@the CoalFace Benchmarking Brief

Discussion Document Discussion Document

Retail Market Feedback and Supplier Performance Review

Prepared by Prepared by Mark Ferguson

Managing Director

Strategic Horizons

www.strategic-horizons.com.au

Topics for Discussion

Background to our BusinessBackground to our Business.

Overview of @ The CoalFaceReview

Objectives Insights framework

Approach Supplier & Channel

Framework Market Benefits

© Strategic Horizons Pty Ltd All rights reserved Building Capability

Background to Strategic Horizons

• Through a joint venture between two leading Consumer and Retail Sector Consulting

companies, @the CoalFace Review (ATC) , has been created.

• We have brought together the relevant skills and experience based on-going

successes across a number of channels and markets.

• Skilled Sales & Marketing practitioners from within the FMCG market

• Retail Directors and Merchants from Australian and International Retailers

including :Shell – 7/11 – Dairy Farm Asia - Bunning’s/Mitre 10

• Backed by sound and stable research principles from senior research leaders

ie Research International.

• National and Global market Coverage within the core team .g

• The Goal of ATC :is to investigate what is truly important in the retail environment

and then ensure these priorities are turned into action and benefits for both suppliers

and Retailers


and Retailers

3

Background to the Review

• In a time of change within the Modern Retailer Channel ,exhibiting consolidation and growing strength of centrally coordinated retailers consolidation and growing strength of centrally coordinated retailers, having supplier support with a point of difference will ensure independent groups maintain their share of voice and presence in the market.

Th i ill id R t il i t h li i th i • The review will provide Retailers view as to how suppliers view their engagement with the key Retailers across Australia , this will be balanced by a view/comparison of the Suppliers servicing the market.– I.e. provide the supplier community with an indication of what is truly

important in today's market place.

• The project or review will be marketed as @TheCoalface Review, which is current an operating brand managed by Strategic Horizons.is current an operating brand managed by Strategic Horizons.


What is this all about - establishing Relevance with the Customer

• To determine from the Retail community, insights on what they believe are the Key Drivers & Priorities and have the same defined by the Supplier Community

T id tif th B i I f b th th R t il G d th S li O i ti i • To identify the Burning Issues for both the Retail Groups and the Suppliers Organisation in the context of the competition gathered via a focused feedback process

• Retailers within Market

• Are we the preferred Group for business development opportunities

• Are we considered to be the platform for Collaborative product development

• Are we seen as first choice for new product offers p

• Supplier to that Channel

• Are we effective in delivery plans which drive growth with our customers

• In what areas of the relationship can we develop a competitive advantage

• Are we easy to business with !

• To draw Action Plans directly from the feedback and have this developed further


• To draw Action Plans directly from the feedback and have this developed further within the business – preparing the business for future growth

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Current Programs & Ongoing Programs

ATC reviews currently conduct events within AUS & NZ

Market Place

•Grocery & Convenience Channel – NZ 2007 & 2008 - support by key Groups •Industry benchmark as supplier awards within the Petrol & Convenience Channel•Automotive Accessories Market 2009/2010•Electrical Retail market 2010

ATC Reviews Europe 2009 – 2010

•House Hold Cleaning segment •Europe – USA – France , Germany , Spain ,UK ,Australia

ATC Reviews in Asia provides Channel data 2007/2008/2009

•Leading Health & Beauty Suppliers - Pharmacy & Hypermarkets


•Confectionary - Hypermarkets & Convenience

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Some current realities… Retailers & Suppliers obtained from previous programs

I need less suppliers butThe focus should be on

Growth Innovation / NPD

The Retailers I need less suppliers but also suppliers who base plans on Category Advice – not just what’s important

to the them

Growth –Innovation / NPD – Supply Chain

Effectiveness – Inventory Levels

I have invested heavily in my field sales team – but it does not appear to

have an impact with

The 'plan', in general terms, is not communicated and seems to have a high degree of 'make

'

The Suppliers

psome of my customers

it up as we go'


Objectives for @the COALFACE REVIEW© - a balanced view

Our aim is to provide an independent industry representation where views are collected and collated to provide a measure of performance of how Trade Partners engage with your business.

Retailer : To identify the Burning Issues for our Retail organisations in the context of the competition and the insights from your Trade partners .

Senior Trading Directors and Ho Office Buyers personnel rate the performance of supplier organisations and vice versa on a range of topics.

In what areas of the relationship can we

develop a competitive advantage

Are we the preferred

For the Supplier :To determine from the Retail community insights on what they believe are the Key Drivers & Priorities for our business.

Are we the preferred Retailer for business

development

Are we getting our rightful share of

Trade support across

How does that relate to what’s important to

your customer

Are we effective in delivery plans which

drive growth

Are our field Sales teams and Category

Planning Abilities able to give us an advantage pp

the region or by Business format

y give us an advantage

The Outcomes – To develop Action Plans directly from the feedback and have this


p ydeveloped further within the business – preparing the business for future growth

Structure of Insights

Relationship Management•Objectivity, trust & respect•Drive the relationship

ATC – Review includes elements fundamental to both retailer and the

•Multifunctional access•Alignment to Channel

Brand Development and Supply Chain/Corporate

supplier in establishing successful Trading Relationships

Brand Development and Marketing •New line development involvement•Consumer/Shopper insights•Trade Marketing & Promotions

Supply Chain/Corporate•Awareness of issues•Service Delivery measures •Accurate information•Corporate Governance

Customer Q alit of Pe sonnel Customer Management•Customer plans•Resource allocation•Proactive relationships

Quality of Personnel•Professionalism •Product Knowledge•Business acumen•Passion & enthusiasm


•Genuine Category perspective

How are the Benefits Defines – for the Retailer

• Confidential Evaluation of the Burning Platforms

Benchmarked outcomes to understand where the competitive strengths are and

h t b f d Platforms what areas can be focused on to widen the competitive gap

• Comparison across the Trading Identifies where the business can leverage their trading • Comparison across the Trading

Group(Competitive set )can leverage their trading relationships with suppliers to create a competitive advantage

• Delivered via the expectation s against the attributes

Suppliers will understand how to engage with your business more effectively on the issues that matter-

• Direct Input into Trade partner programs• Supplier performance and evaluation

across attributes and within the categories

The business can to utilise the outputs to evaluate suppliers and manage them according to your strategy


across attributes and within the categories to your strategy

The Business Need – Senior Supplier Comments

• Why “D l t f S l T A i i k i it f 2007 / 2008 if – “Development of our Sales Teams across Asia is a key priority for 2007 / 2008, if we are to realise our Growth Potential in the next 5 years”

• CEO - Personal Care Supplier

“Thi Cli t & C tit B h ki (M k t B t P ti ) ill f th – “This Client & Competitor Benchmarking (Market Best Practices) will form the foundation of our Commercial Customer Team development

• Regional Customer Development Director – Beverages

“B ki di t f db k ill id th b i ith l i di ti – “By seeking direct feedback we will provide the business with a clear indication of what is truly important within our Client’s business”

• Sales Director – Beverages Category

“Th t t ill i t i d l i h t h b tt – “The outputs will assist in developing an approach as to how we can better understand their business and focus on what will make a difference”

– “We are looking to support this consistently by modifying and advancing our Capability ”


Capability • Director Learning and Development – PersonalCare

The Business Need – Senior Supplier comments

CEO P l C S li

“Development of our Sales Teams across Asia is a key priority for 2007 / 2008, if we are to realise our Growth Potential in the next 5 years”

•CEO - Personal Care Supplier

“This Client & Competitor Benchmarking (Market Best Practices) will form the foundation of our Commercial Customer Team development

•Regional Customer Development Director – Beverages

“By seeking direct feedback we will provide the business with a clear indication of what is truly important within our Client’s business”

•Sales Director – Beverages Category

“The outputs will assist in developing an approach as to how we can better understand their business and focus on what will make a better understand their business and focus on what will make a difference”

“We are looking to support this consistently by modifying and


•Director Learning and Development – Personal Care

g pp y y y gadvancing our Capability ”

@the CoalFace Benchmarking Brief

Documents

Transcript of @the CoalFace Benchmarking Brief