presentation to: category management association conference october 27, 2009
TRANSCRIPT
Agenda
What is Storewars?
How Storewars works
Key learning objectives
Program structure
Suggested participants/formats
Storewars clients / countries
Participant learnings/feedback
For more information
What is Storewars?
An exciting, challenging MBA-level business simulation that provides participants with:
• Risk-free environment to test strategic business concepts
• Valuable industry knowledge• Understanding of challenges facing their trading
partners• Negotiating and team building skills
Leading to:
• Improved business results • Increased consumer satisfaction
How We Learn
10% of what we read
20% of what we hear
30% of what we see
50% of what we both see and hear
70% of what is discussed with each other
80% of what we experience personally
95% of what we teach to someone else
-William Glasser
How Storewars Works
Five profitable $100 million companies
• Two retailers• Three CPG manufacturers
Two separate and distinct markets
Two categories
Teams decide marketing, sales and commercial issues
Teams negotiate trading agreements
Decision-Making and Negotiation
Promotions
Cooperative Advertising
Quantity Discounts
Terms of Payment
Production
Positioning Advertising
R &D
Shelf space
AssortmentStore Image
Pricing
How Storewars Works
Decisions fed into computer model
• Simulates 6 month period• 4 decisions / 2 years
Company financial data reports and market research studies provided after each decision
Winners determined by market share and Economic Value Added (EVA)
From the book Agentry Agenda: Selling Food in a Frictionless Marketplace by Glen A. Terbeek available at AgentryAgenda.com or Amazon.com.
Cartoon from the book Agentry Agenda: Selling Food in a Frictionless Marketplace by Glen A. Terbeek available at AgentryAgenda.com or Amazon.com
Learning Objectives of Storewars
Offer insights into manufacturer and retailer relationships
Use enhanced negotiation skills for win-win situations
Learning Objectives of Storewars
Offer insights into manufacturer and retailer relationships
Use enhanced negotiation skills for win-win situations
Work in teams to achieve a group objective
Operate more effectively with other departments in your organization
Learning Objectives of Storewars
Offer insights into manufacturer and retailer relationships
Use enhanced negotiation skills for win-win situations
Work in teams to achieve a group objective
Operate more effectively with other departments in your organization
Determine business strategy and implement effectively
Learning Objectives of Storewars
Offer insights into manufacturer and retailer relationships
Use enhanced negotiation skills for win-win situations
Work in teams to achieve a group objective
Operate more effectively with other departments in your organization
Determine business strategy and implement effectively
Transform information into profitable decisions
Provide trading partners/customers with most appropriate information for effective decision-making
Use your time more efficiently to make decisions
From the book Agentry Agenda: Selling Food in a Frictionless Marketplace
by Glen A. Terbeek available at AgentryAgenda.com or Amazon.com.
Program Structure
Program activities
• Group interaction/team work• Lectures• Feedback sessions• Team reviews• Key learnings presentations/ discussion
Facilitators (2)
• Coach• Lecturer/discussion leader• Analyst• Administrator
Suggested Participants
Challenging for all levels up to senior management
Retailers, wholesalers, manufacturers, market research providers, ad agencies, consultants
Buyers, category managers, merchandising, sales, trade marketing, marketing, market research
Cross functional learning helpful to other departments such as finance, operations, systems
Main Formats
Corporate course — all participants are colleagues from the same company from the same or different markets.
• Can invite trade partners
Shared course — participants are drawn from 2 or 3 different companies.
Open course — participants come from a variety of companies and mix with peers from across the industry.
24-34 Participants – 29 Optimal
Some Storewars In-House Clients
Ahold
Supervalu
Tesco
Wal*Mart
Metro (Germany)
Metro/Mansour Manufacturing and Distribution (Egypt)
BAT
Cadbury Schweppes
Coca-Cola
Grolsch
Heineken
Kelloggs
Kraft International
Mars
Nestle
Philip Morris International
Sara Lee
Unilever
Wrigley
Hewlett Packard
Hope’s Storewars Countries (outside US)
Hong Kong
China
Indonesia (2x)
Malaysia
Singapore
India (4x)
Thailand
U.A.E. (14x)
Egypt
Saudi Arabia (2x)
Austria
Belgium (6x)
Croatia (3x)
Czech Republic
Hungary
Netherlands (2x)
Poland (2x)
Portugal
Brazil (2x)
Mexico
What Participants LearnedNielsen Open Session - Dubai
Strategy planning before tactics
Find differential from competition
Preparation is everything
Make the most of marketing tools/ research
Individual strengths should be utilised
Try to be in other’s shoes (It is really hard to be a manufacturer!)
“Be POLITE”….especially when you are in trouble
What Do Our Clients Say?
“There are not a lot of training programs out there for retail category managers, but Storewars was an ideal opportunity to help improve the performance of our people while they were under the fire of making decisions.” Michael Knight, Senior Vice President, Giant Food Stores
“It is like a laboratory in which you can put people in stressful situations… You can see how creative people can be.” Michael Knight, Senior Vice President, Giant Food Stores
“The SUPERVALU participants gained valuable insights into how their manufacturer partners prepare for and actually negotiate.” Michael Terpkosh, Director, Category Management Development & Retail Pricing, Supervalu
“Storewars strengthened the working relationships between our merchandising staff and the manufacturers.” Michael Terpkosh, Director, Category Management Development & Retail Pricing, Supervalu
”We don’t think this much at work. Storewars gave us a first-hand look at problems faced daily by retailers.” Nick Jay, General Manager, Sales, Al Marai, Saudi Arabia
Programs - 2010
Retailer Sponsored
• Rite Aid• Ahold (?)
Category Management Association Sponsored
• Bentonville• Minneapolis• SF• ???
Other potential sponsors
• Other industry service suppliers• Universities – UCLA (?)
Manufacturer In-House
For More Information
Visit www.cpgcatnet.org/page/storewars/
Contact Hope Mandel – Shelton, CT
• 203-926-6926 (office)• 203-856-1330 (cell)• [email protected]