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Alex Suciu
Simplifyin the complex world
of Priceand
Promotions Management!
Some peoplereally
loveComplications.
“Grand complications” watches …….cost a lot
Timingcomplications
Astronomicalcomplications
Strikingcomplications
Simple chronograph Simple calendar Alarm
Counterchronograph Perpetual calendar Quarter repeater
Split-second flybackchronograph Moon phases Half-quarter
repeater
Independentsecond-handchronograph
Equation of time Five-minuterepeater
Jumping second-hand chronograph Minute repeater
Passing strike
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.
Did you Know ?
Franck Muller Aeternitas Mega 4 . (List price $ 2,200,000)The world's most complicated wristwatch movementIt 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.
Top HeadlineSub Headline
Agenda
Introduction
Setting a Common Ground
Simplification -Playing the Game
TPM & JBP : Process & tools
Questions & Answers
About me:DRACULACASTLE
BORN IN:
GROWTH
Top HeadlineSub Headline
Everybody wants Promotions
Retailers“I want to sell more
than other retailers”
Shoppers“I want to spend less”
Brands“I want to sell morethan other brands”
Price PromotionsThe key rule of
the game
Top HeadlineSub Headline
...the Industry is offeringPrice Promotions
Source: IRI
Every…….. “DROP of Price”
Counts
The thousands &repetitive
“Chinese drops”!
Innovation
&
Promotions intensity
SIMPLICITYCREATIVITY
Great promotions need
Simplification: Playing the Game
18
• Increase our capabilities andprofessionalism
• Be recognized by retailers as leaders intrade promotions management
• Improve the economic performance of ourtrade promotions
Unilever wants to change the way it works on tradepromotions, and has defined ambitious objectives
Two Key Principles underpin theProfessional Promotions ManagementProcess:
EffectivePromotions( Doing the RIGHT
promotions)
EfficientPromotions
( Runningpromotions RIGHT)
OptimizedPromotions
Process
Leadership
Technology & tools
People hearts & minds
Simplify with 4 dimensions
Promo Intensity(OPSO Macro)
Category PromoStrategy
(Golden Rules)
PromotionalGuidelines
PRE evaluation
Execution
POST evaluation
LEARNINGS
Process
OPSO Roadmap
EfficientOperation
Terms(EOT)
Consumer PricePromotions (CPP)
OtherTerms(OT)
BusinessBuildingTerms(BBT)
GSVList pricechanges
OPSO MACROPromo Intensity
CPP plan
OPSO MicroROI
Improvement
Max the MixImpact
Contract re-negotiation andJBPs , TTS management
CPP optimization,OPSO TOOLS
Strategic Pricing, + + + Mix Management(Channel & Portfolio)
1 2 3 4
23
Leadership
External insight combined with internal analytics
Positive TO, Positive Profit
Negative TO, Profit Positive TO, negative Profit
Q1 2011
13% of Spend
64m Euro33% of Spend
104m Euro54% of Spend
24m Euro
OPSO MICRO
Financials –CPP strategic planning OPSO MACRO Tool
To world class2 TPM Platforms
From over 30legacy TPM tools
Driving fasterrequire better toolsTechnology & tools
Human behaviour is driven by 2 decision making systems
27In store implementation Indonesia Cleaning Fair – Carrefour
People hearts & minds
How to simplify promotions ?
Focus only on Keycategories
Make bigger betterPromotions events
Delivering on World Class vision requires investment in the right tool /suite
TPM PEA TPOJBP TPM forms the
platform for addingadvance capability– It is
predominantly anexecution andpayments system
Post Event Analysisprovides the abilityto:– Enable learning /
continuousimprovements,e.g. identificationof effectivepromotions torepeat andineffective onesto stop
TPO / Predictiveanalytics provides theability to:– Perform “what if”
analysis, allowingthe field to conductcomparative analysisto enhance overalldecision making
– Use profit basedmetrics to evaluateand prioritize events
Joint BusinessPlanning tool andprocess allows theability to:– Plan events in
collaboration withthe customer
– Focus on TradeProfitability
BASIC ADVANCED
+ + +
31
Value Drivers
Joint BusinessPlanning
Trade PromotionManagement
Post-EventAnalysis
Trade PromotionOptimization
• Creating transparency into trade spending• Ensuring financial control over trade spending• Enabling accurate sales forecasting and demand planning
• Making improved decisions based on previous event performanceAmplifying effective promotionsStopping ineffective promotions
• Optimizing how trade funds are spent by :• Triangulation of Cannibalization effects
Understanding the relative effectiveness of investment optionsEnabling a better, more fact-based dialogue with customers
Clear benefits are driven by each of four building blocks
• 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
Promoting more and morerequire Better TPM/JBP tools
Very Simple Promo:Price reduction
+ ComplexIn-Store
Very complex PromoNew Product & In-Store
+ ComplexNew Product
Price Reduction& Multibuy
e.g. 25% off3 for 2
BOGOF
On-Shelf priceannouncementfeature ONLY
Price Reduction /Multibuy
e.g. 25% off3 for 2
BOGOFAdditional display(e.g. temporary
display units, shelfmaterials, leaflets)
Special Packs
e.g. 1+1 bandedpack, special 20%
extra free pack,on pack coupons,
price markedpacks, free gifts,
gift-sets
On-Shelf feature
Special Packse.g. 1+1 bandedpack, 20% extrafree packs etc
Storedemonstration,free sampling,
temporary displayunits,
competitions,direct mail, e-marketing etc
What's the best promotion ?PPM
System Integrators The partnership process
Joint Planning Shared Goals Expert consulting
Review – whatworked & not
Measure against Goals World ClassExecution
Celebrate Success
Key Differentiators:Delivery Framework, Rigor, Clarity on R&R, Metrics driven, Commitment from Leadership
CD ANALYTICS AND BIG DATA ANALYTICS CAPABILITIES, PRIORITIZED
«BIG DATA»
DigitalAnalytics
MerchandisingAnalytics
BrandAnalytics
ShopperAnalytics
Retail Execution Analytics
Trade Promo Analytics
DistributorsChannel Insight
Sales& Profitability
Analytic Capabilities
GET the
BASICS
Right ,
Integrated
and scalable
Holistic
information
In a cost
efficient way
ANALYTICS AND BIG DATA & SPEED TO VALUE
Key Data for CD
DigitalAnalytics
MerchandisingAnalytics
BrandAnalytics
ShopperAnalytics
Retail ExecutionAnalytics
Trade PromoAnalytics
DistributorsChannel Insight
Sales& Profitability
DigitalAnalytics
MerchandisingAnalytics
BrandAnalytics
ShopperAnalytics
Retail ExecutionAnalytics
Trade PromoAnalytics
DistributorsChannel Insight
37
OPSO - Promotions management to drivethe Global Blueprint
Promomanagement
Implement everywhereOPSO Repeatable Model
OPSO Country Readiness &2015 Improvement Action plans
KPI :ROI improvementon Promo Investment
Professional Promo Process Continuous Improvement -Opportunities
Key Activities: Europe
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
GUIDELINES Integration with S&OP process
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 Generate learnings
Convert learnings to actions
Feedback into promo planning/guidelines
Close gaps in promo strategy &guidelines on some categories
Develop systematic use ofOPSO Macro
Increase Pre-evaluation levelswhere <50%
Increase comparison of pre vspost evaluations
Improve visibility of learningscross functions
Clear Promo calendars andplan sign off
Clear promo execution plans
Prepare for the
future
&
Simplify
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
Going from here to hereis HARD
And, small incremental improvements,lead to big changes over time
Smaller steps are manageable
Dave BrailsfordPerformance Director of UK Cycling
No British cyclist had ever won the Tour de France.
Brailsford was asked to change this.
WHAT : To win the Tour de France in 5 Years
HOW : Through a process of Marginal Gains
He was wrong.
They did it in 2.5 years
Bradley Wiggins won the 2012 Tour de France
The GB team won 70% of available Gold Medals at London2012 Olympics
On 2013, Chris Froome won the Tour de France
THE ENVIRONMENT IS CHANGINGWe need to adapt to the changing environment in order to grow
store ->
• Channels are blurring.
• Technology is developing(connected shopper).
• Retail competition is fiercer thanever before.
• We need do different things inorder to win in this environment.
Thank You !Questions ?
