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Copyright © Commercial Advantage Services Ltd. 2010. All rights reserved. Confidential and subject to contract.
1 ’Commercial Advantage’, the thumbprint symbol, ‘real results’ in the thumbprint and associated logos are all trademarks of Commercial Advantage Services Ltd.
Service Offerings
Copyright © Commercial Advantage Services Ltd. 2010. All rights reserved. Confidential and subject to contract.
2 ’Commercial Advantage’, the thumbprint symbol, ‘real results’ in the thumbprint and associated logos are all trademarks of Commercial Advantage Services Ltd.
Our approach delivers real results
Commercial Advantage helps leading consumer goods companies deliver world class customer execution
We bring customers to the very heart of your organisation
We are hired by leaders who are determined to deliver hard tangible results
We provide genuine insight into your customer’s needs, thought leadership on how to deliver your own objectives in this context, and a full integration service to bring the customer lens to all functional operations: Sales, Marketing, Finance, Supply Chain, HR & IT
World class customer execution is a £50m - £100m opportunity for a sizeable consumer goods operating company
Copyright © Commercial Advantage Services Ltd. 2010. All rights reserved. Confidential and subject to contract.
3 ’Commercial Advantage’, the thumbprint symbol, ‘real results’ in the thumbprint and associated logos are all trademarks of Commercial Advantage Services Ltd.
The ‘Customer’ is at the heart of our 3 key service areas
COMMERCIALSTRATEGY
COMMERCIAL EXECUTION
SUPPLY CHAIN EXECUTION
Customer Diagnostic
Strategic Analysis
‘Real Results’ Projects
Process & Performance Improvement
Bespoke Research
World Class Training
Types Of Services Offered
world class customerexecution
Copyright © Commercial Advantage Services Ltd. 2010. All rights reserved. Confidential and subject to contract.
4 ’Commercial Advantage’, the thumbprint symbol, ‘real results’ in the thumbprint and associated logos are all trademarks of Commercial Advantage Services Ltd.
Commercial Strategy creates a pathway to transformed growth
Internal and external benchmarking versus peer group and world class
Customer Diagnostics
Rigorous analysis for deep insight into the value of enhanced execution
Thought leadership for a visionary perspective on critical subjects & specialist market research
Strategic Analysis Bespoke Research
Opportunity sizingVoice of customerCustomer segmentationCustomer P&LPack / price architectureCapability prioritisationStrategic organisation designPathway to ‘world class’ & KPI definition
Example Deliverables
Customer & Channel Landscape, Category Expandability, Customer Insight Generation, Portfolio Appraisal, Customer Profitability, Trade Investment Deep Dive, Route-To-Market Model, Product Complexity Evaluation, Cost-To-Serve
COMMERCIAL STRATEGY SERVICES OFFERED
Copyright © Commercial Advantage Services Ltd. 2010. All rights reserved. Confidential and subject to contract.
5 ’Commercial Advantage’, the thumbprint symbol, ‘real results’ in the thumbprint and associated logos are all trademarks of Commercial Advantage Services Ltd.
Example proprietary IP for Commercial Strategy services
Internal and external benchmarking versus peer group and world class
Customer Diagnostics
Rigorous analysis for deep insight into the value of enhanced execution
Thought leadership for a visionary perspective on critical subjects & specialist market research
Strategic Analysis Bespoke Research
COMMERCIAL STRATEGY SERVICES OFFERED
ICETM DiagnosticICETM Solution
Component Model
Copyright © Commercial Advantage Consulting Ltd. 2006. All rights reserved. Confidential and subject to contract.
1 Month, 2006
How do we determine bottler involvement in a brand?Stage 1: Incubate
Does the brand have:• A distinct identity• An existing customer
base • Loyalty among core
consumers?
Stage 2: Nurture
Does the brand have:• Quality activation in store• A sustainable customer
base• The next community for
growth identified?
Stage 3: Build
Does the brand have:• Substantial customer
base• Significant consumer
following• Appeal outside core
target audience?
Stage 4: Scale
through full system involvement
Define operating model to incubate
Define operating model to nurture
Define operating model to build
Define operating model for mass
scale
Rev
iew
bra
nd
yes yes yes
no no no
Iden
tify
Cre
ate
Inve
st
• Identify the channels that are key to maintaining the integrity of the brand?
• Identify the parts of the operating model that can be best served with bottler capabilities
• Create an operating model for the brand to support the bottlers capabilities
• If current System lacks execution capabilities in certain areas, invest to build and understand timescales to achieve this
• Identify the best way of developing a substantial customer base
• Create a team to support the brand across different trade channels
• Invest in an operating model to allow us to start capturing economies of scale whilst preparing for possible future integration into the system
• Identify what distribution channels can be used to maintain a sustainable customer base
• Create a team to manage effective activation in store (eg. merchandising, customer relationships)
• Invest in the capabilities and structure required to nurture brands
• Identify what the brand is about and who the target consumer is
• Identify which distribution channels the brand should use to build equity with the target
• Create an operating model to effectively activate and service these channels (eg. brand ambassadors, field sales)
• Invest in the capabilities required to incubate the brand
RTM Models
5
In real terms this is a significant change for Cadbury . . .
1. Multi-functional engagement with appropriate customers to ensure a holistic business relationship anchored around joint strategic business planning
2. Agreed Unique Value Propositions with appropriate customers to achieve significant relevance and influence beyond the categories we operate in, and transformational consumer & shopper connectivity in our own categories
3. A business with the execution capability required to best manage the evolving customer landscape by striking the right balance between flexibility and cost.
TOFROM
Marketing building brand plans for Sales to take to customers
Sales acting as the interface with the customer
HR building capability in each Function
Logistics building the infrastructure to deliver product at the lowest possible cost
Finance understanding the impact of commercial decisions on the P&L
Manufacturing building it’s footprint to minimise manufacturing costs
Category defining product specifications and Manufacturing optimising efficiency
Marketing bringing the thought leadership required to create and execute UVPs
HR embedding a ‘world class customer execution’ culture
Sales acting as the facilitators of multi-functional customer engagement
Finance driving a holistic understanding of the impact of commercial decisions on the entire value chain
Manufacturing building it’s footprint from the customer landscape back with world class operational efficiency
Category/Manufacturing partnering to agree appropriate products specifications delivered at industry leading cost to value ratios
Logistics building the infrastructure required to optimise fulfilment of shopper demand at the lowest cost
Illustrative Example
Multi-Functional Customer TeamsMarket Analysis
Integrated Value Chain
Customer Segment performance analysis
Consumer Marketer
Promotion Merchandiser
Low Price Driver
Shopper Convenience
Wholesaler / Cash & Carry
Total Others
20%
25%
30%
35%
40%
-8% -6% -4% -2% 0% 2% 4% 6% 8%Predicted growth %
Mar
gin
%
Low Price Driver
Consumer Marketer
Promotion Merchandiser
Shopper Convenience
Wholesaler / Cash & Carry
Total Others
40
60
80
100
120
140
160
-8% -6% -4% -2% 0% 2% 4% 6% 8%
Predicted growth %
Trad
ing
Inde
x
Strategic Partner
Strategic Customer
Key CustomerTotal Others
20%
25%
30%
35%
40%
45%
-8% -6% -4% -2% 0% 2% 4% 6%
Predicted growth %
Mar
gin
%
Strategic Partner
Strategic Customer
Key CustomerTotal Others
40
60
80
100
120
140
160
-8% -6% -4% -2% 0% 2% 4% 6%
Predicted growth %
Trad
ing
Inde
x
n.b. Size of bubbles represents NSV
Customer Segmentation
19
We have clusterised the outlets to maximise profit opportunity
1. Decision maker = multiple outlets
3. Are there opportunities for cash transactions?
Yes No
4. Is it easy to sell?
Yes No
TargetedOutlets = 5,275
5. Is it easy to distribute?
Yes No
5. Is it easy to distribute?
Yes No
Platinum (2053)
Gold (2267)
Silver (828)
Bronze (1658)
Chocolate(9350)
2. Is the outlet traffic high or low?
ArmyUniversities
Sportswith building
SportsWithout Building
YesNo
2. Is the outlet traffic high or low?
3. Are there opportunities for cash transactions?
Yes
No
Chocolate(100)
4. Is it easy to sell?
Yes No
Platinum (95) Gold (32)
Commercial Public
Yes
NoRelegate50 000
Relegate65% of traffic
1. Decision maker = multiple outlets
3. Are there opportunities for cash transactions?
Yes No
4. Is it easy to sell?
Yes No
TargetedOutlets = 5,275
5. Is it easy to distribute?
Yes No
5. Is it easy to distribute?
Yes No
Platinum (2053)
Gold (2267)
Silver (828)
Bronze (1658)
Chocolate(9350)
2. Is the outlet traffic high or low?
ArmyUniversities
Sportswith building
SportsWithout Building
YesNo
2. Is the outlet traffic high or low?
3. Are there opportunities for cash transactions?
Yes
No
Chocolate(100)
4. Is it easy to sell?
Yes No
Platinum (95) Gold (32)
Commercial Public
Yes
NoRelegate50 000
Relegate65% of traffic
66000
Outlet Segmentation
18
UK
France
Poland
Germany
Spain
Italy
Segment/Region Prioritisation (1/2)
Shel
f Sta
ble
Mul
ti-Se
rve
Poland
Germany
Italy
Spain
UK
Germany
Spain
UK
France
Italy
Poland
Leve
l of C
ompe
titio
n
Leve
l of C
ompe
titio
n
Capability Fit
Chi
lled
Sing
le-S
erve
Low
HighUK
Italy
Spain
Germany
Poland
Leve
l of C
ompe
titio
n
Capability FitCapability Fit
Chi
lled
Mul
ti-Se
rve
High
Low
Low HighLow High
Capability Fit
Leve
l of C
ompe
titio
n
Shel
f Sta
ble
Sing
le-S
erve
Low HighHigh
Low Low
High
Low High
Sour
ce: E
UG
Jui
ce D
irect
ors,
Can
adea
n, N
iels
en, J
uice
Cen
tre T
eam
Ana
lysi
s &
Euro
mon
itor 2
006
France (Obscured €382M Retail Value)
France (Obscured €121M Retail Value)
Bubble Size = Estimated Retail Value € 2011
Portfolio AnalysisRealigning Resources
42Copyright © Commercial Advantage Consulting Ltd. 2006. All rights reserved. Confidential and subject to contract.
• Additional trade spend $ considered in 2006 include Consumer Promotions (POP material, generic in-store signage, on-pack consumer promotions, direct mail, sampling, coupon handling, agency fees) and SG&A (Customer data, corporate entertainment)
– This amount was not added to the 2006 trade spend total, however, to ensure an apples-to-apples comparison among 2004 and 2005 data
Trade Spend is difficult to assess, manage, and monitor per the complexity of the trade spend budget
$83 MM (35%) of trade spend does not reach the consumer
$0.2
$0.5
$1,334 $300
$53$980 $71
$30$82
$797 $440
$76
$281 $12
0
200
400
600
800
1000
1200
1400
1600
GSV GSAD NSV
Manual Price Sales TPR;
PMPFixed Costs Multi
BuysCoupons
LTA
Total Promotion Spend:$183.5
Total Discounts & Allowances: $53
Gross Profit
Cost of Sales Distribution
Cost
“Real GSV”
$(M
M)
UK Trade Spend Waterfall (2006) – Total Trade Spend ~$236 MMTrade Spend is 22.5% of Real GSV
Consumer Promotions
SG&A
UK vs US
$236MM $1,173MM
22.5% 14.4%
$0.2
$0.5
$1,334 $300
$53$980 $71
$30$82
$797 $440
$76
$281 $12
0
200
400
600
800
1000
1200
1400
1600
GSV GSAD NSV
Manual Price Sales TPR;
PMPFixed Costs Multi
BuysCoupons
LTA
Total Promotion Spend:$183.5
Total Discounts & Allowances: $53
Gross Profit
Cost of Sales Distribution
Cost
“Real GSV”
$(M
M)
UK Trade Spend Waterfall (2006) – Total Trade Spend ~$236 MMTrade Spend is 22.5% of Real GSV
Consumer Promotions
SG&A
UK vs US
$236MM $1,173MM
22.5% 14.4%
Pricing & Terms Analysis
Copyright © Commercial Advantage Consulting Ltd. 2006. All rights reserved. Confidential and subject to contract.
January, 2007
There are four alternative RTM models that CCGB could employ to achieve its objectives
Key objectives1. Improve penetration of NCB in
existing outlets
2. Create new outlets, particularly within IC channels
3. Better outlet activation to deliver brand promise
Franchise / LicenseUse franchisees to sell and
distribute products to selected channels
Field AgencyOutsource all or some of the RTM activities to
a field marketing agency
JV / Strategic Alliance
Partnering with another FMCG company
which is strong in IC channels
In-houseStatus quo or improving in-
house operations
Scaling Brands
Realigning Resources
104Copyright © Commercial Advantage Consulting Ltd. 2006. All rights reserved. Confidential and subject to contract.
Bottom 30 promotions account for $2,682,016 promotion spend
ROI Analysis 2006 to October (All Customers, All Promotions)
15 Lowest ROI Promotions
RO
I
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
Twin
s £2
P7P
ull u
ps s
ave
£1
P7
HLS
Sav
e £1
P13
PU
/ D
N /
HLS
3F2
P13
Eco
nom
y S
ave
£1
Aug
KFM
50%
ex
free
P5U
ltra
b2fo
r£2
P7
Dry
Nite
s 2
For £
8
P16
Hug
Nap
pies
2 fo
r
P8N
ewbo
rnB
2f£6
P8M
axib
2f£2
P1
Hug
gies
Nap
pies
P9
Pul
lups
Sav
e £1
Twin
s bu
y2 s
ave
£1 G
E
P13
Poi
se S
ave
80p
P5
KFM
twin
£2.
79
P4V
alue
Bag
£9.9
9
P14
KFM
Tw
in £
2.59
P7
Pul
l-Ups
/HLS
£3.
99 T
PR
P14
Hug
gies
Nap
pies
P14
Han
ks e
xtra
free
P13
KFF
Tw
in 2
5% e
xtra
Apr
il K
FF +
25%
ex fr
ee
P10
Dry
nite
s S
ave
50p
P3
Dry
nite
s S
ave
50p
P15
Dry
Nite
s 2
For £
8
P9
KFM
+14%
TP
R-P
t2
P6
Pul
l Ups
3F2
P3
Eco
nom
y S
ave
£1
P8B
AN
TI V
IRA
L £1
.19
30 Lowest ROI Promotions
ROI Analysis 2006 to October (All Customers, All Promotions)
15 Lowest ROI Promotions
RO
I
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
Twin
s £2
P7P
ull u
ps s
ave
£1
P7
HLS
Sav
e £1
P13
PU
/ D
N /
HLS
3F2
P13
Eco
nom
y S
ave
£1
Aug
KFM
50%
ex
free
P5U
ltra
b2fo
r£2
P7
Dry
Nite
s 2
For £
8
P16
Hug
Nap
pies
2 fo
r
P8N
ewbo
rnB
2f£6
P8M
axib
2f£2
P1
Hug
gies
Nap
pies
P9
Pul
lups
Sav
e £1
Twin
s bu
y2 s
ave
£1 G
E
P13
Poi
se S
ave
80p
P5
KFM
twin
£2.
79
P4V
alue
Bag
£9.9
9
P14
KFM
Tw
in £
2.59
P7
Pul
l-Ups
/HLS
£3.
99 T
PR
P14
Hug
gies
Nap
pies
P14
Han
ks e
xtra
free
P13
KFF
Tw
in 2
5% e
xtra
Apr
il K
FF +
25%
ex fr
ee
P10
Dry
nite
s S
ave
50p
P3
Dry
nite
s S
ave
50p
P15
Dry
Nite
s 2
For £
8
P9
KFM
+14%
TP
R-P
t2
P6
Pul
l Ups
3F2
P3
Eco
nom
y S
ave
£1
P8B
AN
TI V
IRA
L £1
.19
30 Lowest ROI Promotions
* Promotions = 0 or < 0 were considered outliers and not included: P5Econ B2 for £16 (Morrisons), P8 Buy 2 for £10 (Morrisons), P3 Huggies Wipes BOGOF (Coop GB)
Promotional Analysis
Copyright © Commercial Advantage Consulting Ltd. 2009. All rights reserved. Confidential and subject to contract.
9
TOP DOWN
Slash ‘N Burn
Promotion spend decisions are fraught with difficulty
Bottom Up
Spend Protection
“I asked you to re-cut spend, but you’ve ended up telling me why I can’t re-cut it”
Indecision/Steamroller
“The customer has to come
first”
“The brand has to come
first”
“We must ensure capacity
utilisation”
“Quarterly numbers must
be hit”
Cross-Functional
“You’ve re-cut spend, but it was the wrong spend
to re-cut”
Trade Investment
Copyright © Commercial Advantage Consulting Ltd. 2007. All rights reserved. Confidential and subject to contract.
8 November, 2007
£0
£5,000
£10,000
£15,000
Total Butterkist Total POPZ OL & Other Brands
52 w/e 22 May 05 52 w/e 21 May 06 52 w/e 20 May 07
b) Brand relevanceButterkist is the category defining brand in the UK
Butterkist was established in the 1930’s, has been the brand leader for several decades and carries a lot of heritage. It is the No. 1 brand with 41% share of take home – 4 times bigger than POPZ at 10.2%. Following declines in 2005/06 caused by a factory fire, Butterkist expenditure is up 161% driven by penetration gains (now at 15.4%). The trade consider Butterkist as the ONLY brand in popcorn and consumer brand awareness* is very high at 42%/93% (unaided/aided).
Source: TNS House Hold Panel data 52w/e 20 May 07. * Brand awareness: Synovate Research Co.
-2000 0 2000 4000 6000 8000 10000
Penetration % Purchase FrequencyTrip Volume (Kgs) Price per Kg
Source of Butterkist Growth
Take
hom
e An
nual
Hou
se H
old
Exp
endi
ture
£’0
00
Annual Household Expenditure £’000
+161%
-26%
+24%-12%
-12%
+97% “Butterkist is what the UK consumer has grown up on”Claire Bartlett, Waitrose
+94%
Due DiligenceMarket Research
Copyright © Commercial Advantage Services Ltd. 2010. All rights reserved. Confidential and subject to contract.
8
Priority issues and opportunitiesAverage Score
Brand, Product & Innovation
Physical Supply Chain
Finance & Administration
Strategic Business Planning
Promotion Investment
Shopper Marketing
Pricing & Terms
Format Differentiation
XXX receive an overall score of 3.2, and interestingly the respondents’ top 4 priorities are consistent across all channels.
Strategic Business Planning is the highest priority for all customers, but receives the lowest score and should be a major area of focus for XXX going forward.
By comparison, Pricing &Terms and Promotion Investment are priority 5 & 7. Internal respondents expected these to be amongst their highest priorities, however customers believe that they should be the by-product of a good business plan.
XXX are regarded as one of the best brand marketers with excellent in-store implementation.
2.6
3.2
3.4
3.7
2.8
3.7
2.1
3.3
High priority
Low priority
Ret
aile
r’s s
tate
d pr
iorit
y
1.
2.
5.
6.
7.
8.
3.
4.
Scoring: 1-2.9 = very / fairly poor; 3-3.5 = average; 3.5-5 = good – excellent
Cross Functional Relationships 3.2
9.
10 Corporate Social Responsibility 3.7
Performance Ranking
Copyright © Commercial Advantage Services Ltd. 2010. All rights reserved. Confidential and subject to contract.
10
Opportunities exist to co-create a differentiated approach
“My main priority is to build our brand’s stature through differentiation. To do this we need differentiated offers…I don’t want their pre-packed promotions. I want something that enables me to be different to others.”CCC, Retailer Z
“Partnership is key. Both brands have aspirations to have a meaningful relationship beyond supply…it’s not all about price, it’s a holistic view for bigger profits.”CCC, Retailer Y
“The company can add value by having a specific product with our brand on it, for example a SKU B that is exclusive to us and adds value to the category.”ZZZ, Retailer C
“They’re not asking me how we can focus on ‘Event A’ or link in to YYY. I don’t see unique approaches”YYY, Retailer B
“The biggest thing we need is partnership. For me that’s No.1 priority; shared visions and goals.” ZZZ, Retailer C
“They don’t necessarily understand our brand and how to use it as an enhancer, not a conflict.” BBB, Retailer Y
Lack Of Differentiated Approach
Customers need Company X to develop differentiated propositions to harness joint marketing capabilities and compete beyond the price platform
“We have a very strong relationship with the local community through schools and charities. Our teacher programmes mean we is everywhere…we really could do this together with Company X. ”AAA, Retailer X
“I think if you allow retailers to focus on differentiated packs you will see a movement away from price competition. SKU A is a massive KVI so there will always be a focus on it. But you could just promote the other pack formats.”XXX, Retailer A
“We have been searching for a value offering for segment X customers, and have never found one. So my YYY category is poor value and undifferentiated.”CCC Retailer Z
Verbatim Feedback
7© The Coca-Cola Company
Step 1 Channel analysis – using criteria to filter out the best candidate for RTM … POWERADE example from the EU
Outdoor public spaces
Outdoor sports with buildings
Outdoor sports without buildings
Fast food chainsProfessional sports teams & their physical
locations
Non sports institutions where young people
exercise
Sports shops Cafe / Restaurants
Sports rental outlets
Indoor sports with buildings
Forecourts
Supermarkets
Possible Channels
Indoor sports with buildings
UniversitiesCollegesSchoolsMilitary
GymsSwimming poolsIce hockeyRollerskatingBadminton
SquashBasketballVolleyball / HandballJudo / Martial arts
Outdoor sports with buildings
FootballTennisAthleticsRowingWatersportsRugby
GolfHockeySkiingCyclingBasketball
Non-sports institutions where young people
exercise
…this analysis is currently being used for different Brands / Channels across markets (e.g. Burn Night Life, CCL at Work)
Priority Channels
Sports credibility
Potential traffic / volume Access to target marketEase of current & potential distribution
Competitor activity
SweatinessBrand Relevant Criteria • “Paradigm Shift”: focus your
energy on most appropriate sub channels
EU Growth Destination Phase II
20 January 2006
16Confidential
Copyright © Commercial Advantage Consulting Ltd. 2006. All rights reserved Commercial Advantage
Business Case Building Blocks: Process Followed
From overall category analysis to detailed capability analysis, this stepped approach integrates future consumer needs and allows cross-category decision-making at each stage
Pur
pose Market analysis tool
identifying key challenges to enter the category and to stay competitive
TCCC expert interview, Euromonitor “Global Soft Drinks”report (01/11/05)
Requirements needed to enter the category and gain competitive advantage linked to key consumer trends
TCCC expert interview, Euromonitor “Global Soft Drinks”report (01/11/05)
Key requirements that define ideal market practice in the category over the next 5 years
TCCC expert interview,CoAdC industry knowledge
Key actions and current initiatives in order to achieve ideal market practice
TCCC expert interview,CoAdC industry knowledge
Assessment of TCCC and competitors’capabilities against the key requirements that define ideal market practice
Five Forces Model
MarketRequirements
Critical SuccessFactors
Capability Gap Analysis Key Actions
TCCC expert interview,CoAdC industry knowledge
Assessment of key strengths and weaknesses of the top competitors in the category
Datamonitor and Euromonitor competitive analysis, industry websites (www.beveragedaily.com)
CompetitorsStrengths &Weaknesses
Sour
ces
Copyright © Commercial Advantage Services Ltd. 2010. All rights reserved. Confidential and subject to contract.
10
There is a number of consistent themes across all retailers
Lack of customer differentiated approach
Quality of people
Evidence of improved performance
The Scale of Customer X
Limited supply chain fitness for purpose
Poor cross-functional customer interface
Mixed feedback on the supply chain indicates an opportunity for improvements in communication processes, demand planning and drop frequency.
Customers value and respect the people they meet and the professionalism & expertise they bring.
There is tangible evidence of progress made over the last 2 years, even with the loss of number of good people and known business issues
Customers need Company X to develop differentiated propositions to harness joint marketing capabilities and compete beyond the price platform
Customers are demanding to be managed in a more co-ordinated way with clear interfaces across multiple functions
Customers see Company X as unmatched in terms of the power of the brands, category expertise, supply chain infrastructure and global reach.
Limited adaptability to economic uncertainty
World events and local realities are driving concerns that consumer spending behaviour is changing and future plans need to reflect this.
Key Themes Capability Roadmap
Copyright © Commercial Advantage Services Ltd. 2010. All rights reserved. Confidential and subject to contract.
13
We need to decide our level of Ambition
Level of AmbitionDo
Nothing!Tactical
ImprovementsStrategicApproach
FundamentalRedesign
Building a shared long-term vision
Formalise the JBP approach to become
a better trading partner
Align longer-term commercial plans to become an
indispensable commercial partner
Use joint strategy development to become an indispensable
business partner
Transforming the consumer/shopper
relationship
Improve approach to category
management
Place specific efforts behind major strategic initiatives
Develop a ‘hook’ that can unlock mutual consumer strategy
Maximise performance (by season, by format)
Better incorporate store, format
(including dot.com) and NPD into the
JBP
Realign marketing plan to deliver against the
format/season opportunity
Develop a holistic innovation plan to capitalise on seasonal and
format opportunities
Enabling multi-functional relationships
Further broaden relationships multi-
functionally
Set up a virtual multi- functional XXX-Retailer business team
Set up a hard wired multi-functional XXX/Retailer business
team
Better managing customer investments
Re-position investments to
manage political sensitivities
Re-align all customer investment plans around revised
joint Retailer objectivesRun a joint XXX / Retailer P&L
Building a best in class supply chain
Deliver 2010 supply chain plan
Identify & implement significant supply chain initiatives (e.g.
order consolidation, day 1 for day 2 ordering, Collaborative
Planning Managers, 6-day ordering & deliveries)
Partner with Retailer on game changing initiatives (e.g. 24/7 order delivery, stockless supply chain on major lines, co-locate XXX-Retailer
supply chain teams
1-year
3-year
Copyright © Commercial Advantage Services Ltd. 2010. All rights reserved. Confidential and subject to contract.
6 ’Commercial Advantage’, the thumbprint symbol, ‘real results’ in the thumbprint and associated logos are all trademarks of Commercial Advantage Services Ltd.
Commercial Execution drives market place activation
Live projects to create rapid results, prove a new approach and address pressing issues
‘Real Results’ Projects
Proven new approaches from ‘real results’ projects embedded in sustainable solutions
People solutions, hosted seminars and company specific training on critical execution capabilities
Process & Performance Improvement World Class Training
Pressing commercial issues fixedReworked commercial plansImmediate P&L impactNew capabilities embeddedRe-designed commercial processesCommercial IT systems implementedTeam vision stretched to world class
Example Deliverables
Trade Promotions, Shopper Marketing, New Product Launch, Pricing & Terms, Customer Business Planning, Commercial Brand Rejuvenation, Challenger Brand Development, Field Sales Effectiveness, Demand Forecasting
COMMERCIAL EXECUTION SERVICES OFFERED
Copyright © Commercial Advantage Services Ltd. 2010. All rights reserved. Confidential and subject to contract.
7 ’Commercial Advantage’, the thumbprint symbol, ‘real results’ in the thumbprint and associated logos are all trademarks of Commercial Advantage Services Ltd.
Example proprietary IP for Commercial Execution services
Live projects to create rapid results, prove a new approach and address pressing issues
‘Real Results’ Projects
Proven new approaches from ‘real results’ projects embedded in sustainable solutions
People solutions, hosted seminars and company specific training on critical execution capabilities
Process & Performance Improvement World Class Training
COMMERCIAL EXECUTION SERVICES OFFERED
JBP MethodPromotion
Decision LogicTradEx Balanced
Scorecard
Customer BP Process Demand Forecasting Process
Consumer Objective SetterInnovation Process
Promotion Process
Joint Business Planning
Pricing Decision Logic Shopper Marketing Model
Commercial Rejuvenation Diagnostic
Challenger Brand Model
Copyright © Commercial Advantage Consulting Ltd. 2008. All rights reserved. Confidential and subject to contract.
11 20 August 2008
The end-to-end Promotion Spending Logic
Could the ROI have
been improved?
Was this activity
right for the consumer?
Impact on next
year’s plan
Review & learn
Will cutting this activity
create a major
business / customer
issue?
no
yes
Activity up for cut
Is this activity in
line with our consumer
objectives?
Cut Activity
Will reallocating this budget
create a major business / customer
issue?
Re-allocate budget
Budget up for reallocation
Plan activity
Not yet allocated to brand
Fund status
Not yet allocated to customer
Budgeted to customer, activity
not planned
Activity planned, not submitted
Activity submitted, not confirmed
Activity confirmed
Activity under way
Activity finished
What is our ideal fund allocation
across brands & customers?
How does this compare with
our current fund
allocation?
Opportunities & targets for fund
reallocation
Use ROI checklist to
inform actions to improve activity ROI
Execute ROI
improve-ments
Maximise ROI
yesyes
nono
Copyright © Commercial Advantage Consulting Ltd. 2008. All rights reserved. Confidential and subject to contract.
9 November 2008
We need a clear structure for our future JBP
The Ambition
The Guiding Principles
The Trading Plan Process Improvements Strategic Projects
Terms & Conditions
Decision Making Process
Barriers & Solutions
Set-Up
Content
Activation
Market KVI retail price
1. The Brand Retail Price Map
How does the quality compare
to the anchor?
How does the pack
size relate to the
anchor?
Who do you want to pay the premium?
higher
equal
lower
Who do you want to
take the benefit
Manufacturer
How much do you want to charge?
Manufacturer
Shopper
How much do you want to give?
Shopper
higher
equal
lower
How much discount do you want to
give?
What premium do you want to charge?
Can this price deliver
business objectives?
Grocery Suggested retail price
list
yes
Is there scope to change relativity
structure?
no
yes
RESET ANCHOR
noyes
Will this meet
internal margin
requirements
Define Business Objectives by sku
no
0%
0%
X%
X%
change %Current after launch
Margin (Foamburst)Margin before relaunch 0.23£ Margin after relaunch 0.28£ 25.1%
Sales Volume (Foamburst)sales volume before relaunch 1,134,796 effect change in retail sales price -327,461 -28.9%effect new packaging 45,392 4.0%effect line extension - 0.0%effect sampling campaign 46,500 4.1%effect promotions 925,644 81.6%
Total Foamburst Sales Volume after relaunch 1,824,871 60.8%
Effect on total sub-categorytotal sub-category sales volume before relaunch 44,970,000 net category expansion 454,760 1.0%total margin on Foamburst sales 257,598.69£ 459,384.95£ 78.3%total margin on other brands 10,958,801.00£ 10,899,972.10£ -0.5%
Total sub-category margin 11,216,399.69£ 11,359,357.04£ 1.3%
Copyright © Commercial Advantage Services Ltd. 2010. All rights reserved. Confidential and subject to contract.
5 ’Commercial Advantage’, the thumbprint symbol, ‘real results’ in the thumbprint and associated logos are all trademarks of Commercial Advantage Services Ltd.
The ‘Commercial Deconstruction’ will provide rapid insight
OverallWhat is the headline brand strategy?What is the role of the brand and how will it fulfil this role?
Brand propositionWhat is the core idea?How is the brand architecture constructed?What are the brand values and how are they aligned with target consumers? What is the right target audience?How are brand plans rooted in clear need states and occasions?
Product and packagingDoes our SKU line up fit with our brand architecture?Is our packaging appropriate from a consumer, customer and cost perspective?
PricingDo we have the right core price points?Is our overarching price architecture appropriate?Does pricing support our promotion objectives?
ATL investmentIs our investment fit for purpose (do we have the right balance between ATL and BTL)?Do we have an appropriate communication channel mix?Do we deploy the right messaging and is the message communicatedin the right way?Does our communication reach our target consumers?Are our ATL activities linked to BTL activities in the right way to drive transactions?
PromotionsDo we have appropriate promotional budgets?Do we use the right promotion mechanics and are they linked to clear consumer behaviour objectives?Do we differentiate and customise across channels & formats?Are our promotions supported and executed in the right way by our customers?
CategoryIs the role of the brand clear in the category?Does the brand / range have a differentiated positioning in the category?Are brand and category plans based on key category drivers, consumer & shopper insight and shopper missions?
NPDDoes NPD have a clearly defined role in the portfolio / category?Has our NPD entered and stayed at an appropriate premium?Does our NPD bring ‘new news’ to the category?Do we have sufficient speed to market and the right launch capabilities?Is our NPD success rate acceptable?
CustomersAre we meaningful for our customers?Do we have the right channel mix and outlet segmentation?Are we paying due consideration to evolving store formats?Do we have the right RTM?
CompetitionHow do we stack up against our competition?
For Understanding For Challenge*
* = For each area where we provide challenge, the Commercial Deconstruction will highlight where we see problems, opportunities and solutions (and where there is too little readily available information provided by Burton’s to make a decision)
1. Why an Acceleration Programme?
Operating Model
Global Focus
Accelerated Ambition
Behaviours
Targets based on incremental growth or historical performance
Reset ambition based on size of the opportunity and a brutal confrontation of the barriers to execution
Single market approach to building challenger brands
Learning cross markets, tested approaches, system momentum with global funding options
Traditional ways of working limits ability to develop challenger brands
into market leaders
Full alignment of operations across system, business cases, local governance etc.
Lack of focus or understanding of challenger brand issues. Critics
rather than champions
Full and continued commitment behind the brand, for the long term
Growth not sustainable after year 1 and innovation seen as failure
Brand seeded through focused route to market not just short term marketing campaigns. Community approach
Commercial Results
7
From To
Leadership Scorecard
CSS S&T DSS PrDC Dry Dog Dry Cat MFC Balanced ViewCurrent Performance( Balanced Measure )
Change:
% of SpendAligned to Objectives
Strategic Objectives NSV ROI GMAC
ROI£ YTD vs
Plan£ YEE vs
Plan
%NSV YTD vs
Plan
%NSV YEE vs
Plan
Share of NSV
Share of Budget
Total Business:
Cat Single Serve:Snacks & Treats: RAG for each populated with % values populated with +/- £ or % values
Dog Single Serve: conditional formatted eg: + / - £x + / - £x + / - % + / - %Premium Dog Can: >90%
Dry Dog: 80-90%Dry Cat: <80%
Manage for Contribution:
% of SpendAligned to Objectives
Strategic Objectives NSV ROI GMAC
ROI£ YTD vs
Plan£ YEE vs
Plan
%NSV YTD vs
Plan
%NSV YEE vs
Plan
Share of NSV
Share of Budget
Total Business
Grocery Total
Tesco RAG for each populated with % values populated with +/- £ or % valuesJS conditional formatted eg: + / - £x + / - £x + / - % + / - %ASDA >90%Morrisons 80-90%
Convenience Total <80%
COOP
SPT Total
P @ H
Grocery Conv SPT Grocery Conv SPT Grocery Conv SPT Grocery Conv SPT Grocery Conv SPT Grocery Conv SPT Grocery Conv SPTMars X X X X X X X X X X X X X X X X X X X X XNestle X X X X X X X X X X X X X X X X X X X X XOthers X X X X X X X X X X X X X X X X X X X X X
Grocery Conv SPT Grocery Conv SPT Grocery Conv SPT Grocery Conv SPT Grocery Conv SPT Grocery Conv SPT Grocery Conv SPTMars X X X X X X X X X X X X X X X X X X X X XNestle X X X X X X X X X X X X X X X X X X X X XOthers X X X X X X X X X X X X X X X X X X X X X
Top 10 NSV ROI Promtions in the Business (Post Eval) Bottom 10 NSV ROI Promtions in the Business (Pre Eval)
Account: Pd Mercury ID Brand Tech Offer Strategic ? NSV ROI GMAC ROI Account: Pd Mercury ID Brand Tech Offer Strategic ? NSV ROI GMAC ROIAsda 2 2456 Whiskas Complete 2F£5 1.9 0.5 JS 2 2456 Whiskas Complete 1/2 Price 0.5 0.5JS 3 3289 OHSO Pouch PD £2 1.9 -0.1 Tesco 3 3289 OHSO Pouch Bogof 0.6 -0.1
Asda 4 9348 OHSO Pouch PD £2 1.8 0.5 Asda 4 9348 OHSO Pouch 2F£4 0.6 0.5JS 5 3732 Whiskas Complete 2F£5 1.8 0.7 JS 5 3732 Whiskas Complete 2F£5 0.7 0.7
Waitrose 3 2399 OHSO Pouch PD £2.50 1.7 0.9 Waitrose 3 2399 OHSO Pouch 1/2 Price 0.8 0.9Morrisons 6 3288 Whiskas Complete PD £2.50 1.6 -0.4 Morrisons 6 3288 Whiskas Complete 2F£5 0.9 -0.4
Asda 2 9348 OHSO Pouch 2F£5.50 1.6 0.7 Asda 2 9348 OHSO Pouch 2F£4 0.9 0.7JS 4 3732 OHSO Pouch Save 1/3 1.5 0 Tesco 4 3732 OHSO Pouch 2F£5 0.9 0
Waitrose 4 2399 Whiskas Complete Save 25% 1.5 0.3 Tesco 4 2399 Whiskas Complete 2F£5 1.0 0.3Morrisons 3 3288 Whiskas Complete PD £2 1.5 0.4 Tesco 3 3288 Whiskas Complete 2F£5 1.1 0.4
Barriers to executing the Plan: Opportunities:Cat Single Serve: Cat Single Serve:Snacks & Treats: Snacks & Treats:
Dog Single Serve: Dog Single Serve:Premium Dog Can: Premium Dog Can:
Dry Dog: Dry Dog:Dry Cat: Dry Cat:
Manage for Contribution: Manage for Contribution:
Learnings that could benefit others: Decisions RequiredCat Single Serve: Cat Single Serve:Snacks & Treats: Snacks & Treats:
Dog Single Serve: Dog Single Serve:Premium Dog Can: Premium Dog Can:
Dry Dog: Dry Dog:Dry Cat: Dry Cat:
Manage for Contribution: Manage for Contribution:
Cat Single Serve Snacks & Treats
P-Spend Variance
P-Spend Variance
Commentary
Commentary
Alignment of P-Spend by Battlefield
Alignment of P-Spend by Channel / Account
P-Spend Allocation
Volume on Deal %
Share of Off-Shelf Feature
Manage for Contribution
Cat Single Serve Snacks & Treats Dog Single Serve Premium Dog Can Dry Dog Dry Cat Manage for Contribution
P-Spend Allocation
Dry Dog Dry CatDog Single Serve Premium Dog Can
Copyright © Commercial Advantage Services Ltd. 2009. All rights reserved. Confidential and subject to contract.
6
Pd Close Pd No.s IRI TNS
What is the optimal schedule to enable the best flow of information?
Week 4Week 3Week 2Week 1
4
5
6
Sales Ops
Period Review
Battlefield Mtg
Step 2: IBM
Star Chamber
DLT
MAB
11 12 13
14
14
TBC
¼ erly
¼ erly
Key Changes• So as to make the key meetings better informed the order of meetings will change to enable the following flow of
information: Channel => Battlefield => DLT. Grocery Traders meeting on Wed wk 2 will be formalised to ensure the flow of information & scorecard reviewThe BF meetings are moving to Tues, Wed & Thurs of wk 3 to ensure market data from IRI & TNS is readyThe DLT & MAB meetings are then moved to Tuesday of wk 4. The MAB will need to have a fixed schedule to ensure it happens every quarterBattlefield feedback will be given to the NAMs by end of wk3 to enable the appropriate changes to be made before the end of the period. BF Outputs will also be reviewd in the Grocery Channel Meeting in Wk 4
• The LMT meeting has no interaction with promotions, so is considered it out of scope
12 13 14
17
¼ erly17
10 18SPTGrocery
Convenience (¼erly)Channel Meetings
9All Channels Traders MeetingsTraders Meetings
INSTRUCTIONS FOR COMPLETION
Objective of Template
The purpose of this template is to clearly communicate the Brand & Consumer Objectives to the sales team, so as to inform their promotional plans. The Account managers will refer to this document when creating promotional plans to deliver the brand objective within the unique environment of their account .
This document should therefore inform their thinking and offer guidance as to the metrics they are trying to achieve, the 'brand objective', 'preferred mechanic' and any relevant timing that should be observed.
PREMIUM CAT SINGLE SERVE Battlefield Brand Objectives 2010
Product Range
Priority Preferred # Activities Total Weeks Key Timings Max Depth Measures Top 5 Priority SKUs
Pack Size or Range Current Behaviour ChallengeObjective
(select from list) Desired BehaviourMechanics
(select from list) Per Year Per Year (e.g. Pds on TV etc) of Discount (Based on ROS & GMAC)
Priority1:…(insert N/A if no priority order)
Price Down
1.5kg:1. Chicken2. Beef & Veg3. etc4. etc5 etc
Priority 2: …
Multibuy
3kg:1. Chicken2. Beef & Veg3. etc4. etc5 etc
Priority 1:…
Link Save
3kg:1. Chicken2. Beef & Veg3. etc4. etc5 etc
Priority 2: …
Any mechanic with feature
15kg:1. Chicken2. Beef & Veg3. etc4. etc5 etc
Priority 1:…
DO NOT PROMOTE
1.5kg:1. Chicken2. Beef & Veg3. etc4. etc5 etc
Priority 2: …
Multibuy
3kg:1. Chicken2. Beef & Veg3. etc4. etc5. etc
Priority 1:…
Link Save
3kg:1. Chicken2. Beef & Veg3. etc4. etc5. etc
Priority 2: … Any mechanic with feature
15kg:1. Chicken2. Beef & Veg3. etc4. etc5. etc
Notes:Example Content:
Any exceptions to the above informationAny conflicts to avoid, e.g. 'do not promote Pedigree Yellow & BBN at the same timeAny other promotions or combinations to encourage e.g. 'do promote product X with product Y'
Target Customer
To be completed…
Channel / Account
Current State Future State
Supermarket Frequency
Convenience Frequency
SPT Trip Size
Whiskas Core
NSV ROI: xxx
NSV%GSV minimum: X% std; Y% on promo
Financial Targets
NSV ROI: xxx
NSV%GSV minimum: X% std; Y% on promo
NSV ROI: xxx
NSV%GSV minimum: X% std; Y% on promo
NSV ROI: xxx
NSV%GSV minimum: X% std; Y% on promo
Internet Frequency
July 2005
17Confidential
Copyright © Commercial Advantage Consulting Ltd. 2005. All rights reserved Commercial Advantage
Calculate against BOM ‘recipe’ to receive details of raw materials requirements as a nettconsumption plan
Develop Detailed Forecasts (Bottler) - Forecasting
Receive tactical forecasts from Planners and Produce Planning model which focuses on production capacity issues
Production Plan : Look at stock on hand, Sales Forecast, Stock cover and compare production requirements to capacity
Convert production plan to monthly plan and capture proportional factors (% contribution of brand item) based on last 4 weeks history from Demand Planners
5 6 7 8
Send figures to procurement who compare nett plan to current stock levels
9Send figures to Division and Conco. Issue 6 week forecast to
Production planners to check stock levels per SKU. This is then issued to plants.
Plants call off concentrate based on production plan – 2 weeks of which is fixed.
10 11 12
Demand Planners visit plants and discuss market conditions and any forecasting isses
3 years sales history from the BASIS system is uploaded into SAP APO system which creates forecasting models
Any specific anomalies are handed over to Market Research team to investigate
New product forecasts are manually fed into the system on a weekly basis and adjusted according to actual sales
1 2 3 4
35
OpportunityAssessment
Inno
vatio
nC
ounc
il
We have also designed the key decision/check points and the inputs needed to make these them
DPs
Ratify approval
Undertake post launch
review
Launch plansBusiness caseProject proposal
Approve business
case
Approve funding to
progress into Development
Project Charter
Ratify approval
Approve annual project budget
Key decision pointsReviews & ActionsKey Input
Reconfirm approval and
Assign Budget
Approve as TI Allocate Resources
Review summary progress overview
Landscape report
List prioritized opportunities
Decide if project is
Transitional and Assign
Priority
Monthly Project progress report
Decide what to do with duplicate activities
Inputs
11.00- 12.00 Getting us started – Speaker’s presentation slides
Recommend funding to
progress into Development
Approve Post-Launch
audit
Approve launch plan
Review project progress monthly & recommend actions for projects that are ‘off course’
Review/Audit
Stag
es
Global Scoping
Ideation Preliminary Business
Case
Opportunity Identification
Mappings/ Landscape
3 4 521
Full Business Case
Commercial-isation
Launch ReviewFull Development
6 7 8 9 10
Customer Trading Strategy - Overview
5
Developing the Customer Trading Strategy should begin after the first draft of the Country Trading Strategy is completed in June
Draft Brand Activation Plans
Activities led by Marketing
Jan Feb NovMar Apr May DecOctSeptAugJulJun
Marchforecast
Juneforecast
September forecast
December forecast
Brand Planning Meetings
Country Trading Strategy refined
Goals and Measures set based on December forecast
Brand Activation Plans refined
Activities led by Country Leadership Team
Activities led by Finance
Advantage Group Survey released
Brand Development Plans
Customer Trading Strategies
Next year’s Customer Plans
Review and negotiate plans with customers
Finalise Customer Trading Strategies with P&L
Customer Segmentation
Top-down objective setting by category / customer
Activities led by Customer Team
Customer Business Drivers
Set budgets by brand top-down
Finalise budgets by customer bottom-up
Jan Feb NovMar Apr May DecOctSeptAugJulJun
Category Strategies
Country Trading Strategy:Objectives, Strategies & Initiatives
Promotion Planning
Shopper Marketing
New Product Launch
Challenger Brand
e.g.
Copyright © Commercial Advantage Services Ltd. 2010. All rights reserved. Confidential and subject to contract.
8 ’Commercial Advantage’, the thumbprint symbol, ‘real results’ in the thumbprint and associated logos are all trademarks of Commercial Advantage Services Ltd.
Supply Chain Execution cost effectively transforms service
Live projects to create rapid cost reductions using industry benchmarks
‘Real Results’ Projects
Complex, medium to longer term programmes designed to deliver transformational performance
People solutions, hosted seminars and company specific training on critical execution capabilities
Process & Performance Improvement World Class Training
Pressing supply chain issues fixedCore service level deliveredPan-European warehousing optimised‘Perfect Order’ embeddedSupply Chain KPIs alignedSpecific cost reductionsTeam vision stretched to world class
Example Deliverables
Transport & Warehousing, Cost-To-Serve, S&OP, ‘Perfect Order’, LSP Tendering, Collaboration With Other Manufacturers, Major Customer Management
SUPPLY CHAIN EXECUTION SERVICES OFFERED
Copyright © Commercial Advantage Services Ltd. 2010. All rights reserved. Confidential and subject to contract.
9 ’Commercial Advantage’, the thumbprint symbol, ‘real results’ in the thumbprint and associated logos are all trademarks of Commercial Advantage Services Ltd.
Example proprietary IP for Supply Chain Execution services
Live projects to create rapid cost reductions using industry benchmarks
‘Real Results’ Projects
Complex, medium to longer term programmes designed to deliver transformational performance
People solutions, hosted seminars and company specific training on critical execution capabilities
Process & Performance Improvement World Class Training
SUPPLY CHAIN EXECUTION SERVICES OFFERED
Major Customer Management
Service Levels
Perfect Order
Cost-To-Serve
S&OP
e.g.Transport Benchmarks Perfect Order Diagnostic
Service Level BenchmarksNetwork Optimisation Model
S&OP Diagnostic
Warehousing Benchmarks
60%
65%
70%
75%
80%
85%
90%
95%
100%
Order receipt Orderprocessing
Price file Despatch Delivery Invoiceaccuracy
Cash on time
"Perfect Order" score after re‐engineering the processes = 88%
80.00%
82.00%
84.00%
86.00%
88.00%
90.00%
92.00%
94.00%
96.00%
98.00%
100.00%
Client Peer group1
Peer group2
Peer group3
Peer group4
Peer group5
Case fill
OTIF
% claim‐free invoice £
0246810
Forecast process
Forecast ownership
Forecast accuracy
S&OP sponsorship
RCCP translationSchedule adherence
Timeliness of data
Accuracy of data
KPI conflicts
Client
Good
CTS shows considerable variations in the cost to serve different customers in each of transport, warehouse variable and Customer Service (Sales Order Processing)
Cost-To-Serve Method
0
2
4
6
8
10RH&D per pallet
Pence / case pickedStorage £/pall/wk
These scores are out of 10 where 10 = market rate and anything lower = overspend. The premium here is worth £1.05m p.a.
Warehouse cost benchmark
The current transport solution operates at a 33% premium to Gold Standard rates, at an on-cost of £4.3m pa
33%
28%
22% 21%
16% 15%
9%
‐4%
‐10%
‐20%
‐10%
0%
10%
20%
30%
40%
Cadbury 4 2 3 5 1 9 7 6
Summary transport benchmark by % GSI
site reference
Halving the GSI Gap in year 1 will realise
£2.15m
Culina offer excellent rates for small drops and good rates for full loads – why don’t they carry more?
0% 4%
44%
54%52%
13%
-£5,000
£0
£5,000
£10,000
£15,000
£20,000
£25,000
-10%
0%
10%
20%
30%
40%
50%
60%
1 2-4 5-10 11-16 17-22 23-26
% G
SI
GSI By Plt Band (Culina)
The circled rates are better than Gregory or Hargreaves
Case picking is the only area where you are not competitively disadvantaged by current rates
A perfect example of the way that costs massively more to service than and well above the average for all customers
Retailer 1
• 100% full, standard pallets
• @ 26 pallets/ order• Single warehouse 120 km
from your warehouse
• Orders received via “straight‐through” EDI
• CTS = 85% of std cost
Retailer 2
• 100% picked cases
• Pallet height restrictions
• Requires Value Added Services• @ 4 pallets / order
• 6 warehouses average 185 km from your warehouse
• Orders received by fax and transposed
• CTS = 127% of std cost
Compare Std £/case with CTS £/case
v
vv
v v
Copyright © Commercial Advantage Services Ltd. 2010. All rights reserved. Confidential and subject to contract.
10 ’Commercial Advantage’, the thumbprint symbol, ‘real results’ in the thumbprint and associated logos are all trademarks of Commercial Advantage Services Ltd.
Our Leadership Team brings exceptional industry expertise
Robert Leechman, Executive ChairmanThirty years FMCG experience at Mars & Coca-Cola, latterly as the Chief Customer & Commercial Officer of The Coca-Cola Company based in Atlanta. Responsible for Commercial Advantage’s strategic direction and most senior trade and supplier relationships.
Patrick Wenckebach, Commercial Strategy Practice LeaderA Gemini trained Strategy Consultant with the pragmatism required to ensure that execution realities inform strategic changes. Has worked exclusively in retail and consumer goods and built many winning Customer Strategies in the UK & internationally.
David Walmsley, Commercial Execution Practice LeaderDeep commercial expertise built as a frontline NAM and Customer Marketer, with line experience from Mars, United Biscuits and Innocent. As a consultant, David has worked across the commercial functions of many of the UK’s leading consumer goods companies.
Tim Knowles, Supply Chain Execution Practice LeaderA senior supply chain expert, with a line management background at Procter & Gamble and Allied Lyons, followed by a very broad range of consulting experience. Tim has worked at senior level with major UK retailers including Asda, Tesco and Waitrose and with more than 20 grocery manufacturers from major multinationals to private label specialists.
Dr Emyr Williams, Director Of InsightsWith line management experience from Reckitt, Golden Wonder-HP Foods & Glaxo and 25 years in consulting, latterly as the European Consumer Markets Head at KPMG, Emyr brings an unparalleled breadth of experience in consumer goods.
Aidan Bocci, Chief ExecutiveFormerly in Customer Business Development at Procter & Gamble, where he helped build Europe’s first multi-functional customer business team with Tesco. Has since been accountable for over 300 customer driven projects for consumer goods manufacturers. Responsible for the delivery of real results with our clients.
Alex Hewitt, Northern Region HeadHaving spent ten years in Customer Business Development and Customer Marketing at Procter & Gamble, which included managing critical aspects of the Gillette integration, Alex now manages our Northern Office to help bring to bear our full service offering to some of our Northern clients.
Copyright © Commercial Advantage Services Ltd. 2010. All rights reserved. Confidential and subject to contract.
11 ’Commercial Advantage’, the thumbprint symbol, ‘real results’ in the thumbprint and associated logos are all trademarks of Commercial Advantage Services Ltd.
Our clients have already started the journey towards ‘world class customer execution’
DrinksDrinksRestructuring an organisations entire operating model and route to market structure to turnaround a stalling brand Restructuring an organisations entire operating model and route to
market structure to turnaround a stalling brand
£16.4m of incremental profit£16.4m of
incremental profit
Sector Programme Outcome
FoodFoodIntroducing a market leading Joint Business Planning Process with Tesco, to secure delivery of mutually valuable sales fundamentalsIntroducing a market leading Joint Business Planning Process with
Tesco, to secure delivery of mutually valuable sales fundamentals
£45m increase in annual profit£45m increase in
annual profit
Health & Beauty
Health & Beauty
Re-structuring the supplier’s portfolio to drive growth in collaboration with UK retailersRe-structuring the supplier’s portfolio to drive growth in collaboration
with UK retailers
13% increase in company turnover13% increase in
company turnover
HouseholdHouseholdUsing retailer engagement to mobilise a 3 year ‘winning with customers’ programme & driving European execution, led by the UKUsing retailer engagement to mobilise a 3 year ‘winning with
customers’ programme & driving European execution, led by the UK
£7.4m of cost savings in year 1 £7.4m of cost
savings in year 1
Over 200 recent successful initiatives
DrinksDrinksIntroducing a market leading Joint Business Planning Process with Tesco, to ensure pay for performanceIntroducing a market leading Joint Business Planning Process with
Tesco, to ensure pay for performance
£8m in cost avoidance£8m in cost
avoidance
FoodFoodHolistic customer led turnaround, following the acquisition of a major food player by a leading Private Equity houseHolistic customer led turnaround, following the acquisition of a major
food player by a leading Private Equity house
Return to growth within 3 monthsReturn to growth
within 3 months
Health & Beauty
Health & Beauty
Realigning promotional investments, pricing and trade terms to reset trade investment trajectoryRealigning promotional investments, pricing and trade terms to reset
trade investment trajectory
£5m of incremental profit in year 1£5m of incremental
profit in year 1
FoodFoodUsing a transport benchmark to negotiate cost saving with an existing LSP, leading to 6 month back-dated concession and recurring savingsUsing a transport benchmark to negotiate cost saving with an existing
LSP, leading to 6 month back-dated concession and recurring savings
Recurring £1.2m cost reductionRecurring £1.2m cost
reduction
Copyright © Commercial Advantage Services Ltd. 2010. All rights reserved. Confidential and subject to contract.
12 ’Commercial Advantage’, the thumbprint symbol, ‘real results’ in the thumbprint and associated logos are all trademarks of Commercial Advantage Services Ltd.
A few of our references . . .
“We use Commercial Advantage for their strong focus on execution”Martin Glenn, CEO, Birds Eye Iglo Group
“Commercial leadership experts with a bias to action”Mark Greatrex, SVP Still Beverages, The Coca-Cola Company
“They push hard to ensure a plan is built and delivered that will really work”Alex von Behr, SVP Customer Management, Unilever Asia
“Results delivered quicker and to a higher level than we could have delivered in-house”Nick Powell, MD North West Europe, Energizer Group
“They are results driven, pragmatic and challenging”Amanda Cooper, Strategic Customer Development Director, Kimberly-Clark Europe
“CA have helped us raise our ambitions and deliver results through practical steps”Malcolm Swift, President EMEA, McCormick Inc.
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