1 INNOVATION BEYOND PRODUCT DEVELOPMENT. AGENDA Wilson’s Country Brief History Few Milestones ...
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Transcript of 1 INNOVATION BEYOND PRODUCT DEVELOPMENT. AGENDA Wilson’s Country Brief History Few Milestones ...
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INNOVATION
BEYOND
PRODUCT DEVELOPMENT
AGENDA
Wilson’s CountryBrief HistoryFew Milestones
Wilson’s Country The Innovations Beyond Product Development
Business LearningsDuring innovation process
COMPANY PROFILE Established 1980’s by Angus Wilson (CEO)
Initially prepack potatoes Wilson’s Country brand for retail sector PRODUCT INNOVATION – Garden Potatoes
Processed potatoes early 1990’s Peeled potatoes for food service sector
Fresh Fruit & Veg processing early 1990’s Retail and Food Service Sector
1995 – moved from home farm to a commercial unit 2001 – what will future look like and where will we be ?
Rationalisation of sites and activities
2004 - exit from veg processing 2005 – operations all to one site 2009 – exit from fresh fruit processing 2010 – focus on prepack & peeled potatoes
FEW MILESTONES 1980’s & 90’s only packed Wilson’s brand potatoes
Spar, Stewarts, Supermac, Wellworths 1994 Supply to M&S 1996 Supply to Tesco Metro 1997 Supply to MSVC 2000 Wilson’s Brand first TV campaign 2005 Investment of £5million in new site 2008 Supply to Dunnes Stores 2009 Supply to Asda 2009 Pilot programme for Investors in Innovation 2010 Packing of Bartlett Rooster Brand Today
£17 million turnover Just under 100 employees Handling 1000 tonnes of potatoes per week Wilson’s Country brand recognised as Ireland’s leading brand Widespread presence in multiples / independents across Ireland
Packhouse at Portadown
INNOVATION
Definition
“There are probably as many definitions of innovation as the number of supposed experts on the field around the world”.
INNOVATION
Definition
“Change that creates a new dimension of performance”.
Peter Drucker
INNOVATION
Definition
“Innovation does not relate just to new product that would come into the marketplace. Innovation can occur in processes and approaches to the marketplace.
David Schmittlien
HANDS FREE MOBILE !!
INNOVATION
PRODUCT How is it presented to your business for use? What you do with it? What do you do with non-conforming product?
PROCESS Working of the product through the business Waste streams generated from your process
MARKETING Place Price Promotion Presentation
INNOVATION
MARKETINGPresentation of Product - late 2009
PROCESSWorking of product through the business
Peeling potatoes – Sept 2010
Waste streams from productionWater – current project
MARKETING
Market research in 2008 / 09 identified that just under 50% of consumers did not purchase their potatoes with their main shop
Embarked on a process of why Reason clearly
PresentationFormat
Launched a new packaging format Product still the samePlace the same
MARKETING
14
FAMILY OF VARIETIES
© Kantar Worldpanel
Total NI Potato Performance
52 w/e 16 May 2010 – Value is down in the NI potato market as people limit
the amount they purchase.
Worldpanel KPI Reporting
KM Performance
Total Potatoes - Total outlets Value down 6.1% worth €3028k52 w/e 17 May 09
52 w/e 16 May 10
Actual Change
% Change
Expenditure (€000s) 49232.80 46205.30 -3028 -6.1Volume (000s Kgs) 94152.20 85877.74 -8274 -8.8Penetration % 96.90 96.00 -0.90 -0.9Purchase Frequency 40.60 40.40 -0.20 -0.5AWP (Spend per Buyer) 76.50 71.40 -5.10 -6.7AWP (Kgs per Buyer) 146.30 132.80 -13.50 -9.2Trip Spend 5.80 5.30 -0.50 -8.6Trip Volume (Kgs) 3.60 3.30 -0.30 -8.3Price per Kg 0.52 0.54 0.02 3.8
* Penetration contribution includes Population growth of 1.5%
Contribution = -€273k
Purchase Frequency
Contribution = -€4622k
96% -0.9%132.8 Kgs -9.2%
40.4 trips -0.5%Trip Volume (Kgs)
3.3 Kgs -8.3%
Expenditure (€000s)€46.2m -6.1%
Decrease of €3028k
Volume (000s Kgs)
Penetration % *
Contribution = -€4895k Contribution = €214k
AWP (Kgs per Buyer)
85.9m Kgs -8.8% €0.54 +3.8%Price per Kg
Contribution = -€4681k Contribution = €1654k
-6000 -5000 -4000 -3000 -2000 -1000 0 1000 2000 3000
Penetration % Purchase Frequency
Trip Volume (Kgs) Price per Kg
© Kantar Worldpanel
How are Wilsons growing?52 w/e 16 May 2010 Growth is coming from new shoppers returning more frequently and putting more volume in the basket as well as attracting new shoppers to the brand
Worldpanel KPI Reporting
KM Performance
Wilsons Country - Total Outlets Value up 351.1% worth €6559k52 w/e 17 May 09
52 w/e 16 May 10
Actual Change
% Change
Expenditure (€000s) 1867.80 8426.30 6559 351.1Volume (000s Kgs) 2272.57 14294.44 12022 529.0Penetration % 44.00 77.00 33.00 75.0Purchase Frequency 4.60 11.00 6.40 139.1AWP (Spend per Buyer) 6.40 16.20 9.80 153.1AWP (Kgs per Buyer) 7.80 27.60 19.80 253.8Trip Spend 3.80 3.90 0.10 2.6Trip Volume (Kgs) 1.70 2.50 0.80 47.1Price per Kg 0.82 0.59 -0.23 -28.0
* Penetration contribution includes Population growth of 1.5%
Contribution = €3630k
Purchase Frequency
Contribution = €1228k
77% +75%27.6 Kgs +253.8%
11 trips +139.1%Trip Volume (Kgs)
2.5 Kgs +47.1%
Expenditure (€000s)€8426k +351.1%
Increase of €6559k
Volume (000s Kgs)
Penetration % *
Contribution = €4858k Contribution = €2017k
AWP (Kgs per Buyer)
14.3m Kgs +529% €0.59 -28%Price per Kg
Contribution = €6874k Contribution = -€316k
-1000 0 1000 2000 3000 4000 5000 6000 7000 8000
Penetration % Purchase Frequency
Trip Volume (Kgs) Price per Kg
MARKETING SUMMARY
A successful innovationBUTThis packaging format was industry standard
20 years ago!Does innovation always mean re-inventing
the wheel?Lesson
Continually respond to the market needs ahead of your competitor
4 X 4 DE-LOREAN
PROCESS - peeling
Background Peeled potato volume sales increasing Introduce additional shifts Great news
more sales better utilisation of assets
Division evolving as sales evolve Division operationally becoming very busy Know the time to
“step back out of the trees to see the forest” Evolution has a time and place but can lead to
INEFFICIENCY and the need for REVOLUTION
PROCESS - peeling
So what happened? Process started at European exhibition Feb 2009
Reviewed Equipment that is available Company visit to GB business May 2009
To build general knowledge – some equipment Company visit to German business Sept 2009
Very similar to our business scale and working the new equipment
Order placed Feb 2010 Installation Sept 2010
PROCESS - peeling
Fully integrated computerised systemPeelingOptical sortingRe-peelingSizingCutting optionWashing
PROCESS – peelingSUMMARY
Successful Innovation Contingency into businessLabour savingYield gainBetter product
This was new innovation to us but :-technology was proven in other markets
LessonRevolution sometimes better than Evolution
PONYTAIL NO PROBLEM
PROCESS – waste stream
Water Business uses a lot and discharges a lotMoney £120,000 / yr approx
Considered options around recyclingConventionalNot so conventional
Electro coagulation
PROCESS – waste stream
EC Benefits v ConventionalOn paper
Not as capital intensiveSmaller footprintLess running costsAbility to recycle 75% of our waterAbout to go live
PROCESS – waste stream
Success yet to be determinedTechnology new to marketTechnology new to businessUnknown territoryBusiness risk increasedForward looking to a new way
Invention more than innovation
Another Innovation
Variation on a Pritt Stick
BUTTER PRITT
LEARNINGSLEARNINGSLEARNINGSLEARNINGS
BUSINESS BUSINESS
BUY INBUY IN
1. OBJECTIVES
• Someone will need time to think and review• What are you currently doing ?• How are you currently doing it?• Where are you wanting to get to ?• Is there another way ?• Can we do it better ?• Time to visit other companies / exhibitions• INNOVATION WILL NOT HAPPEN
– By itself– In 5 minutes on a Friday afternoon
2. OUTCOME
• Is the business prepared to :-• Implement the findings
– Or is it just an exercise
• The norm may be challenged• Take a calculated risk
– Innovation or Invention
• Know the reasoned goal / benefit– Clarity around before and after
• Spirit MUST be there
3. IMPLEMENTATION
• Capex may be required• Change in custom and practice• Consequences
– People Issues– Customer Issues– The way we do things
• Clarity around the objective / goal
4. MONITORING
• Clarity around starting point• Clarity around innovation
– Measurement – Deliverables
• Know when to change tack• Know when to stop
SUMMARY
• You need someone with “that” skill set• If you don’t have it, procure the skill • Provide a culture / space for the process• Put on business agenda• Support process at every step• Communicate the progress• Be prepared to change norms• Have clarity around the end goal• Be prepared to say stop• CELEBRATE THE SUCCESS
INN0VATIONINN0VATIONINN0VATIONINN0VATIONTHANK YOU FOR LISTENINGTHANK YOU FOR LISTENING
Don’t get caught out Innovate or Die !
Oh ……….