Archive for November, 2009

Thanks, and Black Friday

Saturday, November 28th, 2009

The lots were full today. 

Not just Best Buy,  Walmart* , Costco and the like but Office Depot

Now I cannot convert that into $$ or trends, but it looked pretty positive. 

Based on four conversations in the Costco gas line, they were bargain seekers.  But of course,  ALL of the ads focus on the deals so the consumers WOULD be looking for the deal. 

It also looked like Trader Joe’s was doing quite a business and they had an ad or two focused on Black Friday. 

I did NOT see Jewel or Dominick’s participating nor did I see a lot of CPG led ad efforts.  One might have thought….but.

(more…)

Regaining Plan Compliance Equals Big Returns, Small Investment

Sunday, November 15th, 2009

Day after day, week after week category and shelf plans are made.  Plans are communicated to the store, brokers and reset teams.  Team supervisors lead the charge and changes are made at the shelf.  What does the space management team know about each store’s shelf set?  What decisions does the store manager override?  What decisions are the reset team leaders forced to make during the reset?  What unplanned changes occur to this carefully orchestrated plan in the weeks and months following the reset?  Do any of these changes work their way back up the line?  Or is the whole process more like a game of Telephone?Planning, implementing, maintaining and running the store’s business is expensive.  Money is spent creating and implementing the plans.  Hopefully, money is made when the plans are complete.   You are already spending the money, a lot of it.So, here is the question, “How do you know you are spending money effectively?”  Measuring the implementation and maintenance is hard, but critical in managing this money and the results of the investment.Recent research by ShelfSnap evolved the definition of out-of-stocks to include products that are in the PLAN but that are in fact missing from the shelf.  This includes:1.    Traditional Out of Stocks2.    Assortment Voids3.    Short facingsDistribution voids and short facings, have been found to be every bit as big a problem as traditional out of stocks.  While traditional out of stocks affect 8% of products on the store shelf forfeiting 3-4% of sales, assortment voids are at least another 8% or larger and more detrimental to sales because the voids are day in and day out.  

(more…)

The Chasm, Part Deux!

Thursday, November 12th, 2009

I read Crossing the Chasm, by Geoffrey Moore a number of years ago.  The book describes the successful introduction of disruptive or discontinuous innovations into a marketplace, and the challenges presented therein.  It also tries to outline the differences between discontinuous and continuous (which do not force significant customer behavioral changes) innovations and the methods and hurdles faced by each.  It is not always easy to determine whether the innovation introduced is discontinuous or not.  Perhaps the audience to which the innovation is introduced may determine the degree to which behavioral discomfort is experienced.

I remember, introducing ScanTrack, Nielsen’s replacement for it’s audit service in the U.S..  John Walling and I ran pretty much for a year from client/prospect to client/prospect meeting and found manufacturers were certainly willing if not eager to accept the innovation.    They did not always like the trade offs (losing inventory and out of stocks, but gaining granularity in both products and frequency), and they certainly hated dealing with the loss of market trends. However, by and large they broadly accepted the switch.    The Nielsen client service executives had a much harder time accepting the innovation as they had become masters at assembling disparate data in order to spin the mundane bi-monthly audit findings to life for their clients.  That set of capabilities and skills became less relevant overnight and so the behavior change required to add value to this new information was dramatic, in many cases very much resented and for some impossible to overcome.

Later at MyWebGrocer the consumers were easy!   Early adopters WANTED to try online grocery shopping and it has evolved becoming more acceptable for the rest of the population.  Most consumer limitations today are because of exposure (it is not offered very widely) and other constraints imposed by the retailers.  However, the bricks and mortar retailers through whom the online groceries are sold (for the most part) have been very cautious about signing up.   That caution may be due to reluctance to invest in labor “on the come” which is necessary to support picking orders.  Those that have taken the plunge have generally found it worthwhile, but it is a leap in a time when retailers are trying to squeeze as much as possible from labor costs.  The current pressure of Amazon and Walmart aimed at establishing a significant beachhead in this arena should ease some of that grocer reluctance to participate.

(more…)