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Upgraded approach in tracking & improving in-

store performance

Excellence is doing ordinary thingsextraordinary well

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Background

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1900’s 1980’s 2000’s1950’s 1990’s

But it has to be MY

cracker!

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Improving POS execution is a strategic goal

Business tactical objectives are:

• Create an audit system with a clear measurable

impact on the quality of execution at POS level

• Gain better insight about quality of execution of

competition and set benchmarks

• Improve visibility and gain better equipment

utilization at stores that are not covered by you

directly

• Improve sales force efficiency by scoring

performance

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More than 50% of purchasing decisions

are made by consumers in-store*

On Shelf Availability

Shelf Price

Share of Shelf & Merch

Standards

Secondary Display

Presence

POSM Presence

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• Brand /SKU Subcategory Product type

• Regular, Holidays

• Launches, Summer

• TT, MT, HORECA

• SOS Availability

POSM- Price 2nd placements

Facts,

KPI’s

Segments, Regions

Categories, competition

Seasonality, Special

occasions

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Tracking Distribution in 2013

Tracking Distribution

There was a huge improvement in technology over the last decade – all this can help us improving our market

execution

2003 2013

Level 1 –Sales Agent / Distributor

Level 2 – Go deeper, specific address

Level 3 – Still not sure where it is

Level 4 – Check Using “Street Level View”

Level 4 – Check Using “Street Level View”

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Share of Forward Stock

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Share of Forward Stock reflects the actual pieces from a specific product or brand versus their competitor or the overall

category

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0.0%

5.0%

10.0%

15.0%

20.0%

Jan

'12

Feb

'12

Mar

'12

Apr

'12

May

'12

Jun

'12

Jul

'12

Aug

'12

Sep

'12

Oct

'12

Nov

'12

Dec

'12

Share of Forward Stock Producator 1

Market Share (Vol) Producator 1

Share of Forward Stock was proved to be a better predictor of future sales than other Sales Fundamentals KPIs for range of

categories

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0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Jan

'12

Feb

'12

Mar

'12

Apr

'12

May

'12

Jun

'12

Jul

'12

Aug

'12

Sep

'12

Oct

'12

Nov

'12

Dec

'12

Share of Forward Stock Producator A

Market Share (Vol) Producator A

Share of Forward Stock was proved to be a better predictor of future sales than other Sales Fundamentals KPIs for range of

categories

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…especially if you want to do collection “incognito”, without the knowledge of the target retailer

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Use a standard PDA with highly customized software in order to collect FW

Stock fast and with high accuracy

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Real Time Alerts for Main Issues

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•OOS / Minimum stock•Secondary Placement execution•Cooler Execution•RSP execution•Share of Shelf

RESPONSIBLE Ivan V. SALES REP: Danor M.

Channel Point Name CitySURVEY

DATECategory Brand SKU AVAILABLE

MT Konzum Zagreb 01.10.2011

Categ 1 Brand 1 SKU 1 No

Categ 2 Brand 2SKU 2 No

SKU 3 No

Exemple de Alerte:

Real-time information for immediate action

Possible Alert Types:

Am probleme de stoc?

ALERT!

ACTION!

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Integrated Incentive Schemes

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Performance Evaluation Model –Modern Trade & Traditional Trade

Availability of SKUs 40%

Value-for-Money 15

Standard 10

Premium 10

Super Premium 5

Share of Shelf according to agreement 20%

Share of Forward Stock vs Market Share 25%

Secondary Placements 15%

Secondary Placements Present 5

Secondary Placements Loaded 5

Share of Secondary Placements 5

TOTAL 100%

Availability of SKUs 40%

Value-for-Money 15

Standard 10

Premium 10

Super Premium 5

Share of Forward Stock vs direct competitor 20%

Secondary Placements & POSMs presence 10%

Cooler Presence & Usage 30%

Exclusivity 10

FiFo respected 5

Light fully on and cooler plugged in 5

Merchandising respected 5

TOTAL 100%

MODERN TRADE TRADITIONAL TRADE

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Availability for focus brands - 50% weight Available for order (70%) Avl in Menu (30%) Score

Coffee Type 1 % %Coffee Type 2 % %

Share of Visibility - 30% weight in score Share Target Weight Comments

Branded Accessories V1= Focus Brand / all 1.1, 1.2, 1.3 40%Adjusting factor

as per HORECA MSPOSM - intl/external V2= Focus Brand / all 1.1, 1.2, 1.3 35%Share in menu V3= Focus / all 1.1, 1.2, 1.3 25%

100% Visibility score for on-premise

Coffee Machine- 20% weight in HORECA Scoredefinition Score

Presence of Coffee Machine% of outlets with Focus BrandCoffee Machine Coffee Machine

score on-premise Exclusivity in shop

% of exclusive stores with Focus BrandCoffee Machine

Performance Evaluation Model - HoReCa

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Image processing for visual equity

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Using pictures and image processing technology

The evaluation of Merchandising Standards can be highly enhanced by using image processing technology

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Retail Environment is more and more complicated

In Store Execution can make the difference;

Improving Execution is easier then ever if we are

using the right methodology and technology

But nothing can replace the human factor!!!

Involve your Field Teams even more in improving

execution by measuring and reward their

performance in-store;

Give your Field Teams all the support in terms of

access to latest tracking tools;

Use the know-how of specialists in implementing an

in-store tracking system;

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"Today I will do what others

won't, so tomorrow I can

accomplish what others

can't."

Jerry Rice, American Football Player

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Thank You!

Cristina ValeanuClient Service Director South-East EuropeRetailplusE: cristina.valeanu@retailplus-jv.comT: +40.757.577.800