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Shelf Schematics Process and Principles. Debi J. Besser, C.P.M Director of Purchasing. History. Previously managed through partnership with major suppliers Suppliers with leading brands in each category Category specialists: Segment captains and primary validators

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shelf schematics process and principles

Shelf SchematicsProcess and Principles

Debi J. Besser, C.P.M

Director of Purchasing

slide2

History

  • Previously managed through partnership with major suppliers
    • Suppliers with leading brands in each category
    • Category specialists: Segment captains and primary validators
  • Strategy still based on industry best practice
why do it ourselves
Why do it ourselves?
  • Faster revision cycle
  • Real-time product additions and deletions
  • Maintain the partnership with DRAW (Distillers’ Representatives Association of Washington)
    • Major reviews every six months
  • On-line availability
why do we care
Why do we care?
  • Customers were confused
    • Over 900 Spirit SKUs in an average Washington Store
    • Don’t understand the differences between products
  • Additional opportunities by making the spirit shelves easier to shop
    • Improved customer service
    • Increased profitability
principles
Principles

Grouped stores in “clusters”

How much: Days of product supply

Where:Positioning priorities

slide6

All Stores are Created Exactly Equal

Stores Clustered into Distinct Groups

  • Creates a Manageable Framework
    • More efficient than store by store
    • Meets shoppers needs better than all stores created equal

Why Use Store Clustering?

The Marketing Continuum

Every Store Examined Independently

No Upside Opportunity

Doesn’t Meet Shoppers Needs

Operational Nightmare

Too Complex & Expensive

determining clusters
Determining Clusters
  • Spectra CAM clustering

Three distinct store groups were developed:

      • Cluster One………………..Rural
      • Cluster Two………….……Urban
      • Cluster Three…………….Suburban
slide8

Rural

Urban

Suburban

WSLCB Clusters

clusters
Clusters

The variations in demographics drive the distinctions between clusters:

  • Cluster 1 skews towards lower income and education levels, with a occupation skew towards service and blue collar jobs. Within this cluster, there is a larger than average Hispanic population.
  • Cluster 2 stores are mainly urban stores. This cluster has a propensity for higher income levels, skews towards households without kids.
  • Cluster 3 skews towards high income, highly educated, white collar households with children. These stores are mainly located in suburban areas.
how much
How much?
  • Clean SAM2 data
    • 52 week average movement
    • Off Premise volume only
    • Specific to stores in cluster
    • Remove special packs and special orders
  • Enough facings to allow for minimum 14 days of product on shelf
where
Where?
  • Positioning Principles
    • Category
    • Price Segment
      • Shelf level
      • More expensive to left
    • Sign Post Brands
    • Brand Family Blocking
    • Line Extensions
    • Sizes (small to large)
slide14

Sign Post Brands

Use nationally known brands to identify a category to the consumer

slide15

Brand Family Blocking

Group products together by brand family

more positioning
More Positioning …
  • Line Extensions (8 yr., 16 yr, etc)
  • Product Size (small to large)
  • Price (low to high)

Bourbon

(top shelf)

$59.95

$31.95

$22.95

$18.95

summary
Summary
  • Cluster stores by demographics and purchasing patterns
  • 14 days of supply of product
  • Positioning
    • Category
    • Price
      • Shelf level
      • More expensive to left
    • Sign Post Brands
    • Brand Family Blocking
    • Line Extensions
    • Sizes (small to large)