Sharing our Vision. Collaborative Business Plans

Transcription

1 Sharing our Vision Collaborative Business Plans

2 The CCO Team Carolyn O Grady-Gold Merchandising Erik Penno ecommerce Chief Customer Officer Kerri Dawson Marketing & Customer Intelligence Todd Bliss Customer Experience Rafik Louli Retail Operations Jackie Bonic Store Development & Real Estate

3 Customer Segmentation

4 Why a New Customer Segmentation? Previous segmentation now 10yrs old The market has changed Millienials are older

5 The Survey Respondents Total Sample n = 3006 When = November 2017 Region 18% Northern Gender 47% 53% Shopping Frequency For any beverage alcohol 16% Eastern 26% yrs Age 21% yrs Weekly 21% Monthly 68% 28% Western 39% Central 50% 27% 50% yrs 26% 65+ yrs Less Often 11%

6 Shopping for Beverage Alcohol in Ontario Ever Purchased Alcoholic Beverages LCBO: 99% The Beer Store: 82% Grocery Store: 58% Only LCBO: 11% LCBO & The Beer Store & Grocery Store: 51% LCBO & Grocery Store: 7% LCBO & The Beer Store: 30% One-half of Ontario beverage alcohol customers shop across all major channels LCBO, The Beer Store and Grocery Stores. 3-in-5 have ever purchased an alcoholic beverage from an Ontario grocery store.

7 Big Picture: 53% of Ontario residents purchase beverage alcohol at least monthly 53% Age 20 Age 65+ Base: Total Contacts, n=8359. Those who purchased any alcoholic beverage in the past 6 months. 7

8 Access to beverage alcohol through the grocery channel is quite pervasive Access to the Grocery Stores that Sell Wine/Beer/Cider 81% report they have access to a grocery store that sells wine/beer/cider in their area 12% have some knowledge about wine/beer/cider availability, but cannot name a specific grocery retail banner 6% are unaware of grocery beverage alcohol options in their area Grocery Store Particularly among residents of the Northern and Eastern regions (15% and 16%, respectively)

9 LCBO is most likely to be shopped at least monthly, regardless of category Wine Beer Spirits Coolers Cider Past 6 month purchase incidence: 92% 89% 79% 54% 43% % Shopping at Least Monthly: LCBO 80 LCBO 52 LCBO 48 LCBO 41 LCBO 35 Grocery Stores Wine retail shops Grocery Stores The Beer Store Distilleries 8 Grocery Stores The Beer Store Grocery Stores The Beer Store Wine brokers/buyers 9 Breweries 13 Breweries 11 Wineries 8

10 Master Assortment Strategy

11 LCBO Merchandising Strategy Exclusives Spirits +4.1% Vintages +4.2% ecommerce +138% Wines under $ % Shared LCBO Wines +1.7% Beer & Cider -0.3% Supported with data-driven, analytical Planning and Operations, enabled by technology

12 Focus On Vintages

13 End Aisle Program

14 New Merchandising Standards

15 Wines Integration through Zoning

16 Focus on Spirits

17 Spirits Domination

18 Enhanced Tastings

19 New Spirits Merchandising

20 Focus on Local

21 Focus on Local Wine

22 Focus on Local Beer

23 Focus on Local Spirits

24 New Beer Merchandising

25 LCBO Shopper Feedback Difficult to notice new products Hard to find what they are looking for Little information to help make an informed decision when trying something new Shoppers want section organized by segment Growing perception that grocery has more craft beer

26 Beer Market Share Change in Rolling Value ($) Share 661 Stores 26.7% Share 450 Stores 68.5% Share 232 Stores 2.9% Share

27 What s Changing FORMAT CENTRIC CUSTOMER CENTRIC

28 Current State: Three Spots

29 Future State: One Spot to Shop - One Spot to Stock!

30 New Excitement Zone

31 New Merchandising Toolkit Change #6: New Merchandising Toolkit

32 Easy to Shop

33 Products of the World

34 The Customer Experience

35 Create Better Merchandising Current State Wine Beer Spirits RTD

36 Define Zones for the Customer

37 Create More Opportunities

38 Execute Brand Spotlights

39

40 Grow Gifting Business

41 Education and Communication

42 Same Day Pickup

43 Same Day Pickup Customer Journey Visit lcbo.com or mobile app Shop Pilot Store s Assortment Pay Online Go to Store Within Hours

44 Same Day Pickup Customer Journey Pickup Orders Here Visit Click & Collect Area ID Check Acknowledge Pickup Take Order

45 ecommerce

46

47 Online Assortment skus LCBO Products of the World Vintages Canadian Inter-Provincial (3,292) (2,286) (448) (4)

48 Looking Ahead Dedicated ecommerce Team

49 Dedicated Capabilities Design & User Experience Operations: Order Flow & Service Tools & Platform Strategy Connectivity to Store Online Merchandising & Assortment Curation Analytics & Optimization

50 Looking Ahead The Digital Vintages Customer VSO Food & Drink APP Experience Needs Love LCBO.com LCBO APP Food & Drink Web

51 Immediate Priorities

52 Interface Consistency & Intuitiveness

53 Fly Out Menu

54 Product Findability

55 Setup Standards and Tools Tuning

56 Rollout Click & Collect

57 Accelerate Roadmap with the Resource Investment

58 Time & Motion

59 Goals & Objectives $9.7M Savings Standardized Processes Establish Ownership and Maintenance Enhance Customer Experience Consistency in Stores Improved Staffing Improved Budgeting Improved Scheduling and Planning

60 Standard Operating Procedures (SOP) Activities Cashiering Receiving 17 major activities covering most activities in-store Customer Engagement Stocking Warehouse to floor 5 priority activities covering 80% of labour Stocking Door to Floor

61 Retail s SOPs Efficiency Gains 40% 35% 30% 35% 30% 34% 25% 20% 19% 21% 21% 24% 15% 10% 5% 7% 3% 4% 0% Receiving Stocking Cashiering Customer Engagement Other APT Activities Deloitte's Study First SOP Rollout Group

62 Education & Communication at Retail

63 Launch of Product Knowledge E-Learning

64 Launch of Product Knowledge E-Learning PK for New Hires Core/Mandatory Advanced/Aspirational No time limit 3 Months 3 Months 3 Months 3 Months Core Foundations Core Grape Varietals New World Old World Beer, Sake, Cider & RTD Spirits & Liqueurs Sparkling and Fortified Advanced 8 Units = 125 Modules (includes advance)

65 LCBOConnect Version 2 New Features

66 LCBOConnect Version 2 Enhancing the Customer Experience

67 Customer Engagement

68 LCBO Customer Engagement Model Rational Connection Emotional Connection DRIVERS Shopping Ease Enjoyment Empowerment Corporate Citizenship Responsible BENEFITS Feel Relaxed Unique Offerings Unique Imagery Excitement IN-STORE Fulfilled My Goals Helped by Staff Social Well Stocked Information

69 Total LCBO Customer Engagement Target Achieved! Mean score out of 10

70 Helped by Staff Helped by Staff Mean score out of

71 Well Stocked 10 Well Stocked Mean score out of

72 Be the Headquarters for Learning

73 HQ for Learning Enhanced in-store signage WINE STYLES BEER STYLES WHISKY STYLES RTD STYLES

74 HQ for Learning Enhanced Tastings

75 HQ for Learning Profile In-store Experts

76 Profile In-store Expertise Staff endorsed fixtures

77 Profile In-store Expertise

78 Personalization

79 Customer s Digital Path to Purchase BEFORE DURING AFTER Hello Eva! Welcome back Eva! Personalized Hello Eva! Personalized Customized Website mylcbo App Customized Website

80 In-Store Tastings & Vintages Events

81 In-Store Tastings LCBO customers were greeted to over 30,000 in-store trade sampling events last year

82 Vintages Events

83 Centralized Assortment Planning

84 What is CAP? Centralized Assortment Planning

85 Why CAP?

86 Building a Foundation for CAP Laying the foundation for CAP: MDM (National Product Registry) Analytics Clustering Location Planning Store Analysis

87 Merchandise Management System Customer-Centric Merchandising Demand National Product Registry Master Data, Performance Item Management Macro Space Space Constraints Assortment Merchandise Financial Planning (MFP) Bottom Up Performance Category Roles and Targets Central Assortment Planning (CAP) Assortment Segments, Clusters, CDTs, Transference Market Data Customer Insights Space Planning System Pricing & Promotions Systems

88 To deliver remarkable experiences as the trusted destination for the world s wines, beers and spirits.

89 Sharing our Vision Collaborative Business Plans