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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
© Copyright 2013 Kantar Retail
…& Five Core Trends
Source: Kantar Retail analysis 3
Urbanization
Retail Outle
t
Personalization
Localization
Online
Smaller boxes
© Copyright 2013 Kantar Retail
Scale of the New Work and CapabilitiesThree 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 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
© 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 analytics gaps 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 “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
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…and assess your capacity to flex with retailer logistics.
Source: Kantar Retail analysis
© Copyright 2013 Kantar Retail
Holistic Logistics
9
ManufacturerManufacturer WarehouseWarehouse StoresStores HomeHome
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, 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
© Copyright 2013 Kantar Retail
www.KantarRetailiq.com
Leon Nicholas
T: +617-588-4146
Senior Vice President
M: +603-770-9687