location intelligence the power of where

2009 Copyright: Insight Information & Consulting Services, Inc.

Location IntelligenceIntroduction

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Rick PensaCEO: Insight, Information, & Consulting

Services, Inc.

38 years in the CPG industry› Sales › Sales Management› Trade Promotion Management› Category Management› Consumer Segmentation & Targeting› Location Intelligence› Data visualization

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Objectives

Define Location Intelligence

Demonstrate how Location Intelligence can bring added value to the Category Management process

Questions & answers


Have you ever looked up a Starbucks on Google Maps?

2009 Copyright: Insight Information & Consulting Services, Inc. 4

Ever listed driving directions to get there?


You’ve been using Location Intelligence!

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Location Intelligence

Location Intelligence is the representation of business data on a map.


Consumer Products Leaders Find Gold In Their Demand Data:

Next Gen BI Uncovers It

“They are leveraging new insights gleaned from next-generation business intelligence (BI) tools to devise strategies to meet today’s pressing needs while also laying the groundwork to respond to tomorrow’s challenges.”

Source: Consumer Goods Technology


Poll:

Have you ever used a mapping tool?



Location IntelligenceCPG Industry Applications

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Why is Location Intelligence Important to CPG?

Stores performance…

Have you ever struggled to understand why seemingly equal stores perform differently?


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Store cluster management…

Is your retail customer asking you how to cluster stores in a more effective way?



Consumer profiles…

You know your category segments appeal to different consumers.

Do you know which stores?



Seeing your store level data…

When you see your chain’s store data on a spread sheet do you come away scratching your head?



Store causal information…

Do you know which stores should get key merchandising racks, demos and coverage?



Poll:

Are you concerned that you might be missing key insights in your store level data?

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Location IntelligenceThe Power of Where

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The Power of Where

Today, spread sheets drive category management.


The Power of Where

Imagine visualizing sales across 3,000 stores.


How many stores carry all 3 sku’s?

The Power of Where


The Power of Where

The human eye processes visual data 65,000 times faster than in tabular form.


The Power of Where

Location Intelligence software correlatesstore sales by location with associated

geo-point demographic information.


Caucasian

The Power of Where

Location Intelligence gives the ability to look at major retailers.

Wal-Mart Store Locations


The Power of Where

Instantly understand retail’s store metrics.


The Power of Where

Drill down to specifics, looking for opportunities.


The Power of WhereSales & Facings By Size Segment

Segment Facings

Segment Sales

Are facings correctly assigned?


Poll:

Do you use store clustering analysis to identify opportunities?


Cluster analysis is a grouping of stores by a common trait.

In this example, stores are clustered by distribution voids.

The Power of Where

Cluster Analysis


The Power of Where

“Grab” an area and hone in.


The Power of Where

Drill down to specifics, looking for opportunities.


The Power of Where

Create a Proximity Query: know the impact of competition.


Compare historical sales data against historical causal data.

In this case, we look at weather to perform demand forecast planning with store-level precision.

The Power of WhereSeasonal Demand Forecasting

Warm (90-100) in Aug 2009Hot (100+) in Aug 2009


Correlate Incidents Of Influenza Doctor Visits

The Power of WhereCausal Demand Forecasting


The Power of Where

CDI by Area-Tabular Format332009 Copyright: Insight Information & Consulting Services, Inc.

The Power of Where

Visual CDI by Area


The Power of Where

CDI vs. Brand Sales By Area


CDI

BDI n

BDI x

Very High Index

Very Low Index


Location IntelligenceData Sources

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Road maps e.g. MS Virtual Earth

Country boundaries Stand ard “shape” files Built-in or Internet

Region boundaries States, counties, zips Sales territories

Business drivers Census or weather data

Business metrics Spreadsheets or DB

Map Multiple Layers from Multiple SourcesData Sources


Data Sources POS Data:

Wal-Mart RTL,Publix, Kroger

More…

Syndicated Data:

Nielsen, IRI, SPINS,

Panel

Broker Data:

Sales calls, POS Shipments, Voids, OOS,

Merchandising Compliance,

Demos & Racks

CorporateData:

Factory Shipments

US Census (proj 2009)Mux Credit Bureau

National Weather Service

Government & Credit Industry Data:


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Data Sources

What can you map to a store location?



Location IntelligenceHow It Works

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How It Works

Prepare store point data

Organize retailer store lists with addresses (include zip codes)TDLinxLead generation sitesAccount store lists

Geo-Code store points


How It Works:Geo-Codes

Geo-Codes: Map coordinates in latitude and longitude

• Free Source of Geo-Codes:

www. batchgeocode. com

• Paid Source of Geo-Codes:

www. geocode. com


How It Works:Geo Codes: www. batchgeocode. com


How It Works:Geo-Codes: www. batchgeocode. com


How It Works

Identify a common field, like store number,to link address and geo-code.


Longitude

Federal Information Processing Standards (FIPS) codes are issued by the National Institute of Standards and Technology (NIST) that identify each block area.

For Example :

XX XXX XXXXX 13 113 13113 STATE COUNTY BLOCK GROUP NC MACON TALLEY MILL CREEK

How It Works:How does demographic information get assigned to a postal code and address?


Block#/(%) Total 13113 U.S.

13113 = Caucasian – 3,000/ (46%) (74%)13113 = Afr. American – 1,500/ (23%) (12%)13113 = Hispanic – 2,000/ (31%) (10%)13113 = Total Pop – 6,500/ (100%)

Index Values:Caucisian 62 (46/74)African American 191 (23/12)Hispanic 310 (31/10)

How It Works: Raw Demographic Counts


How It Works


FIPS Code Is The Common Field

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How It WorksProximity Based Store Trade Areas

Store Trading Areas


How It Works

Customized Store Trading Areas


How It WorksACV Based Store Trading Areas

Block group dollar purchases

Store All Commodity Volume (ACV)

Find block groups around each store that account for 80% of store ACV

Collapse block groups into store point

Store demographics built from selected block groups


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Location Intelligence

See Your Data At The Speed Of Sight Capitalize on The Power of Where in the

Category Management Process› Store Performance› Store Cluster Management› Consumer Segmentation› Store Level Data

Gain valuable insights that give you the edge


Questions

See Your Data At The Speed Of Sight!

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Thank You…For more information on Location Intelligence for Category Management please contact Rick Pensa.

As a thank you for your participation, Insight, Information & Consulting Services, Inc. is offering a complimentary 1 hour consultation on Location Intelligence.

Rick Pensa 770-425-4243 [email protected]


mailto:[email protected]

location intelligence the power of where

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