Retail Business A perception of Our

Performance Engineering

Coming up Next…

Retailing – an overviewRetail Business TrendsSWOTRetail challengesPerformance Engineering solutions for Retail businesses

Retailing – an overview

• Consumer money drives economy and Retail is the space where consumer spend bulk of money

• Consumable goods are the point of business for retailers, wholesales, distributors and manufactures

• Do You know? in USA two third of the economy GDP is supported by Retail industry

Pricing optimization Markdown management Profitability and Gross Margin Cash Maximization

Advertising Corporate Marketing In-store Marketing Media Effectiveness Customer Management / Multi- Channel Integration

Advertising, Marketing, & Promotion

Assortment Planning Category Management Replenishment / Allocation Product Development Import Optimization /

Sourcing Merchandising and Inventory

Systems Vendor Management

Merchandising Management

Data Management Reporting and KPI’s Business Case and Measurement

Business Intelligence / Analytics

Supply Chain Strategy Network Rationalization Supply Chain Visibility International Trade

Retail Chain Strategy

Format transformation Real Estate Non-merchandise asset mngmt Service and contract mngmt

Retail Asset Management

Process and Workflow Operating Structure Automated Scheduling POS Systems Loss Prevention

Operations

Retail Revenue Management

Data Standards (UCCnet) 6Sigma VICS, ECR RFID ePC

Retail Standardization

Retail Specific Vertical Offerings

Retail Solutions Development: Based Upon Industry Trends &

Opportunities

Cost reduction studies and ABC projects Workforce eLearning and labor management Space planning analysis Loss control and shrink implementations Workflow automation and process redesign Change management programs

Efficient Store Operations

Corporate Dashboard and Executive Intelligence Process redesign Replace dated technology and ERP Organizational alignment Corporate cash maximization and ABC studies Outsourcing / Shared Services / Managed

Services Change Management programs

Industrialization of Retail(Corporate Transformation)

Post merger integration services IT and process redesign and integration Assortment, brand and customer rationalization Unique offering and private label analysis Format reconfiguration and compliance standards

Retail Consolidation

Pricing determination, synchronization Markdown optimization Cash maximization and treasury management Financial supply chain analysis ABC costing and inventory valuation

Revenue Management and Financial Supply Chain

Post merger integration services (if acquisition) New store site and demographic studies Merchandising, branding and competitive

benchmarking for international markets Change and culture alignment initiatives

Global Expansion

Collaborative new product development programs Supplier relationship management programs CPFR and B2B collaboration implementation Change management programs Adjust performance metrics (reflecting

collaboration adoption and value add to participants)

Collaboration

Retail Solutions Development: Based Upon Industry Trends &

Opportunities (Cont.)

Strategic market positioning studies Target customer and product offering assessment Local branding and marketing analysis New product development and cycle time assessment Private label and bundling programs Local packaging, picking and distributing analysis

Retail De-Commoditization

CRM / BI analysis and tool implementation In-store and channel service model studies Competitive pricing models and tools Vendor SLAs, product quality standard development Benchmarking and market positioning

Heightened Consumer Expectations

GCI, UCCnet and EAN compliance 6 Sigma compliance HIPAA compliance: process and security

implementation Master data cleansing and synchronization Order and fulfillment process standardization CPFR compliance and VICs compliance IT platform standardization and EPC data tracking B2B exchange on-boarding and standards compliance

Retail Commerce Standardization

Strategic assortment based on local demand Real-time allocation tools Import optimization / sourcing analysis Vendor SLAs and VMI opportunity assessments Scan Based Trading (inventory ownership blur) EPC implementation for track and trace to feed real time

merchandising systems Centralized / adaptive procurement processes

Next Generation Merchandising

Retail Business Trends – Top View

• Declined of “Mom and Pop” store• Internet and E-Com• Problems with chained stores• Repositioning of department

stores• Rise of discount stores• Improved direct marketing• Demographic Changes

Being Aware of changing trends in the industry is crucial to success

Customer Behavioral Trend

• World population is increasingly diverse• Self-expression and individuality is a

major key rather then age, gender & occupation

• Mature customers are hard to get influenced by retailers, they are award of their value as consumers

• Consumer lifestyle is volatile• Due to diversity consumers can

represent multiple communities

SWOT

A SWOT analysis is used for evaluating strategic positions from both internal

and external perspective

SWOT

Strengths

• Discount store supremacy• Advances in management information• More sophisticated direct marketing

• Integrated SCM & CRM systems• Availability of consumer credit

SWOT

Weaknesses

• Full-price chain stores and declining at the expanse of discount GIANTS

• Retail business needs to attract customers share with super malls &

store

• “Category stores” are loosing due to over proliferation and changes in

consumer buying patters

SWOT

Opportunities

• Internet based shopping experience• Premium-prices store for upper income

customers• Low priced chains targeting growing

families with lower income• Direct sales and distributing via

internet• Entertainment in retail is a major

competitive element to attract customers

SWOT

Threats

• Traditional stores unable to compete with superstores and internet GIANTS

• Keeping up changes with customer taste• Departmental stores need to reposition

against discount store & internet selling• Convenience of internet shopping is a

threat to get back customers to shops

Increase Customer focus

• Store experience and interaction with staff hold a major key of success

• Marketing initiative such as promotions in conjunction with CRM

strategies

• Customer data analysis helps to understand the nature, habit & need,

intern position products

IT focus in Retail

• Technologies that streamline processes

• Improve communication• Reduce cost• Improve Results

Growth Areas

• Supply Chain• Cost Management• CRM• Internet• Business intelligence

Retail Challenges for Performance

• Increasing Customers Demands• Increasing Product/service Category• Increasing Product/service Promotion • Loyalty programs• Increasing Customers• Increased Sales • Order Management• Faster communication & CRM support• RFID integration• Payroll Management • SecurityIT infrastructure to sustain with

business growth and capacity

Retail additional complexities

• Unpredictable consumer growth• Unpredictable consumer behavior• Unpredictable Sales

Redefine Retail with Confidence

Can you Answer the following? If “Yes”…… “that is your confidence”

“Is your key performance pulses of businesses are identified?”

“Can your Business withstand with heavy buyers on boxer day?”

“Can your business ensure huge concurrent payments with confidence?”

“Is your business product promotions can support thousand categories?”

“Is your business stable?”“Did you choose right solution for your

business?”

But, If you have a scary look

Redefine your business Quality Qualifiers with Performance Engineering

We…

Redefine Retail optimization

with

• Industry research, Expert Judgments• Modeling for Performance Engineering

• Plug consumers of business• Business Pattern Execution

Retail Performance is the key of Business Life…

…Customers Growth is the key of Retail

Choosing Right product from the lotRight price

Right quality

In

Faster time, with reliability

Performance Center

Performance Management Lifecycle

Our Performance Engineering Solutions

• Performance Benchmarking• Capacity Planning • Business Reliability Trend• Business Scalability Structure• Business Process Performance Tuning• Reliability Prediction• Business Stress Analysis• Key Transactional Performance Validation

Thank you