2009 Innovator: Coca-Cola #4

Coca-Cola Enterprises Serves It Up At The Shelf

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Coca-Cola Enterprises Serves It Up At The Shelf

Coca-Cola Enterprises (CCE) is the world’s largest marketer, producer and distributor of Coca-Cola products, serving approximately 81 percent of the people in North America.

Driven by the power and reach of its North American direct store delivery system (DSD), CCE distributed two billion physical cases in 2008, which is the equivalent to 42 billion bottles and cans of Coca-Cola products.

In recent years, Atlanta-based CCE increased its portfolio of carbonated soft drink SKUs and faced an expanded variety in beverage consumption and shopper demographics. As a result of these changes, the company needed a smarter way to determine the right beverages to carry at the store level in order to optimize sales and consumer satisfaction.

CCE introduced the Shopper Segmented Merchandising initiative in 2007 as a response; yet found that they lacked the right technology to realize their goals. CCE’s merchandising analysts were using older software and it was taking them several days to create a planogram. Another hurdle for CCE is that the planograms could not be targeted to specific store requirements.

To realize the goals of its Shopper Segmented Merchandising initiative, CCE implemented space and category management solutions from JDA Software Group Inc., Scottsdale, AZ, that has enabled it to better manage the growing number of store-specific planograms it must create for each retail customer.

By integrating Point-of-Sale (POS) data with its planograms, CCE has quick access to current and consistent information needed for effective decision-making and analysis across its categories.

Business decisions are executed faster at the shelf and with greater insight, improving category optimization and performance.

Additionally, CCE created a business process to ensure controlled quality checks on store-level planograms, while at the same time increasing the productivity, efficiency and effectiveness of its planogram process. CCE can now streamline the execution of top-level category plans, achieve store-specific assortment management, maximize profit and extend customer loyalty.

CCE counts on JDA’s Category Management Solutions to help deliver its brands to the right place at the right moment. CCE has optimized its category performance using these JDA solutions: Category Adviser; Intactix Knowledge Base; Space Automation; and Space Planning.

The company’s new solutions and processes have enabled them to leverage shopper insights and drive store-level changes.

“We are creating store-specific planograms utilizing store-level sales data, as well as incorporating consumer insights by identifying the priority SKUs for the stores’ defined segment,” says Luisa Eichman, director of space planning services at CCE.

The results speak for themselves:

• 2 percent lift in unit sales;
• 2 percent positive impact on dollar sales;
• 1.9 percent favorable impact to sparkling category volume;
• 2.2 percent favorable impact to sparkling category sales;
• Enabled planners to create store-specific planograms in five to 20 minutes.