Operations

Outlet Seg. – PicOS by Channel & Customer

Outlet Segmentation - Developing Segmented PicOS by Channel & Customer  

Priority :    0

Capability :    0

Statement

The System has determined PicOS (Including digital shelf B2C & B2B) with brand, pack and price architecture by current and new channel how it will be displayed, merchandised and promoted to maximize the System and customer growth potential by segments.

Score

Low - Basic

Medium - Advanced

High - Expert

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Outlet information clarity leads to execution of the segmented strategy in the market and have been detailed into visual “PicOS".

The System has determined segmented PicOS with brand, pack and price architecture by current and new channel how it will be displayed, merchandised and promoted to maximize the System and customer growth potential.

PicOS (including capability-enabled photo recognition) is in place and supports RGM and RTM foundations - Segmented OBPPC architecture, Promo Strategy, Pricing, Terms & Conditions and Customer Service Systems.

Issues / Implications

Lack of in outlet clarity leads to poor execution of the segmented strategy in the market.

Evidence / Clarification

Segmented OBPPC architecture, Promo Strategy, Pricing, Terms & Conditions and Customer Service Systems have been detailed into Visual “PicOS".

Action It Leads To

Determine the PicOS supporting the segmented OBPPC architecture, promo strategy, pricing, terms & conditions and customer service systems.

KPI / Directions

Indicator: P&L Breakdown by Channel & Customer. Directions: Waterfall P&L Analysis and Channel / Customer P&L (CHAMPS Integrated Framework & System Economics) Tools.

Operations

Outlet Seg. – Customer Opportunities

Outlet Segmentation - Customer Analysis & Growth Opportunities  

Priority :    0

Capability :    0

Statement

Identification of customer growth opportunities based on consumer and shopper needs and market dynamics. On a regular basis, consumption and purchase insights are gathered, tracked and interpreted to ensure relevant and up to date insights to build actionable targeted growth strategies across channels and customers.

Score

Low - Basic

Medium - Advanced

High - Expert

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Insight gathering routine leads to a dynamic segmentation strategy and potential opportunities in the market are captured.

Market-driven business insights are used to translate consumer segments into value-driven customer and channel growth opportunities.

Ongoing data is gathered, tracked and interpreted to ensure relevant and up to date insights exist to build foundations for actionable segmented strategies across channels and customers.

Issues / Implications

Failure to make insight gathering routine will lead to a static segmentation strategy and missed potential opportunities in the market. Need to split Customer and Channel. In mature markets, customers may be able to do their own segmentation and their insights should be considered.

Evidence / Clarification

Market-driven business insights are used to translate consumer segments into value-driven customer growth opportunities. Establishment of ongoing data gathering routines and a unique System platform for consulting.

Action It Leads To

Establishment of ongoing data gathering routines. Channel insights should help to shape plans for the more regional customers and traditional trade accounts.

KPI / Directions

Indicator: Customer Growth Corridors. Directions: Opportunity Map and Channel P&L (CHAMPS RGM Module & System Economics) Tools.

Operations

Assortment Seg. – Planograms Optimization

Assortment Segmentation - Customer Planogram Optimization  

Priority :    0

Capability :    0

Statement

Analyzing System Profitability by SKU - Current gross profit, operating income and shopper loyalty for each SKU is available and analyzed at a brand and package level by channel and customer and combined with a view on potential market changes to support the financial evaluation of assortment, planogram development, evaluation and segmented growth opportunities as a System and online value chains.

Score

Low - Basic

Medium - Advanced

High - Expert

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Profitable portfolio is identified, and assortment / commercial opportunities are considered against financials as well as volume measures. Assortment evaluation tools and measures are created.

Future assortment / portfolio changes impacting brand and package costs and pricing consider retailer concentration, product commoditization, competitor activity, technology advances or macroeconomic conditions, such as devaluation.

Segmented planograms are designed by evaluating gross profit, operating income and shopper loyalty. Each SKU is analyzed at a brand and package level by channel and customer. Market changes scenarios are identified to support the financial evaluation of assortment.

Issues / Implications

To create profitable portfolio, assortment opportunities must be considered against financials as well as volume measures. Analysis should be split into customer and bottler as there is regional variation amongst the SKUs. Profitable portfolio assortment evaluation tools and measures are created and considered in a continuous improvement process to adapt to consumer/customer needs and business results.

Evidence / Clarification

Future assortment / portfolio changes impacting brand and package costs and pricing could be due to retailer concentration, product commoditization, competitor activity, technology advances or macroeconomic conditions, such as devaluation.

Action It Leads To

Creation of the right assortment evaluation tools and measures. Taking into account seasonal purchasing behavior including external factors.

KPI / Directions

Indicator: SKU Pareto Analysis. Directions: Assortment Optimizer Tool.

Operations

Assortment Seg. – SKU Performance

Assortment Segmentation - SKU Performance in Consumer Segments  

Priority :    0

Capability :    0

Statement

Analyzing system performance by SKU in consumer segments and across categories SSD vs STILL - The System understands the differences in purchasing behavior by channel, customer, brand and package to identify the higher purchase and consumption revenue opportunities by key segment and full understanding of online value chains.

Score

Low - Basic

Medium - Advanced

High - Expert

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System identifies consumption occasions and shopper purchasing missions as a key part of identifying potential business growth for existing brands and packages across customers.

Drivers of segmented purchaser behavior are identified as a key part of identifying potential business growth for existing brands and packages across customers, taking account purchaser research by channel to identify opportunities including elasticity modeling for brands and packages

Purchasing behavior by channel, customer, brand and package is in place to identify the higher purchase and consumption revenue opportunities by key segment to inform long-term BP strategy.

Issues / Implications

With purchasers different from consumers on many occasions, understanding the drivers of segmented shopper behavior is a key part of identifying potential business growth for existing brands and packages across customers.

Evidence / Clarification

This analysis will include elasticity work for brands, packages and purchase occasions by channel.

Action It Leads To

Shopper research by channel, brand and package. Consider assortment opportunities and potential partnerships with other manufacturers.

KPI / Directions

Indicator: SKU Pareto Analysis. Directions: Assortment Optimizer Tool.

Operations

Joint Seg. – Business Plan

Joint Segmentation Business Planning & System Collaboration  

Priority :    0

Capability :    0

Statement

Segmentation Plan Commitment and System Collaboration - Define processes for segmentation strategy. Commitment to a strategic mid to long-term plan to capture profitable business growth opportunities and are able to remain focused in the face of short-term volume challenges. Must ensure customer alignment to proposed segmentation strategy.

Score

Low - Basic

Medium - Advanced

High - Expert

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Roles and responsibilities for key stakeholders are established for the short-term. Commitment and ownership on segmentation approach lead to operating priorities in the System.

Strategic pillars are developed jointly, and road mapped for the mid-term. Planning and scheduling segmented price / promo adjustments are in place. The plan is jointly developed with execution targets. Returns for each party are formally reviewed and signed off.

Collaborative process is established among groups to make decisions. Joint involvement on a segmentation planning process and sign off on mid to long-term. Profitable business growth opportunities define execution targets and roles.

Issues / Implications

Defining roles and responsibilities for key stakeholders. Lack of joint commitment and ownership on segmentation approach may lead to different operating priorities in the System. Ongoing communication with continuous touchpoints for review / to connect is ideal.

Evidence / Clarification

Planning and scheduling segmented price / promo adjustments. The plan is jointly developed, formally reviewed and signed off and lays out both the potential revenue and returns for each party.

Action It Leads To

Collaborate among groups to make decisions. Joint involvement and sign off to a long-term segmentation planning process.

KPI / Directions

Indicator: P&L Breakdown by Channel. Directions: Waterfall P&L Analysis and Channel P&L (CHAMPS Integrated Framework & System Economics) Tools.