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Category management co operation (kesko food, fazer, analyse2)


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Category management co operation (kesko food, fazer, analyse2)

  1. 1. Insight Information in Category Management
  2. 2. Insight Information in Category Management Co-operation
  3. 3. <ul><li>Targets: </li></ul><ul><ul><li>To illustrate how information is used in retailer-supplier partnership to enhance the confectionary category performance and growth. </li></ul></ul><ul><ul><li>To give some practical examples of the key knowledge tools and practices </li></ul></ul><ul><li>Agenda: </li></ul><ul><ul><li>Introductions </li></ul></ul><ul><ul><li>Short company presentations </li></ul></ul><ul><ul><li>Partnership </li></ul></ul><ul><ul><li>From data to information tools </li></ul></ul><ul><ul><ul><li>Segmentation, clusters, solutions </li></ul></ul></ul><ul><ul><li>Examples of day to day category management </li></ul></ul><ul><ul><ul><li>Planning of assortments – case launching novelty Fazer Nordic Gourmet </li></ul></ul></ul>
  4. 4. Kesko Group, year 2009 <ul><li>The K-Group’s sales were €12.6 billion </li></ul><ul><li>Sales in Finland €10.5 billion </li></ul><ul><li>K-food stores’ sales €5.7 billion </li></ul><ul><ul><li>Hypermarket (K-citymarket), supermarket (K-supermarket, K-market) and proximity stores (K-extra) </li></ul></ul><ul><li>The number of the K-Group personnel was c. 45,000, of whom 22,200 were Kesko employees </li></ul>Building and home improvement trade Car and machinery trade Food trade Home and speciality goods trade 44 % of net sales 27 % of net sales 11 % of net sales 18 % of net sales
  5. 5. Finland 5.3m Sweden 9m Estonia 1.4m Latvia 2.3m Lithuania 3.4m St. Petersburg area 5m Norway 4.5m Moscow area 15m Belarus 9.8m Kesko has 2,000 stores engaged in chain operations in eight countries Total about 56m consumers <ul><li>Finland : all divisions </li></ul><ul><li>Sweden : building and home improvement trade </li></ul><ul><li>Norway : building and home improvement trade </li></ul><ul><li>Baltics : building and home improvement, agricultural and machinery trade, furniture trade and distance sales </li></ul><ul><li>Russia : building and home improvement trade, machinery trade </li></ul><ul><li>Belarus : building and home improvement trade </li></ul>
  6. 6. Fazer Group <ul><li>The leading food service company in the Nordic and the Baltic countries </li></ul><ul><li>Almost 1400 restaurants in the Nordic countries, Estonia, Latvia and Russia </li></ul><ul><li>360 000 meals daily </li></ul><ul><li>Turnover 536 M€ (2009) </li></ul><ul><li>Number of personnel 7 500 </li></ul>Fazer Group: Turnover 1 441 M€ Personnel 17 000 <ul><li>Finland's leading bakery and confectionery company, one of the leading companies in the Baltic Sea region and Russia. </li></ul><ul><li>21 bakeries in Finland, Sweden, Estonia, Latvia, Lithuania and Russia. Market leader in St. Petersburg. </li></ul><ul><li>The confectionery factories are located in Finland: Vantaa, Lappeenranta and Karkkila </li></ul><ul><li>Turnover 905 M€ (2009) </li></ul><ul><li>Number of personnel ca 9 200 </li></ul>Oy Karl Fazer Ab Fazer Food Services Fazer Bakeries & Confectionery
  7. 7. Strong Market Positions Across the Region 2009 Finland FF # 1. (53 %) FB # 1. (39 %) FC # 1 (35%) Sweden FF # 2. (28 %) FB # 2 . (28 %) FC # 4. (8%) Denmark FF # 3. (15 %) Norway FF # 4. (10 %) The Nordic countries Fazer Food Services: 1. (28 %) Fazer Bakeries: 1 (18%) (fresh bread) Fazer Confectionery: 2 (15%) Baltics FF # 1. FB # 2. (16%) FC # 3. (>10%) Russia / FB St Pete # 1. (44 %) Moscow # 5. (~7%) Fazer Group
  8. 8. Over 50 FMCG retail and supplier customers Our FMCG supplier customers’ combined market share is over 70% in Finland. Comprehensive management system from strategic to tactical level • Advanced customer segmentation • Planning tools for category management processes, supplier collaboration and marketing • Corporate performance management, analysis and reporting systems • Product information maintenance • Consulting in customer insight Customer and trend insight for competitive advantage
  9. 9. Partnership
  10. 10. Partnership between Kesko Food and Fazer <ul><li>Why to do it? </li></ul><ul><ul><li>Seeking for constant Sales and Profit growth </li></ul></ul><ul><ul><li>Utilize and understand consumer and shopper insights </li></ul></ul><ul><ul><li>To improve target customer’s service and price image of the category </li></ul></ul><ul><ul><li>To do it with less costs and more efficient way </li></ul></ul><ul><ul><li>Common KPI’s </li></ul></ul><ul><ul><li>Need to understand different levels of co-operation </li></ul></ul><ul><ul><ul><ul><li>Fazer Confectionary </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Kesko Food Ltd </li></ul></ul></ul></ul><ul><ul><ul><ul><li>K-retailers (multi format independent entrepreneurs) </li></ul></ul></ul></ul>
  11. 11. Fazer has many interfaces towards Kesko Food Optimal assortment and delivery accuracy towards K-food stores Best shelf availability and quality to consumers Seasons Campaings Novelties Demand analysis Assortment and spacem. planning Pro-curement Plano- grams Log. model Buying to WH Ware- housing Store Replenish-ment Delivery Instore logistics In store Pro-motion Customer service Buying Satisfaction, re-buying Several co-operation interfaces
  12. 12. Workshop Kesko-Fazer, March 2010 <ul><li>Topics shared: </li></ul><ul><ul><li>Ways Kesko Food and K-retailers are operating </li></ul></ul><ul><ul><li>Main activities planned for 2010 </li></ul></ul><ul><ul><li>In-store activities </li></ul></ul><ul><ul><li>Common actions for Spring and Summer 2010 </li></ul></ul><ul><ul><li>How to gain more market share? </li></ul></ul>Page 12
  13. 13. Partnership as Kesko Food and Fazer do it <ul><li>What does it include? </li></ul><ul><ul><li>Shared vision and strategies </li></ul></ul><ul><ul><li>Co-processes </li></ul></ul><ul><ul><li>Co-projects </li></ul></ul><ul><ul><li>Shared tools and practices </li></ul></ul>
  14. 14. Rolling 12 months partnership calendar Jan Feb March April May June July Aug Sep Oct Nov Dec Management Marketing Tactical Logistical . Tactics for the Christmas Tactics for the summer Locistical plans for the summer . Tactics for the autumn Insight information Locistical plans for the autumn . Tactics for the start of the next year Locistical plans for the start of the next year .
  15. 15. Partnership as a process Strategical level -top management Marketing level - Chain marketing Tactical level - Purchasing Operational level -Logistics, Sales field - projects - Main guidelines - Sources of differentation - Management Scorecards - Trade as a media - Marketing plans - Brand synergy - Assortment and Space Management - Activities - Business scorecards Feedback / Best Practices - execution
  16. 16.
  17. 17. Fazer Confectionary’s Key Account Manager’s workbench Fazer Confectionary’s Sales Reps / Kesko Food’s information tools Kesko Food’s Customer segmentation Kesko Food’s Store Clusters by Chains Kesko Food’s marketing Plans by chains Kesko Food’s POS- data Fazer’s DW Mutual Scorecards And information tools Kesko Food’s DW Market reports And studies Observations And feedback From Sales Reps
  18. 18. <ul><li>The knowledge tools in use </li></ul><ul><ul><li>From data to information tools </li></ul></ul><ul><ul><ul><li>Segmentation, clusters, solutions </li></ul></ul></ul>
  19. 19. Services for Kesko and suppliers Consumer trend modelling Product attributes (about 100) Product information Segmentations Planning tools and reporting Customer and category tracking Performance measures Expert services Assortment planning and pricing Marketing, campaigns, NPIs Portfolio management and R&D Store segmentations Customer segmentations Product information maintenance (30 000) products Training Consulting Support Customisation of reports
  20. 20. K-food stores use a set of unique structures and equipment for assortment planning Page 20 Food Styles – customer segmentation Store clustering Analyse² Galaxy – planning tool for assortments and pricing
  21. 21. Revised assortment structure Cluster based assortment Store size based assortment Formats nationwide assortment for chains Core assortment for K-food Store
  22. 22. Consumers buy product benefits Shopping behavior reveals important trends describe consumers’ needs and values, and their changes associated with product attributes: certain attributes certain trends Trends .. ...this product has less salt....’s good for my health... ...this brand I can trust....
  23. 23. Trends linked to Nordic Gourmet Quality New experiences and sensory Indulgence Strong brands
  24. 24. Nordic Gourmet trends in FoodStyle groups New experiences and sensory Quality
  25. 25. Customer emphasis for Nordic Gourmet
  26. 26. Nordic Gourmet trends in store clusters – FoodStyle groups are basis of store cluster assortments New experiences and sensory Quality
  27. 27. Assortment suggestion for K-supermarket cluster 1 <ul><li>Excellent match for the target customers of the chain </li></ul><ul><li>The assortment planning tools automatic suggestion ranks the products #2, #4 and #6 in their segment! </li></ul>
  28. 28. Thank you!