2. resources: people
142 people in Moscow HQ
7 regional offices
83 permanent representatives in
smaller cities
active coverage of 617 cities
*source: GFK & RAMU 2009 BTL market survey
(next two slides)
about us
action! was founded in 2004
action! creates consumer and trade
solutions
more clients recommend action! to
their peers than any other btl agency*
action! looks at the world differently
Clients:
beeline, electrolux, kimberly clark,
fritolay, pepsi and more
14. To understand the current field situation we conducted an audit of 50 points of sale. (in proportion to
the channel mix specified in the brief) :
Test audit
SM 14% 7
Kiosk 14% 7
BTC 72% 36
Total 50
15. The main conclusions:
Test audit
10% points of sales have difficulties with ordering product.
28% points of sale have difficulties with product delivery (out of stock)
POSM presence (any beer brand): 0%
Promo activities (beer brands): 0%
16. The main conclusions:
Test audit
# of outlets
Edelweiss
(Эдельвейс)
Guinness
(Гиннесс)
Heineken
(Хейнекен)
Ohota
(Охота)
PIT (ПИТ)
Zlaty bazant
(Златый
Базант)
kiosk 7 42,86 42,86 100,00 100,00 57,14 71,43
SM 7 85,71 71,43 57,14 85,71 42,86 71,43
BTC 36 50,00 50,00 88,89 97,22 33,33 52,78
- Distribution level more than 50 %
Brand presence at points of sale (%):
17. Target audience analysis
Goals :
to understand the motivational programme member profile
to understand their attitude to such programmes
Profile
Programme members (salesmen and administrators)
Women: 92%
Married: 79%
Over 45 years old 46%
Children 81%
Children under 18 66%
Hobbies: 36% specified quiet leisure activities such as going for a stroll, watching
movies, theatre, reading
More than 2,500 trade channel employees were
surveyed
18. Attitude to motivational programs
96% take part in motivational programmes
4% don’t take part in the other programs due to:
lack of time (23%)
they don’t trust such programs (30%)
administration prohibition (18%)
The most attractive prize – gift certificates of main chains ( seen as a money reward) (52%)
25% don’t care about the type of the prize.
89% participants noted that motivational program is attractive for them because of prizes.
Reasons for refusing to participate motivational programmes :
21. Programme availability
MOTIVATIONAL PROGRAMME
SHOULD BE EASY TO
UNDERSTAND (FOR
PARTICIPANTS)
PRIZE FUND AND
MOTIVATING FACTORS
SHOULD BE ATTRACTIVE AND
DESIRABLE
ALL PARTICIPANTS INVOLVED
INTO THE PROGRAMME
SHOULD BE INFORMED OF
THEIR RESULTS, AND GET
INFORMATION ABOUT THEIR
EFFECTIVENESS.
THE MOST EFFECTIVE WAY IS
TO USE CRM SYSTEM WHICH
HAS BEEN DEVELOPED BY
HEINEKEN (THE FIRST
EXPERIENCE IN FMCG
MARKET)
Information availability Achievable result
GOALS PER EACH POS
SHOULD BE
ACHIEVABLE AND
FLEXIBLE
Result 15% sales growth (SELL-IN)
Loyalty increasing to Heineken brands
Programme principles
22. Programme KPI
Sales Growth -15%
Merchandising
Range of products
POSM
Increased loyalty of trade channel personnel
Criteriaof
“Model”outlets
23. Approach. ROI Calculator
Average turnover per month
SM 50 000∂.
BTC 25 200∂.
Kiosk 20 000∂.
# of months 12
Type # of outlets
share of
the
universe
% of growth
expected
turnover
including growth
ESTIMATED
INCREMENTAL
SALES
Cost per visit
additional
expenses (POSM
production, IVR,
Management)
gross margin
(assumption)
INCREMENTAL (GM)
minus all expenses
ROI (based
on
estimated
growth)
15% 234∂. 1 21% 3% 94∂. 35%
SM 1000 13% 15% 57 500∂. 7 500∂. 234∂. 1 1 575∂. 3% 94∂. 35% 723∂. 38%
BTC 6000 75% 15% 28 980∂. 3 780∂. 234∂. 1 794∂. 3% 94∂. 35% 202∂. 18%
Kiosk 1000 13% 15% 23 000∂. 3 000∂. 234∂. 1 630∂. 3% 94∂. 35% 93∂. 10%
Total
Total 231 380 000∂. 33 180 000∂. 1 870 586∂. 6 967 800∂. 748 518∂. 2 026 096∂. 21%
Total 3 052 560 000∂. 398 160 000∂. 22 447 034∂. 83 613 600∂. 8 982 220∂. 24 313 147∂. 21%
5%
8000
Breakeven point (minimal growth of turmover to cover field and additional expenses)
# of visits per month
Investments to
outlet (prizes
fund)
1 outlet per 1 month
Calculator
25. Prize Fund
Prize Fund should meet the following requirements:
To be attractive for participants
To have a wide range of goods for optional choice
Short lead time for receiving prize
Effective logistics including management of stock
Possibility for constant purchasing, short lead time for purchasing/production
Effective Cash Flow
26. Prize fund. action! experience
Our wide experience in motivation programme execution and
programme data analysis shows that the most attractive prize for
customers is a gift certificate :
Statistics are based on more than 200 000 orders
Gift certificate share = 77%
28. We propose catalogue of prizes with 3 types*
1.Prizes which don’t require logistics
2.Retail Chain cards
3.High perceived value prizes
*saving of about 15% of prize fund if participants order prizes themselves
Mechanics for prize distribution:
•Automatically (type 1)
•By Sales Representatives
•By Mystery Shoppers (immediate prizes for product placement)
•Redemption centre (via our offices)
Prize Fund Proposal
29. Prize fund. Type 1
Prizes which don‘t require logistics
Eldorado cards
E-shop OZON.RU
Wide range of products, regional coverage – 37 cities,
Possibility to work with legal entities to replenish private accounts
Mobile account replenishment (all operators)
Fuel cards (Ruspetrol)
These cards are accepted on TNK, Slavneft, Sibneft, Rosneft,
Tatneft & others. About 500 points in Moscow & Moscow Region
30. Prizes Fund. Type 2
Retail Chain Cards
Beauty Impressions
Sport Family Food
Clothes
31. DVD-disc sets
We have an opportunity to buy license Universal disks at low price – 72 rubles per disk. The
price depends on volume of the order, so we can recommend this as a guaranteed prize for
«model outlet». It can be distributed by mystery shoppers during their visits
Tickets to performances and shows
As we know Heineken have free-charge tickets to performances (if Heineken is sponsor of this
event, for example). It can be special offer to all participants or to the best performance
participants
On-line prizes:
lottery - participant can win a lot # of points by spending minimum # of them, prize fund is
collected from points of participants
virtual auction
on-line games with opportunity to spend points for upgrading
High perceived value prizes. Type 3
32. Decision for taxes
Based on our wide experience we recommend the following accountancy scheme to
minimise taxes on the one hand and to observe the rules on the other hand:
10% of prizes fund are in official documents, 90% we arrange as service (POSM placement,
audit, trainings etc.)
the list of prizes shouldn‘t include prizes of a value more than 3 999 rubles
Saving cost calculation:
100% arrangement: prize cost + VAT (it is not subject to compensation in this case) + 20%
taxes on profit
If the prize costs 100 rubles, you actually pay 138 rubles
Our scheme: 10% - above mentioned calculation, 90% - prizes cost + VAT (cost of our
scheme)
If the prize costs 100 rubles, you are to pay 10+3,8+90+16,2 = 120 rubles including VAT to
compensation - 16,2 rub.
Actual cost of 103.8 rub vs 138 rub.
41. Work with participants
Programme attractiveness for participants starts at the planning stage. However it is highly
important to keep the participants informed and interested in programme at the set-up stage
and after it. Otherwise interest to the program will be lost.
Basis of success for involving participants is the sales approach. We consider communication
with a participant as a motivational programme sales tool.
Action! experience – quantity of active programme participants increased by 80% per 9 program
months.
42. Motivation programme management
CRM-exported data , “field” reports
Award cost
Award types
Delivery award time
Parameters for analysis
Decision
Participants activation Resource planning
Transport logistics
Delivery time optimisation
Prize fund modification
Participants number
Number of active participants by groups
Parameters dynamic
43. Communication tools
Database creation via which regular mailing is executed (SMS, E-mail, mail)
Personalised addressing
Face-to-face communication
Information materials
Creating info occasions – to maintain interest to the program (draws, events, changing
programme conditions)
Participation stimulation (bonus per the 1st
sale, additional bonuses subject to fulfilling
target levels)
IVR-support (Hot line)
44. Brochure- contains programme conditions (to be
distributed during the first visit). Contains participant
questionnaire (personal data, contact information)
Prize fund catalogue -a leaflet with prizes descriptions,
codes, pictures and prices (specified by relative value).
Sticker- programme reminder, containing consultant &
contact information (sticks on a suitable surface in POS)
Participant card -small programme directory-reminder.
Contains summary of main programme conditions and
hotline number.
Information Materials
45. Hotline
Hotline provides the following information support :
Programme conditions
Registration in programme
Score tallies
Balance
Prize order
Complaints handling
Hotline work parameters :
Schedule of work: Monday – Friday 9.00 am - 9.00 pm Moscow time
Period – 12 months
3 operators
IVR text regular updating
# incoming calls - not more than 40 per day
Calls recording
service level is not less than 85%
46. Event
It is very important to distinguish the most successful
participants during the programme. (possible criteria:
scores, turnover level, etc).
The distinguished result should be – the best team (best 10,
best 100, etc)
Action! recommends as incentives:
Special subject events :
Open air party
Thematic abroad trips
Optional: internet –portal with interactive interface and
on-line competitions and lottery.
49. Client’s Feedbacks:
Ural Regional Representative Office ОАО
“Вымпелк ом» conveys the gratitude for “Step
Forward” Event organization and execution.
The event was really bright and memorable.
We are sure that our future cooperation will be as
positive and fruitful as the event.
D. Baklanov
Ural Regional Director
On behalf of our Company and myself I would like
to thank the whole Action team for excellent event
organization. You have proved your
professionalism in Events organization – one more
time, as usual!
Ekaterina Ilyina
Trade Marketing Manager
Moscow
50. Heineken elite club
Goals:
To distinguish participants who achieved best results
To heighten loyalty
To establish stretch goals for all participants
Selection principles:
Goals should be ambitious and achievable.
Possible indicators –number of scores, definite turnover
achievement (subject to range and shelving requirements
fulfillment)
Distinctions
“Gold star” (accessory) awarding
Best performers are announced via all information channels
of the program
Mini event for all POS staff in honour of joining the elite
Heineken club
51. Business advantages:
Taking part in bonus programmes (exclusive conditions)
Taking part in promo
Improving POS standards = increased sales
Extra advantages:
Taking part in a dream prize draw
Extended prize fund
Taking part in events (automatically)
Possibility to take part in business trainings
New participant’s presentation (via programme communication tools)
Heineken elite club
52. Account manager
Rzhanova Tatiana
Account manager
Rzhanova Tatiana
Reporting coordinator
Vitaliy Kuzovnikov
Reporting coordinator
Vitaliy Kuzovnikov
Purchasing
coordinator
Berezgova Alesya
Purchasing
coordinator
Berezgova Alesya
Financial administrationFinancial administration DesignersDesigners ProductionProductionLogisticLogistic
Field manager
Smirnov Roma
Field manager
Smirnov Roma
Prizes Fund Manager
Anna Yakovskaya
Prizes Fund Manager
Anna Yakovskaya
Account director
Polkanova Olga
Account director
Polkanova Olga
Warehouse
Coordinator
Bakhirev Sasha
Warehouse
Coordinator
Bakhirev Sasha
Reporting
Coordinator
Alesya Yakovleva
Reporting
Coordinator
Alesya Yakovleva
CRM & IVR manager
Alyona Stupaeva
CRM & IVR manager
Alyona Stupaeva
Reporting
Coordinator
Kopchikova Ksenia
Reporting
Coordinator
Kopchikova Ksenia
IVR coordinator
Masha Terjan
IVR coordinator
Masha Terjan
HR
Terebova Natasha
HR
Terebova Natasha
Management structure
53. Appropriate in-depth experience
Financial stability
Strong management structure ready to carry out the project
Long-term cooperation with prize suppliers
Wide & deep regional structure
Our business resources (financial and human) and
experience enable us to carry out any Heineken
project to the highest level of quality
Why Action?
55. Project field personnel
There are two different approaches:
Agency staff involvement
Client staff involvement + control by the agency
Judging by our experience, agency staff involvement is more efficient. Client staff usually
have lots of other functions, agency personnel on the contrary 100% aimed at motivation
programme goals.
action!
Unique experience and system of personnel training and management in terms of
motivational programmes
Sales approach is in the basis of our system– «we sell motivational programmes to
participants».
Ready to take responsibility for the result!
56. Mystery shopper scheme
Open audit
visits – 1 per month 8000 POS of address programme
coverage – 100% per month
18 auditors involved
Visits quantity per day– 20 visits per auditor
57. Field personnel functions
POS audit, report filing,
Consulting on programme, objections solving,
Programme parameters fulfillment control including photo report
optional– prizes delivery
profile
Experience of work for similar projects
age 25+
Excellent product range knowledge and competitive advantages knowledge
Ability to carry out project properly
Real interest to work in this area
control
Agency supervisors
Coordinators field visits (twice per month)
Sales representatives control
Joint visits (Client+ agency representative)
58. Field personnel training system
Training theme Content
main training
(at set-up stage)
Product knowledge
Programme mechanic
Reporting
Sales stages (getting into contact with POS, programme presentation,
objections handling)
Final test to get the permission for work in POS
Trainings after field visits (weekly) Typical objections solving
Complex field situations and problem solving
Field trainings Work correction (coaching in POS)
All supervisors have specialised training on coaching skills
Trainings for consultants and supervisors
Training team:
Moscow – staff trainers
*all trainings have a video copy and supplementary materials
59. Reporting
Action! has a bespoke on-line reporting system, based on PDA.
Advantages:
On-line reports
No manual data capturing, minimising errors
Automatic photo reports – there is no need to collect them by coordinator constant
field personnel control
Reports types
Field reports (POS checking results)
Prizes ordering reports
Prizes delivery report (if Agency is responsible for the delivery)
