THE ISSUE:

How to win at point Of purchase

in the Traditional Trade
There is a vast array of potential outlets with
differing needs and value to you
Routes-to-market are highly complex and
evolving, with a myriad of structured and
unstructured sales and distribution options
Your existing and emerging competitors are
rapidly shifting focus away from developed
markets to increasing their presence in high
growth Traditional Trade centric markets.
This requires an absolute focus on winning at
point of purchase
A new type of diagnostic is required to help
your people cut through the complex clutter
of results and symptoms to identify and
address root causes
Winning at point of purchase in the
Traditional Trade requires world class
understand of performance drivers in the
Traditional Trade P&L
Historical value created
Problems to fix and
how to fix them
Outlet Coverage, GfK,
Competitive Position, Channel P&L
Poor Picture Of Success compliance, ineffective
NPD, out of stocks, negative trading relationships
Are they understood?
Do customers & internal stakeholders agree?
What actions should be undertaken?
Results
Pain felt today
Symptoms
Root Causes
Our 3-D Traditional
Trade Diagnostic
is your essential tool
for root cause analysis
Our 3-D analysis tool ensures that root cause issues are
identified, rather than just symptoms
Each dimension (stakeholder perception, data,
expertise) provides unique insight into how to drive
customer performance
Once root cause issues are agreed, improved
performance can be targeted and actions automatically
generated to address these issues and deliver real
results
3-D root cause analysis
defines actions that
deliver real results
Root Cause
Analysis
Perception
3D Traditional
Trade
Diagnostic
Stakeholder
Reality
Level of
Experience
Quality of
Data
Data Expertise
Actions

$

The product architecture

directly supports
the clients business
planning process
A consistent quantitative research structure is
used to collect information, compare benchmarks
and create the financial analysis
The 3-D Diagnostic product is unique in the way it
step changes productivity in clients business
planning processes by structuring unstructured
information and automating action planning
Financial
Model
3D
Performance
Plan
Expert
Performance
Review
Client Data
Repository
Industry
Benchmark
Database
Web-Based
Stakeholder
Questionnaire
3-D Traditional Trade
Diagnostic
Business Planning
Channel
Planning
Investment
Agreement
Execution
Planning
Execution
Key stakeholders (internal & customer)
deliver feedback on performance
through our web-based quantitative
research tool
Existing data (brand plans, customer
presentations, raw data) is analysed by
CA to understand if stakeholder
perception is valid
Nominated experts challenge
stakeholder perception and data
analysis to create a final 3-D root cause
analysis of performance
In each performance area a current and
target level of performance is set to
define actions to shift customer
performance
A valuation model creates a direct line
of sight between planned actions,
predicted value creation and potential
investment scenarios
STEP 1
STEP 2
STEP 3
STEP 4
STEP 5
5 steps are
undertaken to create a
3-D Performance Plan
Stakeholder
does not see
the question
Order of statements
is randomised to
increase objectivity
Stakeholder sees
statements to agree
or disagree with
1. Has the potential outlet universe for the category been identified?
1The supplier has a really good understanding of which outlets are most relevant for the category it
operates in
8The supplier entirely misses some outlet locations where the category is highly relevant
2. Is the outlet universe segmented around appropriate consumption needs and/or shopping
missions (nature)?
9The supplier treats different types of outlets in different ways based on deep consumer and shopper
insight
2The supplier lacks consumer and shopper understanding at outlet level
3. Is the consumer value of each nature segment and its constituent outlets appropriately
quantified?
3I think the supplier has a good understanding of which outlet types have the biggest potential value
10The supplier seems unable to prioritise its focus on the most valuable outlets
4. Have the growth drivers for each nature segment been determined?
11Its really clear how the supplier is intending to drive growth in different ways in different types of
outlets
4The suppliers trading and activation plans tend to be one size fits all outlets
5. Are the servicing requirements of each nature segment and its constituent outlets appropriately
defined?
5 The supplier has a good understanding of how different types of outlets need to be serviced in
different ways
12 The suppliers servicing approach tends to be one size fits all outlets
6. Has the cost-to-serve for each outlet been accurately quantified?
13I think the supplier has a good understanding of total cost-to-serve for different outlet types
6The supplier has little understanding of how much it costs to service different types of outlets
7. Has the potential outlet universe been prioritised in a way that will help maximise profitable
growth?
7The supplier prioritises its investments appropriately across different outlets to drive maximum value
creation for all
14I have no idea how the supplier allocates investments for different outlets
Web-based quantitative research
collates rich stakeholder opinion
STEP1
Expertly designed web-based quantitative research tool
Seeks degrees of agreement to key statements that indicate
performance versus expertly identified customer performance drivers
Drives objectivity:
Statements are built to be intuitively understood
Provides positive and negative versions of the same statements to
examine consistency of response
Avoids tying statements directly to the customer performance drivers
Users can be any stakeholder
All functions
All grades
Local and international
Internal & external
OUTLET
SEGMENTATION
STEP2
Data is reviewed to
better understand reality
Data is both deposited on our server by the
client team and stakeholders can post
documents to the software directly in response
to submitting specific opinions.
This is existing data only - no new analysis needs
to be undertaken by the client.
=
Data is evidenced against the
quantitative research structure
to assess the validity of differing
stakeholder perceptions
1. Has the potential outlet universe for the
category been identified?
Market & category analysis
+
Advantage Group / GfK survey
+
+
Consumer & shopper research
+
Innovation pipeline
+
Activation plans
+
Organisation structure
+
Sales fundamentals
+
Operational performance
+
Financial performance
Outlet research
OUTLET
SEGMENTATION
STEP3
Expert opinion challenges
data and perception
Specific client experts are nominated to work with our experts to
provide opinion on stakeholder perception and available data in
order to create a final 3-D conclusion on each area of
performance
We agree upfront who the client experts will be for each area of
subject matter e.g. Relevant Category Opportunity = Category
Strategy Director, Trading & Activation Plans = National Sales
Manager, Supply Chain Execution = Logistics Manager and build
on their input to create the expert view
As you can see, root cause analysis only works in 3-D
Key Accounts believe relevant
outlets are missed, but people in
the supplier believe the outlet
universe has been mapped
The outlet research was skewed
towards the suppliers biggest
brands and missed relevant
outlets for smaller brands and
untapped sub-categories
The final conclusion is that Key
Accounts are right and the
potential outlet universe for the
category has not been correctly
identified
A considerable amount of
outlet research has been
conducted, which would
suggest the outlet universe
has been mapped
1. Has the potential
outlet universe for
the category been
identified?
Perception
3D Traditional
Trade
Diagnostic
Data Expertise
NO
NO
YES
YES / NO
OUTLET
SEGMENTATION
STEP4
Actions to improve performance
are agreed with key stakeholders
Once the 3-D analysis is complete, we then work with the client
experts to conduct a final interpretation of the results
In each performance area a level of current performance is agreed
using 3-D insight and a target level of performance is set, using the
structure on the page opposite
Actions are then automatically generated to shift to a higher level of
performance
AUTOMATICALLY GENERATED ACTION:
Use high level research to define the outlet universe
structure and estimate its potential size
DESIRED FUTURE PERFORMANCE
CURRENT PERFORMANCE
1. Has the potential outlet universe for the category been identified?
4. The full outlet universe for the category has been mapped using outlet level data for the overall geography concerned
3. The structure and high level size of the potential outlet universe has been defined
2. There is a good understanding of how to define the potential outlet universe for the category, but the potential outlet universe for
the category has not been defined
1. There is little understanding of how to define the potential outlet universe for the category
2. Is the outlet universe segmented around appropriate consumption needs and/or shopping missions (nature)?
4. The entire potential outlet universe has been segmented by consumption need and shopping mission to create a full view of
appropriate nature segments
3. Robust research has been conducted to identify the different consumption needs and shopping missions exhibited across the
outlet universe and priority segments have been defined
2. There is good understanding of how to segment the potential outlet universe by appropriate consumption needs and/or shopping
missions, but the outlet universe has not been segmented in this way
1. There is little understanding of how to segment the potential outlet universe by appropriate consumption needs and/or shopping
missions
3. Is the consumer value of each nature segment and its constituent outlets appropriately quantified?
4. Robust data has been collected from an appropriate sample of outlets and the consumer value of each nature segment and its
constituent outlets has been accurately estimated
3. High level research has been conducted to create insight into the consumer value of different types of outlets and a high level
value has been defined for each nature segment
2. There is good understanding of how to quantify the value of each nature segment and its constituent outlets, but the valuation
has not yet been delivered
1. There is little understanding of how to quantify the value of each nature segment and its constituent outlets
OUTLET
SEGMENTATION
STEP5
The final step is a valuation
of improved performance
Our valuation model uses an algorithm
to create a direct line of sight between
planned actions to shift performance,
predicted value creation and potential
investment scenarios
Current revenue &
profit delivered
through current
performance
Incremental Revenue
Derived From
Performance
Improvement
Incremental Profit
Derived From
Performance
Improvement
Improvement
Fund @ 1:2 Ratio
To Profit
Planning Fund At
1:4 Ratio To
Improvement
Fund
Incremental
revenue & profit
delivered through
improved
performance
1. Has the potential outlet universe for the
category been identified?
4. The full outlet universe for the category
has been mapped using outlet level data for
the overall geography concerned
3. The structure and high level size of the
potential outlet universe has been defined
2. There is a good understanding of how to
define the potential outlet universe for the
category, but the potential outlet universe for
the category has not been defined
1. There is little understanding of how to
define the potential outlet universe for the
category
PLANNED PERFORMANCE SHIFT VALUE DRIVING ALGORITHM INVESTMENT PLANNING
$

OUTLET
SEGMENTATION
Confirmation of areas of strong performance
Root cause analysis for critical areas of
underperformance
Improvement actions defined to shift current
performance to future desired performance
Planned financial outcome
As more of these are conducted, comparative internal
benchmarks can be run across performance
components, customers, markets and stakeholder
communities
3-D Traditional Trade
Performance Plan
Comprehensive report
Web-based survey can be delivered in any language in
any country
* = Incremental Annual Revenue / Contribution 4 = From Terminal To Shaping Category 1
Portfolio Proposition
Outlet Segmentation
Relevant Category Opportunity
Supply Chain Execution
Trading & Activation Plans
RTM Operating Model
Key Account Management
Cost Pricing, Terms & Conditions
Outlet Management
-
3.1
3.0
4.0
Planned Value*
Planned Contribution*
2.9
2.0
3.2
Planned Value*
Planned Contribution*
2.4
2.0
3.1
Planned Value*
Planned Contribution*
2.8
2.3
3.5
Planned Value*
Planned Contribution*
2.5
1.8
3.3
Planned Value*
Planned Contribution*
2.5
2.2
3.0
Planned Value*
Planned Contribution*
2.7
1.2
2.7
Planned Value*
Planned Contribution*
2.5
1.4
3.3
Planned Value*
Planned Contribution*
2.5
2.8
4.0
Planned Value*
Planned Contribution*
The appendix delivers rich detail on the
perception of stakeholders, data reviewed and
the expert opinion provided.
This creates a direct line of sight between the
summary conclusions and detailed analysis
Rich detail provides
supporting insight
into required action
Performance Component
Questions
1.5 Level 1 Level 3
Stakeholder
Perception
Split by Stakeholder Group
Current
Performance
Target Future
Performance
Improvement
Action
1. Has the potential outlet universe for
the category been identified?
2. Is the outlet universe segmented around
appropriate consumption needs and/or
shopping missions (nature)?
3. Is the consumer value of each nature
segment and its constituent outlets
appropriately quantified?
4. Have the growth drivers for each nature
segment been determined?
5. Are the servicing requirements of each
nature segment and its constituent outlets
appropriately defined?
6. Has the cost of delivering each specific
service requirement been accurately
quantified?
7. Has the potential outlet universe been
prioritised in a way that will help maximise
profitable growth?
Scored 1 (low) to 4 (high) in terms of agreement
with supporting statements to question (as
explained in pages 14 - 15 )
Agreed current and target performance
(as explained in pages 16 - 21)
Use high level research to define
the outlet universe structure
and estimate its potential size
OUTLET
SEGMENTATION
The bespoke software solution has been
specifically designed to help our corporate clients
analyse business performance
It allows stakeholders to provide their opinion
and back it up with fact, for example by attaching
files that they believe are relevant
The same analysis structure is then used for the
data analysis and expert opinion
As root cause issues and levels of current and
desired performance are agreed, actions are
automatically generated to shift performance
On the basis of these agreed actions, a valuation
of improved performance is automatically
generated
The software itself
has been built
exactly for the purpose
The diagnostic is
deployed annually
to support
business planning
Suitable for deployment annually as part
of the business planning process
Can be used adhoc for channels or
markets that require remedial attention
Fact based analysis of reality
6 Week Process
Completion of web based quantitative research
by agreed stakeholder community
Write-up of the
3-D Traditional Trade
Performance Plan
Set-up
Client
Tailoring
3-D Traditional Trade
Diagnostic
Business Planning
Channel
Planning
Investment
Agreement
Execution
Planning
Execution
Client time commitment
on each diagnostic
is minimal
Key stakeholders
(internal & customer)
deliver feedback on
performance through
our web-based
quantitative research
tool
Existing data (brand
plans, customer
presentations, raw
data) is analysed by
CA to understand if
stakeholder
perception is valid
Nominated experts
challenge stakeholder
perception and data
analysis to create a
final 3-D root cause
analysis of
performance
In each performance
area a current &
target level of
performance is set for
the next year to
define actions to shift
customer
performance
A valuation model
creates a direct line
of sight between
planned actions,
predicted value
creation and
potential investment
scenarios
STEP1 STEP2 STEP3 STEP4 STEP5
20 minutes per survey
respondent
Total of 3 hours for the
data co-ordinator and 30
minutes per data
provider (typically 5-7
data providers) no new
analysis needs to be
done by the client
Total of 3 hours for the
expert reviews with each
of the typically 4
individual client experts
All activities are
delivered online through
the web-based survey,
teleconference calls and
videoconferences
There are 3 levels at
which the diagnostic
can operate
Stakeholders typically include
- 5 local Leadership Team members
- 10 cross-functional local representatives
- Appropriate sample size of trade customers
Fact based analysis is conducted from
local data
36,155 fee* as a one-off and less
for a 3 year programme or multiple
diagnostics
* = excludes out of pocket charged at cost and VAT
charged at the applicable rate
GLOBAL
1
3
2
LOCAL
REGIONAL
The outputs of all 3-D Traditional Trade
Diagnostics completed globally are
summarised and interpreted for global
stakeholders
The local diagnostic is run individually
for each specific customer channel The outputs of all 3-D Traditional Trade
Diagnostics completed across an agreed
region e.g. Africa are summarised and
interpreted for regional stakeholders
50% - 70% reduction in requirement for
face-to-face meetings drives e.g.
- Lower T&E expenses
- Better resource utilisation
Understanding the root cause problem cuts
250k-1m+ of unnecessary spend on addressing
symptoms e.g.
- Shopper research
- Packaging redesign
- Promotions
- Terms & conditions
Transformed clarity and strong stakeholder
alignment around what problems need to be
solved uplifts revenue by 25% - 50%
- Better segmented outlet universe
- World class RTM operating model
- Improved customer relationships
- Winning at POP
- Sales fundamentals
- NPD
- Through the line activity
* = subject to customer profile
Customer revenue growth,
profit growth and improved ROI
COST SAVING* REVENUE GROWTH*
The business case for
deploying the diagnostic
is compelling
Write the brief for
each solution
identfiied Define solution
build resource
requirements
Identify external
partners to build
each solution
Provide quality
assurance support
throughout
solution build
Annual business planning cycles locally, regionally and globally
One-off strategic reviews of global or regional performance
Insight before a major agreed change
Root cause analysis on specific problems e.g. broken customer relationship,
brand turnaround
Example Results
- 50m of incremental profit in Year 1 of a world
class JBP
- 357% brand growth over a 3 year period
- 10m of trade spend cut
- $100m of incremental brand profit
- +40% YOY revenue growth through improved
trading plan
- $20m cost avoidance
Example Suppliers & Retailers
World class experience
in consumer goods