View
123
Download
1
Tags:
Embed Size (px)
DESCRIPTION
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.
Citation preview
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.
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
17 / 28 © 2013 SAP AG or an SAP affiliate company.
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
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
19 / 28 © 2013 SAP AG or an SAP affiliate company.
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
20 / 28 © 2013 SAP AG or an SAP affiliate company.
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
21 / 28 © 2013 SAP AG or an SAP affiliate company.
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
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?
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
SAP Solutions SAP Innovations References
Contact Us
Best-Run Customers
Bemol
coop
Chico’s
Why SAP?
24 / 28 © 2013 SAP AG or an SAP affiliate company.
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
SAP Solutions SAP Innovations References
Contact Us
Best-Run Customers
Bemol
coop
Chico’s
Why SAP?
25 / 28 © 2013 SAP AG or an SAP affiliate company.
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
Contact Us
Best-Run Customers
Bemol
coop
Chico’s
Why SAP?
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
Contact Us
Best-Run Customers
Bemol
coop
Chico’s
Why SAP?
27 / 28 © 2013 SAP AG or an SAP affiliate company.
All rights reserved.
Customer-Centric
Merchandising
Executive
Summary
SAP Solutions SAP Innovations References
Contact Us
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 >>
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
SAP Solutions SAP Innovations References
Contact Us
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
© 2013 SAP AG or an SAP affiliate company. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission
of SAP AG. The information contained herein may be changed without prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other
software vendors. National product specifications may vary.
These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only,
without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to
the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as constituting an
additional warranty.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered
trademarks of SAP AG in Germany and other countries.
Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information
and notices.