Omicus. Introduction

Transcription

1 Omicus Introduction

2 What is Omicus? International expansion A trusted partner to lead business expansion and grow market share in international markets. US market development A trusted partner to open the US market and launch, establish and grow client brands.

3 What We Do Omicus serves as a strategic partner to lead and manage international and US sales growth. We partner with clients from initial market assessment through product launch, growth, stabilization and beyond. Our process generally includes: Conducting market and category assessment and prioritization, resulting in a tailored strategic plan for international expansion or US market entry and expansion, as appropriate. Developing a cross-functional operational plan across Sales, Marketing, Product Supply, Regulatory, Legal, Finance, HR and R&D. Identifying, interviewing, appointing, and negotiating terms with strategic local business partners including distributors, brokers, marketing agencies and country consultants, leveraging Omicus network of trusted business partners where relevant. Coordinating work related to regulatory, legal and global trade compliance. Drafting and executing a detailed launch plan for each country, resulting in a timely and successful product launch. Managing ongoing operations to maximize net income.

4 What We Do Work areas Omicus A Omicus B Omicus Leads Strategy, Plan and P&L Business Partners Regulatory Compliance Commercial Plans Ongoing Operational Management Corporate exports strategy/plan/p&l Country category assessment Execute category assessment as required. Country business P&L Distributors Marketing Agency Regulatory and Global Trade Compliance Launch Plans Marketing planning and execution. Ongoing sales, marketing and business planning in a country Retailer engagement Distributor engagement and management As an invitee, or permanent member, of the business/functional leadership team of the client, Omicus leads the development of an exports strategy (within the overall umbrella of business strategy), business plan, and projected P&L. Develop a country business plan and estimate revenue, margins, expenses, and net profit. Monitor ongoing plans and provide updated forecasts. Identify potential distributors either from existing network or through a thorough mapping process conducted by Omicus. Negotiate best terms and work with legal (and other functions) to enter into a suitable agreement. Identify and appoint marketing agency and provide leadership for developing and executing marketing strategy with client team. Appoint regulatory/gtc agency and lead work on regulatory compliance. Lead the development of a comprehensive launch plan with distributors, marketing agency and client team. Monitor its execution. Lead coordination with marketing agency to develop and implement marketing creatives aligned to client brand guidelines. Lead a cadence of activities to support delivery of targeted business results and monitor local execution. Lead retailer engagement activities. Support distributor in getting products listed at best possible terms and in joint business planning with retailers. Meet large and small retailers frequently to act on local insights. Lead joint service planning process with distributor. Ensure compliance with agreement terms. Ensure timely orders aligned to plans and market needs. KPIs and Data Provide leadership for obtaining data analytics to monitor required KPIs.

5 How We Do It 1. Understand 2. Strategize We first understand our clients business and operational needs, brand strength, and consumer value proposition in the home market. We tailor our unique framework to develop an operational strategy for specific client business needs and seek alignment with clients. 3. Execute 4. Manage We execute through cross functional teams which can either come from client organizations or we can use our own resources. Sustainable sales growth is more than just appointing local distributors. We manage ongoing business operations to ensure that new markets generate net income that meet P&L targets.

6 Our Leadership Extensive international experience with Colgate-Palmolive and Unilever. Anurag Kumar, President Founded and led Omicus Consulting Recruited to Clorox, a former client, to lead business-unit teams with increasing scope from country head to regional head to global head with full P&L accountability Re-launched Omicus to add value to clients in an area of expertise driving growth through international expansion.

7 Anurag Kumar is the President of Omicus LLC. A global leader with a strong international network, he has over 25 years of experience across 40 countries spanning the personal care, home care, food and beverages, pet food and other pet products, and small appliance industries. His global experience includes work with Colgate- Palmolive, Unilever, and Clorox. He is recognized as a subject matter expert in international expansion and business management through distributors. Anurag Kumar, President Most recently, Anurag served as the global business head for Clorox Exports Business, a business unit he founded and profitably managed within Clorox to open new countries for Clorox s brands. Prior to this intrapreneurial venture, Anurag led business operations as General Manager Mexico and then North Latin America, a regional business unit formed by merging Mexico, Central America and the Caribbean business units. Anurag has served on global and international sales leadership teams at Colgate-Palmolive and Clorox, has developed and executed go-to-market strategies, and provided operational leadership to international, regional, and country sales and commercial teams. Anurag has also served as the sales head for business operations in Asia, Middle East, and Africa, and provided global leadership for sales through distributors. Anurag has conceived, developed and led the global implementation of multiple capability-enhancing initiatives. At Colgate-Palmolive, Anurag developed, executed, and led a global sales strategy to build organizational capability to conduct business through distributors, for which he received the Chairman s You Can Make a Difference award. Drawing from his diverse strategic and operational global experiences, Anurag founded Omicus LLC to partner with organizations to maximize their growth potential in markets outside their home countries without large overheads. Omicus is committed to helping organizations build scalable, sustainable, and profitable global brands through international expansion.

8 Our Mission Clients To enable organizations to maximize their growth potential in markets outside of their home countries, profitably, sustainably and without huge overheads. Team To give our employees and partners a great co-working environment. Consumers To bring to consumers anywhere in the world valueadded products that enhance the quality of their everyday life.

9 Our Vision To be our clients partner of choice for scalable, sustainable and profitable brand-building across international and US markets

10 Our Values Build Connections Commit to Growth Problem-Solve by Innovating Invest in People Nurture long-term, trusting relationships Build scalable, sustainable, and profitable businesses by doing the right things with integrity Seek innovative solutions to client issues Create opportunities for career growth, continuous learning, and personal development

11 Our Clients Are diverse Organizations of all sizes and maturities, largely across the consumer products (FMCG/CPG), pet products, small appliances, small tools and equipment industries. expanding exploring Organizations who have a small international presence but wish to expand their business to new countries. This also includes Private Equity aiming for high growth through international expansion for portfolio companies. Organizations who do not have an international presence, and wish to test markets by leveraging the services of an external team of experts.

12 Partnering With Omicus

13 Our Focus Countries Focus countries are markets where we already have a business infrastructure and a network of business partners who can be readily deployed for client work. Current focus countries include: Asia: India, Japan, Korea, China, Sri Lanka Latin America: Brazil, Chile, Mexico North America: USA, Canada Africa: Kenya We also work to expand sales in all other countries. Such countries may require additional initial time compared to focus countries to establish the necessary business infrastructure to deliver sustainable growth.

14 Global and Local Team Omicus Local Team To ensure country-level execution, Omicus assembles a team on the ground comprising individuals with extensive local experience. Omicus Global Team Omicus centrally-located team provides clients with a single point of contact, functional expertise, and support to the local team.

15 Our Edge 1. Concept + Implementation We provide a valuable combination of strategy and execution, stemming from our deep experience in managing distributors and opening and managing international markets by creating effective models for short and long term business growth. 2. Full P&L Management We have strong experience in managing full P&L and leading companies to profitable growth. 3. Our Infrastructure 4. Our Values We provide tried-and-tested commercial infrastructure in several countries, which we continually upgrade. Our values build connections, commit to growth, problem-solve by innovating, and invest in people drive all that we do.

16 Illustrative Case Study Omicus edge is bringing in strong operational expertise to profitably open international markets. Our experience has validated that a few key principles underlie most cases of profitable and sustainable international expansion: building brands, low overheads, and pay-as-you-earn support. We have developed a model based on these principles to deliver profitable and sustainable business starting in the first year of expansion, with continued growth in the months and years to come. Omicus LLC seeks to drive international expansion, consistent with these principles and our core values, for companies who wish to strategically expand their international footprint. Client organizations may wish to adopt these principles for their international expansion as well, as they understand that opportunistic exports* have limited potential to deliver sustainable revenue growth. In the slides ahead, we present an illustrative case study on what an Omicus partnership may look like to open and expand a new country for your organization. It is a real-life case though identities have been anonymized, and some information modified for privacy *Please see addendum for difference between Brand-building Exports and Opportunistic Exports.

17 CASE STUDY Background and Challenge Poseidon, a mid-size global consumer goods company, had employed an opportunistic exports model for a large country for seven years, yet annual sales had stagnated at less than $0.3M with a negligible share of market. Poseidon s engagement with and support to the business in this country was minimal. The company never advertised; neither did the distributor. Poseidon's strategy was to give a substantial discount to the distributor in the hope that it would build brands, which did not happen. Instead, without meaningful engagement from Poseidon, the distributor did what they felt was best: attempt to increase sales by ordering more SKUs from Poseidon. This turned out to be largely a zero-sum game, with new SKUs cannibalizing the sales of existing SKUs. As a result, Poseidon had over 40 SKUs in the market with some bringing in less than $5000 a year. The distribution was negligible at under a thousand stores in a country where the universe of relevant stores was around 50,000. Poseidon, seeking accelerated growth for its international business, decided to change strategy to leverage the potential of consumers in this country. However, it did not want to make large upfront investments in this country, since these would be a drain on its overall international business. Key Challenge: Drive share of market gains for Poseidon s brands, in competitive categories, without significant upfront investment.

18 CASE STUDY The Solution The group engaged by Poseidon to drive growth in the country took the following actions: Solution Elements Build-Brands Low overheads Appointed a new distributor, focused on brand-building, by conducting a low-cost effective mapping exercise. Distributor selection and negotiations were conducted by individuals with this specific expertise. Developed a unique value-proposition for key SKUs keeping local realities in consideration and conducted low-cost consumer research to validate value propositions. Pay-as-youearn Low upfront investment Developed a plan to implement a cadence of support for each product in the market. Appointed a local marketing agency with capability to launch products without large upfront investments. Developed an effective launch plan together with the distributor and local partners, including retailer engagement, and launched the products as per the plan. N/A Monitored plan implementation with the help of KPIs and took actions as needed to drive growth. Ensured that all regulatory requirements were met. N/A. Meeting regulatory requirements supercedes other considerations Overall Intervention

19 CASE STUDY The Outcome Financial: Achieved $1.2MM sales at gross margin higher than goal in the first four months after adopting the new model. Operational: Market share increased up to 5% in some stores within two months of availability. More than 10,000 stores brought under coverage. Information systems established for data-driven intervention. Through instore execution of consumer communication elements, Poseidon s brands started looking like leaders. These outcomes met Poseidon leadership s key requirement: be profitable from the start.

20 If your organization seeks business growth through international expansion, but does not have an available team of experts to drive this growth, get in touch with Omicus your external team of experts Omicus LLC 300 Carnegie Center, Suite 150 Princeton, NJ USA

21 Addendum

22 Why International Expansion? Most organizations with a strong international presence have an easier time riding out fluctuations in local economies and are more likely to stay in business More than 70% of the world s purchasing power is located outside of the United States International expansion presents a huge opportunity for growth and business stability for organizations based anywhere in the world Source: US Commercial Service, International Trade Administration; US Dept. of Commerce, Small Business Administration

23 Why Expand to the US? With 30% of global purchasing power, the USA is the single largest market for many product categories. The USA features the highest levels of household disposable income which boost the capacity for discretionary spending of US households. For manufacturers not currently selling into the US market, a small share of market can represent substantial growth. Source: US Commercial Service, International Trade Administration; US Dept. of Commerce, Small Business Administration

24 Premium Products

25 Premium Products Clients are often concerned about ocean freight and import duties, which may make exported products much more expensive than locally available ones. However, premium products with a strong consumer value proposition have a huge opportunity across the world. For example, AC Nielsen conducted research on premiumization in 2016 and found that: Consumers are looking for a taste of the good life. Premium segments are outpacing total category sales in most markets with strong potential for continued growth. Consumers aren t just trading up on big ticket purchases; they are also going premium on everyday items. Consumers buy premium products for both rational and emotional reasons. The latter resonate more strongly in emerging markets where aspirations for status and accomplishment are high. Source: AC Nielsen Premiumization study, December 2016

26 Premium Products are about the experience make consumers Are feel good With increasing affluence, consumers are craving products that offer a total experience 52% percent of global respondents somewhat or strongly agree that buying premium products makes them feel good. are a worldwide trend Premiumization isn t just a developing market trend. In the U.S. and several European markets, the growth of premium products outpaced total growth. are driving innovation in the CPG space The availability of new/innovative brands is also fueling growth in the premium segment, as fresh offerings can bring excitement and increased marketing spend to a category. Source: AC Nielsen Premiumization study, December 2016

27 Distributor Appointment

28 Distributor Appointment Not Adequate in Itself It is a common misconception that international expansion primarily involves appointing country distributors. While appointing distributors is no doubt an important step, in most cases this alone does not deliver sustainable revenue growth. In our experience, organizations often appoint a distributor in a country and hope that the business will grow to potential. However, they often find that after product launch, revenue growth is sluggish and sub-optimal. In many cases, after some years, the organizations see revenue declines.

29 Growing business is much more than appointing a distributor Distributor capabilities Effective inputs Good business results Distributors bring in many, but in most cases, not all the capabilities required to build a business. The work of a distributor needs to be supplemented by effective and adequate inputs from manufacturers (or their partners) An optimal combination of a good distributor and effective leadership by manufacturers/partners is essential for business performance. Manufacturers who do not have an available team of experts to effectively drive international expansion need the services of an external team of experts like Omicus

30 Opportunistic Exports Vs. Brand-Building Exports Opportunistic Exports No brand-building investment by brand owner. Brand owner not involved with consumer communication/sales planning/retailer engagement. Infrequent visits by brand-owner to the country. Distributor does not have brand building capability. Low levels of distribution and share of market Usually, stagnant or declining sales. In some cases, a relatively low rate of sales growth compared to category in the country Brand-Building Exports Brand building investment managed by brand owner. Brand owner involved in consumer communication/sales planning and retailer engagement. Frequent visits to country by brand owner (either own employees or Omicus). In most cases, presence in the country either through own small team or through a contracted team like Omicus Distributor focused on driving distribution and instore execution. Steadily rising distribution, share of market and sales. Look and feel in the market is similar to markets in which other brand-owners have their own team on the ground.

31 Omicus LLC 300 Carnegie Center, Suite 150 Princeton, NJ USA