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Tous droits réservés ECR France 1 E France Efficient Consumer Response C R

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E. R. C. France. Efficient Consumer Response. ECR LEARNING PROGRAM. Status, Experience, Evaluation March 18th, 2005. ECR LEARNING PROGRAM. A project about alignment and implementation. Carrefour Cora. Bel Bongrain Coca Cola Colgate-Palmolive Lesieur Nestlé Procter & Gamble. - PowerPoint PPT Presentation

Transcript of France

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EE FranceFrance

Efficient Consumer ResponseEfficient Consumer ResponseCCRR

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ECR LEARNING PROGRAM

Status, Experience, Evaluation

March 18th, 2005

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ECR LEARNING PROGRAM

A project about alignment and implementation

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ECR LEARNING PROGRAM

Are involved in the Pilot tests

• Carrefour

• Cora

• Bel• Bongrain• Coca Cola• Colgate-Palmolive• Lesieur• Nestlé• Procter & Gamble

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ECR LEARNING PROGRAM

• ECR France approach

• 6 steps methodology

• Carrefour Colgate-Palmolive pilot

• Some feed back from all the pilots

AGENDA

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Book of best practices

Pilots validation(& implementation)

4 to 6 pilots

Learning together and implementing

Work group =Best Practice elaboration

About 25 companies

Researc

h &

develo

pm

en

tD

issem

i

nati

on

94 ECR member companies

ECR France approach : training as lever to implement Best Practices

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The know-how : the practice Implementation with partners

Behaviour : long lastingBehaviour change Implementation

within the company

To know : the knowledgeLearning

together

ECR France approach

Training units (virtual or face-to-face partnership class) one customer and some suppliers having decided to implement together

From Best Practice knowledge to implementation

The training is based on 3 learning steps

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The 6 steps of the ECR processFrom « learning together » to « working differently

in an ongoing process »

Learn

ing

tog

eth

er

Work

ing

diff

ere

ntl

y

11

22

33

44

Signature of the partner charter

Constitution of the “partner group”Choice of process of dissemination

Learning the best practice by the partner class

Implementation of the best practice within each partner company

Certification of the partner group

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66Best practice for propagationwith other partner companies

Best practice for dissemination within each partner company

Perp

etu

ati

ng

th

e

ch

an

ge

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Step 1 : creation of 2 partner groupsL

earn

ing

to

get

her

What does this mean

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The sponsor signsSignature of the partner charter

Partner groupBP on Optimisation of Promotions

BelCoca Cola

Colgate PalmoliveCora

Lesieur

Partner groupBP on New product launches

BongrainCarrefour

Colgate PalmoliveNestlé

Procter & Gamble

Designation of aguardian

within each partnercompany

« Partner group »Creation

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ExampleNew Product launch

Best Practice applied by Partners Group

Carrefour & Colgate-Palmolive

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Shared project for implementation

• Study of 2 new products launches 2 products at different phases of their development. Palmolive Shea butter shower gel– Actibrush battery toothbrush

• Working Methodology– Working group within each Company.– Common Working group Carrefour-Colgate– Coaching points

• Retroplanning : – September 6th : launch kick off and formal training– 6 meetings Colgate-Carrefour : study of the 2 launches of which 2 with coaching (IMPP, Serge Cogitore)

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LAUNCH PERIMETER

Conception

Phases 1 et 2

From concept to From concept to productproduct

DEVELOPMENTDEVELOPMENT

Evaluation

Phase 5

Operational

Launch

Phase 4

Preparation

Phase 3

From product to consumerFrom product to consumer

INTRODUCTIONINTRODUCTION

Perpetuation

Phases 6 et 7

From consumer to From consumer to loyal consumerloyal consumer

CONSOLIDATIONCONSOLIDATION

Internal Internal companycompany

Internal Internal Cy scopeCy scope

Joint Joint scopescope

JointJointscopescope

JointJointscopescope

Launch Launch

Enlarged Enlarged perimeterperimeter

JJ – x months J + x months

Joint perimeterJoint perimeterEnlargedEnlargedperimeterperimeter

Palmolive Karité shower

(launch : June 14th, 2004)Electric toothbrush Colgate Actibrush

(launch : November 15th, 2004)

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AGREED KEY KPI’s

• Sales figures • Category market shares

• Average week sales

• Facings

• Products noted as « missing » for logistics

• Inventory level

• Numerical distribution

• Penetration rate

• Repurchase rate

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Knowledge & Results vs KPI

KARITE SHOWER GEL STUDY – POST LAUNCH PHASES

• ND : 92% in 3 weeks vs ND maximum in 3 months

• Weekly average sales : target reached

• Inventory level : respect of objectives (< 13 days)

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Record DN growth in Carrefour !

Source Nielsen – Panel Distributeur

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KEY LEARNINGS

Positive points

• Formalization of a process already used

• Improvement of communication inter and intra company

• Transmission of shared information to Carrefour stores and to the Colgate sales team

• Proof of the efficacy of the banner’s tools

Difficulties

• Lack of alignment between Carrefour promo process and Colgate production process

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Implications / Improvementsfor the future

• Implementation of a retro-planning to be used for each product launch

• Share with the manufacturer a table to follow the main KPIs

• Process :– Knowledge of the industrial processes– Share the retro plannings of Carrefour with manufacturers– Align the process between Carrefour / manufacturers.

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What remains to be done ?

• Individually (Step 4)

– Pursue the implentation accordingly to the ECR best practice

– Complete certification report

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Step 4: detailSignature of the partner charter

Creation « partner group »11

22

33

Certification of the group 44 A written report of implementationValidated by the

Guardians and presentedto the Jury

(ECR France + IMPP)

Certification of thelearners

Lea

rnin

g t

og

eth

er

Learning the Best PracticeBy the partner group

Implementation of the Best Practice In binomial

What does this mean

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What remains to be done

• As a company (Step 5)

– Implementation the workshop on process alignment

– Prepare tranining for dissemination whithin the CY

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Step 5 : detailSignature partner charter

Creation « partner group »

Certification of the group

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22

33

44

Wo

rkin

g d

iffe

ren

tly

Lea

rnin

g t

og

eth

er

Learning the Best Practiceby the partner group

Implementation the Best Practice In pairs

This means

55Dissemination of the Best Practice

Within the Company

Additional training If necessary within each partner group

+Process integration workshop of

the BP process

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Main feed back

• The 8 pilots’ participants have expressed their deep interest in the project:

- Learning about each other processes

- Discovering importance of complete communication and retro plannings

- Appreciating quick positive results on both parties

- Willing to go ahead with the methodology

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Participants’ Verbatims

- « In the future we should better share each one internal processus knowledge, both for a better adaptation , and to be more efficient »

- « We must in the future better integrate in our general planning , each own lead time »

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Participants’ Verbatims

-« Sharing a common methodology allows to be more effective in sharing at the right time the main points »

-« Stores’ implication upstream has permitted exceptionnal dramatizations »

-« For the first time we have involved all the concerned functions of the specific operation, this has had as effect a greater involvement of everyone on his own commitments which became more bound up »

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Participants’ Verbatims

• But also :

- « We observed on both sides, that cultural mindset is still hesitant for a total transparency, and that we will have to overpass this difficulty to spread out this best practise implementation »

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ECR SUMMARY

• Good alignment between ECR Europe and ECR France

• Common training drives better business results

• Top management support critical (partner charter)

• Next step is to perpetuate behaviour change– Dissemination within the companies– Roll-out to other partners.

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THANK YOU

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BACK UP

Wording of the ECR Summary

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ECR SUMMARY

• A collective & paired ambition which is not limited to acquiring common knowledge

• The current practice gives business results• The experience shows that the signature of the

charter is an indispensable pre-requisite for the implementation

• From the beginning the identification of the learners is a guarantee of efficiency– On the 73 learners of step 2, 18 are no longer

registered in the project team and 19 have appeared • The partner charter, the nominative CD Rom and the

certification are absolutely necessary for follow up and control quality of the learning and also for the business model

• The next step is to perpetuate behaviour change and appropriation– Dissemination within the company– Dissemination to other partners.

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BACK UP

Cora – Colgate-Palmolive Pilot

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ExamplePromotion Optimisation

Best Practice applied by Partners Group

CORA & Colgate-Palmolive

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Teams

• Supplier’s team

Project Leader : – Raphaël Moreau (Category

Marketing Manager)

Team Members :– Carol Raynaud De Lage

(Sales Forecast manager )– Philippe Vasseur (Customer

Service Grouper)– Etienne Plauche Gillon

(Category manager Provera)

– Olivier Roussel ( Key Account manager Provera)

• Distributor’s team

Project Leader : – Antony HEMMER ( Oral Care

Marketing manager)Équipiers :– M Deroff (Cora Logistic

manager)– Melle Pasquier ( Sourcing

manager)– M Choley (Personnal Care

products coordinator )– Mme Soucy (Personnal Care

buyer)– M Jaeger (Advertising

manager)

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Shared Project : 2005 « Beauty Operation » on Oral Care

Our Objectives :

1. Optimise 2005 turnover vs 2004 (lower potential due to whitening kits)

2. Increase Total Oral Care consumption (toothpastes & toothbrushes) by recruting new consumers and bringing added value.

3. Create an « Event »: Improve the « Beauty Operation » image in Cora by dramatization.

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Process steps:• Sept-04

– Joint definition of the project (2005 Beauty Operation)– Fixing the schedule

• October 12 meeting– Cora & Colgate Objectives definition– Comparison of Cora & Colgate specific timings– Performance analysis of previous « Beauty Operation » – Présentation of Cora’s Folder Constitutive Elements (FCE)

• October 18 meeting– Colgate’s recommandation on FCE for Cora 2005 Beauty

Operation. • November 16 meeting

– Colgate products proposition according to the FCE jointly defined. • Décember meeting

– Products selected by Cora– Test on Oral Care kit making (co-packing, transport,…)

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Process Steps (Ctd)

• January 05– Communication to Cora’s store department managers and

Colgate sales team on the ECR project.– Pre-orders from the stores on the dental kit for production

planning forecast purpose.

• February 05– Colgate sales team appointments in the stores.– Firm orders from Cora’s stores.– Colgate’s production start.

• Next steps :– March 2005 : joint work on Folder dramatization.– April 2005 : deliveries on Cora’s warehouses.– May 2005 : Operation implementation in stores.– June 2005 : Operation evaluation (scorecard)

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1. Turnover Optimization (joint definition of FCE)

• Promote market segments – On the wider possible consumer demand segment (ex: « family » toothpastes)– On the growing faster segments (ex : Toothbrushes in packs and the more

technical toothbrushes)• Invest on the most efficient promo formats (ex: Toothpaste by 2

or by 3)

ECR Action= Redefine Folder Constitutive Elements

1 MEASURECora's suggestion : why not

measures in promotion ?

1 MANUAL AND 1 TECHNICAL TOOTHBRUSH

1 NEWNESS

1 CHILD TOOTHPASTE

1 CHILD TOOTHBRUSH

1 WHITENING KIT

1 FAMILY TUBE( ex : CP, Signal...)

1 THERAPEUTIC TUBE (ex: Vademecum...)

1 ELECTRIC TOOTHBRUSH(only FCE on the year to

maintain or not ?)

TOOTHBRUSH SET

1 CLASSICAL TOOTHBRUSH

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2. Dévelop consumption• Create value by developping the less used segments :

– Toothbrushes : encourage renewal => Multiple purchases + impulse– Children : train for daily brushing gestures => purchase of a

toothpaste AND a toothbrush.

• Push forward innovations

ECR Action= Set up trade concept

1 toothpaste+ 1 toothbrush for child =

Win a Looney tubes DVD

Toothbrushes: buy 2 get 1 free2

Nouveautés 2005

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3. Create an Event

• Store dramatization :– Improve identification: create

universes (Ex: dental universe)– Harmonise communication « between

universe »– Expose and explain innovations

Action ECR = Oral Care kit creation

• Store delivered pallet KIT of 2 displays + Products+ 4 M² of red carpet(to set up directly in the main

aisle)

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Key KPI’s

Following KPI’s have been selected :

• Y vs Y-1 sales figures• Implementation rate of End of aisle display.• Cannibalisation on standard• Repurchase rate• Out of stock rate• Time for disposing the remaining stock• Quantities ordered vs quantities produced• Quantities delivered vs quantities ordered• Customer Service rate