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netVantage Overview
Executive Summary
Contact: Shah Karim
201.820.2700
shah.karim@integratedsoftware.com
| Copyright ©2008 Integrated Software™, LLC. 25 E Spring Valley Ave Maywood, NJ 07607 phone 877.753.7300 fax 201.820.2702 |
© Integrated Software, 2003 . This document contains confidential and proprietary information. The document or its contents may not be shared, duplicated or distributed without prior written permission of Integrated Software LLC.
Table of Contents
I. OVERVIEW ............................................................................................................... 3
1. Key Benefits of netVantage ........................................................................................ 3
2. Current Problems ...................................................................................................... 4
3. The Desired Process ................................................................................................... 6
4. The Solution .............................................................................................................. 8
II. FUNCTIONALITY .................................................................................................... 9
1. Trade Fund and Deal Management ............................................................................... 9
2. Merchandise Sales Planning ..................................................................................... 10
3. Promotions and Coupon Management ........................................................................ 10
4. ROI Analytics and Scorecard ................................................................................... 11
5. Campaign Tracking and Management .......................................................................... 12
6. Digital Asset Management ........................................................................................ 12
7. Soft Proofing .......................................................................................................... 13
8. Target Marketing, Versioning ................................................................................... 13
9. Last Minute Pricing, Automated Page & Sign Production ............................................ 14
10. Private Label Packaging ...................................................................................... 14
III. SALES ANALYSIS ............................................................................................ 16
IV. QUALIFIERS ...................................................................................................... 17
V. ASSUMPTIONS REGARDING THE RETAILER ............................................. 19
1. Production Assets ................................................................................................... 19
2. Access to Corporate Data ....................................................................................... 19
3. Production Related Tools ........................................................................................ 19
4. Users ....................................................................................................................... 19
VI. TIMELINE ............................................................................................................ 20
VII. RESOURCES .................................................................................................... 21
VIII. PARTNERS ........................................................................................................ 22
Integrated Software's netVantage solution is a complete end-to-end solution for the selection, organization, execution and evaluation of promotions and ad events.
The netVantage solution focuses on three areas:
- Merchandising Effectiveness
- Workflow Management
- Promotions and Ad management
The netVantage solution features:
One time data entry
- Eliminate errors associated with multiple data entry.
- Save time through simplified product searches.
Workflow tracking
- Gain greater control over promotion process by knowing what are constraints and what information is missing.
- Pinpoint where savings are possible, through accurate benchmarking.
- Enhance communications through automated handoffs and e-mail notifications.
- Manage changes in content, price and image effectively and transparently.
Version management
- Unlock marketing potential of targeted versions.
- Increase capacity to produce versions in merchandising and advertising.
Links to corporate data
- Inflow of product data for easy search and entry.
- Process POS data for benchmarking, scorecarding and repurposing.
Compatibility with legacy systems
- Make every attempt to utilize what has already been invested in.
- Create as little intrusion as possible into the corporate IT.
Comprehensive benchmarking and scorecards
- Compare performance to plan, budget and past performance.
- Compare by buyer, vendor, category, department and placement.
Retailers commonly suffer from these problems in their current system promotion and ad management.
Overall problems managing the Promotion process:
- The current process for promotion management is not organized in a standard way, with standard schedules, production processes, or review cycles.
- It is difficult to monitor the workflow of promotional events, almost as difficult as they are to execute.
- Events are not as effective or as targeted as possible due to technical limitations.
Difficulty in accessing required data:
- Information is not kept systematically, and is not available in electronic format. This means that data may have to be rekeyed, possibly causing errors.
- Information required for promotions and ad events, such as product description, vendor data, and fact sheets, are difficult to obtain and access.
- Past performance information, including sales lift, square inch sales, and ROI measures are often unavailable or not useable.
- Historical sales, ad position, ad size, and sale price information cannot be used to plan effective events in future.
Problems with change management:
- Changes to promotional events are communicated incompletely or not at all from department to department.
- The person making changes to promotional events often does not know if a change has been accepted until the event is run.
- Departments that rely on the information about promotional events - such as inventory management, operations and finance - are often in the dark about the details of the event until very late in the process, sometimes learning about it after the event has run.
- The knowledge necessary to use the current processes is not easily transferable, which makes training of new staff more difficult.
Lack of 'One-time Data Entry":
- There are multiple points of data entry, leading to duplicate keying of data.
- Data is not easy to transfer throughout the process.
- Data hand off between and within departments is not secure and creates inaccuracies.
- A great deal of proofing is required to ensure that no errors remain on ads that customers receive.
- Errors in data show up at customer touch points, leading to customer dissatisfaction.
Difficulty in versioning:
- Creation of versions of promotional events is very labor intensive.
- The creation of versions of promotional events is cost prohibitive.
In part due to these problems, retailers seek to improve their promotion and
ad management process from the beginning in Merchandising, to its final delivery
into the hands of consumers. It is desirable that from the very start of the
process to achieve the following key objectives.
More informed decision making:
- Merchandisers make informed decisions on what items to promote, can make a case for why these items were selected, know when they had been promoted before, and can indicate how to most effectively promote these items.
- Merchandisers are able to access required data easily without having to manually key it in, such as cost, price, and margin data as well as product information.
- Merchandisers receive timely, accurate and actionable measurement of their performance compared to the past results, planned results and group averages.
Ability to target messages and make changes:
- Merchandisers have the flexibility to create versions of promotional events to better respond to individual regional and market differences, and take advantage of unique buying opportunities.
- Merchandisers' requests for changes (add items; delete items, change price, etc.) are understandable and carried out easily by the production system.
- Copy, images, prices, and all related product information are kept in an accessible database.
Improved coordination and handoffs:
- Production receives accurate and timely handoffs of promotional information.
- The workflow is organized such that handoffs occur in the order required to complete promotional and ad material.
- Progress on all pending and past jobs is easily determined.
- Work is accomplished through technology and not reliant on human capital for completion.
- Management is confident they know that work is on time and within scope and if it is not, they know precisely why.
- Errors are eliminated from promotional and product information at the customer touch point.
Once the current environment is understood and we agree on what the future should look like, then we can create a clearly understood plan to bridge the gap between current processes and future results. In this, we need to establish:
- Timeline
- Sequenced implementation of modular components
- Methodical implementation plan
- Capture 'low hanging fruit' for immediate project payback
The netVantage solution contains a single underlying data structure that acts as the conduit of data and information between the retailer's legacy systems, corporate data, complementary software and marketing regions. The solution emphasizes the following:
"One-time data entry":
The foundation of netVantage is to minimize data entry and maximize data
transferability. Users no longer burdened with having to retrieve information
and reenter it make it useable. Another benefit of the netVantage solution is
that data and information will be uniform across the enterprise. Accordingly,
all decisions about the promotional product are made utilizing the knowledge
and experience of the entire organization.
Flexibility of modular systems:
The netVantage solution is highly adaptable to the unique needs of retail.
Post engagement Integrated Software configures netVantage to reflect the workflow
and goals articulated by the client. The interfaces and usability of netVantage
make user training and adoption of the software an exact process. Training backed
up by 24/7 support geared to the promotions cycle will guarantee the software
will be running and the users will not find themselves on their own. Integrated
Software takes pride in the fact it stays close to its clients and through this
closeness is able to incorporate changes, modifications and upgrades necessary
to reflect changes in the production environment.
"Bridge the islands of data":
The retailer finds many islands of data being created within its production
environment. By establishing a collaborative solution, netVantage helps the
customer to bridge these islands of data, make better more informed decisions,
and establish corporate ROI goals to be achieved by all departments.
The needs of the retailer, in terms of Promotion and Ad Planning may be divided up into two segments. These are Merchandising and promotion support, and Advertising support.
The first, Merchandising and promotion support, provides functionality for:
• Trade fund and deal management
• Merchandise sales planning
• Promotions and coupon management
• ROI analytics and scorecards
The second, Advertising support, provides functionality for:
• Campaign tracking and management
• Digital asset management
• Last minute pricing, target marketing, versioning, and automated page and sign production
• Soft proofing
• Private label packaging
For each of these areas, we provide below a brief description, indicate whether ROI benefit is immediate or longer-term, and indicate some of the benefits that the retailer would obtain from it.
FUNCTIONALITY: MERCHANDISING AND PROMOTION SUPPORT
Descriptio n:
The retailer may desire the ability to monitor trade fund usage, from commitment of trade dollars by the manufacturer to their application to coupons, TPRs, and other uses. The Sarbanes-Oxley bill on trade fund accounting currently requires direct accounting of these funds. The retailer requires the ability to accept deals from the vendor in electronic format (kiosk, vendor web access, via email, or EDI).
ROI benefit:
Immediate upon implementation
High dollar impact
Benefits to Retailers:
Description :
The retailer may desire an organized method for planning promotional campaigns. In accomplishing this, it is necessary to have access to the following information: past performance, ad lift, trade fund dollars, coupon data and event information.
ROI benefit:
Immediate
High dollar impact
Benefits to Retailers:
Description :
The retailer requires a flexible method for promotion and coupon management. This is to allow it to present and promote offers to customers on a timely and as-needed basis. This must support all varieties of coupons and promotions types.
Promotions, be they in the form of coupons or TPRs, need a complete and consistent environment to be executed effective. This environment has to support two different roles: first, to present the offers to customers via marketing vehicles, such as ROP, circular, signs, in-store flyers, and direct mail; and second, to ensure that the correct offers are forwarded on a timely basis to the store-level POS for proper execution, so that the customer receives the correct offer at execution time.
ROI benefit:
Immediate
High
Benefits to Retailers:
Description :
The ROI Analytics and Scorecard process provides information that measures the effectiveness of past performance and helps to plan more effective future campaigns. The retailer should have an ROI Analytics and Scorecard process which evaluates performance by item, vendor, category / buyer, department / buying group, store, as well as by region.
ROI benefit:
After a complete year's worth of information has been gathered
High
Benefits to Retailers:
FUNCTIONALITY: ADVERTISING SUPPORT
Description :
The retailer may desire a comprehensive method for managing advertising campaigns, and for tracking events through production and release. Effective tracking and management ensures proper campaign coordination and execution, and leads to timely, accurate promotional material.
ROI benefit:
Immediate
Ongoing, Incremental
Benefits to Retailers:
Description :
Advertising requires a digital assets management system that stores and organizes item related product images and customer-friendly product descriptions.
ROI benefit:
Immediate
High
Ongoing, Incremental
Benefits to The retailer:
Description :
Advertising requires a method for proofing product images and circular pages that is secure, convenient, understandable and reliable.
ROI benefit:
Immediate
Ongoing
Benefits to The retailer:
• Smooth and efficient workflow
Description :
Advertising may desire the ability to version its ads and promotional campaigns. Effective versioning can help the retailer recapture tens of millions of dollars of margin that would otherwise be left on the table.
This should be complemented by the ability to perform target marketing. Effective versioning segments markets into profitable segments, which results in high margin circulars. Target Marketing can be comprised of any or all of: pricing strategies, product selection / tone strategies, or copy / language strategies. For example, The retailer may wish to price-version its circulars so as to address local competitors, or construct product-versioned targets circulars based on geographic, demographic, or economic factors.
ROI benefit:
Ongoing benefit
Improved workflow benefit
Benefits to Retailers:
Description:
Advertising may desire a method for driving database content to the page that eliminates errors caused by re-keying and shortens production cycles. This process for delivering pricing to Production should be as close to time-to-print as possible, and be easy to use. This should support page, sign, and coupon production.
ROI benefit:
Ongoing benefit
Improved workflow benefit
Benefits to Retailers:
Description:
Advertising may desire a method for managing the process for creating private label packaging for its products. Private label items have significantly higher margins than branded products, and are an increasing part of the retailer's business. Working with partners, we have developed a system which can help you produce private label packaging quickly and efficiently.
ROI benefit:
Ongoing benefit
High gross profits for private label goods
Improved workflow benefit
Benefits to Retailers:
Sales analysis and promotion effectiveness, may be especially valuable to the retailer. Our proprietary ad lift and ADROI measurement can help improve the effectiveness of promotions and ads. Better sales forecasting can lead to more efficient product ordering, improved in-stock positions, and reduction of out-of-stock.
In addition to the areas outlined above, netVantage can provide the retailer with functionality in pre-event and post-event analysis. We strongly recommend such additional functionality.
Objectives
For more effective promotion, one needs:
1) Ability to measure 'ad lift', by SKU and area.
2) Ability to do 'what if' for an entire event, by SKU and area, while modifying sale price, SKU, ad size, and page location.
3) Ability to make inventory adjustment, or optimal shipment, to store by SKU.
IS confirms that it can generate 'ad lift' (item 1) by SKU and store, by combining version information for product and prices with historical sales and sales lift data.
Using proprietary techniques and specific retail data, IS would be able to confirm the statistical factors which allow improved and more reliable forecasting.
This can generate inventory adjustment or store shipments which take into account sales lift information and historical sales patterns.
Examples of some Ad Analysis questions:
Impact of Ad Position on Sales
. What is the sales impact of an ad on Page 1 vs Center Spread vs Last Page?
. What is the sales impact of Ad Size on sales?
. What is the sales impact of Ad Location on sales?
. What is the sales impact of different numbers of items on total page sales?
Impact of Price Changes on Sales
. What is the sales impact of Price Change on sales?
. What is the sales impact of a Coupon on item sales?
. What is the sales impact of $ Off Rebate on item sales?
In moving forward with the retailer, there are some basic questions that we would wish to discuss. These include:
- How are promotions and coupons currently managed?
- How are promotion and coupon deals currently sent to POS? What systems are used to store such deals at present? What systems or processes are currently used to forward such information to POS?
- How many images to you use each month in ads? How many do you photograph each month?
- How many ad pages to you do monthly? How many total pages (including versions) are produced monthly?
- How many users of the Promotion system would there be?
- How many users of the Ad Planning system would there be?
- How many SKUs are carried by the retailer?
- Do you have a unique item identifying number for each and every product you sell, or do certain categories reuse SKU numbers?
- How do you currently manage physical images, photo scheduling, or product samples?
- Do you wish to manage your web assets using the same system as for your print assets?
- Are you storing most of your pictures online in digital format or in the form of negatives? Or are you reshooting images fresh for each event?
- Do you have an image management system? Please describe how it works.
- Do you have a copy archive? Please describe how it works.
- What sorts of problems exist in the coordination o product promotions between merchandising and advertising, especially in terms of meeting deadlines?
- What problems are there coordinating between marketing/advertising and photography studios, pre-press houses, and printers? Do you often have delays with deadlines because of missing information?
- What problems do you have problems coordinating between merchandising and marketing/advertising? Do you often have problems with deadlines because you are waiting for approvals or signoffs for promotions and campaigns?
- Is there a data warehouse of transaction (T-log) data?
- How is the data warehouse currently used by the marketing department for analyzing the effectiveness of promotions?
- How is the data warehouse currently used to help make merchandising decisions?
- Does your current Data Warehouse support the following fields:
SKU Dollars
SKU Quantity
SKU Cost
SKU Profit
At what level? (e.g. corporate, warehouse or distribution center, or store)
- How do you currently measure the performance of your buyers?
- Do you currently measure the effectiveness of your advertising using ROI, square inch sales or other forms of financial performance benchmarks?
Integrated Software makes the following assumptions regarding the retailer's environment:
All digital assets will be linked into the netVantage system from the existing system or process that currently manages such product related data.
Appropriate naming conventions will need to be developed to allow for the automated management and retrieval of such digital information.
Related product copy, particularly customer friendly copy, will need to be entered into the netVantage system from the existing system that manages this information.
Product prices and other related information as may be required for implementing these systems, including item cost, regular price, vendor name, vendor item number, and UPC, are stored in an existing database system and can be accessed online using ODBC or SQL queries.
Existing corporate data is stored in a system is owned and managed by the retailer's own staff who would be capable of authorizing and implementing data sharing practices.
Production personnel use and are proficient in QuarkXPress 4.0+ to build advertising vehicles.
Production personnel use and are proficient in Mac OS 9.x+, and use tools running on this operating system to build advertising vehicles.
Based on typical department sizes, there may be up to a hundred Merchandising users. A user may require access to functions in different areas of the Merchandising and promotion support areas described above.
Based on a typical department sizes, there may be up to a hundred Advertising users. A user may require access to functions in different areas of the Advertising support areas described above
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GAP work on IS apps (fit retailer needs) Proof of concept Customization
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Integration Training Installation: Prototype->Beta->Parallel->Live |
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Plan what the changes are going to be |
Make the changes to the software |
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Project Team |
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Team Member |
Member Function |
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Integrated Software |
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Engagement Manager |
With Retailer Sponsor, manages relationship; including project scope, timeline and invoicing. |
Project Manager |
Manages Timeline, teams and specifications to keep project moving forward. |
Development |
Responds to program specifications to customize applications to the retailer's requirements. |
Training |
Educates retailer personnel on each application, its use and administration where applicable. |
Support |
Assists retailer with technical questions that may arise regarding project applications. |
Integration |
Assists Integrated and retailer teams in specifying and building seamless data hand-off between legacy and Integrated Software systems. |
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Retailer |
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Executive Sponsor |
With Integrated Engagement Manager, manages relationship; project scope, timeline and final sign-off. |
Point Person: IT |
Acts as sponsor in IT, facilitating collaboration between Integrated personnel and retailer IT personnel. Acts as sign-off for specifications and fulfillment of requirements for IT items. |
Point Person: Advertising |
Acts as sponsor in Advertising, facilitating collaboration between Integrated and Advertising. Acts as sign-off for specifications and fulfillment of requirements for Advertising items. |
Point Person: Merchandising |
Acts as sponsor in Merchandising, facilitating collaboration between Integrated and Merchandising. Acts as sign-off for specifications and fulfillment of requirements for Merchandising items. |
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120
Days - 4 Months 
+
120 Days - 4 Months 