CONTENTS
1. Industry landscape and challenges in managing performance
2. An effective way through a challenging landscape
3. The winning proposition
4. How to find out more
CONTENTS
1. Industry landscape and challenges in managing performance
2. An effective way through a challenging landscape
3. The winning proposition
4. How to find out more
A combination of industry-wide issues and internal factors are impacting businesses’ performance…
A challenging industry landscape Some of the most pressing issues in CEOs’ mind
Long-term market price deflation
increases P&L volatility and erodes
profit margins
Highly promoted market with
increased shopper promiscuity and
intensified retail price war
High proliferation of brands and
commoditisation of the lager
category is eroding brand equity
Changing consumer taste and a
growing shopper attitude towards
experimentation among younger
drinkers further diminish loyalty to
traditional lager brands
Difficulty in objectively assessing the impact
of internal forces and team dynamics on
performance
Challenge in connecting detailed
performance metrics with the full P&L
Focus on creating strong innovation
pipelines and brand building activities that
keep the business from getting into trading
wars that further deflates the market
How to inject brand value back into the
portfolio through effective new launches and
an holistic brand portfolio strategy
Need to rebalance trade and above the line
investment to focus on base sales growth
through the role of the shopper and
consumer
…with companies facing some long-lasting roadblocks in their quest for growth…
DIFFICULTY IN CONTROLLING TRADE SPEND VOLATILITY AND LIMITING ITS IMPACT ON
MARGIN EROSION
1Example 2Example
INTANGIBLE INEFFICIENCIES CAUSED BY INHERENT FLAWS IN BUSINESS FOUNDATIONS
How do you measure the impact of collaboration and cross-functional interaction on your ability to perform in the market?
How do you evaluate how fit for purpose your organisational structure, processes and tools are in enabling growth?
How do you measure and create linkages between certain culture enablers and actual activities in the growth agenda?
Lack of visibility of true impact of price increases on long-term cost of trade
Inability to clearly ascertain which activities are growth enablers and which are growth detractors
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
2005 2006 2007 2008 2009 2010 2011 2012
An example of beverage company
Trade Top 4 Trade Exc Margin GiveTop 4 Margin %Top 4 Trade % of GSV
CONTENTS
1. Industry landscape and challenges in managing performance
2. An effective way through a challenging landscape
3. The winning proposition
4. How to find out more
CEO’s can cut through the complexity and implement a new approach to bring clarity on growth enablers
Have a repeatable process to evaluate the foundations’ impact on driving growth for the business
Develop a simple and actionable priority list of the most impactful enablers of growth to drive change and reduce inefficiencies
Achieve high level of clarity as to what drives growth and what detracts from it amongst the current activities of the business
1
2
3
Achieve high level of clarity as to what drives growth and what detracts from it amongst the current activities of the business
1
A clear process to decompose the structure of the P&L and the sources of growth
Evaluation of each of the current activities toward company performance
Assessment of external vs internal causes and linkages to foundations
+ 2% - 5% - 2% - 2% + 10%
NPDs Loss in Distribution
Loss of Listing
Structural Increase in Cost of Trading
Net Price Realisation
WHAT MAKES OR BREAKS GROWTH?
- 3%
Brand Loyalty
2
Alignment of PEOPLE’s skills with business requirementsAbility to
constantly monitor the
COMMERCIAL ENVIRONMENT
Best ORGANISATIONAL
STRUCTURE for cross-functional
collaboration
CohesiveCULTURE and
WAYS OF WORKING to retain talent
Fit for Purpose ASSETS &
CAPABILITIES to support growth
agendaPerceived strength of
VALUE PROPOSITION in
the market
A combination of impartial assessment of capabilitiescoupled with qualitative statements extraction from within the teams (via interviews and targeted workshops) to arrive at a fair and holistic overview of the impact of each of these pillars on growth, benchmarked against industry peer group and best-in-class
EXAMPLE OF KEY ORGANISATION’S PILLARS AFFECTING GROWTH
Have a repeatable process to evaluate the foundations’ impact on driving growth for the business
3Develop a simple and actionable priority list of the most impactful enablers of growth to drive change and reduce inefficiencies
A clear overview of the most critical external and internal material issues based on their impact on financial performance that provides the ability to effectively prioritise future actions and subsequent improvement programmes
Red: Severe Problems exist or future problems may arise
Yellow: Business foundations can be improved to a healthier level to contribute towards achieving growth
Green : ‘healthy’ components for the time being
CULTURE &WAYS OF WORKING
EXAMPLE OF SCORECARD TO IMPLEMENT AND MONITOR IMPROVEMENT PROGRAMMES
CONTENTS
1. Industry landscape and challenges in managing performance
2. An effective way through a challenging landscape
3. The winning proposition
4. How to find out more
What is the most effective way to achieve this?
LOW COST
RAPID ASSESSMENT
LOW IMPACT ON BAU & RESOURCES
ACTIONABLE OUTCOME
OUTSIDE-IN THINKING AND OBJECTIVITY
CONTENTS
1. Industry landscape and challenges in managing performance
2. An effective way through a challenging landscape
3. The winning proposition
4. How to find out more
Interested? How to find out more…
We are Fifth P. Since 2011, we’ve worked with our clients in the FMCG & consumer product industries across Europe to create growth strategies that sustain long-term growth & leave lasting legacies
+44 (0) 20 3735 5762
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