The Defense Commissary Agency - PowerPoint PPT Presentation

Loading...

PPT – The Defense Commissary Agency PowerPoint presentation | free to download - id: 73981e-OWQ5Z



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

The Defense Commissary Agency

Description:

Title: Slide 1 Author: moffetbm Last modified by: Alan Nissalke Created Date: 1/24/2005 9:01:07 PM Document presentation format: On-screen Show Company – PowerPoint PPT presentation

Number of Views:43
Avg rating:3.0/5.0
Slides: 49
Provided by: mof67
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: The Defense Commissary Agency


1
The Defense Commissary Agency
Sales
February 28, 2007
Mr. Thomas E. Milks
Director of Sales
2
Agenda
  • Organization
  • Issues Affecting Consumer Package Goods (CPG)
    Industry
  • How We Did
  • Perimeter
  • Center Store
  • 2007 Initiatives

3
Directorate of Sales
Organization Effective January 22, 2006
4
Important Issues Affecting CPG Industry
  • Globalization
  • Continual product portfolio management
  • Price line vs brand name products
  • Rising costs
  • Supply chain complexity

5
Important Issues Affecting CPG Industry
  • Anti-aging products
  • Chocolate the darker the better
  • Junk food made over
  • Locally grown food
  • Probiotics in yogurt and beyond

6
Important Issues Affecting CPG Industry
  • Consumer segmentation affected by shifting
    consumption patterns
  • Health
  • Convenience
  • Lifestyle
  • New
  • Age
  • Gender
  • Income
  • Traditional

7
Need for Strategic Partnerships
  • Redefine relationships
  • Create value
  • Achieve goals
  • Customize programs
  • Create WOW factor

8
How We Did
  • Last year sales vibrant
  • 48M above prior year
  • Perishable numbers simply outstanding
  • Shift from center store sales occurring, but not
    as severe as retail
  • Promotional support continued to outpace
    supermarkets
  • Last years savings held steady at 32
  • DeCAs temporary price reduction (TPR) dollar
    fair share index highly developed _at_ 136

9
CY 2006 Promotion Recap
  • Billboard categories drive results
  • 400 Power Buys
  • 975 Primaries
  • 200 Managers Special
  • Overall lift percentages outstanding
  • Unit Lift 51.5
  • Dollar Lift 25.6
  • Program generated 47.4 Million in savings over
    regular
  • DeCA price
  • Added an estimated 1.5 basis points to overall
    DeCA savings percentage

10
The Early Signs
  • First quarter results very positive
  • Sales up slightly more than FY year end goal
    (13.5M)
  • European sales stronger than anticipated
  • Future quarterly ACV contributions calendar
    shifts will tend to normalize early results
  • December sales were exceptional
  • Total exceeded 500 Million
  • Largest single sales month of the new millennium

11
Commissary Sales--Total DeCA YTD
FY 2006 Vs. FY 2007
1.7
1.9
-0.8
FY 2006 FY 2007
1401
1414
Cumulative YTD Sales
1.0
13
FY 2007 Strategic Sales Target 5.430B
12
DeCA Customer Transactions
FY 2006 Vs. FY 2007
Transactions
-1.0
-1.3
-0.4
Millions
-0.212 -0.9
23.511
23.299
Cumulative Transactions

Sales Per Transaction Year Oct
Nov Dec Jan Feb
Mar Apr May Jun Jul
Aug Sep YTD FY 2006 58.28
59.22 61.15 58.06 58.93 58.01
58.71 57.04 58.05 57.60 57.74
60.03 59.57 FY 2007 58.57 60.57
62.83 60.69
13
DeCA's Top 15 Sales Days of the 21st Century
Rank Date Net Sales Event
1 1/31/2004 26,032,612.39 Super Bowl
2 2/3/2007 26,029,117.16 Super Bowl
3 11/18/2006 25,255,742.11 Thanksgiving
4 2/2/2002 24,835,463.69 Super Bowl
5 11/19/2005 23,802,452.46 Thanksgiving
6 11/17/2001 23,765,390.19 Thanksgiving
7 2/4/2006 23,571,575.01 Super Bowl
8 3/3/2001 23,308,730.41 Pay Day
9 7/1/2005 23,169,866.86 July 4th
10 12/30/2005 23,125,008.98 New Year's Eve
11 9/2/2006 23,100,835.32 Labor Day
12 12/2/2006 22,896,133.19 Pay Day
13 11/20/2004 22,860,682.25 Thanksgiving
14 9/30/2006 22,638,613.41 Pay Day
15 2/3/2001 22,616,317.60 Pay Day
14
September Case Lot Sale
Event Year DeCA Worldwide Cases DeCA Worldwide Dollars Western Region Cases Western Region Dollars
2005 1,599,283 11,666,779 721,952 4,970,431
2006 1,828,631 12,558,388 845,636 5,398,058
Percentage Change 14.3 7.6 17.1 8.6
15
Club Pack Program
  • Summer Program
  • Year Units Dollars
  • 2003 1,072,866 5,391,879
  • 2004 1,936,651 9,986,974
  • 2005 2,886,471 14,064,224
  • 2006 4,195,379 23,116,284
  • Winter Program
  • 2005 1,568,386 8,342,999
  • 2006 2,053,793 12,151,444

16
Holiday Closure Sales Impact
  • Began this FY (includes all holidays except
    Veterans Day)
  • Four 7-day stores close on holiday
  • Fifty-one 6-day stores close day after holiday
  • FY 2007 impact to date (5 holidays)
  • Sales measured for 1-week periods centered on
    holiday
  • 55 stores that changed hours 1.6
  • Rest of DeCA 1.4
  • Bottom Line No adverse impact

17
Perishable Departments
  • What was the fastest growing sub-department???
  • Produce?
  • Deli?
  • Bakery?
  • Sushi To Go?
  • Hot Foods?

18
The Producers
Perimeter Departments
  • All perishables dollars up 5.9M
  • Perishable percent of Agency gain equals about
    41
  • First quarter trends leading the DeCA way
  • Produce 5.6
  • Deli 3.0
  • Bakery 5.0
  • Sushi 51.0
  • Hot Foods 14.3
  • Meat trend still down _at_ -3.2, but improving
  • Classification change impact disappears in March

19
Produce Sales
A New Vision
  • New procurement area
  • Area 6 Sales up 530K Nov / Dec 06
  • Represents 4.6 gain in produce sales
  • ACV contribution grew to 7.3 for two month
    period
  • Produce contribution to area incremental sales
    87

20
Prepackaged Deli Changes
  • Introduction of tubs has shifted buying patterns
  • MBU responded
  • Cleansed mix through category review
  • Altered case merchandising profile to maximize
    return
  • Shift in merchandising expanded shelf space,
    reduced number of pegs, and improved tub utility
  • Anticipated impact on annual sales Plus 1.5
    Million

21
(No Transcript)
22
(No Transcript)
23
Prepackaged Deli Changes
Class Current Shelves Plus-Up Total Shelves
K1 2 4 6
K2 3 9 12
K3 K5 8 6 14
24
Meat Produce Ads
  • Intent is to billboard perishable departments
  • Use in DeCA circulars/post newspaper inserts
  • Parallels retailer norms
  • Capitalize on customers menu driven psychology
  • Build sales synergy incremental volume across
    total promotion package

25
(No Transcript)
26
(No Transcript)
27
(No Transcript)
28
Seafood Road Shows
  • Early year results mirror previous successes
  • 10 DeCA West events so far this fiscal year
  • Most sales conducted over three-day period
  • Total sales generated 143,051
  • Percent of total store sales same period 0.37

29
Driving Perimeter Sales
  • Be aggressive use the glass is half full
    approach
  • Meat truckloads / seafood roadshows
  • Farmers markets / plant truckloads
  • Complement with special contractor sales efforts
  • Use all authorized media/methods to get the word
    out
  • Be ready for perishable ads in base newspapers
  • Coordinate efforts with local exchanges to
    maximize return
  • Cross-merchandise build a total store plan
    execute

30
The Center Store
  • Which category is most impulsive ???
  • Carbonated Beverages?
  • Energy Bars?
  • Salty Snacks?
  • Crackers?
  • Snack Bars?
  • Cookies?
  • Candy?

31
(No Transcript)
32
Reinventing the Candy Aisle
  • Premium chocolate section
  • Dark chocolates
  • New item introductions
  • Health well being
  • Antioxidants
  • Organics

33
(No Transcript)
34
The Baby Care Center
  • Integrated merchandising set
  • Toiletries over baby wipes builds sales synergy
  • Brand blocking adds visibility
  • Concept fully vetted thru virtual in-store
    tests
  • Baby wipes result
  • Dollars per purchase occasion up 24
  • Units per purchase occasion up 25
  • Toiletries result
  • Dollars per purchase occasion up 20
  • Units per purchase occasion up 8
  • Potential DeCA sales growth 1.3M

35
The Item Selection Form
  • Whats the most common error on 40-15s???
  • Invalid GTTNs?
  • Invalid case packs?
  • Erroneous product dimensions?
  • Erroneous tie tier?
  • Erroneous availability dates?

36
Data Quality
  • 78 of 40-15s being returned
  • Types of errors/omissions
  • Missing/invalid GTTNs 38
  • Invalid case packs 5
  • Erroneous product dimensions 5
  • Erroneous tie tier 2
  • Product availability dates 50
  • Refers to availability at distributor (FDS)
  • Refers to availability for delivery (DSD)

37
Swell Allowance Program
  • Pilot test successfully completed (Oct-Dec 06)
  • Five participants
  • Kelloggs, JJ, Nestle, Nabisco, Callard Bowser
  • Twelve vendors added last month
  • Additional vendors to be added monthly
  • Participant consensus positive

38
Dead Stock Program
  • Deletion decision made (mfg or buyer driven)
  • After 30 days, paperwork processed by File
    Maintenance
  • Item flagged for phase out in DIBS
  • Held on file for 30 days (60 days for NW box,
    Hawaii stores)
  • If distributor wants to eliminate residual stock
    remaining
  • Broker follows procedures in NTT 05-33 (12
    January 05)
  • DeCA receives 50 markdown for dead stock
  • After 30 days as dead stock in DIBS, item deleted

39
What We Plan for 2007
  • Hire front end buyer
  • Evaluate return on investment
  • CARTS/SCO impact
  • Queuing line solution?
  • Impulse items

40
What We Plan for 2007
  • Internet business
  • Develop/implement third party module
  • Expand special pack module, match mix to occasion
  • Emphasize growth categories
  • Drive sales
  • Leverage competitive strengths
  • Focus mix changes on emerging segments
  • Improve promotional flexibility
  • Correlate with partners strategic goals to
    maximize incremental growth
  • Ensure capability to integrate new item launches
    and react to changing market conditions
  • Extend departmental coverage to include perimeter
  • Assess success using pre-defined metrics

41
What We Plan for 2007
  • Evaluate product mix frequently on marginal
    return basis
  • Relate to known segment trend information
  • Specify new item performance objectives up front
  • Periodically assess planogram sufficiency as SOP
  • Create a focused view of future market
    conditions
  • Collective effort thru Commissary Council
  • Use hard/soft data and manufacturer RD insights
  • Predict most likely mix of goods/services
    demanded by future consumers
  • Build suite of operational tactics to move
    forward
  • Establish 1/3/5 year objectives to measure
    movement toward end state
  • Refine plans on the move as conditions/insights
    warrant

42
Does Category Indexing Work?
  • 32 Categories downsized Dollar Result .71
  • 92 Categories upgraded Dollar Result 1.78

43
Category Review Reset Results
  • Four categories reset _at_ Ft Lee in January 2006
  • New planograms installed within first week
  • Sales impact evaluated for subsequent 24 week
    period
  • Dollar increases dramatic compared to same period
    PY
  • Gains ranged between 3.1 and 15.5 for identical
    mix
  • Overall change in dollars for categories involved
    7.4
  • 60 day set implementation policy could build
    sales quickly
  • As more set results quantified, sales estimate to
    be developed

44
May 2007 Case Lot Procedures
  • MBU established look-ups to include regular case
    price sent to store via normal file maintenance
    procedures
  • Stores must use established look-ups to get sale
    price
  • Scandown will be used to establish sale price

Does Not Apply to DSD
45
Promotions 2007
  • Treasure hunt with club packs build shopping
    fun
  • Match your mix to patron faces
  • Use as lever to enhance trade support throughout
    store
  • Expansion of display-ready pallets
  • Big buck opportunity _at_ minimal labor cost
  • Well try to send visuals details in advance
    electronically
  • Streamlining promotional package size
  • Eliminating listing of line item extensions

46
How to Grow Sales
And Create Excitement!
  • Focus on perimeter
  • Produce
  • Meat/Seafood truckload sales
  • Cross merchandising
  • Impulse items
  • Club pack program
  • Case pack sales
  • Organics
  • Execute

47
How to Grow Sales??
"WOW"!!!
CREATE
48
Questions?
About PowerShow.com