions and 11 08 EvaluateEvaluate shelf shelf conditions conditions other incentives. However, many manufactur- for others it is focused more on sales force effectiveness. Buoyed 20% In the next 6 to 24 months 1%1% by the advances in mobile technology and consumer interac- ers have found that execution at the shelf is not 010102020303040405050 0 tion, however, it has caught the attention and the pocketbooks aligning to their plans and they are looking for In the next 2 to 5 years ways06 to achieve the perfect store with a retail of executives trying to stay ahead of the competition. This 9% execution strategy. month, CGT partners with AFS Technologies to understand 21% Not even on our roadmaproadmap What technologies are you considering to support retail The biggest challenge with achieving the which aspects of retail execution are being adopted, what the 04 perfect store is time. It takes time for sales reps challenges are, and how technology is helping. While there are execution goals? Multiple responses permitted to manually capture data through activities predictable trends by company size, we found an initiative that such as shelf and planogram audits, distribu- seems to encompass many processes and lacks a defined focus. 02 tion checks, etc. Ironically those activities take Even the definition of retail execution lacks consensus. for compaNies time away from value-added activities such as While almost one-third of respondents define it as trade com- over $3 biLLION building relationships with store management, pliance, followed by competitive intelligence gathering and a selling-in new promotions and gaining share DSD, almost as many couldn’t fit their definition into one of full of shelf and volume. Even after the data is col- our proposed descriptions. The primary goal, however, for 71% 69% lected, time is required to analyze and confirm companies of all sizes is sales productivity. are already compliancy. integrating This is also where the challenges in current implementations 37% How do you accomplish more in a short these activities. 27% occur: 43 percent struggle to capture data quickly, while over 23% amount of time? Technology is playing a role in one-third reported challenges accessing data from multiple optimizing in-store processes and maximizing sources and presenting to sales in an effective way and keep- rep efficiency while reducing latency and inac- ing field personnel up to date. Thirty percent also struggle to Retail execution Direct store Image platform delivery recognition GPS curacies — by creating actionable insights. highlight important activities to focus on for field sales. When For example, a beverage manufacturer There is asked what additional functionality would be most important, 1 found it now takes less than one minute to com- over half wanted a flexible system that is easily configurable by NO consensus plete its audit activities using leading-edge variables including sales team and geography. definition for 2 technologies that capture, analyze and score Technology is definitely playing a role in addressing many retail execution. How is data gathered in the field managed? store conditions; then assigns the appropriate concerns, but there are discrepancies by company size. Larger response task. With the time it saved, each In fact, 3 companies are ahead of their smaller peers in regards to inte- 58% sales person can invest 60 percent more time grating trade activities with retail execution. Larger companies 21% chose of companies in selling. 4 are also spending more of their IT budget on retail execution “other” Analyzed in Excel weekly under $500M Actionable Insights eliminates the latency solutions, with 43 percent spending over 3 percent compared 44% are using Excel of post mortem analysis by driving opportunis- rather than the to 35 percent of the overall population; conversely, 80 percent 5 tic and corrective action while the rep is still of companies under $250M are spending only 1 percent to 2 5 most common in the store. By adding predictive analytics to percent, compared to 65 percent of the overall population. Many definitions. OTHER the mix, you have a better sense of the lift you while should expect. The results are efficiency, ac- companies are looking to retail execution platforms to support Complex dashboards using 57% curacy and the right focus on the highest value their goals; the platforms will be managed internally by 76 31% real time data used daily percent of respondents and that number jumps to 93 percent of companies activities to increase market share, identify and for larger companies. Data gathered in the field is still managed over $3B have correct any discovered performance gaps and in Excel for 44 percent of companies, with less than one-third complex dash- increase revenue. leveraging dashboards with real-time data. As retail execution Visit consumergoods.com boards. continues to evolve and use cases mature, we expect adoption to download the Small report inside retail rates to grow as the industry adopts a more unified view of how full research report. 25% execution back end technology can be leveraged to improve sales effectiveness. 16 CGT | JUNE 2015 | CONSUMERGOODS.COM CONSUMERGOODS.COM | JUNE 2015 | CGT 17 Consumer Goods Technology May 2015 1. What is your primary industry? Primary Industry % Food & Beverage 44% Apparel / Footwear 21% Home & Garden 21% Health and Beauty 7% Foodservice 2% Over the Counter (OTC) 2% Other 4% 44% Food & Beverage Apparel / Footwear Home & Garden 21% 21% Health and Beauty Foodservice Over the Counter (OTC) 7% 4% Other 2% 2% 2. Size of company by annual revenue: Size of company % $0 to $250M 28% $250 to $500M 18% $500M to $1B 18% $1B to $3B 12% $3B and above 25% 28% $0 to $250M 25% $250 to $500M 18% 18% $500M to $1B $1B to $3B 12% $3B and above 3. What geographic markets do you cover? Multiple responses permitted. Geographic markets % North America 67% Global 33% Latin America 14% Asia Pacific 12% Europe 11% Middle East and Africa 7% 67% North America Global Latin America Asia Pacific 33% Europe Middle East and Africa 14% 12% 11% 7% 4. What is your current role? Current role % IT / Technology 21% Sales / Sales Management 21% Operations / Logistics 19% Sales Operations / Execution 14% Executive / General Management 12% Marketing / Business Development 12% IT / Technology Sales / Sales Management 21% 21% 19% Operations / Logistics 14% Sales Operations / Execution 12% 12% Executive / General Management Marketing / Business Development 5. How does your organization define "retail execution"? Define retail execution % Trade compliance 29% Competitive intelligence gathering 21% Direct store delivery / Van sales 20% Digital merchandising 7% Image / Audio recognition 2% Other 21% Trade compliance Competitive intelligence gathering 29% Direct store delivery / Van sales Digital merchandising 21% 21% 20% Image / Audio recognition Other 7% 2% 6. What is the primary goal of your Retail Execution initiative? Primary goal % Sales productivity 47% Customer acquisition 15% Profitability 13% Promotion compliance 13% Order and route optimization 7% Competitive intelligence 4% Evaluate shelf conditions 2% 47% Sales productivity Customer acquisition Profitability 15% Promotion compliance 13% 13% Order and route optimization 7% Competitive intelligence 4% 2% Evaluate shelf conditions 7. When do you plan to integrate trade activities with retail execution? Integrate trade activities % Not even on our roadmap 21% In progress 50% In the next 6 to 24 months 20% In the next 2 to 5 years 9% Not even on our roadmap 50% In progress 21% 20% 9% In the next 6 to 24 months In the next 2 to 5 years 8. What are your top challenges with your current retail execution solution? Multiple responses permitted. Top challenges % Capturing store check / on-hands really fast 43% Being able to access and combine data from other sources to present to the 36% field representatives on their mobile devices in an effective way Keeping the field personnel up to date (push items, promotions, marketing, 36% pricing, sales information) Being able to highlight the important data / activities for field personnel to 30% focus on Getting meaningful information from the mobile devices back to HQ for 23% effective decision making Having adequate controls to generate and track mandatory activities in the 23% field The ability to modify / enhance the application when new needs arise 21% Having the staff
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