generic commercial strategy handout print

Generic Commercial Strategy

Cobus van Rooijen

Three cornerstones of any commercial strategy... Cheaper, better & faster

than competition!

20/80 focus, to accelerateoperational

effectivenessand efficiencies

where it counts most

1

Consistent execution of the

basics, leveraging best practices

2

Retail segmentation and KPI dashboards, for effective decision making in the field

3

CheaperImplementing the Pareto principle,

activating:• key profit pools (key SKU’s/key cities)

• key customers (distributors/KA’s)• key outlets (top 30% by volume)

Supported by a focused portfolio strategy

BetterShared standards and tools for key

result areas:• Distributor compensation and contract

management• Key Accounts’ contracting and contract

management• Sales execution standards

Supported by a common execution framework

FasterImproving functional competencies

and providing consistent information flows to support commercial decision

making:• Retail segmentation model

• Training Academy• KPI’s and information systems Supported by a focused

performance management system

Cheaper – a focused portfolio strategy

Focused targeting of consumer segments, consumption and shopping occasions

Brand A Brand B Brand C

Consumer profile / segment

Value potential

SKU’s & competitors

Consumption occasions

Shopping occasions &

channels

Better – a common execution framework

Profitable value share growth

Cost effective channel penetration

Value share growth per outlet

Function of how well brewer and distributor allocates

investment and resources against Pareto principle

10

40

20 30

40

102030

40302010

$ / outlet # outlets % volume

Function of how well brewer and distributor activate

consumer value drivers (vs. competition) by

brand / channel1.Availability (Brand/SKU ND & OOS by segment)2.Affordability (price/SKU positions at outlet level)3.Quality (temperature, freshness)4.Visibility (share of facings & POSM)5.Promotion (TTL focus by brand)6.Persuasion (active and passive selling in outlet)

Rate of sales in key outletsEconomic channel penetration of key profit pools

Function of how well brewer and distributor execute customer value drivers

(vs. competition) by channel

1.Financial (margins, credit and financing)2.Assortment (product portfolio)3.Service (sales, technical and deliveries)4.Consulting (value added services)5.Activation (trade marketing capabilities and investment)6.Relationships (connecting with stakeholders)

Commercial relationships with key customers

Faster – retail segmentation and measurement

In summary

Keep it simple, understandable and executable, and focus on the key drivers of EBIT + market share growth