Perfect Store, Perfect Point of Sale, Success Photo, or any other of the many terms used by companies to define excellent in-store execution, is an extremely complex topic, where only a small number of organizations consistently achieve exceptional levels of performance.
From the point of view of execution at the point of sale, there are two types or levels of implementation activities. The continuous work of the commercial field team (day-to-day) to ensure high levels of performance (availability, visibility, correct price, etc.) consistently, and that carried out for a particular commercial initiative (a launch, a consumer promotion, etc.). Your company must address these two different realities of execution in stores.
Why do you need to create a Perfect Store?
“70% of strategies fail due to poor execution” (John P. Kotter. Emeritus Professor of Leadership at Harvard Business School).
There are countless studies of different companies where it is shown that the differences between an average execution and an exceptional one can mean differences in sales and market share between 10 and 20%.
In a client of TMC Consultores from the food industry, who implemented a promotion to the Shopper for 6 weeks, totally different results were achieved concerning the level of execution.
Execution considered between good and excellent managed to triple sales over poor and average executions. Even stores were obtained where the promotion was not executed.
All well-developed efforts in this area tend to achieve very high returns on investment. There is no doubt that investing in Execution is a very good business.
And how can you get the Perfect Store?
In addition to the external factors (market, channels, customers, etc.) that must be carefully considered in the route-to-market model, there are a large number of internal requirements of a strategic, organizational, and technological nature, which need to be designed and implemented to be able to coordinate the plans and strategies of categories and brands to achieve a perfect implementation consistently.
To achieve the Perfect Store we must work in the following 5 steps. Let's take a look at each one of them:
Understanding the Target Shopper
A Perfect Store is based on the principle of maximizing the satisfaction and experience of the Shopper in the store, either physical or digital ones.
For this, we must have a deep understanding of the Shopper (Buyer Persona) in each of the Channels and Store Segments where the category is marketed.
This knowledge ranges from studies of Shopper behavior (Panel, Ticket-Basket Analysis, etc.), to a lot of observation work in the field that concludes with relevant and actionable Insights.
On the other hand, exceptional execution is carried out in stores owned by a third party, so to achieve the maximum performance you will require extensive knowledge of the trade channels and your key customers.
Focus your attention on understanding its characteristics, potentialities and limitations, business models, general business practices, strategies, and those specific to each category.
Define the Channel Strategy
The next thing is to integrate the information with the Category and Brand strategy and develop a unique strategy for each channel and store segment.
For this, it will be necessary to have a store classification and segmentation model that allows efforts to be focused on groups of stores with similar characteristics, purchase missions, and shopper profiles.
The lower the number of stores per segment, possibly the better, although it will also mean more work as you will have to develop at least one execution standard by segment of stores.
For example, if we have 6 store segments in a particular channel and we multiply that by 10 sales regions (different performances and portfolio), we will need to develop at least 60 execution standards (hits photos, planograms, etc.).
But surely we will be much more precise and with superior results than if we do it only in half a dozen.
The other critical issue in defining the channel strategy will be the coordination and alignment with marketing. Mechanisms must be established, from annual planning to monthly coordination.
Development of Trade Plans
At this stage, you will start translating the Channel Strategy into commercial plans and initiatives, execution standards, and materials by channel and store segment.
This is where the Trade Marketing teams will spend the most time and effort throughout the year. When a good understanding of shoppers and channels has been carried out and a solid channel strategy has been defined, this tends to be a more operational job, although with a lot of detail and coordination to ensure excellence.
Specifically here are developed:
Execution Standards (with visual guide) associated with the 4 P's: Product (Packaging, Assortment, Availability), Placement (Planograms, Display), Price (Control) and Promotion (message, visibility, Shopper Engagement).
Development of Point of Sales materials and equipment.
Support and communication with sales and field teams.
Field action plans (Sales, Operations, Support).
Control and monitoring of KPS`s
Ensure a Solid Business Organization
At this stage, you will define a clear vision of how to divide and structure functions and who will be assigned responsibilities to build a strong culture of execution.
This is definitely where we get the biggest misses in the industry. If you do not have the correct organization (structure, profiles, processes, skills, etc.), it will be difficult to carry out the 4 previous points adequately.
It is required to create a solid Trade Marketing Organization that has, among others:
A structure, position profiles and the Head-Count required to achieve the objectives and assigned tasks.
Formalized and standardized coordination mechanisms and multifunctional work processes.
The skills required from managerial positions to the most operational.
The compensation mechanisms associated with The Photo of Success in commercial teams.
Information technology for proper implementation, control, and evaluation.
Implementation
This is where you will have to execute the Trade Plans according to the standards defined at the points of sale and start measuring results.
The main activities to be carried out in this stage:
Coordination of execution teams
Execution of point of sale
Monitoring and control mechanisms
Data collection and feedback.
Leveraging existing digital technologies helps us continuously coordinate, monitor, and evaluate implementation activities.
Conclusions:
Achieving the Perfect Store will require much more than a good presentation to the sales force and an induction to the support staff.
It is a complex process that goes from the phases of analysis and understanding of Shoppers and Channels to the creation of a solid organization that can carry out all the necessary tasks.
However, all the evidence points to the fact that there is no better business investment for a company than to strengthen the execution of its point-of-sale activities.
Need help? Just dedicate 30 minutes of your time to explain your need and thus be able to propose a job offer.