New work and capabilities in 2013 and beyond

Presented by:

NEW WORK AND CAPABILITIES IN 2013 AND BEYOND

Leon NicholasSenior Vice President

February 2013

Big Idea

© Copyright 2013 Kantar Retail

Drivers of Marketplace Change Can Be Separated Into 3 Families

2Source: Kantar Retail analysis

…And Each One Can Be Distilled to One Word


…& Five Core Trends

Source: Kantar Retail analysis 3

Urbanization

Retail Outle

t

Personalization

Localization

Online

Smaller boxes


Scale of the New Work and CapabilitiesThree realms

Source: Kantar Retail analysis 4

Info/analytics People/skills

Product


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 lacking for scale-driven firms…

Are you nimble + fast enough?

5

Supplier Actions: Elevate packaging decisions; cut new product timelines in half; experiment with customization

Source: Kantar Retail analysis


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 analytics gaps vs. market activities; scrutinize 3rd parties…



Algorithmic Tactics

– Who you are, where you are, what you’ve done, in your “social genome”…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, fixed prices are a thing of the past.”Oren Etzioni, University of WA,

September 2012

algorithm



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…and assess your capacity to flex with retailer logistics.



Holistic Logistics

9

ManufacturerManufacturer WarehouseWarehouse StoresStores HomeHome



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.



Core Work for Suppliers

Invest in supply chain skills, analytics, and software

Shift new resources to small box, urban, & online retailing

Retool market research to focus on multi-channel shopper insights as a competitive 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

11Source: Kantar Retail analysis; RSR Research, Internet Retailer, Sept 2012.

Info/analytics People/skills

Product


www.KantarRetailiq.com

Leon Nicholas

T: +617-588-4146

Senior Vice President

[email protected]

M: +603-770-9687

Documents

New work and capabilities in 2013 and beyond