A benchmarking exercise was conducted in Q1 2016 interviewing senior managers from several major FMCG companies including Mondelez, Unilever, Nestle, and L'Oreal about their eCommerce investments. The interviews gathered qualitative data over two hours to answer key business questions for the companies around where they stood compared to peers, what successful strategies others were using, opportunities and investments, and how to adapt to leadership positions. Additional secondary research and focus groups were also utilized. The document discusses definitions and terminology around eCommerce, outcomes companies are achieving through it globally, and the primary focus areas in Southeast Asia in 2016.

1. © 2016 B4P
eCommerce
Conference
David Myles

2. © 2016 B4P
Benchmarking methodology
Participating companies
▪ Mondelez*
▪ Unilever*
▪ Nestle
▪ L’Oréal*
*Regional and local interviews
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▪ A specific benchmarking exercise was undertaken by B4P on
the topic of eCommerce investment in Q1 2016
▪ This gathered information by In-depth Interview (IDI)
qualitative research interviews of two hours duration of two
Senior Managers – local and regional. In four out of five
companies, two roles were interviewed. Generally, these were
in Australia and Singapore
▪ Research was carried out in December 2015/January 2016. Two
further companies were unable to meet that timeframe, and
were interviewed in mid to late March 2016.
▪ The role of the benchmarking in the data collection is to
answer Big Business Questions such as…

3. © 2016 B4P
Which business questions were answered by
benchmarking?
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1. Is our company behind, level or
ahead of our peer group direct
competitors?
2. What are they doing that is working
(what does good look like) that we
could do?
3. Have we got our thinking right in
terms of…
▪ Opportunities?
▪ Investment? Which resources?
▪ In general?
4. Which examples from other companies are
analogous, and could be interesting to us…
▪ which are a stretch for us and can push us?
▪ which are we already surpassing?
5. If we are in a leadership position in our
industry, what are the ramifications for
bringing customers, consumers and shoppers
with us? And what are the risks of a leadership
position?
6. What should we do differently as a result?

4. © 2016 B4P
Additional methodology used with project sponsor
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(Very) deep dive into
Secondary Quantitative
– over 90 reports
reviewed from around
the world
Primary data modelling
12 focus groups (four per
macro channel):
• Bricks and Mortar MGBs
• Grocery on line shoppers
• Small businesses using
eCommerce
• Non-Grocery/Shoppers
using eCommerce

5. © 2016 B4P
A quick word about eCommerce terminology and
language
▪ Lots of ambiguity and little clarity around:
▫ What IS and IS NOT included in the area of “eCommerce”
▫ Its relationship with “digital”
▫ Where it does and should sit in the structure, and in the Region
• Is it a focus for Sales, Marketing, or both?
▪ There is little common language yet amongst research sample
▪ eCommerce at times behaves like a sales channel… but it does more than that
▪ Terms used in this debrief:
“eComm Way of Working = way of communicating, and/or selling,
and/or influencing and/or providing products and services to consumers,
shoppers and/or trading partners”
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2012
“I think it’s just a
communications
channel.”
Marketing Director
$400m firm

6. © 2016 B4P
Primary focus in 2016
Globally eCommerce offers 11 outcomes for Suppliers – yet
narrow definitions of eCommerce restrict thinking at times…
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16.07.04 B4P eComm emailed inc SE ASIA
view
SE ASIA
Outcomes companies are achieving from eComm globally
Channel
Maintain or
increase sales
or margins*
Reduce cost
to serve**
Improve
customer
service**
Own, convert
consumer
comms***
Source and
own data to
sell more***
Retailers – traditional and
emerging e-grocers
Customers – small and/or high
cost to serve
Direct to shoppers to
supply/communicate/get
data
Secondary focus in 2016 No focus as yet
Narrower/traditional definitions: *selling thru customers **business to business *** direct to consumer

7. © 2016 B4P 716.07.21 eCommerce in FMCG

8. © 2016 B4P 816.07.21 eCommerce in FMCG
David Myles, B4P
CELL ++ 61 410 531 030
OFFICE ++ 61 2 9375 2178
FAX ++ 61 2 9293 2930
EMAIL David.Myles@BforP.com
WEBSITE www.BforP.com
Benchmarking for Performance
Benchmarking for Performance
@BforP
Jen Galama
EMAIL Jen.Galama@BforP.com
CELL ++61 432 213 233
Roger Harris
EMAIL Roger.Harris@BforP.com
CELL ++61 412 230 120
Thank you