Chapter 07
In store execution
45 terms
Practice by level
Terms
01Back room stockKho sau cửa hàng
Definition
Stock an outlet holds outside the selling area, usually in a small room behind the shop or under the shelf.
Examples
- A supermarket holds 12 cases in the back room, about three days of sales of the lead item.
- A grocery keeps 4 cases under the shelf, close to 7 days of sales.
Easy to get wrong
Back room stock still counts as available in the system. That is why 34 percent of shelf out of stock events happen while the outlet still holds stock.
02Shelf replenishmentLên hàng lên kệ
Definition
Moving stock from the back room onto the selling shelf to fill the space already sold.
Examples
- A supermarket refills the lead item 3 times a day because the shelf holds only 32 bottles against a rate of sale of 97 bottles a day.
- Each refill takes about 4 minutes across 9 facings.
Easy to get wrong
The timing of a refill matters as much as the count. If all 3 refills happen in the morning, the shelf still runs empty between 17 and 20 hours, the window that carries 38 percent of daily volume.
03Shelf ready packagingThùng sẵn sàng lên kệ
Definition
A case designed to be opened and placed on the shelf as one tray, with no need to handle each bottle.
Examples
- Opening one shelf ready case takes 8 seconds against 45 seconds to cut a plain case and stack each bottle.
- At 9 cases a day, the supermarket saves 5.5 minutes daily.
Easy to get wrong
This case costs 1.8 thousand dong more per carton. That only pays back in outlets that refill several times a day, not in a grocery that refills twice a week.
04Shelf stock rotationXoay hàng trên kệ
Definition
Moving the earliest dated units to the front of the shelf and placing fresh stock behind them.
Examples
- A check of 1,200 outlets found expired bottles on shelf in 74 of them, a rate of 6 percent.
- One facing holds 8 bottles and correct rotation takes about 15 seconds per facing.
Easy to get wrong
Whoever refills tends to put new stock in front because it is faster. With a 9 month shelf life the error hides in an outlet selling 9 bottles a day, but it spoils stock in the 10,120 slow C grade outlets.
05FrontingĐẩy hàng ra mép kệ
Definition
Pulling the remaining bottles forward to the shelf edge so each facing looks full from the aisle.
Examples
- Fronting takes 12 seconds per facing, so 9 facings take 108 seconds.
- After the routine was applied across 540 modern trade stores, visible shelf gaps fell from 22 percent to 9 percent.
Easy to get wrong
Fronting makes the shelf look full without adding a single bottle. A facing with 2 bottles pulled forward still holds 2 bottles, and the outlet easily forgets to reorder.
06Store layoutSơ đồ bố trí cửa hàng
Definition
How aisles, fixtures and the checkout area are arranged inside a store.
Examples
- An 800 square metre supermarket has 14 aisles and a main walkway 2.4 metres wide.
- The soft drink category sits in aisle 9, 18 metres from the checkout.
Easy to get wrong
The layout is the retailer decision. What the supplier can do is argue for a position with numbers, such as 84 million dong per shelf metre a month against 70 million for the category.
07Category bayQuầy kệ ngành hàng
Definition
The run of shelving given to one category, measured by length and number of tiers.
Examples
- The soft drink bay in a supermarket is 4 metres long with 5 tiers, giving 60 facings.
- The whole bay sells 280 million dong a month at retail prices, or 70 million dong per metre.
Easy to get wrong
A longer bay does not create demand. If the category still draws 280 million dong a month at that store, stretching the bay from 4 to 5 metres only cuts sales per metre to 56 million dong.
08PlanogramSơ đồ kệ
Definition
A drawing that sets which item sits on which tier, how many facings it takes and in what order.
Examples
- The planogram agreed with the 6 chains gives the 500 ml bottle 4 facings on the third tier.
- The drawing is updated twice a year and sent to 540 modern trade stores.
Easy to get wrong
A planogram is worth only as much as the audit behind it. In the last round just 389 of 540 stores complied, a rate of 72 percent.
09FacingMặt trưng bày
Definition
The number of bottles of one item visible from the aisle on a shelf tier, counted across the front.
Examples
- The company holds 9 facings out of the 60 facings in the soft drink bay.
- Each facing holds 8 bottles in depth, so the 4 facings of the lead item hold 32 bottles.
Easy to get wrong
Facings are counted across the front and depth is a separate number. Four facings 8 deep and eight facings 4 deep both hold 32 bottles, but the eight facing version takes more of the shopper field of view.
10Eye level positionVị trí tầm mắt
Definition
The shelf tier at the eye line of a standing adult, usually the third tier of a 5 tier bay.
Examples
- The eye level tier sits 1.4 to 1.6 metres above the floor.
- Moving the lead item from the bottom tier to eye level in 60 outlets lifted rate of sale from 18 to 24 cases a month.
Easy to get wrong
Adult eye level and child eye level are two different heights. For an item aimed at children, the tier about 1 metre from the floor is the right one.
11Shelf metreMét kệ
Definition
A unit of display space measured along the shelf, used to compare items and categories.
Examples
- The company holds 0.6 metre inside a 4 metre bay.
- Sales of 50.4 million dong a month on 0.6 metre works out at 84 million dong per shelf metre.
Easy to get wrong
A shelf metre only compares fairly when the tier count comes with it. One metre of 5 tier shelving carries 2.5 times the display area of one metre of a 2 tier chiller.
12Share of shelfThị phần không gian kệ
Definition
The share of category display space at an outlet that belongs to the company.
Examples
- 9 facings out of 60 give a share of shelf of 15 percent.
- Share of category sales at that store is 18 percent, 3 percentage points above share of shelf.
Easy to get wrong
Share of shelf below share of sales is the case for asking for more facings. It also means the current shelf sells faster than it holds, so replenishment has to be fixed at the same time.
13Off shelf displayTrưng bày ngoài kệ
Definition
A display placed outside the main category bay, sited where footfall is high.
Examples
- The company runs 120 off shelf displays in modern trade and 3,000 in general trade.
- A store with an off shelf display sells 342 cases a month against 221 cases with the main shelf alone.
Easy to get wrong
An off shelf display does not replace the main shelf. Shoppers working from a list still look in the category aisle, so pulling stock off the main shelf to build the display loses that group.
14Gondola endQuầy đầu kệ
Definition
The display position at either end of an aisle run, where store footfall is highest.
Examples
- One gondola end holds 60 cases, or 1,440 bottles.
- The chain charges 4.5 million dong a month for one gondola end.
Easy to get wrong
The two ends of the same aisle are not worth the same. The end facing the main walkway draws about 2.5 times the traffic of the end facing inward.
15Floor stackKhối trưng bày sàn
Definition
A block of cases stacked on the floor or on a pallet inside the selling area, with no shelving.
Examples
- A 40 case floor stack takes 1.2 square metres of floor.
- 40 cases at retail price is 9.1 million dong of stock sitting on one display.
Easy to get wrong
A floor stack has to stay full to keep its shape. Once it drops to 12 cases the block caves in and the store usually clears it, so the rule should trigger a refill at 20 cases.
16Outlet chillerTủ mát tại điểm bán
Definition
A cooler the company lends to an outlet for chilled sales, on the condition that it holds company products only.
Examples
- 2,400 chillers are placed in outlets at 9.5 million dong each, an investment of 22.8 billion dong.
- An outlet with a chiller sells 31 cases a month against 18 cases without one.
Easy to get wrong
A chiller only pays back when the condition is kept. The last audit found competitor stock inside 18 percent of them, so 432 chillers are drawing power to display someone else.
17Checkout displayTrưng bày tại quầy tính tiền
Definition
A rack or basket placed at the till, used for low price items bought on a quick decision.
Examples
- One checkout basket holds 48 bottles and needs refilling twice a day.
- The chain charges 2.2 million dong a month for one checkout position.
Easy to get wrong
The space is tiny so the pack format has to fit it. A single bottle at 9.5 thousand dong works better than a 6 pack at 51 thousand, because a shopper already in the queue rarely adds a large item.
18Display feePhí thuê vị trí trưng bày
Definition
Money the company pays a retailer to hold an off shelf display position for a set period.
Examples
- One gondola end costs 4.5 million dong a month, so 120 positions cost 540 million dong a month.
- Volume rises by 121 cases per store a month, and at a gross margin of 38 thousand dong a case that is 4.6 million dong.
Easy to get wrong
The fee and the extra margin belong side by side. Extra margin of 4.6 million dong against a fee of 4.5 million leaves 100 thousand dong, so the position is worth keeping only if it serves another purpose.
19Point of sale materialVật phẩm quảng cáo tại điểm bán
Definition
Printed and display items placed inside a store to mark where the product sits and to carry programme messages.
Examples
- The point of sale budget is 4.2 billion dong a year, or 0.44 percent of turnover.
- A check after 4 weeks found 61 percent of installed items still in place.
Easy to get wrong
Material handed out and material actually put up are two different numbers. Of 22,000 posters issued to 18,400 outlets, only 14,720 outlets displayed one, a rate of 80 percent.
20Store posterÁp phích cửa hàng
Definition
A large printed sheet fixed to a wall, glass front or counter face to carry the brand and the running programme.
Examples
- 22,000 A2 posters at a print cost of 4.5 thousand dong each come to 99 million dong.
- 14,720 outlets had a poster up at audit, a rate of 80 percent of 18,400 outlets.
Easy to get wrong
An expired poster does more harm than no poster. A sheet promoting an offer that ended 6 weeks ago makes shoppers ask for the old price and costs the outlet its trust in the next programme.
21Shelf wobblerThẻ lắc trên kệ
Definition
A small printed card on a plastic arm clipped to the shelf edge, sticking into the aisle to draw the eye to one item.
Examples
- 6,000 wobblers at 3.2 thousand dong each come to 19.2 million dong.
- Real life is about 3 weeks because trolleys and passing shoppers snap the plastic arm.
Easy to get wrong
Many chains ban anything that projects into the aisle. Only 180 of the 540 modern trade stores allow them, so the rest need a flat shelf strip instead.
22Shelf stripDải viền kệ
Definition
A long printed strip fixed along the tier edge under the product, used to mark out the brand block.
Examples
- 5,000 strips of 1.2 metres at 12 thousand dong each come to 60 million dong.
- The company holds 0.6 metre of shelf, so each 1.2 metre strip cut in half serves 2 outlets.
Easy to get wrong
A shelf strip has to line up with where the product actually sits. When the store changes the planogram and the strip stays put, the strip is pointing at a competitor.
23Store fascia signBảng hiệu cửa hàng
Definition
A shop name board funded by the company, carrying the outlet name with brand artwork, fixed above the shop front.
Examples
- 1,500 signs at 1.8 million dong each come to 2.7 billion dong.
- A 24 month life puts the cost at about 75 thousand dong per outlet a month.
Easy to get wrong
A fascia sign is a long term investment tied to one outlet. Fit it only in A grade outlets buying over 47 cases a month, because a shop closing after 8 months writes off 1.2 million dong of remaining value.
24On shelf availabilityHiện diện trên kệ
Definition
The share of checks that find an item present on the shelf and in sellable condition.
Examples
- Across 1,200 outlets checked, the lead item was present in 1,092 of them, a rate of 91 percent.
- The target is 96 percent, so the 5 percentage point gap is worth 60 outlets.
Easy to get wrong
On shelf availability and outlet stock are different things. A shop can hold 4 cases in the back room with an empty shelf, and shoppers only see the shelf.
25Out of stock on shelfHết hàng trên kệ
Definition
The state where an item has no units left at its display position.
Examples
- Of 1,200 checks, 108 found the lead item out of stock on shelf, a rate of 9 percent.
- Each event runs 1.6 days on average, worth about 14 bottles per outlet.
Easy to get wrong
An out of stock does not lose all of that volume. Some shoppers switch to another pack of the same brand and the rest buy another brand or skip the purchase, so the real loss sits below 14 bottles.
26Phantom stockHết hàng ảo
Definition
A state where the system shows stock at the outlet while the shelf is empty or the stock cannot be found.
Examples
- Of 108 shelf out of stock events, 37 happened with stock still in the back room, a rate of 34 percent.
- Across 540 modern trade stores, 62 showed a gap of more than 5 cases between system stock and a manual count.
Easy to get wrong
Ordering more does not fix phantom stock. Reordering while 4 cases sit in the back room only inflates outlet stock, since the cause is replenishment and stock data.
27Shelf gapKhoảng trống trên kệ
Definition
A facing with no stock in it, visible from the aisle.
Examples
- Shelf photos across 540 modern trade stores show 5 empty facings out of 60 on average, a rate of 8 percent.
- A gap of 2 facings out of the 4 held by the lead item cuts shelf capacity from 32 bottles to 16.
Easy to get wrong
A gap usually gets filled by whatever sits next to it. The photo then looks full while the lead item has lost 2 facings that are hard to win back.
28Must stock listDanh mục bắt buộc có
Definition
The set of items each outlet grade has to carry, set by store size and store type.
Examples
- A grade outlets must carry all 5 items, B grade 3 items and C grade 2 items.
- Across 2,760 A grade outlets the average is 4.1 items out of 5, a rate of 82 percent.
Easy to get wrong
A must stock list has to fit the space in the shop. Forcing 5 items into an outlet with 4 facings leaves each item under one facing and every one of them runs out fast.
29Shelf holding capacitySức chứa kệ
Definition
How many units a full shelf holds, from facings times depth, usually restated as days of sale.
Examples
- 4 facings times 8 bottles gives 32 bottles, which against 97 bottles a day is 0.33 days of sale.
- In a grocery, 4 facings times 5 bottles gives 20 bottles, or over 2 days at 9 bottles a day.
Easy to get wrong
Capacity below one day of sale forces repeated refills and still leaves the shelf empty by evening. The fix is more facings or a second display position, since asking staff to work harder cannot lift a 0.33 day limit.
30Shelf price tagThẻ giá trên kệ
Definition
The price label on the shelf edge under an item, showing the selling price and usually the unit price too.
Examples
- The tag reads 9,500 dong a bottle and 19,000 dong a litre.
- Across 1,200 outlets checked, 156 had a wrong or missing tag, a rate of 13 percent.
Easy to get wrong
The tag has to match the bottle standing right above it. After a store moves the stock and leaves the tag, the shopper reads 9,500 dong while the till reads 12,000 and the item is left at the counter.
31Actual shelf priceGiá thực tế tại kệ
Definition
The price a shopper really pays at the outlet, which can differ from the recommended retail price.
Examples
- The recommended retail price is 9.5 thousand dong a bottle while actual shelf prices run from 9 to 10.5 thousand.
- Across 1,200 outlets checked, 1,020 charged exactly 9.5 thousand dong, a rate of 85 percent.
Easy to get wrong
A price above the recommendation is not always the outlet fault. In the 4,200 remote outlets buying through wholesalers the cost in is 4 thousand dong a case higher, so 10 thousand dong a bottle comes out of the channel structure.
32Shelf price complianceTuân thủ giá tại kệ
Definition
The share of outlets charging the recommended retail price at the moment of the check.
Examples
- 1,020 of 1,200 outlets charged the right price, a compliance rate of 85 percent.
- Of the 180 outlets off price, 96 charged above and 84 charged below.
Easy to get wrong
Selling under the recommendation is also a breach. One shop at 9 thousand dong a bottle drags the shops around it down and thins the 1.5 thousand dong margin that keeps them loyal to the brand.
33Price pointĐiểm giá
Definition
A round price level shoppers know and use as a reference, such as 5, 10 or 20 thousand dong.
Examples
- A retail price of 9.5 thousand dong sits just under the 10 thousand mark.
- The 1.5 litre bottle at 24 thousand dong sits between the 20 and 25 thousand marks.
Easy to get wrong
Crossing a price point costs more than the size of the rise. Going from 9.5 to 10.5 thousand dong is only 10.5 percent, yet volume falls further than it does on a move from 8.5 to 9.5 thousand.
34Unit priceGiá trên đơn vị đo
Definition
The price restated per standard unit such as a litre or a kilogram, so pack sizes can be compared.
Examples
- A 500 ml bottle at 9.5 thousand dong is 19 thousand dong a litre.
- A 1.5 litre bottle at 24 thousand dong is 16 thousand dong a litre, 15.8 percent cheaper.
Easy to get wrong
A bigger pack is not always cheaper per unit. A 6 pack of 500 ml bottles at 51 thousand dong is 17 thousand dong a litre, still above the 1.5 litre bottle.
35In store promotionKhuyến mãi tại điểm bán
Definition
A short activity run inside the store to lift volume over a defined period.
Examples
- The in store promotion budget is 38 billion dong a year, or 4 percent of turnover.
- A 2 week programme across 3,000 outlets lifted volume from 18 to 27 cases per outlet a month.
Easy to get wrong
The lift during a promotion and the lift over a year are different numbers. Volume usually falls back to 14 cases in the following 2 weeks because the outlet and the shopper both stocked up.
36Temporary price reductionGiảm giá tạm thời
Definition
Cutting the selling price for a short period and then returning to the old level.
Examples
- The retail price drops from 9.5 to 8.5 thousand dong a bottle for 2 weeks, a cut of 10.5 percent.
- The company funds 1 thousand dong a bottle, so 3,000 outlets at 324 bottles each costs 972 million dong.
Easy to get wrong
Most of that funding lands on volume the outlet would have sold anyway. If each outlet normally sells 216 bottles in 2 weeks, only 108 bottles are incremental while the other 216 are funded for nothing.
37Multipack offerLốc nhiều sản phẩm
Definition
Several units sold together at a price below the sum of the single unit prices.
Examples
- A 6 pack at 51 thousand dong against 57 thousand for 6 singles is a cut of 10.5 percent.
- Multipacks carry 22 percent of modern trade volume and 4 percent of general trade volume.
Easy to get wrong
A multipack needs its own item code and its own shelf space. In a grocery with 4 facings, adding it costs the single bottle one facing and cuts capacity from 20 to 15 bottles.
38Free gift with purchaseHàng tặng kèm
Definition
An item added free when the shopper buys the required quantity.
Examples
- A 6 pack comes with one glass costing 4.5 thousand dong, or 750 dong a bottle.
- The programme runs in 3,000 outlets with 45,000 glasses planned, a cost of 202.5 million dong.
Easy to get wrong
Gifts kept behind the counter are a common leak. A check of 300 outlets found 54 that had received glasses and had not handed them out, a rate of 18 percent.
39Display contestThi đua trưng bày
Definition
A programme that pays outlets for holding an agreed display standard over a set period.
Examples
- 1,200 A and B grade outlets signed up at 250 thousand dong per outlet a month, a total of 300 million dong.
- A participating outlet sells 24 cases a month against 18, and 6 extra cases at 50 thousand dong of gross margin is 300 thousand dong.
Easy to get wrong
The payment has to rest on a dated photo. Relying on the sales rep word means the 300 million dong a month also pays outlets that built the display for one morning.
40Store checkKiểm tra điểm bán
Definition
A store visit that records stock, price, display and materials against a fixed checklist.
Examples
- 6 independent auditors visit 10 outlets a day over 20 days, covering 1,200 outlets a month.
- Each check records 14 measures and takes about 9 minutes.
Easy to get wrong
A check done by the sales rep and one done by an independent auditor give two different pictures. Reps report on shelf availability at 96 percent while the independent team measures 91 percent.
41Shelf photo auditChụp ảnh kệ hàng
Definition
Recording shelf condition through photographs, then counting facings and items by hand or by software.
Examples
- The system takes in 24,000 shelf photos a month and the software reads each one in 40 seconds.
- Facing counts come back 92 percent accurate and the rest need a human check.
Easy to get wrong
A photo captures only what is visible. It cannot say whether the outlet has 4 cases in the back room or nothing at all, so someone still has to ask and count.
42Planogram complianceTuân thủ sơ đồ kệ
Definition
The share of stores that display to the agreed planogram, judged on position, facing count and sequence.
Examples
- 389 of 540 modern trade stores display to plan, a rate of 72 percent.
- Of the 151 stores off plan, 96 are short of facings and 55 sit on the wrong tier.
Easy to get wrong
Compliance has to be scored measure by measure. A store with all 9 facings sitting on the bottom tier still scores a pass if the sheet only counts facings.
43Perfect storeCửa hàng chuẩn
Definition
A set of standards describing an outlet that meets the bar on display, shelf stock, price and materials, scored every month.
Examples
- The standard has 6 measures scored pass or fail, and an outlet has to pass all 6 to count.
- 1,876 of 2,760 A grade outlets meet the standard, a rate of 68 percent.
Easy to get wrong
The standard has to differ by outlet grade. Applying the 6 A grade measures to a C grade shop buying 6 cases a month produces a very low pass rate that says nothing useful.
44Sales per shelf metreDoanh số trên mét kệ
Definition
The sales one item or brand generates per metre of shelf in a month.
Examples
- 50.4 million dong a month on 0.6 metre of shelf is 84 million dong per metre.
- The category runs at 70 million dong per metre, so the company sits 20 percent above it.
Easy to get wrong
This is the number to take into a retailer meeting, because the retailer earns on its own space. It has to be built from retail prices, since the company selling price says nothing the retailer cares about.
45Rate of saleTốc độ bán tại cửa hàng
Definition
How much one outlet sells in a period, usually stated as cases a month or bottles a day.
Examples
- A supermarket sells 221 cases a month, or about 177 bottles a day.
- A grocery sells 18 cases a month, or about 14 bottles a day.
Easy to get wrong
Rate of sale only compares within the same store type. A supermarket sells 12 times a grocery, so ranking both in one table drains the number of meaning.