sales and marketing productivity team 1 added value analysis tool used in sales and marketing...
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Sales and Marketing Productivity Team 1
Added Value Analysis
TOOL USED IN SALES AND MARKETING PRODUCTIVITY PROJECTS
Sales and Marketing Productivity Team 2
The Composition Of The Presentation
CHECKLISTCHECKLIST
EXAMPLESEXAMPLES
SOFTWARESOFTWARE
INTRODUCTIONINTRODUCTION
Sales and Marketing Productivity Team 3
Overview
• What is Added Value Analysis?
• Who is involved?
• Why is AVA effective?
• How is it performed?
Sales and Marketing Productivity Team 4
What is an AVA?
An Added Value Analysis (AVA) is a systematic observation with the aim of:
• focusing everyone's energy on essential activities
• improving effectiveness of all activities by streamlining decision making and improving accountability
• achieving lasting improvements by eliminating non-essential tasks
• building commitment to ongoing improvement by involving staff in the process
Sales and Marketing Productivity Team 5
The AVA study is not:
• An attempt to get people to work harder
• A way of getting the same workload done with fewer people
• An attempt to reduce the quality of the work to the detriment of the business
What an AVA is NOT ...
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Who is involved?
All relevant Marketing, Sales and Supply Chain functions, i.e.
• Marketing manager
• Product / Brand manager
• Key Account Manager (KAM)
• Supply chain managers
• Any type of supporting function related to Marketing and Sales
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Why is an AVA effective?
• The participants generate the improvement idea in conjunction with the team
• It involves all areas in innovative thinking and idea analysis
• The management approval process ensures a fit with long term strategy
• It improves managers' cost awareness of the tasks performed
• It streamlines activities, tailoring the organisation to its workload
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Do we know which activitieswe spend our time on?
Why carry out this survey?
30% Knowledge ?
100% Knowledge
Better Decisions can be made
(Prior to Survey) (A full Time & Motion study)
(This Survey)
Sales and Marketing Productivity Team 9
The Composition Of The Presentation
INTRODUCTIONINTRODUCTION
EXAMPLESEXAMPLES
SOFTWARESOFTWARE
CHECKLISTCHECKLIST
Sales and Marketing Productivity Team 10
How is it performed?
Overview in 4 steps
Preparation with the unit heads Analysis of activities Idea generation Action plan
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Preparation with the unit heads
- Meet with the Unit / Department Heads
- Explain how the study is carried out
- Explain the role of the organization and the
expected benefits
- Explain timetable and key dates
- Show examples of results from previous projects
- Show example of documents to be used (ie: AVA form)
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Analysis of activities
Preparation phase- Define the areas of the Company to analyse and the
names of people that are going to receive the AVA
- Define the AVA form(s), adapted for the market
- Make the computer ready to input the data once the AVAs are received
- Prepare a cover letter and a sheet with instructions on how to fill out the AVA
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Analysis of activities
AVA collection phase- Send in a close envelope AVAs to participants
- Once AVAs are received verify their correctness
- contact authors to solve compilation errors, if any
AVA collection phase (2nd option)- Gather participants in group sessions
- Explain the AVA during the meeting
- Ask them to compile the AVA during the same meeting
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Analysis of activities
Process AVAs with the computer application- Input AVAs as soon as they are received and validated
- Extract reports from the system to analyse results
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Idea generation
Perform Brainstorming sessions to:- Analyse results of AVA
- Generate ideas to improve productivity and eliminate
activities with no value added
- Evaluate cost, benefits, and feasibility of ideas proposed
- Integrate ideas with other proposals coming from the project
Present ideas to management to obtain approval
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- Define timetable for implementation considering
also pilot initiatives
- Define resources needed
- Start implementation
Action Plan
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Tips ...
• Don't underestimate the time needed
• Test the forms before sending them out by someone from the local Market
• Inform people that no names will be disclosed and that results will be analysed in aggregated form
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The Composition Of The Presentation
INTRODUCTIONINTRODUCTION
CHECKLISTCHECKLIST
SOFTWARESOFTWARE
EXAMPLESEXAMPLES
Sales and Marketing Productivity Team 19
Market X: Breakdown of main Brand Management activities
• A third of brand management's time is spent in meetings (28%) and market visits (7%)
• Of the remaining 65%, consumer related activities, new products and sales are the three key activities of Brand Management
28
7.27
11
8.7
14.5
15
8.6
0
20
40
60
80
100 OTHERS
CONSUMERRELATEDACTIVITIES
NPD
STRATEGY
SALES
SUPPLY
CHAIN
MARKETVISITS
MEETINGS
Sales and Marketing Productivity Team 20
Market X: Consumer related activities
COMMUNI-CATION
3.2%
AGENCY-MEETINGS
6.3%
PROMO-TIONS 4.2%
PR & SPONSOR-
SHIP1.3%
• Involves major activities of planning and implementing communication programs and promotions
• Brand Management spends only 15% of total time on this - hence time spent on each task is low
28
7.27
11
8.7
14.5
15
8.6
0
20
40
60
80
100
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• New product development involves 14.5% of brand management time
• However time spent on each specific activity is low
Market X:New product development
TASTING
0.7%
LAUNCH
FOLLOW-UP
1.9% PLANNING &
COORD.
6.5%
LAUNCH PREPA-
RATION
0.9%
INT.
LAUNCH
1.9%
RESEARCH
0.9%
MKT ANALYSIS
1.7%
28
7.27
11
8.7
14.5
15
8.6
0
20
40
60
80
100
Sales and Marketing Productivity Team 22
The Composition Of The Presentation
INTRODUCTIONINTRODUCTION
CHECKLISTCHECKLIST
EXAMPLESEXAMPLES
SOFTWARESOFTWARE