Consulting projects especially when it comes to consumer goods business are very demanding. The two most complicated areas are sales and marketing and supply chain. During consulting projects I have seen business analysts and management consultants struggling with understanding the business fast enough to deliver value to the customer. This course will give you the knowledge and insight into real life case studies that will make your life during a consulting project in a consumer goods business much easier. This presentation will help you improve your knowledge and skills in analyzing and improving Fast Moving Consumer Goods businesses (FMCG). It is designed for people who want to become management consultants, business analysts or have to run and optimize FMCG businesses on daily bases. In the course you will learn 3 things: 1. How to model FMCG business in Excel 2. How to improve sales and marketing in order to increase margin and profit 3. How to improve supply chain in order to increase margin and profit For more check my presentation: http://bit.ly/FMCGSlideshare

1. 1
FMCG for Management
Consultants and
Business Analysts
Practical guide how to analyze in Excel and
improve business during consulting projects

2. 2
In business you have to make a lot of important decisions
During your career in consulting you will do projects for consumer good
producers. Their business model tend to be pretty complicated

3. 3
SMCGFMCG
We have 2 different business models when it comes to
consumer goods

4. 4
SMCGFMCG
In this presentation I will only concentrate on FMCG and I will
show you what you have to learn to master this business
model

5. 5
FMCG are all branded goods that you consume
frequently during the year. In this category we have food,
cosmetics and other similar products

6. 6
Sales and Marketing
analyses in FMCG
Supply Chain analyses
in FMCG
Modeling FMCG
Business Model in
Excel
I will discuss 3 main things

7. 7
FMCG for Management Consultants
and Business Analysts
$190
$10
What you will see in this presentation is a part of my online course where
you can find cases showing analyses along with detailed calculations in
Excel
Click here to check my course

8. 8
FMCG Business Model

9. 9
Introduction to FMCG
Business Model

10. 10
We can be talking about 2 different models here
Branded FMCG with strong brand
awareness
Private labels
Private
label

11. 11
Main challenges in
FMCG

12. 12
For branded FMCG product I propose to have a look at the
following aspects
Brand Awareness
Reach (Weighted and
numeric distribution)
Your strategy across
many channels
Managing price
across channels
Leveraging the brand
Spreading beyond
original target group
Product lifecycle
Managing customer
experience across
channels
Efficiency of
marketing activities
Lifecycle of your
target groups
Seasonality

13. 13
Introduction to modeling
FMCG in Excel

14. 14
In the modeling phase I will concentrate on branded FMCG products.
The model will be created for cosmetics
Branded FMCG with strong brand
awareness
Private labels
Private
label

15. 15
In the next lecture I will show you the main drivers of the FMCG
model and on the basis of this we will create a business model in
Excel
# transactions
Average
revenue per
transaction
Total revenuex
% Fee of the
marketplace
Average
transaction value
Total searches % conversion
x
x
Total Costs
Total margin
-
Rent
People
Cost of traffic
Ratio of visitors
to searches
Average cost of 1
visit
+
x
Development

16. 16
Drivers of FMCG Model

17. 17
The FMCG business model is driven by some basic KPIs
# sold
Unit production
cost
Gross Margin Head office
Operational profit
Fixed Cost /
Quantity produced
Unit variable cost
+
Cost of sales &
marketing
Net Margin
-
-
Average price
Unit Gross Margin
-
x
Market share Market size

18. 18
FMCG for Management Consultants
and Business Analysts
$190
$10
To learn how to model in Excel FMCG check my online course where you
will get the full model of FMCG business
Click here to check my course

19. 19
Sales and Marketing in FMCG

20. 20
Overview of Sales in FMCG

21. 21
FMCG are all branded goods that you consume
frequently during the year. In this category we have food,
cosmetics and other similar products

22. 22
FMCG sells mainly through retailers. Some go into independent
distribution via own website and own stores

23. 23
Overview of Marketing in FMCG

24. 24
FMCG is pushing the customer through phases that make him at the end
loyal customer
Create brand
awareness
Teach people how to
use your products
Get the product in
front of the potential
customers
Convert the brand
aware people into
customers
Retain the customer
Up-sell and cross sell

25. 25
Therefore, marketing concentrates on 7 tasks
Make people aware of the
brand and product
Get the product in front of
him
Find and conquer niches
Expand the product
Expand the brand
Manage price, price
perception and discounts
Create mechanisms that will
sell / market on their own

26. 26
FMCG is probably the most advanced when it comes to marketing efforts
and uses practically every way to get its message across. Mainly uses paid
methods
Bought Media Owned Media Earned Media
 TV, radio, newspaper ads
 Paid digital reach: Adwords, Facebook, Pinterest,
Instagram, YouTube, paid digital banners etc.
 SEM
 Leaflets, inserts etc.
 Outdoor advertisement
 Affiliate programs
 Catalogues
 Advertisement at your partner’s media i.e.
Retailer
 Sponsored content
 Product placement
 Influencers (Youtubers, bloggers, celebrities)
 Motivation schemes for the sales force of your
Partner
 Brand Ambassadors
 Store-in-Stores (offline and online)
 Participation in wider loyalty program
 Your product and the package
 Your site - your factory, office, stores
 Your people
 Your web presence especially your website,
fanpages on Facebook and , YouTube channels
 Newsletters, sms and customer base
 Mobile apps and the underlying customer
(contact) base
 Own content and content marketing
 Referral Program
 Your own loyalty program
 Free users (in Freemium and Free trial)
 The products of your partners (powered by)
 Partners’ owned media when you do not have to
pay to get in touch with end-consumers
 Partner’s sales force and customer support
 Guest blogging, guest presence in YouTube
channels etc.
 Word Of Mouth especially Virality
 Presence in aggregators of reviews (i.e. Yelp)
 Evangelists and
 Organic SEO
 Social Following platforms i.e. Quora
 Co-branding (Intel inside)
 User Generated Content (post by fans,
recommendations, photos, reviews etc.)

27. 27
Main challenges in Sales and
Marketing in FMCG

28. 28
There are number of challenges in the Sales and Marketing of
FMCG
Picking the right
distribution mix
Managing price and
price perception
across channels
Customer trends i.e.
for Millennials,
Generation Z
Private labels done
by Retailers
Saturation point in
penetration
Saturation point in
consumption
Growing importance
of Marketplaces
Growing importance
of online
Digital Marketing
Leveraging brand and
expanding product
Loyalty programs
Dwindling
importance of direct
sales force

29. 29
Sales & Marketing cases
in FMCG

30. 30
For examples of sales analyses done in FMCG during consulting project
check my online course
Sales channel analysis How to expand the brand? Sales force efficiency
How to find the white
spaces uncovered by your
brand
Direct-to-customer model
vs current sales mix
How to analyze the
motivation system of sales
force
Click here to check my course

31. 31
Sales force efficiency analysis –
Introduction

32. 32
Let’s have a look at the sales force efficiency in Poland of a cosmetics
producers
20 sales rep in Poland
A sales rep visits all
customers in his region
You want to improve
efficiency

33. 33
Before we go to the Excel let’s talk about what we have to
know to judge the efficiency
What is the full cost per 1 sales
rep?
What value creates a specific
type of customer?
Is it worth to visit a customer?
How often should I visit specific
type of customers?
How I can improve efficiency of
the sales rep?
What can I standardize
automate?
What I can outsource to
cheaper provider?

34. 34
How to find the white spaces untouched
by your brand – Introduction

35. 35
Let’s have a cosmetics producer and see where is the potential for
development
You are a market leader
in Poland
You have entered 5
years ago Romania
You want to find white
spaces in Poland

36. 36
How to find the white spaces untouched
by your brand – Solution

37. 37
Let’s have a cosmetics producer and see where is the potential for
development
You are a market leader
in Poland
You have entered 5
years ago Romania
You want to find white
spaces in Poland

38. 38
0,2 0,4
0,9
1,3 1,4
2,0
3,2
7,0
6,6
4,8
1,2 1,0 0,8
2,1
2,5
1,0
R1 R2 R3 R4 R5 R6 R7 R8 R9 R10 R11 R12 R13 R14 R15 R16
When we look at the data we can see that there are regions where we
are really weak. In those regions there is a big potential for
improvement Average and target for
regions with smaller
sales per capita
Sales per person - Currently
In USD per Capita

39. 39
11 172
8 401
4 908
3 174
2 608
1 892
1 861
1 776
1 266
674
205
0 0 0 0 0
37 937
R1 R2 R3 R4 R5 R11 R13 R12 R16 R6 R14 R7 R8 R9 R10 R15 Total
Using the data in Excel we can estimate the potential increase in sales
by regions
Potential of increasing sales
In thousands of USD

40. 40
1% 3%
6%
10% 10%
17%
27%
58%
55%
40%
12%
21%
8%
30%
25%
10%
R1 R2 R3 R4 R5 R6 R7 R8 R9 R10 R11 R12 R13 R14 R15 R16
When we look at the data we can see that there are regions where we
are really weak. In those regions there is a big potential
Average and target for
regions with smaller
share
Share in local market - Currently
In %

41. 41
14 544
11 283
7 099
5 301
4 439
1 609 1 550 1 211 1 067 0 0 0 0 0 0 0
48 104
R1 R2 R3 R4 R5 R13 R11 R6 R16 R7 R8 R9 R10 R12 R14 R15 Total
Using the data in Excel we can estimate the potential increase in sales
by regions
Potential of increasing sales
In thousands of USD

42. 42
FMCG for Management Consultants
and Business Analysts
$190
$10
To see the rest of the cases check my online course where you can find all
the cases along with detailed calculations in Excel
Click here to check my course

43. 43
Supply Chain in FMCG

44. 44
Overview of Supply Chain in
FMCG

45. 45
FMCG are all branded goods that you consume
frequently during the year. In this category we have food,
cosmetics and other similar products

46. 46
FMCG supply chain is pretty complicated on the outbound side – the
distribution to end-customers

47. 47
Main challenges in Supply Chain
in FMCG

48. 48
There are number of challenges in the Supply Chain in FMCG
Many suppliers
Dedicated
transportation
modes
Many Channels of
sales
Minimum Order
Quantity
Direct DistributionMultichannel
Local version of the
product
Shelf Life
Added value services
and products
Distribution through
Marketplaces
Customization

49. 49
Supply chain cases in
FMCG

50. 50
For examples of supply chain analyses done in FMCG during consulting
project check my online course
Chicken Producer - Top-
down approach
Chicken Producer - Fuel
usage
Chicken Producer -
Overtime analysis
Juice Producer - Simulation
Optimal production batch
analysis - FMCG
2-stage production
planning
Click here to check my course

51. 51
FMCG for Management Consultants
and Business Analysts
$190
$10
To see the cases check my online course where you can find all the cases
along with detailed calculations in Excel
Click here to check my course

52. 52
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Consultants
Practical Guide
presentation
For more information on Supply Chain check also my other presentation

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