DEVELOPING AND
MANAGING WINNING
PROMOTIONS
ROCH BOUCHER
GLOBAL INNOVATION DIRECTOR TI&P INFORMATION TECHNOLOGY, UNILEVER
ABOUT UNILEVER
Unilever is one of the world’s leading suppliers
of fast-moving consumer goods.
Our products are sold in over 190
countries and used by 2 billion consumers
every day.
FAST FACTS - 2013
EMERGING
MARKETS
NOW
REPRESENT
57%
OF TURNOVER
TURNOVER OF
€49.8 BILLION
AT END OF 2013
174,000
EMPLOYEES
AT THE END
OF THE YEAR
€1 BILLION
INVESTED IN R&D WORLDWIDE
190
COUNTRIES IN
WHICH OUR
PRODUCTS
ARE SOLD
SCALE AND GEOGRAPHICAL REACH
EUROPE
THE AMERICAS
€16.2 billion turnover
1.0% underlying volume growth
33% of group turnover
EUROPE
EUROPE
€13.5 billion turnover
0.4% underlying volume growth
27% of group turnover
EUROPE
ASIA, AFRICA, CENTRAL &
EASTERN EUROPE
€20.1 billion turnover
5.0% underlying volume growth
40% of group turnover
THE UNILEVER SUSTAINABLE
LIVING PLAN
• We have long been working and
reporting on our impact on society and
the environment. Our Sustainable
Living Plan brings together all this work
and sets many new targets.
• Our Sustainable Living Plan will result
in three significant outcomes by 2020.
1. We will help more than 1 billion
people take action to improve their
health and well-being.
2. We will halve the environmental
impact of the making and use of our
products.
3. We will source 100% of agricultural
raw materials sustainably.
SOURCE
HELP
1
BILLION
PEOPLE IMPROVE
THEIR HEALTH
& WELL-BEING
HALVE
100%
ENVIRONMENTAL
FOOTPRINT OF
OUR PRODUCTS
OF AGRICULTURAL
RAW MATERIALS
SUSTAINABLY
PROMOTIONS
The new realities of trade promotion management in the consumer goods world require different strategies and
the right technology choices to maximize promotion spend. This session will define what success looks like in
the new landscape, provide best practices, advise how to overcome challenges, and debunk common myths
associated with TPM in developed and emerging markets.
IT’S A VUCA WORLD
So what can you do to increase your
chance of success?
Put in place a number of key levers that
will lead to successful promotions
7
INSURE THE PRESENCE OF A STRONG
BUSINESS PROCESS FRAMEWORK
Myth
• Markets are all
different there
can be no
commonality
• D&E Markets
need not
concern
themselves
• One Global
process
adhered to by
all
Practice
•
• Set up a
business
framework that
allows a level of
flexibility while
recognizing that
differing
markets are at
evolving thru
maturity stages
Challenge
• This is years in
the making /
embedding and
requires constant
senior CD
support
8
ONE ROBUST PROCESS, WITH
MARKETS AT DIFFERENT STAGES OF
MATURITY & NEEDS
Type A
Type B
Allows for segmentation
and therefore different
solutions
9
COLLABORATION
Myth
• Win lose;
adversarial, us vs
them
• Just put in a JBP
tool
Practice
•
• Determine what
level of JBP you
and your customer
are willing to
engage in
• A function with
appropriate
solutions needs to
be established
Challenge
• There are a variety
of available tools,
integration will be a
challenge
• Data intensive,
planning and
modeling intensive,
requires
normalization of
your internal data to
your customers
 mapping intensive
10
ANALYTICS (BACKWARDS AND FORWARDS)
Myth
• I can buy it
• and/or its easy
Practice
•
• Correct use of data
is a differentiating
asset. Assets need
to be invested in
and built
• Need to
organizationally set
up to build that
capability with the
appropriate
solutions.
• Takes years
Challenge
• Getting the data
(choosing where it
needs to reside),
normalizing the
data, exposing the
data upgrading skill
sets
• Doing so at a cost
effective point and
in a timely manner
11
THE SEVEN ELEMENTS OF OUR VISION
FOR INFORMATION
People
BUSINESS
INFORMATION
TEAMS
INFORMATION
OPERATIONS
Tools
MY BUSINESS
INFORMATION
Data
ONE VIEW
ANALYTICS
ANALYTICS
POWERHOUS
E
ENTERPRISE
DATA
WAREHOUSE
MASTER
DATA
MANAGEMENT
SIMPLIFIED
INFORMATIO
N
UNILEVER INFORMATION REPORTING ARCHITECTURE
Integrated
Reporting /
Analytics
Data
Services
Operational
Reporting /
Analytics
Structured external data
Structured internal data
ECC
PLM
TPM
ePOS
Legacy
CRM
Loyalty
MDM
APO
Resulting in
sophisticated reporting
as a matter of course
MAGICAL MYSTICAL WORLD OF
OPTIMIZATION
Myth
• Ready for prime
time
• Holy Grail
Practice
•
• If rearward looking
was challenging
forward looking is an
even greater
challenge
• How you put together
your datasets and
normalize will make a
material difference to
the outcome
• Segment your
categories/customers
• Chose an appropriate
level of solution
Challenge
• Math is understood
by few,
• The need to
normalize and
insure validity of
data is critical
• Needs constant
updates of models
• Integration is a
challenge
• Black box = no trust
• Organization CM
issue
15
TRADE PROMOTION OPTIMIZATION
Analytical Planning Capabilities
Increasing Level of Optimization with increasing integration issues
Minimal Optimization
Facilitated
Optimization
What-If Optimization
Automated
Optimization
•
Based on heuristics and
subjective analysis of
previous promotions
•
Advanced analytics to
predict consumption and
shipment volume
•
Simple tools for planners
to reduce time on trial
and error
•
Minimal analysis of basic
metrics
•
Development of “what-if”
scenarios
•
•
Profit-based metrics to
prioritize events
Includes seasonality,
trend plots, price
sensitivity, and
automated event
scenario creation
•
Automatically identifies
optimal scenarios within a
given set of constraints
Product Mapping
Challenge
Objectives
•
Enable Collaborative Growth
with our customers
•
Provide insights to planners
to lead to better promotional
planning decisions and
greater category growth
Customer Mapping
Challenge
Time Mapping
Challenge
DEPLOYMENT OF FIT FOR PURPOSE
SOLUTION(S)
Myth
Practice
•
Challenge
• One solution will fit
all of your needs
• More than one
solution will be too
expensive
• Your processes are at
different levels of
solution maturity
• Fit your solutions to
your process maturity
• Focus diligently on
benefit realization
• Use of pilots to learn
• Use of staged
releases
• Complexifies your
landscape, makes
integration a
challenge
• The longer the
program the risk of
failure increases
geometrically
• Get the
foundations in
quickly
17
Two Classifications spanning
process
Type A
TPM
•
•
•
+
Creating transparency
into trade spending
Ensuring financial
control over trade
spending
Enabling accurate
sales forecasting and
demand planning
•
+
PEA
Making improved trade
decisions based on
prev. event
performance
– Continuing effective
promotions
– Stopping ineffective
promotions
•
TPO
Optimizing how funds
are spent by …
– Understanding the
relative
effectiveness of
investment options
– Enabling a better,
more fact-based
dialogue with
customers
+
JBP
• Improving customer
relationship and trade
profitability across all
Unilever brands
• Increasing on shelf
availability and new
product introduction
success rates
• Joint benefit realization
Capabilities sophistication
BASIC
Solution maturity
1
18
TECHNOLOGY CHOICES ( LAYERING )
Technology Changes
Efficiency
(Infrequent)
Transformatio
nal Change
JBP
POC
Pilots
PEA
Newly enable
existing
processes or
well known
requirements
TPM
Existing
capability
delivered
new ways
TPO
Disruptive
Innovations
Build
19
USABILITY AND ADOPTION
Myth
Practice
•
Challenge
• If you build it they
will come,
• If you train they will
accept
• If you measure it
you are
guaranteed the
outcome you seek
• Change Management
is typically not a focus.
It needs to built in up
front via activities that
focus on Usability &
Adoption
• Agile development
• Use of modeling to
engage and define
• Gamefication to
embed
• Chose to invest in a
good UI
• Training
• A very different
way of operating
that the typical
waterfall project
approach
• Not understood by
partners or
customers
• Harder to lock in
definitive contracts
with performance
clauses
20
BUILDING IN USABILITY AND ADOPTION
IN THE LIFECYCLE
Models
High
Fidelity
Medium
Fidelity
Low
Fidelity
BOSCARD
Approval
Charter
Approval
PreIdea
Ideas
Contract
Approval
Feasibility
Service
Acceptance Close
Launch
Approval
Capability
Launch
Closure
Agile Development
Demand
Ideas
Capture
& Prioritise
Identify
Options
Feasibility
Select
Solution
Design
& Cost
Capability
Busines
s Case /
Contract
Specify
Train /
Build & Acceptan
Test
ce
Test
Launch
Go-live
Transiti
on to
Service
Closure
Decommis
sion / Run
Service
21
THE MODELLING PROCESS
I. Scenario
II. Low/Med
Ideation Static Prototype
Fidelity
Visio
PowerPoint
Excel
Capture the high-level
scenarios and flows
supported by the application
and willEase
be created in the
visualization.
III. High
Fidelity
Interactive
Visualization
Identify and validate the
initial page layout and
functionality for each page
identified during Scenario
Ideation
Focus on designing a detailed
page layout, look, and feel and
refining usability of the
Visualization
Coded Prototype
HTML / JavaScript
Java / .NET
Database
Functionality
22
Personal
Social
Material
Cultural
Environmental
Altruistic
23
GAMIFICATION COMPONENTS:
KPIs
to be measured:
1.
2.
3.
4.
5.
Reward mechanism:
Scoring points through:
 Super Campaigner (OPSO promotion
creation challenges)
 The race (Bike races, Growing Orchard;
Earn Points for winning race, saving farm
resp. by doing better on KPIs)
 TPM challenger (OPSO quizzes amongst
teams to generate tool awareness)
 Better the points, higher belt assigned on the
Green Ladder, greater sustainability reward
 Sustainability initiatives at various levels to be
agreed with USLP team. (Eg. Planting a tree,
supporting a social cause)
 Acknowledging the users Via Emails, CD
newsletters
Green belt
Red belt
Yellow
belt
75% green promotions
Uses 75% of modules
Meets 100% of KPIs
35% green promotions
Uses 45% of modules
20% green promotions Meets 60% of KPIs
Uses 25% of modules
Meets 30% of KPIs
Levels of rewards
Promotional ROI
Promotional Growth
Forecast deviation
Spend coverage
Promotion
Amendments
6. Promotion
Effectiveness
7. Planning efficiency
8. Promotion Duration
9. Post event analysis
10.Monitory benefit
Gaming Techniques:
MAKE THE EFFORT FOR USABILITY
Usability is not restricted to custom applications
25
IMPLEMENTATION & MAINTAINABILITY
Myth
Practice
•
Challenge
• If you specify it
correctly any
competent vendor
can run with it
• If you build it right
you can easily
hand it off to
another group to
fix when it breaks
• Develop a trusted IT
Partner(s) to support
you
• Use delivery
framework to
continuously improve
quality
• Speed is your ally
• Involve support
services as early as
the design phases
• Perception that
you lose leverage
to get best costs
26
DEVELOPING A PARTNER
IT’S A JOURNEY


Greater
VISIBILITY
Greater
ACCOUNTABILITY
(KPIs & metrics)
(Output KPI Usage)
2012

2013
2014
Greater
ALIGNMENT
(Through team
engagements)
2015
Continuous Journey
TRANSFORMATION:
VENDORS
CAPABILITY
BUILDING
PARTNERS
Parameters: Time, Quality, Cost
Partnership: Proactive, Predictive, Forward-thinking
27
DELIVERY FRAMEWORK – OVERALL
APPROACH
Leading Indicators:
Lagging Indicators:
• Code reviews
• Traceability metrics
• Pre-emptive Solution
• Release scores
• Defect tracking metrics
• KPIs, Trackers
Shifting the detection towards Leading Indicators.
PROCESS LEVERS:
•
•
•
•
Contracting principles
Global Template adherence: Tracking and reporting
Estimation model
Rigor in managing Demand funnel
Greater visibility, accountability, Certainty
FIRST TIME RIGHT (On Time In Full – No Errors (OTIF-NE):
Defect count
85% lower
90% testing
time reduction
Release scores
PEOPLE ENGAGEMENT:
•
•
•
•
Key contract owners and Target alignment
Alignment to Unilever ways of working
Felicitations and Team bonding
Preserve: Inherent program, Unilever knowledge
DRIVING lower COSTS
92% better
28
CONTINUOUS IMPROVEMENT
Myth
• You may think you
are doing CI but
…….
Practice
•
• Use of Change
Advisory Boards with
decision authority on
the template
• Use heat maps
• Metrics, public metrics,
transparent metrics
Challenge
• Assumption that
Programs
launched
successfully will
necessarily
transition well to
continuous state
and to continuous
improvement
• Funding. Typically
not included in to
program costs or
running costs.
• Including
headcount
29
USAGE PATTERN
Contracted Usage
Usage
30
METRICS
Average across ABC, LMN, XYZ
ABC
ABC
ABC
LMN
LMN
LMN
XYZ
XYZ
XYZ
ABC ( ~ 5200 promotions):
LMN (~ 1800 promotions):
XYZ(~ 800 promotions):
No actuals received for Turkey for 2013-14
31
GOVERNANCE
Myth
Practice
•
Challenge
• A group of people
in a meeting form a
governance body
• Form follows function
• Governance bodies
need to reflect the
organization hierarchy
that will be required to
drive the change
• Global body is
required to drive
convergence, market
body is required to
drive acceptance. You
need both
• Getting the time
from senior
leaders to serve
on these boards
• Governance
bodies tend to
disband once the
programs are
“completed”
IF YOU ARE LOOKING FOR SUCCESS
IN A VUCA WORLD
People process systems
look for evidence of these levers
• Strong Business Framework
• Evidence of Collaboration with
Customers
• Analytics (Backwards & Forwards)
• Fit for purpose solution(s)
• Usability & Adoption
• Implementation & Maintainability
• Continuous Improvement
• Ongoing Governance
You continue to improve your
trade spend year over year
33