This document discusses challenges facing businesses in managing performance in a difficult industry landscape. It outlines issues such as price deflation, increased competition, and changing consumer tastes. The document then proposes that CEOs can implement a new approach to clearly identify growth enablers versus detractors. This involves decomposing the P&L, evaluating business foundations and activities, and prioritizing the most impactful areas for change to reduce inefficiencies and drive growth. Interested parties are invited to contact the strategy consulting firm Fifth P to learn more about how they can help companies achieve clarity and implement improvement programs.

1. FIFTH P Strategy
Growth Enablers Assessment
1

2. Industry 1 landscape and challenges in managing performance
2 An effective way through a challenging landscape
3 The winning proposition
4 How to find out more

3. A combination of industry-wide issues and internal factors
are impacting businesses’ performance…
A challenging industry landscape Some of the most pressing issues in CEOs’ mind
 Long-term market price deflation
increases P&L volatility and erodes
profit margins
 Highly promoted market with
increased shopper promiscuity and
intensified retail price war
 High proliferation of brands and
commoditisation of the lager
category is eroding brand equity
 Changing consumer taste and a
growing shopper attitude towards
experimentation among younger
drinkers further diminish loyalty to
traditional lager brands
 Difficulty in objectively assessing the impact
of internal forces and team dynamics on
performance
 Challenge in connecting detailed
performance metrics with the full P&L
 Focus on creating strong innovation
pipelines and brand building activities that
keep the business from getting into trading
wars that further deflates the market
 How to inject brand value back into the
portfolio through effective new launches and
an holistic brand portfolio strategy
 Need to rebalance trade and above the line
investment to focus on base sales growth
through the role of the shopper and
consumer

4. …with companies facing some long-lasting roadblocks
in their quest for growth…
Example 1 Example 2
DIFFICULTY IN CONTROLLING TRADE SPEND
VOLATILITY AND LIMITING ITS IMPACT ON
MARGIN EROSION
INTANGIBLE INEFFICIENCIES CAUSED BY
INHERENT FLAWS IN BUSINESS FOUNDATIONS
 How do you measure the impact of
collaboration and cross-functional
interaction on your ability to perform in
the market?
 How do you evaluate how fit for
purpose your organisational structure,
processes and tools are in enabling
growth?
 How do you measure and create
linkages between certain culture
enablers and actual activities in the
growth agenda?
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
An example of beverage company
TTraodpe 4 T Torpa 4de % of GTSrVade Exc MarTgoinp G 4i vMeargin %
2005 2006 2007 2008 2009 2010 2011 2012
 Lack of visibility of true impact of price
increases on long-term cost of trade
 Inability to clearly ascertain which activities
are growth enablers and which are growth
detractors

5. Industry 1 landscape and challenges in managing performance
2 An effective way through a challenging landscape
3 The winning proposition
4 How to find out more

6. CEO’s can cut through the complexity and implement
a new approach to bring clarity on growth enablers
Achieve high level of clarity as to what drives growth and what
detracts from it amongst the current activities of the business
Have a repeatable process to evaluate the foundations’ impact
on driving growth for the business
Develop a simple and actionable priority list of the most
impactful enablers of growth to drive change and reduce
inefficiencies
1
2
3

7. Achieve high level of clarity as to what drives growth and what
detracts from it amongst the current activities of the business
1
+ 2% - 5% - 2% - 2% + 10%
NPDs Loss in
Distribution
 A clear process to decompose the structure of the
P&L and the sources of growth
 Evaluation of each of the current activities toward
company performance
 Assessment of external vs internal causes and linkages
to foundations
Loss of
Listing
Structural Increase
in Cost of Trading
Net Price
Realisation
WHAT MAKES OR BREAKS GROWTH?
- 3%
Brand
Loyalty

8. 2
Have a repeatable process to evaluate the foundations’ impact on
driving growth for the business
Alignment of
PEOPLE’s skills
with business
Ability to requirements
constantly
monitor the
COMMERCIAL
ENVIRONMENT
Best
ORGANISATIONAL
STRUCTURE for
cross-functional
collaboration
Cohesive
CULTURE and
WAYS OF
WORKING to
retain talent
Fit for Purpose
ASSETS &
CAPABILITIES to
support growth
Perceived agenda
strength of
VALUE
PROPOSITION in
the market
A combination of impartial
assessment of capabilities
coupled with qualitative
statements extraction from
within the teams (via interviews
and targeted workshops) to
arrive at a fair and holistic
overview of the impact of each
of these pillars on growth,
benchmarked against industry
peer group and best-in-class
EXAMPLE OF KEY ORGANISATION’S PILLARS AFFECTING GROWTH

9. 3
Develop a simple and actionable priority list of the most impactful
enablers of growth to drive change and reduce inefficiencies
A clear overview of the most
critical external and internal
material issues based on their
impact on financial performance
that provides the ability to
effectively prioritise future
actions and subsequent
improvement programmes
EXAMPLE OF SCORECARD TO IMPLEMENT AND MONITOR
IMPROVEMENT PROGRAMMES
Red:
Severe Problems
exist or future
problems may arise
Yellow:
Business foundations
can be improved to a
healthier level to
contribute towards
achieving growth
Green :
‘healthy’ components
for the time being
CULTURE &
WAYS OF
WORKING

10. Industry 1 landscape and challenges in managing performance
2 An effective way through a challenging landscape
3 The winning proposition
4 How to find out more

11. What is the most effective way to achieve this?
 LOW COST
 RAPID ASSESSMENT
 LOW IMPACT ON BAU & RESOURCES
 ACTIONABLE OUTCOME
 OUTSIDE-IN THINKING AND OBJECTIVITY

12. Industry 1 landscape and challenges in managing performance
2 An effective way through a challenging landscape
3 The winning proposition
4 How to find out more

13. Interested? How to find out more…
+44 (0) 20 3735 5762
info@fifth-p.com
We are Fifth P. Since 2011, we’ve worked with our clients in the FMCG & consumer product industries across
Europe to create growth strategies that sustain long-term growth & leave lasting legacies

14. STRATEGY CONSULTING
LEGACY • EXPERTISE • AGILITY • PASSION
www.fifth-p.com