Clm case crackers-dina
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Transcript of Clm case crackers-dina
Best recipes ever Case Crackers Recipe Book
Made by: Buryak Igor Filippova Natalia Khayretdinov Denis Shcheglov Anton Case Crackers, 2011
1
Changellenge Cup Russia 2011
Goal Strategy Distribution Logistic Summary Appendix
* West Russia **Calculation of sales growth due to exogenous factors – see Appendix #1.1 **Look Big Map in Appendix#9
↑ in 1.3 times
↑ in 1.09 times
↑ in 1.85 times
Essential Growth**
Inflation**
Distribution
Main points:
OWN retail network development
M&A actions
100% regions covering
Key Accounts relationship development
HoReCa relationship development
Usage of rail transport in cross-regions transportations
Strategy “2012-2015”
Results: NEW Distributional Network** X2 ↑ sales in $ in Russia
means X2.4 ↑ in West*
The achieving the Goal of Doubling Inmarko Sales in Monetary Term in Russia with building NEW Distributional Network in Central, North-West, South, and North Caucasus regions
is impossible without NEW Distribution and Logistic Strategy
Goal Strategy Distribution Logistic Summary Appendix
•More about the project - see Appendix #7-8
What do we have: Current problems in D What should we do: Actions
Complex Distribution scheme
Missed Regions
Contracts with non efficient distributors
(with low CCFOT)
Distributors not interest in sales increase
Small Shelf Share
CHANGE IT (D Reconstruction -Own Network Expansion)
100% regions coverage
Changes in Distributors Portfolio
System of Distributors Stimulations
Own Network Expansion
Categorical Management Projects*
HoReCa Projects*: Partnership with Academy of Hospitality Exclusive contracts with café and restaurants Standard Branded Kiosks Network
In big cities Competition with IceBerrry! Sochi 2014 Project:
Sell Ice Crème during Olympic Games: → HUGE increase in sales! New way of Distribution*: ICE CRÈME CARS
“AVON-model Project” In MSk & SPb NOBODY has ever done it!
Non standard Kiosks*: GIANT ICE CREAM In MSk & SPb NOBODY has ever done it!
Development of OWN RETAIL NETWORK*: Development of NEW CHAINS of sales:
The analysis of current problems in D (further – “D”) suggests itself the possible ways to solve the problems
• X5 Retail Group • Lenta • OKey • Magnit • Achan • HoReCa Suppliers
incl. Metro Cash&Carry)
*Due to Arktica and Santa Acquisitions ** The criterias of choosing the Distributor – see appendix #3 *** Means that Shipment could be both from own warehouses or Distributor warehouses
Distributors**
Own Warehouses: •MSK •SPb* •Stavropol* •Krasnodar*
Traditional Trade
A c t i o n s b y D i s t r i c t s
MSK&SPb Central District North-West District South District North Caucasus Region
Arktica Acquisition OWN Kiosks “Ice crème car” Project
OWN Kiosks “Ice crème car” Project
Arktica Acquisition Distributors #
# Murmanskaya oblast’ # Karelia
Santa Acquisition Magnit contacts Sochi 2014
NEW Distributiors: # Chechnya # Dagestan
Tula Plant
Our goal Strategy Distribution Logistic Summary Appendix
Central D Center
Tula
Strategy of expanding OWN Network and reducing the levels of D to 2
Scheme of D: Less D Levels Direct Shipments to Key
Accounts, Ice Crème Cars Distributors: only for
dealing with TT and far regions
Delivery to kiosk should be flexible
Logicians services use only for transportation!!!
Ice Crème Cars
Kiosks Network
Cross Regions Shipment Inter Region Shipment
SPB
MSK
Traditional trade
Key accounts
Modern trade
Target Distribution by channels 2015:
in accordance with Market needs
2012 2013 2015 2014
1. Acquisition*
2. Distributor Change
3. Distributor
4. Work with
5. Contracts with HoReCa
6.
7.
1. Sales Increase: 9%
+ 16500 pallets
+ CCFOT Control
2. Sales Increase: 0.5%
+500 Pallets
+8% CCFOT
3. Sales Increase: 2%
+ 8900 pallets in Murmansk, Petrozavodsk, Groznyi, Mahachkala
4. Sales Increase: 4.5%
40% Shelf Share
5. Sales Increase: 10%
5% of Sales through HoReCa
6. Sales Increase: 2 %
7. Sales Increase: 2 %
2015 Result**
Our goal Strategy Distribution Logistic Summary Appendix
D system changing steps to achieve the goal of doubling sales in Russia by 2015: Timeline
In MSK and SPb by Summer 2012 In big cities by Summer 2014
Change ZERO to DISTRIBUTOR #18
DISTRIBUTOR #1, #5, #22 Review of Distributors
Portfolio. ADD if necessarily
Review of Distributors Portfolio. CHANGE if necessarily
In MSK and SPb GIANT ICE CREAME
In Big cities GIANT ICE CREAME
Development of branded kiosks network
Contract with MAGNIT in South Region
CATEGORIAL MANAGEMENT PROJECTS
ARCTICA: Attack SPb market
SANTA: foothold on SOUTH market
*The Calculations why acquisitions is more profitable – see in Appendix #10 **See Excel Calculations
* Calculation of Transportation coats see in Table or in Appendix #6
Our goal Strategy Distribution Logistic Summary Appendix
Routes Costs (rolling stock), rub.1
Costs (truck), rub.2
Tula-SPb 24114 30150
Tula-Stavropol 44200 52400
Tula-Krasnodar 38000 46500
Tula-Murmansk 66743 71520
Logistics should be structured in terms of effectiveness and low costs:
VS Refrigerated truck Refrigerated rolling stock
*Cost comparison
Criteria of choosing the way of transportation: The Choice:
1. COST of transportation
2. Speed of Delivery
3. Well developed railway system in a region
4. Well developed highways system in the region
Rolling Stock* Truck Rolling Stock Truck
For cross regions transportation
For inter region transportation
The FINAL choice:
* Calculation of Value Share – see Appendix #1.2
Our goal Strategy Distribution Logistic Summary Appendix
Doubling Inmarko Sales in Monetary
Term in Russia
X2 ↑ sales in $ in Russia
means X2.4 ↑ in West*
NEW Distribution Strategy
Need only 1.85 times increase through
NEW Logistic Strategy
Dustribution Strategy: Main Points
OWN retail network development: Kiosks Network ICE CRÈME CAR Project
M&A actions: Acquisition of “Arctica” to attack SPb
Market Acquisition of “Santa” to Foothold the
South Market
100% regions covering: ADD in Portfolio Distributor #22, #
Key Accounts relationship development: Exclusive Contracts Categorical management Projects
HoReCa relationship development: Contracts with StarBucks, Chocoladnitsa,
Cofe House, e.t.c
Inmarko-Unilever
Nestle
Iceberry
Talosto
Russki Holod
0
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3
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5
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8
9
10
0 10 20 30 40 50 60 70 80
Ave
rage
pri
ce (
euro
/kg)
Sales volume (th. tons)
Russian ice-cream market *(sept. 2011 – trend Dec.2015)
32%
Circle size means Value Share of manufacturer 31,67% - forecast Value Share of Inmarko in 2015
Logistic Strategy: Main Points: Usage of Rolling Stocks are preferable in
cross regions transportation
TARGET: increase in sales in value in 2.4 times (Forecast Value Share:32%)
Appendix#1.1. Calculation of necessarily growth in Sales on West of Russia if Total Sales will grow up in 2 times
Structure of sales: 60% west, 40% - east
Growth of east in 2011/2015 – 1.3
Required growth of west (in volume term) – 1.85
Required growth of west (in value term) – 2.4 times
0
10
20
30
40
50
60
2011 2012 2013 2014 2015
Volume, Inmarko (west), th. tons
Volume, Inmarko (European Russia), th tons
Exogenous drivers of growth 2011 2012 2013 2014 2015
Inflation 0 0.044 0.071 0.076 0.08
Average consumption 5.08 5.22 5.22 5.22 5.22
Consumers' share in total population 0.55 0.56 0.57 0.58 0.59
Population 145.3 145 144.7 144.4 144.1
Annual exogenous growth 1 1.090021 1.08787 1.092607 1.096338 1.420432
Total
Growth of the West market 2011 2012 2013 2014 2015 Total
Growth in value 1 1,24 1,24 1,24 1,24 2,40
Growth in volume 1 1,19 1,16 1,16 1,15 1,85
Our goal Strategy Distribution Logistic Summary Appendix #1
2011 2012 2013 2014 2015
Sales in East (Inmarko), bn euro 0,11 0,13 0,14 0,15 0,16
Sales in West (Imarko), bn euro 0,17 0,21 0,27 0,33 0,41
Sales in Russia (Inmarko), bn euro 0,29 0,34 0,40 0,48 0,58
Russian market, bn euro 1,28 1,40 1,53 1,67 1,82
Inmarko share 22,40% 24,28% 26,43% 28,88% 31,67%
Appendix# 1.2. Value Share Evolution: Inmarko
Appendix#2. Sales by regions and channels, dynamics
Share of sales channel (%) 2011 2012 2013 2014 2015
Traditional trade 75% 75% 74% 74% 74%
Key accounts 10% 11% 12% 13% 14%
Modern trade 15% 14% 14% 13% 13%
Volume, Inamrko (europe), th. tons 2011 2012 2013 2014 2015
NWFD (w/o St.Pb.) 3,07 3,66 4,25 4,92 5,67
CFD (w/o Moscow) 16,02 19,10 22,20 25,68 29,59
SFD 2,75 3,28 3,82 4,41 5,09
NCFD 1,86 2,21 2,57 2,97 3,43
St.Petersburg 0,54 0,64 0,75 0,87 1,00
Moscow 3,58 4,26 4,96 5,73 6,61
Our goal Strategy Distribution Logistic Summary Appendix#2
Traditional trade Key accounts
Modern trade
Traditional trade Key accounts
Modern trade
Distribution by channels 2011 Distribution by channels 2011: Increase the Key Account Share
Appendix#3. Capacity sufficiency
The capacity of Tula’s DC is enough
The needs of capacity in North-West and South are covered by Arktika’s and Santa’s warehouses. In case of seasonal peak, the capacity can be freed by reducing the inventory period (through VMI or more sophisticated planning)
2011 2012 2013 2014
Production in Tula (monthly), th. tones 2,68 3,13 3,59 4,08
Average stock level in Tula, th. pallets 10,73 12,54 14,37 16,34
max Capacity of DC in Tula, th. pallets 20 25 30 35
Inventory period DC, Tula, days 30 30 30 30
Inventory period DW, days 30 30 30 30
Capacity requirements, pallets 2011 2012 2013 2014 2015
NWFD (w/o St.Pb.) 920 1 097 1 275 1 475 1 700
CFD (w/o Moscow) 4 806 5 730 6 659 7 703 8 878
SFD 826 949 1 062 1 181 1 306
NCFD 557 640 716 796 880
St.Petersburg 162 187 212 238 266
Moscow 1 073 1 240 1 404 1 576 1 762
Our goal Strategy Distribution Logistic Summary Appendix #3
Nestle Iceberry Russkiy Kholod Talosto Inmarko
Factories Zhukovsky 1 Vologda Barnaul Moscow
St.Petersburg Volkhov Shakhty Moscow
Tula Omsk
Branches Branches in the biggest cities in Russia (St.Petersburg, Moscow, Samara, Nizniy Novgorod, Perm etc.)
Powerful branches in Moscow and Saint-Petersburg
14 branches throughout Russia (Kursk, Vologda, Astrakhan, Moscow etc.)
Branches in such big cities as Moscow, St.Petersburg, Krasnodar, Yekaterinburg, Rostov-on-Donu
9 branches throughout Russia (Moscow, Qazan, Tula etc.)3
Storage facilities Large national or regional warehouses located near clients
Common distribution center
Big distribution center in Moscow and rented storage facilities
Low-temperature warehouses in St.Petersburg, Moscow, Yekaterinburg and Krasnodar
Own warehouses in Tula, Omsk and several rented storage facilities
Fleet Own specialized trucks and rented ones
Own 20 units of refrigeration machines
Own specialized trucks and rented ones
Own big specialized fleet
Own specialized trucks and rented ones
1Company closed factory in Timashevsk in 2011 and transferred equipment to factory in Zhukovsky
Appendix #4. Description of Inmarko and its most strong competitors in all three districts
Our goal Strategy Distribution Logistic Summary Appendix #4
St.Petersburg
Petro-Kholod
St.Petersburg
Khladokombinat #1
Alter-West
Factories St.Petersburg
Essentuki St.Petersburg Troizk
Frankfurt (Germany) Kalisz (Poland)
Branches Well-developed branches throughout Russia from Kaliningrad to Vladivostok
The only branch in St.Petersburg
6 branches in European Russia (Orel, Kaliningrad, Kolomna, Kaluga, Moscow, Troizk)
Storage facilities Big warehouse in St.Petersburg with capacity of 23000 tons of products. There are railway facilities.
4 modern warehouses in St.Petersburg
Well-equipped warehouse in Troizk
Fleet Own specialized trucks Own specialized trucks Own specialized trucks
Appendix #5. Description of local competitors of Inmarko in CFD, NSFD, SFD
Our goal Strategy Distribution Logistic Summary Appendix #5
Appendix #6 Usage of refrigerated rolling stock in several routes
Routes: Tula-St.Petersburg, Tula-Stavropol, Tula-Krasnodar, Tula-Murmansk.
One refrigerated rolling stock can carry 35 tons of ice-cream. According to JSC Refservice (the subsidiary of the Russian Railways) and Tkvsm ltd. (forwarding agency) the transportation of 35 tons of ice-cream costs in average 50 rubles per km.
Thus it is more profitable to use refrigerated rolling stock in those routes than trucks.
NB! It is important to mention that in short routes it is more beneficial for company to use refrigerated trucks in order to decrease time of ice-cream transportation (Ex. Distance between Tula and Moscow is just 194 km.). In some routes (Ex. Tula-Arkhangelsk, Tula-Murmansk) highway is at very poor quality, so refrigerated rolling stock is also more preferable.
Routes Distance, km.
Transportation costs (rolling stock), rub.1
Transportation costs (truck),
rub.2
Tula-St.Petersburg 844 24114 30150
Tula-Stavropol 1547 44200 52400
Tula-Krasnodar 1330 38000 46500
Tula-Murmansk 2336 66743 71520
1,2 Transportation costs were derived from JSC Refservice and Tkvsm ltd. (forwarding agency).
Our goal Strategy Distribution Logistic Summary Appendix #6
Appendix#7. Distribution through HoReCa
• Active usage of partnership with the Academy of hospitality to promote ice-cream in market HoReCa (Ex. lobbying in state structures).
• Exclusive contracts with developing café chains in Russia such as Starbucks.
• Development of own ice-cream café chains Ben & Jerry’s in big cities such as Moscow, St.Petersburg, Sochi etc.
Our goal Strategy Distribution Logistic Summary Appendix #7
Appendix#8. Special Projects
GIANT ICE GREME Project: Special kiosk in Shape of different Ice Crème. • Main Goal: to attract new consumers • Plus such a kiosks can provide higher brand recognition • Also we can use kiosks instead of outdoor Ads • We can make a PR project: competition between students from
architect Universities named “The constriction Best Project of Ice Crème House!”
ICE CRÈME CAR Project
• Special Trucks with Ice Crème in Moscow and Saint-Petersburg: experimental project
• In Summer time their mobility allows us to sell Inmarko Ice Crème not only in Moscow and Spb, but in it’s Suburbs too.
Our goal Strategy Distribution Logistic Summary Appendix #8
Categorical Management Project:
• Project in cooperation with key accounts: merchandising of Ice Crème according to value share of manufacturer
• Pluses for Inmarko: get the maximum place on Shop “Shelf”
• Pluses for Key Accounts: huge growth in sales of all category of Ice Crème
- Factory
- Inmarko’s Warehouse Network - Our Distributors Network
- Key accounts
- HoReCa
- Kiosks
- Ice Cream Lorries
- Sochi 2014
- Long-haul carrying
Our goal Strategy Distribution Logistic Summary Appendix #9
Appendix#9. Target Distribution map with main logistic paths
Appendix#10. Logistics services + own sales network vs. Distributor (ex. NWFD)
Logistics services and use of own sales network
RUR tons places/per day
Sales manager salary 30 000
Tula-St.Pete 30000 50
6500 10 7
Month costs
Sales manager 64 1920000
Operational expences 1920000
Number of big races/month 65 1947977,517
Number of small races/day 14 2110308,977
Cost, RUR (month) 7 898 286
Distributor
Volume, tons 3246,6292
Value, RUR 584031262
% 16,175
Costs, RUR (year) 94467056,6
Costs, RUR (month) 7 872 255
To run the branch is less expensive if there are no more than 65 sales managers * *branches on the basis of Arktika and Santa
Our goal Strategy Distribution Logistic Summary Appendix #10