how to implement red v6

7/28/2019 How to Implement RED v6

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HOW TO IMPLEMENT RED

FOREWORD -------------------------------------------------------------Page 2

SECTION I OVERVIEW OF RETAIL EXECUTION-------Pages 3-7

SECTION II PREREQUISITES TO RED-----------------------Pages 8-10

SECTION III- UNDERSTAND THE RED PROCESS----------Pages 11-28

SECTION IV- IMPLEMENT A RED PILOT MARKET------Pages 29-36

SECTION V ASSESS THE RED PILOT MARKET---------Pages 37-38

SECTION VI IMPLEMENT RED-------------------------------Pages 39-40

SUMMARY-------------------------------------------------------------Pages 41-43

Note: The Customer Portalwebsite is identified throughout this document as a source

of additional information on Retail Execution and the RED process. Customer Portal

is the Customer and Commercial Leadership Website for The Coca-Cola Company.If you do not already have a

User ID and Password for the Customer Portalwebsite,you should acquire both

before beginning your RED journey.

Classified - Internal use 1

CONTENTS


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FOREWORD

Background

RED (Right Execution Daily) was initiated in Buenos Aires, Argentina in the

late 1990s to address a changing and challenging marketplace. New

beverage competitors were entering the market, the non-alcoholic beverage

portfolio was rapidly expanding, the BPPC for the KO business system was

changing frequently and new channels and customers were emerging.

The local management team for TCCC and the bottler had an aligned vision of

creating an enhanced retail execution system that would become a strategic

marketing asset to apply against this challenging marketplace. This retail

execution system would be:

*Focused on retail execution actions linked to business strategies.

*Quick, agile and driven by a mental model of a picture of success for each

point of purchase.

*Guided by a performance management system based on frequent and in

depth assessment of actual retail execution conditions compared to

merchandising standards (Pictures of Success).

RED evolved over the next few years to more than meet the expectations of

the local KO business system. It became apparent that RED was a process

with applicability to any market and new implementations began, first in Latin

America and then on all continents. Today there are RED implementations in

over twenty countries with new markets coming online almost monthly.

Purpose of this Document

The purpose of this document is to provide the concepts, methodologies anddirections for a self guided implementation of the RED process, i.e., How to

Implement RED.



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Classified - Internal use

SECTION I OVERVIEW OF RETAIL EXECUTION

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BASIC RETAIL EXECUTION CONCEPTS

What is Retail Execution?

Retail Execution is often viewed as shelf stocking, secondary displayconstruction and the placement of point of purchase advertising material.

Though partially accurate, this view limits the potential for Retail Execution

to become a true marketing asset for the KO business system. A strategic view

of Retail Execution can be developed through a focus on the key

constituencies that are served by the Retail Execution process. Using this

strategic view, Retail Execution can be defined by the following:

*The subset of capabilities required to create an optimal purchase experience

for consumers/purchasers of TCCC brands

*The linkage that translates strategies (consumer/purchaser and customer) into

actual, tangible marketplace activities.

What are the basic principles of Retail Execution?

There are six basic principles of Retail Execution that apply to all markets, all

customer service structures and all route to market options;

1. Retail Execution always starts with a clear view of the picture of successfor each point of purchase.

2. Retail Execution requires effective ways to influence execution at the point

of purchase regardless of the route to market

3. Retail Execution requires rewards and recognition throughout the value

chain to optimize achievement of the pictures of success.

4. Retail Execution must have measurement /tracking systems and course

correcting mechanisms.

5. Retail Execution management requires sales routines and reports that are

diligently maintained at all organizational levels.

6. Retail Execution must always follow a disciplined process to ensure

consistency.


OVERVIEW OF RETAIL EXECUTION

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THE EVOLUTION OF RETAIL EXECUTION MANAGEMENT

The Traditional Retail Execution Management Process:

The traditional retail execution management process was a static process that

focused on the following four components:

The four components were viewed as related retail execution activities but

most of the times were under the responsibility of associates in different

organizational units and/or different locations. For example, merchandising

standards could be developed by the Channel Marketing team at TCCC, Sales

Execution Routines could be the sole responsibility of Sales Supervisors,

Tracking of Execution could be the responsibility of TCCC Market Research

executed with a bimonthly report from Nielsen and Learning from Analysis

could be an ad hoc activity of TCCC or the bottler.

The traditional Retail Execution process resulted in shortfalls that could

impair progress. Merchandising standards many times were well beyond the

current execution capabilities of the organization. These standards became

more of a wish list than a near term goal. Sales routines many times primarily

focused on calls per day rather than achieving the bundle of merchandising


1.SEGMENTED

MERCHANDISING

STANDARDS

2.SALES EXECUTION

ROUTINES AND

TRAINING

4.LEARNING FROM

ANALYSIS OF RETAIL

EXECUTION RESULTS

3.TRACKING

EXECUTION VERSUS

MERCHANDISING

STANDARDS


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standards in all outlets. Retail Execution Tracking reports from syndicated

research such as Nielsen were not timely or actionable and only addressed a

partial listing of merchandising standards. Only very limited Analysis of

Retail Execution to develop learning was done given the difficulty of

connecting Tracking Reports that are not timely or actionable with results.

Clearly, Retail Execution management needed to evolve from this static

process if Retail Execution was to become a strategic marketing asset for the

Coca-Cola business system.

The RED Retail Execution Management Process

The innovation in the Retail Execution management was the change to a

dynamic process, RED, where the four components were functionally

connected and managed for continuous improvement.

THE PICTURE OF

SUCCESS


3.TRACKING

EXECUTION VERSUS

MERCHANDISING

STANDARDS

3.TRACKING

EXECUTION VERSUS

MERCHANDISING

STANDARDS

4.LEARNING FROM

ANALYSIS OF RETAIL

EXECUTION RESULTS

2.SALES EXECUTION

ROUTINES AND

TRAINING

3.TRACKING

EXECUTION VERSUS

MERCHANDISING

STANDARDS


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The dynamic RED process made the output of each component the input for

the following component. This functional connection of the four components

is the critical evolutionary step toward a continuous improvement Retail

Execution management process. The RED process elevated the importance of

Merchandising Standards from a wish list orientation to the essential

foundation of Retail Execution. This mental model change is so important

that the terminology was changed from Merchandising Standards to the

Picture of Success. Lastly, underpinning the evolution to the RED process are

the reporting and communications routines that continually link the four Retail

Execution components.

The RED Retail Execution management process resulted in significantimprovements to each component. The bundle of merchandising standards

now termed The Picture of Success for each outlet were maintained to be

demanding but achievable as the execution capabilities of the sales

organization improved. Sales routines became primarily focused on

addressing gaps versus merchandising standards for each customer. The Retail

Execution Tracking System became a credible current assessment of actual

retail execution conditions contrasted to merchandising standards. Lastly,

Retail Execution Analysis began identifying high value execution

components, guiding continuous improvement with The Pictures of Success

and began identifying retail executions deserving recognition and reward.

The key learning from the RED process are threefold. First, RED is primarily

a tool to help salesmen succeed, not to catch them failing; Second, RED is

driven from a fundamental belief that Retail Execution begins and ends with

the Picture of Success in each outlet. This is where we engage our two critical

constituencies; the consumer/purchaser and the customer. Third, continuous

improvement, by definition, is an on going effort. Improvements in Retail

Execution therefore require a commitment to maintain the process over time.

RED is not a one time project.

A detailed explanation of the RED is in Section III of this document

Understand the RED Process.



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SECTION II PREREQUISITES TO RED

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Outlet Level Data

The first prerequisite to RED is Outlet Level Data provided by the

transactional data base. Without Outlet Level Data the basic RED processes

such as segmentation and Analysis, Learning and Applications are impossible.Markets without Outlet Level Data should solve this issue before proceeding

to implement RED.

Market Segmentation

Completing or updating the Market Segmentation plan is the second

prerequisite before beginning RED.

Market Segmentation is the subdivision of the customer universe into clustersthat allow us to design Pictures of Success that optimize our opportunities for

transactions and revenue at each point of purchase. Market Segmentation

began with the division of the market into Trade Channels where the only

segmentation criteria was retailing format. Market Segmentation has evolved

today to include segmentation criteria based on some combination of retailing

profiles, shopper behavior profiles, customer importance and level of

customer collaboration.

The most important consideration during completion or updating MarketSegmentation prior to RED is to avoid adding complexities that are beyond

the current capabilities of the sales organization. Most RED implementations

start with 4 to 5 Market Segments and very basic consumer segmentation such

as SEL (Socio-Economic Levels) and purchase occasions.

Long term, the scope and depth of Market Segmentation can advance as the

capabilities of the sales organization improve. A major input for long term

advancement of Market Segmentation is the understanding of shopper profiles

and behaviors provided by Shopper Marketing.

For more information on Market Segmentation go to the CUSTOMER PORTAL website to

Segmented Execution to RED Immersion Training Materials to Training 130, or just click onthe link below:

http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_076273?

ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273


PREREQUISITES TO RED

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The OBPPC Plan

Your Occasion Brand Package Pricing Channel plan should also be updated

before beginning the RED process. The first step is to format this plan around

the Market Segmentation Plan that has just been completed or updated. Next,

verify that the OBPPC plan accurately reflects the current SKUs in your

portfolio and the pricing that should be in the market for each market segment.

As in Market Segmentation, it is important to avoid adding OBPPC

complexities prior to implementing RED. Most RED implementations begin

with a focus on 3 to 5 key SKUs in each Market Segment.

The Route to Market (RTM) System

Any changes contemplated for the RTM System should be completed prior to

implementation of the RED process. No changes to the RTM system should

take place during the implementation of RED.


PREREQUISITES TO RED

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SECTION III UNDERSTAND THE RED PROCES

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THE FOUR COMPONENTS OF THE RED PROCESS

This document will now move to an explanation of the components andmechanisms of the RED process. Before beginning with the first component,

lets take a moment to review the operating characteristics of the RED

process. RED is a continual improvement process. This means we balance

Retail Execution objectives that become more challenging over time with

Retail Execution capabilities that are improving over time. We target these

Retail Execution objectives (The Pictures of Success) to be 80% attainable by

current Retail Execution capabilities at any point in time. Maintaining this

balance between objectives and capabilities requires that we always know the

gaps in the Pictures of Success and have sales routines, reports and coaching

available to help the salesman close the gaps. Knowledge of the gaps versusthe Pictures of Success is provided by a Retail Execution Tracking System

that provides credible, timely and actionable information. Lastly, the key

associate in the RED process is the salesman. The RED process is designed to

help him succeed through training, coaching, support materials, recognition

and incentives.

1. THE PICTURE OF SUCCESS

The Picture of Success is the nucleus of the RED process. The Picture of

Success is a view of all the key elements at the point of purchase which

influence a shopper to buy a KO brand. The Picture of Success translates

brand strategies, OBPPC strategies, occasion based strategies, merchandising

strategies and customer strategies into a visual image of our retail execution

for each market segment. The Picture of Success is where we engage the two

constituencies who are critical to our business; the purchaser/consumer of our

brands and the retailer.


UNDERSTAND THE RED PROCESS

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This document will address three questions that must be answered for

effective development of Pictures of Success (POS):

1. What are the major elements that should be in each POS?

2. What inputs help define these POS elements?

3. What is expected evolution of POS in a market?

The major elements of a Picture of Success

The major elements of the Picture of Success for each market segment are

relatively similar in the markets that have already implemented RED. There

are only minor variances in measures and terminology. The elements include:

*The brand & package SKU assortment to be available as detailed in yourOBPPC Plan or Annual Customer Agreement.

*The retail positioning of the assortment Commonly call adjacencies

referring to which KO SKU, competitive SKU or other non-beverage product

each should adjoin. Guidelines for planning adjacencies include the following

examples; if the KO brand is the category leader, do not position it next to

other category participants; If the KO brand is not the category leader,

position it next to the leader.

*A measure of retail inventory SOVI, share of retail inventory is the most

widely used measure. This measure is the total number of primary package

fronts for KO brands divided by the total number of primary package fronts

for the category.

*Points of Shopper Connection The locations in the shopper traffic patterns

where we target ambient or cold availability of our brands. Points of

Connection can be freestanding secondary displays, merchandising racks,

coolers or vending equipment. The targeted location of each Point of

Connection is specified in The Picture of Success usually with an overview

map of a typical market segment outlet. When establishing your goal for total

Points of Connection, at minimum you should have a higher share of

commercial beverage Points of Connection than you have share of market.

*The retail price for our SKU assortment. This pricing usually comes from

the OBPPC Plan which should have a high-low pricing range for each SKU.

This pricing range is calculated using our net wholesale pricing and the

margin or markup commonly used by the segment/customer.



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*Activation (1) The shopper messaging we target to the market segment

and to each Point of Connection. (Call to action, brand building or

promotional messaging with the targeted location for each message) and (2)

The shopper engagement actions and activities we execute. (What we do to

inspire the shopper about the category and our brands, how we help the

shopper navigate the store and the information we provide about the category

and our brands)

The above six elements of the Pictures of Success must reflect all

corresponding Commercial Conditions elements that are part of Annual

Customer Agreements or Annual Key Account plans. It is possible that

Commercial Condition elements from these agreements are more

comprehensive than the Picture of Success elements for other customers in the

same Market Segment.

Contrasting the Pictures of Success elements across Market Segments:

An initial reflection on the above Picture of Success elements might suggest

that all elements cannot apply to all market segments. For example, this

initial reflection might suggest these elements apply to supermarkets but not

to an immediate consumption kiosk. On further reflection, it should become

apparent that all elements apply to all Market Segments. Back to the example

of a supermarket and an IC kiosk; even if the kiosk is exclusive (100% SOVI)

and has only a single door cooler plus a hanging merchandising rack for a take

home SKU (2 Points of Connection), it is important to measure and maintain

the exclusivity and Points of Connection even for a small outlet.

The details and complexities of the Pictures of Success will vary across

Market Segments but all elements of the Pictures of Success should be

developed for all Market Segments.

Note: Go to the CUSTOMER PORTAL website to Segmented Execution to RED Immersion

Training file 040 for more information, or just click on the link below:

http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_07

6273?




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Inputs that help define Picture of Success elements:


PICTURE OF SUCCESS INPUT SOURCEELEMENTS

ASSORTMENT *OBPPC PLAN

*CUSTOMER AGREEMENTS

ADJACENCIES *BRAND MERCHANDISING

STRATEGIES

*RETAIL PLANOGRAMS

SOVI *SHARE OF MARKET RSCH.

*TRANSACTIONAL DATA BASE

POINTS OF CONNECTION *OCCASION BASED STRATEGY

*RESEARCH (M.O.T.O.R.)

*MERCH. EQUIP. PLAN

RETAIL PRICE RANGE *OBPPC PLAN

ACTIVATION *BRAND PLANS

*P.O.P. PRINCIPLES

*RESEARCH (M.O.T.O.R.)

*CUSTOMER CATEGORY

STRATEGIES


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NOTE: Go to CUSTOMER PORTAL website to Shopper Merchandising & Marketing to

Overview of Shopper Research Tools to Key Pillars of Shopper Knowledge, Overviewof SM Insights and Shopper Knowledge-Three tools for more information on inputs, or

just click on the link below:

http://apps.ko.com/customerportal/CommercialLeadership/PlanningforMarketSuccess/Ho

wTo/index.htm

The expected evolution of The Picture of Success in a market:

When planning the evolution of The Picture of Success in a market

implementing RED, the key consideration is to remember that RED is a

continuous improvement process. A continuous improvement process only

works when the capabilities, capacities and systems that comprise the process

are kept in balance as the process improves. The RED team that rolled the

process out in much of Latin America has a favorite saying related to this

topic. Start small, think big, and grow fast.

Most markets that have implemented RED started with only the very basics of

the Picture of Success (3-5 Key SKUs, Pricing, Overall SOVI, and Points of

Connection with emphasis on equipment) for 4 to 5 market segments. This

topic will be further addressed during Section IV Getting Started with REDthrough Implementation of a Pilot Market.

The evolution of The Picture of Success over time generally moves first to

more market segments and more outlets, then to expanded Picture of Success

component measurements.

Note: Go to CUSTOMER PORTAL website and SEARCH Picture of

Success, open RED Immersion Training file 040 and review slide 8 for more

information on planning the evolution of The Picture of Success, or just click

on the link below:.

http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_076273?




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2. SALES EXECUTION

Managing Sales Execution from a RED Perspective:

All sales organizations have sales routines and reports that guide the execution

of their duties and responsibilities in the market. The question for

management is threefold;

1. Are these routines and reports focused on the priority actions that will

produce the planned value and volume growth for our brands?

2. Are these routines and reports executed with the discipline required of aworld class sales team?

3. Are the routines and reports supported with feedback, follow-up, coaching,

training, recognition and rewards required for continuous improvement?

The goal of the RED process is have management be able to answer yes to all

three questions.

The overarching objective of the RED process is execution of The Picture of

Success in all outlets. This section of the RED process, Sales Execution, willconcentrate on how a sales organization achieves the Picture of Success

through disciplined management of routines and reports. Clearly, there are

other sales routines and reports beyond those that relate directly to the Picture

of Success. These other routines and reports will vary based on the Customer

Service System structure and the market and will not be addressed in this

document.

The RED process is based on two strongly held beliefs;

1. The continuous priority focus of a sales organization on The Picture ofSuccess is essential to maximize the value and volume growth of KO brands.

2. The RED process is applicable to any sales organization regardless of

Customer Service System, RTM system or use of third parties.



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The Retail Execution Annual Plan:

The first input required for defining Sales Routines and Reports is The Retail

Execution Annual Plan. This plan should detail the annual objectives,

strategies and planned actions for Retail Execution. This plan should be

presented to all sales management during Business Plan preparation so they

can incorporate the RE plan into their plans for the next years sales routines,

reports, training, feedback, coaching, recognition and rewards.

The Retail Execution Annual Plan should include:

Channel Plans: (Example) On Premise: Channel Role-Main source ofsystem profit and consumption frequency driver; Channel Goal-Increase

channel share of value for KO brands from 45% to 50%. Channel key

metrics-Increase cold SOVI +20% and GP +12%. Channel Action Plan-

Implement a channel emphasis during April & May to launch new 600 ml

PET, place 1500 new open front coolers and 500 single door GDM to be

placed as second cooler.

Consumer Promotion Plans (Example) Execute World Cup Promotion

during June, July & August. Kick off sales meeting scheduled for May 1. Sell

in kits to be distributed week of May 4. Custom POP materials to be available

for Hypers & Supers, Mom & Pops, and on premise channels.

Brand Marketing Calendars (Example) Brand introduction for new energy

drink in 250 & 330 ml cans scheduled for February. Priority channels are bars,

nightclubs, hypers & supers. Brand emphasis periods for Zeros scheduled for

September, Water for October and for Coca-Cola in December.

The Annual Retail Execution Plan should be divided into Quarterly Calendarsfor presentation to all associates in the sales department at the beginning of

each quarter. Quarterly presentations allow for plan adjustments that are

inevitable, maintain some confidentiality of the annual plan and keep the

amount of information being communicated to the salesman digestible.



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Translating the Annual Retail Execution Plan & Pictures of Success into

Sales Routines and Reports:

Sales Routines and Reports guide the disciplined actions that turn plans into

results. Following is an example of Sales Routines and Reports related to

Retail Execution. (Note that this example excludes routines and reports such

as Route P&Ls, Customer Returns, Overtime Reports, etc)

ROUTINE ORGANIZATIONAL

UNIT

TIMING ASSOCIATED

REPORTS

QTR Retail Execution

Plan Presentation

All Sales Associates Quarterly None

Review Prior to QTR

Retail Execution

Results

All Sales Management Quarterly QTR R.E. Plan

Results by Sales

Center, Sales Group,

Sales Team, Sales

Route

Monthly Validation of

The Picture of

Success Meeting

Sales Center Mgr,

Sales Mgr, Sales

Supervisor Mkt Mgr.

Monthly Monthly R.E.

Scorecard, Monthly

Picture of Success,Analysis Reports

Sales Route R.E.,

Priorities Planning,

Meeting

Sales Supervisor and

Salesman

Monthly Picture of Success

non-conformity

Report; QTR Sales

Route R.E., Plan

Results Reports

Best Practice Training

Meeting


Salesman

Weekly Best Practice

Documents

Customer R.E.Priorities Meeting

Sales Supervisor andSalesman

Weekly Monthly Sales RouteR.E.Priorites

Morning Sales

Meeting


Salesman

Daily Daily Things to Do

List



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Coaching; the most important RED Sales Routine

The most important RED Sales Routine is the coaching provided from the

Sales Supervisor to the Salesman. Coaching sessions are where the supervisor

and salesman identify gaps in Retail Execution performance and, more

importantly, find solutions that will help the salesman close the gap.

Coaching can take place in the Sales Center or on the route. Coaching should

be a positive motivation and performance enhancer. Coaching sessions

should generally address only one R.E. gap. Coaching requires specific

training sessions for supervisors. Coaching is the Sales Supervisors most

important responsibility.

Replace routines and reports; dont just add routines and reports

The RED process will always identify a number of new Sales Routines and

Reports that are required for a successful RED implementation. It is as

important to identify and eliminate the Sales Routines and Reports that are no

longer needed. If no one is using a Sales Report, eliminate the report and the

routines supporting the report.

Note: For more information Sales Execution Routines, Capabilities and

Coaching go to the CUSTOMER PORTAL website to Segmented Execution to

RED Immersion Training Materials to Training 120, or just click on the link

below:


6273?




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Execution Based Incentives

Execution based incentives are generally classified in one of the three

following approaches:

*Retail Execution Recognition programs

*Retail Execution Reward programs

*Variable Compensation systems

Retail Execution Recognition programs recognize well performing individuals

or teams in Sales Meetings, Company Publications or on Sales Room Bulletin

Boards. Retail Execution Rewards programs add a gift or bonus to the

recognition. The only caution is to always tie recognition and rewards toimprovement in an individuals or teams performance versus measurable

objectives.

Variable Compensation Systems base some part of the Salesmans

compensation on his Retail Execution performance. Usually his

compensation in this system is part fixed (Hourly, Daily or Monthly salary)

combined with a part that is tied to Retail Execution performance. Most

Variable Compensation Systems start with a high percentage allocated to

fixed compensation and move over time to a heavier weight of variable

compensation. Variable Compensation Systems require well functioning

Retail Execution standards (Pictures of Success) and a credible,

comprehensive and timely Retail Execution Tracking System.

Even though there are successful RED implementations that do not use

Execution Based Incentives, most implementations do employ recognition,

rewards and some type of variable compensation system.

Note: For more information on Execution Based Incentives go to the

CUSTOMER PORTAL website to Segmented Execution to RED ImmersionTraining Materials to Training 110, or just click on the link below:


6273?ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273



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3. RETAIL EXECUTION TRACKING

The rationale for a Retail Execution Tracking System is the old business

management adage You cant manage what you dont measure. There

cannot be a RED process without a comprehensive, credible and timely Retail

Execution Tracking System.

What should the Retail Execution Tracking System measure? The Retail

Execution Tracking System should be singularly focused on measuring

compliance with the Picture of Success elements that have been established

for each market segment. The tracking system should always avoid inclusionof items that do not have standards or items that cannot be addressed with

corrective actions.

Cost of the Retail Execution Tracking System is a consideration in all RED

implementations. One means of keeping the cost under control is to avoid

measurement creep. The RED Administrative manager should control this

creep by keeping only the Picture of Success elements in the survey.

How should the survey sample and frequency be determined? At

minimum, the sample should be comprised of a statistically valid number ofoutlets from each market segment for the survey cycle. The survey cycle is

generally viewed as one month. The survey cycle should never exceed the

correction cycle. (The time it takes for the survey to be completed and

processed, a non-compliance report completed and forwarded to supervisor &

salesman, corrective retail execution action to be taken, and the salesman to

report action and results to his supervisor.) The survey sample should include

a minimum number (6 to 10) of surveyed outlets per salesman during the

monthly cycle. The Retail Execution Tracking System should maintain a

significant balance of same Outlets month to month to optimize results fromRED.

Most RED implementations more heavily sample the market segments that

deliver high value and volume from individual outlets and increase the

frequency of surveys for these outlets. Following is an example of survey

sample and frequency:



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Example of Setting Sample Size and Frequency for a Market

Who should conduct the Tracking Surveys? The options are either to use

associates who are part of the bottlers organization or to use a third party to

complete the surveys. Depending on labor costs in the market, either option

can be the most cost effective. There are advantages and disadvantages to

each option. Keeping the Tracking System in house can Customer Portal

implementation, make quality control easier and allow surveyors to have a

career path that leads to entry level sales positions. The disadvantages are

higher administrative work loads and the potential for salesman-surveyor

collusion. Using third parties for the surveys has the advantages of less

administrative work for the bottler and giving more flexibility in hiring and

firing surveyors. The disadvantage of third party usage is a higher potential

for loss of confidence and tracking credibility.

Should the surveys be collected manually or electronically? You do needhandhelds to run a Retail Execution Tracking System. A manual system can

be managed, particularly in the early phases of implementation. Electronic

survey data entry will expedite survey data processing and reduce processing

errors. Additionally, as the size of the survey increases, it becomes more and

more impractical to run a manual survey process.


Customer Classification % of Volume % of Stores Sample & Frequency

Diamond 54% 3% 100% in Sample

100% Surveyed Monthly

Gold 19% 10% 100% in Sample

33% Surveyed Monthly

Silver 24% 46% Sampled and Surveyed

to a 95% Confidence

level for each monthly

survey cycle.

Bronze 3% 41%


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There has been success with a variety of handhelds in RED implementation

markets. (PALM, PPC, other PDA). There is also proprietary software

developed by TCCC for processing. Contact your local TCCC IT department

for support with your RED implementation.

What training should be considered for a Retail Execution Tracking

System? It is very important that surveyors, salesmen and sales supervisors

be trained together prior to implementing the Retail Execution Tracking

System. The typical training program is a one day session followed by trial

surveys being executed by surveyors, salesmen and supervisors. The Retail

Execution Tracking System must have consistency and credibility before RED

is implemented. There are Training Program Templates and example

Training Programs on the CUSTOMER PORTAL website. The actual

training program you use must be locally developed to include your Pictures

of Success, the look of your market and the terminologies of your market.

How much will a Retail Execution Tracking System Cost? The major cost

contributor to the Tracking System is labor. You can estimate the cost of your

Retail Execution Tracking System using The Survey Team Cost Simulator

which is available on the CUSTOMER PORTAL website. This simulator will

give you an estimate of the cost per survey for your proposed system. Using

this cost per survey, your planned survey sample and frequency will allow you

project the cost of your Retail Execution Tracking System per survey cycle.

The cost of the Retail Execution Tracking System will be a significant

expense in most markets but the tracking system is an absolutely critical

component of all RED implementations. Prior RED implementations have

proven that the improved NSR results have more than offset the cost of the

Retail Execution Tracking System.

Note: For more information on Retail Execution Tracking Systems go to the CUSTOMER

PORTAL website to Segmented Execution to Immersion Training Materials to Training050 and Training 100, or just click on the links below:


6273?


RED IT release information can be found by going to CUSTOMER PORTAL to Segmented

Execution to Releases, or by clicking on the link below:

http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/HowTo/Right

ExecutionDailyRED/T_076181



24
http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_076273?ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_076273?ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_076273?ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/HowTo/RightExecutionDailyRED/T_076181http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/HowTo/RightExecutionDailyRED/T_076181http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_076273?ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_076273?ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_076273?ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/HowTo/RightExecutionDailyRED/T_076181http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/HowTo/RightExecutionDailyRED/T_076181


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The Evolution of a Retail Execution Tracking System

Retail Execution Tracking Systems evolve to different audit structures and

different survey processes as RED goes through continuous improvement

cycles. The initial survey process begins with a focus only on 4 to 6 Market

Segments and 3 to 5 key SKUs. During this phase, surveying is done by

Sales Supervisors, Salesmen and other Sales and Marketing associates. This

builds consistency of survey results and underpins the credibility of the

tracking system.

It becomes necessary to add surveyors to the tracking system as the number of

required surveys per survey cycle expands and the Picture of Success

measurements expand. These additional surveyors can be third parties or

additional internal RED staffing. The decision to go third party or remain in

house is based on the advantages and disadvantages covered on page 23.

Even after adding additional surveyors, it is important to always keep Sales

Supervisors, Salesmen and other Sales and Marketing associates involved in

the survey process.

The actual audit structure can also change based on the opportunities available

within a Market Segment or the competitive pressure on a Market Segment.

In either case, the decision can be taken to increase the percentage of the

Market Segment that is surveyed during each survey cycle.


NDERSTAND THE RED PROCESS

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4. ANALYSIS, LEARNING & APPLICATIONS

A continuous improvement process requires a functional component dedicated

to analysis of the process performance and identification of opportunities forprocess improvements. This Analysis, Learning and Applications function is

particularly important in the RED process which is driven by an extremely

large database generated by the Retail Execution Tracking System. The major

outputs of the function are:

*Develop non-conformity, managerial and ad hoc Retail Execution Reports.

*Recommend the timing and component changes for updates to Pictures of

Success.

*Identify retail execution performance deserving of recognition and rewards

*Identify retail execution opportunities for following month focus*Complete correlation analysis of retail execution activity to NSR, volume

and profitability results.

Retail Execution Reports: The Analysis, Learning and Applications function

has a primary responsibility to develop and forward reports generated from

the database created by the Retail Execution Tracking System. The Non-

conformity Reportis listing of all out of standard findings with the Picture of

Success detailed by customer and summarized by Sales Supervisor. The day

of the actual survey is indicated by each customer. Turnaround time from thesurvey to report should be as fast as possible to enhance corrective actions.

Managerial Reports include a variety of reports on monthly and YTD

performance and progress with retail execution. These reports are generally

issued monthly and are summarized by Market Segment, Picture of Success

component, Sales Center, Sales Supervisor and geography. Ad hoc Reports

can be produced for almost any retail execution activity. Examples of Ad hoc

Reports are OOS Reports, Coverage Reports for new package introductions,

etc.



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Picture of Success Updates: A major responsibility of the Analysis,

Learning and Applications function is to make recommendations for changes

to the Pictures of Success. These changes are driven by compliance levels

identified through the Retail Execution Tracking System. For instance, when

compliance with the Points of Connection standard for supermarkets which is

8 POCs reaches 80%, a recommendation could be made to management to

increase the Point of Connection standard from 8 to 9 POCs. A general rule

for making changes to the Picture of Success is the 80%-20% rule. When

compliance levels with a Picture of Success component for a Market Segment

are above 80%, it is time to consider increasing the standard. When

compliance levels for a component continuously remain under 20%, it may be

time to reduce the difficulty level of the standard.

Identification of Retail Execution Performance Deserving Recognition

and Reward: Recognition and reward for outstanding Retail Executionperformance is an important driver of the RED process. The Analysis,

Learning and Applications function should establish analytical routines that

trigger identification of the salesman or sales teams when pre-established

recognition and reward criteria are achieved. For operations with variable

compensation systems where part of the salesmans compensation is based on

retail execution performance, the Analysis, Learning and Applications

function must set up analysis and reporting routines to supply input for this

very important activity.

Identify Retail Execution Opportunities for Next Months Focus: The

Analysis, Learning and Applications function is responsible for a monthly

presentation to the Sales Management team. The agenda for this monthly

meeting includes a review of prior month Retail Execution performance,

recommendations for changes to the Pictures of Success and

recommendations for specific areas of focus on Retail Execution activity

during the next month. The recommendations are typically market wide

opportunities and are supported with the prior month performance reports and

ad hoc reports.



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Perform Correlation Analysis of Retail Execution Activity to Value,

Volume & Profitability. A very valuable output from the Analysis, Learning

and Applications function is identifying the results attached to retail execution

activities. For example, the identification that a second cooler placed adjacent

to the take out food counter in a supermarket produces the best NSR and

profitability growth of any second cooler location is very important input to

salesmen. The learning from existing RED implementations is that

correlation analysis usually starts with simple analysis but progresses to very

complex analysis as the capabilities of the analysis team and the sales team

improve.

Organizational Implications of Analysis, Learning and Applications:

Most RED implementations have quickly encountered capacity and capability

issues for the Analysis, Learning and Applications function. Most bottlers,prior to implementing RED, have only minimal capabilities and capacity in

this functional area. This is because prior to RED they have almost no Retail

Execution Tracking data to analyze. Success with the RED process will be

limited if the capabilities and capacity issues related to the Analysis, Learning

and Applications function are not addressed. Start small, think big, grow fast!

Note: For more information on Analysis, Learning and Applications including

examples of Retail Execution Reports go to the CUSTOMER PORTAL website

to Segmented Execution to Immersion Training Materials to Training 080, or

just click on the link below:


6273?ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273



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SECTION IV IMPLEMENT A RED PILOT MARKET

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KEY SUCCESS FACTORS FOR A RED PILOT MARKET.

Senior Bottler Management Buy-in and Commitment to RED: Prior to

any RED process implementation it is absolutely essential to have full buy-inand commitment to the RED process by Senior Bottler Management. The

titles vary from market to market but include CEO, COO, CFO, General

Manager, Managing Director, President, Commercial Director, VP of Sales,

and VP of Marketing. Senior Management must be thoroughly briefed on the

RED process, understand the implications of RED to the business and commit

to the resources and top down support required to have a successful

implementation of the RED process.

Alignment of TCCC and the Bottler on RED: TCCC and the bottler must

be in full alignment on the RED process prior to implementation. Both partiesmust fully understand the RED process, agree on the implementation plan and

agree on the resource commitment required of each party.

Meaningful and Manageable Pilot Market Size and Scope: The purpose of

the RED Pilot Market is to test drive the process in real local market

conditions. The test drive should be of a large enough size and scope to

give a thorough assessment of all process, systems and procedures but small

enough to make implementation course corrections possible. The test drive

should also provide a representative assessment of value and volume resultsfrom the RED process.

Guide the RED Pilot Market implementation with an Effective Project

Management Team: Implementation of the RED Pilot Market cannot be

well managed by the existing sales management team. They usually already

have full workloads and simply dont have the time to guide the process,

problem solve and make course corrections. A Pilot Market Project

Management team is required. The team should have an experience leader

who believes in the RED process and subject matter experts for the various

systems and procedures of the RED process.


I MPLEMENT A RED PILOTMARKET

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IMPLEMENTING THE RED PILOT MARKET-STEP BY

STEP

Step 1- Form the RED Pilot Market Project Management team. Select ateam leader who is a high potential mid-level manager in the sales department.

Insure that the team leader can devote at least 70% of his/her time to Pilot

Market Project Management. Send him/her to a market with a fully

implemented RED process for an in depth look at all the RED systems and

procedures. Next send him/her to RED immersion training. Charge the team

leader with identifying the subject matter expertise needed on the team. Form

an Executive Steering Committee for the RED Pilot Market made up of the

VP of Sales, the VP of Marketing and the VP of HR. The Executive Steering

Committee is responsible for project guidance and oversight. Their firstresponsibility is to work with the PM Project Leader to access all Project

Team members.

Step 2- Brief the Sales and Marketing Management Team on the RED

Pilot Market Project. Hold a briefing meeting on the RED Pilot Market

Project with all members of management in the Sales and Marketing

departments. Have the Bottler CEO/GM open the briefing with overview

comments explaining the rationale for his/her commitment to the project

followed by the VP of Sales who explains how the Pilot Market will be

selected and managed, followed by the Project Leader who will give abriefing on the RED process and introduce Project Team members.

Step 3-Review coding of outlets with the current Market Segmentation

plan. Insure the outlets in the transactional data base are coded to the

appropriate Market Segment. This can be accomplished in most markets

through a quality check of a randomly selected sample of outlets from each

Market Segment. The procedures used to code new outlets and to change

coding should also be reviewed. If there is a reasonable doubt about the

overall quality of Market Segment coding, a complete coding check/updatewill need to be undertaken. Avoid adding any Market Segmentation

complexity before the pilot market.


IMPLEMENT A RED PILOT MARKET

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Step 4-Select the Market Segments for the RED Pilot Market. Select the

Market Segments for the RED Pilot Market that will create a representative

cross section of the total market while being consistent with pilot scope and

size considerations. Most RED Pilot Markets limit the number of Market

Segments to a maximum of 4 or 5. Most RED Pilots select Segments that are

predominately Immediate Consumption and Segments that are predominately

for Future Consumption.

Step 5 Select the Outlets for the RED Pilot Market. The goal for outlet

selection is to have enough outlets for each Market Segment in the RED Pilot

to produce a reliable assessment of the RED process. When developing the

initial outlet count, factor in the probability of having to remove some of the

outlets from the RED Pilot for reasons such as store closings or storemanagement changes. Many RED Pilot markets have been structured around

two or three Sales Teams (10 to 30 Salesmen). Concentrating the RED Pilot

Market into a few Sales Teams improves project focus. If possible, have RED

Pilot Market outlets assigned to all Salesmen on the Sales Teams participating

in the RED Pilot.

After identifying the RED Pilot Market outlets, select a representative group

of non-RED control outlets for each Market Segment in the RED Pilot. The

non-RED control outlets will provide a base to compare NSR, volume and

profitability versus RED outlets.

Step 6 Review and Update the Picture of Success for each Pilot Market

Segment. Establish, update or check off on a Market Segment standard for

each element of your Pictures of Success that you plan to use in the RED

Pilot. (Assortment, Adjacencies, SOVI, Points of Connection, Retail Pricing,

Activation). Avoid including excessive complexity or creating standards that

are far beyond the execution capabilities of the current organization.

Remember that all Picture of Success standards must be measurable and

actionable.

The review and updating of Pictures of Success should be a group effort lead

by The RED Project Team Leader with representatives from the RED Project

Team, Channel Marketing and Sales Management, including the Sales

Supervisors and Salesmen from the RED Pilot.



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Step 7 Complete a preliminary assessment of current retail execution

contrasted to the updated Pictures of Success. Using the same associates

who updated the Pictures of Success, survey a representative number of

outlets in each Pilot Market Segment. Before starting the surveying, have a

meeting with all surveyors to review the standards and detail how to measure

all standards. Use an existing automated Retail Execution Tracking System if

it can accommodate all elements of the Pictures of Success or conduct the

assessment manually.

Ask all surveyors to track the time it takes to complete each survey. This will

be valuable input when you structure the Retail Execution Tracking System

for the RED Pilot.

Step 8 Review the results of the preliminary assessment of current retailexecution and adjust the Pictures of Success where necessary. The

objective is to have Pictures of Success that are demanding but achievable.

This can be done by first identifying all Picture of Success elements with non-

compliance rates that exceed 80%. Decide if the non-compliance is driven by

lack of capability, lack of knowledge of the standard or lack of priority.

Adjust all high non-compliance standards that are driven by lack of capability

to achievable levels.

Step 9 Plan the Sales roles, routines and reports that will underpin theRED Pilot Market. Start this step as if you are beginning a new year.

Assemble a Retail Execution Plan for the first three months of the RED Pilot.

Add the Picture of Success standards for the pilot Market Segments and begin

developing communication materials and training programs for the Pilot

Market salesmen and sales supervisors.

The three month Retail Execution Plan and the Pictures of Success are goals

that drive all RED process plans for Sales roles, routines and reports. With

these goals in mind, develop the process framework (timing, participants,

activity focus) for a series of routines such as the following:*Three month R. E. Plan Presentation Meeting

*Picture of Success Training Meeting

*Sales Route Monthly Planning Meeting (Input reports-Qtr R. E. Plan

and Route Picture of Success Non-compliance report; Output report-

Monthly Sales Route Priorities Report

*Monthly Best Practice Training Meeting



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*Weekly Customer Priorities Meeting (Input-Monthly Sales Route Priorities

Report; Output- Listing of Weekly Customer Priorities

*Daily Sales Meeting (Input-Listing of Weekly Customer Priorities; Output-

Daily to Do Listing)

Step 10- Complete a Gap Analysis between current sales routines and

reports and the planned RED sales routines and reports then develop an

action plan to close the gaps. The objective of this step is to identify the

capability, capacity and work process issues that will be deterrents to well

functioning RED sales routines and reports. Most sales organizations have

differences between their existing routines and reports and RED routines and

reports. Some of these differences create huge gaps that can only be resolved

with significant infrastructure change. For example, if a salesman is making

50 to 60 customer calls per day to do order generation, he probably will not

succeed in a RED process environment. He simply does not have sufficientcustomer call time. If a sales supervisor spends most of his time as vacation

relief for salesmen and on administrative duties such as merchandising asset

management, he will probably not succeed in a RED process environment.

These two examples are capacity issues that create huge gaps. The magnitude

of these gaps will require the Project Team to go to their Executive Steering

Committee for guidance and assistance. If a supervisor has poor coaching

skills, this is a capability gap that can be immediately addressed with training.

If there is insufficient reporting infrastructure, this gap can be addressed when

the Analysis, Learning and Applications function is planned. Gap analysis

and corrective action planning simply allows the project team to solve sales

routine and report problems before going live with the RED Pilot Market,

particularly those problems that will cripple the RED process.

Step 11 Plan the Retail Execution Tracking System for the RED Pilot

Market. The project team should begin with the RED Pilot outlet count then

determine the survey cycle, survey sample size per segment and the desired

survey frequency. Once the survey metrics are completed the number of

surveys required per day becomes the starting point for structuring the survey

team. In most RED Pilot Markets the survey process is kept in house. Thesurveyor pool can include the Pilot Market Project Team, all Sales and

Marketing middle management and Sales Supervisors. The only caveats are:

(1) All surveyors must be thoroughly trained and (2) Surveying is a priority

commitment. You must complete your assigned weekly surveys on time. A

surveyor cannot delegate his surveys to someone else. To build credibility for

the Retail Execution Tracking System and to include a quality assurance



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check, consider having Salesmen complete one or two surveys per day and

also have regular survey team members survey the same outlets on the same

days. This keeps the salesmen comfortable with the process and insures that

the tracking system is working properly. Finally, during this step you will

need to identify any resources required for the Retail Execution Tracking

System such as handhelds of computers and begin the acquisition.

Step 12 Plan the Analysis, Learning and Applications function for the

RED pilot. Most RED Pilot Markets start up with a virtual Analysis,

Learning and Applications function then transition to more permanent

infrastructure after the RED Pilot or as need arises. The RED Pilot Project

Team should begin by looking at the output required from this function. (Non-

conformity reports, Managerial Reports, Ad hoc reports, Monthly RED Pilot

progress reviews, Recommendations for updates to Pictures of Success,

Recommendations for recognition and rewards) The outputs should helpidentify the skill set requirements. In most bottlers, skill sets associated with

channel marketing, financial analysis and sales information analysis and

reporting are sources of the skills required for Analysis, Learning and

Applications.

Step 13 Plan the Retail Execution Recognition and Rewards program.

The inclusion of a recognition and rewards program for the RED Pilot Market

is critical to success for the pilot. Recognition and reward simply motivates

the Salesmen and Sales Supervisors to maintain the behavioral changes

required for a successful RED Pilot Market. Recognition for salesmen and

sales teams in company publications and on sales room walls plus gifts and

bonuses for progress with Pictures of Success are relatively low cost means of

keeping the RED Pilot Market moving forward. If a bottler does not already

have a variable compensation program with an element focused on retail

execution, it is not recommended to make this change for the pilot. If there is

an existing variable compensation program, be sure the retail execution

element is focused on progress with the Pictures of Success.



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Step 14 Conduct a comprehensive final briefing on the RED Pilot

Market Plan with all associates participating in or supporting the RED

Pilot. This is a half day to full day review of the RED Pilot Market Plan, all

work processes related to the RED Pilot, identification of major roles and

responsibilities and identification of a RED Pilot Market help desk. All

associates who are participants in the RED Pilot Market and the associates

who will be supporting the RED Pilot market and the full Sales & Marketing

management team should attend the briefing.

Step 15 Go live with implementation of the RED Pilot Market using a

sequenced roll out procedure. Begin the implementation of the Pilot Market

with 20-30% of the planned pilot outlets for the first month. The Pilot Market

Project Team monitors the project very closely, identifies and solves for

problems during the month. At month end, the Pilot Market Project Teammakes an overall assessment of implementation progress and either rolls out

the Pilot Market to all planned pilot outlets in month two or stays with the 20-

30% until they are more comfortable with progress. Once all pilot outlets are

up and running the RED process, the Pilot should be maintained for a

minimum of 90-120 more days.



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SECTION V ASSESS THE RED PILOT MARKET

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The purpose of the RED Pilot Market assessment is to capture all the

process and results learning from the RED pilot implementation. The

assessment will provide final course corrections to the process and guidance

for the RED Sales Center implementations that come next. The RED Pilot

Market assessment is conducted by the RED Pilot Market Project Team after

the completion of the final month of the Pilot Market. The general process for

the assessment is:

Conduct Debriefing Interviews with Pilot Market participants: The PM

Project Team should conduct one on one interviews with a cross section of

associates who were actively involved in the RED Pilot Market. The

debriefings should focus on the participants key observations and

recommendations. Included should be Salesmen, Sales Supervisors, Sales

Management, Surveyors, Analyst, and RED customers. The Project Team

Leader should debrief all Project Team members. The debriefing input shouldbe organized around RED process components into a summary document.

Assess progress with Retail Execution and the major components of the

RED process. The RED Project Team should summarize the progress with

Pictures of Success, Sales Routines and Reports, the Retail Execution

Tracking System, and Analysis, Learning & Applications. The focus of this

assessment is to identify the timing and causal factors for significant changes

in progress with RED components during the Pilot Market.

Complete a summary of Business Results from the RED Pilot Market

contrasted to the business results of control outlets. Business results

include NSR, volume and Profit Contribution. The business results should be

summarized by Market Segment and Total Pilot Market.

Assess the RED Pilot Market Project Plan and revise with learning: The

Project Team should review the original RED Pilot Market Project Plan and

revise it with their learning. Revisions should be made for problem process

activities, impractical timelines and resource issues. The revised Project Plan

becomes a valuable tool for the Sales Center RED implementations that comenext.

Prepare and Present a Debriefing on the Results and Process Learning

from the RED Pilot Market. The presentation should include Business

Results, Retail Execution Results, RED process learning and Pilot Market

Project Plan learning. The presentation should be made by the PM Project


ASSESS THE RED PILOT MARKET

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Team to the Bottler Senior Management Team and the Sales and Marketing

Management team. Include all appropriate associates from TCCC.



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SECTION VI IMPLEMENT RED

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RED process implementations can begin for the franchise territory using the

learning from the RED Pilot Market. The following actions should be taken

prior to full RED implementations:

Adapt the Sales & Marketing organizational infrastructure to support

the RED Process. The RED process will require an organizational unit with

the specific capabilities and capacities to support RED implementations and

the on going RED process. This RED support unit should report to the VP of

Sales & Marketing. The organizational unit should be lead by a Director of

Retail Execution. The best qualified candidate for this leadership role is the

Project Team Leader from the RED Pilot Market. The functions within this

organizational unit include;(1) Channel & Segmentation planning (One of the

first tasks for this function is to determine if the Market Segmentation plan

can be advanced before RED is implemented in a Sales Center), (2) Pictures

of Success planning, (3) management of the Retail Execution TrackingSystem, and (4) RED Analysis, Learning and Applications. Each function will

have to be scaled up to support the implementations of RED in Sales Centers.

Expand the final version of the RED Pilot Market Project Plan into a

detailed manual to guide RED implementations in a full sales center. This

step adds the scale and scope considerations of a Sales Center to the final

RED Pilot Market Project Plan. This creation of this How to manual should

be the initial responsibility of the newly created Retail Execution support unit.

The purpose of this manual is to be a stand alone resource for Sales Center

Managers implementing RED. The document is important given that the

primary responsibility for RED implementation in a Sales Center is the Sales

Center Manager.

Develop the Training Programs & Communication Materials to support

RED implementations. The Training Department and HR function will need

to be engaged to complete all the Training Programs and Communication

Materials required to implement RED in Sales Centers. Included are Training

Programs on Pictures of Success, Retail Execution System Tracking Systems,

Routines & Reports and Coaching. The Training Programs developed in theRED Pilot Market are a good inputs for this development work.

Develop a RED implementation sequence and timetable. Plan the sequence

of RED implementations across the Sales Centers in the franchise territory.

Most implementations start in the Sales Center with the Pilot Market then

progress next to the Sales Center expected to have the least implementation

problems.


IMPLEMENT RED

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SUMMARY

Overview of the RED Process

RED is a continuous improvement process focused on Pictures of Successthat, across time, advance in complexity and purchase stimulation

effectiveness. The advancing complexity of these Pictures of Success is

synchronized with the growth of execution capabilities to keep the Pictures of

Success always challenging but achievable. The Sales organization

continually improves execution capabilities through sales routines and reports

that reinforce best practices and a disciplined process. Retail Execution

Tracking Systems provide timely and actionable information on compliance

with Pictures of Success that is the primary input to the Analysis, Learning

and Applications team. The output from this team includes Non-compliance

Reports, Managerial Reports, ad hoc reports, identification of retail executiondeserving recognition and rewards and recommendations for changes to the

Pictures of Success. These recommendations advance the Pictures of Success

and begin another cycle of continuous improvement.

Key Principles of RED Implementation

Experience from RED implementations across a variety of markets provides

the basis for the following key RED implementation principles:

The first step of a RED journey is to secure Senior Bottler

Management commitment and buy-in to the RED process and a RED

implementation.

Reach TCCC-Bottler alignment on the RED process, the RED

implementation plan and the resources required from each partner.

Start with a RED Pilot Market that has a very manageable size

(Market Segments and Outlets) and a very manageable scope (Picture of

Success elements).

Manage the RED Pilot Market with a Project Management Team leadby an experienced high potential Sales-Marketing manger who can devote a

minimum of 70% of his time to the project. Fill out the team with the

required subject matter experts.

Hold an in depth RED Project briefing with the Sales & Marketing

management team before Pilot Market implementation then provide frequent

progress updates to the same group.



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Fully train all Pilot Market salesmen, sales supervisors and the Project

Management team on the Retail Execution Tracking System before beginning

the Pilot Market. Run trial surveys, adjust the process as necessary and re-

train the full group until the surveying process is flawless.

Before implementing the RED Pilot Market, assess compliance levels

with the initial Pictures of Success using the trained surveyors then adjust

Picture of Success elements that are above 80% non-compliance to be more

attainable with current sales execution capabilities.

Before implementing the RED Pilot Market, refocus sales routines

and reports on achieving progress with Pictures of Success. Be careful not to

just add new routines and reports, replace unnecessary routines and reports.

Before implementing the RED Pilot Market, plan the survey cycle, the

survey sample and the survey frequency for the Retail Execution TrackingSystem. The survey cycle should never exceed the correction cycle. The

survey sample should include 6-10 surveys for each salesman during the

survey cycle. A significant balance of same outlets should be carried month

to month.

After implementing the RED Pilot Market, keep salesmen and sales

supervisors on the Retail Execution Tracking System survey team to maintain

credibility for the tracking system.

Have the Pilot Market Project Management Team complete a

comprehensive assessment of the RED Pilot Market at the conclusion andapply all learning to a detailed guideline for full RED implementations.

Before going live with a full RED implementation, create and staff a

RED Support Unit that reports to the VP of Sales & Marketing. The RED

Support Unit should be lead by a Director of Retail Execution. (The RED

Pilot Market Project Team Leader is usually a great candidate) Include the

Channel/Segment planning function, the Retail Execution Tracking System

function and the RED Analysis, Learning & Applications function in the RED

Support Unit.

Develop a sales center roll out sequence and timetable for full REDimplementation that begins with sales centers expected to have the least

implementation problems. Advance the timetable of sales center

implementations with the learning curve.

Always remember, Start small, think big and grow fast.



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Cultural Changes to the Organization from RED

RED changes the culture of a sales and marketing organization. RED creates

a passion across the organization for execution excellence. RED creates newskills and new career paths within the sales and marketing organization. RED

helps create alignment between TCCC and the bottler by connecting

marketing strategies and retail execution. RED creates sustainable

competitive advantage for the franchise and a strategic marketing asset for the

KO business system.



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