Simplify. in the complex world of Price and Promotions Management!

Transcription

1 Alex Suciu

2 Simplify in the complex world of Price and Promotions Management!

3 Some people really love Complications.

4 Grand complications watches.cost a lot Timing complications Astronomical complications Striking complications Simple chronograph Simple calendar Alarm Counter chronograph Quarter repeater Perpetual calendar Split-second flyback Moon phases chronograph Half-quarter repeater Independent second-hand chronograph Five-minute repeater Jumping secondhand chronograph Equation of time Minute repeater Passing strike

5 Did you Know? Patek Philippe Calibre 89 (Sold for $ 5,000,000 ) has 33 complications, using a total of 1728 parts. released in 1989 to commemorate the 150th anniversary of the company. The complications include the date of Easter, sidereal time, and a 2800-star celestial chart. Franck Muller Aeternitas Mega 4. (List price $ 2,200,000 The world's most complicated wristwatch movement It has 36 complications, 25 of them visible, 1483 components and 1000-year calendar. Jaeger LeCoultre The Hybris Mechanica Grande Sonnerie (Price $ 2,500,000) is the world's second most complicated wristwatch. Powered by the Jaeger LeCoultre Calibre 182 movement, with 27 complications and over 1300 parts.

6 TopAgenda Headline Sub Headline Introduction Setting a Common Ground Simplification -Playing the Game TPM & JBP : Process & tools Questions & Answers

7 About me: BORN IN: DRACULA CASTLE

8

9 GROWTH

10 Everybody wants Promotions Top Headline Shoppers Sub Headline I want to spend less Retailers Brands I want to sell more than other retailers Price Promotions The key rule of the game I want to sell more than other brands

11 ...the Industry is offering Top Headline Price Promotions Sub Headline Source: IRI

12 Every.. Counts DROP of Price

13 The thousands & repetitive Chinese drops!

14 Innovation & Promotions intensity

15 Great promotions need CREATIVITY SIMPLICITY

16 Simplification: Playing the Game

17

18 Unilever wants to change the way it works on trade promotions, and has defined ambitious objectives Increase our capabilities and professionalism Be recognized by retailers as leaders in trade promotions management Improve the economic performance of our trade promotions 18

19 Two Key Principles underpin the Professional Promotions Management Process: Effective Promotions Efficient Promotions ( Doing the RIGHT promotions) ( Running promotions RIGHT) Optimized Promotions

20 Simplify with 4 dimensions Process Leadership Technology & tools People hearts & minds

21 Process Promo Intensity (OPSO Macro) Category Promo Strategy (Golden Rules) Promotional Guidelines LEARNINGS PRE evaluation Execution POST evaluation

22 OPSO Roadmap

23 Leadership Consumer Price Promotions (CPP) Efficient Operation Terms (EOT) GSV List price changes OPSO MACRO Promo Intensity CPP plan 1 Strategic Pricing, Other Terms (OT) Max the Mix Impact OPSO Micro ROI Improvement 2 + Business Building Terms (BBT) CPP optimization, OPSO TOOLS Contract re-negotiation and JBPs, TTS management + Mix Management (Channel & Portfolio) 23

24 External insight combined with internal analytics Financials CPP strategic planning OPSO MICRO Q Positive TO, Positive Profit 64m Euro 33% of Spend Negative TO, Profit 24m Euro 13% of Spend Positive TO, negative Profit 104m Euro 54% of Spend OPSO MACRO Tool

25 Technology & tools From over 30 legacy TPM tools Driving faster require better tools To world class 2 TPM Platforms

26 Human behaviour is driven by 2 decision making systems

27 People hearts & minds In store implementation Indonesia Cleaning Fair Carrefour 27

28 How to simplify promotions? Focus only on Key categories Make bigger better Promotions events

29

30 Delivering on World Class vision requires investment in the right tool /suite TPM TPM forms the platform for adding advance capability It is predominantly an execution and payments system BASIC + JBP Joint Business Planning tool and process allows the ability to: Plan events in collaboration with the customer Focus on Trade Profitability + PEA Post Event Analysis provides the ability to: Enable learning / continuous improvements, e.g. identification of effective promotions to repeat and ineffective ones to stop + TPO TPO / Predictive analytics provides the ability to: Perform what if analysis, allowing the field to conduct comparative analysis to enhance overall decision making Use profit based metrics to evaluate and prioritize events ADVANCED

31 Clear benefits are driven by each of four building blocks Value Drivers Creating transparency into trade spending Ensuring financial control over trade spending Enabling accurate sales forecasting and demand planning Granular understanding and dynamic management of customer business plans Improving customer relationship and trade profitability across all brands Scenarios planning Increasing on shelf availability and new product introduction success rates Trade Promotion Management Joint Business Planning Post-Event Analysis Trade Promotion Optimization Making improved decisions based on previous event performance Amplifying effective promotions Stopping ineffective promotions Optimizing how trade funds are spent by : Triangulation of Cannibalization effects Understanding the relative effectiveness of investment options Enabling a better, more fact-based dialogue with customers 31

32 Promoting more and more require Better TPM/JBP tools

33 PPM What's the best promotion? Very Simple Promo: Price reduction Price Reduction & Multibuy e.g. 25% off 3 for 2 BOGOF On-Shelf price announcement feature ONLY + Complex In-Store Price Reduction / Multibuy e.g. 25% off 3 for 2 BOGOF Additional display (e.g. temporary display units, shelf materials, leaflets) + Complex New Product Special Packs e.g. 1+1 banded pack, special 20% extra free pack, on pack coupons, price marked packs, free gifts, gift-sets On-Shelf feature Very complex Promo New Product & In-Store Special Packs e.g. 1+1 banded pack, 20% extra free packs etc Store demonstration, free sampling, temporary display units, competitions, direct mail, emarketing etc

34 System Integrators The partnership process Joint Planning Shared Goals Expert consulting Celebrate Success Review what worked & not Measure against Goals World Class Execution Key Differentiators: Delivery Framework, Rigor, Clarity on R&R, Metrics driven, Commitment from Leadership

35 CD ANALYTICS AND BIG DATA ANALYTICS CAPABILITIES, PRIORITIZED «BIG DATA» Analytic Capabilities Holistic information Digital Analytics Brand Analytics In a cost efficient way Shopper Analytics Trade Promo Analytics GET the Distributors Channel Insight BASICS Right, Merchandising Analytics Integrated and scalable Retail Execution Analytics Sales & Profitability

36 ANALYTICS AND BIG DATA & SPEED TO VALUE Key Data for CD Digital Analytics Brand Analytics Shopper Analytics Digital Analytics Trade Promo Analytics Brand Analytics Shopper Analytics Distributors Channel Insight Trade Promo Analytics Merchandising Analytics Retail Execution Analytics Sales & Profitability Distributors Channel Insight Merchandising Analytics Retail Execution Analytics

37 OPSO - Promotions management to drive the Global Blueprint Implement everywhere OPSO Repeatable Model OPSO Country Readiness & 2015 Improvement Action plans Promo management KPI :ROI improvement on Promo Investment 37

38 Professional Promo Process Continuous Improvement Opportunities Key Activities: CREATE Create high level promo strategy Align with CVA Customer/channel matrix Craft/revise promo guidelines BUDGET OPSO Macro analysis informs budget setting Budget assigned and revised dynamically by category/channel PLAN Compile Company Promo Calendar Review & sign off promo plans Integration with S&OP process GUIDELINES PREPARE Pre-evaluation of promotions Agree promo event details with customer Initiate specific promo events into internal process EXECUTE Execute plan and monitor Manage payments and accruals EVALUATE Track promo performance Compare pre vs post promo performance Update budgets and forecast to target LEARN Europe Close gaps in promo strategy & guidelines on some categories Develop systematic use of OPSO Macro Clear Promo calendars and plan sign off Increase Pre-evaluation levels where <50% Clear promo execution plans Increase comparison of pre vs post evaluations Generate learnings Convert learnings to actions Feedback into promo planning/guidelines Improve visibility of learnings cross functions

39 Prepare for the future & Simplify

40 Simplify Just because something is simple, does not mean that it must have limited functionality. Simplicity has many benefits, including: Better design faster integration Easier demonstration quicker sale Cooler esthetics greater attraction Speedier education rapid adaptation Increased reliability happier users

41 Going from here to here is HARD

42 Smaller steps are manageable And, small incremental improvements, lead to big changes over time

43 Dave Brailsford Performance Director of UK Cycling No British cyclist had ever won the Tour de France. Brailsford was asked to change this.

44 WHAT : To win the Tour de France in 5 Years HOW : Through a process of Marginal Gains

45 He was wrong. They did it in 2.5 years Bradley Wiggins won the 2012 Tour de France

46 The GB team won 70% of available Gold Medals at London 2012 Olympics

47 On 2013, Chris Froome won the Tour de France

48 THE ENVIRONMENT IS CHANGING We need to adapt to the changing environment in order to grow Channels are blurring. Technology is developing (connected shopper). Retail competition is fiercer than ever before. We need do different things in order to win in this environment.

49 Thank You! Questions?