News
Mosaic Walks the Retail Floor for Consumer Brands
By
Jun 6, 2007, 15:58

As one of the leading consumer merchandising firms in the United States, the Irving, Texas-based Mosaic executes retail promotions in over 75 different retail chains every day.  With over 10,000 representatives walking the floors of mass merchandisers, grocery and specialty stores, and office suppliers, the company has first-hand experience in explaining the daily reality of retail  to vendors, including purveyors of DVDs and other forms of entertainment media. 

"We manage the last three feet of the sale for our customers, where the brand and the consumer comes together.  It's up to us to find out if the product is out there, if the pricing is right and if the display is being used," explains Mosaic CEO Jim Rose. "As more complexity comes into the DVD category, as it gets more complicated from the consumer point of view to choose between formats, we become the representatives of the studios who help the consumers navigate through the decision-making process." 

Mosaic increased its commitment to the home video category last year when it hired Walt Disney supply chain veteran Vic Hernandez as Senior Vice President of its Client Services Division. Hernandez will be appearing as part of the panel on in-store merchandising at the Entertainment Supply Chain Academy, June 27-28 in Los Angeles. Prior to his year time at Disney, Hernandez was vice president of distribution/supply chain at T.J. Maxx. 

While Rose credits the face time its representatives have with retail employees as the core source of its service value to its customers, changes in the merchandising field are turning the business into more of a "science" than an "art," with the introduction of a range of key performance metrics -- measured in hours per door based on sell through -- assuring that vendor programs are fully "calibrated, orchestrated and optimized consistently across the country." 

What's more, in-store merchandising technology is changing the visibility of the service with scan-based trading having made the biggest impact on the business over recent years, and digital photographs and handheld scanners now providing increased reporting value from the field to headquarters.  Rose adds that "RFID is an important initiative that will go a long way in assuring vendors that the job is getting done." 

This is especially important when it comes to DVD sales where he explains, "the studios are recognizing that in-store execution is a top priority."

However, the job still comes down to people, Rose explains.  "Did the people go where they are supposed to do and do what they are supposed  to do?" 

As an executive who has spent most of his career in marketing information and advertising, Rose especially values the role that retail execution plays in delivering maximum advertising ROI for home entertainment companies. Rose came to Mosaic from his position as CEO of New York-based Media Planning Group North America, a unit of the Havas global advertising agency, one of the largest full-service media planning and buying companies in the United States and Canada.  

"From an ad marketing point of view, companies are putting increasing amounts of their budgets into retail point-of-sale because you have a greater, measurable return on your investment. You can connect with consumers where they shop. Depending on the product category, you are seeing a shift of those marketing dollars- to instore activities, with bigger displays and more in-store promotions where the clarity of the offer is paramount. 

"The consumer is demanding more; they are becoming numb to promotions.  And they are expecting a more personalized, in-store experience.  We are moving from a product-centric retail environment to a more consumer-centric retail approach, where even big box retailers are beginning to fragment their stores and are providing a different assortment of products to reflect localized trends and demands.  This is putting increased pressure on the stores and on their supply chains.  And it is changing the role that merchandisers play in supporting the retailer in their brand initiatives and making sure those initiatives are properly executed."

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