20 Steps for FMCG

https://www.enchange.com/services/20-steps-to-route-to-market-excellence/

Assessment

To start with, you should review and understand (not guess) every element of your current RtM set up.  This should include reviewing your ‘current’ 20 steps across your RtM. This should include the performance of current and available distributors, field force, back office, sales management, operations, CRM, to name a few. We also recommend reviewing RtM operations of competitors and best in class non-competing companies.

STEP 1   Review Current RtM Performance – Strategy, the Existing 20 Steps that are present, SWOT Analysis from Our Standpoint, Work Practices, Metrics, Portfolio Analysis (Pricing & SKU Segmentation) & effect on RtM, advanced RtM Data Analytics, etc. Read more on our supply chain and RtM analytics solution here.

STEP 2   Consumer & Market Mapping – Consumer Behaviour & Trends, Specify Geographic Realities, Trade Landscape, Point of Sale (Direct/Indirect), Key Battlegrounds, Must Wins

STEP 3   Distributor Assessment (Direct/Indirect/3rd Parties) – Visit Client Distributors, Access Current Distributors. Read more on our programme to assess distributors’ performance here. Download our Distributor Performance Guide here.

STEP 4   Competitor Analysis – Competitive, Non-Competitive, Best in Class, Competitor SWOT Analysis. Download a copy of our  Competitor SWOT Analysis Template.

Deliverables of this phase include:

  • Current RtM performance – A-Z of Current Performance covering the 20 steps.
  • Portfolio & Pricing Analysis – Overview of Brand Portfolio, Price, Portfolio & SKU Segmentation, Pricing Strategy & Execution
  • Distributor Performance Assessment (Quantitative & Qualitative) vs Best in Class
  • Competitors – Model of Competitor RtM, Competitor Portfolio and Best in Class RtM Models
  • Market Map – Current Consumer Behaviour & Geographic Nuances, Outlets by Channel and Coverage Map (Direct & Indirect)

Strategy

Based on the extensive review in steps 1 to 4, looking strategically across the 20 steps and working closely with your cross functional and interdepartmental teams, map out your customised RtM Strategy and approach to deliver your strategic goals.

STEP 5   RtM Strategy & the 4D Approach

  • Overall Approach to RtM linked to commercial goals
  • Detail what success looks like
  • DIME Approach (Direct, Indirect, Mix & Everything in between). You can learn more about our DIME Approach here.
  • Define requirements across 4D’s (Distribution, Display, Dialogue, Digital). Read our views on Digital in FMCG RtM here.
  • Link them to the organisation goals
  • Strategy Map to Define Dependencies & Ensure Organisation Buy-in

Deliverables of this phase include:

  • 4D RtM Strategy & Approach
  • RtM Strategy Map – Highlighting Key Dependencies of RtM Strategy Components. Read more and see an example of an RtM Strategy Roadmap here.

Design

In this phase focus should be to design the specific steps that deliver the RtM strategy. This includes classifying each point of sale/outlet against chosen criteria, segmenting these into channels, building territories to cover the market, designing the required RtM structure to deliver this.

The right data and metrics need to be available. A Sales Incentive Programme to support RtM goals should be developed, and the sales force need to be equipped with the required toolkit to deliver. Finally, a Trade Incentive Programme to partner with your customers is needed and the right technology needs to be in place.

STEP 6    Outlet Classification – Target precious RtM Resources at the right retail outlets.  Classify each retail store physically and then Segment For Gold.

STEP 7    Channel Classification – Review, Prioritise, Define Channels, Sub-channels, Management & Resource. Learn more about the 9 key areas to focus on when building your Channel Strategy here.

STEP 8    Territory Planning – Geography, Link to Market Mapping, Trade Coverage, Resource FTEs (To Be vs. As Is)

STEP 9    RtM Structure – Define Field Force & Back Office – Distribution, Merchandising, Promotions, Telemarketing, Customer Services, Events, Trade Marketing, Horeca, etc

STEP 10  Data & Metrics – Define Current Capability, New Data Requirements, Revenue Management Model (e.g. maximising revenue with efficient territory planning, route optimisation, sales targets, incentives, understanding Total Cost to Serve Model etc.), New KPIs, Reporting. See a Balanced Scorecard example here.

STEP 11   Sales Incentive Programme (SIP)– Successes, New Targets including Volume, Brand Distribution, Point of Sales (POS), Visits, etc.

STEP 12  Trade Tool Kit –  Outlet Execution & Activation, Define Must Haves including Order Capture, Order Method, POS Material Placement & Management, Planograms, Portfolio & Pricing Process & Initiatives, Trade Incentives & Promotions, Trade Engagement Options, etc.

STEP 13 Trade Incentive Programme (TIPs) – Review Successes, Promote Loyalty, Develop Options

STEP 14  Technology – Define Technology Requirements for CRM, Hand Helds, Order Capture, Trade Marketing, Trade Data capture, Trade Census Management, Track Customer Compliance to Terms, Planogram Compliance, RtM Data Analytics, etc.

Deliverables of this phase include:

  • Outlets – Customer Outlets Classified & Segment for Gold.
  • Channels – Channel & Sub Channel Management Plan
  • Territories – New Territories, Resource Plan, Route Plans, Target Calls & Frequency
  • Structure – Defined Field Force (Type, Numbers, Structure) and Cost to Serve Model. See practical Cost to Serve examples here.
  • Data & Metrics – Roadmap including Requirements, Capture & Systems, New KPIs, Revenue Management Model, Defined Qualitative and Quantitative Reporting.
  • SIP – New Sales Incentive Programme & Training Plan
  • Trade Tool Kit – New Trade Tool Kit, Toolkit Process, Agreed Approach & Training Plan
  • TIPs – New Trade Incentive Programme & Training Plan
  • Technology Roadmap & Plan

Implementation

Now is the time to focus on implementation. Depending on the strategy chosen either pilot, scenario plan or implement the new approach with your teams.

STEP 15  Distributor Partnership Programme – Develop Model Distributor, Strategy, Approach, Development Plan & Execution for each Distributor. Learn more about Distributor and Wholesaler Management here. Read a Distributor Partnership Programme example here.

STEP 16  Third Degree Partnerships (3DPs) – based on current Distributor needs & issues, identify 3DPs and implement program. Read our blog post on 3DPs here for more information. Download our Guide on 3DPs here.

STEP 17  Key Account Management (KAM) – Define KAM Needs, Relationship Management & Negotiation, Develop & Implement Trading terms, Train KAMs

STEP 18  Training & Upgrading – Rollout Programme to support all aspects of new RtM. Include ‘Steps of the Call’, ongoing Training Programme. Roll out New RtM Development (NRD) approach to ensure Continuous Improvement. Download our RtM training guide – The 10 Key Steps of FMCG Sales Call here.

 STEP 19  Functional Integration – Map Out & Execute RtM links to other Functions, especially Marketing & Supply Chain (Sales Forecasting/Inventory Management/Out of Stocks Prevention). Also include Finance, Operations, IT & HR. Integrate new RtM with Sales & Operational Planning (S&OP). To understand how and for an example, read here.

STEP 20  Culture & Leadership – Ensure Top Team & CEO Active Support from Step 1. Develop & Execute Supporting Change Management Plan. Develop & Execute Clear Messaging. Develop Cross-Functional Buy-In & Support.

 

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