generic commercial strategy handout print
TRANSCRIPT
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