1	Marketing Service Companies – Connecting the Consumer, Retailer, and Manufacturer Presented by the National Association for Retail Marketing Services The trade association for the best Retail Marketing Service Companies in the World
2	Why Use a Merchandising Service Company? Resets New item implementations POS/POP storage, distribution, and placement Building, maintenance, and repair of displays New Store openings and remodels Installation, rebuilding, and replacement of fixtures Category resets and updates Retail blitz coverage Product recall pick-up
3	Why Use a Merchandising Service Company? Retail audits Business reviews Findings assessments and analysis Category management services Space allocation schematics Store summary tracking reports Inventory monitoring and control
4	Benefits of Service Improved retail compliance Implement resets faster than current retailer methods Have higher quality of initial planogram compliance than current retailer methods Can provide a typical category sales increase of 7.8% NARMS Documenting the value of Merchandising - Willard Bishop Consulting 70% of all decisions are made at the point of sale yet only 1 in four displays carries Vendor provided POP POP Measures Up - Point-Of Purchase Advertising International Get new product to the shelf faster Implement 98% of new product cut-ins compared with retailer ability (60%) to perform same cut-in in assigned time frame. NARMS Documenting the value of Merchandising - Willard Bishop Consulting
5	Benefits of Service Professional merchandising companies implement planogram resets 5 times faster in the first week, and 2 times faster overall.
6	Benefits of Service Professional merchandising companies have higher quality of initial planogram compliance than retailer’s current methods.
7	Benefits of Service Faster, more accurate planogram implementation and maintenance provided by professional merchandising organizations boosts sales and profits
8	Benefits of Service Professional merchandising companies cut-in new products 3 times faster than traditional methods
9	Benefits of Service Professional merchandising companies execute new product cut-ins at a much higher level than traditional methods
10	Benefits of Service Increase sales Vendors report sales increases of 10-20% as a result of using Marketing Service Organizations. NARMS 2003 Survey of Merchandising & Marketing Service Practices - The Christopher Group Routine store coverage produced sales increases of 12.6% which results in an increased profit of 10.1%. Getting it Right at Retail, Category Management’s Next Frontier - Association of Sales & Marketing Companies 2002 Better store level compliance can raise health and beauty care sales by 9%. Measuring the Value of Retail Compliance - National Association of Chain Drug Stores Annual incremental sales opportunity in Supermarkets from optimizing POP is estimated at $2.2 - $ 6.0 billion, a 1-2% growth to the overall Supermarket industry POP Measures Up - Point-Of Purchase Advertising International
11	Benefits of Service Decrease Out-of-Stocks A typical Grocery Retailer loses about 4 percent of sales due to out-of-stocks, an earnings per share loss of 1.2 cents. Retail Out-of-Stocks: A Worldwide Examination - CIES, Food Marketing Institute and grocery manufacturers of America 90% of Vendors said they either increased or remained the same in their use of Marketing Service Organizations to battle Out-of-stocks. NARMS 2003 Survey of Merchandising & Marketing Service Practices - The Christopher Group
12	Benefits of Service
13	Benefits of Service: Proven Solutions How effective are NARMS members in generating results?
14	Benefits of Service: Proven Solutions Objective: Develop ways to maximize the value of the DSD system and increase sales
15	Benefits of Service: Proven Solutions Situation / Background: DSD System expensive yet critical Need to make the DSD process more cost effective Need to increase Sales in each retail outlet
16	Benefits of Service: Proven Solutions Solution: MSO took over coordination with the DSD personnel and stores MSO assumed the responsibility for shelving MSO began collecting and evaluating data generated from the store
17	Benefits of Service: Proven Solutions Outcome: Manufacturer gained new insights abort the consumer and customer Manufacturer decreased their DSD costs Manufacturer experienced sales growth Source: NARMS Member – 2005
18	Proven Solutions – New Item Launch Objective: To gain retail shelf placement of 10 new SKUs in more than 1,250 stores to drive category traffic and customer sales. Background: This leading retailer is not viewed as a leader in getting new items on the shelf, as a result their category volumes lag other retailers.
19	Proven Solutions – New Item Launch Program: The MSO working with the manufacturer and retailer began planning for the new item rollout 20 weeks in advance to ensure that all issues regarding logistics, schematics, merchandising tactics were agreed upon. A customized shipping schedule was developed to coincide with the scheduling of store resets. The MSO handled all facets of the communication, including linking to the manufacturer’s reporting system. Finally, the MSO executed all of the in-store activities according to the detailed plan.
20	Proven Solutions – New Item Launch Results: A 97% ACV was achieved in the account in just two weeks. Results allowed the retailer to outperform the market for the first time in more than a year while also allowing them to achieve the highest unit growth. The brand achieved the highest ever dollar and unit share, and the rollout had the highest unit velocities in the category across the entire country.
21	Case Study: Building Displays Objective: To test the value of having a third-party company build and merchandise high-traffic displays Background: Historically displays in this category have experienced a wide number of SKU out-of-stocks resulting in the display not looking presentable and ultimately creating lost sales.
22	Case Study: Building Displays Program: The MSO implemented a program to ensure each store was visited on a weekly basis to detail the display unit, to prevent any out-of-stocks, and to make sure the unit remained consumer friendly. Results: Display units which were merchandised weekly achieved a 33% increase in sales over stores not being merchandised.
23	Case Study: Category Resets Objective: To increase sales by ensuring a new shelf set is implemented in a timely manner to fit the store’s merchandising schedule and the expectations of the consumer. Background: In order for these categories to maintain sales given the competitive nature of the category and the shopping habits of the consumer, they have to offer a fresh perspective to the consumer. Each of the involved categories is highly profitable to the retailer, increasing the importance of ensuring strong volume sales.
24	Case Study: Category Resets Program: A plan was developed to reset more than 500 stores across three interrelated categories in one store visit in a specific two or four week window. Results: Each Category achieved sales growth of more than 15%, 25%, and 40% respectively. Results exceeded expectations for each of these three categories.
25	Case Study: Emergency Shelf Placement Objective: To save a new item from discontinuation due to low retail availability Background: A leading retailer was set to discontinue a new item due to low sales (only 35% of the stores were stocking the item). The manufacturer’s agent was referred to a NARMS member by the retailer to deal with the retail availability issue.
26	Case Study: Emergency Shelf Placement Program: The NARMS member mobilized their personnel in one week to blitz the stores not stocking the item nationally Results: Within one week all of the stores in the chain were carrying and selling the new SKU, and based on the results, the item received secondary placement throughout the retailer’s stores on a national basis.
27	Case Study: New Product Packaging Objective: To cut-in new product packaging at retail and replace old packaging without incurring costly returns or markdowns of the old packaging. Background: Historically the industry-leading retailer with more than 4,000 locations has extensively utilized product returns and markdowns to deal with packaging changes in this highly volatile and profitable category.
28	Case Study: New Product Packaging Program: The MSO established a turn-key program to use their own warehouse and technology systems to handle the movement of the product to and from the account. The program was designed to coincide with the personnel working in the stores so as to avoid costly returns and markdowns. Results: The manufacturer increased sales by 30% and, more importantly, avoided the costly returns and markdowns incurred in other programs. The entire program was executed in 98% of the locations in a two week window. The retailer has now asked the MSO to stage additional resets.