3 out of every 4 store visits areeffectively a waste of time and moneyHow you can cut costs & dramatically improve yourfie...
Why I am hereTo help you• Focus your field marketing investment to those stores / outlets / branches with the greatestpote...
• Diageo– UDV– Guinness• Charles Wells• Scottish Courage• Interbrew• Seagram• Matthew Clark• PepsiCo Drinks• Constellation...
• Distribution, availability, visibility and promotion are all critical to gettingthe product in the shopping trolley• Lea...
Typically 80% of sales potential is in only 55% of stores –so why call on those that don’t justify it?
This is what we found from a recent effectiveness audit for a leading brokers salesforce supporting a major FMCG brand sto...
It’s a big problem, but it can be fixed• Most brand owners have no measure of the ROI on the Field Marketing investment.• ...
How we analyse and drive ROI• Compliance gaps reviewed against classic sales drivers (DAVP)• All stores in the retailer es...
Imposing a threshold 15 to 1 ROI on a database of 1600 storesprovides a call file of 883 stores (55%) but retains 80% of t...
Improving ROI at store level
Ranking by percentage uplift addressesvariations due to store size, but still….???Drilling down
Late start, early finish and lack of availability halfway through= poor performance
Example 2, high uplifts, but inconsistent
Was the product in the store?……
Was the product in the store?…..
Reasons for variations
Past performance for future returns
Prevention vs cure
Action plan depending on compliance
For example, 3 visit stores have biggest potentialto improve here
Beyond in-store compliance…• Many other reasons for store level under-performance– Low consumer demand / too few target co...
Start point– analyse areas of strong potential consumer demand andallocate those consumers to small post code sectors• We ...
We then use powerful gravity modelling tools to allocateyour target consumers to the retailer’s stores• Store catchment ar...
Insight enables targeted deployment of a range of marketing tools –and also some decisions about where not to investLocal ...
• Combining EPoS data, promotional history &consumer demand information we can build storeclassifications that enable the ...
Want to know more?
Easy Next Step - look for quick wins• 20:20 RDI runs a proof of concept workshop where we take 12months of EPoS data, revi...
What data do we need to run a workshop?
Simple really…………
For more info on 20:20 RDI or to arrangea proof of concept workshop, contactLiz Rowell at Red Ark.+612 9437 1377liz@redark...
Improving Fieldforce effectiveness in grocery
Improving Fieldforce effectiveness in grocery
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Improving Fieldforce effectiveness in grocery

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20:20 RDI has a unique model and method for improving the ROI of fieldforce visits. This presentation talks through the methodology in detail and show you how a simple proof of concept workshop could save your FMCG business millions. Red Ark in Sydney is the local representative for 20:20 RDI who work with all the major FMCG marketers across Europe and the UK. As shown to the Australian Sales & Marketing Institute.

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Improving Fieldforce effectiveness in grocery

  1. 1. 3 out of every 4 store visits areeffectively a waste of time and moneyHow you can cut costs & dramatically improve yourfield marketing ROI today and tomorrow
  2. 2. Why I am hereTo help you• Focus your field marketing investment to those stores / outlets / branches with the greatestpotential to improve your ROI by:• Generating up to 20% increased sales revenue during periods of promotional activity• Giving you better insights into your customer or your channel• Enabling you to implement better through the line activity and in-store activations• Improving the performance of your field sales / merchandising teams
  3. 3. • Diageo– UDV– Guinness• Charles Wells• Scottish Courage• Interbrew• Seagram• Matthew Clark• PepsiCo Drinks• Constellation Wines• Weetabix• Danone Waters• Ferrero Rocher• KronenbourgHow I know what we are telling you• Twinings• Nabisco• Nestle• CPC• Sara Lee• Frito-Lay• Hershey• Golden Wonder• Aunt Bessies• Campbells• Leaf Confectionery• Warner Lambert -confectionery• WalkersSnackfoods• Masterfoods• General Mills• Centura Foods• Colgate-Palmolive• Levi’s• Gillette• PZ Cussons• Procter & Gamble• Spalding SportingGoods• Elizabeth Arden• Reckitt Benckiser• Imperial Tobacco• Gallaher plc• Philip Morris• SCA Hygiene• Dunlop Slazenger• Interflora• CoMag• Buena Vista• Frontline• McCain
  4. 4. • Distribution, availability, visibility and promotion are all critical to gettingthe product in the shopping trolley• Leaving in-store performance up to the retailer and your field marketingteam is tempting – it’s hard, it’s complex, and how can you calculate thereturn for your effort anyway?• The easiest and “safest” solution for most brand owners is to direct theirresources to the stores with the most “risk”, those ones with the highestsales• This kind of thinking is expensive………….. whether it’s because yourin-store activity isn’t being properly implemented, or because it is• Up to 75% of stores are compliant when visited, meaning 3 out ofevery 4 field force visits are a waste of time and money
  5. 5. Typically 80% of sales potential is in only 55% of stores –so why call on those that don’t justify it?
  6. 6. This is what we found from a recent effectiveness audit for a leading brokers salesforce supporting a major FMCG brand stocked in Woolworths and Coles with apotential sales value (size of prize) of $24 million per annum▼ 14% of stores received fewer calls than was agreed with the brand owner▲ 22% of stores were called on more often than agreed (sometimes much more often!) with nodiscernible sales benefit■ Over 3 months, 300 stores received 2 visits in one day – according to the visit data. Why?•There was no correlation between number of visits made and sales volumes achieved. Ofstores with 10 or more visits over an 8 week period, the top had an average weekly sales valueof $71,000, the bottom an average sales value of $8,000•In Woolworths 80% of the additional opportunity (size of prize) was in just 42% of the storesvisited. In Coles 80% of the size of prize was in just 38% of stores visited•Effect of sales visits on promotional sales in one Woolworths promotion:- Group of stores receiving 7 or more visits achieve a 154% uplift- Control group of stores not visited at all achieves a 180% uplift!•In 278 Coles stores, we found that the product had not been scanned at any time in the 13week launch period.•But visited Woolworths stores performed better than our non-visited control group – they startedscanning the new product several weeks earlier on average
  7. 7. It’s a big problem, but it can be fixed• Most brand owners have no measure of the ROI on the Field Marketing investment.• Promotional uplift varies for a variety of reasons– Distribution & availability issues inhibit sales!– Nature of the promotional offer itself– Mix of products & their responsiveness– Compliance - dates, products, displays– Propensity of the shoppers to respond to the offer, according to socio-demographic mix of the catchment consumer• Intelligent analysis of store level EPoS data combined with field marketing informationabout their in call actions can highlight the gaps and direct resources only to thosestores requiring a fix, cutting coverage costs and dramatically improving the ROI ofyour field marketing effort
  8. 8. How we analyse and drive ROI• Compliance gaps reviewed against classic sales drivers (DAVP)• All stores in the retailer estate included• Each gap is identified at a sku level, valued in the context of its potential contribution (lost sales) &modified according to the total value of your sales in that outlet• DAV gaps are assessed based on most recent data available• Promotional gaps forecasted using predictive modelling tools based on historic performance of yourbrands in each specific outlet – highlights late starters, early finishers and ‘basket cases’!• Stores segmented according to total potential to increase sales• Resources are then allocated or reduced/removed accordingly
  9. 9. Imposing a threshold 15 to 1 ROI on a database of 1600 storesprovides a call file of 883 stores (55%) but retains 80% of thepotential sales increase
  10. 10. Improving ROI at store level
  11. 11. Ranking by percentage uplift addressesvariations due to store size, but still….???Drilling down
  12. 12. Late start, early finish and lack of availability halfway through= poor performance
  13. 13. Example 2, high uplifts, but inconsistent
  14. 14. Was the product in the store?……
  15. 15. Was the product in the store?…..
  16. 16. Reasons for variations
  17. 17. Past performance for future returns
  18. 18. Prevention vs cure
  19. 19. Action plan depending on compliance
  20. 20. For example, 3 visit stores have biggest potentialto improve here
  21. 21. Beyond in-store compliance…• Many other reasons for store level under-performance– Low consumer demand / too few target consumersin the catchment area of the store– High concentration of other grocery outlets in theimmediate vicinity of the store– Poor category position in this specific store – lowerthan expected shopper traffic– Other local or store specific reasons• The start point is to segment the stores according toyour own assessment of consumer demand for yourbrands**20:20rdi works with GMAP as its exclusive partner for socio-demographic profiling
  22. 22. Start point– analyse areas of strong potential consumer demand andallocate those consumers to small post code sectors• We start by mapping consumer demandby postal sector using– TGI (Nielsen) survey data for yourbrands– FES data– Census data– Cameo Socio-demographic profilingspecific to your brands• Highlights groups of consumers morelikely to be using your brands• We map them geographically in 57Cameo groups or types (top linesummary of 10 super groups shownbelow)
  23. 23. We then use powerful gravity modelling tools to allocateyour target consumers to the retailer’s stores• Store catchment areas definedby drive times, consumerprofile & proximity ofcompetitor outlets• Forecasts total # of consumerslikely to visit each store• Also predicts how many ofthose will be your customers -% of profile consumers in aparticular store• Highlights underperformingstores which will receivepriority action• And also over-performingstores which represent ‘BestPractice’Example – Luxury Ice Cream in Multiple Convenience store group
  24. 24. Insight enables targeted deployment of a range of marketing tools –and also some decisions about where not to investLocal PostersExperientialeventsCouponsSamplingNew POPunitsStaff training& incentivesNo POPrenewalStore Estate map
  25. 25. • Combining EPoS data, promotional history &consumer demand information we can build storeclassifications that enable the brand owner to selectthe appropriate customer activation tool to drivepenetration, sales & category share• And the same data sets allow us to track, measureand refine the approach as we see the resultscome through• The benefits are compelling – in simple terms wecan reduce trade spend and increase sales!
  26. 26. Want to know more?
  27. 27. Easy Next Step - look for quick wins• 20:20 RDI runs a proof of concept workshop where we take 12months of EPoS data, review the impact of major promotionalactivity, run the model and demonstrate the missed potential• The objectives of the workshop are:– To analyse the impact of 3 recent promotions within a single retailer– To look for differences and similarities in executional compliance atindividual store level across the 3 events– To examine the opportunities offered by the differing sales driverswithin the retailer(DAVP)– To calculate a potential Size of Prize (SOP) associated with the retailerright now– To stimulate cross functional debate around the findings– To create hypotheses around the causes of the findings– To demonstrate the benefits associated with mining store level EPOS• The deliverables will be:– Analysis of 3 promotions– ‘Rogue Store’ analysis– ‘Best Practice Stores’ review– Promotional compliance Size of Prize– Distribution gap Size of Prize– A cross functional team motivated to challenge the way they currentlydo business
  28. 28. What data do we need to run a workshop?
  29. 29. Simple really…………
  30. 30. For more info on 20:20 RDI or to arrangea proof of concept workshop, contactLiz Rowell at Red Ark.+612 9437 1377liz@redark.com.auwww.redark.com.au

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