Need to strengthen collaboration Retailer-Supplier? If manufacturers and retailers wish to achieve top performance under the new commercial scenario, they must re-define the rules of the game, develop an integrated vision of opportunities and threats to be faced and push the limits of collaboration to unprecedented levels. Not easy, but possible. Our Model of Cooperation for Growth At TMC Consulting we have developed an innovative planning model that ensures integration and team effort. The advantage of this model is that the end result is an Account Plan built with the joint effort and collaboration of the industry and retailers, focusing on the most relevant and shared opportunities to generate value for all players.

1. JOINT ACCOUNT PLAN
July 2014
Collaborating to increase sales, profit and growth

2. I. Introduction
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• Consumer buying attitudes are changing. Although the overall market demand remains stagnant,
volumes are shifting from traditional to modern trade channels. With a proliferation of channels,
consumers want the convenience of buying the right item at the right time regardless of the
means of purchase—and value continues to remain uppermost in their minds.
• Other consumer trends are taking hold; an increasing number of consumers are seeking green
products and packaging. And brand loyalty is eroding as the number of private label purchases
grows. Although a strong contingent continue to shop for leisure, many more consumers are
making targeted purchases.
• Clearly, consumers are shopping across a variety of channels to suit their circumstances, special
interests and wallets, making it more difficult for both retailers and consumer packaged goods
(CPG) companies to predict consumer needs and behavior.
• To cope with these changes, retailers and CPG companies have increased investments in trade
initiatives and efficiently optimized trade spend. Yet the benefits these tactics can bring are limited
if each company looks at its own sales and revenue results in isolation.
• TMC believes that if retailers and CPG manufacturers are to achieve high performance in the new
consumer landscape, they must redefine the rules of the game, forming an integrated view of the
opportunities and challenges before them and pushing the boundaries of collaboration to
unprecedented levels.
• The first step in doing so is to work together at the strategic business planning stage to put the
consumer at the center of their business, get closer to buyers and attain greater knowledge of
consumer behavior.

3. II. Project Objectives
Identify the maximum Business Potential by Category and Store
Improve understanding of the account business dynamics:
shopper behavior, category performance and store operation.
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2
3 Strengthen business relationship between Supplier and Account
by driving a joint approach for the plan development
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4. III. Methodology and Action Plan
The project development is carried out through 5 stages, in which TMC consultant team
interacts closely with the Account, Supplier and Store teams.
4
Knowledge and Information
gathering
Store Audit by Category
Opportunities and Critical
Issues Map
References by Category
Strategies and Action Plan
by Category
Joint Account Plan
4

5. Stage I. Knowledge and Information gathering
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CREATING
COMMON GROUND
TO SEIZE
MUTUALLY
BENEFITIAL
OPPORTUNITIES

6. Stage I. Knowledge and Information gathering
At this stage, the consulting team will map all available documents, reports and systems with
information about the following areas:
• Account: current store´s segmentation, retail strategy, category guidelines, operational
guidelines, total sales and by category, gross margin per category, etc
• Consumer Understanding by Category: who consumes, when, what, where, why and how
often. Typically this information is provided by Suppliers.
• Industry/Market trends by Category
• Shopper Understanding: any recent information about profile, when do they shop, how
often do they shop, destination vs impulse categories, shopper decision tree by category,
length of shopping visit, shopping sequence. Average Ticket Value and Quantity.
To achieve this goal, this stage has been divided into three phases, which are described
below:
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Kick Off & Team
Conformation
Approach key
sources of
information
Knowledge and
Information GAPS

7. Stage I. Knowledge and Information gathering
TMC offers 3 solutions to update/enrich Shopper and Category Dynamics in Retailer:
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SHOPPER BEHAVIOR BY CATEGORYQUANTITATIVE INTERVIEW
1. Update Outlet Segmentation:
• Shopper Profile, Mission & Frequency
• Destination vs Impulse
2. Increase Sales and Value:
• Missing products, Shopping barriers,
competitors
3. Retail Communication effectiveness: ad
and copy awareness. Buy or Not.
4. Promotion Effectiveness: Mechanics vs
Incentive. Net impact and ROI.
• Decision Tree, Barriers, shopping time,
sequence and flow.
15min Interview/25 stores/30 per store/5 cities
125 observations/25 stores/5 per store
BASKET ANALYSIS
• Avg Ticket Value, Sales concentration
by working period, by week days and by
Category. Trends
• Product correlation and Sales
Concentration: top selling and most
profitable products. Week day, Working
period
25 stores/1 day per month - week vs. weekend/ 3 months
STORES x CITIES:
BH 2
CTB 3
RJ 5
PAL 3
SP
1
2

8. Stage I. Knowledge and Information gathering
TMC will contribute during the first phase with some relevant information for all players:
BASKET DRIVEN STORE SEGMENTATION
HEALTH
AND
WELLNESS
GOURMET
HOME
CONSUMPTION
PARTY
COFFEE
BREAK
IN STORE TRAFFIC FLOW
Most visited areas, corridors and category sequence
ILLUSTRATIVE
8

9. Stage I. Knowledge and Information gathering
TMC will contribute during the first phase with some relevant information for all players:
SHOPPER BEHAVIOR AT THE CATEGORY SECTION
38% 49% 85% 92%…of shoppers go
through the beverage
section
…of those who goes
through…stop to take a
look at the section
…of those who stop
by, interact with the
planogram
…of those who interact with
the planogram end buying
Source: Shopper Insight 2013. Argentina -Brazil-Colombia-México-USA
ILLUSTRATIVE
9

10. BETTER
UNDERSTANDING
OF STORES
OPERATION TO
MAXIMIZE FIT OF
SOLUTIONS
10
Stage II. Store Audit by Category

11. Stage II. Store Audit by Category
The objective is to provide enough information to identify critical opportunity areas in the way
stores are working per segment and Region.
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Definition of stores
and coordination of
visits
Store Audit
Analysis,
Consolidation of
results
10
stores
• Financial reports to be sent to
central office
• Store Audit at 10 stores to
implement Operational
Assessment Tool (OAT)
• Interviews with Store Mgr and
Staff
• Audit a sample of stores per
segment and regions
• Cost structure and distribution.
• Financial performance
• Store organizational structure
• Management and store process
• Field force support tools and KPI´s
• People: objectives, profile, skills and
capabilities by role
• System & Information: quality and
quantity of information

12. Tools, Skills
&
Capabilities
Organizational
Structure
In Store
Operation
Marketing
Programs
Operational
Processes &
KPI´s
Operations &
Logistics
Information
System
The analysis and consolidation of the results will be presented by business variable to
facilitate understanding and implications by function. TMC will define the initial set of Issues
& Opportunities to be prioritised in the next stage.
IN STORE
OPERATIONS
ISSUES &
OPPORTUNITIES
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Stage II. Store Audit by Category

13. Stage II. Store Audit by Category
A set of Metrics (Performance Indicators) will be compared across regions and will be used to
set National Objectives. A highly effective Joint Account Plan must be supported by an
enriched, comprehensive view of the joint commercial profit and loss data, including brand
and category classification, on-shelf prices, sell-out data and other store specific KPI’s
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ILLUSTRATIVE EXAMPLES:
MARGINTURNOVERPROFIT CUSTOMERS DEBT CASH FLOW
Store P&L (‘000R$)
ILLUSTRATIVE

14. 14
SECURING
COMMITMENT
FROM ALL SIDES ON
MOST CRITICAL
BUSINESS ISSUES
Stage III. Opportunities and Critical Issues Map

15. Stage III. Opportunities and Critical Issues Map
In this phase TMC will collate and integrate the point of view of most relevant players
in the Retail Business Operation:
ACCOUNTSUPPLIERS
STORE
TMC will conduct in-depth
interviews with Store Managers
and Staff in audited stores
TMC will coordinate individual
meetings with key players from Central
Office (Marketing, Retail Operation,
Finance) and One Group session in SP
with Field Force team
TMC will hold conversations with
Industry leaders from most
relevant categories
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16. Stage III. Opportunities and Critical Issues Map
Results will be presented in simple charts to facilitate understanding of Business
Implications:
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STORE REGION TOTALSEGMENT
² Avg Ticket Value
² Avg Tickets per day
² ROCE (Return on Capital Employed)
² Stock turn ratio
² GMROII (Gross Margin Return on
Inventory Investment)
² COGS (Cost of Goods Sold)
² Sales Turnover/Operating Costs
² Etc…
• Set of KPI´s from
Marke ng, Finance and
Opera on.
• “WHAT TO DO” examples
in all cases that will be
used as reference during
the Strategy and Planning
defini on phase
ILLUSTRATIVE
Profitability
SalesVolume
KEY CATEGORIES PER STORE CATEGORY SALES TREND
+ =
CATEGORY PRIORITIZATION

17. Stage III. Opportunities and Critical Issues Map
Results will be presented in simple charts to facilitate understanding:
ILLUSTRATIVE
Weekdays
MorningAfternoonNight
Weekend
SALES CONCENTRATION
Weekdays
MorningAfternoonNight
Weekend
SALES CORRELATION BY TICKET
+ =
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18. Stage III. Opportunities and Critical Issues Map
Results will be presented in simple charts to facilitate understanding:
ILLUSTRATIVE
NET INCREMENTAL RESULTSOPPORTUNITY AREAS
• INVENTORY
• ASSORTMENT
• PROMOTIONAL
ACTIVITIES
• PLANOGRAM
• OPERATIONAL COSTS
• PRICING
+ =
FULL POTENTIAL RESULTS
Readiness
Urgency
Readiness vs Urgency vs Business Impact
Prioritization will allow to
focus on most relevant
issues during the
planning period.
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19. 19
BRINGING
ALTERNATIVE
SOLUTONS TO
CRITICAL ISSUES
BY CATEGORY
Stage IV. International References by Category

20. Stage IV. International References by Category
In this phase TMC will run a Desk Research for top priority issues by category and
store and store segment. It will include C-Store good retail practices and experts
recommendations.
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Category Management: role of each
category, sales & profit representation,
space, planogram and location. Strategic
direction by Category
Big Data and Knowledge
Management
Store Performance: margin, profit,
rotation, growth, Ticket Value, # of
Tickets, Debts, Cash Flow, etc
Shopper Activation and Loyalty
People skills and capabilities

21. 21
Stage V. Strategies and Action Plan by Category
DEFINING A
COLLABORATIVE
PLAN TO DELIVER
AGREED BUSINESS
OBJECTIVES

22. Stage V. Strategies and Action Plan by Category
At this stage, the consulting team will run a 1 day WORKSHOP with Account and Supplier to
agree on realistic targets, strategies and Plans for the most critical areas to be covered in the
followed 2-3 years period:
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ACCOUNTSUPPLIER
STORE
1
2
4
3
5 6
7
Core initiatives involving all players, such as Trading terms
and conditions, Category Captaincy, Price, Assortment per
store, Functional Merchandising, etc
Corporate Plans affecting Store’s operation and logistics:
Franchise model, ERP Systems, Policies, People profile and
skills, Cost Reduction programs, etc.
Actions that can be agreed and coordinated directly between
Stores and Suppliers such as Staff Training, temporary
merchandising, etc
Centrally driven plans between Retailer and Suppliers such as
Bonus, R&D investment, etc
Supplier/Industry specific strategies and plans to address
Portfolio, Brand, Product performance at the Account (collated
in previous interviews by TMC)
Account Corporate strategies and actions that can affect
Retail Business such as Merge and Acquisition, change in the
Organizational Model, Corporate investment priorities, etc
Franchisee specific actions and plans
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2
3
4
5
6
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Identify areas of potential collaboration
agreements, objectives, strategies and plans

23. Stage V. Strategies and Action Plan by Category
Each Plan will have clear Objectives, Roles, Responsibilities and Deadlines
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Understanding that Full Potential of each topic was previously defined as
Business Impact, at this stage it will be defined the size of the opportunity to be
set as objective for the planning period.
1. OBJECTIVES
2. RESPONSIBILITIES
By using the TMC model, it is easy to assign and distribute responsibilities
between Store, Central office and Suppliers for each task.
3. DEADLINES
Deadlines should be tied together with variable compensation and negotiation
terms and conditions.
ACCOUNTSUPPLIERS
STORE
1
2
4
3
5 6
7

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IV. BENEFITS OF JOINT PLANNING
The more closely aligned and targeted the planning, the easier the execution and monitoring and
the better the results and insights. Joint Account Planning offers a number of tangible and
intangible benefits that impact Retailer and Top Categories business performance.
INTANGIBLE BENEFITS
1. Increased transparency and visibility of
business
2. Increased trust and better relationship
3. Joint plan ownership responsibility
4. Shift from data reconciliation to analysis
and strategy execution
5. Reduce negotiation time and improve
quality of agreements
TANGIBLE BENEFITS
1. Joint event development
2. Increasing planning effectiveness of
Innovation launches
3. Improved responsiveness to
opportunities
4. Increase sales forecast accuracy
5. Optimize spending of trade spending
levers
6. Out of Stock reduction
DRIVING SALES AND OPERATING MARGIN

25. SUMMARY

26. Project Team – JUAN MANUEL DOMINGUEZ
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• Consulting
– Since 1996 is CEO of TMC Consultores, based in
Valencia, Spain.
Extensive Experience across:
– Consumer Products and Retailers
– Latin American markets
– End Market, Regional and Global structures
– Trade channels with focus in Convenience stores.
Key Specialities include:
– Sales and Distribution models
– Trade channels development
– Trading terms and conditions
– Retail Operations and Finance
– Optimization of organizational structures
• Line Management and Background
– British American Tobacco (BAT) 7 years
– VP Business and Professor EEG
– Professor of Post graduation in Marketing – UNIMET
– Professor IESA: Key Account Management, Trade
Marketing and Sales Planning
– Bachelor of Science in Arizona State University –
Marketing and Business Administration
Extensive functional and line experience in Marketing
and Sales:
• Group Brand Manager – Seagram’s and Mavesa,
Venezuela
• Trade Marketing Development Manager – British
American Tobacco, Venezuela
Speaks Spanish (native tongue) and English fluently

27. Project Team – CARLOS ALFONZO
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• Consulting
– Associate Consultant of Kantar Retail, Grupo 361
USA and Compass Mkt since 2011
Extensive Experience across:
– Tobacco and Beverage Industry
– Latin American markets
– End Market, Regional and Global structures
– Trade channels with focus in Convenience stores.
Key Specialities include:
– Shopper Marketing and retail communication
– Category Management
– Strategic Planning and Insights
– Customer Segmentation
– Negotiation
• Line Management and Background
– British American Tobacco (BAT) 16 years
– BA Industrial Engineering (UCAB) with Master in
Marketing (IESA)
Extensive functional and line experience in Marketing
and Sales:
– Regional Business Development and Key Account of
Americas – Brazil
– Head of Global Customer Engagement - UK
– Head of International Brands - Brazil
– Head of TMD, Strategic Planning and Insights -
Argentina
– Head of TMD – Venezuela
Speaks Spanish (native tongue), English and
Portuguese fluently

28. THANKS