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Dulux Decorator Centres UK. Anne Tattersall, Head of Commercial, DDC 8 th May 09. Outline. Turnover & Profitability Network Development Operational Excellence Supplier Management Category Management Price Architecture. Dulux Decorator Centres. 190 Stores £150m turnover - PowerPoint PPT Presentation
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Dulux Decorator Centres UK
Anne Tattersall, Head of Commercial, DDC
8th May 09
Amsterdam Licensee Symposium
Outline
– Turnover & Profitability
– Network Development
– Operational Excellence
– Supplier Management
– Category Management
– Price Architecture
Amsterdam Licensee Symposium
• 190 Stores• £150m turnover• 1200 employees
Dulux Decorator Centres
Amsterdam Licensee Symposium
Split by Channel & CategoryPremium Credit
Premium Cash
Contract Direct
Factoring
Paint
WoodcareAccessories
Wallcoverings
Channel Split
Category Split
Amsterdam Licensee Symposium
Amsterdam Licensee Symposium
DDC Efficiency Measures• Efficiency Measures 2008 Average• Credit collection – Days sales outstanding 52.1days• Stock turn 8.3 times• Stock availability – PDS 99.0%• % of slow moving stock 1.9%• Sickness absence rate 2.5 days• Manpower costs (% sales) 11.5%
• Cost Base % of sales• Stores manpower 11.5%• Stores property & dep’n 6.5%• Other direct stores costs 6.0%• • Total direct stores costs 24.0%• Head Office costs 7.0%• Total costs 31.0%
Amsterdam Licensee Symposium
Network Growth & DevelopmentAcquisition & Greenfield Sites
DDC - No. of Stores
100
125
150
175
200
2003 2004 2005 2006 2007 2008
CASTLECASTLECASTLECASTLECASTLECASTLECASTLECASTLECASTLEBROMWICHBROMWICHBROMWICHBROMWICHBROMWICHBROMWICHBROMWICHBROMWICHBROMWICH
SOLIHULLSOLIHULLSOLIHULLSOLIHULLSOLIHULLSOLIHULLSOLIHULLSOLIHULLSOLIHULL
PERRY BARPERRY BARPERRY BARPERRY BARPERRY BARPERRY BARPERRY BARPERRY BARPERRY BARTIPTONTIPTONTIPTONTIPTONTIPTONTIPTONTIPTONTIPTONTIPTON
BOURNEVILLEBOURNEVILLEBOURNEVILLEBOURNEVILLEBOURNEVILLEBOURNEVILLEBOURNEVILLEBOURNEVILLEBOURNEVILLE
HALESOWENHALESOWENHALESOWENHALESOWENHALESOWENHALESOWENHALESOWENHALESOWENHALESOWEN
HARBORNEHARBORNEHARBORNEHARBORNEHARBORNEHARBORNEHARBORNEHARBORNEHARBORNE
Smethw ickSmethw ickSmethw ickSmethw ickSmethw ickSmethw ickSmethw ickSmethw ickSmethw ick
BilstonBilstonBilstonBilstonBilstonBilstonBilstonBilstonBilston
BirminghamBirminghamBirminghamBirminghamBirminghamBirminghamBirminghamBirminghamBirmingham
ColeshillColeshillColeshillColeshillColeshillColeshillColeshillColeshillColeshill
DudleyDudleyDudleyDudleyDudleyDudleyDudleyDudleyDudley
EdgbastonEdgbastonEdgbastonEdgbastonEdgbastonEdgbastonEdgbastonEdgbastonEdgbaston
ErdingtonErdingtonErdingtonErdingtonErdingtonErdingtonErdingtonErdingtonErdington
FazeleyFazeleyFazeleyFazeleyFazeleyFazeleyFazeleyFazeleyFazeley
HarborneHarborneHarborneHarborneHarborneHarborneHarborneHarborneHarborne
KingsburyKingsburyKingsburyKingsburyKingsburyKingsburyKingsburyKingsburyKingsbury
SolihullSolihullSolihullSolihullSolihullSolihullSolihullSolihullSolihull
StourbridgeStourbridgeStourbridgeStourbridgeStourbridgeStourbridgeStourbridgeStourbridgeStourbridge
StourtonStourtonStourtonStourtonStourtonStourtonStourtonStourtonStourton
Sutton ColdfieldSutton ColdfieldSutton ColdfieldSutton Coldf ieldSutton Coldf ieldSutton ColdfieldSutton ColdfieldSutton ColdfieldSutton Coldf ield
WalsallWalsallWalsallWalsallWalsallWalsallWalsallWalsallWalsall
West Bromw ichWest Bromw ichWest Bromw ichWest Bromw ichWest Bromw ichWest Bromw ichWest Bromw ichWest Bromw ichWest Bromw ich
WillenhallWillenhallWillenhallWillenhallWillenhallWillenhallWillenhallWillenhallWillenhallWolverhamptonWolverhamptonWolverhamptonWolverhamptonWolverhamptonWolverhamptonWolverhamptonWolverhamptonWolverhampton
WombourneWombourneWombourneWombourneWombourneWombourneWombourneWombourneWombourne
Distribution Strategy
Objective: Share Optimisation• Regional brand share• Mapping• Competitor review
Strategic Acquisition
Greenfield's: Low cost model
Amsterdam Licensee Symposium
DDC Refurbishments
Amsterdam Licensee Symposium
DDC Refurbishments
Amsterdam Licensee Symposium
Operational Excellence• Category Management• Category segmentation & strategy• Customer focused ranging• Take advantage of new opportunities• Data modelling & customer & store input• Visual merchandising
• Supplier Management• Consolidation• Sustainability• Service expectations
Amsterdam Licensee Symposium
Range Reviews: Supplier RationalisationNo. of Suppliers
20
40
60
80
100
120
Preparation Products
Preparation Equipment Application
Finishing & Cleaning
Wallpapering tools
200520062007
140
Amsterdam Licensee Symposium
Range Reviews: SKU Rationalisation
Preparation Products
Preparation Equipment Application
Finishing & Cleaning
Wallpapering tools
No. of SKU’s
200
400
600
800
1000
1200
1400
1600
200520062007
Amsterdam Licensee Symposium
Category Segments
Amsterdam Licensee Symposium
Turf Defending
TrafficBuilding
Image & Excitement
Creation
ProfitGenerating
TransactionBuilding
Image Enhancing
Assortment & Range Reviews
Pricing
Merchandising
Promotion
Service
Sourcing
Desti
natio
n
Occ
asio
nal/S
easo
nal
Pref
erre
d
Conv
enie
nce
Category Roles Determine….. Category & Strategies which…..
Map to Specific Tactics
Category Strategy: Segments & Roles
Amsterdam Licensee Symposium
Visual Merchandising
•Bringing category strategies to life in store:•Sales & margin aspirations•Footfall measures•Product availability•Ease of purchase•Help customers understand the proposition•Trade up
Amsterdam Licensee Symposium
Understanding Hierarchies
BEST
BETTER
GOOD
Amsterdam Licensee Symposium
The Benefits
• Stock turn improvement
• Increased efficiency through reduced products &
suppliers
• Increased margin through cost reduction
• Increased sales through clarity / choice
Amsterdam Licensee Symposium
Understanding HierarchiesSOLVENT USAGE WATER-BASED USAGE
4” 9” 4” 9”
Amsterdam Licensee Symposium
Zonal Merchandising
General Fixing
Knives & Blades
HD ToolsScraping
Measuring
Accessories & Kits
Amsterdam Licensee Symposium
Promotional Merchandising
• Right Product / Right Quantity / Right Site• Linked purchase opportunities• Link POS message and displays• Clear & easy to understand communication
to stores & our customers– Quality briefing– Consistency of display & message across all stores
Amsterdam Licensee Symposium
Promotional Merchandising
Clutter Free Promotional
Areas
Impactful & Inviting Displays
Amsterdam Licensee Symposium
Summary
• Network Development
• Operational Excellence
• Differentiation