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Magazine Distribution Review January 22, 2008

Magazine Distribution Review January 22, 2008. Overview. Anderson News Optimal Assortment Reduction of Item Numbers Align Chain and Anderson Information Core Title List Suggestion Merchandising Consistency Maintenance and Management Targeted Replenishment Driving Sales. Sales by Title

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Magazine Distribution Review January 22, 2008

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  1. Magazine Distribution ReviewJanuary 22, 2008

  2. Overview • Anderson News Optimal Assortment • Reduction of Item Numbers • Align Chain and Anderson Information • Core Title List Suggestion • Merchandising Consistency • Maintenance and Management • Targeted Replenishment • Driving Sales

  3. Sales by Title Titles in Top 70% of the Magazine Category 178 titles make up 70% of sales (Top 380 Mainline Titles Make up 70% of ML Sales) Misses regional products like: See Handout Includes only 70% of sales Sales by Title by Store Titles in Top 70% of any single Chain store 1,482 titles make up 70% of sales by store Includes regional products that do well in particular stores Includes 98.3% of sales Reduction of Item NumbersCompeting Methodologies

  4. Threshold Analysis by Store

  5. Sales by Title By Store& Top Titles Cut

  6. Align Anderson & Food Chain Information • Chain Segmentation Groups • Mainstream, Upscale and Value • Chain Sub-Commodities used to classify titles • Chain POS sales are used to • Reduce Items • Build Rankings • Replenish

  7. Core List Development • Suggested Core Title List – 100 titles • Relevancy • Prominent Display • Always in Stock • Dual Display where necessary • 41% of Chain Retail Sales • Sub-Core Titles • Next best titles by Chain Segmentation Group • More Relevant to Chain Shopper • Prominent Display; even preferential to Core in some cases • Criteria (subject to change based on Chain’s goals) • National, rather than regional titles • Regular frequency titles (freq 5+) • Current Store Penetration >60% • Checkout included except Digest and Tabloids

  8. Merchandising Consistency • Sub-Commodities • Adjacency • Editorial content • New & Notable • Consistent Display • Vertical vs. Horizontal Display • Core – Front Lip where necessary • Sub-Core – Front Lip where necessary • Multiple Facings • Tools to aid in consistency • Planogram Handout

  9. Maintenance & Management • Space Planning Software • Develops Planogram Pictures • Increased Analysis and Reporting capabilities • Title Changes are easier than using Excel • Management of Item Count • Exchange of items: addition of new entrant means removal of an underperforming title • Developing Tools to identify weak performers

  10. Targeted Replenishment • Initial Delivery • Fill to Capacity with First Delivery • Mainline Multiple Facings • Planned Replenishment • Promotion • Splits • POS Replenishment • Delivery Management • Sales Velocity • End of Period Inventory

  11. Driving Sales • Core Titles – 100% Penetration • Estimated sales gain of $5.9 Million by filling distribution gaps on Core Titles • Focus on Relevant Products • Consistent Merchandising • Replenishment of Titles Drives Sales

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