Business Intelligence and FMCG Glossary: #perfectstore
What is a perfect store?
The concept of the perfect store considers all the elements of the marketing mix that can be implemented at point-of-sale level to increase sales. For distributors, proposing shoppers a”perfect store” is the heart of the activity and mobilizes most of the workforce. For a manufacturer it is about ensuring that the offer agreed with the distributor is perfectly implemented and responding to the shopper’s expectations of the for example in terms of:
- Presence of the defined efficient assortment (OSA)
- Correct placement of the products to make the purchase easier for the shopper (merchandising).
- Availability of negotiated promotions in adequate quantity and visibility
These elements have always been the basis of the retail trade, but the concept of “perfect store” has recently taken on a new dimension for the manufacturer/supplier with the possibility of measuring the different parameters thanks to recently available technological tools.
The first step is for Trade Marketing and Category Management departments to establish quantifiable and measurable targets to be monitored in store thanks to the available CRM tools. Each lever is weighted according to its strategic importance (previously defined thanks to impact studies) and the resulting scoring linked to the sell out results of each store to validate its effect.
The keys to the implementation and success of a “perfect store” process are:
- Strategic clarity over the importance of each operational lever at POS level
- Optimal collection of information in store with minimal additional work for the sales force
- The ability to process and link CRM data with sales result data such as Sell Out by store, retailer panels, or Sell In
- Above all, being able to make quick and eficient operational decisions with the information generated