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Home > Win@Retail Tools > Win in Your Modular Review
Consumer Behavior & Marketplace
The first step to winning during your Modular Review at Wal-Mart is by examining the marketplace dynamics and profiling the consumer of your brand, product, and sku. Consumer profiling may be completed with retailer-specific panel data for top-line brand or category preferences or through the analysis of point-of-sale (POS) data. POS analysis provides more granular insight than other methods, offering examination of item-level and retail-specific opportunities.
If you want to execute on a store-level, you must understand how your consumer matches the retailer's shopper. Based on the consumer fit of your product, brand, and SKU, you can work with Wal-Mart to optimize your distribution based on the right stores for your product.
> Download our guide sheet Consumer Profiling with POS Data
Opportunity Identification
The second step to winning during your Modular Review is identifying and quantifying areas of opportunity. One approach is by calculating your opportunity gaps. An opportunity gap differs from a traditional fair share gap because it is based on potential sales versus actual sales. Potential sales are quantified based on the fit between your consumer and the retailer's shopper. The difference between the potential sales and the actual sales is the opportunity gap. Instead of determining what piece of the pie you should have gotten, you are determining just how large the pie could have been.
The Retail C.O.D.E.™ approach methodology puts marketers in the driver's seat, steering brands and products by looking through the windshield instead of the rear-view mirror. It focuses action on stores that show growth opportunity and suggests maintenance level support for those with lower growth potential.
> Download our guide sheet Incorporating Opportunity Gapping with POS
Dynamic Clustering
The next step in the Retail C.O.D.E.™ approach is creating clusters for scalable action. Winners at retail understand that each store, even within the same retailer, has a unique consumer fingerprint. Wal-Mart is breaking the stereotype that an entire account acts the same by implementing its Store of the Community initiative to organize stores based on the communities at large. The use of clusters not only allows local action, but also action that is scaleable for maximum efficiency.
Clustering allows a middle ground between considering an account as a single entity and creating store specific tactics. Clustering may be as simple as grouping stores by a common sales, demographic, or physical trait. However, it can also be as complex as clusters that account for all of these traits and more while factoring in the importance of each. This type of multivariate clustering will enable you to realize efficiencies that single trait clustering will not allow.
> Download our guide sheet Incorporating Dynamic Clustering with POS
Execution & Measurement
The final step in the Retail C.O.D.E.™ approach is the implementation and execution plan based on steps one through three with measurement of the results.
Once implemented, merchandising strategies based on item roles, promotional and sampling programs, and space and facing allocations that are tailored to the dynamic clusters must be measured to allow ongoing tweaking of tactics to ensure continued success and ROI. The Retail C.O.D.E™ approach must not be considered a stand alone process, as it is repeatable, scalable, and measurable.
> Download our guide sheet Executing for the Consumer
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