Steve Holland

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Steve Holland Division CEO BEST CROSSMARK
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Overview

• Who CROSSMARK is
• Joint problem in Manufacturing and Retail
• How CROSSMARK understands the issue
• How CROSSMARK solved the issue
• Questions

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Scope of Business

• CROSSMARK Represents over 1800 Manufactures of
  Product

Consumer Goods Clients
Retailer Clients
Consumer Goods Clients
Retailer Clients
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CROSSMARK Factoids
Category Specific
Convenience
Value Drug
Mass Club
Supermarket

• 20,250 Associates
• Serve 614,500 unique outlets
• 379,000 UPCs (we manage)
• Manage 18,000,000 tasks annually
• 10,000,000 retail hours produced
• 53 Offices throughout the U.S., Canada, Mexico,
  Australia and New Zealand
• Privately held, based in Plano
• 5 strategic wholly owned subsidiaries

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Industry Challenges

• Growth
• Slow growth in the Consumer Goods industry
• Globalization
• Sourcing cheaper goods from low-cost countries
• Continual Portfolio Management
• Focusing on core businesses and areas of
  expertise
• Information Management
• Desire for faster data, better P.O.S. insights,
  demographic and loyalty club information, lots of
  data
• Retail Power
• Limited ability to increase prices to retailers
• Increased in-store labor demands from retailers
• Shifting consumption patterns
• 80 of brand decisions made in store
• Supply Chain Complexity
• New risks, lengthening supply chains, inventory
  effects

GMA/ PWC 2006 study
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What does CROSSMARK need?

• A way to achieve the cost of doing business
• A way to create consistency in reporting
• A way to create a more sophisticated analytic
  offering
• A way to enable Account Executives with
  marketplace data

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Historical Category Management

• Retailers have been very uniform in tactics
  across stores.
• They have had one strategic plan per
  chain/banner.
• One promotional plan
• One merchandising plan
• Limited pricing zones
• Little customization
• In reality, store are different and consumers
  are different

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Retailer Situation

• Success for retailers now hinges on their ability
  to cater to local differences
• Smart retailers are starting to customize their
  offerings to local markets, rolling out different
  types of stores, product lines, and alternative
  approaches to pricing, marketing, staffing, and
  customer service.
• Retailers are moving from standardization to
  localization.

Source Darrell K. Rigby and Vijay Vishwanath
Harvard Business Review
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What is CROSSMARK StoreView?

• CROSSMARK StoreView is the latest technology
  around Store Level data
• This database is custom to CROSSMARK
• Scanner facts such as dollars and units as well
  as causal facts like base and incremental drive
  detailed analytics
• Additional insights such as the Relative Threat
  Index (RTI) are unique to CROSSMARK, measuring
  the effect of demographics and actual sales by
  store, by week
• CROSSMARK StoreView gives the client a
  comprehensive look into in-store conditions

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Its all about the store

• CROSSMARK StoreView and Homescan allow the client
  to understand how shoppers purchase in stores
• Insights into the shopping environment give the
  retailer invaluable information
• Tactics tailored to the store driven on consumer
  trends create bankable results

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Vastly different profiles create a complex world
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What is the Homescan Household Panel?

• A panel of 125,000 households that continually
  provides information about their purchases
• Homescan members use in-home scanners to record
  all of their purchases (from any outlet) intended
  for personal, in-home use
• Information at the individual household level
  tells us
• Who buys
• What they buy
• Where they buy
• How often they buy
• How much they buy (total by occasion)

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TDLinx SMART Locational data by store
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What is Spectra?

• Spectra provides a 3-dimensional view of the
  consumer
• Where they shop
• What they buy
• Estimate sales potential for your product down to
  the store level

Spectra Enables Consumer-Centric Marketing
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Store Level Data

• Getting access and insights to POS data for tens
  of thousands of UPCs and stores in US and Canada
• Loads are done every 2 weeks, but 13 weeks
  (around 2.2 billion rows) of data is loaded. 
• Currently there are over 23 billion rows
• 3 Terabytes of data
• 1 year of rolling data
• 30,000 stores as contracted by ACNielsen (Mass,
  Drug, Grocery)
• 70,000 unique UPCs

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Store Level Data

• Tech Specs
• Software
• MSFT SQL 2005
• MSFT Windows Server 2003
• MSFT Integration Services 2005
• MSFT Reporting Services
• Hardware
• HP Proliant DL585 G1
• 12GB RAM
• (4) AMD Opteron 2.4GHz processors (single core)
• (2) 36.4GB 15krpm drives in a RAID1 config.
• Data resides on a SAN

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Store Level Data via Nielsen Feeds

• Getting access to POS data for tens of thousands
  of UPCs and stores in US and Canada
• Business Keys
• Normalized store locations nationwide (service)
• Push and Pull technologies to over 80 analysts
  that are aligned with both the manufactures and
  retailers
• Data is from actual scans in the store, synthesis
  and insights are what CROSSMARK provide to its
  clients
• Data refresh rate is at what the ecosystem can
  actually adjust to
• Agreed to definitions and dimensions

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Store Level Data

• What we can do now..
• Visibility to store level sales and pricing by
  SKU
• Ability to look at your competitor in same view
• Perform opportunity gap analysis by store
• Create a retail ROI by Store

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Questions ????
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