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GAIN CONTROL OF TRADE SPENDING IN THE FACEOF RISING PRICES           THURSDAY, FEBRUARY 10                 MEI Computer Te...
Meet the ExpertsPresenterJoel CartwrightDirector Pre-Sales ConsultingMEI Computer Technology GroupModeratorRob WhynotSenio...
Agenda  Who is MEI  The State of the Market  How Commodity Crunch is Affecting CPG  What You Can Do  Q&A
Who is MEI?       Client base is made      up 50 clients ranging                               Established in 1983       f...
State of the Market                                      Economy-weary                                      consumers face...
Poll Question
State of the Market                      http://www.warc.com/LatestNews/News/Promotions_lose_favour.news?ID=27833
State of the Market                      http://www.bloomberg.com/markets/commodities/futures/
How It Affects CPG
What You Can Do
Price Increase Needs & Deliverables•  Corporate Finance Responsibility       Understanding the impact to plan.       Alloc...
Trade Reduction v. Price increase•  Contribution & Its Impact to the Bottom-Line      Sales operations management      Ann...
Topline Impact vs. Bottom-line Maintenance•  Price increase planning individual Customer P&L       Comparing the corporate...
To Lead or Follow
Poll Question
Adjust the Sales Objectives•  Understanding a price increase & the deliverable to the S&OP•  Adjusting spending & accrual ...
What to Do Next?•  It’s all in the details•  One plan in one place
Key Takeaways      1   Understanding the Impact to the Plan      2   Understanding the Impact to Contribution      3   Acc...
Q&A
Contact InformationPresenterJoel CartwrightDirector Pre-Sales Consultingjcartwright@meicpg.comModeratorRob WhynotSenior Pr...
CPG Online Learning SeriesUpcoming Events    •  How to Build Your Business to Get It Sold   February 23, 2011•  Dont Cell ...
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Gain control of trade spending in the face of rising prices

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Gain control of trade spending in the face of rising prices

  1. 1. GAIN CONTROL OF TRADE SPENDING IN THE FACEOF RISING PRICES THURSDAY, FEBRUARY 10 MEI Computer Technology Group Inc.
  2. 2. Meet the ExpertsPresenterJoel CartwrightDirector Pre-Sales ConsultingMEI Computer Technology GroupModeratorRob WhynotSenior Project ManagerMEI Computer Technology Group
  3. 3. Agenda Who is MEI The State of the Market How Commodity Crunch is Affecting CPG What You Can Do Q&A
  4. 4. Who is MEI? Client base is made up 50 clients ranging Established in 1983 from $30M to $3B in sales A leading developer of Offers a complete and proven trade promotion solution that enables consumer management software for packaged goods CPG the Consumer Packaged companies to successfully plan, Goods (CPG) industry execute and analyze all aspects of the trade promotion management cycle
  5. 5. State of the Market Economy-weary consumers face Commodity price increases prices driving following times of food inflation aggressive promotionGrocers achieved Consolidation growth as opportunitiesconsumers traded rising within retaildown; foodservice and CPG felt the pinch manufacturing
  6. 6. Poll Question
  7. 7. State of the Market http://www.warc.com/LatestNews/News/Promotions_lose_favour.news?ID=27833
  8. 8. State of the Market http://www.bloomberg.com/markets/commodities/futures/
  9. 9. How It Affects CPG
  10. 10. What You Can Do
  11. 11. Price Increase Needs & Deliverables•  Corporate Finance Responsibility   Understanding the impact to plan.   Allocation of funding for price protection   Standardization with Key pricing indicators•  Sales Operations   Plan for category sensitive pricing   Review risks and gaps to plan, and forecasts   Forecast accuracy metric•  Field Sales   Review planning and identify volume loss going over pricing thresholds   Adhere to price in crease KPI in the category   Review customer pricing compliance
  12. 12. Trade Reduction v. Price increase•  Contribution & Its Impact to the Bottom-Line   Sales operations management   Annual planning of event activity   Standard quarterly review•  Rich Mix & Ability to Co-Promote   Co-promotion of Margin Rich items   Negotiation on price points or non- rich mix items   KPI adherence on non rich mix items, “Penny Profit”
  13. 13. Topline Impact vs. Bottom-line Maintenance•  Price increase planning individual Customer P&L   Comparing the corporate planning P&L to the live customer P&L to look for gaps and opportunities   Sharing the customer P&L across the organization   Mid Year trade deployment based on customer profitability
  14. 14. To Lead or Follow
  15. 15. Poll Question
  16. 16. Adjust the Sales Objectives•  Understanding a price increase & the deliverable to the S&OP•  Adjusting spending & accrual objectives after a price increase•  Comparatives to RPC spending, margin and price point
  17. 17. What to Do Next?•  It’s all in the details•  One plan in one place
  18. 18. Key Takeaways 1 Understanding the Impact to the Plan 2 Understanding the Impact to Contribution 3 Accruals & P&L 4 Objectives & the Plan 5 Leverage Technology
  19. 19. Q&A
  20. 20. Contact InformationPresenterJoel CartwrightDirector Pre-Sales Consultingjcartwright@meicpg.comModeratorRob WhynotSenior Project Managerrwhynot@meicpg.com
  21. 21. CPG Online Learning SeriesUpcoming Events  •  How to Build Your Business to Get It Sold February 23, 2011•  Dont Cell Yourself Short March 16, 2011 To register, visit http://www.meicpg.com/news/webinars

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