EFFECTIVE SHELF MANAGEMENT

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EFFECTIVE SHELF MANAGEMENT© 2015 The Partnering Group, Inc.

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EFFECTIVE SHELF MANAGEMENTCOURSE HANDOUT

EFFECTIVE SHELF MANAGEMENT © 2020 The Partnering Group, Inc.

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TABLE OF CONTENTS

Module 1: Introduction

Modules 2: Shelf Management Framework

Modules 3 - 7: The Shelf Management Process

Effective Shelf Management Wrap-up

Contacts

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MODULE 1: INTRODUCTION

WHAT YOU WILL DO:

Discover how shelf management can effectively convert a store shopper into a category buyer. Participants learn the importance of effective shelf management to retailers and suppliers, the critical elements that drive effective shelf management, and how shelf management fits within the Category Leadership Planning process. Participants will learn in detail the best practice Shelf Management Process that can be applied across all categories within the stores to drive both shopper behavior and operational efficiencies.

WHAT YOU WILL ACHIEVE:

• Understand the strategic framework forshelf management

• Effectively link shelf management workwith Category Leadership Planning

• Recognize the drivers of effectiveshelf management

• Apply the Shelf Management Process to shelfmanagement efforts to include makingdecisions around:

o Locationo Category Spaceo Product Spaceo Layouto Equipment & Signageo Store Clusters

• Collaborate with business partners todevelopment and implement effectiveshelf plans

• Monitor implementation and plan results vs.objectives and adjust as necessary



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MODULES 2: SHELF MANAGEMENT FRAMEWORK

OVERVIEW:

What is the shelf? The shelf is the primary location where products are shown at retail for the shopper’s evaluation and purchase. Effective shelf management plays a critical role in translating category strategies to action at retail.

OBJECTIVES:

• Learn how effective shelving helps to drive shopperbehavior while managing operational efficiencies

• Understand each of the key decisions addressedthrough shelf management

• Review the components of the Effective ShelfManagement Model


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A Balancing Act

Putting the Shopper first:• Providing

- What they want- When and How they want it

• Stimulating the shopper to purhase

Being Efficient• Maximizing productivity• Minimizing cost

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CONCEPTS TO BE BALANCED AT SHELF

Being efficientPutting the shopper first


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• Converts shoppers to buyers

• Delivers the Category Plan

• Simplifies the shopping process

• Stimulates the shopping experience

SHELF MANAGEMENT BENEFITS


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Category Leadership Framework• Consumer & shopper driven• Strategic guidance for all shelf decisions

5-Step Business Process• Simple, actionable & comprehensive

Data Gathering & Analysis• Fact based decision making support• Integration of multiple data sources

Trading Partner Collaboration• Full utilization of unique capabilities of

both parties• Start to finish alignment for efficient and

effective implementation of plans

EFFECTIVE SHELF MANAGEMENT MODEL


MODULES 3 - 7: THE SHELF MANAGEMENT PROCESS

OVERVIEW:

In these modules you will learn how to complete the five steps of the Shelf Management Process working collaboratively with your trading partner. These steps are:• Objective Setting• Opportunity Identification• Planning• Validation• Detailing & Implementation

OBJECTIVES:

• Review each step of the Shelf Mangement Process


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MODULES 3-7: THE SHELF MANAGEMENT PROCESS

STEP 1: OBJECTIVE SETTING

Purpose:To clearly articulate the goals that the shelf plan must meet when executed in the stores

Output:Effectiveness and efficiency goals for the category shelf plan.

Sub-Steps:• Decision Making Framework• Shelf Plan Scope• Shelf Objectives

OBJECTIVE SETTING PLANNING VALIDATION DETAILING &

IMPLEMENTATION

OPPORTUNITY

IDENTIFICATION


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STEP 2: OPPORTUNITY IDENTIFICATION

Purpose:To understand the current situation & potential for future shelf plans based on a review of retailer & benchmark data

Output:Shelf findings & indicated actions for shelf plan.

Sub-Steps:• Routine Shelf Analyses• Special Analyses• Key Findings & Indicated Actions


IMPLEMENTATION

OPPORTUNITY

IDENTIFICATION


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STEP 3: PLANNING

Purpose:To establish guidelines on what needs to change (top line view) before we engage in more detailed validation and implementation work

Output:• Shelf plans based on identified opportunities• Direction on strategic layout with supporting rationale• A plan to address potential barriers to implementation

Sub-Steps:• Shelf change Plan• Plan summary• Strategic layout• Barriers


IMPLEMENTATION

OPPORTUNITY

IDENTIFICATION


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STEP 4: VALIDATION


IMPLEMENTATION

OPPORTUNITY

IDENTIFICATION

Purpose:Ensure the plan will deliver targeted benefits prior to investing the resources required to properly detail & implement it

Output:• Implementation costs• Implementation benefits• Feasibility analysis

Sub-Steps:• Plan costs• Plan benefits• Plan feasibility


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STEP 5: DETAILING & IMPLEMENTATION

Purpose:To ensure the plan is successfully implemented at retail by:• Gaining broad scale support of the plan• Ensuring necessary approvals have been secured• Completing all necessary details• Communicating & deploying the plan• Monitoring of quality of execution & results

Output:• Approvals needed• Critical path• Planograms• Signage and fixtures• Implementation at retail• Results vs. objectives

Sub-Steps:• Approval• Production• Implementation


IMPLEMENTATION

OPPORTUNITY

IDENTIFICATION


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EFFECTIVE SHELF MANAGEMENT WRAP-UP


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WRAP-UP

1. In-store shelf is the best means of communicating withour shopper:

• Inform - special offers• Introduce - new items• Educate - new uses• Excite - emotional connection

2. Excellence in shelf starts with the right objectives:• Start with a blank piece of paper (no baggage)• Space Management is important

- Maximize availability, minimize out of stocks- Drive turns & cash flow

• Space effectiveness is critical• Influence purchase behavior: planned &

unplanned purchases

3. Make data-based decisions:• Productivity data - improve turns, GMROI, conversion,

transaction size• Shopper data - how they shop, why they do what

they do


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CONTACT

TPG’s Category Management College is an unparalleled capability development program based upon rigorous assessment, Best Practice curriculum and innova-tive e-based & classroom delivery.

For all technical questions and issues please contact our support desk:Phone number: 1-513-429-2841 Email address: [email protected]

For more information about TPG University please visit www.thepartneringgroup.com or contact TPG at 513-469-6840.

© 2020 The Partnering Group, Inc. All rights reserved.

No part of this work may be reproduced or transmitted in any form or by any means, elec-tronic or mechanical, including photocopying, recording, or by any information storage and/or retrieval system, without permission in writing from the copyright holder.

© 2020 The Partnering Group, Inc. 14

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EFFECTIVE SHELF MANAGEMENT