Industries

Applications

Collaborate

Trends

Large retailers have shown themselves increasingly willing to share data with CP suppliers and engage in joint dialogue and action around how to improve category performance. This trend includes:

• Data getting deeper, even with no growth in RFID,
• An increase in investment in CP-driven handheld/mobile devices and other non-POS approaches to ‘seeing’ on-shelf
• Other retailers are following Walmart's lead, setting up Retail Link-like portals, and requesting/pushing CPs to collect, cleanse, and analyze data to benefit the retailer

Analysis

Analytics that can be generated with retailers or used to aid a joint business include:

• Analysis of Out of Stock, Imminent Out of Stock, Promotional Out of Stock, Root Cause Analysis
• Response Rate, Promotion Lift, Marketing Mix Optimization, Switching, Cannibalization
• Profit per Linear Foot, Sales per Linear Foot, Category Role, Assortment Optimization

Benefits

Benefits attributable to active collaboration include:

• Retaining loyal customers who would be encouraged to brand-switch if the CPs product was out of stock
• Jointly going to market with customer-centric targeted promotions based on the outputs of loyalty analytics
• Making much smarter use of trade funds, doing more with less to improve return-on-invested-capital
• Defending and even increasing facings by generating goodwill with the retailer through adding insights and improvements to the whole category
  

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