“how to effectively integrate revenue€¦ · sales marketing finance category planning insights...
TRANSCRIPT
“How to effectively integrate Revenue
Management into the Sales Planning
(and execution) Process”
Steve Davey, Director
Key Messages from this session
1. Revenue Management is more than just Promo ROI.
2. Engage the wider organisation or risk being misaligned and having poor execution.
3. Revenue Management, should be the glue that holds the entire Planning Process together.
4. Need only add x1 more metric to create a compelling story and bring it all together.
A high performing team …
SALES
MARKETING
CATEGORYFINANCE
PLANNING INSIGHTS
REV MGT
What is the Sales Planning Process?
CONFIRMMARKETING
STRATEGY
SET OBJECTIVES
DEVELOP ACTION
PLAN
CUSTOMER PLANNING
& FORECAST
ENGAGECUSTOMERS
EXEC
UTE
It starts with a Strategic Marketing Plan, and focuses on how to bring that plan to execution …
What’s your role in this today?
CONFIRMMARKETING
STRATEGY
SET OBJECTIVES
DEVELOP ACTION
PLAN
CUSTOMER PLANNING
& FORECAST
ENGAGECUSTOMERS
EXEC
UTE
PROMO PLAYBOOK
MARKETING FINANCE REV MGT SALES CATEGORY
The biggest risk of Rev Mgt not being involved is the lack of alignment!
Top Down Marketing &
Financial Plan
Bottom up Sales
Forecast
Ask yourself a different question …- Who owns (or leads) this process ?
DEFINEMARKETING
STRATEGY
SET OBJECTIVES & BUDGETS
DEVELOP ACTION
PLAN
CUSTOMER PLANNING
& FORECAST
ENGAGECUSTOMERS
EXEC
UTE
MARKETING FINANCE REV MGT SALES CATEGORY
What should this step should own …
CONFIRMMARKETING
STRATEGY
SET OBJECTIVES
DEVELOP ACTION
PLAN(TOOLKIT)
CUSTOMER PLANNING
& FORECAST
ENGAGECUSTOMERS
EXEC
UTE
Channel StrategyMarket
Assumptions
Promo Strategy (Feature, Weeks)
Priorities
Targets & Budgets
NPD Assumptions
Summary of Part 1- How do we effectively integrate?
• Revenue Management is more than just price and promotion …
• Need to integrate across all commercial functions
• Own the Sales Planning Process
• Sales will forever be on your side, you’re helping make their job much easier.
Revenue Management Pillars
TRADE TERMS PRICE (Little) MIX /PACK
PROMOTION
All influence Mix !
So are we using the power of ‘mix’ in the EXCEUTION phase?
TOOLKIT STORY KPI
+ +RSV / ShareNet SalesVolumeMargin…
MIX: A simple, powerful idea … you all have it, talk about it (sometimes), but may seldom use it …
What’s the cost per wash from each of these formats ?
18p 20p 21p 23p
Volume Weighted Cost/Wash ?
Numbers are estimates from tesco.com
KPI’s / metrics …- and what behaviours they drive ?
• Volume - units
- weight
• Net Sales
• Market Share
• Trade Spend
• Margin
Traditional KPI’s
• Mix (Cost per Wash?)
New Rev Mgt KPI’s
What if your ‘Toolkit’ were built on the mix principle ?
DEPTH of DEAL ?
WEEKS ON DEAL ?
FEATURE ?
…
PRICING ?
CHANNEL STRATEGY ?
PACK SIZE STRATEGY ?
EDLP ?
It starts to drive different actions and behaviours …
What if the whole ‘Story’ was built on a Mix KPI?
Management Team
Marketing CategoryTrade
MarketingSupply Chain Finance
Demand Planning
Revenue Management
• What would people do differently?• Category: Merchandising / Share of Shelf?
• Marketing: Advertising, NPD, Sampling, PR?
• Trade Marketing: Instore Comms, Display?
• Supply Chain: Power skus, stock holding?
Summary of Part 2- How do we effectively execute?
• Create a compelling story – what role can ‘mix’ play in leading your overall framework?
• Create some flexibility on how the deliver the mix objective.
• Set budgets and targets that align with mix objectives
• Measure and Track against mix objectives, and share across the organisation
