Inside Retail (New for 2009)

Course Objectives

• Understand the latest trends in retail thinking
• Determine different retail business models and their implications
• Apply shopper behaviour and develop initiatives to change in store behavior
• Design better category plans knowing how retailers implement their own category thinking
• Differentiate between shoppers and consumers and the implications for store plans
• Understand and utilise basic retail models and financial measures
• Interpret key buyer and retailer decisions and work proactively with your retail customer
• Do range/category reviews and business plans with more insight into the retail world
• Understand what makes buyers “tick”
• Create a clear picture of the retail DNA – drivers, needs and ambitions
• Use key drivers such as elasticity, display, space management and impulse opportunities
• Plan for product and range profitability based on sales, profit and inventory

Content Overview

• The retail environment
• Retail business models
• In store behaviour
• Shoppers and consumers
• Service, Service, Service
• Retail Finance
• An introduction to buying
• Range Management
• Display Management
• Store layout principles
• Elasticity
• Supplier Management methods
• Promotional management principles
• Pricing management
• Product management
• Space management
• Customer Structures
• Purchasing patterns
• Category vs Brand

In today’s climate you are required to strategically deal with some key issues, issues which may attract some stressful attention from your customer.

Think about this for a second;

• As a supplier, how would you spend $100. Below the line in the customer or above the line in the brand?
• Are your innovation efforts focused on developing new product, designing and presenting great displays, or innovating your channel to market? Or are you tackling all 3 at the same time?
• Which 25% of your SKUs would you be prepared to proactively lose in the next 3 months, and how would you manage the impact on this?
  

The Inside Retail programme takes you in to the heart of retail. We explore many aspects of how retail works, from the financials that run the business to the designs and patterns of stores.

We look at retail formats across New Zealand and explore the current thinking in store designs and layouts, and the attempt to constantly find that next edge with the retail customer.

We understand the delicate mix of categories in store and the fine balance between perfect range and maximum profitability. And we explore the sometimes tenuous relationships between retailer and supplier.

We contrast the local retail thinking with some international models and ask ourselves “what if?” type questions; how would we respond if those models or strategies made a local appearance? What would the implications be of these strategies in a local context and which lessons could we learn from them and apply with real tangible benefit.

Retail profitability is explored in the context of different retail models. We look at the differences between businesses that are efficiency centred and contrast them with businesses that are customer experience centred. We look at and investigate the role product profitability plays in ranges and departments, and we contrast real profit when stock weight and stock efficiency is included in this thinking. And we discover the effects that trading terms and delivery cycles play in these businesses.

Finally we explore a toolkit which enables all suppliers and retailers to proactively manage the relationship that different types of products have with each other. This toolkit enables you to make price, placement, promotion, product and location decisions on a strategic platform, and encourages you to think in smarter ways about the ranges and departments in which you play.

Facilitator

Jean du Rand. Get practical insights from a facilitator that knows the industry. As one of New Zealand's leading retail experts, Jean has worked on Retail and FMCG strategy projects for many companies in Australia, South Africa and NZ.

He has held Directors roles in Retail Grocery and Merchandise. He has worked for major retailers in senior management roles in New Zealand and continues to work in a consulting capacity with a number of them on both sides of the Tasman. He has worked with many large companies including,

• Foodstuffs, Auckland and Wellington
• Goodman Fielder, NZ and Australia
• Bell Tea and Coffee Company, NZ
• Fonterra, NZ
• Lion Nathan, NZ and Australia
• Nestle, Australia
• Croxley Stationery
• Coleman Camping
• Mars
• BP and Castrol

Agenda

Over the three-days, you will cover:

The retail environment

• What are the latest trends internationally and in New Zealand and Australia
• How do different retailers view NZ customers
• What current impacts are affecting NZ and its retail customers

Retail business models

• How do different retailers make money
• What business models exist and how are they different
• Why do some retailers focus on efficiencies more than others
• Is there a “perfect” retail business model
• How do suppliers affect retail business models and profitability
• Is a new model emerging in NZ?

In store behaviour

• Why are stores designed they way they are?
• What does a good category floor plan look like?
• How are floor plans designed for mix and profit?
• How do shoppers behave differently in stores?

Shoppers and consumers

• What’s the difference and why is it important?
• How do shoppers behave and what really counts in the store?
• How much is science and how much is art?

Service, Service, Service

• What is “silent service”?
• How valuable are the non-contact areas of service such as merchandising?

Retail Finance

• Explaining the retail financial models, how they make money and how incredibly different one retailer can be to another – and yet still make profit
• Different profit models and cost to serve philosophies
• Stockturns, cost of money
• Cashflows
• GPs
• Blended margins and many more

An introduction to buying

• Why “illogical” buyer decisions are actually quite rational
• What makes buyers tick
• The world according to buyer DNA
• A checklist for perfect proposals and the pitfalls of poor selling
• NPD opportunities

Range Management

• Case studies for managing your own range in the context of the store
• How to design the perfect range

Display Management

• The value at the POP
• Good interrupters and bad interrupters
• The best instore theatre – examples from around the world
• The six senses in a store – see, taste, touch, smell, hear, sense

Elasticity

• What is genuine elasticity and how to use it for maximum benefit
• What to do with non-elastic product or departments

Supplier Management methods

• Who wins and who loses
• What constitutes a great supplier
• The uncommon (but most valuable) measurements supplier service and value
• The supplier management matrix – do you really count?

Promotional management principles

• Managing a great promotion
• The 12 reasons to promote
• Measuring promotional effectiveness
• New promotional mechanics and the changing nature of promotions in NZ

Pricing management

• EDLP, HiLo and GMROII price philosophies
• Pricing theory
• Price and the five times multiplier on the P&L