Customer Insights and Industry Pperformance Benchmarking

1. Discussion Document
Retail Market Feedback and Supplier Performance
Review
Prepared by
Mark Ferguson
Managing Director
Strategic Horizons
www.strategic-horizons.com.au

2. Topics for Discussion
Background to our Business
Business.
Overview of @ The CoalFace
Review
Objectives Insights framework
Supplier & Channel
Market Benefits
Approach Framework
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3. 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
3
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4. Background to the Review
• In a time of change within the Modern Retailer Channel ,exhibiting
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.
• The
Th review will provide R t il
i ill id Retailers view as t h
i to how suppliers view th i
li i 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.
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5. 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
• To identify the Burning Issues for both the Retail Groups and the Suppliers Organisation in
T id tif th B i I f b th th R t il G d th S li O i ti i
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
within the business – preparing the business for future growth
5
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6. 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
6
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7. Some current realities… Retailers & Suppliers
obtained from previous programs
The Retailers
The focus should be on
I need less suppliers but Growth –Innovation / NPD
Innovation
also suppliers who base – Supply Chain
plans on Category Advice Effectiveness – Inventory
– not just what’s important Levels
to the them
The Suppliers I have invested
heavily in my field
The 'plan', in general terms, is sales team – but it
not communicated and seems does not appear to
to have a high degree of 'make have an impact with
p
it up as we go'' some of my
customers
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8. 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 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 effective in Are our field Sales
Are we getting our How does that relate to
teams and Category
rightful share of what’s important to delivery plans which
Planning Abilities able to
Trade support across
pp y
your customer drive growth give us an advantage
the region or by
Business format
The Outcomes – To develop Action Plans directly from the feedback and have this
p y
developed further within the business – preparing the business for future growth
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9. Structure of Insights
ATC – Review includes Relationship Management
elements fundamental to •Objectivity, trust & respect
both retailer and the •Drive the relationship
supplier in establishing •Multifunctional access
successful Trading •Alignment to Channel
Relationships
Supply Chain/Corporate Brand Development and
•Awareness of issues Marketing
•Service Delivery measures •New line development involvement
•Accurate information •Consumer/Shopper insights
•Corporate Governance •Trade Marketing & Promotions
Quality
Q alit of Personnel
Pe sonnel Customer
•Professionalism Management
•Product Knowledge •Customer plans
•Business acumen •Resource allocation
•Passion & enthusiasm •Proactive relationships
•Genuine Category perspective
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10. How are the Benefits Defines – for the Retailer
Benchmarked outcomes to
understand where the • Confidential Evaluation of the Burning
competitive strengths are and
what areas can b focused on
h t be f d Platforms
to widen the competitive gap
Identifies where the business
can leverage their trading • Comparison across the Trading
relationships with suppliers to
create a competitive Group(Competitive set )
advantage
Suppliers will understand how
to engage with your business • Delivered via the expectation s against
more effectively on the issues the attributes
that matter-
The business can to utilise the • Direct Input into Trade partner programs
outputs to evaluate suppliers
and manage them according • Supplier performance and evaluation
to your strategy across attributes and within the categories
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11. The Business Need – Senior Supplier
Comments
• Why
– “D
“Development of our S l T
l t f Sales Teams across A i i a k
Asia is key priority f 2007 / 2008 if
i it for 2008,
we are to realise our Growth Potential in the next 5 years”
• CEO - Personal Care Supplier
– “Thi Cli t & C
“This Client Competitor B
tit Benchmarking (M k t Best P
h ki (Market B t Practices) will form the
ti ) ill f th
foundation of our Commercial Customer Team development
• Regional Customer Development Director – Beverages
– “B seeking di
“By ki direct f db k we will provide th business with a clear i di ti
t feedback ill id the b i ith l indication
of what is truly important within our Client’s business”
• Sales Director – Beverages Category
– “Th outputs will assist i d
“The t t ill i t in developing an approach as to how we can b tt
l i h t h 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 ”
• Director Learning and Development – PersonalCare
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12. The Business Need – Senior Supplier
comments
“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 - P
CEO Personal C
l Care S
Supplier
li
“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
difference”
“We are looking to support this consistently by modifying and
g pp y y y g
advancing our Capability ”
•Director Learning and Development – Personal Care
© Strategic Horizons Pty Ltd All rights reserved Building Capability