Pepsi was given control of Lay's chip business in Russia after a sales crisis caused Lay's to reduce staff. However, Pepsi struggled to regain the same market share as their sales remained too low. The author analyzed the issues, such as empty stockrooms and underloaded trucks, and implemented solutions like building a warehouse and loading chips on soda trucks. This improved logistics and increased sales. The author also negotiated with distributors to stabilize pricing and resume shipments. As a result, Pepsi's chip sales increased by 50% in central regions and 25% in other regions, and their market share grew. The author was then promoted within Pepsi.
This document describes the author's experience with recruitment agencies and how it led them to start their own executive search retainer agency called Retainment. The author discusses some of the shortcomings they observed at other agencies, such as recruiters not fully understanding the client briefs and promoting pre-selected candidates instead of finding the best fit. As a retainer agency, the author's agency aims to act as a temporary extension of the client team to better understand the client's values and ensure a strong personal fit between client and candidate. Their goal is to make the recruitment process more personalized.
This document discusses changes in distribution models and sales strategies in Russia. It notes that retail chains are growing rapidly and competing for better prices, taking margin away from both manufacturers and distributors. As a result, distribution models need to be adapted to the new market conditions. Specifically, manufacturers over $1 billion in sales are reducing the number of distributors and focusing on the strongest ones. Models like DSD, 3PD, and DS3 are discussed in terms of their control over shelves and cost to serve in this evolving landscape.
1. A Russian agro company launched a consumer brand in 2004 and expanded into 5 categories including grains, flour, and sugar.
2. By 2010, sales increased five times through expanding product lines and a "locomotive" branding strategy of first establishing brand awareness and trust in sugar before expanding into other categories.
3. The company optimized operations through lean manufacturing, packaging innovations, logistics improvements, and targeting sales volume goals to drive cost leadership in the markets.
This document discusses strategies for converting a distribution model from third-party distribution (3PD) to direct-store delivery (DS3) in Russia. Key points:
- In 2003, a company hired 500 sales representatives and converted operations from 3PD to the DS3 model to gain more control over margins and sales. This led to 40% annual sales growth over 3 years.
- The market has changed significantly since then, with retail chains growing and demanding better prices. Margin is shifting from manufacturers to retailers.
- The original DS3 model is no longer effective, as order sizes have decreased while delivery costs have increased.
- Mixed delivery teams with representatives selling multiple brands were implemented to reduce costs
The document discusses Danone's experience introducing a new business model in Russia in the 1990s. Key points:
- Danone purchased a confectionary plant and aimed to expand to 80 cities in 2 years, but existing distributor models did not support this goal.
- Danone developed a model where the distributor paid agents 3% of Danone's product turnover, with Danone covering additional salary costs. This incentivized distributors to promote Danone's products.
- Within 2 years, Danone's turnover doubled and the 3% covered full agent salaries with no additional investment needed. Strong processes were developed for agent management, resulting in 60,000 retail outlets and 40% revenue growth.
The document discusses a company's strategy to enter the commodity market for barley and malt. Some key points:
- The agro leader's strategic goal was to enter new commodity markets, including the $600M barley market which was in short supply and high margin.
- The company analyzed market segments like spot markets, seed programs, players like multinational companies, local brewers, and malthouses.
- It focused on contracting and supplying large brewers rather than small buyers due to risks. The company had to learn specifications and build relationships.
- Success required persuading management to change payment terms, re-equipping silos, and certifying facilities.
-
Pepsi was given control of Lay's chip business in Russia after a sales crisis caused Lay's to reduce staff. However, Pepsi struggled to regain the same market share as their sales remained too low. The author analyzed the issues, such as empty stockrooms and underloaded trucks, and implemented solutions like building a warehouse and loading chips on soda trucks. This improved logistics and increased sales. The author also negotiated with distributors to stabilize pricing and resume shipments. As a result, Pepsi's chip sales increased by 50% in central regions and 25% in other regions, and their market share grew. The author was then promoted within Pepsi.
This document describes the author's experience with recruitment agencies and how it led them to start their own executive search retainer agency called Retainment. The author discusses some of the shortcomings they observed at other agencies, such as recruiters not fully understanding the client briefs and promoting pre-selected candidates instead of finding the best fit. As a retainer agency, the author's agency aims to act as a temporary extension of the client team to better understand the client's values and ensure a strong personal fit between client and candidate. Their goal is to make the recruitment process more personalized.
This document discusses changes in distribution models and sales strategies in Russia. It notes that retail chains are growing rapidly and competing for better prices, taking margin away from both manufacturers and distributors. As a result, distribution models need to be adapted to the new market conditions. Specifically, manufacturers over $1 billion in sales are reducing the number of distributors and focusing on the strongest ones. Models like DSD, 3PD, and DS3 are discussed in terms of their control over shelves and cost to serve in this evolving landscape.
1. A Russian agro company launched a consumer brand in 2004 and expanded into 5 categories including grains, flour, and sugar.
2. By 2010, sales increased five times through expanding product lines and a "locomotive" branding strategy of first establishing brand awareness and trust in sugar before expanding into other categories.
3. The company optimized operations through lean manufacturing, packaging innovations, logistics improvements, and targeting sales volume goals to drive cost leadership in the markets.
This document discusses strategies for converting a distribution model from third-party distribution (3PD) to direct-store delivery (DS3) in Russia. Key points:
- In 2003, a company hired 500 sales representatives and converted operations from 3PD to the DS3 model to gain more control over margins and sales. This led to 40% annual sales growth over 3 years.
- The market has changed significantly since then, with retail chains growing and demanding better prices. Margin is shifting from manufacturers to retailers.
- The original DS3 model is no longer effective, as order sizes have decreased while delivery costs have increased.
- Mixed delivery teams with representatives selling multiple brands were implemented to reduce costs
The document discusses Danone's experience introducing a new business model in Russia in the 1990s. Key points:
- Danone purchased a confectionary plant and aimed to expand to 80 cities in 2 years, but existing distributor models did not support this goal.
- Danone developed a model where the distributor paid agents 3% of Danone's product turnover, with Danone covering additional salary costs. This incentivized distributors to promote Danone's products.
- Within 2 years, Danone's turnover doubled and the 3% covered full agent salaries with no additional investment needed. Strong processes were developed for agent management, resulting in 60,000 retail outlets and 40% revenue growth.
The document discusses a company's strategy to enter the commodity market for barley and malt. Some key points:
- The agro leader's strategic goal was to enter new commodity markets, including the $600M barley market which was in short supply and high margin.
- The company analyzed market segments like spot markets, seed programs, players like multinational companies, local brewers, and malthouses.
- It focused on contracting and supplying large brewers rather than small buyers due to risks. The company had to learn specifications and build relationships.
- Success required persuading management to change payment terms, re-equipping silos, and certifying facilities.
-
The document discusses how to select an executive search agency to find top managers. It recommends either selecting a single agency or letting multiple agencies compete for the job. Using an exclusive long-term retainer with an international agency that knows the local market and has no candidate restrictions provides the best chance of finding the right manager. The document provides contact information for Stanton Chase, an executive search firm operating in Russia since 2010.
Between 1992 and 2012, China's economy grew at an unprecedented rate, with its GDP increasing by over 10% annually for much of that period. This rapid growth transformed China into the world's second largest economy and led Chinese low-cost manufacturers, like PLM, to play a major role in global supply chains.
This document discusses a single stock keeping unit (SKU) for a low-cost manufacturer that produces three different products using the same production line model (PLM). The manufacturer aims to reduce costs by consolidating production onto one line that can switch between making the three products.
The document discusses how to select an executive search agency to find top managers. It recommends either selecting a single agency or letting multiple agencies compete for the job. Using an exclusive long-term retainer with an international agency that knows the local market and has no candidate restrictions provides the best chance of finding the right manager. The document provides contact information for Stanton Chase, an executive search firm operating in Russia since 2010.
Between 1992 and 2012, China's economy grew at an unprecedented rate, with its GDP increasing by over 10% annually for much of that period. This rapid growth transformed China into the world's second largest economy and led Chinese low-cost manufacturers, like PLM, to play a major role in global supply chains.
This document discusses a single stock keeping unit (SKU) for a low-cost manufacturer that produces three different products using the same production line model (PLM). The manufacturer aims to reduce costs by consolidating production onto one line that can switch between making the three products.
3. 2000 2010
Сети
Дистрибьюторы
Производители
И рынок изменился непоправимо
Сети растут и конкурируют в лучшей цене
маржа из производства уходит в розницу…
А из дистрибуции маржа уже ушла
Кто не ощутил сегодня – столкнется с этим
завтра
Производители, перешагнувшие за $1mlrd,
пока ушли от этих проблем
Как действовать остальным производителям
на этом новом рынке ?
Распределение
маржи
4. С уменьшением маржи дистрибуторы
интегрировались вверх, в розничные сети
Вертикальная
интеграция
Развитие
сетей
Производство
или импорт
своих марок
Вход в новые
продуктовые
категории
Вход на новые
территории
Складские
Логистические
Горизонтальная
интеграция
Услуги
5. И в результате эти сети выросли
Тандер
Юнилэнд
Сладкая Жизнь
Р-Модуль
Паллада Торг
Магнит
Дикси
Спар НН
Монетка
Сберегайка
7. Итак, вернутся ли сети в опт ?
Налаженная работа распределительных центров
Цены лучше чем дистрибьюторы, и дистанция будет расти
Цена «очищена» от ретро-скидок
Прямые контракты с производителями
Можно «купить» дистрибьюцию
Дистрибьюторы Сети
Сети –
дистрибьюторы
8. Ресурсы ограничены —
куда инвестировать?
Стартап опта 2.000 СКЮ соизмерим с
открытием десятков дискаунтеров
Будет ли в опт рентабельнее
розницы?
Пока есть место для развития бренда
сети: кто будет вкладываться в
непрофильный бизнес?
9. Есть и ментальные барьеры
Дадут ли магазины управление
поставками в одни руки ?
Будут ли магазины покупать у
конкурента ?
Как быстро ритейлеры обретут
компетенции активного продавца?
10. Под рисками святая святых —
эффективность бизнес-процессов
Планировать товарные запасы
клиентов сложнее, чем своих
магазинов
Трансшипмент, биржа … решения
нужно принимать на месте, быстро
Возвраты на склад, поштучная отгрузка,
наличка, обиды на закрытие отгрузок …