Il modern trade in italia il caso findus

6/27/2011Prepared by Sarah Leslie, IT Support CentreEspresso Steering Group - November 18 2010Launch slides

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Findus Italy e

il business dei Frozen

Foods

Fabrizio Cannizzaro – Operations & IT Director

Master MUM – Università La Sapienza

9 maggio 2011

Findus Italy


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Agenda

• Who am I?

• Cenni storici su Findus

• Birds Eye Iglo Group

• Il mercato dei surgelati

• Il Modern Trade in Italia

• Findus e le sfide del mercato

• Il processo di S&OP (Sales & Operations Planning)


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Who am I?


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• Fabrizio Cannizzaro, 49 anni, sposato, 1 figlia stupenda (e

anche la moglie ma meno)

• Laurea in Economia alla Sapienza, Dottore commercialista e

revisore contabile

• 22 anni di Unilever in Finance, Customer Service, Logistic e

Sales in varie company e locations

• dal febbraio 2010 in Findus (in Permira dal 1 ottobre)

• Findus Operations & IT Director

• Amante del mare e del sole, scrittore dilettante e lettore

professionista, ex-tennista (medio-basso) prima dell’anca bionica


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Operations

& IT

Director

Cannizzaro

Customer

Service Mgr

Demand

Planning

Mgr

Logistic &

Cabinets

Mgr

Information

Tecnology

Mgr

CS Team 1

5 People

Asssitant

Logistic

1 People

Assistant

2 People

CS Team 2

4 People

CSTeam 3

5 People

Assistant

Cabinets

1 People

Copacker Mgr

Assistant

1 People

Sales

Systems

Mgr

Assistant

2 People

Order Tak&

CS Support Mgr

Order Taking3 People

CS Support3 People

Report toChairman

Mignini

Operations & IT Dept: Organisation chart


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Operations & IT Dept - Main Activities

Demand Planning

- S&Op process mngt (Sales forecast by sku’s, Forecast bias analysis)- Stock optimisation (monitoring, shelf life analysis)- Interface with Factory and Copackers (production plans and goods deployment)- Interface with Logistic and Procurement (copacker products)- Critical sku and obsolete mngt- Product Master data

Logistic&Cabinets

-Logistic LTA mngt (operational interface with Unilever Logistic)- Direct Findus contracts with 3PLP (primary network)- Network mngt (audits and stocks reconciliation) - External Benchmarking-Cabinets (capex, UL agreement, maintenance and scrapping, Interface between Findus&UL Sales Force/LSS)- Reporting,KPI analysis and issues management

Information Technology

- Unilever Contract

management (SLA control)

- Satellite systems (incident

mngt and troubleshooting)

- IT Budget control

- Interface with UL, Accenture

and External suppliers

- IT Development (Project

management)

- IT integration (Beig IT central

system)

- Help desk and users support

Order Taking

- Order taking (concessionaires and

centralised customers)

- System update & Reporting

- Logistic Issue management

CS Support

- Pricing

- Invoicing (Cumulative, Triangular,

Concessionaires, Reivocing)

- Goods returns and CN issuing

-Cash application

Customer Service teams

- Cash collection & credit mgt

(Overdue,Ageing analysis,

Dunning process,Bad debts

- Trade Contract mngt (Fiscal &

Legal interface, Contracts flow

and archiving, Rebates

monitoring, Promo invoice

bookeeping and control)

- Concessionaires & Agents

mngt (agreement,trade terms,

incentive plan)

-Claims mngt

Sales systems

- Project mngt

- Scouting on new

opportunities

- Master data management

-Sap SD & Idoc

-Sap BW (Sales Reporting per

customer, channel, salesrep)

- Satellite systems (SFA,

TPR, EDI & JiT)

- Help Desk to SF

- IT Training to sales force


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Cenni storici

Findus Italy … da Fruit INDUStry

a Marabou

a Nestlè

a Unilever

a BEIG/Permira

a …


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• il marchio Findus nasce in Svezia in una piccola

fabbrica della Fruit INDUStry (da cui deriva il nome)

• nel 1941 il marchio, insieme alla fabbrica è ceduto a

Marabou, un’azienda alimentare svedese, che nel 1945

lancia la prima gamma di prodotti surgelati a marchio

FINDUS

• nel 1962 Marabou vende il brand Findus alla Nestlè

che lo esporta in tutta Europa e che nel 1964 apre lo

stabilimento Italiano a Cisterna di Latina

• nel 1969 in Italia la Unilever, leader di mercato nei

gelati con Algida/Eldorado/Soave, entra nel mercato

surgelati con il brand IGLO che inizia velocemente a

erodere alla Findus (Nestlè) importanti quote di mercato

Le origini (1)


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• la Nestlè perde margini e profitti, il business Findus in

Italia non e’ sostenibile e quindi contatta Unilever per fare

business insieme

• nel 1970 si crea una Joint venture che produce e

commercializza gelati e surgelati (Findus+Iglo) di cui

Unilever detiene il 75% e Nestlè il 25%

• tale co-gestione finisce dopo poco tempo a seguito di

divergenze strategiche e Unilever ne diviene proprietaria

insieme al marchio Findus per la sola Italia mentre all’estero

rimane di proprietà Nestlè (ora è di Lyon Capital)

• all’estero Unilever opera nel mercato Frozen Foods con i

marchi IGLO e BIRDS EYE ai quali si aggiunge Findus per

l’Italia

Le origini (2)


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• nel 2006 Unilever vende il business dei surgelati al fondo

di Private Equity Permira Capital con l’eccezione di Findus

Italia (il fiore all’occhiello!)

• nel 2006 Permira fonda Birds Eye Iglo Group Limited,

leader di mercato nei surgelati in Europa

• nel 2010 Unilever Italia crea la newco Compagnia Surgelati

Italiana tramite spin-off del ramo surgelati a marchio Findus

•il 1 ottobre 2010 Permira perfeziona l’acquisto di C.S.I.

ricongiungendo di fatto in BEIG Group il business surgelati

Unilever del 2005

• ora cosa succedera?

I giorni nostri


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BIRDS EYE IGLO GROUP


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Competitive landscape

• BEIG Group produce un RSP, inclusa Findus Italy, pari a

circa 2,7 Miliardi di Euro (Italy 0,7m)

• è leader assoluto di mercato in Europa con una quota del

12% circa,

• ha quasi 3 volte la relative share del primo competitor

(Findus Group di Lyon Capital con il 4% circa)

• ha una grande solidità finanziaria facendo parte di

Permira Capital, un grande fondo di private equity (in Italia

possiede anche Marazzi, Valentino, Sisal e …)


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Birds Eye Iglo + Findus

• #1 in Europe overall

• Present in 15 countries

• 4 production facilities:

- Bremerhaven 85kt- Reken 85kt- Lowestoft 110kt- Cisterna 100kt

• Strong core categories:

Fish 26% shareVeg 30% sharePoultry 26% share

1

1

2

21

51

11

1

Italy #129% of sales35% share

UK #131% of sales20% share

Germany #117% of sales

8% share

Austria #17% of sales55% share


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BEIG Brand ideal (Core Purpose)

We believe that the world would be

a better place if everyone saw our

frozen food as the smart choice

because they realised how amazing it

can really be.

“Convenience without Compromise”


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15Page 15CONFIDENTIAL

BEIG Organisation

Fish

Vegetable

Chicken

Meals

Category Market Unit Operations

Factory Ops

Procurement

Distribution

Technical

IT

(HR)

Managing Director

Marketing Sales Finance Supply Chain HR

•Marketing

•R&D

•Category Productivity

•P&L Accountable

•Owns the customer

•Best in class trade spend and customer management

•Owns the local consumer

•Integrates category NPD/EPD into MU plan

•Productivity delivered by TPV (Market & product specific)

•Owns the local employee engagement

•Market leading productivity


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Il mercato dei surgelati


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Il mercato Frozen Foods in Italia è grande ... e molto profittevole

1,71,7

1,71,7

1,92,0

2,12,5

2,9

3,7

Yogurt Wine Diary Water

26.2

Other

46.8

Perishabl

e

95

Total

Ambient

Bakery

Perishable

Frozen Food

Beverage

0

100

20

Chilled

B€

Cheese Frozen

Foo

d1

Veg jams Dessert Fixed

weight

veg

40

1. Including 0,2 B€ of door to door business 2. Calculated on a Top 5 retailer data, single channel exampleSource: IRI data

FF has a strong impact both on turnover

and margin contribution for retailers

Average

retailer

Margin2 :

32-34% 20-22% 34-36% 22-24% 36-38% 38-40% 32-34% 24-26% 26-28% 28-30% 28-30% 28-30% ~30%


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... ed è composto da 7 categorie principali

Ready Meals

Sofficini & Other Fun (OF)

Fish

Natural Vegetables

Potatoes

Pizza

Other

1

2

3

4

5

6

7

Examples of products

Starter, First dishes, Soups,meat recipes, vegetable mixes, fish recipes

Sofficini

Fish fingers, mixed fried seafood, fish Fillets, Seafood, Whole & steaks,

Peas, Natural Minestrone, Spinaches

French fries, Natural potatoes

Margherita, Napoli

Dough

Categories

First

Dish

Second

Dish

Side

Dish Other

http://images.google.fr/imgres?imgurl=http://www.unilever.it/Images/Findus%2520cremosa%2520that%27s%2520amore_tcm69-24455.gif&imgrefurl=http://www.unilever.it/ourbrands/foods/findus.asp&usg=__HPgGRQg4nYPLOgOyGno8BifkXx8=&h=75&w=75&sz=15&hl=it&start=5&sig2=7pA3--QS-tO5XguCxMeVbw&um=1&tbnid=k4u7SReotVyLNM:&tbnh=71&tbnw=71&prev=/images%3Fq%3Dthat%2527s%2Bamore%2Bcremose%26hl%3Dit%26rlz%3D1T4ADBS_enIT285IT285%26um%3D1&ei=0c3WSv6SMIXwmAP1yoT8Bg


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Findus ha una chiara market leadership....Followers Nestlè and Orogel far from Findus MS

Source: IRI, analysis

Findus

Nestle

Orogel

Cameo

Pizzoli

Mccain

Aia

PLs

Other Prod.

38%

3% 0%

13%

37%

7%

Other

79

3%5%

0%0%

25%

66%

Sofficini & OF

22%

109

75%

10%

Potatoes

139

7%

4%

5%

26%

21%

31%

6%

Pizza

229

3%

20%

28%

27%

21%

Ready Meals

386

46%

Natural Veg

9%

4%

18%

17%

585

34%

12%

14%

28%

11%

Fish

810

Tot.

Market

Share

Tot

Value

(€)

2.3bnMarket

share

24%

23%

1%

1%

2%

3%

5%

8%

34%


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34

9

102

8

12

42

5

Germany

24

47

27

587

8

France

26

23

18

2

53

34

Italy

23

35

16

6

11

81

6

Benelux2

2630

Others

PL

Iglo

Oetcker Group

Mc Cain

Wagner

Nestlè

Bo Frost

Ad van Geloven

Orogel

Cameo

Findus Italia

Findus Europe

100MS (%)

20

Austria

60

80

0 80 10020 40 60

0

44

15

56

16

United Kingdom

20

40

Market value1

(M€)5.045 2.693 2.3245.939

480

1. All market value data point refer to 2008, except from Itay referring to 2009 2. Includes Holland, Luxembourg and BelgiumSource: Euromonitor

1.337

... Nessuno come Findus in Europa (tranne l’Austria)

Only Iglo in Austria has an higher MS (42% vs. 34% of Findus)


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Lenta ma graduale growth of PLs e niche specialists

Other

PLs

Mccain

Pizzoli

Cameo

Orogel

Nestle

Findus

Source: IRI data, analysis

Δ MS

(1.0%)

+1.5%

+0.4%

+0.3%

+1.0%

+0.3%

(2.0%)

(0.6%)

'05-'08 '08-'09

(0.1%)

0.9%

0.1%

0.2%

0.2%

0.0%

(0.6%)

(0.6%)

Mainly in potatoes

Mainly in pizza

Mainly in vegetables

Value market share per player, %, 2005-2009

21,0% 21,4% 21,6% 22,4% 23,4%

25,8% 26,0% 25,2% 24,8% 24,7%

4,7%4,7%4,7%4,6%4,4%2,8%2,5%2,1%1,7%1,5%1,6%1,4%1,4%1,2%1,1%1,3%1,2%1,1%1,0%0,8%

2006

34.4%

9.7%

80

8.0%8.6%

Years

60

0

100

2033.6%

10.6%

2008

34.2%34.8%

2005

40

2007

34.8%

9.1%

2009


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Il Modern Trade in Italia


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1) Proprietà diretta dei punti vendita, centralità di comando, alto

potere decisionale

2) Proprietà dei grandi gruppi finanziari / multinazionali

3) Multicanalità ( Super e Iper )

4) Elevata copertura del territorio con p.v. dalle superfici

medio-grandi

5) Presenza di marche private (DOB)

La Grande Distribuzione


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1) Proprietà p.v. detenuta dai soci = Alta frammentarietà logistico

decisionale

2) Ricerca di alleanze per raggiungere la dimensione critica

3) Duplicazione dei livelli di negoziazione

4) Multicanalità

5) Copertura del territorio con p.v. dalle superfici medio-piccole

(prossimità)

La Distribuzione Organizzata ( DO)

MT – Universe and MS by Groups and Banners 2010 H+S

Source: Top Trade 2009 H+S – Potential Frozen

Frozen

Food

Key

Clients

Centrale

Italiana

(24,5)

Gruppo

C.S.A (C4,

Sun, Agorà)

(12,2)

Finiper

(7,4)

Coop

Italia

(17,9)

Auchan

(10,4)

Despar

Servizi

(3,9)

Sigma

(1,9)

Il Gigante

(0,8)

Auchan

(4,0)

Sma/city

)5(

CRF

8,9

Gruppo

Sun

1,4)

Agorà

(1,9)

Finiper

(2,6)

Unes

(0,7)

Ce.Di.Gros

(0,6)

Sisa

(2,9)

ESD

(9,0)

Selex -

Schlecker

(9,0)

Pam/

Panorama

(3,1)

Esselunga

(10,0)

SICON

(17,3)

Conad

(11,9)

Rewe

(1,9)

Interdis

(3,5)

Others-

Stand

Alone

(3,2)

Crai

(1,1)

C3

(1,5)

G.R.I.D.O

(0,3)

Indipendenti

(1,3)

Coralis

(0,6)

Lombardini

(0,4)Bennet

(2,3)

Retailers Decision process


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Retail Groups in Italy : a multichannel approach

LEADER

FOLLOWER

COMPETITORS 80%

COOP ITALIA 26,1 13,7 15,5 6,5 10,5

CONAD 5,3 11,7 2,1 16,0 2,5

CARREFOUR ITALIA 16,2 7,8 1,8 11,4

GRUPPO AUCHAN 16,2 7,0 8,0 9,9

ESSELUNGA 0,0 11,9 47,9 0,0

SELEX 4,6 9,2 4,0 6,4 13,0

INTERDIS 0,1 5,6 1,4 9,7 8,0

DESPAR SERVIZI 1,1 4,9 4,3 4,8 1,8

SISA 0,0 4,8 1,3 5,7

FINIPER 10,3 1,1 0,0 0,5 0,6

GRUPPO PAM 4,3 3,2 1,1 2,6 7,0

BENNET 9,0 0,3 1,0 0,0

GRUPPO REWE 0,4 2,9 3,9 0,6 7,7

GRUPPO LOMBARDINI 0,9 0,6 0,0 1,2 8,5

EUROSPIN 0,0 17,8

LIDL 0,0 14,4

TOTALE 100 100 100 100 100

SUPERETTE DISCOUNTQuota LCC HYPER SUPERof which

SUPERSTORE


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- Grandi Ipermercati (oltre 5000 mq)

- Ipermercati (da 3000 a 5000 mq)

- Superstore (da 1500 a 3000 mq)

- Supermercati (da 400 a 1500 mq)

- Superettes (da 200 a 400 mq)

- Libero servizio (da 100 a 200 mq)

- Negozi Tradizionali (fino a 100 mq)

- Discount

Tipologia dei Punti di Vendita


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Local stores not associated to any buying group

Food stores • Small stores, with direct

assistance of personnel/ owners

• Mainly dealing food (minimum 5 different products)

• ~19 000 stores

Mixed stores (food + non food)• Direct assistance of

personnel/ owners• Minimum 3 grocery segments

(at least 5 food categories...)• ~30 000 stores

Chains/ stores associated to big buying groups

• Often distributed on the whole national territory

Four distribution formats• Hyper, ~397 stores• Super, ~8 855 stores• Superette, ~6 849 stores• Discounter, ~3 690 stores

5 Top players• International: Carrefour,

Auchan• Italian: Coop, Conad,

Esselunga

Typical street merchants not associated to any buying group

• Classified into two different clusters

Corner markets• Italian market located in

dedicated in town area, with direct assistance of owners

• Mainly dealing food

Hawkers• Mobile format mainly located

in crowded areas• Both dealing food and non

food products

Source: IRI data

In-Home market in Italy is composed of three different distributors categories

Modern Trade Normal Trade Specialists

Retail

http://images.google.fr/imgres?imgurl=http://eugeniolevi.ilcannocchiale.it/mediamanager/sys.user/41178/supermercato_art250204.jpg&imgrefurl=http://eugeniolevi.ilcannocchiale.it/%3Fr%3D89707&usg=__13VB-wB71Q8QMz62POKtZco7ibE=&h=290&w=550&sz=30&hl=it&start=6&sig2=ze1dHw7VzCPtXoGSmYOKiA&um=1&tbnid=U2XmW9RLezcbQM:&tbnh=70&tbnw=133&prev=/images%3Fq%3Dsupermercato%26hl%3Dit%26rlz%3D1T4ADBS_enIT285IT285%26um%3D1&ei=nTDOSumYFoTAmQOY3PGEAw

http://images.google.fr/imgres?imgurl=http://www.bakecannunci.com/adpics/centro_sala682.jpg&imgrefurl=http://www.bakecannunci.com/56/posts/1_Immobili_e_terreni/1_commerciale_vendita/&usg=__QtOYA9o6ieAJx2aqcGRgTbCNV3I=&h=240&w=320&sz=20&hl=it&start=6&sig2=iiYz_9BGfk6QvkH8syHnpw&um=1&tbnid=T4vcKYphSUVRhM:&tbnh=89&tbnw=118&prev=/images%3Fq%3Dnegozio%2Baliemntari%26hl%3Dit%26rlz%3D1T4ADBS_enIT285IT285%26um%3D1&ei=T23XSs7TD42F_AbGqNWUAQ


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Top 5 retailers are growing...Value market share on modern trade, food and non-food market, %, 01 - 08

14,9%14,7%14,4%14,3%13,7%

13,1%12,5%12,1%

8,9%

9,1%9,5%9,4%9,2%8,4%

6,5%6,2%5,3%5,1%4,8%4,6%4,5%

0%

5%

10%

15%

7.5%8.0%

7.1%

Coop

Conad

CRF

Auchan

Esselunga

2001 2002 2003 2004 2005 2006 2007 2008

%

Italians

MS ∆ p.p.

'01 – '08

2.8

0.4

1.4

0.3

7.6

2.6

Source: AC Nielsen

Top five retailers account for ~50% of total market

GroupGroup

http://images.google.fr/imgres?imgurl=http://www.fassacoop.it/it/logoCONAD.gif&imgrefurl=http://www.fassacoop.it/it/CentroCommerciale.htm&usg=__dxeQ1WMsPXx4qtFWtL3ER_qVuwg=&h=136&w=631&sz=8&hl=it&start=2&sig2=jM_2COOushaop4BAd2Absg&um=1&tbnid=2Jr8zG67WGsThM:&tbnh=30&tbnw=137&prev=/images%3Fq%3Dlogo%2Bconad%26hl%3Dit%26rlz%3D1T4ADBS_enIT285IT285%26um%3D1&ei=7uYpS5LFI8aI_Aalp7CDCQ

http://images.google.fr/imgres?imgurl=http://www.villaggiocommercialeilborgo.it/Portals/5/Logo%2520Coop.JPG&imgrefurl=http://www.villaggiocommercialeilborgo.it/LinkClick.aspx%3Flink%3D344%26tabid%3D557%26mid%3D878&usg=__dQj_v8gu4nrayr0ATGCTW7MLuG0=&h=683&w=1772&sz=72&hl=it&start=1&sig2=pAugQA3wDHDbPyhqbCrBVg&um=1&tbnid=G3X6bUwl4m9OUM:&tbnh=58&tbnw=150&prev=/images%3Fq%3Dlogo%2Bcoop%26hl%3Dit%26rlz%3D1T4ADBS_enIT285IT285%26um%3D1&ei=l-YpS77RF5yK_AbnzrDyCA


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3131197700-73 project Boreas 26 oct 09 – Lbi-ec-Mil

... and the biggest 6 buying groups represent ~87%of Modern Trade sales

2.0%

1.4%

4.7%

1.2%

1.2%

2.5%

8.9%

2.9%

1.7%2.0%

9.1%

2.0%

7.1%7.9%

0%

5%

10%

15%

20%

25%

4.6%

14.9%

22.7%

Centrale

Italiana1

3.6%

8.2%

18.4%

Intermedia

902

16.3%

Sicon3

14.6%

GD plus4 Esselunga

Market share on gross Modern trade sales

(%)

ESD

Coop Auchan Conad Carrefou

r

Selex Esselunga

1. Despar, Il Gigante, Sigma 2. Pam, Bennet, Crai, Lombardini, Sun, Metro 3. Interdis, Rewe 4. Finiper, Agorà, CeDiGros, Alfi, Disco Verde, CDS, Cedi Market Source: AC Nielsen (Top for Top and GNLC)

2008 data


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32

Italian Modern Trade – Concentration level vs other european country

Edeka Group 28,3 Superunie 30,6 Tesco 31,4

Rewe Group 21,3 Albert Heijn 29,4 Asda 16,7

Markant 18,9 C1000 14,2 Sainsbury 16,2

Tengelmann 8,4 Super De Boer 7,3 Morrison 11,1

Metro 8,2 Somerfield 4,1

TOP 5 85,1 TOP 5 81,5 TOP 5 79,5

Carrefour Group 21,6 Carrefour Group 23,3

Coop Italia 14,9

Leclerc 15,9 Vassilopoulos 12,2

Conad 9,1

Intermarchè 11,8 Skalvenitis 10,4

Carrefour Group 8,9

Auchan 8,9 Spar Veropoulos 6,3

Gr. Auchan 8,2

Systeme U 8,5 Massoutis 5,7

Selex 7,9

TOP 5 66,7 TOP 5 57,9

TOP 5 49,0

ITALY

GREECEFRANCE

GERMANY HOLLAND UK

Carrefour 22,0

Mercadona 21,4

Eroski Group 11,7

ECI Group 8,2

Auchan Group 7,5

TOP 5 70,8

SPAIN

2008 data


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Italian Trade by Store Format

425

4193

45885

12059

8950

# pos


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34

In retail, FF is sold mainly through Supermarkets (52%)

Distribution

channels FF (M€)

1 208

FF

(%)

Food

(%) Rationale

Super1

Superette

Hyper

Discounter

Normal Trade

370

334

225

182

52.1

16.0

14.4

9.7

7.8

2 319 100 100

49.1

14.6

16.4

10.1

9.8

• Target of small families

• Limited offer of fresh /

superfresh products

• Easy for transportation

(close to home)

• Target of small families

• Wide offer of fresh /

superfresh products

• Far from home

• Good variety of FF

private label products

• Long-term food

purchases

• Limited offer of FF

products

• Short-term food

purchases1. Including both super <2 500 sm and >2 500 smSource: IRI data


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35

Findus has clear leadership in all channels but DiscountersFF market share by channel, %, 2009

Source: IRI data 2009

Findus strong leader both in Modern Trade fastest

growing channel (i.e. Super) and Normal Trade

3%5%

8%

30%

335

Hyper

53%

34%

1%

2%

7%

227

Discounter

16%

12%

1%4%

13%

52%

182

Normal trade

26%

Private Label

Aia

Mccain

Pizzoli

Cameo

Orogel

Nestle

Findus

0 20 40 60 80

0

100

20

80

60

100

22%

22%

25%

3%5%

8%

34%

1 222

Super

Other13%

2%5%

9%

42%

370

Superette

25%

40

Tot. Market

Share

Findus

avg: 34%

FF

Market

share

(%)

Total

2.3bn

34%

8%

5%

3%

2%

1%

1%

23%

24%


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36

Findus e le sfide del mercato

• la complessità

• il mondo esterno

• il consumatore

• il cliente ed i suoi marchi

• il circolo vizioso dei prezzi

• il punto di vendita


071010.ppt

37

C

I

S

T

E

R

N

A

70%

Secondary

Depots

(SDC)

3%

#180

Centralized

cold store

27%

#11

Concessionaires

cold stores

DIRECT

Primary

Depots

C

O

P

A

C

K

E

R

S

P.

D.

C.

9.700

34.000

3.900

tot.

47.600

Primary transportation

Secondary transportation

Delivery

PoSs

Le sfide : La complessità

FINDUS- Routes to Market


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38

Continuo riallineamento delle strutture interne per

fronteggiare i cambiamenti esterni

AVVIO

CENTRALIZZAZIONI

MASTER

PLAN 1

SUPER

CENTRALI

VERTICALIZZAZIONE

ACCOUNT

CHANNEL

COMPETITION

BUSINESS

ACCOUNT

BRAND

COMPETITION

sul PDV

CATEGORY

MANAGER

UFFICIO

ORDINI

CENTRALIZZAZIONI

> 50%

NUOVO MODELLO

NEGOZIALE

CUSTOMER

TEAM

PARTNERSHIP

LOGISTICA

MASTER

PLAN 2

ESTERNO

INTERNO

GLOBAL

CUSTOMERS

International

Team

Le sfide: adattarsi al mondo esterno


071010.ppt

39

• Visita più punti vendita

• Più frequentemente

• Spende meno per atto di acquisto

Aumenta la sua mobilità

Le sfide : il Consumatore

6,4

7,9

-4

-6,3

7,38,28,6

6,8

2,5

-4,9

-0,7-1,3

-3-2,2

ott-dic 07 nov 07-gen 08 dic 07 - feb 08 gen - mar 08 feb - apr 08 mar - mag 08 apr - giu 08

Numero scontrini

Valore medio scontrini

Variazio

ni %

Trim

estr

ali

vs a

nni pre

cedenti


071010.ppt

40

Le sfide : il Consumatore

Il consumatore è sempre più rivolto alla ricerca della convenienza:

83

78

78

50

51

49

% MOLTO + ABBASTANZAD’ACCORDO

% molto

Quando devo fare unacquisto, guardo, confrontoe chiedo molto più di prima

Cambio facilmente unamarca se è conveniente

Cambio facilmente un puntovendita se è conveniente

1,0

7,1

2,1

40,9

48,9

0

5

10

15

20

25

30

35

40

45

50

Per niente

d'accordo

Scarsamente in

accordo

Mediamente

d'accordo

Piuttosto

d'accordo

Perfettamente

d'accordo

Ultimamente sto molto più attenta quando vado a fare la spesa perché

cerco prodotti in promozione/ offerta speciale/ sottocosto


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Le sfide: Il Cliente e I suoi marchi

2004 2005 2006 2007 2008

11,9 12,1 12,3 12,7 13,4

Private Label – Quota Valore (I+S+LSP) +150 bps in 4 anni

+70 bps ultimo anno

Le Marche del Distributore

Stanno aumentando di quota ma ad un rate inferiore

A quanto accade nel resto d’Europa


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PLs presence is still low compared to other countries...

0%

10%

20%

30%

40%

50%

25.0%

23.7%

23.8%

26.2%25.5%

24.8%

12.2%

37.8%

27.4%26.8%

25.3%

12.4%

37.9%

28.7%

27.3%

26.3%

12.7%

41.1%

30.3%

28.7%

27.2%

13.4%

48.2%

33.4%

30.4%

28.0%

14.1%

UK

Spain

Germany

France

Italy

2003 2004

%

38.0%

2005 2006 2007 2008

38.0%

11.0%

MS ∆ p.p.

'03 – '08

10.2%

8.4%

3.1%

6.7%

4.2%

...And has a lower growth rate

Source: AC Nielsen


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Coop Italia - Focus on Private Label

Strong communication support:

folders, in store radio, TV, print


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Forte teatralizzazione nel PDV

in Super and Hyper markets;

Confronti diretti tra i prezzi di

branded and PL products



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Attacco diretto a market leaders



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46

Coop “price increase war”


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Esselunga reaction: via PL…

…. low prices….


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… and brands

• Reazione veloce alla situazione di mercato

• Volantini di “convenience” principalmente

con categorie traffic builder

• Forti promo su branded products

• Competizione diretta on PL price with

Coop Italia

50

Le sfide: il circolo vizioso dei prezzi

L’industria scarica l’aumento dei costi sui listini per mantenere il

livello di profittabilità

Il Trade non riesce a trasferire tali aumenti sul prezzo al consumo

Trade Margins Reduction

L’industria aumenta i prezzi di listino per mantenere il

livello di supporto sui propri prodotti da parte del trade

Il Trade fa pressione sull’industria per extra

risorse per compensare la perdita di margine


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Come si può contrastare il circolo vizioso dei prezzi

Per restare competitivi vs competitori diretti e marche

private dobbiamo:

Minimizzare gli aumenti di listino/intervenire

sull’equazione di valore

• riduzione dei costi

• miglioramento della qualità

• innovazione

Arbitraggi di risorse

• clienti/canale – dare priorità a quelli con maggiore ROI

• brand – privilegiare gli investimenti sui prodotti con maggiore

elasticità al prezzo


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Le sfide: vincere sul PdV

Per vincere in uno scenario difficile e competitivo

come quello attuale bisogna conquistare il

consumatore anche sul punto di vendita:

• con la migliore esposizione a scaffale (visibility)

• con la corretta proposizione di valore e convenienza

(affordability)

• con il giusto assortimento per store format (miglior

assortimento ovunque)

• con i nostri prodotti sempre disponibili sul pdv (no

OoS)


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Il processo di S&OP


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What is Sales & Operation Planning?

It is NOT a meeting!

It is a structured process to run, develop and grow the business

Integrated marketing, sales and supply planning, with clear understanding of their financial impact

Continuous management of change, issues & assumptions for the business

Ensure that the right people make the right decisions at the right time


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S&OP summary

Marketing Review Meeting

week 1 week 2 week 3 week 4

Create Volume Forecast

ACTIONS

Demand Review Meeting

MEETINGS

Agreed P&L Forecast

Decisions to drive the Business

Summary of Assumptions

Agreed Volume Forecast

Supply Reconciliation Meeting

Board Review Meeting

Cash Up - Create P&L Forecast

OUPUTS

Note: Updated Financial forecast in value provided to

Support Centre as part of monthly results, Friday of wk 1.

Timings suggested to hit this deadline


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Marketing Review Meeting

Objective To provide the detailed planning assumptions for the next 18 months by Product Group

Organisation

/ Attendance

Leader: Marketing Director

Attendance: Brand Manager, Market Intelligence, Demand Planner, Category, Finance, Sales Dir,

Ops Dir

Input Marketing: Market NPD timings, NPD assumptions, Media planning,

Category: promo performance, NPD performance, market pricing, Distribution Changes,

promotional strategy

Demand Planner: Forecast Accuracy/Bias,

Market Intelligence: Data KPI sheet containing category volume performance, Findus share

performance, Market projections Market consumption data,

Agenda ALL to Attend

Market Performance: market intelligence to update on Market perf, share & key KPI’s using the

category dashboards

Forecast Accuracy Performance: Planner to give brief update on last months performance & key

drivers of accuracy/inaccuracy

Separate session by Category

FY assumptions sheet. Marketing to lead, detailing market trend assumptions, activity plan, media

plan, distribution changes

NPD: Marketing to lead Update on future NPD timelines and status within innovation process.

Assumptions for forecast. Performance of current NPD,

Sales Promotional Plan: Category to lead summary of sales promotional calendar

Output •Documented assumptions for major forecast drivers

•Split to Product Group Level

RACI Marketing: Accountable for Assumptions

Insights/Finance/Sales/Demand Planning planning: Consult


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Objective To agree the detailed Volume plan for the next 18 months by Product Group

Organisation

/ Attendance

Leader: Operations & IT Director

Attendance: Brand Mgr, Mkt Intelligence, Demand Planner, Category, Sales, Finance, Mktg Dir,

Sales Dir

Input Demand Planner: Template containing: Forecast LV (tonnes, cases, comparison to PLV, AP, prior

year), Forecast Accuracy/Bias, Obsoletes/stock exposure

Marketing: Assumptions Template

Agenda Forecast Accuracy Performance: Planner to give brief update on last months performance & key

drivers of accuracy/inaccuracy

Product Group Analysis: Planner to lead review of Volume Forecast. Objective to highlight key

impact of major assumption changes. Highlight areas of major change to Last forecast, Previous

year, Discuss whether risk/opportunity need to be applied. Generate risk/gaps to feed into

Operational Review

NPD: Planner to lead review of NPD volume forecast, Rate of Sale data, target weighted

distribution and pipefill assumptions

Sales Promotional Plan: Category to lead review of sales promotional volumes

Risks & Opps, gaps to target: Summary of key risks & opportunities by category

Output •Volume Forecast by SKU for next 18 months

•Documented changes to LV since prior demand cycle

•Risks and Opportunities summary

RACI Sales & Marketing: Accountable for Forecast

DP: Responsible for Volume Forecast

Insights/Finance/Sales/factory planning: Consult


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Supply Reconciliation Meeting

Objective To agree a supply plan that balances supply and Demand for next 18 months

Organisation /

Attendance

Leader: Operations & IT Director

Attendance: Factory Supply Planner, Head of Procurement, Factory Finance, Factory Director, Demand

Planner

Input Factory Planning: Capacity Plans, stock projections, plant performance, identified gaps in supply,

alternatives/options to supply, recommendations

Procurement: Raw material gaps in supply, alternatives/options/recommendations

Factory Finance: Projected costs of plans, financial impacts of options to resolve

Factory Director: Plant performance, Projects impacting supply, plant impact of supply plan

Demand Planning: Vol fcst, risks/opps potential to inform decisions

Agenda Demand and Assumptions update - Operations Director:

Review plant performance – Factory Director

Plant Supply Plan for next 18 months, Stock, Cost & Service Implications - Factory Planning:

Raw Materials supply plan, Stock, Cost & Service Implications- Factory Planning:

Obsoletes and SSL review – Demand Planning

Co-Packers – Issues to resolve – Demand planning

Output •Next 18 months supply plan

•Inventory forecast

•Supply/demand issues to resolve

•Feedback future constraints

•Obsoletes issues for resolution

RACI Operations Director: Accountable for supply Plan

Factory Planner: Responsible for supply plan

Factory Director: accountable for delivery of agreed supply plan

Procurement: Accountable for delivery of raw materials to agreed supply plan

Finance/Demand Planning: Consult/inform


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Objective To agree a the P&L forecast for next 18 months

To decide on issues escalated through the process

To course correct on Gaps, Risks & Opportunities

Organisation

/ Attendance

Leader: Finance Director

Attendance: Finance Director, Marketing Director, Sales Director, Ops Director, Factory Director,

Findus Procurement Contr, Other Participants as appropriate

Input Finance: P&L by SKU for next 18 months

Marketing: Assumptions Template

Operations: Volume risks & opportunities, Supply issues

Agenda Performance review: Key KPIs

P&L next 18 months: Risks & Opportunities – Issues for resolution

Supply issues to sign off

Output •Next 18 months P&L Forecast by SKU

•Gaps vs business plan, actions to close

•Decisions on Supply resolution

•Decisions to mitigate risks and take opportunities

RACI Sales & Marketing Directors: Accountable for Forecast. (Sales to 3 months, Mktg 3-18 months)

Finance Director: Accountable for Financial forecast call

Operations: Responsible for Demand Plan, Accountable for agreed supply plan

Insights/Finance/Sales: Consult & Inform


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S&OP Summary

4 steps monthly process

Marketing ReviewMeeting


Supply Chain Review Meeting


Parti

cip

an

tsA

gen

da

Ou

tpu

tN

ext

Ste

ps

• Marketing (owner)

• Category

• Demand Planning

• Finance

• Demand Planning (owner)

• Marketing (per category)

• Category (per category)

• Finance (2/3 people)

• Demand Planning (owner)

• Production (Production planning & Finance)

• Procurement

• Board

• Mktg Activities sharing

• New launches

• Consumer Promo

• Advertising

• Sell-out trends (past & future)

• Volume estimatesby sku – all sku in portfolio

• Demand planning KPI’s discussion

• Forecast Bias & Accuracy

• Issues on stock/ obsolescence

• Main outcomes marketing review

• Main demand changes (by product family)

• Production plan

• Overview Stock & obsolescence

• Economics (cash-up) and volumes

• List of Activities

• Total monthly Volumes

• Period :18 months (to be)

• Forecast validation • Economics (cash-up) and volumes validation

•Demad Planning, Category and MKTG estimate volumes by sku (total level) based on

- History

- Planned trade promo (salesware)

- Marketing activities

•Volumes input in production plan

•All of departments engage their own interface

- Demand Planning => production

- Procurement => Co-packer

SALES/MARKETING/ PROCUREMENT

•Review activities based on production plan

•Possible over-stock allocation

•Obsolescent products pushing

•Volumes Cash-Up

Critical process phase

3-4 days

• GAP analysis and

Agreed action

Documents

Il modern trade in italia il caso findus