POI - Lessons Learned on the TPO Journey 2013-04-14poinstitute.com/wp-content/uploads/2013/04/Lessons-Learned-on-the... · •Oracle Development as Sr. Director of Product Management

Promotion Optimization Institute Spring 2013 Summit

Lessons Learned on the TPO Journey, Leading Prac6ces for TPO at Every Stage

Promo&on Op&miza&on Ins&tute Spring 2013 Summit

Moderator: Carey Wong, Industry Principal, Oracle Retail & Consumer Goods Business Unit • Currently Oracle’s Global Sales and Marketing Evangelist for CPG Industry • Oracle Development as Sr. Director of Product Management for CG CRM applications – 6yrs • Siebel Consulting, implementing Siebel CRM and TPM systems for CPG companies – 8 yrs • Owner of seafood and produce wholesaler – 5 yrs • Field sales rep for a sporting goods manufacturer – 3 yrs Panelist: Kevin Kroymann, National Manager, Trade Marketing, Hormel Foods • Currently responsible for customer trade marketing and corp. business analytics teams – 12 yrs • Delivers the overall business plan to achieve volume, share and sales goals. • Kevin Began career with Hormel Foods in 1990 at a processing plant • Six Sigma project manager Panelist: Sarah Meyer, Trade and Customer Marketing Manager, Rich Products, Consumer Division • Currently responsible for Trade and Customer Specific Marketing as well as Sales Planning – 5 yrs • Finance team at Rich for 5 years before moving to Trade Management • MBA from Georgia Southern University • BA in International Business from the University of Georgia

Panelist: Tom Groff, Business Process Manager , The Hershey Company • Currently responsible for design and deployment of solutions to support strategic vision – 10 yrs • Focused on sales forecasting and trade promotion management • Process Solution Architect for transformational new integrated system for US, Canada and Mexico • Designs and architects solutions to improve sales force productivity and provide advanced trade investment insights


Moderator: Carey Wong, Industry Principal, Oracle Retail and Consumer Goods Business Unit Carey Wong is an Industry Principal in Oracle’s Consumer Goods Industry Business Unit. Carey’s career at Oracle began in 1998, when he joined Siebel’s consulting organization, where he spent eight years in the field, helping Siebel’s Consumer Goods customers implement their Siebel CRM and TPM systems. After Oracle acquired Siebel, Carey moved to Oracle’s Development organization, where he led Oracle’s Siebel Consumer Goods Product Management team. Carey Wong was a seasoned IT and Consumer Goods professional for over 10 years before joining Oracle/Siebel, having held positions from a field sales rep for a sporting goods manufacturer to the owner a seafood and produce wholesaler to the CEO of an eCommerce internet start-up. Panelist: Kevin Kroymann, National Manager, Trade Marketing, Hormel Foods Kevin has been the national manager of trade marketing for the consumer products sales division of Hormel Foods for the past 12 years, and is responsible for the customer trade marketing and corporate business analytics teams and delivering the overall business plan to achieve volume, share and sales goals. Kevin began his career with Hormel Foods in 1990 at a processing plant, and held numerous positions there before becoming a Six Sigma project manager at the corporate office in Austin, and then moving into his current role. Panelist: Sarah Meyer, Trade and Customer Marketing Manager, Rich Products, Consumer Division Sarah Meyer is a Trade and Customer Marke&ng Manager with Rich’s Consumer Brands Division, located on St Simons Island, GA. She began her career with Rich’s in 2003 in Finance and transi&oned to Trade Manager in 2008. She is now responsible for Trade and Customer Specific Marke&ng as well as Sales Planning. Sarah holds an MBA from Georgia Southern University and a BA in Interna&onal Business from the University of Georgia. Panelist: Tom Groff, Business Process Manager , The Hershey Company Tom Groff is a Senior Business Process Manager for The Hershey Company with responsibility for design and deployment of technology solu&ons that support Hershey’s strategic vision. For the past 10 years Tom has focused on North American opera&ons within the func&ons of sales forecas&ng and trade promo&on management. In 2010 Tom served as Process Solu&on Architect in a transforma&onal deployment of an integrated sales forecas&ng and TPM plaTorm for Hershey’s US and Canadian business units, a plaTorm currently being extended to Hershey’s Mexico business unit. Tom con&nues to design and architect solu&ons which improve sales force produc&vity and provide advanced insights into trade investment.


Evolving from Promotion Management to Planning

Trade Promo6on Management

•  Management founda6on: –  Efficient Promo&on

Entry –  EZ Funds Tracking –  Simple to Update Pricing –  EZ Liability Tracking –  Deduc&ons Processing –  Complete Repor&ng

This provides: –  System of record –  Standardiza&on of trade

tracking & managing process

–  Spend & policy controls

Full Sales Planning with Predic6ve Analysis & Trade Op6miza6on

ALSO must includes planning and analy6cal capabili6es: – Total Volume Projec6ons – Consump6on & Shipments

– Post Event analysis -‐ 100% – Net Impact– Cannibalize, Halo, etc – Category and PorQolio Effects – Mfg, Retailer & Your Compe6tor

– Product Mix Op6miza6on & Price

Efficiency and Effec6veness: –  Excep&on Driven Insights –  Direct & Indirect / DSD and / or Warehouse –  Standardiza&on of Sales trade planning and evalua0on process

–  Transi&on from “Rear View Mirror”


Evolving from Predic6ve Planning to Op6miza6on

Predic&ve simula&on

!  Plan future promo&ons !  What-‐if analysis to

design more effec6ve promo&ons

Price

Profit Volume

What-‐if scenarios

• • •

Op&miza&on

!  “Smart Advisor”: Recommend the most effec&ve Investment

!  Driving an ‘Op&mal Calendar”

Price

Profitable Volume

What we should do

•

Post-‐event evalua&on

!  Evaluate performance aeer the fact

!  Provide direc&onal guidance for future

Price

Profit Volume

How we did last &me

•

Promo&on Op&miza&on Ins&tute Spring 2013 Summit 6

Baseline

Trade

Consumer

Advertising

Competitive Account

Switching

Baseline

Category Growth

Category Cannibalization

Pantry Load

Competitive Brand Switching

Baseline

Brand Growth

Brand Cannibalization

Pantry Load

Account Switching

Forward Buy

Retailer Manufacturer

True Net Lift

The Real “ROI”

Budget Product Category

Promo6on Op6miza6on Ins6tute Spring 2013 Summit

Traditional Trade Promotion Maturity Scale


Comprehensive Trade Management Maturity Scale

Level of a

dvan

cemen

t

Stages of development

Part Way Up the Curve

Focus on volume & share Reac6ng to market developments & retailer demands

Event prolifera6on Excel or disconnected Focus on funds mgmt

Promo6onal objec6ves aligned internally

Promo6onal Pre / Post performance analysis systema6cally done

Trading partner dialogue during planning & implementa6on stages

Event ra6onalisa6on Forecast of base and li] Demand Sensing impacts

Tradi6onal Sales and Marke6ng

Emerging Best Prac6ce

Trade Promo & L1 Analysis

Analy6cal Trade Decisions

Transforma6onal Differen6ators

Interac6on of retailer and Consumer

Fully integrated Planning across Sales, Marke6ng Finance, Opera6ons and Customer transparency

Investment driving porQolio, category, channel

Evalua6ng / Driving Op6mal Mix of Investment

Winning hearts and minds of Consumers (tweet value)

Trusted Category Advisor at all Consumer accesses

System driven evalua6on of porQolio and category impacts (e.g., cannibalize)

CPFR / Collabora6on with trading partners

Mining Social Media to drive Consumer value

End-‐to-‐end supply chain & total category perspec6ves

Investment linked to porQolio strategy & objec6ves

Op6mized Calendar

Mature Best Prac6ce

Full Loop Internal & External

Closing the Loop Externally


Questions for the Panel

Business Drivers –  What were the primary drivers that drove you to begin

implementing TPO/M? 1.  Visibility 2.  Liability Accounting 3.  Forecast Accuracy 4.  Funds Management 5.  Claims Management 6.  Trade Spend Effectiveness (Promotion ROI)

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Wins –  What were some of your quick/early wins, what’s the next big

win you’re striving for, and what are the KPI’s that you’re using to measure success? 1.  Visibility 2.  Liability Accounting 3.  Forecast Accuracy 4.  Funds Management 5.  Claims Management 6.  Trade Spend Effectiveness (Promotion ROI)

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Change Management –  How are you developing your people to continuously improve?

1.  Training 2.  Incentive Programs 3.  Mandates 4.  KPI’s 5.  Business Process Change

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Lessons Learned –  Given Hindsight is 20/20, what would you have done differently?

What were your biggest implementation challenges, and how did overcome them? 1.  Change Management 2.  Business Processes 3.  Technology 4.  Deployment Strategy

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Collaborative Planning –  How have you been evolving from customer negotiations to

customer collaborative planning? 1.  Joint business planning 2.  Customer centric profitability analysis 3.  Consumption based forecasting 4.  Scenario Planning 5.  Category Level Optimization

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Integrated Business Planning –  How have you been integrating your promotion planning with

other business planning processes? 1.  Marketing (Brand Plans and Corporate Promotion Calendar) 2.  Operations (Demand Plan and S&OP) 3.  Finance (Annual Operations Plans) 4.  Category Management (Retail and Consumer Insights)

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Questions for the Panel What’s next for the future TPM?

–  The evolving Consumer •  More Engaged •  More Sophisticated •  More Influential

–  The evolving Retailer •  More Personalized Marketing •  More Sophisticated •  More Technology

Will TPM become less important as marketing departments spend more money directly engaging with consumers through new digital technologies or

Will TPM evolve from end caps to personalized offers delivered through integrated trade programs leveraging retailers new digital platforms?

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Documents

POI - Lessons Learned on the TPO Journey 2013-04-14poinstitute.com/wp-content/uploads/2013/04/Lessons-Learned-on-the... · •Oracle Development as Sr. Director of Product Management