Performance Optimizer

Offer the products your customers are looking for.

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•Alignyourspaceandassortmentwithcustomers’needs—onlineandoffline.

•Achievegreatermarketpenetrationandshare,strongersalesandprofits,andlastingshareholdervalue.

•Utilizeaunique,scalableplatform,supportedbyproprietaryproductsandintellectualproperty.

•Matchyouroffermorepreciselytoyourcustomers.•Revisesegmentsandcategories,adjustmacrospace,

redesignandprototypestores—quickly,easilyandeffectively.

•Planfromthebigpicturetothefinedetail.•Developtheoptimalportfolioandassortment

foreachclassoftrade.

Expected benefits

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A healthier brand portfolio for a global consumer healthcare manufacturer.

The client has an incredibly complex portfolio, with more than 160 brands worldwide. They asked Accenture to develop a long-term solution that would make it easier to manage all these different brands.

Using the performance optimization tool, we simulated various options for reducing the portfolio, and identified the potential financial impact.

Ultimately, Accenture identified the potential to increase gross profit by £9 million, from only a 10 percent reduction in the portfolio.

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Case studies.

The space for success for a leading global specialty retailer.

Facedwithredundantfloorplans,thisclientlackedtheresourcesandorganizationtosupportadvancedspaceoptimizationanalytics.Wedevelopedanintegratedbusinessprocessandoperationsmodelthathelpedaddvaluebyprovidingreportsonthereturnonspace,managingperformanceandothermacroandmicrospaceoptimization.

The result was an estimated $130 million improvement in margin benefit over the next three years.

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Consumer goods or retail re-assortingEasily add or delete items from a segment or category.

Retail re-flow Adjust macro-segment and category space in an existing aisle.

Store re-designReallocate macro-space in an existing store or department.

Store re-formatCreate prototypes for any size of new store.

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Make your merchandising work as hard as your people.

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What does Accenture’s Performance Optimizer do?

Customer-centric merchandising Unique processes and analytics help match your

space and assortment to customers’ needs.

Portfolio optimization Unique processes and analytics help manufacturers

optimize the product portfolio and assortment in each class.

Performance Optimizer

One Product

Two core offerings

Underpinned by analytics

The right products in the right place.

Segmentation

Basket

Profitabilty

Attribute

Clustering

Halo and Cannibalization

Activity-based costing

How do you make sure your portfolio, assortments, category space and store layouts are all working as hard for you as they could?

Accenture’s Performance Optimizer combines two core offerings, to deliver a unique and scalable solution.

Combining customer-centric merchandizing with portfolio optimization, the solution helps you synchronize assortment and space with customer demand.

It’s the ideal solution for nearly every aspect of assortment and space optimization.

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Optimizing your assortment and space begins with understanding your customers. Results depend on answering five key questions:

• Who are they?• Where do they shop?• Why do they buy?• What do they want?• How can you shape the demand?

Match your assortment and space to customer demand.

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Store and category clusteringGenerate elasticity curves

Optimization by store cluster

Customer segmentation and profilingStore clustering by product segmentLoyalty-based optimization metrics

Demand profilingProduct attribute regression modeling

Product interaction analysis

Portfolio optimization Transferable demand modeling

Incremental impact analysis Strategic performance index (VPE)

Business rules

Optimal space allocation and assortmentConsumer goods and retail optimization

Optimize macro and micro-space and assortmentActivity–based costing

Scenario modeling and customer planograms

Accenture’s Performance Optimizer is a scalable platform that helps you find the answers and build an integrated assortment and space allocation process.

The solution provides insights into your customers and their segments, automating the process of store clustering by product segment. Through demand profiling, you can analyze the attributes and interactions of different products.

Using modeling and activity-based costing, the solution helps you estimate the income potential of each combination of product and store. This will help you move confidently from proof-of-concept to self-enablement (such as creating new store formats).

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A merchandising tool like no other.

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Our Performance Optimizer solution helps you understand your customers and what they’re looking for when they come to your stores.

Then it gives you the tools to deliver exactly that.

You won’t find anything else like Accenture Performance Optimizer. It’s a unique — and uniquely powerful — solution. We’re confident it can transform the commercial success of your stores.

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Find out more.

David L. Brown — Global:david.l.brown@accenture.com+1 312 693 0424

Brandon Young — North America: brandon.r.young@accenture.com+1 678 657 5866

Christine Removille — Europe:christine.removille@accenture.com+33 153 235 245

Patricio De Matteis — APAC:patricio.de.matteis@accenture.com+65 64 107 007

Jose A. Goncalves — Latin America:jose.a.goncalves@accenture.com+55 115 188 2882

Accenture Performance Optimizer is part of Accenture Interactive. Accenture Interactive offers a comprehensive suite of contemporary marketing services and software to CMOs and brand leaders to drive up marketing performance, drive down the cost per interaction and create relevant consumer experiences on a massive scale. By fusing consumer analytics, technology platforms, and world-class marketing talent, we help the world’s leading brands understand the big picture and the fine detail, and enable campaigns targeted at the most profitable segments.

About AccentureAccenture is a global management consulting, technology services and outsourcing company, with more than 244,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$25.5 billion for the fiscal year ended Aug. 31, 2011. Its home page is www.accenture.com

Copyright © 2014 Accenture All rights reserved. Accenture, its Signature, and High Performance Delivered are trademarks of Accenture.

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