Moving Beyond Building Blocks to Achieve Sustainable TPM/TPE to Win in a Global Marketplace

Transcription

1 Moving Beyond Building Blocks to Achieve Sustainable TPM/TPE to Win in a Global Marketplace May 12, The LEGO Group l [Insert Date, Version, Document Owner, Total Page Number]

2 Presenters Lars Haldborg Thomsen Global project lead Søren Søndergaard Andersen Global business lead Promotion Effectiveness 2

3 Session Objectives Introduction to the LEGO Company Industry conditions and our Global Customer Planning Solution Immediate wins and biggest challenges from a promotion planning perspective Questions and Dialogue 3

4 The LEGO Group

5 At a Glance Danish family owned 14, ,578 million 33,9% employees End 2014 turnover 2014 operating margin Sold in more than Our global footprint 10 years of consecutivegr owth 140 countries Figures per ultimo The LEGO Group Brand #

6 System in play Many Product Lines One LEGO Brick One Brand One Logo The LEGO Group Brand #

7 LEGO DUPLO The LEGO Group Brand #

8 LEGO Juniors The LEGO Group Brand #

9 LEGO City The LEGO Group Brand #

10 LEGO Chima The LEGO Group Brand #

11 LEGO Technic The LEGO Group Brand #

12 LEGO Creator Expert The LEGO Group Brand #

13 LEGO Friends The LEGO Group Brand #

14 Global Customer Planning

15 The situation that has driven us to establish a Customer Planning Platform Company Growth Trade spend is a major cost driver Flat toy market Retail Partner-ship Need for Transparency The LEGO Group

16 There are 4 main factors in the toy industry that effect our TPM/TPE journey % of total annual CS SEASONALITY RETAIL Consumer Sales NOVELTY-DRIVEN 60% 0 Jan Feb Mar Apr Maj Jun Jul Aug Sep Okt Nov Dec ~50% of consumer sales happen in Q4 >60% of turnover in a given year from novelties 3000 STAGNATION FRAGMENTATION '08 '09 '10 '11 '12 '13 Traditional toys are flat in most western markets e.g., UK 0.2% CAGR No. of retailers generating 80% turnover The LEGO Group

17 The answer to some of our key challenges is a new Global Customer Planning System (GCPS) OBJECTIVES SOLUTION 1 Strengthen relations with trade partners Global Customer Planning Solution 2 3 Increase accuracy of forecast Increase transparency of trade spend and improve ROI Integrating Customer Planning with: Financial Planning Brand and Marketing Planning Demand & Supply Planning The LEGO Group

18 Triangulation brings Trade, Demand and Brand plans together in the S&OP process Consensus (S&OP) Closed Loop process GWP promotion: Price off promotion Trade Brand Demand The LEGO Group

19 We secured funding and commitment to a 5-year program to build GCPS Phase 1 (2012/13) 9 months Build the Foundational Concept Phase 2 (2013/14) 18 months Build the Basics (Pilot-UK) Phase 3 ( ) 24 months Expand and Rollout US, CA Central- and Northern Europe Eastern Europe We are here! The LEGO Group

20 The Closed Loop process builds continues improvement into the Customer Planning process Create How did my promotions perform? Track Actuals Against Plan How much have I spend of my trade funds? Evaluate Promoti on Effective ness BU Business Plan and Go-to- Market Plan Evaluate Plan Authoriz e Payment s / Move Products Execute Sell-in and Negotiat e Custom er Business Plans Develop Financial Targets and Allocate Funds Create Tactical Plans and Events What is my investment plan? GWP promotion: Price off promotion What activities do I plan with my Account?

21 Financial Planning Promotion Planning Execution Effectiveness Reporting

22 Financial Planning Promotion Planning Plan Execution Effectiveness Reporting Evalu ate Execu te

23 Training and Change Management has been significant deliveries, to realize benefits for many stakeholders

24 Wins and Challenges

25 Our core objectives with the project Provide insights and tracking on trade promotions Improve integration of promotion planning to demand planning Improve process efficiencies by reducing non-value adding activities 25

26 Learnings The Immediate WINS 26

27 Learnings The biggest Challenges Process Alignment 27

28 Our ability to predict the future 28 GCPS

29 Our ability to track trade promotions 29 GCPS

30 Session Objectives Introduction to the LEGO Company Industry conditions and our Global Customer Planning Solution Immediate wins and biggest challenges from a promotion planning perspective Questions and Dialogue 30

31 Questions for Inspiration What drives consumer sales uplift in an Omnichannel environment, and how do you manage? How do you track and set directions on Return On Investments (ROI) vs Return On Objectives (ROO)? Your questions?? The LEGO Group

32 Everything is Awesome