• Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
796
On Slideshare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
0
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide
  • 3 Regions; Regional sales managers – 6; Under each regional sales manager there are 5 sales areas with territorial sales managers.Territorial sales managers: 6*5=30Мы структурировали информацию представленную в кейсе, что помогло нам сразу же выявить основные неостатки существующей орг. структуры.
  • Duplicated functions: CDAE – MTAE; MTAE – CSS;
  • Данные согласно gcs
  • MTAE будет состоять из executives которые будут делиться по принципу отнесения к опредленной торговой сетке. При этом если, например, к торговой сетке А будет прикреплено два человека х и у, то х- будет работать с этой торговой сеткой из офиса и способстовать развитию отношений с ним, а у будет сидеть в офисе клиента- использование emerging trading channels.
  • В новой структуре 17 sales areas. Учитывая цель быть ближе к клиенту, мы решили в каждой sales area расположить sales office. Изначальна постепенно открывая офисы, начиная с sales areas в регионах, приносящих наибольшую выручку.
  • Количество сотрудников на той или иной должности в конкретной sales area будет определяться процентом потребления товаров (еда и hcp) в данной sales area к общему уровню потребления в странеАкцент на развитии продаж должен быть сделан на регионы левве Урала (Поволжский, Северо-Западный, Центральный и Южный) =>необходимо применить повышющий коэффициент в размере 1,5
  • Количество сотрудников на той или иной должности в конкретной sales area будет определяться процентом потребления товаров (еда и hcp) в данной sales area к общему уровню потребления в странеАкцент на развитии продаж должен быть сделан на регионы левве Урала (Поволжский, Северо-Западный, Центральный и Южный) =>необходимо применить повышющий коэффициент в размере 1,2
  • Количество сотрудников на той или иной должности в конкретной sales area будет определяться процентом потребления товаров (еда и hcp) в данной sales area к общему уровню потребления в странеАкцент на развитии продаж должен быть сделан на регионы левве Урала (Поволжский, Северо-Западный, Центральный и Южный) =>необходимо применить повышющий коэффициент в размере 1,2
  • Пояснить откуда assumption

Transcript

  • 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
  • 4. FMCG Industry Specifics
    • Two types of customers:
    1st level type consumers (distributors, retailers)
    2nd level type consumers (end customer)
    • Two types of trade:
    Modern type & traditional
    Russia (75%-traditional / 25%-modern)
    Developed countries ( 25% traditional / 75%-modern)
    • High level of competition among key players:
    Necessity of quick decisions
  • 5. Russian Market Trends
    • Disposable income growth:
    Disposable income CAGR is forecasted to reach 7% by 2014
    •  Retail sales growth:
    According to Rosstat, retail food sales in Russia grew by
    9,78% in 2010, in absolute values.
    • Organized retail growth:
    Share of major retail chains is forecasted to reach 46% by
    2014
    • Organized retail growth penetration in low population
    density areas
  • 6. Growth Drivers
  • 7. UNILEVER’S Field Sales division
  • 8. Analysis of Existing Organizational structure
    Regional Sales Manager
    • Coaching and developing TSM;
    • 9. Appointment/termination of distributors
    • 10. Identification of external threats;
    • 11. Promotion strategies development;
    • 12. Creative idea development;
    • 13. Regular communication with trade channels.
    Territory Sales Manager
    CME
    Customers Market Executive
    • Production the strategy for each city of the Sales Area;
    • 14. Generation and evaluation customer options;
    • 15. Price policy in region;
    CDAE
    Channel Development Activating Executive
    MTAE
    Modern Trade Activating Executive
    MTE
    Modern Trade Executive
    DS
    Distributional Supervisor
    CSS
    Customers Sales Supervisor
    • Conduct efficient price reductions;
    • 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;
    • 29. Constant contact with MTE;
  • Diagnosis and Setting Goals
    Shortcomings defined from diagnosis:
    Centralized marketing program: regions are followers;
    Ambiguous role of Customers Market Executive;
    Unpractical division;
    Duplicate functions: Food/HPC divisions, repeated staff responsibilities;
    Fuzzy functions’ division;
    Lack of communication among the regions;
    Customer sales supervisor structure is excessively complex.
    Topical Necessity of Restructuring
    GOAL Set from Head-office:
    To double Sales in 3 years
  • 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
  • 38. Project of restructuring
    Preparation of positions’ descriptions and Key Performance Indicators
    Work with employees:
    • Evaluating number of employees required
    • 39. Unilever’s employee policy
    • 40. Reassignments
    • 41. Clarifying the situation and presenting the plan (prevention of law suits)
    • 42. Benefitsplan
    • 43. Trainings for personnel
    Work with other stakeholders
    Communication 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
  • 50. Project of restructuring
    Work with employees
    Unilever’s employees policy
    • Care about its staff
    • 51. Integrity
    • 52. Law-obeying
    • 53. “Trust and respect” atmosphere
    • 54. Committed to healthy and safe working conditions
    • 55. Care about Values of Staff
    Reassignments: promotion or rotation
    • Based on Performance matrix used by Unilever (Inmarko case)
    • 56. Give a chance to each employee
    • 57. Selection process to new regions and territories
    Preventing law suits
    • Transparency Policy
    Benefits plan
    • Benefits for achieving and beating target sales and
    Training of personnel: dealer employees are trained in selling the product; employees are trained how to understand values of customers and requirements of the market; additional trainings for underperforming employees
  • 58. Project of restructuring
    Work with other Stakeholders
    Project of restructuring
    MEETING PLAN:
    • Agenda for every meeting
    • 61. Outcome:
    • 62. Participants: TAE+ MSAE +MTAE, TSM+ DS
    • 63. Frequency: once a month
    • 64. Format: meeting( face to face), on-line conferences
    COMMUNICATION
    PLAN!
    Interrelations are very important!
    PRINCIPLES OF
    DECISION-MAKING
  • 65. Implementation plan and Timeline
    Implementation: 5 years (3)
    Immediate measures
    • Ensure results
    • 66. Ensure liquidity
    Project Management
    • Clear responsibilities
    • 67. Tight scheduling
    Action Management
    • Control implementation
    • 68. Control effects
    Change Management
    • Manage changes, incl. corporate culture
    Stage I: 2-6 weeks
    Stage II: 6-12 month
    The specifics of implementation campaign:
    1. First quarter is the best period to start: the worst sales season.
    2. Analysis of current situation, forming of project group, development of implementation plan.
    3. Development of staff reorganization and movement: bonus program, promotion programs, selection of new hires;
    4. Gradual introduction of new sales areas, with the maintenance of old structure for the first time.
    5. The expected period of first step implementation – 1 year – building solid foundation for further development
    6. Gradual development after the first year
  • 69. Increasing sales through Marketing
    Sales via Emerging modern trade channels
    Supporting of sales by additional tools:
    • organizing discounts
    • 70. bulk sales
    • 71. free samples tests
    • 72. loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitable sales
  • Measuring results of restructuring
    Restructuring costs:
    Unilever will have to anticipate the restructuring costs over the next years, that will be approximately 2,5% of sales.
    Unilever is looking to make growth its number one priority.
    The company probably will have to increase prices for its brands to combat rising commodity costs and further lift profitability during the restructuring campaign.
    Assumptions:
    1. Recovery of real customer consumption after crisis period: 5% in 2010 and 2011.
    2. Gradual growth of disposable income: from 2003 to 2011: CAGR = 20%.
    3. Gradual effect of implementation.
    4. Deceleration of sales growth rate of Unilever in accordance wit the market tendency
  • 73. Scenario Analysis