fefco 2013 conprinta shelf ready packaging

8/12/2019 FEFCO 2013 Conprinta Shelf Ready Packaging

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ShelfShelfReadyReady PackagingPackaging WhoWho benefitsbenefits??

Session co-chairs:

Joe Dybell, Tesco

Jonathan Pearce, Nestl


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1. Welcome by ECR Europe Executive Board members 5

2. Introduction by Session co-chairs 5

3. Benefits of SRP for the consumer/shopper 15

4. Retailer perspective 15

5. Manufacturer perspective 206. Panel Debate 25

7. Conclusions 5


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Philip Clarke

International and IT Director

ECR Europe Executive Board member


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Jacques Vincent

Vice-Chairman & COO

ECR Europe Executive Board member


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Introduction SRP is a reality today

Multiple solutions multiple points of view ECR Europe is mobilising the industry around

collaboration on this important topic

Principles

Functional requirements

Business case

Todays session - Need for clarity on who benefits


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SRP at the Moment of TruthA Shoppers Perspective

Tarun PatelHead of Supply Chain & ECR

[email protected]


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An Introduction to IGD

International organisation specialising in retailing,supply chain, category management, and shopper research

Over 600 members spanning the demand and supply chain

Manage ECR UK and are involved in ECR Europe

A team of 30 analysts, all with industry experience

Focus on the major international developments: Detailed insight on 100 international retailers and 39 markets

Discounters, Emerging Markets, Global Retailing, Private Label

SRP, Category Management, Availability, Logistics, Demand Forecasting

www.igd.com


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Agenda

Understanding the shopper issues France

UK Germany Spain

Views and feedback on SRP

Is the Shopper Ready for SRP?


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Effects of the SRP on the shopper

Yes, 22%

No, 78%

Source: IGDs International SRP Report, www.igd.com/srp

Has the industry assessed the effects of SRP on the shopper?


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IGDs SRP Shopper Research

Capturing insights directly from shoppers:

Quantitative Analysis

Spain Germany UK France

Qualitative Insight

Focus Groups Accompanied Shopping Trips



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I cant find the product I want in the store

52

37

10

2

41

50

8

1

28

51

16

5

33

51

13

3

0% 20% 40% 60% 80% 100%

Very frustrating

A littlefrustrating

Not very

frustrating

Not at all

frustrating

% Main Shoppers

France UK Germany Spain

It is easy to find the ham

aisle but not easy to f ind

which ham you want



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The product I want is often out of stock

62

29

8

2

59

33

7

1

51

37

8

4

43

35

13

9

0% 20% 40% 60% 80% 100%

Very frustrating

A li ttle frustrating

Not very

frustrating

Not at all

frustrating

% Main Shoppers

France UK Germany Spain

Im going to change the shop I

use because the one I go to now

never has everything in stock

that I want Source: IGDs International SRP Report, www.igd.com/srp


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Reaction to out of stocks

50

26

37

28

17

8

10

53

18

18

42

29

11

9

14

5

5

6

59

0 10 20 30 40 50 60

Buy the product from another

store

Buy a different brand of the

product

Wait until next time to buy the

product

Buy a different size of the

product

Do not buy product at all

% Main Shoppers

Spain

Germany

UK

France



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Top 5 out of stocks categories

France

28

24

23

20

18

0 10 20 30 40

Hair and Beauty

Household cleaning

Dairy

Frozen foods

Fresh meat and fish

UK

27

26

20

19

16

0 10 20 30 40

Bakery

Fresh fruit and vegetables

Dairy

Frozen foods

Fresh meat and fish

Spain

31

2423

21

19

0 10 20 30 40

Dairy

Bakery

Household cleaning

Hair and Beauty

Frozen foods

Germany

26

22

18

15

15

0 10 20 30 40

Fresh fruit and vegetables

DairyFrozen foods

Fresh meat and fish

Chilled Meals



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Views on Shelf Ready Packaging

0 10 20 30 40 50 60 70

Makes it easier to find products

Helps draw attention to new products

Stops the product getting damaged

Makes supermarket shelves look clean and tidy

Makes the shelves look more appealing

There is often empty packs on the shelf

Makes it harder to take the products from the

shelf

Too much packaging on supermarket shelves

% Main Shoppers

SpainGermany

UK

France

Positive

N

egative



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How does SRP make it easier to find products?

You can see what they are. If

information is on the lid it is good to

display them face out


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Makes the shelves look more appealing

3330 29

3330

33

25

30

18

32

34

30

23

0

5

10

15

20

25

30

35

40

Auchan

Carrefour

Leclerc

interm

arche

Tesco

Asda

Sain

sbury

Morr

isons

Aldi

Lidl

Plus

Mercadona

Carrefour

%M

ainS

hoppers

30% 30% 27% 29%



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Makes the shelves look clean and tidy

3634

29

39

25 2421

32

27

36 37

56

43

0

10

20

30

40

50

60

Auchan

Carrefour

Leclerc

inter

marche

Tesco

Asda

Sa

insbury

Mo

rrisons

Aldi

Lidl

Plus

Mercadona

Carrefour

%M

ainS

hoppers

30% 25% 33% 47%



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Makes it harder to take products from the shelves

4

8

1413

1211

18

11

8

13

8

13

21

0

5

10

15

20

25

Auchan

Carrefour

Leclerc

int

ermarche

Tesco

Asda

S

ainsbury

M

orrisons

Aldi

Lidl

Plus

Me

rcadona

Carrefour

%M

ainShoppers

10% 13% 9% 17%



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Safety


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Additional comments

Its good in the box once they

have enough staff to remove

the empties

The only problem I have gotwith it is the fact that the

manufacturers are going to

charge the supermarkets

more to make their job easier

for them but that price is then

passed on

It doesnt offend me as long

as its not all battered and

there is somebody coming

around to take the emptiesaway and that you have not

got to struggle to get what

you want



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Is the shopper ready for SRP?

Shelf ready solutions are on show

It affects the shopper!

Out of stocks and finding products are key issues

Get this wrong and the shopper will walk

One third of shoppers think there is too much packaging already

Shoppers do think packaging can make it easier to find product

But shoppers want reassurances that SRP wont cost them extra

Is shopper ready for SRP?

Thank you and please visit the

IGD stand at D1 for further information

www.igd.com/srp

Direction Gnrale


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XH - SRP Implementation Page 27Direction Organisation Systme et Supply chain May 30, 2006

Direction Gnrale

Shelf Ready Packaging

Carrefour

ECR Europe Conference

Stockholm, 30th

May

Xavier Hua Carrefour

Direction Gnrale


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XH - SRP Implementation Page 28Direction Organisation Systme et Supply chain May 30 , 2006

Direction Gnrale

Agenda

Objectives and guidelines

Deployment plan

Key learnings and

recommendations

Direction Gnrale


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Initial objectives for SRP implementation

SRP project started in Carrefour end of 2004, being an element of ourstrategy

2- Clarify the legibility of the shelvesand improve the merchandisingstructure

1- Improve the price image ofCarrefour stores

4- Facilitate promotiondisplay and maintenance

of the permanent range

3- Improve the store operatingprocesses (out of date, shrinkage, outof stocks )

5- Decrease Supply Chain

costs

50%


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Direction Gnrale


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Deployment plan

SRP is part of our global strategy and will be deployedacross all countries

France has been the first country where we started SRP implementation endof 2004Other European countries have come into the scope during 2005We are now starting the project in Asia and Latin America

SRP will be applied to all categories where it provides

benefitsFood categories have been prioritized in order to get optimal benefits,combining sales volume and shelf refilling complexity

Non Food categories are currently being analyzed in more detailsThe target is to integrate more than 50% of the volume in SRP (PAV), with anearly full coverage for Private Label Products


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Direction GnraleSRP international roll out


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Supply Chain Groupe

Direction Gnrale

Supply Chain Groupe

Direction GnraleDploiement PAV fvrier 2006Dploiement PAV fvrier 2006

PAV colis Fevrier 2006 Groupe

24,33%

9,80%11,03%

16,47%

10,73%6,92%

14,72%

1,03%

9,94%

1,70% 2,58% 2,74%

9,96%9,40%

0,00%

5,00%

10,00%15,00%

20,00%

25,00%

30,00%

France

Hyper

France

Super

BelgiqueHy

per

BelgiqueS

uper

EspagneHyper

EspagneS

uper

Italie

Hyper

Italie

Super

Polog

ne

SuisseGrce

Portugal

Turquie

Hyper

Turquie

Super

Colom

bieBrsil

Argentine

CoreChine

Taiwan

Thailande

Singapour

Malaisie

Indonsie

0,00%

5,00%

10,00%15,00%

20,00%

25,00%

30,00%

% PAV colis Pays

% moy Groupe

PAV pal Fevrier 2006 Groupe

109

45

98

45

103

137

51

20

71

40

12

84

4

0,5

6%

0,3

2%

0,4

1%

0,0

4%

0,0

8%0

,25%

0,5

5%0

,24%

2,6

7%

0,5

8%0

,40%

0,3

4%

0,8

5%

020406080

100120140160

France

Hyper

France

Super

Belgique

Hyper

Belgique

Super

Espagne

Hyper

Espagne

Super

Italie

Hyper

Italie

Super

Polog

ne

Suiss

e

Grce

Portugal

Turquie

Hyper

Turquie

Super

Colom

bieBrsil

Argentine

Core

Chine

Taiwan

Thailande

Singapour

Malaisie

Indonsie

0,00%

0,50%

1,00%

1,50%

2,00%

2,50%

3,00%

nb PAV pal

%PAV Pal Pays


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Direction Gnrale


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Thank You


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Shelf readypackaging

Graeme Carter, Procter & Gamble

ECR Europe Conference and Marketplace

Stockholm May 30, 2006


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Principle 1


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Principle 1

Retail Ready Packaging should only bedelivered where it adds value for the

consumer

Shelf Ready Packaging - A challenge


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Prod + Sales

Growth could

be

> costupcharge

Shelf Ready Packaging A challenge

VALUE CREATION FOR CONSUMER LOSS FOR CONSUMER

Productivity +

Sales Growth

>> cost

upcharge

Productivity


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Principle 2

Standardization will drive costs down

The impact of standardization


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Productivity +

Sales Growth

>> cost

upcharge

The impact of standardization

Lower supplier costs

Productivity

costupcharge

Advantage Challenge

VALUE CREATION FOR RETAILER LOSS FOR RETAILER

Test

VALUE CREATION FOR CONSUMER LOSS FOR CONSUMER

Principle 3


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Principle 3

When you decide to deliver RetailReady Packaging, make it a joint winner

How to win with Retail Ready


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How to win with Retail Ready

Packaging Deliver the basics:

Easy to find Easy to open

Easy to shelve

Easy to dispose Easy to shop

Avoid Industrial packaging or brown corrugate Present the right Brand image

No longer a differentiation now a cost of entry

Where to Win


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Where to WinExamples

Out of Scope


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pExamples

Industrial Packaging


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g gAn Example


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In summary


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y

Retail Ready Packaging should only be delivered where it

adds value for the consumer

Standardization will drive costs down

When you decide to deliver Retail Ready Packaging, make

it a win/win/win solution


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The How


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Colgate-Palmolive Company

Shelf-Ready Packaging

The How

Pelin KarakasECR Europe Conference, May 29-31, Stockholm


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Oral Care Personal Care

Home Care Pet Nutrition

2006: Our bicentennial anniversary

30,000 employees worldwide Markets in over 200 countries

Worldwide sales of $ 11.4 billion

Using SRP to create value for


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the shopper

Understand where SRP can improveefficiency / shelf availability

Leveraging the global expertise

Ensure a consistent implementation

With no cost to consumer

Colgates Response to SRP


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g p

A long-term project

Centrally driven

With a cross-function approach

The Roadmap


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Define good SRP for COLGATE

Evaluate portfolio, identify gaps

Leverage existing SRP

Implement quick wins Build the business case for high

investment projects

Think SRP in new project design

THE SCORECARD


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The Scorecard:


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Looks may be deceiving Dental Cream Stand-up Tubes

One-step replenishmentOpening is difficult: not quicker to shelf

Meets all other requirements

Action: solve opening issue


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What The Scorecard showed:


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Focus on the functional requirements

Every product needs to be evaluatedindividually

SRP is not black/white; its continuousimprovement

In Summary - SRP for Colgate:


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Understand the functional needs

Ask the question at new product

design

Multi-national, cross-functional

approach

Implement where it adds value for the

consumer


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Panel debate, Q&A from audience 25

Graeme Carter / Procter & Gamble

Joe Dybell / Tesco

Xavier Hua / Carrefour

Pelin Karakas / Colgate-Palmolive

Tarun Patel / IGD-ECR UK

Chris Lewis / Smurfit Kappa Group

Moderated by: Jonathan Pearce / Nestl


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Conclusions


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ProposedProposed ECR EuropeECR Europe PrinciplesPrinciples for SRP:for SRP: Always of value to the consumer/shopper, retailer andmanufacturer

In line with total supply chain efficiency principles Compliance with environmental legislation & public

policy concerns

Avoid fragmentation & complexity Maintain brand identity

Measure implementation

Need for long-term commitment


fefco 2013 conprinta shelf ready packaging

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