Making Sure You’re Covered Contingency Planning with Alteryx

March 7, 2013

Levi Strauss & Company

Robert Smyre

• Founded in San Francisco by Bavarian immigrant Levi Strauss in 1853

• Created the first pair of jeans, patenting riveted work wear in 1873

• Introduced Dockers® khakis in 1986 to fill the wardrobe gap between jeans and suits

• Brands sold today by Levis Strauss & Company

• Levi’s® (1873)

• Dockers® (1986)

• Signature by Levi Strauss & Company™ (2003)

• Denizen® (2011)

Levi Strauss & Company

Marketplace Insights

• Consumer and Competitor Insights

• Channel Insights (wholesale, retail, brick and mortar, online, etc.)

• Data acquisition and management (syndicated, internal, survey, vendor, etc.)

• Reporting and Advanced Analytics

• Brand Equity and Social Media Monitoring

Robert Smyre

• Joined Levi Strauss & Company 6 years ago

• Previously worked for CSX Corporation, Wells Fargo Bank, Safeway, and Accenture

• MBA from Florida State University

• Originally from North Carolina

Introduction

Alteryx at Levi Strauss & Company Geo-Spatial and Demographic Applications

• LS&CO started using Alteryx in 2008 with a desktop license

• Initially attracted to its data handling capacity vs. that of existing geo-demographic

software

• Also attracted to the straightforward user interface and the ability for a new user to be

up and running quickly

• In the first year, using Alteryx the company reduced a semi-annual data compilation

project process from four days to four hours and eliminated the need for an outside

consultant to scrub data (estimated annual savings: $60,000)

• Alteryx has reduced the time needed to do ad hoc geo-spatial and demographic work –

increasing the use of these tools in projects throughout the company

Alteryx at Levi Strauss & Company

• Identify and quantify top opportunity markets using an indexed sales metric for brand

and category sales - Alteryx was instrumental in helping to turn this from a data dump to

a usable market intelligence tool

• Identify existing customers for new account approval process

• Create store and retailer profiles – ethnicity, income, age, education, etc. – for product

assortment and marketing projects

• Create market profiles to better understand product penetration in those markets

• Study new product cannibalization of existing product offerings at nearby stores

• Compile a database, including demographics and geographies, of existing doors for

remote user research projects – using Alteryx’s Calgary database tools

• Identify stores near attractions (theme parks, golf courses, etc.) for related promotions

Alteryx at Levi Strauss & Company Today

Proximity Reporting App

Link to a file

with a list of

addresses to be

mapped

Map the fields in

the column to

the listed fields Enter a single

address to be

mapped

Single Address Multiple Addresses

Proximity Reporting Output

Alteryx App output

Contingency Planning Using Alteryx to be prepared

• July 29, 2008 – Mervyn’s announces it has filed for Chapter 11 bankruptcy protection

• August 4, 2008 – Boscov’s announces it has filed for Chapter 11 bankruptcy protection

• October 31, 2008 – Mervyn’s announces it will liquidate its assets and close all its stores

• December 31, 2008 – Mervyn’s closes its final store

• January 14, 2009 – Gottschalks announces it has filed for Chapter 11 bankruptcy

protection

• March 31, 2009 – Gottschalks announces it will liquidate its assets and close all its stores

• July 12, 2009 – Gottschalks closes its final store

• September 19, 2009 – Boscov’s exits Chapter 11 intact

2008 & 2009 were difficult years for retailers

• Mervyn’s

• 177 stores in 7 states (as of February 2007 – after closing the stores in Washington and

Oregon)

• Gottschalks

• 58 department stores and 3 specialty apparel stores in 6 states (California, Idaho,

Washington, Oregon, Nevada, and Alaska)

• Boscov’s

• 41 stores in 6 states (Pennsylvania, New Jersey, Maryland, Delaware, New York and

Ohio)

Impact of Closures on Retail Landscape

Losing a favorite store can leave a shopper lost

• Consumers may wonder where to find their

favorite brands, fits, or styles

• Customers may gravitate toward new brands

if they cannot find their favorites in their old

brands

• Despite a higher degree of sophistication in

modern shoppers, people still gravitate

toward the familiar and comfortable

• Shoppers who migrate to another store will

often migrate to the brands carried by that

store if they cannot find their favorite brands

or preferred fits there

• Regional retailers are an integral part of the retail landscape and customers often have a

high degree of loyalty

• Finding nearby stores that carry the customer’s preferred size and fit will make the

transition to another retailer less taxing for the customer and facilitate his continuing

brand loyalty

• LS&CO needed to find out how many stores the other retailers had in close proximity to

the closing retailer’s stores and what kind of synergy existed in the LS&CO fits and styles

sold by each

• To facilitate a smoother transition for consumers, LS&CO would need to work with

retailers who have stores near the closing stores - to ensure they stock the sizes and fits

that customers of the closing retailer prefer

Impact of Closures

• Specify a trade area size (e.g., 5 miles) that will keep

alternate stores within the customer’s shopping pattern

• Contingency stores identified using the geocoding, trade

area, and spatial match tools

• National Chain #3 and Major Department Store would

be excluded because they’re outside the trade area

• Other stores (e.g., specialty stores and value retailers)

would be filtered out due to insufficient synergy in

product offerings

• Compare volumes, styles, proximities, demographics,

prices, and consumer attitudes to identify which retailers

may be able to best attract and handle customers from

the closing retailer and quantify the potential business

Identify Contingency Stores for Closing Retailers

Identify and Quantify the Capture Potential

Retailer

Total Brand

Units Sold

Total

Stores

Styles

Sold

Stores in

RtC Trade

Areas

Percent

Customer

Swtich

Potential

Units

Increase

Percent

Growth

Retailer to Close 1,945,008 468 16 432

National Chain #1 2,104,551 591 18 281 60% 700,702 33%

National Chain #2 2,633,658 654 12 226 60% 563,554 21%

National Chain #3 1,731,417 529 11 184 60% 458,822 26%

Major Dept. Store 1,869,114 403 21 193 40% 320,843 17%

Value Retailer 0 642 0 293 40% 487,083

• To ensure that the sizes, fits, and styles sold at the closing retailer are available at the

targeted retailer’s stores

• Identify sizes, fits, and styles that will need to be added to the target retailer’s

product mix at the store level

• Develop placards and instructions for the product displays to let migrating customers

know their favorite fits and styles are available and make them easy to find

• Pull demographics to understand potential differences in target stores and closing

stores

• Supply Chain and Logistics will need to know what sizes, fits, and styles may need to be

shipped, in what quantity, and where

• Work with targeted retailers to implement these steps

Next Steps in Contingency Plan

Thank You!