Martec International. Understanding Retail E-Learning Course

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1 Martec International RST66 Martec International is a leading consulting and training firm specializing in the retail industry. Its client base includes retailers from around the globe, technology suppliers to retail and manufacturers of consumer packaged goods and consumer durables. Martec's professional staff are all former retailers with at least 10 years retail experience and have held at least one management position in a significant retailer. Martec's training portfolio includes instructor-led classes, e-learning programs and blended learning solutions. Understanding Retail E-Learning Course Target Audience This program is designed for people who sell or market to retailers. It is ideal for both merchandise suppliers who sell directly to retailers, and for those who market to retailers to get their content specified in product lines. It is also suitable for those who are new in a retail business such as management trainees, IT and finance teams. Objectives of the Program This course provides a detailed understanding of the retail industry and how it works -enabling more effective sales calls and more productive partnerships with retailers. By the end of the program, students will be able to do the following: Retail Background and Trends Define retailing Explain the differences and characteristics of each of the main retail formats Understand the key retail trends Overview of Key Retail Processes Understand the key processes in a retail business Identify the departments that they impact Understand how the processes fit together Retail Organization Describe the organization structure in a typical category management retailer Describe the organization structure in a typical specialty retailer or department store List the business pains commonly faced by various executives Examine their most likely bonus structures to assess how best to influence them Determine who influences or recommends what Develop a strategy for maximizing your success with the Capex committee Retail Key Performance Indicators Identify the main retail KPIs by function Be able to interpret and improve them Understand how they are used in the retail business Be able to prepare for visiting a retailer account by checking KPIs Retail Financials Explain the main retail financial statements Understand how retailers achieve their profits Highlight the major variables retailers can leverage to improve their profits Understand the difference between the retail and cost methods of accounting Determine the main elements that are impacted in a return on investment calculation

2 Retail IT Architecture Explain the architecture of retail applications Be able to use Quadrant Analysis to identify development or application systems opportunities in retailers To be able to identify potential areas of opportunity in a retail business Buying, Category and Merchandise Management Highlight the differences between merchandise and category management retailers Explain the key retail buying, merchandising and category management processes Discuss how retailers buying, merchandising and category management teams are organized Identify the KPIs used to measure the performance of buying, merchandising and category management teams Understand how retailers categorize different types of merchandise Explain merchandise hierarchies Understand buying and merchandising timelines and seasons Describe how merchandise and assortment planning is carried out Explain the OTB process Describe how retailers forecast sales and replenish products E-Commerce Define e-commerce and omni-channel retailing and why it is so important Explain e-commerce trends Explain the evolving nature of e-commerce organization structures Understand how e-commerce teams success is measured Discuss how e-commerce is changing the role of the store Understand online inventory management processes and how retailers make decisions about their online assortment Explain how insights from e-commerce are used to improve performance in other channels and vice versa Understand how distribution and warehousing works for e-commerce Retail Marketing Explain how retail marketing departments are normally structured Show how retail marketing departments are measured on their performance Demonstrate how key marketing processes including Customer Relationship Marketing work Store Operations Explain the importance of Store Operations division Explain the structure of retailers Store Operations divisions Understand how Store Operation s performance is measured Explain the day-to-day tactical responsibilities of field based Store Operations teams Describe the key processes in Store Operations that are managed by headquarters space management, store administration and physical maintenance, loss prevention and human resources Course Overview Understanding Retailing is a self-paced web-based training program. All the student needs to run the program is access to a PC and a web browser. The program is hosted on Martec s Learning Management System and offered at a one-time fee of $630 ( 382 and 553) per student. Upon payment, an account number and password are issued, which are valid for 1 year. The program takes about 10 hours to study depending on the student and their diligence. Within the purchased period, students can re-visit the material as often as they wish. Other options apply for longer access periods and details can be provided on request. Each module can be purchased separately at a cost of $100 per student for1 year s access. Individual modules take about 1 hour each to study. Study Time 8-12 hours

3 Program Contents Retail Background and Trends What is retailing? Retail formats Department stores Mass merchants Large format specialty Small format specialty Food and drug Home shopping Key retail trends Omni-channel retailing International expansion Customer engagement Customer Relationship Management Brands and private label Supply chain Overview of Key Retail Processes Overview of key retail processes Merchandise and category management Planning flow Merchandise and category management differences Retail merchandising Category definition Category management Buying Buying activities Open to Buy Marketing Marketing activities Customer Relationship Management Supply chain management What is supply chain management? The merchandise flow Vendor collaboration Store operations Key activities E-commerce E-commerce activities Retail Organization Retail organization structure CEO s pains CXO pains CXO bonuses Merchandise management retailers Buying and merchandising structure Category management retailers Category management structure Both merchandise management and category management retailers Store operations Finance Marketing E-commerce Warehouse and distribution IT structure Capex decision making structure Retail Key Performance Indicators Introduction to retail KPIs Sales KPIs Sales vs last year Sales vs plan Comp store / same store sales / like for like Sales per square foot / metre Sales per linear foot / metre Sell through Inventory KPIs Inventory turn Availability / in stock % Fresh stock percent Weeks of supply Shrinkage Margin KPIs Gross margin Gross margin % Markdowns Markup GMROI Marketing KPIs Market share Share of the purse / wallet KPIs for omni-channel retailing Gross margin return on channel - GMROCH and net margin return on channel - NMROCH Gross margin return on customer segment - GMROCu and net margin return on customer segment - NMROCu Average US retail KPIs by segment Average European retail KPIs by segment Using KPIs for account planning KPI analysis of accounts

4 Retail Financials Retail profit model Retail profit and loss account Average retail profit before tax Retail profit model Operating expenses Balance sheet Balance sheet essentials Current assets Fixed assets Liabilities Equity and retained profits Return on Net Assets Asset utilization Industry profitability drivers Building retail sales and profitability Maximizing cash flow and profits Balancing gross margins, payment terms and inventory turns Retail and cost method of accounting Definitions Advantages and disadvantages of retail method Advantages and disadvantages of cost method Retail IT Architecture High level application architecture Head quarters Store systems Sales audit and polling CRM / marketing database Loss prevention Logistics Finance Human resources Store portal Product Lifecycle Management Call center Merchandise optimization Systems implications Application quadrant analysis Strategic Key operational Potential Maintenance Application quadrant analysis Grocery Mixed goods Fashion / specialty Department stores Buying, Category and Merchandise Management Merchandise and category management Merchandise and category management differences Retail merchandising Category definition Category management Merchandise and category management organization structures Merchandise management organization structure Category management organization structure Key Performance Indicators Key buying, merchandise and category management processes part 1 Merchandise types Merchandise hierarchy Retail seasons Season timelines Planning flow Merchandise planning Assortment / range planning Private label Linear supply chain The wedge store size vs assortment composition Key buying, merchandise and category management processes part 2 Merchandise arrangement Open to Buy How much stock is needed? Replenishment basic model Demand forecasting Forecasting methods Sales and stock management Omni-channel buying, merchandising and category management Store Operations Store operations division Organization structure KPIs used for store operations Store operations strategy and tactics Space management Store administration and physical plant maintenance Loss prevention Store operations and human resources

5 E-Commerce What is omni-channel retailing Omni-channel objectives E-commerce trends and issues E-commerce organization structure Organizational issues KPIs E-commerce performance management How e-commerce changes the role of the store Inventory management online Endless aisle - how feasible is it? Using omni-channel insights Omni-channel warehouse functions Retail Marketing Marketing structure Marketing KPIs Marketing activities Customer Relationship Management Loyalty vs retention Customers are not created equal Spending by decile Strategic CRM Segmentation by customer Customer analysis