Presentation to:
Category Management Association
Conference
October 27, 2009
Agenda
What is Storewars?
How Storewars works
Key learning objectives
Program structure
Suggested participants/formats
Storewars clients / countries
Participant learnings/feedback
For more information
What is Storewars?
An exciting, challenging MBA-level business
simulation that provides participants with:
• Risk-free environment to test strategic business
concepts
• Valuable industry knowledge
• Understanding of challenges facing their trading partners
• Negotiating and team building skills
Leading to:
• Improved business results
• Increased consumer satisfaction
How We Learn
10% of what we read
20% of what we hear
30% of what we see
50% of what we both see and hear
70% of what is discussed with each other
80% of what we experience personally
95% of what we teach to someone else
-William Glasser
How Storewars Works
Five profitable $100 million companies
• Two retailers
• Three CPG manufacturers
Two separate and distinct markets
Two categories
Teams decide marketing, sales and commercial
issues
Teams negotiate trading agreements
Decision-Making and Negotiation
Production
R &D
Store Image
Assortment
Positioning
Advertising
Shelf space
Pricing
Promotions
Quantity
Discounts
Cooperative
Advertising
Terms of
Payment
How Storewars Works
Decisions fed into computer model
• Simulates 6 month period
• 4 decisions / 2 years
Company financial data reports and market
research studies provided after each decision
Winners determined by market share and
Economic Value Added (EVA)
Learning Objectives of Storewars
Offer insights into manufacturer and retailer relationships
From the book Agentry Agenda: Selling Food in a Frictionless Marketplace
by Glen A. Terbeek available at AgentryAgenda.com or Amazon.com.
Cartoon from the book Agentry Agenda: Selling Food in a Frictionless Marketplace
by Glen A. Terbeek available at AgentryAgenda.com or Amazon.com
Two Different Realities
The Retailer as a Brand!
Learning Objectives of Storewars
Offer insights into manufacturer and retailer relationships
Use enhanced negotiation skills for win-win situations
Learning Objectives of Storewars
Offer insights into manufacturer and retailer relationships
Use enhanced negotiation skills for win-win situations
Work in teams to achieve a group objective
Operate more effectively with other departments in your
organization
The Effects of Forward Buying!
Learning Objectives of Storewars
Offer insights into manufacturer and retailer relationships
Use enhanced negotiation skills for win-win situations
Work in teams to achieve a group objective
Operate more effectively with other departments in your
organization
Determine business strategy and implement effectively
Tactics Must Support Strategy…
…Or You Don’t Get Results!
Learning Objectives of Storewars
Offer insights into manufacturer and retailer relationships
Use enhanced negotiation skills for win-win situations
Work in teams to achieve a group objective
Operate more effectively with other departments in your
organization
Determine business strategy and implement effectively
Transform information into profitable decisions
Provide trading partners/customers with most appropriate
information for effective decision-making
Use your time more efficiently to make decisions
From the book Agentry Agenda: Selling Food in a Frictionless Marketplace
by Glen A. Terbeek available at AgentryAgenda.com or Amazon.com.
Program Structure
Program activities
•
•
•
•
•
Group interaction/team work
Lectures
Feedback sessions
Team reviews
Key learnings presentations/ discussion
Facilitators (2)
•
•
•
•
Coach
Lecturer/discussion leader
Analyst
Administrator
Suggested Participants
Challenging for all levels up to senior
management
Retailers, wholesalers, manufacturers, market
research providers, ad agencies, consultants
Buyers, category managers, merchandising,
sales, trade marketing, marketing, market
research
Cross functional learning helpful to other
departments such as finance, operations,
systems
Main Formats
24-34 Participants – 29 Optimal
Corporate course — all participants are
colleagues from the same company from the
same or different markets.
• Can invite trade partners
Shared course — participants are drawn from
2 or 3 different companies.
Open course — participants come from a
variety of companies and mix with peers
from across the industry.
Some Storewars In-House Clients
Ahold
Heineken
Supervalu
Kelloggs
Tesco
Kraft International
Wal*Mart
Mars
Metro (Germany)
Nestle
Metro/Mansour
Manufacturing and
Distribution (Egypt)
Philip Morris International
BAT
Unilever
Cadbury Schweppes
Wrigley
Coca-Cola
Hewlett Packard
Grolsch
Sara Lee
Hope’s Storewars Countries (outside US)
Hong Kong
Austria
China
Belgium (6x)
Indonesia (2x)
Croatia (3x)
Malaysia
Czech Republic
Singapore
Hungary
India (4x)
Netherlands (2x)
Thailand
Poland (2x)
U.A.E. (14x)
Portugal
Egypt
Brazil (2x)
Saudi Arabia (2x)
Mexico
What Participants Learned
Nielsen Open Session - Dubai
Strategy planning before tactics
Find differential from competition
Preparation is everything
Make the most of marketing tools/ research
Individual strengths should be utilised
Try to be in other’s shoes (It is really hard to be a
manufacturer!)
“Be POLITE”….especially when you are in trouble
What Do Our Clients Say?
“There are not a lot of training programs out there for retail
category managers, but Storewars was an ideal opportunity to help
improve the performance of our people while they were under the
fire of making decisions.” Michael Knight, Senior Vice President,
Giant Food Stores
“It is like a laboratory in which you can put people in stressful
situations… You can see how creative people can be.” Michael
Knight, Senior Vice President, Giant Food Stores
“The SUPERVALU participants gained valuable insights into how
their manufacturer partners prepare for and actually
negotiate.” Michael Terpkosh, Director, Category Management
Development & Retail Pricing, Supervalu
“Storewars strengthened the working relationships between our
merchandising staff and the manufacturers.” Michael Terpkosh,
Director, Category Management Development & Retail Pricing,
Supervalu
”We don’t think this much at work. Storewars gave us a first-hand
look at problems faced daily by retailers.” Nick Jay, General
Manager, Sales, Al Marai, Saudi Arabia
Programs - 2010
Retailer Sponsored
• Rite Aid
• Ahold (?)
Category Management Association Sponsored
•
•
•
•
Bentonville
Minneapolis
SF
???
Other potential sponsors
• Other industry service suppliers
• Universities – UCLA (?)
Manufacturer In-House
For More Information
Visit www.cpgcatnet.org/page/storewars/
www.cpgcatnet.org/page/storewars/
For More Information
Visit www.cpgcatnet.org/page/storewars/
Contact Hope Mandel – Shelton, CT
• 203-926-6926 (office)
• 203-856-1330 (cell)
• hmandel@cpgcatnet.org