3. Objectives
Increase sales by 100% in immediate 3 years
Restructure field sales unit to streamline growth
Formulate the transition plan
Identify criteria for a successful completion
3
4. Outline
Market Analysis
Proposal
p
Transition & Steps
Anticipated R
A i i d Results
l
4
5. Market at a Glance
Market Analysis
Growth in GDP: 4 18%
G th i GDP 4.18%
Proposal 4 times less stores per person in Russia
than in Eastern Europe
Implementation
Results Modern trade market share is expected
to grow from 23% to 27%
FMCG is slowing down
5
6. Trading Up
An Important Driver of Growth:
Market Analysis
• High income elasticity in HPC
Proposal • Nominal wages are growing faster than CPI
Implementation • In the short-run the amount of shelf space is fixed
Results
Nominal wage
CPI
2009 2010 2011 2012 2013
6
7. Unilever Growth Drivers
> Especially in Ukraine & Belorussia
Acquisitions
Market Analysis Retail Convergence Earnings & Wages
> The ratio of people
Proposal per store is converging
> Growing faster than CPI
g
to Western levels
Future
Implementation
Sales
Results > Per capita income is below > More Trading Up
the Western level opportunities
GDP Growth Market Dominance
Grow Own Manufacturing
> An obvious way to increase turnover
7
9. Leave everything “as is”?
No unexpected problems
Market Analysis
Growth driven by market ≠ doubling the sales
Proposal Competition th t
C titi threat
Implementation
Results
9
13. Double the workforce?
Staffing Issues
Market Analysis
Expensive
Proposal
Not clear that it will actually help us
Implementation reach our target in sales
Results
1+1 < 2
13
14. Possible Options
Leave Everything
y g Increase the Corporate
“As Is” Workforce Overhaul
Structural Business Flow
Changes Optimization
14
15. Structural Changes in Field Sales
Join Food & HPC at the very top level
Market Analysis
Proposal Divide Russia into 6 macro-regions
Implementation Focus staffing efforts on modern trade
Results
15
16. FOOD & HPC - Why Kept Separate?
Historically:
Market Analysis
• Factories, Distributers, Delivery, and Warehouses
Proposal
are all separate
ll t
Implementation
Different people responsible for purchasing of
Results FOOD and HPC
700 products
p
16
17. Join FOOD & HPC
Right now clients don’t always know who exactly
don t
Market Analysis works with them on Unilever’s side
Our Solution:
Proposal
One executive works with each store/chain
Implementation We will leave lower-level sale representatives as is
Results
?
FOOD
HPC
17
18. Structural Changes in Field Sales
Join Food & HPC at the very top level
Market Analysis
Proposal Divide Russia into 6 macro-regions
Implementation Focus staffing efforts on modern trade
Results
18
20. Structural Changes in Field Sales
Join Food & HPC at the very top level
Market Analysis
Proposal Divide Russia into 6 macro-regions
Implementation Focus staffing efforts on modern trade
Results
20
21. Workforce reallocation to MTAE
Modern trade market share is increasing
Market Analysis from 23% (in 2009) to 27% in 2013
Proposal Raise quality of analysis for clients
Implementation
Gain additional shelf space
Increase the number of MTAE from 5 to
Results 24
21
22. Possible Options
Leave Everything Increase the Corporate
“As Is” Workforce
W kf Overhaul
O
Structural Business Flow
Changes Optimization
22
23. Business Flow Optimization
Implement e-CRM system
Market Analysis
New reallocation of marketing budget
Proposal
Implementation
Results
23
24. Implement e-CRM system
Market Analysis
Accounts and Contacts
Proposal
Marketing d Leads
M k i and L d
Implementation
Results
Analytics and forecasting
Mobile
24
25. Business Flow Optimization
Implement e-CRM system
Market Analysis
New reallocation of marketing budget
Proposal
Implementation
Results
25
26. More freedom for Marketing
tailored marketing solutions
Market Analysis
more satisfied clients
Proposal
efficient fund relocation
Implementation
Results
risks of control (fraud)
inefficient uses of funds due to
unmotivated personnel
p
26
27. Marketing Budget Reallocation
Today:
Market Analysis
advertisement campaigns managed from the
Proposal center
Implementation local marketing needs are not realized
Results many inefficient solutions
What we suggest:
70% of marketing budget to be used for central
campaigns
30% of marketing budget to be used by MTE for
local marketing opportunities
27
28. Possible Options
Leave Everything Increase the Corporate
“As Is” Workforce
W kf Overhaul
O
Structural Business Flow
Changes Optimization
28
29. Suggested Structure
National
N ti l
Market Analysis Sales
Director
Proposal
Regional
Implementation Sales
Manager
g
Results
Customer Territory
Marketing Sales
Executive Manager
MTE MTAE DS CSS
29
30. In Summary: Proportion of Drivers in
Growth
Market Analysis
Up-selling HPC+FOOD
Proposal Market Growth
M k tG th
13% 27%
Implementation 13%
Results 12%
16%
8%
CRM 11%
Regions
Marketing Budget
Modern Trade Focus
30
31. Transition Plan: Two Options
Pilot Project
Market Analysis
Transition Immediately
Proposal
Implementation
Results
31
32. Pilot Project
Can Adjust the Strategy based on
Market Analysis
Bad and Good Outcomes
Proposal Rumors: before we complete the pilot
Implementation project, all the top personal might
leave the company for competition
Results
Takes a long time
32
33. Restructure Immediately
Best employees will be kept
Market Analysis
Faster
Proposal
No need to keep information private
Implementation Risking major mistakes that can
Results
frustrate
f t t our clients as a result of a
li t lt f
drop in sales
33
34. Forecasted revenue growth by
factors
Market Analysis Unilever current revenue, bn rub 27.54
Proposal Unilever revenue growth due to:
g 2011 2012 2013
Implementation
FMCG market growth 3.94% 4.11% 4.29%
3 94% 4 11% 4 29%
Results
Unilever revenue 28.63 31.31 37.01
Corporate overhaul
C t h l 4% 9% 15%
Unilever revenue 29.77 34.12 42.56
Business flow optimization 1% 4% 6%
Unilever revenue 30.07 35.49 45.12
34
35. 2013 results
By implementing suggested changes
Market Analysis
Unilever will have revenue growth from
Proposal 26.50
26 50 bn rub in 2009 to
Implementation 45.12 bn rub in 2013 (in 2009 prices)
Results
Overall growth will be around:
63%
35
36. In Sum: Our Unique Growth Formula
Market Analysis
Proposal
Implementation Food + HPC
Regions
Market
Growth
Results Trading Up
Modern trade
Focus
e-CRM
Marketing
Changes
36
