Presented by:
NEW WORK AND CAPABILITIES IN 2013AND BEYOND
Leon Nicholas
Senior Vice President
February 2013
Big Idea
© Copyright 2013 Kantar Retail
Drivers of Marketplace Change Can BeSeparated Into 3 Families
2
Source: Kantar Retail analysis
…And Each One Can Be Distilled to One Word
© Copyright 2013 Kantar Retail
…& Five Core Trends
Source: Kantar Retail analysis
3
Urbanization
Retail Outlet
Personalization
Localization
Online
Smaller boxes
© Copyright 2013 Kantar Retail
Scale of the New Work and Capabilities
Three realms
Source: Kantar Retail analysis
4
Info/analytics
People/skills
Product
© Copyright 2013 Kantar Retail
1. Product
–New formats suggest varied product configurations—Is marketing on board?
–Speed to innovation becomes critical
–Online “shelf appeal” must be considered
–Production agility to enable bounded customization is lackingfor scale-driven firms…
Are you nimble + fast enough?
5
Supplier Actions: Elevate packaging decisions; cut new producttimelines in half; experiment with customization
Source: Kantar Retail analysis
© Copyright 2013 Kantar Retail
2. Information and Analytics
–Inputs increase dramatically—structured and unstructured
–Methods need to account for non-traditional sources
–Partners need to be evaluated to assess capabilities
•Layered, multi-stage scenarios
•Data distributions vs. averages
•Clustering on behaviors and outcomes
–“Big data” less of a threat than useless insights
It gets complicated…
6
Supplier Actions: Re-assess your company’s “filtering” and analyticsgaps vs. market activities; scrutinize 3rd parties…
Source: Kantar Retail analysis
© Copyright 2013 Kantar Retail
Algorithmic Tactics
–Who you are, where you are, what you’ve done, in your “socialgenome”…mediated through an algorithmic layerpersonalized
–Automating the most effective price/promotion to the shopper
–Driving store/cluster assortment automation and triggers
7
“In the age of the Internet, fixedprices are a thing of the past.”
Oren Etzioni, University of WA,September 2012
algorithm
Source: Kantar Retail analysis
© Copyright 2013 Kantar Retail
Supply and Demand Indicators
–Points of influence fragment along new PTP
•Promotional opportunities diversify…and punctuate
•Old signals can now mislead!
–Multiple formats and media enable transactions
–Interconnected domains increase
•Online promotion…but pickup in store
•Large stores serve as DCs
Number, speed, and complexity increase
8
Supplier Actions: Audit your “receptivity” to demand signals…andassess your capacity to flex with retailer logistics.
Source: Kantar Retail analysis
© Copyright 2013 Kantar Retail
Holistic Logistics
9
Manufacturer
Manufacturer
Warehouse
Warehouse
Stores
Stores
Home
Home
Source: Kantar Retail analysis
© Copyright 2013 Kantar Retail
3. People and Skills
–Generation and ethnicity matter
–Skills matter
•Synthesis
•Multiple disciplines
•Emotional and cognitive intelligence
•Innovation and execution
–Does our industry appeal to Generation Y?
The biggest issue
10
Supplier Actions: Candidly assess 3 gaps:
generational and ethnic representation, talent, and appeal.
Source: Kantar Retail analysis
© Copyright 2013 Kantar Retail
Core Work for Suppliers
Invest in supply chain skills, analytics, andsoftware
Shift new resources to small box, urban,& online retailing
Retool market research to focus on multi-channel shopper insights as acompetitive advantage; pattern recognition
Balance talent mix: Technology/analytics and verbal/narrative/synthesis skills
Re-deploy talent horizontally to enable greater cross-fertilization--marketing, analytics, and operations
Getting started today
11
Source: Kantar Retail analysis; RSR Research, Internet Retailer, Sept 2012.
Info/analytics
People/skills
Product
© Copyright 2013 Kantar Retail
www.KantarRetailiq.com
Leon Nicholas
T: +617-588-4146
Senior Vice President
leon.nicholas@KantarRetail.com
M: +603-770-9687