Sales Fundamental

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JeromeTangSalesFundamentals TwoMomentsofTruthThe1stmomentofTruth-WhentheshopperchoosesThe2ndmomentofTruth-WhentheconsumerusesCustomerBusinessDevelopment–WinAttheFirstMomentofTruth WinAttheFirstMomentofTruth“Thebestcommercialintheworld,withthemosteffectivemediaplancanonlyinfluenceintenttopurchase,whileproperlyimplementedshopperinsightsin-storewillresultinapurchase.” WinAttheFirstMomentofTruth HowtoWinAttheFirstMomentofTruthJointValueCreation-Weworkwithcustomerstoachievesales,marketshareandprofitabilityhigherthanwecoulddoseparately.ShareOwnershiponBrandBuilding-WebringinshopperneedsandcustomerrequirementsinsideandcontributetoBrand/CategoryStrategy WinattheFirstMomentofTruth–WhereverDrivetrialandretrialbasedonshopperknowledgeDrivein-storesalesandshareDeliverCBDresponsibilitiesFundamentalsforbothYouandP&GtoWin!!SalesFundamentals–Importance WhatareP&GSalesFundamentals?FourFundamentals(DSPM)-Distribution-Shelving-Pricing-Merchandising Abrandisindistributionifitisregularlystocked&availableforpurchasebytheshopper.Distribution–Definition Eachbrandorsizethatisnotregularlystockedisadistributionopportunity.Asdistributionopportunitiesareidentified,itiscriticaltoprioritizethemtoinsurethatweaddressthemostimportantones–RefertoRetailPerformanceStandard(RPS)forchannelstandards.Distribution–Priority Distribution–PriorityDifferentchanneldistributionstandardsarecreated-tomeetdifferentshopper’sneeds.-tocreatecustomerdifferentiation. Distribution–VisibleDistribution Distribution–MeasurementWeighteddistribution%volumeweightedbusinesswiththedistributionNumericdistribution%storeswiththedistribution ExampleTotalStoreDistributionJF03 Thespace&positiontheproductsareputtingontheshelfin-store.Shelving–Definition Totalcategorybrandspaceshouldbesufficienttopreventout-of-stockSpace&shelfinventoryoneachbrandshouldbeequaltoorhigherthanthebrand’sshareofcategory(marketvolumeshare).Brandsshouldbelocatedonashelfbetweenhip&eyelevel.Thehighersharebrandsshouldbeinthemostprominentposition.Shelving–SpaceManagement Whatistheplanogram?Theplanogramisashelfmanagementplanwiththefollowingobjectives:Maximizesales&profitsMinimizeOOSImproveshoppershoppingconvenienceImproveshelfappearanceShelving–SpaceManagement GoodShelvingLargeSupermarketByTierShelvingVerticalShelvingBrandBlockShelvingSmallSupermarket40%ShelvingRegimenShelving RetailsellingpriceofaSKUavailableforshopper.Pricing–Definition P&Gpricingstrategiesaresetupforeachbrandindeliveringclearvaluetoshopper.Thepricesarebenchmarkingwithmarketdynamic&keycompetitors.Customerpricingstrategiesaresetupfortheregular&promotionpricesinordertodeliverthetargetprofitmarginforcustomers.Pricing–Strategies Keepcustomersinformedonthesuggestedretailprices(SRP).Letthemknowofobviousorpotentialpricingerrorsintheirstores.Pricing–ResponsibilitiesItisthecustomer’sdecisiontoestablishthepriceswhichhe/shesellsourbrands. Toolsandmeansthatincreaseourproductin-storeawarenessindrivingincrementalsales.ThisincludesbutnotlimitedtoPointofpurchase(POP)materials,off-shelfdisplay(OSD),shelvingfixture&etc.Merchandising–Definition POPMaterialsPosterShelftalkerBannerRollingPosterVerticalbanner Off-ShelfDisplay(OSD) ShelvingFixture&In-storeTheater/BrandUnitVSin-storetheaterOlayIIBrandBlockUnitShelvingfixture Yourresponsibilitygoesbeyondsellingtoyourcustomers.Youmusthelpyourcustomersresellourbrands.Merchandising–Responsibilities Merchandisingisimportantindrivinginstoresales&profitsreducedlaborcostincreasestoretrafficsatisfyshoppersavoidout-of-stockseffectivelyusespaceMerchandising–Benefits ChooseaprominentlocationAttractattentionShowpricewithareasonforbuyingStrongEquityBuildingMerchandising–GoodDisplay AGoodDisplay WTDDistributionShareofSKUShareofShelfShareofDisplay/FeaturesVolume/ValueShareFundamentalsforbothYouandP&GtoWin!!SalesFundamentals–KeyMeasurements SkinCareandCosmetics5In-storeFundamentalsVisibilityCounterlocation,countersize,lighting,etc.EquityCounter/BClook,counterrawmaterialquality,on-counterPOPquality,etc.CounselingAttitudes,skin/product/marketknowledge,sellingskills,counselingaids,etc.Trial-abilityFullregimentester,testingaids,testerdesign,etc.RetailEntertainmentPromotion,in-storeactivities,etc. Rationale:FourStepstowinatFMOTStoppingCounterlocation,countersize,logo,etc.HoldingCounterdisplay,producttester,promotion,etc.ClosingBCcounseling,celebrityitem’susage,etc;RetainingAttitudes,initiative/promotionnotification,etc. ChinaOlayNextGenerationCounterWithVECTRVisibilityRetailEntertainmentEquityCounseling/EducationTrialAbility OLAYI“5-in-storefundamental”CounterDesignCounterMaintenanceDisplayStandardCounterProduction&Installation1.VisibilityBack-ShelfLightBoxTVFacility2.EquityCounterDisplayGiftBox/BagLeaflet/BookletBCAppearanceBCAttitudeDemoCard3.CounselingBCKnowledgeDemoMiracleBCCareerPathMega-EventTrafficGenerationEventFlowTrialPurchase/PayoutDesignHolisticImproveCounter5in-storefundamentalCoreTester4.TrialabilityMaintenanceSeasonalTesterPremiumPromotionCardPRInfor.5.Retail-entertainmentEventAnnouncePrintAd WinattheFirstMomentofTruth–WhereverImportantpartofyourdailyworksDeploythroughRPSDeliverCBDresponsibilitiesFundamentalsforbothYouandP&GtoWin!!SalesFundamentals–Summary