Accelerate! at work in the Markets
Transcript of Accelerate! at work in the Markets
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Key takeaways
• Accelerate! is moving decision-making
and accountability closer to the markets
– stimulating entrepreneurship, speed
and local relevance
• Our new operating model will strengthen
capabilities in markets, as we deploy
our transformation deeper into our
organization
• Our End2End initiative is delivering
results with consumers and customers,
as we transform into a market-driven
company
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Transforming into a market-driven organization Key to reaching our full potential – growing sales, profit and share
• Fast, agile and
entrepreneurial in
local markets
Customer
Centricity
Accelerate!
Resource to Win
End2End
Culture
Operating Model
Market impact
• Deeper understanding
of local consumer
needs and trends
• Partnering with our
customers to grow
categories together
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We are implementing Accelerate! across our markets
Creating stronger
marketing and sales
teams and tools
Eliminating silos and
teaming-up
Moving decision-making
and accountability
closer to markets
• Empowering commercial
organizations to react
fast to market dynamics
• Embedding strong
performance-based
management to drive
results
• Sharing insights and
best-practices to
accelerate our
transformation across
markets
• Being entrepreneurial to
identify and react to local
opportunities
• Building our brand with
local consumers, and
partnering with our
customers – with a keen
focus on ROI
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Moving decision-making and accountability closer to markets
Empowering local teams and driving performance
• Robust monthly and quarterly
process to review market
performance with line-of-sight to
CEO
New operating rhythm and
performance management
• Appointed Chief Market
Leader
• Clearly aligned share,
sales and profit targets by
BMC
• Implemented new
operating rhythm and
performance
management
• Granular understanding of
short-falls to pro-actively
address and successes to
replicate
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Creating stronger marketing and sales teams Entrepreneurial, locally relevant, ROI-driven
• Launching more market-specific
campaigns to win with local
consumers
• Piloting tools to optimize
Advertising & Promotion across
BMCs
Developing local campaigns and piloting
Advertising & Promotion effectiveness tools
• Shifting our mix towards more
effective emerging media
• Pilots deliver over 20% more
gross margin for same
Advertising & Promotion spend
• Created Marketing Director
roles in all markets
• In China, built teams to
develop local products in
Shaving, Mother & Child
Care, Air; and expansion to
lower tier cities in 20
provinces
• Developing local
campaigns and piloting
Advertising & Promotion
effectiveness tools
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Eliminating silos and teaming-up Sharing best-practices, scaling-up our transformation
• North America Sonicare
success is underpinned by
dental professional (DP)
endorsement; 60% of
purchases are DP-influenced
• We are scaling and refining this
model to be relevant to other
countries such as DACH, China
and UK
Sharing and scaling sales
and marketing best-practices
• 7 End2End pilots globally
to transform our markets
and businesses
• Established a Market-To-
Order network
• Sharing and scaling
sales and marketing
best-practices
• In DACH, 30 dental
professional sales
representatives hired and
celebrity endorsement activated
(>40% annual growth achieved)
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Key takeaways
• Accelerate! is moving decision-making
and accountability closer to the markets
– stimulating entrepreneurship, speed
and local relevance
• Our new operating model will strengthen
capabilities in markets, as we deploy
our transformation deeper into our
organization
• Our End2End initiative is delivering
results with consumers and customers,
as we transform into a market-driven
company
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End2End is a key part of Accelerate! Led by our markets and businesses to achieve our transformation
Customer
Centricity
Accelerate!
Resource to Win
End2End
Culture
Operating Model
End2End Approach
• Transforming our
business to grow, be
more effective and
efficient
• Optimizing our
End2End customer
value chain we will
win from competition
• Defining how to win
in our local markets,
with projects running
globally
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We look through three lenses to identify opportunities Define changes needed to our business and deliver results
Philips Customer Consumer
How will we transform our business?
How will we partner with our customers to drive growth?
How will we win with our consumers?
More effective
Sales Profit Time to
Market Inventory
Cost of
non-quality
Customer
service
Market
share
More efficient
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Consumer: Identifying new groups for incremental growth
Consumer
Untapped consumer groups and unmet
needs
How will we win with our consumers?
• A more granular view of
the market identified
untapped consumer
groups, new and different
unmet needs:
– Younger users,
Hispanic and African
Americans, baby
boomers
– Close-shave, styling,
on-the-go
• Delivering significant
incremental sales and
profit opportunities for the
Male Grooming category
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Customer: Partnering to support their strategies and grow the category
Customer
Partnering with Walmart to support their
strategies
How will we partner with our customers to drive growth?
• Help Walmart
achieve their “Store
of the Community”
strategy via unique
product offerings,
new merchandising
solutions, in-store
education, etc.
• Resulting in more
trips to store,
higher category
productivity,
improved inventory
efficiency
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Philips: Transforming our business to grow And become more efficient based on consumer and customer needs
Philips Streamline our End2End value chain
How will we transform our business?
• Idea-to-Market: Faster,
more regular innovation to
boost consumer interest
and deliver sustained
category growth
• Market-to-Order: Local
insights team driving
local-for-local product
development, marketing
and communication
• Order-to-Cash: More
reactive to consumer-
demand driving lower
inventories (18% reduction)
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We are rolling out our End2End approach and learnings globally
We have now 7 pilots ready for roll-out in 2013
North America
Male Grooming
Italy
Coffee
North America
Oral Healthcare
DACH
Oral Healthcare Russia
Kitchen appliances
China
Male Grooming
China
Mother & Child Care
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Key takeaways
• Accelerate! is moving decision-making
and accountability closer to the markets
– stimulating entrepreneurship, speed
and local relevance
• Our new operating model will strengthen
capabilities in markets, as we deploy
our transformation deeper into our
organization
• Our End2End initiative is delivering
results with consumers and customers,
as we transform into a market-driven
company