The added value of Trade Danone. François Bruch 13th March 2014

Transcription

1 The added value of Trade Danone François Bruch 13th March 2014

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3 How is Danone organized to maximize selling out with retailers?

4 Organization before 2013 Marketing Customer/Trade Marketing Sales (KAM-Field) Consumer & shopper Brand Innovation & portfolio Mgt Promo Shopper Category Shelf Customer SPOC Nego

5 Transformed organization Marketing Customer/Trade Marketing Sales (KAM-Field) Consumer Brand Innovation Shopper Category Shelf Portfolio Mgt Promo Customer Excellence in Execution Nego

6 Challenges / barriers S.P.O.C.

7 Key success factors/learnings BOARD COMMITMENT IMPACT CROSS FUNCTIONAL APPROACH Binomes with Marketeers with KAM s INTERNAL PROJECTS CUSTOMER PROJECTS

8 What is the philosophy of Danone to win at the moment of purchase?

9 Who buys Fresh Dairy Products?

10 Who buys Fresh Dairy Products? 98 % of Belgium's households consumes FDP at least once a year. Shoppers buy FDP less than once a week, and most of the time just 1 product. They spend less than 1 minute in the FDP shelf. 81% of FDP purchases are pre-planned. 73% of shoppers claim they knew exactly the product, the brand, the flavor they intended to buy. Source: Shopper Study TNS 2011

11 Who buys Fresh Dairy Products? 85% of shoppers are looking at the freshness of FDP products 33% is searching for the best date Current category display is restricting explorative behaviour hence impulse buying Source: Shopper Study TNS 2011 Only 64% of shoppers consider that the new products stand-out on-shelf (56% for promotions)

12 How to the moment of purchase? The highway towards shopper dream store

13 What is Optima? A way of working based on a deep understanding of the shopper behavior engaging all partners of Danone & the Customer (Danone: Customer Marketing, KAM, Logistic, Field force) (Customer: Catman, Buyer, Logistic, Store Manager, Regional, ) in order to grow the total category thanks to a higher shopper satisfaction.

14 The OPTIMA pyramid Guarantee promos/ innos visibility Golden rules Guarantee the presence of products with a good freshness To have the SKUs at the right place To have the right SKUs To have the right number of SKUs OSA/Freshness Merchandising TSP # SKU To have the right space repartition by segment To have the right shelf size SOS /M OBJECTIVE KPI

15 The OPTIMA pyramid Guarantee promos/ innos visibility Golden rules Guarantee the presence of products with a good freshness To have the SKUs at the right place To have the right SKUs To have the right number of SKUs OSA/Freshness Merchandising TSP # SKU To have the right space repartition by segment To have the right shelf size SOS /M OBJECTIVE KPI

16 To have the right shelf size Objective: To define the optimal FDP shelf size for a store.

17 To have the right shelf size KPI= /M Turnover(total FDP) per developed meter Measures the number of units sold per facing / M too big Shelf too small Out Of Stocks / M too small Shelf too big Poor freshness Emptiness perception 21% Consequence: Lost of Turnover

18 To have the right number of SKU s What does the shopper says? All these colours I feel lost I always go for the product I am looking for, without watching others I always buy a product in the FDP shelf. Always the same I can t see any innovations in the shelf. They are not impactful

19 To have the right number of SKU s KPI = Number of SKUs in an available space Measures that each product has an optimal visibility. If too much SKUs 45% Poor visibility per product Shopper can t find his product = poor choice perception. If not enough SKUs Lost opportunity to offer a larger choice without affecting visibility. Consequence: Lost of Turnover

20 Barriers & challenges The more space I have, the more I sell Buyer The more sku s I have, the more I sell If generated /m in my shelf is too low, I should add more refs to boost my turnover If I reduce my UF shelf, which category should I enlarge? enlarge reduce Mrs Dupont comes each week & buys this specific product

21 Sales results are much better if you work on shelf size & # SKU s Guarantee promos/ innos visibility Golden rules +1% Guarantee the presence of products with a good freshness To have the SKUs at the right place To have the right SKUs To have the right number of SKUs OSA/Freshness Merchandising TSP # SKU +1,8% +1,8% To have the right space repartition by segment To have the right shelf size SOS /M GAIN* OBJECTIVE KPI * Average observed on a sample of test stores

22 The OPTIMA pyramid Guarantee promos/ innos visibility Golden rules Guarantee the presence of products with a good freshness To have the SKUs at the right place To have the right SKUs To have the right number of SKUs OSA/Freshness Merchandising TSP # SKU To have the right space repartition by segment To have the right shelf size SOS /M OBJECTIVE KPI

23 The OPTIMA pyramid Guarantee promos/ innos visibility Golden rules Guarantee the presence of products with a good freshness To have the SKUs at the right place To have the right SKUs To have the right number of SKUs OSA/Freshness Merchandising TSP # SKU To have the right space repartition by segment To have the right shelf size SOS /M OBJECTIVE KPI

24 Guarantee the presence of products with a good freshness Choice, Availability, Freshness, that s all I want Source: Shopper Study TNS 2011

25 Guarantee the presence of products with a good freshness KPI = On Shelf Availability (OSA) and Freshness:

26 Guarantee the presence of products with a good freshness On Shelf Availability (OSA) Freshness Avg Sales Base = Impact of freshness on sales evolution Days of Freshness 47% lost sales for retailer when product is not available Lower shelflife is lower sales

27 Guarantee the presence of products with a good freshness Growth of turnover thanks to collaboration on OSA and freshness +4,5% 9%

28 The OPTIMA pyramid Guarantee promos/ innos visibility Golden rules Guarantee the presence of products with a good freshness To have the SKUs at the right place To have the right SKUs To have the right number of SKUs OSA/Freshness Merchandising TSP # SKU To have the right space repartition by segment To have the right shelf size SOS /M OBJECTIVE KPI

29 Excellence in execution packaging & POS Material : Virtual store

30 Excellence in execution packaging & POS Material : Virtual store

31 Excellence in execution packaging & POS Material : Virtual store

32 Define clear promo roles Strategic alignment with brand strategy on the role of promotion Different mechanics according to the role. Different KPI s for evaluation according to the role.

33 Optimize promo efficiency & re-invest in alternative tools Targeted approach (CRM) Danone Mother brand Penetration of innovations

34 Penetration of innovations Massive sampling

35 Baseline Retailer 1: +40% (Baseline sales OM-Retailer 1: -1,2%) Sampling free products Promo s 8,8k average sales 12,5k average sales Source : Nielsen Value

36 Conclusion : the OPTIMAL Store Guarantee promos/ innos visibility Golden rules Guarantee the presence of products with a good freshness To have the SKUs at the right place To have the right SKUs To have the right number of SKUs OSA/Freshness Merchandising TSP # SKU To have the right space repartition by segment To have the right shelf size SOS /M OBJECTIVE KPI

37 Thank you