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Case History

SITUATION:
A major CPG manufacturer was experiencing significant distribution voids/out of stocks on 7 priority SKUs in the major chain drug accounts.  They were looking to create sales and share growth through aggressive television advertising and other marketing programs.  It was imperative that retail conditions be improved to support the growth these initiatives were designed to deliver.

ASSIGNMENT:

This manufacturer contracted RPM to:

1. Create a retail plan to increase availability of their products in Chain Drug Accounts
2. Review service options and select providers best suited to their needs
3. Construct and deliver the most cost effective retail coverage possible
4. Provide ongoing management of all retail initiatives

SOLUTION:

RPM provided the following solutions to improve the client’s retail conditions:

PHASE 1

• Utilized store volume and market data to create a short term retail coverage plan for CVS, Rite Aid, and Wal-Mart
• Renegotiated the client’s contractual terms with its existing service provider to deliver immediate cost savings/efficiencies
• Constructed ongoing store service instructions designed to increase inventory on priority SKUs
• Created retail reports to benchmark current conditions and provide method for trending/measuring service results
• Provided ongoing management of retail initiatives

PHASE 2

• Presented newly developed retail plan featuring RPM Gold Performance Drivers – customized strategies/tools designed to maximize retail coverage and performance
• Developed store grading system to focus service on “high priority” stores, eliminating unnecessary coverage of stores with adequate inventory levels
• Utilized store grading system to produce a monthly Stock Level Scorecard used by the client’s sales personnel to address retail opportunities at chain headquarters and chain field management

PHASE 3

• Provided rationale for increasing the client’s retail budget to effectively support enhanced marketing/insurance initiatives
• Created new Expanded Service Plan using Spectra store volume data and Top Drug Markets to target retail coverage in major chain drug accounts
• Managed “Request for Proposal” process to identify those service providers best suited to achieve cost effective results
• Selected 2 new providers to replace existing service partner in order to deliver improved service performance and coverage capabilities
• Conducted price/contract negotiations with new providers to maximize cost savings/efficiencies
• Constructed Store Information Packet containing product and marketing information designed to alert store management of the need to increase inventory on the client’s products

PHASE 4

• Launched Expanded Service Plan using new service providers
• Developed ongoing market audit/mystery shop program (conducted by RPM) to measure retail conditions and pharmacy recommendations
• Provided comprehensive list of “worst stores” for the purpose of increasing store level inventory on the client’s products via “push out” program sold at chain headquarter level
• Continue to provide ongoing management of all the client’s retail initiatives

RESULTS:

RPM’s efforts produced the following results:

• RPM’s support  allowed the client’s sales personnel to remain solely focused on driving sales volume, avoiding the distractions of retail service management
• RPM’s selection of service providers and contract negotiation provided an annualized savings of 15.4% on the client’s retail service investment
• The service strategy and tactics developed by RPM improved product availability as follows: