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MEI Computer Technology Group Inc.
THURSDAY, FEBRUARY 10
GAIN CONTROL OF TRADE SPENDING IN THE FACE OF RISING PRICES
Meet the Experts
Presenter Joel Cartwright Director Pre-Sales Consulting MEI Computer Technology Group Moderator Rob Whynot Senior Project Manager MEI Computer Technology Group
Agenda
Who is MEI
The State of the Market
How Commodity Crunch is Affecting CPG
What You Can Do
Q&A
Who is MEI?
A leading developer of trade promotion
management software for the Consumer Packaged
Goods (CPG) industry
Offers a complete and proven solution that enables consumer packaged goods CPG companies to successfully plan, execute and analyze all aspects of the trade promotion management cycle
Established in 1983
Client base is made up 50 clients ranging
from $30M to $3B in sales
State of the Market
CPG
Grocers achieved growth as
consumers traded down; foodservice
felt the pinch
Commodity prices driving food inflation
Economy-weary consumers face price increases
following times of aggressive promotion
Consolidation opportunities
rising within retail and
manufacturing
Poll Question
State of the Market
http://www.warc.com/LatestNews/News/Promotions_lose_favour.news?ID=27833
State of the Market
http://www.bloomberg.com/markets/commodities/futures/
How It Affects CPG
What You Can Do
Price Increase Needs & Deliverables
• Corporate Finance Responsibility － Understanding the impact to plan. － Allocation of funding for price protection － Standardization with Key pricing indicators
• Sales Operations － Plan for category sensitive pricing － Review risks and gaps to plan, and forecasts － Forecast accuracy metric
• Field Sales － Review planning and identify volume loss going over pricing
thresholds － Adhere to price in crease KPI in the category － Review customer pricing compliance
Trade Reduction v. Price increase
• Contribution & Its Impact to the Bottom-Line － Sales operations management － Annual planning of event activity － Standard quarterly review
• Rich Mix & Ability to Co-Promote － Co-promotion of Margin Rich items － Negotiation on price points or non- rich mix items － KPI adherence on non rich mix items, “Penny Profit”
Topline Impact vs. Bottom-line Maintenance
• Price increase planning individual Customer P&L － Comparing the corporate planning P&L to the
live customer P&L to look for gaps and opportunities － Sharing the customer P&L across the organization － Mid Year trade deployment based on customer profitability
To Lead or Follow
Poll Question
Adjust the Sales Objectives
• Understanding a price increase & the deliverable to the S&OP • Adjusting spending & accrual objectives after a price increase
• Comparatives to RPC spending, margin and price point
What to Do Next?
• It’s all in the details
• One plan in one place
Key Takeaways
Understanding the Impact to the Plan
Understanding the Impact to Contribution
Accruals & P&L
Objectives & the Plan
Leverage Technology
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Q&A
Contact Information
Presenter Joel Cartwright Director Pre-Sales Consulting jcartwright@meicpg.com Moderator Rob Whynot Senior Project Manager rwhynot@meicpg.com
CPG Online Learning Series
Upcoming Events
• How to Build Your Business to Get It Sold February 23, 2011
• Don't Cell Yourself Short March 16, 2011
To register, visit http://www.meicpg.com/news/webinars
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