Part of a presentation sustained by me at PM Conference in Arandelovac, Serbia 2012 - it shows some insights on how sales can be increased if market execution is properly monitored!

1. How to increase sales by monitoring
in-store execution
Excellence is doing ordinary things
extraordinary well
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2. Market
Background
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3. Store is a real battlefield around consumer
More than 50% of
purchasing decisions
are made by consumers
in-store*
*Source: Nielsen OmniShopper 2010, 2244 respondents

4. Market gets overcomplicated but Consumers
choose narrow range of products
In a number of categories less than 20% SKUs make 80% of value sales
~7%
SKUs 80 %
Source: Nielsen Study 2011
Chocolate
of value
Bars sales
~ 32%
~8% SKUs
SKUs
~ 18 % Milk UHT
Beer SKUs
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5. Over half of shoppers are ready to switch to another brand in case
of out-of-stock
Household cleaning products 7 50 32 12 Wait until it was available
Beer 4 51 23 8 15
Buy an alternative brand
Personal Care Items 11 36 44 9
Staple Food 5 57 28 10
Buy the same brand at another store
Dairy Products 5 52 33 9 1
Confectionery 3 63 23 11 1 Look for the same brand but choose
something slightly different (eg. different
pack size / flavor)
Packed Coffee 7 40 43 9 2
Doesn't buy
Carbonate Soft Drinks 9 56 24 10 1
Source: Nielsen Shopper Trends, Romania 2012
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6.  Less than 5% of shops comply with agreements
(must sku list) Business
25,8 Case
 2/3 of shops fulfill less than 70 %
19,1
14,1
11,2
9,7
5,3
4,2 4,6
2,0 2,2
1,6
0 - 9,9 % 10 - 19,9 % 20 - 29,9 % 30 - 39,9 % 40 - 49,9 % 50 - 59,9 % 60 - 69,9 % 70 - 79,9 % 80 - 89,9 % 90 - 99,9 % 100 %
Listing Fullfillment - All Shops/All Categories % of Shops
Source: Nielsen Study 2011
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7. Simple ROI measurement
Impact of Availability rates in actual Sales
The Power of higher AVL
Research* shows that if you improve
your AVL with 1%:
AVL pre-change Sales increase
~ 80% ~ 2-4%
~ 90% ~ 1-2%
~ 95% ~ 0.5-1%
above < 0.5%
*Source: A research done by Scientific Retailer at Wal-Mart in 2008
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8. Collect relevant
data in a
relevant way
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9. Monitor in-store execution by auditing vital KPIs
Availability, Out-of-stock Facings,
Shelf Price and RSP
Share of shelf
? compliance
1 2 3 4 5
Promotion execution & POP 2nd placements, expositions, Customized QNR (merchandising
communication compliance coolers standards etc)
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10. Availability versus Presence
It is important to be present in a store but is more important
to be really AVAILABLE to the shoppers
 Am I only on the shelf?
 Am I only in the cooler?
 Am I only on a secondary
placement?
I have to be everywhere!
Where can I find MY
beer?
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11. Availability versus Minimum Stock
In a dynamic market, during a hot summer, the rotation speed of the
beer category could be high
 Am I at risk to be in out-of-
stock soon?
 Do I have forward stock issues
on the shelf?
 Do I have forward stock issues
in the cooler?
Available but
not for long
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12. Visibility of Secondary & POSM
It is important to be present in a store but is more important
to be really AVAILABLE to the shoppers
 Are my secondary placements
accessible?
 Are my POSMs visible?
 Do I make efficient use of
secondary’s and POSM
materials?
The store can be split
in different areas
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13. Shelf Potential versus Share of Shelf
You can optimize your distribution if you use your
full shelf potential
 How high is my Share of Shelf?
 How much of my current shelf
potential do I use on the warm
shelf?
 How much of my current shelf
potential do I use in the
cooler?
Unused
Potential
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14. Report in “real-time” and
Act Immediately
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15. Collect today – Report tomorrow – Act Immediately
Auditors get daily plan Auditors move Shop banner picture Fill QNR predefined
of shops according to a route and GPS coordinates for each shop
Automatic QC in parallel
Audit available for client Manual QC in office Upload finished QNR to Picture of
via WEB if required server via GPRS predefined objects
3-24 h
Score carding of stores Sales reps performance review
Alerts delivery to problem owner
and sales reps and improvement

16. • Situations like missing Must Have Products, missing 2nd
display, missing POSM, no exclusivity in the cooler are
pre-defined
• When these situations are found in stores, alerts are sent
by email to the problem owner on the client side
• On daily / weekly basis alerts are accumulated in the report in
order to help sales managers track their people performance
• Optionally - a sales rep gets alert but does not know which
stores are in the sample that month, so he takes care of all
the shops to improve his scorecard / performance
• In some projects we make a follow up phone calls in which
we collect the reasons for the negative situations we come
across in the stores
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17.  A tailor-made comprehensive tool for measuring
compliance versus target / benchmark at store level and
at sales representative level
 An actionable instrument used for improving execution
when completed with the alerts feature
 The basis for an incentive scheme of the sales force
 Continuous monitoring, alerting and rewarding will lead
to improvement of execution
What we want to be….
and where we really are?
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18. Use on-line reporting – update on daily basis
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19. • Over 50% of buying decision are made by consumers in front
of the shelf;
• Over 60% of the consumers will switch to another brand /
product in case of Out of Stock situations;
• Less than 70% of stores have all the agreed / defined Must
Have Products on shelf;
• Improving important KPIs as On Shelf Availability, Share of
Shelf, POSM can lead to increase in sales;
Implementing an intelligent in-store audit system can lead to
significant improvement in important KPIs and in this way
influence the actual sales
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20. And the truth is…
Excellence Is Doing Ordinary Things
Extraordinary Well
John V. Gardner, 1912 - 2002
American Writer and Secretary of Health,
Education and Welfare
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21. Thank You!
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