SAS for Grocery Empowering grocers to engage customers at every turn
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INDUSTRY OVERVIEW
SAS for Grocery
®
Empowering grocers to engage customers at every turn
The grocery industry has changed. To
withstand the onslaught of growing com-
petitive pressures, most grocers have
embraced store brands, prepared foods
and other higher-margin items, like cards,
gifts and books. Today’s consumers,
however, know more about products,
prices and retailers than ever before, and
they no longer respond to traditional
approaches to win and retain their loyalty.
If customers aren’t satisfied with your
prices and assortment, they may take
their business to your competitor across Challenges
• Cost pressures. Grocers are facing
the street.
rising commodity prices for center store
items, food inflation and margin
How can you know your community and
pressures resulting from the economic
build rapport with your customers? How conditions of the past several years.
can you attract, retain and grow custom-
• Increased competition. The range of
ers’ trust, business and loyalty? The
competitive options today – from
answers to these challenges may lie in
convenience to mega-retailers and
the vast stores of data grocers accumu- hypermarkets – has fractured the
late from multiple sources. neighborhood grocery market.
• Data deluge. Grocers are drowning in
Unfortunately, most grocers are over-
data from a variety of sources – the
whelmed with data, and many are unable baskets purchased, the raw number of
to use what they have to make the best interrelated transactions, etc. – then
decisions for their brand. The bottom line add to that loyalty card, syndicated,
is that customer and demographic data demographic, geographic and
represents a gold mine of information, dimensional data, etc.
but many grocers have long had to rely • Changing customer demands.
solely on external parties to mine their Growing price sensitivity, increased
data and make recommendations. But access to alternate channels, and
that’s a risky proposition, considering the greater access to information makes
potential for losing customers, insight, customer behavior and preferences
market share, competitive positions and harder to predict and customer loyalty
profitability. harder to secure.
What if you could know today’s and
tomorrow’s customers, and earn their With vast experience in the grocery busi-
trust and business? What if you could ness, SAS can power your business with
deliver a pleasant shopping experience a step-by-step process to transform your
and provide a unique value? You can. company with analytics to drive results
across the grocery enterprise.
Put the engaged consumer
at the center
of your business
The SAS® Difference How SAS Empowers
® Shopper insight offerings from SAS give
you a more robust understanding of
Only SAS offers grocers fast results, with Grocers your customers, their preferences, buy-
modular solutions that let you start where ing behaviors, market baskets and affini-
your needs are greatest – with a service SAS offers solutions that put the power
ties. SAS Analytics help grocers create
offering or onsite business solution – of analytics in the hands of the business
more granular customer segments to
user, very quickly enabling those folks
to drive better revenue, margins and support more targeted marketing pro-
closest to the business to be more self-
localization, and then add on over time grams and perform market basket anal-
sufficient and proactive in understanding
as your business grows and your needs ysis to optimize in-store product mix
what drives their business and how to
change. SAS offers a full spectrum of and store organization.
tune it for peak performance.
solutions for all your marketing needs:
SAS Social Media Analytics enables you
• Shopper insights. Understand your Understand and Engage Customers to act on intelligence gleaned from
customers – their preferences, buying with Robust Shopper Insights online conversations across professional
behaviors, what they say about you in
Grocers have long had more than and consumer-generated media sites. It
social media, etc. – and use that
enough customer data, and now new lets you attribute online conversations to
insight to better attract, retain and
sources, such as social media, are specific parts of your business, enabling
grow customers and profits. an accelerated response to shifts in the
added to the mix. But what can that
• Assortment optimization. Quickly data tell you about your customers and marketplace. As an enterprise hosted
determine an executable local what they are buying? solution managed by SAS Solutions
assortment by scoring products and OnDemand, SAS Social Media Analytics
optimizing assortments based on who is tailored to your unique business chal-
is buying what, in which stores. lenges and enterprise goals.
• Inventory optimization. Ensure
proper inventory and pack-out at the
store level to maintain balanced
inventory, a sufficient service level and
an enhanced shopping experience.
• Demand forecasting. Automatically
create, diagnose, model, execute and The
reconcile forecasts across multiple
merchandise levels and locations.
• Space optimization. Create optimal
store and fixture space allocations so
you can guarantee precise space
utilization in new markets while
increasing sales in existing stores.
Engaging today’s customers requires the ability to build trust and relationships.
The SAS® Difference
(continued... )
• Price optimization. Understand
purchase behavior/elasticity, and set a
price that reinforces your brand and
The go-to-market strategy while maintaining
competitive balance to local influences.
• Promotion optimization and
marketing resource management.
Maximize margin and revenue through
improved promotion planning with a
retail workflow between marketing and
product managers, comprehensive
support for vendor deal management,
collaboration and more.
Key analytical capabilities empower grocers to actively engage customers.
• Campaign management and
marketing optimization. Efficiently
manage marketing campaigns by
targeting specific consumers across
Benefits • Discover not only which products are multiple channels (print, Web, mobile,
• Integrate information from loyalty typically bought together, but why. etc.) using a variety of analytical models
programs, transaction files, demo-
• Identify advocates of, and threats to, (e.g., RFM).
graphic appends and vendors into a
single version of the truth. corporate reputation and brand.
• Gain valuable customer insights and • Quantify interaction among traditional
identify meaningful segments. media and social media activity, and
establish a platform for social CRM
• Understand which factors influence “We chose SAS because of their strong
strategy.
customer satisfaction, long-term cus- commitment to retail and analytical excel-
tomer relationships and sales results. lence. This partnership will enhance our
guests’ shopping experience with the
implementation of SAS’ technology and
resources to provide improvements in
pricing, assortment and customer insight.”
Maura Hart
CIO, Winn-DixiePut the power of
analytics at the heart
of your business
“With stores spread throughout the An Automated Approach to Make Better Use of Selling Space with
Assortment Optimization Space Planning and Optimization
country, tastes and preferences can
vary drastically. Because SAS Space Grocers often struggle to determine Localizing merchandise assortments
which products are needed in which and successfully executing at the store-
Optimization is based on store-specific
stores in what quantities to fit into what shelf level tops every grocer’s agenda.
sales, the system allows us to allocate physical space, while simultaneously try- SAS Retail Space Management offers a
more space to the products our local ing to better understand their customers, streamlined, browser-based planogram-
customers want in each region to product proliferation and cost of space. ming solution for improving the use of
selling space, enhancing inventory pro-
meet their needs and avoid stock-
SAS takes an automated, optimized ductivity and extending space planning
outs. This has only become possible
approach to assortment optimization, power so store managers can collabo-
with SAS software.” helping you understand customer loyalty rate with associates (e.g., category
and preferences so you can determine managers and vendors).
Irja Simola the best assortment in each category to
CIO, Grocery Retail, S-Group
achieve your objectives while taking into SAS Retail Space Management includes
account your constraints (e.g., available SAS Space Optimization, SAS Space
space). The result is success in that elu- Planning, SAS Collaborative Plano-
sive “last mile,” where products ultimately gramming and SAS StoreCAD Plus.
must fit the space available. Assortment
optimization as a service offering from Benefits
SAS makes a great first step for grocers • Increase revenue and inventory pro-
before tackling other areas. ductivity.
• More efficiently map assortments to
Benefits
planograms.
• Improve margins and increase sales.
• Improve planogram performance
• Reduce costs.
visibility.
• Include a better variety in assortments.
• Enhance planogram content, and
• Increase customer satisfaction. change communications.SAS® Promotion Optimization lets you
Retail Forecasting Maximize Margins with Regular
maximize margin and revenue through
Price and Promotion Optimization
Essential decisions about assortment, improved promotion planning. The solu-
price and promotion, and supply chain Pricing has a dramatic effect on a gro- tion’s promotional planning process
execution depend heavily on under- cer’s margin. To get the price right, your enables better workflow and communi-
standing consumer demand, and it is no pricing and promotion strategies must all cation between the marketing depart-
longer adequate to create this under- align and support your company’s brand ment and product managers, as well as
standing via outdated spreadsheets or image. Setting such strategies requires a more effective method for managing
back-of-the-envelope calculations. What accurate, reliable information about not product selection for use in marketing
is needed is a highly scalable platform just what customers want now, but what vehicles. It helps you determine which
that considers the range of factors driv- they will want in the future. items or groups of items to promote in
ing consumer behavior. which locations, at what price points,
SAS Regular Price Optimization helps through which promotional vehicles
SAS Retail Forecasting predicts con- you establish and maintain optimal using advanced demand modeling and
sumer response to price changes and everyday prices, while maximizing cate- optimization techniques.
promotional activity in order to generate a gory margin and volume goals based on
demand forecast at the store level. It’s costs, regional demand and competitive Benefits
specifically designed to forecast demand price information. The solution allows for • Develop and implement optimal pro-
for long- and short-lifecycle retail prod- high-low product categories. motional plans.
ucts by considering critical causal factors
• Manage and optimize localized ver-
– price, promotions and marketing activ- An intuitive interface lets merchants,
sions of promotions.
ity – and analyzing the effects across the their assistants, category management
whole category. It’s for use by trading teams and pricing analysts make timely • Manage overlapping and conflicting
and supply chain divisions affected by profit- and revenue-maximizing deci- promotions.
price and promotional activity. sions in the context of operational con-
• Manage for trade/vendor funds in
straints. You can also predict the impact
promotion optimization.
Benefits of proposed price changes on revenue,
• Maximize stock coverage while mini- unit volume and profitability based on • Predict incremental lift from planned
mizing costs. elasticity, cross-elasticity and demand promotions – both on promoted
associated with different products. items and across the store.
• Increase inventory turns.
• Maximize return on promotional
• Model future prices and promotions. Benefits
investments, while also accounting
• Forecast effect on a whole category. • Optimize pricing down to UPC level.
for cannibalization.
• Forecast space more accurately. • Maximize category and volume goals.
• Make profit- and revenue-generating
decisions quickly in response to
product performance, market oppor-
tunities and competitive actions.Greater customer loyalty,
greater ROI
“With the help of SAS we have been Deliver Marketing Effectiveness with Increase ROI with Campaign
Marketing Resource Management Management and Marketing
able to reduce stockholding by at least
Optimization
8 percent and reduce wastage by 3 to Grocers purchase myriad marketing
services, developing circulars, mailers, As the cost of acquiring new customers
4 percent.”
collateral, running campaigns and spon- increases, grocers must focus acquisition
soring events. Much of this is managed efforts on customers with the highest
Gail Richmond
Manager, Branch Ordering Development, in an ad hoc and uncoordinated manner profit potential. In addition, implementing
Waitrose with emails, spreadsheets and other an integrated communication strategy
rudimentary tools. The result is market- across all channels, while taking into
ing inefficiencies, which lead to account customer communication pref-
increased costs, time-to-market delays erences, is becoming essential.
and weakened brand value.
SAS Marketing Automation lets you
SAS and recent acquisition Assetlink apply in-depth customer insight to your
provide the most comprehensive solu- merchandising and marketing decisions
tion available for delivering marketing by planning, testing and executing tai-
effectiveness. The solution enables more lored promotions and campaigns that
efficient marketing programs planning help you retain your highest-value cus-
and budget allocation, with workflows tomers and drive higher rates of new
that encourage collaboration among all customer acquisitions for a better return
stakeholders – including vendors – and on investment and a healthier bottom
enable the definition, tracking, coordina- line. The solution also helps you maxi-
tion and execution of multichannel cam- mize economic outcomes by making the
paign tasks. most of each customer communication.
Benefits In addition, you can increase marketing
• Align marketing plans with overall campaign ROI by determining the best
strategy. offers for individual customers and deliv-
ering analytic insight that takes into
• Integrate program budgeting and
account business constraints, such as
spending tracking.
contact policies.
• Streamline program collaboration and
execution.
• Catalog, store and reuse digital assets.Benefits About SAS
• Complete more campaigns, faster. SAS is the leader in business analytics
• Achieve better targeting and response software and services, and the largest
rates by focusing on customers who independent vendor in the business
intelligence market. Through innovative
matter most.
solutions delivered within an integrated
• Continuously improve campaigns. framework, SAS helps customers at
• Coordinate across multiple channels. more than 50,000 sites improve perfor-
mance and deliver value by making bet-
• Improve marketing ROI.
ter decisions faster. Since 1976 SAS
• Understand the impact of changes. has been giving customers around the
world THE POWER TO KNOW®.
• Enhance your contact strategy.
SAS Marketing Optimization applies
mathematical techniques to maximize
campaign return, revealing how to make
the most of each customer contact. By
determining the best offers for individuals
and gaining insight into the impact of
changing business constraints (e.g., bud-
get, channel capacity, contact policies),
you can increase your campaign ROI.
Benefits
• Improve marketing ROI.
• Understand the impact of changes.
• Enhance your contact strategy.
Only SAS provides the complete set
of capabilities needed for a customer-
focused marketing process. And
because one size does not fit all, SAS
offers a variety of deployment options
– on-premise, enterprise hosting and
SaaS.SAS Institute Inc. World Headquarters +1 919 677 8000 To contact your local SAS office, please visit: www.sas.com/offices SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies. Copyright © 2011, SAS Institute Inc. All rights reserved. 105220_77079.0711
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