12
Service Offerings

Commerical Advantage Services Brochure

Embed Size (px)

Citation preview

Page 1: Commerical Advantage Services Brochure

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

Page 2: Commerical Advantage Services Brochure

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

Page 3: Commerical Advantage Services Brochure

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

Page 4: Commerical Advantage Services Brochure

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

Page 5: Commerical Advantage Services Brochure

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

Page 6: Commerical Advantage Services Brochure

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

Page 7: Commerical Advantage Services Brochure

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.

Page 8: Commerical Advantage Services Brochure

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

Page 9: Commerical Advantage Services Brochure

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

Page 10: Commerical Advantage Services Brochure

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.

Page 11: Commerical Advantage Services Brochure

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

Page 12: Commerical Advantage Services Brochure

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.