Sales and Marketing Productivity Team 1 Added Value Analysis TOOL USED IN SALES AND MARKETING PRODUCTIVITY PROJECTS

Sales and Marketing Productivity Team 1

Added Value Analysis

TOOL USED IN SALES AND MARKETING PRODUCTIVITY PROJECTS


The Composition Of The Presentation

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INTRODUCTIONINTRODUCTION


Overview

• What is Added Value Analysis?

• Who is involved?

• Why is AVA effective?

• How is it performed?


What is an AVA?

An Added Value Analysis (AVA) is a systematic observation with the aim of:

• focusing everyone's energy on essential activities

• improving effectiveness of all activities by streamlining decision making and improving accountability

• achieving lasting improvements by eliminating non-essential tasks

• building commitment to ongoing improvement by involving staff in the process


The AVA study is not:

• An attempt to get people to work harder

• A way of getting the same workload done with fewer people

• An attempt to reduce the quality of the work to the detriment of the business

What an AVA is NOT ...


Who is involved?

All relevant Marketing, Sales and Supply Chain functions, i.e.

• Marketing manager

• Product / Brand manager

• Key Account Manager (KAM)

• Supply chain managers

• Any type of supporting function related to Marketing and Sales


Why is an AVA effective?

• The participants generate the improvement idea in conjunction with the team

• It involves all areas in innovative thinking and idea analysis

• The management approval process ensures a fit with long term strategy

• It improves managers' cost awareness of the tasks performed

• It streamlines activities, tailoring the organisation to its workload


Do we know which activitieswe spend our time on?

Why carry out this survey?

30% Knowledge ?

100% Knowledge

Better Decisions can be made

(Prior to Survey) (A full Time & Motion study)

(This Survey)




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How is it performed?

Overview in 4 steps

Preparation with the unit heads Analysis of activities Idea generation Action plan


Preparation with the unit heads

- Meet with the Unit / Department Heads

- Explain how the study is carried out

- Explain the role of the organization and the

expected benefits

- Explain timetable and key dates

- Show examples of results from previous projects

- Show example of documents to be used (ie: AVA form)


Analysis of activities

Preparation phase- Define the areas of the Company to analyse and the

names of people that are going to receive the AVA

- Define the AVA form(s), adapted for the market

- Make the computer ready to input the data once the AVAs are received

- Prepare a cover letter and a sheet with instructions on how to fill out the AVA



AVA collection phase- Send in a close envelope AVAs to participants

- Once AVAs are received verify their correctness

- contact authors to solve compilation errors, if any

AVA collection phase (2nd option)- Gather participants in group sessions

- Explain the AVA during the meeting

- Ask them to compile the AVA during the same meeting



Process AVAs with the computer application- Input AVAs as soon as they are received and validated

- Extract reports from the system to analyse results


Idea generation

Perform Brainstorming sessions to:- Analyse results of AVA

- Generate ideas to improve productivity and eliminate

activities with no value added

- Evaluate cost, benefits, and feasibility of ideas proposed

- Integrate ideas with other proposals coming from the project

Present ideas to management to obtain approval


- Define timetable for implementation considering

also pilot initiatives

- Define resources needed

- Start implementation

Action Plan


Tips ...

• Don't underestimate the time needed

• Test the forms before sending them out by someone from the local Market

• Inform people that no names will be disclosed and that results will be analysed in aggregated form




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Market X: Breakdown of main Brand Management activities

• A third of brand management's time is spent in meetings (28%) and market visits (7%)

• Of the remaining 65%, consumer related activities, new products and sales are the three key activities of Brand Management

28

7.27

11

8.7

14.5

15

8.6

0

20

40

60

80

100 OTHERS

CONSUMERRELATEDACTIVITIES

NPD

STRATEGY

SALES

SUPPLY

CHAIN

MARKETVISITS

MEETINGS


Market X: Consumer related activities

COMMUNI-CATION

3.2%

AGENCY-MEETINGS

6.3%

PROMO-TIONS 4.2%

PR & SPONSOR-

SHIP1.3%

• Involves major activities of planning and implementing communication programs and promotions

• Brand Management spends only 15% of total time on this - hence time spent on each task is low

28

7.27

11

8.7

14.5

15

8.6

0

20

40

60

80

100


• New product development involves 14.5% of brand management time

• However time spent on each specific activity is low

Market X:New product development

TASTING

0.7%

LAUNCH

FOLLOW-UP

1.9% PLANNING &

COORD.

6.5%

LAUNCH PREPA-

RATION

0.9%

INT.

LAUNCH

1.9%

RESEARCH

0.9%

MKT ANALYSIS

1.7%

28

7.27

11

8.7

14.5

15

8.6

0

20

40

60

80

100




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The database

The database

Reporting Tool


Added Value Analysis

TOOL USED IN SALES AND MARKETING PRODUCTIVITY PROJECTS

Documents

Sales and Marketing Productivity Team 1 Added Value Analysis TOOL USED IN SALES AND MARKETING PRODUCTIVITY PROJECTS