“how to effectively integrate revenue€¦ · sales marketing finance category planning insights...

“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

To explore further

Steve@BaintonConsulting.co.uk

07919 364976