1. “DNA” Team St. Petersburg State University Graduate School of Management NadezhdaKomarova Evgeniya Osina Denis Skolota Mikhail Pleshakov

2. “Restructuring the Sales Department”

3. Agenda

6. Growth Drivers

7. UNILEVER’S Field Sales division

9. Appointment/termination of distributors

10. Identification of external threats;

11. Promotion strategies development;

12. Creative idea development;

14. Generation and evaluation customer options;

16. Control over channel activation budget

17. Optimization of exclusive sales representatives;

18. Analysis of sales data;

19. Monitor distributor payment position;

20. Control price policy by distribution;

21. Implementation of launch plans;

22. To arrange control over promotion;

23. To work out the schedule of field visits;

24. Implementation of launch plans;

25. To arrange control over promotion;

26. Coordination of Service Agencies work;

27. Execution of MTE agreements;

28. Negotiation with distributors;

30. Assigning Project group Restructuring Plan

31. Strategy development and project of restructuring

32. Main Criteria underlying geographical division: Population density Economic areas of the country Consumption activity of population within each region

33. Suggested Regional Division Sales Areas: 17 2 1 2 4 2 3 3 The main criteria: TO BE CLOSER TO CONSUMER and TO THE MARKET!

34. Strategy development and project of restructuring

35. Getting over other shortcomings HPC Food 1) Combination of units 2) Simplification of structure 3) Reduction of double work 4) Developing of efficient communication

36. Strategy development and project of restructuring

37. Headquarter Marketing Department Field Sales Department size: 7 RSM, 16 TSM, 7RMM Food + HPC RSM Regional Sales Manager RMM Regional Marketing Manager TSM Territory Sales Manager TTAE Traditional Trade Activating Executives MTAE Modern Trade Activating Executives DS Distribution Supervisors CSS Customer Sales Supervisors Sales Representatives HPC CSS Customer Sales Supervisors Food

39. Unilever’s employee policy

40. Reassignments

41. Clarifying the situation and presenting the plan (prevention of law suits)

42. Benefitsplan

44. Media and Press

45. Marketing DepartmentCommunication plan! Meetings plan Principles of Decision making Implementation plan Identifying threats (Environmental)

46. Project of restructuring Roles description and key performance indicators Regional Sales Managers: 6+1(regional-territorial) Location: in regions; in key SA Key performance indicators: turnover per capita (regional), turnover per employee in the region, compound growth of sales in the region General Responsibilities: Strategic decisions, appointment/ termination of distributors, value credit limits, sales forecast, price changes, coaching of TSM, identification of threats and weaknesses, communication with CMD and subordinates; Regional Marketing Managers: 7 Location:Moscow with business travels to regions Key performance indicators: Market share per segment General Responsibilities: Development and implementation of Trade marketing plans, communication with Head Marketing Department, analysis of region specifics in order to adapt the head marketing campaign to it, promotion strategy development, establishment of efficient communication. Territorial Sales managers by Sales Territory: 16 Location: SA Key performance indicators: turnover per capita (SA), turnover per employee in the SA, compound growth of sales in the SA General Responsibilities: Strategic development for each SA, implementation and control of the price policy, to ensure timely payments by Partners within SA, communication establishment, control function.

47. Project of restructuring Roles description and key performance indicators Work with Retailers Traditional Trade Activating Executives: Location: in SA Key performance indicators: turnover per capita (regional), turnover per employee in the region, compound growth of sales in the region General Responsibilities: work with traditional channels, control installation and efficient usage of promotion materials, conduct efficient Temporary Price Reduction (TPR),analysis of results of work with TT, arrange the implementation of the special channel specific POS / shelf blockers / floor displays to be executed in the best places in the POPs Modern Trade Activating Executives: Location: in SA Key performance indicators: turnover per capita (regional), turnover per employee in the region, compound growth of sales in the region General Responsibilities: work with modern channels, control installation and efficient usage of promotion materials, conduct efficient Temporary Price Reduction (TPR),analysis of results of work with MT, arrange the implementation of the special channel specific POS / shelf blockers / floor displays to be executed in the best places in the POPs, establishment of relations with potential Key Accounts

48. Project of restructuring Roles description and key performance indicators Work with Distributors Distribution Supervisors: Location: in SA Key performance indicators: turnover per capita (regional), turnover per employee in the region, compound growth of sales in the region, dynamics of purchase volumes General Responsibilities: Communication, control the distributor’s stocks and analyze potential orders, control over price, organization of sales representatives work, negotiate an investment expansion of Distributor. “Control of implementation” function Customer Sales Supervisors: Location: in SA Key performance indicators:turnover per one employee, quantity of sales outlets covered, secondary sales, innovations General Responsibilities: control over stock availability (SKU), minimization of sales lossses, organization of efficient merchandising system, control over price (permanent analysis of dynamics of our and competitor prices), promotion in the field (explanation of advantages, control and implementation of agreements) Sales Representatives (employed by staffing agencies) Key performance indicators: Permanent availability of stock

49. Project of restructuring Number of employees required 1) Number of required staff in Sales Area: (Calculations based on SPb Sales Area headcount) Traditional (TTAE)= 3 Modern (MTAE)= 5 Distributor Supervisor (DS) = 2 Customer Sales Supervisor (CSS) = 10 Total=20 2) Number of Staff per 1% of Total Sales in Russia Number of Staff per Sales Area based on their Sales volume 3) Step-up coefficient for Regions in the European part of Russia (higher density of population): 1,2 4) Total number of employees required: 427

51. Integrity

52. Law-obeying

53. “Trust and respect” atmosphere

54. Committed to healthy and safe working conditions

56. Give a chance to each employee

59. Media and Press

61. Outcome:

62. Participants: TAE+ MSAE +MTAE, TSM+ DS

63. Frequency: once a month

64. Format: meeting( face to face), on-line conferencesCOMMUNICATION PLAN! Interrelations are very important! PRINCIPLES OF DECISION-MAKING

70. bulk sales

71. free samples tests

73. Scenario Analysis