Sorrento (aeks) final v1.2

Alexey Dzybenko ▪ Evgeny Glushkov ▪ Kirill Kondakov ▪ Stanislav Orekhov

Project SorrentoTransforming Field Sales to fuel double-digit growth

SorrentoNovember 26th 2010

2

Sorrento

The Sorrento team is

Source: Sorrento CVs

Evgeny, Kirill, Stas Alexei&

HSE MIPT

HSE MIPT ITMO

MEPHI MIPT

SPB STU

3

Sorrento

Project summaryImplementation plan

4

Sorrento

Field Sales will be reorganized to respond to internal and external challenges it faces

Source: Case data, Sorrento analysis.

Consolidation of retail

Expansion of modern trade

Increase in expectations

Grow salesx2 by 2014

Improve efficiency

External Internal

Challenges Changes Structure Responsibilities Headcount Impact

5

Sorrento

We will facilitate Food/HPC cross-sales and tailor marketing strategies to sales areas

TT = Traditional trade; MT= Modern trade; SA = Sales area; MS = Market shareSource: Case data, Sorrento analysis.

Facilitate HPC/Food

cross-sales

Goal Action

Tailor marketing strategies

to SAs

TMETerritory

Marketing Executive

Introduce Territory

Marketing Executive

s

Combine Food &

HPC sales guys

except in TT

$+15% sales

(+40% in MT)

+3% MS+17% sales


6

Sorrento

We will triple the number of MTAEs and cut duplicate functions to increase efficiency


Engage emerging

MT companies

Goal

Increase efficiency

Action

Triple number of

MTAEs

Cut duplicate functions

×3

Modern Trade Activation Executives

5 15

+15% sales

Enabler


7

Sorrento

Structural changes will include introduction of TMEs and changing the role of CDAEs


RSMRegional Sales

Manager

NSDNational Sales

Director

MTAEModern Trade

Activation Exec..

MTEModern Trade

Executive

TTAETraditional

Trade Activation Exec…

CSSCustomer Sales

Specialist

TMETerritory

Marketing Executive

RMERegional

Marketing Executive TSM

Territory Sales Manager

1

15

3

3

15

30

15

15

SCSSSenior

Customer Sales Specialist

65

80

x

Federal

Regional

Sales area

FTE count


Pool of specialists

KA

KA

KAD

TTD

KATTMT

KAMT

TTMT

MTD

x Interaction: KA = Key accounts; MT = Modern trade; TT = Traditional trade; D = Distributors

8

Sorrento

A discreet split of responsibilities between hunters and farmers will be introduced


MTAEModern Trade

Activation Exec.

MTEModern Trade

Executive

TTAETraditional

Trade Activation Exec.

Develop field sales strategyCoordinate Field Sales

Negotiate with distributors in TTControl contract implementationControl promo budget for TT

Negotiate with regional partners Develop & coordinate the team

Negotiate with SA partnersDevelop pricing policyZone distributors

Develop regional trade marketing strategy

Develop regional customer marketing strategy

Adapt trade marketing strategyPlan promo activitiesNegotiate with agenciesControl agencies’ performance

Hunt for new clients in MTImplement KA strategyControl promo budget for MT

Control MT and distributors contract implementation

Control pricing and discounts

Everything CSS doesIdentify potential for new outletsDevelop exclusive sales forceAssess local retail universe

Manage sales representativesImplement promo activitiesSupport distributors’ businesses

SCSSSenior

Customer Sales Specialist

CSSCustomer Sales

Specialist

TMETerritory

Marketing Executive

RMERegional

Marketing Executive

TSMTerritory Sales

Manager

RSMRegional Sales

Manager

NSDNational Sales

Director


9

Sorrento

Transformation will result in a more lean structure with a total reduction of 25% FTEs

*Including 20% salary increase for National Sales Director, Regional and Territory Sales Managers left after combining Food and HPCTT = Traditional Trade; MT = Modern Trade; Traditional Trade Activation Executive = ~ex-CDAESource: Case data, Sorrento analysis.

Current NewFood HPC Total Total

National Sales Director 1 1 2 1Regional Sales Manager 3 3 6 3Territory Sales Manager 15 15 30 15Distribution Supervisor 3 3 6 -Regional Marketing Executive

3 3 6 3

Territory Marketing Executive

- - - 15

TT Activation Executive 16 16 32 32MT Activation Executive 3 2 5 15MT Executive 29 30 59 30Senior Customer Sales Specialist

47 35 82 65

Customer Sales Specialist 45 55 100 80∑ 165 163 328 244

Opportunity for selected MTEs to be promoted to MTAEs

Functions transferred to others, mostly MTEs and TTAEs

Former CDAEs now focus more on sales rather than operations

Food & HPC combined Food / HPC separate


–26% FTE–23% costs*

10

Sorrento

Implementation of Sorrento project will allow to double sales in Euros by 2014

* We assume Cascade targets are set in EurosSource: IMF, Переговорная №2, Sorrento analysis.

15%2= Foo

dHPC

TME

17%

МТАЕ

15%

×3

9%

19%

Market growth

Inflation, RUB

55% 30%


30%Inflation,

EURRate,

RUB/EUR9%

in EUR*

11

Sorrento

Project summaryImplementation plan

12

Sorrento

Sorrento implementation approach is focused on ensuring business continuity

* Unilever Code of Business PrinciplesSource: Sorrento analysis.

Smooth transition for clients and employees

Minimization of business disruption risk

Commitment to UL CBP*

Priorities Activities Clear communication and

stakeholder management Comprehensive training Providing new career

opportunities for talents

Approach Team Schedule Opportunities Results

13

Sorrento

The team should be structured in 3 groups corresponding to project’s functional areas

PMO = Project Management Office; VP = Vice-president; MT = Modern Trade; TT = Traditional TradeSource: Sorrento analysis.

PMO Project

manager Administrator

Steering committee CEO VP Customer

Development VP Human Resources Capability Building

Director National Sales Director

Communication PR Manager PR Specialist

Training HR Manager 2 Trainers 3 external

assessors

Reorganization HR Specialist 2 Capability

Building Specialists

4 functional experts (MT, TT, Food, HPC)


14

Sorrento

Implementation is structured in 3 phases each with its own distinct goal

NSD = National Sales Director; RSM = Regional Sales Manager; TSM = Territory sales manager; RME = Regional Sales Manager (ex-CME); TME = Territory Sales Manager; TTAE = Traditional Trade Activation Executive (~ex-CDAE); MTAE = Modern Trade Activation Executive; MTE = Modern Trade Executive; (S)CSS = (Senior) Customer Sales Specialist; DS = Distribution SupervisorSource: Sorrento analysis.

1. Organization 2. Initiation3.

Transformation Plan and prepare Revise duties -1 NSD

MTE, SCSS, CSS CDAEs → TTAEs +10 MTAEs

NSD, RMS, TMS Introduce TMEs

Combine Food & HPC for position

Jan 11 Mar 15 Apr 15 Jul 18 weeks 8 weeks 8 weeks


15

Sorrento

C-level

PMO

PR Group

Training

Group

Reorg. Group

The first phase will lay the groundwork for change

Mar 1Jan 1 Feb 1

Source: Sorrento analysis.

Dev. of Communication Strat.

Dev. of new KPI SystemConsolidation of staff perform. data (CRM, KPI, etc)

BoD Meeting, dismiss 1 NSD

Set up PM team

Develop project plan

Assemble project workgroups

Dev. of Training Program


16

Sorrento

C-level

PR Group

Training

Group

Reorg. Group

The second phase will introduce changes at federal and regional level

May 1Mar 1 Apr 1


Recruiting and introduction of TME

Video letter from NSD

Communication campaign (presentation, press-releases, news etc.)

RSM Assessment

TSM Assessment

TSM RSM FOOD+HPC Training

NSD TSM RSM Change Manag. Training


17

Sorrento

Training

Group

The third phase will cover the hard work of bundling HPC/Food and cutting headcount Jul 1May 1 Jun 1


MTE Assessments

MTAE Sales Force training

S/CSS Training, E-learning

MTAE MTE HPC+FOOD Training

S/CSS Assessments


PMO, Communication and Administrative processes runs in the background until the end of the project

18

Sorrento

There will be several options for redundant employees to stay with Unilever

NSD = National Sales Director; RSM = Regional Sales Manager; TSM = Territory sales manager; RME = Regional Sales Manager (ex-CME); TME = Territory Sales Manager; TTAE = Traditional Trade Activation Executive (~ex-CDAE); MTAE = Modern Trade Activation Executive; MTE = Modern Trade Executive; (S)CSS = (Senior) Customer Sales Specialist; DS = Distribution SupervisorSource: Sorrento analysis.

NSD RSM TSMCDA

EMTE SCSS CSS DS

Vacant positions in Unilever and outplacement

Relocation abroad

Other positionin Field Sales

TME

Promotion MTAE

MTAE


19

Sorrento

In 6 months Field Sales will be a more efficient unit ready for double-digit growth


FTE -26% HR costs -23% Duration: 6 months

Market share +3% in 3 years Sales revenue +100% in 3 years

Implementation costs 550 000 EUR: Compensations 300 000 EUR Consultants 150 000 EUR Other 100 000 EUR


That’s itQuestions, please!

Sorrento

21

Sorrento

A risk mitigation plan will be developed in December to address major project risks


Backup

Risk Impact Mitigation

Dismissed NSD leaves ungraciously

Medium

Engage NSD from EU

Negative gossip spreads

HighPlan communication strategy ahead

Regional staff structure becomes unbalanced

HighEmploy consultants to perform sales force sizing

Excessive staff workload

Low Increase headcount

Sorrento (aeks) final v1.2

Documents

Transcript of Sorrento (aeks) final v1.2