ecr thailand cooperation & collaboration project

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Developing Our Customers to Win In-StoreDeveloping Our Customers to Win In-Store

““Cooperation and Collaboration ProjectCooperation and Collaboration Project””Colgate Palmolive Thailand & Central Food Retail (Tops)Colgate Palmolive Thailand & Central Food Retail (Tops)

This presentation is confidential and intended solely and expressly for use by the Colgate-Palmolive Company or its subsidiaries. Any distribution, publication, dissemination or any other use whatsoever of this presentation, in whole or in

part, to others is strictly prohibited.


Establish

1958 in Thailand

Vision

To be the BEST consumer products company with leading market positions driven by a passionate, focused, innovative team

Product Category

Oral Care, Personal care, Home Care, Pet Nutrition

Brands

Colgate, Plax, Palmolive,

Protex, Care, Ajax

Values

Caring

Global Teamwork

Continuous improvement

IntroductionIntroduction

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Tops Store Format Tops Store Format Total 120 stores

(as of Mar’10)

3 stores

33 stores

60 stores

24 stores

2010 Plan = 145 Stores (TBC)


“Ensuring our products are present with the “ideal solution” at the shelf

of every retail format that sells our categories”

To be recognized by our customers as the leader in providing shopper-based solutions

which deliver mutual profitable growth

Develop our CustomersDevelop our Customers

Vision

Goal

3


ConsumerConsumer

andand

Customer Customer

are always are always

parts of our parts of our

SuccessesSuccesses


StrategicAlignment

Joint

Business Plan

ShopperStore

Execution

How to Engage CustomersHow to Engage Customers

4


Understand the Understand the

CustomerCustomer’’s Strategiess Strategies


• Click to add Text



Building Strong PartnershipsBuilding Strong Partnerships

with Customers throughwith Customers through……

Long Term Partnership




Demand driving Supply optimization

Teamwork

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Scope of Engagement Scope of Engagement

Tops & Colgate PalmoliveTops & Colgate Palmolive

Drive Demand

InnovationRenovation

Differentiation

Improve Teamwork

Building trust toachieve morewith the same

resources

Optimize Supply

Servicing theshopper better at the lowestpossible cost


Category Growth InitiativesCategory Growth Initiatives

Title

Drive

Category

Demand

Brand Activation

at store level

Innovation Collaboration

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Supply Chain CollaborationSupply Chain Collaboration

Synchronize Synchronize

SupplySupply-- DemandDemand

Excellence Excellence

InIn--store store

ExecutionExecution

Excellence Excellence

operationoperation

Responsive Responsive

Customer Customer

ServicesServices


Strategic Alignment ProvidesStrategic Alignment Provides

the Foundation for JBP the Foundation for JBP

Further

Engagement

Further

Engagement

Rationale for

Sharing Results

Rationale for

Sharing Results

Mutually Profitable

Initiatives

Mutually ProfitableInitiatives

Common Framework

for KPIs and Goals

Common Framework

for KPIs and Goals

Aligned StrategiesAligned Strategies

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Joint Business Planning WorkshopJoint Business Planning Workshop

•• Jointly agreed objectivesJointly agreed objectives

•• Jointly agreed strategies and Jointly agreed strategies and action plansaction plans

•• Joint scorecard (demand & Joint scorecard (demand & supply side)supply side)

•• Regular review of Regular review of

performance vs. objectives performance vs. objectives and action plansand action plans

•• Cross organizational Cross organizational

engagementengagement


JBP Engagement LevelsJBP Engagement Levels

Monthly review with

Buyer/Quarterly with

two level above

managers

Two levels above

sign-off

Value-added projects

with communication

of results to sr. mgt

Functional agreement

on goals/metrics

• Mid-to-long term

strategic intent

• Agreement on

Priorities

Intermediate

Monthly review with Buyer/Quarterly with two levels above managers/Semi-annual with senior managers

Most senior sign-off available

Integrated cross-functional solutions

Cross-functional agreement on integrated goals and metrics

• Engagement principles agreed at top-to-top

• Long term strategies shared

Advanced

Keeping Track

Sign-off Level

Initiatives

Setting KPIs &

Goals

Strategic Alignment

JBP Element

Performance vs. Goal

Buyer/Category Manager

Activity Grid for RE

Basic sales targets to sub-category

“Managing the Customer as a

Business” (KAM 1) Customer Strategy

Standard

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All key activities have been aligned All key activities have been aligned

& implemented through JBP Flows& implemented through JBP Flows

Step 1Step 1 Step 2Step 2 Step 3Step 3 Step 4Step 4

Top to Top

Align in Broad Strategy

CEO/ GM,

Director level

in key functions

JBP Workshop

Align Strategy

in Operational

level of

Commercial,

Supply Chain &

Operation functions

Quarterly Review

Commercial,

Category &

Supply Chain

Senior

Management

Monthly Review

Commercial &

Supply Chain


Current Process :

• Regular T2T engagement – Twice a year

• Tops’s President and Commercial VP always attend this strategic alignment meeting with Colgate’s top management

Best Practice : Hi Level of Strategic Alignment Best Practice : Hi Level of Strategic Alignment

Riccardo Ricci

General Manager

Colgate Palmolive

Alistair Taylor

President

Tops Supermarket

Des Gist

CDD

Colgate Palmolive

Chiranun Poopat

VP, Commercial

Tops Supermarket

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Current Process:

• Agree on commercial target and broad strategic direction in TTT.

• Cascade down to JBP workshop with both commercial & supply chain participation. Both operational teams have mutual agreed on business plan and KPI’s signed off.

• Quarterly Category and Business Review have been conduct in order to check milestone.

Best Practice Best Practice –– Goal & KPIGoal & KPI’’s Settings Setting

+12.9%Invoice Sales(MB)

+10%

+7.8%

166179

202228

0

40

80

120

160

200

2007 2008 2009 2010 LE


Current Process :

• Full cross functional involves in JBP process

Tops : Marketing, Merchandising, CATMAN, Operation, Supply Chain.

CP : Marketing, Shopper Marketing, Customer Marketing, CATMAN, CDT, Supply Chain.

• Outputs with solid agreed plan and KPIs for each function• Keep monitoring on initiative project coming out from JBP meeting and update in next TTT.

Best Practice Best Practice –– JBP Process and ResourcesJBP Process and Resources

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Current Process:

• Quarterly Meeting : Cat Review/ Commercial Review

• Monthly Update Meeting : Commercial and Supply Chain

• 100% of plan implemented with post evaluation on core activities

Best Practice Best Practice –– Plan AchievementPlan Achievement

JBP Summary Plan 2009Full Year Summary

100% Achieved


Current :

• Level of Catman : Level 3-4 with Quarterly update meeting

• Initiated Oral Care training to Tops’ Store Manager

• Mutual agreed in Shopper Marketing project : Health Bank

• Mutual DC visit in order to strengthen company operational practice and relationship between both parties.

Best Practice Best Practice –– CATMAN & Key InitiativesCATMAN & Key Initiatives

Oral Care Training for Store Manager

Shopper Marketing project Mutual DC visit

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Key Visibility Achievement : InKey Visibility Achievement : In--store Visibilitiesstore Visibilities

TB Power Panel

Jan – Dec 2009

57 Stores

OC Full End Cab

Jan – Dec 2009

28 Stores

PCP Full End Cab

Mar – Dec 2009

9 Stores

Display Unit

Jan – Dec 2009

10 Stores


PLAX Success StoryPLAX Success Story

Colgate PLAXKey Activities : Premium Range Listing, distribution, Tops’ CRM

PLAX is a key driver of Total Mouthwash Cat. at TopsPLAX is a key driver of Total Mouthwash Cat. at Tops Source : AC Nielsen

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

JanM

arM

ay JulSep

NovJa

nM

arM

ay JulSep Nov

Colgate Plax

Others

2008 2009

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ToothpasteToothpaste

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

FY2008 FY2009

Source : AC Nielsen

Mainstream

Stain

Therapeutic

Kid

Oral Care : Driving Premiumization

Q1 : Total Advance RL, Q2: Salt Herbal RL, Q3 : Sensitive RL, Q4 : OHM

+22.5%


Body CleansingBody Cleansing

Pro t ex Liq uid So ap

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

2008 2009

Bar Soap / Shower CreamQ1 : Protex SC Icy Cool, Q2 : Protex BS Clean & Pure, Q3 : Protex Hand Gel new variant, Q4 : Protex Try Me Campaign

Protex Liquid Soap Protex Bar Soap

Source : Tops Data

Graph+16.6%

P r ot e x Ba r S oa p

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

2008 2009

+9.4%

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Protex TalcumProtex TalcumMentholated Talcum

Protex Cool Deo Launch

Source : AC Nielsen

Graph

Protex Tulcum

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

2008 2009

+6.1%


Capture Influenza OpportunityCapture Influenza Opportunity

Protex Hand Gel & Protex Hand Soap

TVC

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Participate in Tops Initiative : Beauty BazaarParticipate in Tops Initiative : Beauty Bazaar


Mom & Kids Fair Mom & Kids Fair ChangwattanaChangwattana Jul 29Jul 29--Aug 4,09Aug 4,09

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Celebrity Store Walk Celebrity Store Walk –– Create New Shopping ExperienceCreate New Shopping Experience


Tops Oral Care Training Tops Oral Care Training

� Training session

� Role play Session to apply all

the learning into actions

� Pre and Post Test session

• Expected outcomes for CP:

– Improving Oral Care knowledge

among store managers and

Department Manager

– Improving awareness and attention to Colgate products among store

managers and Department Manager

– Improving category off-takes and

OOS, especially Colgate products

– Being perceived as a “preferred

supplier / trustworthy supplier

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Done / On Going Agreed Project

Best Practice Best Practice

Supply Chain EngagementSupply Chain EngagementCurrent Process:

• TTT Supply Chain is also in process

• Monthly Joint Scorecard and Supply Chain meeting

Projects Status

Monthly meeting

Joint scorecard

Top to Top Supply Chain meeting

Mutual DC Visiting

Improve On ShelfJoint demand Planning

(seasonal, promotion and new pdt)

Logistics Efficiency Driver

MOQ

Backhaul

Technology VMI

Building a Supply Chain Alliance

Sustainability


Supply Chain Initiative Supply Chain Initiative -- Mutual Plant visitMutual Plant visit

- Understand Colgate working flow, production process and operation facilities

- Well communicate with Colgate team and Shorten lead time to solve problems and smooth

business transactions

- Trust on Colgate products and production to support their business growth

- Strengthen relationship between Retailer and Manufacturer in all levels (Management, Operation

level)

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On Time

90.0092.0094.0096.0098.00

100.00

Colgate 96.00 98.20

Tops 94.00 97.00

Goal 99.80 97.00

08 A 09 A

Case Fill

80.0

85.0

90.0

95.0

100.0

Colgate 91.6 94.7

Tops 89.1 96.8

Goal 97.0 98.0

08 A 09 A

Service Level FY 2009 Service Level FY 2009

Case Fill +3% from 2008

2009 is above the goal.

On Time +2.2% from 2008

Goal 2008 = measure by dayGoal 2009 = measured by time (+30 mins)


Inventory coverday

0

5

10

15

20

Forward Buy

Normal

Goal

Forw ard Buy 0.1 5.4 5.0 5.1

Normal 13.58 8.3 10.87 11.15 15.96 12.89 12.2 11.06 14.8 10.8 7.4 8.9 12.8

Goal 9 9 9 9 9 9 9 9 9 9 9 9 9

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecYTD

Dec

Inventory OptimizationInventory Optimization

• Start Forward Buy (Protex Hand soap, Hand Gel) since May 2009

•Inventory exclude Forward Buy = 8.9 days VS Goal 9 days

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All works and processes have been controlled by All works and processes have been controlled by

dedicated customer management teamdedicated customer management team

TeamLeader

Customer

Development

Shopper

Development

Customer

Services

& Logistics

Customer

Financial

Services

Customer Development Team


Internal Focus… External Focus

Achieving Profitable Growth Achieving Profitable Growth ……

YESTERDAYYESTERDAY TODAYTODAY

Manufacturing-Driven… Shopper-Driven

Reactive Supply Chain…Responsive Supply Chain

Lowest Cost…Value and Growth Creation

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ecr thailand cooperation & collaboration project

Documents

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supply chain

commercial

store developing

colgate products

protex

developing