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Solution Overview © 2013 SAP AG or an SAP affiliate company. All rights reserved. Customer-Centric Merchandising Retail Customer-Centric Merchandising Executive Summary SAP Solutions SAP Innovations References Contact Us © 2013 SAP AG or an SAP affiliate company. All rights reserved.

Customer-Centric Merchandising

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Shoppers have so many choices in where and when to shop. They also have unprecedented knowledge – and power – right at fingertips. It’s more important than ever to bring customer information into merchandising processes by using a technology platform that enables real-time insight and actions.

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Page 1: Customer-Centric Merchandising

Solution Overview

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Customer-Centric

Merchandising

Retail

Customer-Centric Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Page 2: Customer-Centric Merchandising

2 / 28 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Shoppers have so many choices in where and when to shop. They also have

unprecedented knowledge – and power – right at fingertips. It’s more important

than ever to bring customer information into merchandising processes by using

a technology platform that enables real-time insight and actions.

Next-generation challenges– such as show-

rooming, online price comparisons, rapidly

changing assortments, and wavering brand

loyalty – have led to fundamental changes in

merchandising. Yet, even some of the most

ardent practitioners of consumer-centric pro-

cesses can find it difficult to adapt to these

rapidly changing trends.

By building customer knowledge into process-

es and having the ability to adapt and change

in real time, retailers can gain a significant

competitive advantage.

Many retailers acknowledge that the inability

to identify new ideas and innovate quickly on

price, promotion, and customer preferences

is an obstacle to success. By managing high

volumes of customer data in real time, coupled

with predictive insight and mobile device-

compatible processes, retailers can keep

ahead of demanding shoppers.

Retailers that incorporate real-time customer

data in merchandising practices and philoso-

phies will grow market share and maintain a

loyal customer following.

Building Customer Loyalty

Customer Knowledge

Customer-Focused Merchants

SAP Innovations

The Profitability Imperative

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Page 3: Customer-Centric Merchandising

3 / 28 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Building explicit customer knowledge into the practice of assortment, pricing,

targeted promotions, and marketing can help improve top-line growth, as well

as retain and grow a loyal customer base.

Appeal to your customers through a targeted

range of offers and assortment. Alignment

of pricing with sensitivity, understanding,

and competitive transparency into customer

response help grow profits and loyalty.

Use real-time technology to capture rapidly

changing consumer information, and build a

library of deep, actionable customer insights.

By capturing trends in real time, you can reap

opportunities that will distance you from the

competition.

Plan assortments by using more scalable and

modern techniques that build preferences and

quick turnaround into the process. With intuitive,

yet powerful, technologies, you can help ensure

assortments and financial plans will deliver and

exceed expectations.

Create marketing and merchandising strategies

that appeal to customers of today and capture

the customers of tomorrow. By placing enter-

prise mobility at the forefront of interactions

with shoppers, store associates can react to

the real-time action of every customer.

Merchandising Through Customers’ Eyes

Best-Run Retail

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Customer Knowledge

Customer-Focused Merchants

SAP Innovations

The Profitability Imperative

Page 4: Customer-Centric Merchandising

4 / 28 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

12.6%

Customer habits are rapidly changing. To appeal to them, retailers need to bring

customer insight into all merchant-centric processes and actions using real-time

analysis and reaction functions. This will help ensure a thriving and profitable

growth brand.

Building the Brand Through the Customer

Higher cross- and up-sell for

organizations that leverage

business intelligence to gain

customer insights that enable

effective product positioning

Source: SAP Performance

Benchmarking

To start executing with your customers in mind,

you must first understand them by using tradi-

tional analysis approaches augmented with

two new key functions. The first is the ability to

analyze data to predict customer behavior,

which empowers retailers to detect changes in

trends – before their effects show up in revenue

and profit figures. The second is harnessing

a platform built to deliver the scale of this pre-

dictive customer insight in real time.

In addition, newer and differentiated assort-

ments are also vital in this new marketplace.

The ability to plan with newer dimensions and

faster times to plan are keys to success.

Furthermore, promotions must be integrated

with marketing campaigns and be relevant to

the customer. Imagine that a shopper has just

scanned an item in your store, and you could

instantaneously send a relevant offer to that

shopper. Studies have shown that this can

materially boost response rates.

At the point of purchase, it is imperative to

know customers’ sensitive or key value items.

Whether they purchase based on price compar-

isons or prefer an assortment choice that is

most relevant to their lifestyle, shoppers are

loyal to retailers that get the mix right.

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Customer Knowledge

Customer-Focused Merchants

SAP Innovations

The Profitability Imperative

Page 5: Customer-Centric Merchandising

5 / 28 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

A customer-centric approach that includes rapid analysis and response

functionality will set the successful retailer apart.

SAP solutions that harness the power of real-

time in-memory analysis deliver capabilities

needed to react to today’s customers.

As tastes change and demographics rapidly

shift, retailers must be able to quickly analyze

these variations to predict the actions of

changing target segments through all channels,

including online and traditional stores.

Advances in analytics functions include scaling

to plan assortment and using store clusters

defined by location and behavior patterns. This

can improve the planning process and make it

relevant to customers.

Empowering the sales associate with mobile,

on-the-floor access to product and inventory

information, as well as customer preferences

and behavior, can bring a new level of per-

sonalization to customer interactions and

improve customer loyalty.

Utilize new targeting approaches by basing

promotional offers on the most recent shopping

activity combined with past preference analysis

– delivered in real time to customers’ smart-

phones at the point of purchase.

SAP Innovations

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Customer Knowledge

Customer-Focused Merchants

SAP Innovations

The Profitability Imperative

Page 6: Customer-Centric Merchandising

6 / 28 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Include a customer-centric framework into merchandising practices for

maximum competitive advantage.

Gain Customer Insight

Consumers are changing their shopping habits and preferences faster than ever

before. Utilize advanced analysis techniques to understand their behavior.

Plan Assortments Effectively

Use advanced technology and applications to plan assortments by including

predictive insights.

Market and Promote Better

Shoppers need relevant and timely offers. Help ensure promotional relevance for

your marketing campaigns. Price and promote the items that appeal to your

customers at an appropriate level to gain loyalty.

Deliver Targeted Offers

Create pricing and promotion practices that help deliver higher market share and

customer loyalty with a greater understanding of local and global demand.

Analyze, Plan, and Merchandise

Customer-Centric

Merchandising

Understanding the Customer

Perfecting Promotions

Creating Enticing Marketing

Optimizing Assortments

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Page 7: Customer-Centric Merchandising

7 / 28 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

It is understood that consumers shop in many ways and

channels. Yet, it’s not well understood what drives their

preferences or changes in their behavior. By understand-

ing and predicting behavior, retailers can formulate and

execute plans to retain customers and increase

transactions.

SAP software for customer insight and pre-

dictive analytics enable retailers to capture

marketing activity and its effectiveness in one

platform.

Because the customer is represented fully,

retailers are able to track past behavior and

predict influential drivers of future behavior by

using new types of analysis.

Segmentation of attributes – such as location,

demographics, lifestyle choices, ethnicity, and

buying behavior – increase detailed under-

standing of the customer.

In addition, a full suite of reporting of traditional

retail key performance indicators (KPIs) – such

as inventory on hand, same store sales, out of

stock, and promotional activity – can be now

delivered to the store associates on a handheld

or mobile device in real time. This helps the

store associate spend valuable time on the

floor, assisting the customer and getting to know

their preferences first hand.

Social and other influences, such as total

shopping behavior, can augment this under-

standing if bringing in data from panel data

sources.

25%

Understanding Customer Behavior

Of organizations fully

leverage multichannel

communication to optimize

customer contact

Source: SAP Performance

Benchmarking

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Customer-Centric

Merchandising

Understanding the Customer

Perfecting Promotions

Creating Enticing Marketing

Optimizing Assortments

Page 8: Customer-Centric Merchandising

8 / 28 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

The new customer demands an assortment that is tailored

to their needs at a local level. Optimized merchandise

planning is a new approach that incorporates both real-

time response and predictive insight. As a result, retailers

can quickly change merchandise and assortments to

capture trend shifts.

Merchandise planning is a balance of the

science of sales and inventory management

with the art of identifying the merchandise

shoppers need. And this balance is critical to

your success.

It is more important than ever to take a realistic,

executable, and holistic approach to your

merchandising lifecycle. This approach focuses

on the specific demands of your shoppers and

the positioning of your competitors.

Retailers must integrate planning functions to

merge comprehensive, real-time performance

metrics with powerful planning and simulation

functions. By supporting product assortments

based on local shopper preferences, you can

balance your most controllable investment –

merchandise inventory – profitably.

Maintaining balance helps ensure your finance

and merchandising departments, store opera-

tions, and trading partners are all planning and

executing according to common objectives.

10%-15%

Optimizing Merchandise and Assortments

Decrease in markdowns

taken by planning inventory

and receipt flow to hit sales

targets based on turn and

weeks of supply

Source: SAP Performance

Benchmarking

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Customer-Centric

Merchandising

Understanding the Customer

Perfecting Promotions

Creating Enticing Marketing

Optimizing Assortments

Page 9: Customer-Centric Merchandising

9 / 28 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Access to technology and information that changes the

way they shop makes customers more demanding than

ever. Retailers are challenged to design innovative

marketing campaigns that appeal to customers and

enhance loyalty, while maximizing sales and profits.

Shoppers are cost conscious, highly informed,

and expect great value and choice – thanks to

online and smartphone devices that give them

access to competing information in the

marketplace.

Customers are receptive to targeted promotions

that are relevant to their current needs and life-

style. They expect new and innovative loyalty

programs that provide flexible rewards and

inspire larger baskets and repeat visits.

Designing effective marketing campaigns

requires an understanding of individual

customer expectations. Campaigns and

promotions must be relevant for the customer

and targeted to their specific needs.

Retaining customer loyalty requires a

coordinated effort that aligns marketing and

merchandising to produce effective pricing

and promotional tactics that appeal to your

most profitable shoppers.

57%

Marketing That Delights Your Customer

Lower customer churn for

top 25% of organizations,

as compared to average

organizations

Source: SAP Performance

Benchmarking

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Customer-Centric

Merchandising

Understanding the Customer

Perfecting Promotions

Creating Enticing Marketing

Optimizing Assortments

Page 10: Customer-Centric Merchandising

10 / 28 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

By combining a deeper, localized understanding of

demand, retailers can create successful and powerful

pricing and promotion practices that will deliver higher

market share and greater customer loyalty.

To be successful, retailers need to put the

customer at the center of their merchandising

world. Create and communicate targeted offers

with greater customer understanding.

Just as important in this era of high trans-

parency is the ability to adapt and understand

current and prospective shopper preferences in

real time. Knowledge in customers’ marketing

group segments is critical, and this information

should be infused with merchant-based pro-

cesses. At the same time, retailers must be

conscious of choice and assortment variety

by shopper segment.

Given this, it is imperative to provide appealing

targeted offers to your customer through multiple

channels.

By reengineering existing processes and in-

corporating available, rich customer information

into all promotional and pricing strategies,

retailers can win market share. And by under-

standing rapid changes and executing in real

time, retailers can stay ahead of the competition

and grow their brand in the market.

1%-2%

Perfecting Price and Promotions

Increase in sales by improved

pricing analysis and execution

Source: SAP Performance

Benchmarking

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Customer-Centric

Merchandising

Understanding the Customer

Perfecting Promotions

Creating Enticing Marketing

Optimizing Assortments

Page 11: Customer-Centric Merchandising

11 / 28 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Retail Value Map

SAP solutions address key requirements for customer-centric merchandising.

Real-Time Customer Insight

and Predictive Analytics

SAP Solutions

Perfect Price and Promotion

Execution

Marketing, Campaign and

Promotion Planning

Optimized Merchandise and

Assortment Planning

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Real-Time

Customer Insight

and Predictive

Analytics

Marketing,

Campaign,

and Promotion

Planning

Optimized

Merchandise

and Assortment

Planning

Perfect Price

and Promotion

Execution

Marketing

Analytics

Customer Insights

and Segmentation

Merchandising

Analytics Shopper Insight

Merchandise and

Financial Planning Channel Planning

Assortment

Planning

Marketing

Planning

Campaign

Management

Promotion

Planning

Strategic and

Operational

Pricing

Targeted

Promotions

Effective

Markdowns

Plan Optimization

Loyalty

Management

Page 12: Customer-Centric Merchandising

12 / 28 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Customer Insight and Predictive Analytics

Completely understand customer behavior and its

drivers.

View customer activity beyond sales. Analyze sales in context of the

customers’ preferences and behavior. Understand in real time the

trends that drive decisions, and deliver these insights to the people

who need them when it counts most – at the point of interaction –

regardless of point-of-purchase location.

Marketing

Analytics

SAP software for marketing analytics gives true 360-degree viewpoints into

customer activity. Analyze the effectiveness of all campaigns across all

channels.

Customer

Insights and

Segmentation

SAP provides powerful predictive analytics that enable the customers’

behavior to be classified so that more targeted offerings in areas such as

assortment and promotions can be realized.

Merchandising

Analytics

Understand how effective your performance is in real time. Get visibility into

inventory performance and other merchandising KPIs anywhere and on any

device.

Shopper Insight

SAP software for shopper insight delivers prebuilt analytics that enable

retailers to quickly put mobile analytics into the hands of their store operations

field managers.

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Real-Time Customer Insight

and Predictive Analytics

SAP Solutions

Perfect Price and Promotion

Execution

Marketing, Campaign and

Promotion Planning

Optimized Merchandise and

Assortment Planning

Page 13: Customer-Centric Merchandising

13 / 28 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

25

Optimized Merchandise and Assortment Planning

Basis points increase in

inventory turn by planning

efficient receipt flow

Source: SAP Performance

Benchmarking

Deliver profitable merchandise and financial plans.

Develop sales and margin targets in an intuitive and insightful way.

Plan across all channels within the same system. Create assort-

ments by using predictive methods, such as segmentation, to help

ensure relevant offerings. Harness demand-driven forecasting

across selling locations.

Merchandise

and Financial

Planning

Develop sales and margin targets by channel as a basis for top-down

financial planning.

Channel

Planning

Plan comp, non-comp, and new store sales performance by selling location

and labor scheduling.

Assortment

Planning

Plan product mix by category using demand-driven forecasts based on

customer and selling location characteristics.

Plan

Optimization

Optimize store and customer groups with clustering and segmentation

techniques to help ensure assortments are well balanced across selling

channels.

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Real-Time Customer Insight

and Predictive Analytics

SAP Solutions

Perfect Price and Promotion

Execution

Marketing, Campaign and

Promotion Planning

Optimized Merchandise and

Assortment Planning

Page 14: Customer-Centric Merchandising

14 / 28 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

5%

Customer-Centric Marketing and Promotions

Improvement in gross margin

of promotions by understand-

ing demand factors and using

them more effectively to drive

incremental units

Source: SAP Performance

Benchmarking

Build customer knowledge into marketing and

promotional activities.

Communicate your brands’ promise through appealing marketing

programs. Take advantage of all channels and up-to-date situational

customer behavior when communicating offers. Design and execute

advertising to improve effectiveness. Attract and retain loyal

customers through high relevancy and touch points.

Marketing

Planning Organize and manage concurrent marketing activities to present a

consistent and attractive brand image across channels and geographies.

Campaign

Management

Increase visibility of marketing plans and processes across the organization

to make quicker decisions. Embed collaboration functions to help ensure

optimal outcomes.

Promotion

Planning

Design advertising and promotional pricing that generates value and loyalty

across a diverse and demanding customer base.

Loyalty

Management

Attract and retain your best customers by creating sticky customer loyalty.

Design and implement compelling loyalty programs across channels that

maximize customer needs and wants while delivering profits to the bottom

line.

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Real-Time Customer Insight

and Predictive Analytics

SAP Solutions

Perfect Price and Promotion

Execution

Marketing, Campaign and

Promotion Planning

Optimized Merchandise and

Assortment Planning

Page 15: Customer-Centric Merchandising

15 / 28 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

1%-2%

Perfect Price and Promotion Execution

Increase in sales through

more effective pricing

Source: SAP Performance

Benchmarking

Improve merchant understanding of customer

preferences.

Gain insight into demand drivers, and utilize these insights to

determine the most effective pricing and promotional strategies for

your customers. Execute efficiently and flexibly to align with the

overall strategy. Measure effectiveness and incremental sales with

proven retail econometric methods.

Strategic and

Operational

Pricing

Conduct customer-centric strategic analyses and align operational execution

with your pricing strategy.

Targeted

Promotions

Enable an analytical and targeted approach to promotion planning and

execution.

Effective

Markdowns

Carry out advanced econometric markdown planning and execute

markdowns effectively to help ensure profitability.

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Real-Time Customer Insight

and Predictive Analytics

SAP Solutions

Perfect Price and Promotion

Execution

Marketing, Campaign and

Promotion Planning

Optimized Merchandise and

Assortment Planning

Page 16: Customer-Centric Merchandising

16 / 28 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

The retail industry has always struggled with data loads

from POS sales storage which has grown exponentially

to include new channels, consumer mobile devices, and

social sentiment tracking. It is clear that a new approach

to technology is needed to thrive in this new era.

SAP Innovations

SAP HANA

Process T-LOG transaction data in real time to garner insights into consumer preferences and

know when significant change happens.

Mobile

Interact with customer-related information, such as loyalty and product preferences available to

store associates and online channels in real time.

Analytics

Engage customers through advanced predictive analytics to forecast demand. Understand shopper

preferences and suggest offers in real time.

Cloud

Deploy new applications in record speed and interact with trading partners over one of the world’s

largest commerce cloud networks.

65% Companies that believe that

cloud technology will amplify

other megatrends, such as

enterprise mobility, Big Data,

and analytics

Source: SAP Performance

Benchmarking

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Page 17: Customer-Centric Merchandising

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All rights reserved.

SAP HANA

53% Of organizations report a big

gap between the availability

of Big Data and their ability

to analyze it for insights

Source: SAP Performance

Benchmarking

Data loads have increased with electronic tracking of

behaviors such as online browsing, social sentiment,

multichannel data collection, and reconciliation. Unified

forecasts and inventory preferences, which vary across

channel and demographics, further increase the impact

of data growth for retailers.

Sales Data in

Real Time

Real-Time Data

The availability of real-time data is now a reality. Know what your customers are

buying as the result of a large promotion in the first few hours – both in the store and

chain-wide. Assess demand patterns as they occur and gain insight into customer

behavior.

Harmonized

Demand Signals

Unified Demand

Demand is now captured across all channels and includes supply planning

approaches and demand data generated by merchandise and marketers. And just

where will all this data be harmonized and stored for use as a predictive asset?

The answer is in the format of a next-generation demand harmonization platform

that leverages the latest breakthroughs from in-memory processing.

Customer 360-

Degree Analysis

Complete Customer View

Capture the complete customer view from cross-channel behavior and sentiment

tracking, to real-time interactions at the point of buying decision. By using the latest

predictive understanding and the ability to act in real time, customers will appreciate

your attention to their preferences and become more loyal to your brand.

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

Page 18: Customer-Centric Merchandising

18 / 28 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Mobile

61% Of retailers recognize

enterprise mobility as highly

important, whereas 74% are

yet to implement this enabler

extensively

Source: SAP Performance

Benchmarking

By providing customer information at the point of

interaction, mobile devices are enabling retailers to

connect to the customer in ways not possible before.

Mobile Customer

Interaction

Mobile Customer Interaction

Use up-to-date information when interacting with customers, whether in the

store or through the online channel. Build a sense of customer intimacy by

understanding their preferences in real time.

Leverage customers’ smartphones to engage with them and offer real-time

promotions based on their recent shopping activity. This is a proven way to

deliver large improvements in response rates to promotional offers.

Mobile Price

Checking

Mobile Price Checking

When engaging with the customer in the store, respond to online price

checking and price apps by highlighting product characteristics and value-

based services beyond price alone. Augment the price discussion with

mobile solutions designed to highlight assortment availability and variety.

Look up competitors’ online pricing of an equivalent product to validate your

offering to customers.

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

Page 19: Customer-Centric Merchandising

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All rights reserved.

Analytics

90% Of retailers recognize

business intelligence and

analytics as highly important,

whereas 60% are yet to

implement these enablers

extensively

Source: SAP Performance

Benchmarking

Predictive analytics can help build the customer analysis

process to a whole new level.

Assortment

Optimization

Plan Optimization

Optimized assortment plans combine essential store clustering, product

segmentation, demand forecasting, and time-phased demand functionality

within a single solution.

Refine assortments within stores and other selling channels as a final step

by knowing the customer within each channel, and analyze sales and profit

metrics to predict an optimal mix of products for each channel.

Use the speed and advantages of the in-memory processing functionality

of SAP HANA. Analyze broad and large volumes of assortment data in

seconds to attain a concise and highly profitable plan.

Unified

Forecasts

A Single Source for Forecasting

Harmonize all sources of demand signal across all retail channels with a

unified forecasting platform.

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

Page 20: Customer-Centric Merchandising

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All rights reserved.

Cloud

85% Of companies believe

cloud technology will have a

major impact on efficiency,

innovation, or competitive

differentiation

Source: SAP Performance

Benchmarking

The speed and flexibility of cloud computing is creating

new opportunities for best-run retail companies. Cloud

solutions from SAP and the open SAP HANA application

cloud allow companies to build differentiating solutions

at the point of engagement – establishing nimble global

business networks.

Cloud

Collaboration

Collaboration in the Cloud

Cloud collaboration between retailers and manufacturers is now achievable

on a scale like never before. Leveraging the cloud functionality of the Ariba

commerce network makes it possible to build integration to facilitate effec-

tive sharing of promotional information and customer insights derived from

sales data. This can be achieved with suppliers of all sizes, while the tradi-

tional cost of network building shrinks significantly due to the scale and ease

of cloud-based collaboration. The result: Joint win-wins in trade promotion

collaboration, as well as new brand discovery and analysis techniques.

Cloud Analytics Analytics in the Cloud

Cloud-based analytics can help retailers accomplish tasks, ranging from key

value item analysis to affinity analysis. This combines predictive analytics

delivered in a consumable cloud-based environment with the latest innova-

tions in visualization.

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

SAP Innovations

SAP HANA

Mobile

Analytics

Cloud

Page 21: Customer-Centric Merchandising

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All rights reserved.

Best-Run Customers

SAP helps over 80% of the top 100 retailers run better every day.

SAP solutions annually touch $12 trillion global consumer purchases.

SAP customers comprise 50% of the world’s brand-name jeans.

SAP customers sell 86% of the world’s athletic gear.

Best-Run Customers

Bemol

coop

Chico’s

Why SAP?

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

$12 trillion Value of global consumer

goods annually touched by

SAP software

Source: SAP Performance

Benchmarking

Page 22: Customer-Centric Merchandising

22 / 28 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

SAP co-innovates with leading global retailers to prioritize and direct our solution

investments. These customers drive innovation and continuous incremental

enhancements from idea to delivery, bringing valued retail solutions to the market.

Customer Co-Innovation

Retail Executive Council

Executives share best practices for executing

key solutions today and in the future, incorpo-

rating new business and new technologies to

meet the changing retail market needs.

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

Contact Us

Best-Run Customers

Bemol

coop

Chico’s

Why SAP?

Page 23: Customer-Centric Merchandising

23 / 28 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

“Most important, our executives are now 100% in control of our budgets and

costs. We feel this is a big reason why our business is doing so well, with a

compound annual growth rate of 17% in the decade since we adopted SAP

for Retail solutions.”

Franca Bendeira, IT Manager, Benchimol Irmão e Cia Ltda.

Benchimol Irmão e Cia Ltda., known as Bemol around its

headquarters in Manaus, Brazil, operates 17 department

stores that sell everything from appliances and electronics

to furniture and telephony equipment.

Since partnering with SAP, Bemol has become a modern, agile company

widely recognized as a regional leader.

Key Benefits

Attained integration and control throughout business processes

Realized higher inventory accuracy and full traceability of goods

at all stages

Provided more autonomy for business users, easing reliance and

burden on IT

-87% Decrease in can-celled online sales due to stock-outs

+38% Improved productivity in accounting

-63% Less time required for financial closing

Customer-Centric

Merchandising

Executive

Summary

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Best-Run Customers

Bemol

coop

Chico’s

Why SAP?

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All rights reserved.

“SAP for Retail solutions help us track products not only to the store but

also to online and catalog channels. The visibility is critical to supporting

decisions that we make throughout the business to serve our customers.”

Gary King, Executive Vice President and CIO, Chico’s FAS Inc.

Chico’s FAS Inc., a $1.9 billion company with 18,900

employees, consists of 4 women’s specialty brands offering

sophisticated casual-to-dressy apparel, intimate apparel,

accessories, and gift items.

The company operates 1,225 boutiques and outlets throughout the

United States and has direct-to-consumer channels for each brand.

Chico’s implemented SAP for Retail solutions to enable a high-growth

strategy, improve merchandising decisions, and gain greater efficiency

throughout its operations.

Key Benefits

Standardized on best-practice business processes to increase

operational efficiency and facilitate multibrand capability

Established a scalable foundation for future growth

Improved ability to support sales, inventory, and purchasing decisions

through enhanced business intelligence insight

-50% Less time to create purchase orders

+75% Improved physical inventory performance

-50% Reduction in time needed for financial close

Customer-Centric

Merchandising

Executive

Summary

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Best-Run Customers

Bemol

coop

Chico’s

Why SAP?

Page 25: Customer-Centric Merchandising

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All rights reserved.

“We were able to increase our revenues from coop@home by 22% –

particularly thanks to our e-commerce platform in place. We will try to

optimize our efficiency. So far, we have made some valuable progress.”

August Harder, CIO, Coop Group

Switzerland-based coop@home is a full-range online super-

market with €20.5 billion in revenue and 75,000 employees.

Key Benefits

Orders managed without manual processing and unnecessary

intermediate steps

Standard prices and special offers incorporated from SAP for Retail

solutions directly, ensuring same pricing online

Noticeable increase in customer satisfaction

Flexibility to extend coop@home with more and differing products

and services

+22% coop@home revenues

+41% Average purchase value

+400% Quantity of products offered through coop@home revenues

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

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Best-Run Customers

Bemol

coop

Chico’s

Why SAP?

Page 26: Customer-Centric Merchandising

26 / 28 © 2013 SAP AG or an SAP affiliate company.

All rights reserved.

Software for consumer-centric merchandising offers unique predictive functionality

to closely align marketing and merchandising with customers’ needs and buying

behavior, while achieving growth across retail operations and processes.

Why SAP?

Providing Integrated, Comprehensive Software

Build forecasted customer insight into all your merchandising areas to enable targeted promotions,

optimized assortments, pricing and markdown activities, maximizing profitability and customer

loyalty.

Leveraging Key Breakthrough Innovations

Use sophisticated database and technology solutions to execute your promotions in real time,

improve your service levels, respond quicker to customer behavior, and become a more appealing

brand for your customers.

Delivering Value for 40 Years

Build scalable, yet insightful, solutions for the new generation of shoppers to meet changes in

customer behavior and increase your market share.

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

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Best-Run Customers

Bemol

coop

Chico’s

Why SAP?

Page 27: Customer-Centric Merchandising

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All rights reserved.

Customer-Centric

Merchandising

Executive

Summary

SAP Solutions SAP Innovations References

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Benchmark Your Performance

Position your organization for dominance in this new economy with the business performance

benchmarking program from SAP – available free to SAP customers and select prospects.

The SAP benchmarking program has helped more than 3,000 organizations assess their

strengths, uncover areas for improvement, and identify best practices and IT strategies that

generate clear, tangible value – not someday, but today.

Go Live in Weeks

Here’s the fastest way to run your business better: our rapid-deployment solutions. In one

package, you get everything you need to be up and running quickly – including preconfigured

software and implementation services – in just weeks. With a defined scope and predictable

costs, there are no surprises.

Join Your Community of Practices

Every day, SAP Community Network (SCN) changes the way that thousands of SAP users work.

It lets members help one another solve problems, learn, and invent new ways to get things

done – faster. Find out how to connect with people, content, and resources.

Find Out More About How Your Organization Can

Become Best-Run

Visit valuemanagement.sap.com >>

Visit sap.com/solutions/rds >>

Visit scn.sap.com >>

Page 28: Customer-Centric Merchandising

Solution Overview

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Visit us online at www.sap.com/retail.

Also, visit our community pages to learn more:

http://scn.sap.com/community/retail

http://wiki.sdn.sap.com/wiki/display/retail/IS-Retail

www.facebook.com/pages/SAP-Retail/82783264322

https://twitter.com/SAP_Retail

www.linkedin.com/groups/SAP-Retail-4022601

www.youtube.com/user/SAP4Retail

Retail

CMP 23588 (13/03)

Customer-Centric

Merchandising

Executive

Summary

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© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Page 29: Customer-Centric Merchandising

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