Standout Customer Management
PepsiCo International serves as a category advisor for Frito-Lay, Quaker Oatmeal and Gatorade products in many of the countries in which Wal-Mart operates.
"We have total access to the entire category and help them analyze and develop planograms and get the shelf right in terms of what it looks like and ensuring that it's shopper-friendly," says Brian Wisniewski, director, customer development, PepsiCo International. "We provide ease of shopping in the salty, hot cereals and isotonic categories."
So effectively tracking the constantly changing preferences of the consumer requires detailed analysis of volumes of data from all points on the demand chain.
"A common approach would readily allow PepsiCo to facilitate global reporting and best practice transfer," says Wisniewski.
As market leader in many of the categories in which it operates, PepsiCo established a consistent methodology and system to manage data from multiple countries in various stages of the organized trade evolution -- a feat that earned it the 2006 Standout Customer Management Award at the Consumer Goods Technology Fall Conference.
ENABLING TOOLS
To conquer the monumental task of managing data from multiple sources, PepsiCo utilizes a data mining solution from Vision Chain. PepsiCo implemented Vision Chain nearly four years ago, primarily to help sort data and enable global scorecarding, benchmarking and categorizing. But when combined with the functionality of Wal-Mart's Retail Link, Vision Chain has become an extremely powerful data analysis and category management tool for PepsiCo.
To conquer the monumental task of managing data from multiple sources, PepsiCo utilizes a data mining solution from Vision Chain. PepsiCo implemented Vision Chain nearly four years ago, primarily to help sort data and enable global scorecarding, benchmarking and categorizing. But when combined with the functionality of Wal-Mart's Retail Link, Vision Chain has become an extremely powerful data analysis and category management tool for PepsiCo.
Here's how it works: On Sunday night, PepsiCo pulls Retail Link data on its products from the Wal- Mart business week that ended the preceding Friday night. Data from each country is stored in a separate database, allowing it to be pulled by country. On Monday morning, PepsiCo processes the data according to a certain hierarchy to efficiently report on it internally and back to Wal-Mart for its products and for the entire category. Utilizing Vision Chain, PepsiCo can handle local currencies, allowing reporting in pesos, pounds or any other foreign denomination. PepsiCo can also convert local currency reports to U.S. dollars on constant or variable basis for global scorecarding.
In a nutshell, PepsiCo can now manage tremendous amounts of data in an organized and consistent approach. "We manage data from different countries with different currencies, item descriptions, in multiple languages, and are able to provide consistent reporting and data mining capabilities," says Wisniewski.
In addition, applying Vision Chain functionality to Retail Link data increased top-line revenue for PepsiCo products at Wal-Mart stores in locations such as Brazil, Argentina and China by 2 percent to 3 percent.
Looking ahead, PepsiCo will continue to create enhanced reporting by leveraging best practices from around the world. In addition, the Vision Chain solution may be leveraged with additional global customer data.
OUTSTANDING ACHIEVEMENT AWARDS
GlaxoSmith Kline
GlaxoSmithKline (GSK) -- consumer brand owner of Aquafresh, Nicorette,Tums and Zantak, among many, others -- is truly thinking outside the box when it comes to increasing sales. Using Kenosia's DataAlchemy, GSK unites government data with syndicated and point-of-sale data to form a single view of the information necessary to build and execute on successful category marketing and sales strategies. Specifically, GSK can predict which key markets will experience an upswing in demand a month in advance. By sharing this information with retailers, GSK increases inventory in those markets and incorporates special promotional end caps to meet the expected demand. As a result, GSK has increased revenue and profits by several million dollars since it started this campaign.
GlaxoSmithKline (GSK) -- consumer brand owner of Aquafresh, Nicorette,Tums and Zantak, among many, others -- is truly thinking outside the box when it comes to increasing sales. Using Kenosia's DataAlchemy, GSK unites government data with syndicated and point-of-sale data to form a single view of the information necessary to build and execute on successful category marketing and sales strategies. Specifically, GSK can predict which key markets will experience an upswing in demand a month in advance. By sharing this information with retailers, GSK increases inventory in those markets and incorporates special promotional end caps to meet the expected demand. As a result, GSK has increased revenue and profits by several million dollars since it started this campaign.
In addition, the advance notice that GSK affords its retailers when an upswing in demand is expected has allowed for partnerships characterized by good will and trust, allowing GSK to explore other creative approaches for marketing its products with key retail customers such as Wal- Mart. As an added bonus, DataAlchemy saves 20 percent of GSK employees' time thanks to efficiencies gained.
The Clorox Company
The Clorox Company, a manufacturer and marketer of consumer products with fiscal year 2005 revenues of $4.4 billion, leverages JDA's CategoryAdvisor solution to successfully manage hundreds of planograms, thousands of products across categories, thousands of store/SKU combinations, as well as a growing amount of product data and planogram requirements. With the software's support, Clorox has achieved the following results:
The Clorox Company, a manufacturer and marketer of consumer products with fiscal year 2005 revenues of $4.4 billion, leverages JDA's CategoryAdvisor solution to successfully manage hundreds of planograms, thousands of products across categories, thousands of store/SKU combinations, as well as a growing amount of product data and planogram requirements. With the software's support, Clorox has achieved the following results:
- Reduced the time to produce planograms by 50 percent
- Improved ability to target assortments and store inventory of each retail partners' regional markets
- Reduced space planning training for users by 50 percent and need for additional headcount
- Enriched planogram analysis
- Supported additional granular store clustering analytical capabilities
- Obtained valuable syndicated and retailer information comparisons
CG