Accenture Perfect Sales Part of the Accenture Commercial Services for Consumer Goods Business Service
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1 Accenture Perfect Sales Part of the Accenture Commercial Services for Consumer Goods Business Service Winning the War in the Store by Optimizing Field-based Sales Activities
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3 The external environment is changing dramatically for today s consumer packaged goods (CPG) companies, creating many new opportunities and threats that the organization must address. In the commercial arena, organizations need to develop strong and distinctive capabilities that can enable insights to action, drive innovation in marketing and help win the war in the store. For CPG companies, winning the war in the store can be distilled down to the ability to drive consistent execution against a perfect store ideal, and generate new perfect store execution in additional points of sale. They must do so all within a time, talent, and financially constrained environment, and with relevance across different market Archetypes. 1 Based on our industry experience, Accenture understands that poor execution at the point of sale can contribute to lost sales of up to 14 percent. For context, consumers are indicating that their loyalty toward brands is low, and that in-store purchases are still largely based on impulse decisions. To support the need to capitalize on hyper-growth specifically in emerging markets, and to maximize profitability across all markets, CPG companies have three clear objectives: To know what to target consistently and accurately to drive success To have the capabilities to enable the field-based sales activities that support these targets To have the capabilities to measure and optimize their performance in near real time CPG companies must execute well across a number of channel variables that can vary significantly by region and country, including developed markets versus emerging markets, modern trade versus traditional trade and direct versus indirect distribution. They must also measure execution to drive improvements, which has its own challenges, including: A broad-ranging number of outlets, depending on market context Granularity and timeliness of data received in the field, including internal and third party How performance is being measured by people who execute, putting pressure on the veracity and objectivity Blind spots created by geographic constraints linked to headcount and cost models In summary, CPG companies need the ability to develop more perfect points of sale in which their brands are displayed and sold, and they need to develop and apply insights more systematically in support of that goal. Accenture Perfect Sales is part of the Accenture Commercial Services for Consumer Goods business service, and combines distinctive industry capabilities and business consulting with hosted technology, analytics insights and skilled knowledge workers who manage the processes as a service, operating as an extension of our client s organization. Accenture Perfect Sales integrates key sales and merchandising capabilities, enabling CPG companies to achieve up to 30 percent improvement in trade performance at the same cost, and providing a new and objective way of measuring and optimizing sales performance within an operationally excellent service model. Measurement and optimization are at the core of Accenture Perfect Sales. This service offering has a common set of executionbased measures related to the perfect point of sale. It enables better field-based data capture, improving the quality and timeliness of the data. This allows the CPG company and/or its distributors to take immediate corrective actions and unlock the value. 1. Archetype: A grouping of markets that share a common commercial success model and similar characteristics and capabilities that the CPG must understand and respond to in order to win. 3
4 Accenture Perfect Sales helps CPG companies win the war in store by enabling effective sales channels. Core service components include: Accenture CAS software hosted on the Cloud (merchandiser, retail execution, distributor management and sales) Digital image recognition/accenture CAS Digital Merchandising Service Integrated reporting and KPI dashboards Standard optimization capability where analytic insights are delivered as a service Mobile device management Service management Train the trainer Optional service components include: Field Personnel Capability Enablement Talent and capability attribute assessment Learning academy (managed content library) Incentive compensation planning and management Mobile field-force learning apps Device Procurement and Connectivity Multi-device leasing arrangements Level 1 user support through Regional partners Full device warranty and repair/replace 4 User connectivity/telco Telecoms expense management Value-based optimisation services Market archetype segmentation Distributor segmentation Retailer/outlet segmentation Sales channel resource allocation Cross-sell/up-sell recommendations Out of stock predictions Trade space optimisation In-store activity optimisation Data Management, Reporting and Analytics Services (standalone) Supporting distributors and their sales teams Supporting the merchandising field-force operations Outsourcing Services Recruitment process outsourcing Field personnel outsourcing Accenture Perfect Sales is targeting a 30 percent improvement in trade performance that, in turn, can unlock incremental sales for both the manufacturer and distributor. Increase revenue. Clients can optimize key revenue drivers, including availability, visibility, distribution and compliance, while improving forecast accuracy, coverage and influence. Reduce cost of sales. The service optimizes the time spent collecting data in the field, reduces reporting time and sales administration, and reduces working capital requirements. Improve predictability. We enhance forecast accuracy, adopt common sales methods and increase in-store and market understanding through analytic insights. By bundling key sales and merchandising capabilities, analytic insights and hosted technology, and managing them as a service. Leveraging Accenture s investments in industry-leading, proprietary software that we host on the cloud helps CPG companies reduce up-front costs, get started quickly and ramp up sales force capabilities at scale and at pace, without the need to build and deploy the infrastructure. This business services model enables clients to turn on capability with a competitive per-user price point that can reduce with scale. In addition, Accenture Perfect Sales can extend to value-based optional services that involve optimizing different steps within the sales process including coverage planning, cross-sell, up-sell and out-ofstock predictions. Accenture Perfect Sales aims to enable a subset of potential service users as rapidly as possible to drive experience and results within a three-month window. We work with clients to determine a pilot channel scope and work to enable users, track performance and validate benefits such that the service can be scaled with confidence at the end of the pilot period. A global leader in consumer goods consulting, Accenture brings decades of experience, research and thought leadership to give clients an advantage when executing sales. These are just some of the ways how: World-class consultants. For decades, Accenture has been a leader in assisting FORTUNE Global 100 clients with sales strategy, planning and execution. In addition to a robust knowledge base in our dedicated CPG and retail groups, our talented team members bring real-world sales and marketing experience. Accenture works directly with the client s team to assist in judgment-based decision-making and ensure the client is continually gaining the maximum benefit from the service. Accenture can also provide strategic management and organizational effectiveness coaching to help CPG manufacturers achieve optimum sales performance. Leading software. Accenture owns and develops software targeted for the CPG sector. Our industry-leading Accenture CAS retail execution and merchandising software automates processes and provides performance visibility with a lower cost of entry. By providing the hardware and hosting the technology as a comprehensive service, CPG companies can reduce their up-front investment and risk with a peruser charge.
5 A new service offering from the Accenture Commercial Services for Consumer Goods business service that enables CPG companies to achieve a 30% improvement in trade performance at the same cost, providing a new and objective way of measuring and optimizing fieldbased sales activities. The Challenge Growth for the CPG company is dependent on: An ability to drive more perfect store execution in additional points of sale The consistent execution against a perfect store ideal All within a time, talent and financially constrained environment and applicable across all market types and routes to market Retail Execution Merchandiser Optimize Plan & Target Promotion: Are prices and merchandising activities being performed? What is Accenture Perfect Price: Is the Sales? consumer price in line with the expected price positioning? Path to More Perfect Sales Pack: Is the right pack getting delivered to the store? Product: Are the right products in the store? Proposition: Are the right brand messages being delivered? Measure Place: Are products available and positioned in the right place? Execute Archetype 1 Archetype 2... Archetype N Distributor Sales Distributor What does Accenture Perfect Sales consist of? Accenture Perfect Sales helps CPG companies win the war in store via the enablement of effective sales channels as-a-service: Core service components Optional service components Accenture CAS software hosted in the cloud (merchandiser, retail execution, distributor management and sales) Digital image recognition/accenture CAS Digital Merchandising Service Integrated reporting and KPI dashboards Standard optimization capability Mobile device management Service management Train the trainer Device provisioning and hardware management Value-based optimization services Field personnel outsourcing Field personnel capability enablement Increased revenue Optimized store performance Increase in target coverage, distribution and visibility Reduction in out-of-stocks What Reduced cost of sales value does Reduced working capital Accenture requirements Perfect Sales Data collection time reduction deliver? Reporting time reduction Reduced sales administration Improved predictability Improved forecast accuracy Increased use of common sales methods Increased in-store market understanding 30% improvement in trade performance Accenture Perfect Sales Benefits: Reduce field sales administration by as much as 20-30% Increase in points of SKU distribution by up to 12% Reduce out-of-stocks by as much as 10% Improve SKU availability by as much as 5-10% Reduce retrospective discounts by up to 10% 5
6 Innovation. Accenture has a long-standing legacy of developing services that transform an industry and become the gold standard. For example, Accenture s Navitaire service has transformed the business of network airlines by helping more than 85 airlines around the world to grow, innovate and increase their profitability by focusing on revenue generation and streamlining costs in the areas of reservations, ancillary sales, distribution, planning, revenue management, revenue accounting, business intelligence and operations management and recovery with hosted services from world-class data centers. We have deep experience and a proven track record in all components of Accenture Perfect Sales, including industry-specific sales processes and analytics, underpinned by scalable delivery capabilities and broad geographic coverage. Because our industry and functional consulting capabilities are tightly connected to our technology expertise and delivery teams, we are well positioned to deliver the complete oversight of a comprehensive business service. Accenture Perfect Sales is the answer to make the CPG sales force more agile, efficient and effective, helping clients improve efficiency and drive growth in the competitive years ahead. In developing the Accenture Perfect Sales service we have understood that there is no one size fits all model, and not every market requires the most advanced, customised capabilities in order to succeed: High performers need to define the Commercial Success Model required to win in each market or market-type, typically through evaluating Capability, Channel and KPIs It is necessary to understand where groups of markets share the same commercial success model by identifying key market Archetypes that share similar capabilities required to win, not geographical proximity In this example for Consumer Goods, markets have been grouped according to their attractiveness (size and growth) and the complexity inherent in their route to market structure and general maturity/stability Leaving a picture where similar markets are not always geographically contiguous Accenture continues to invest in maintaining and extending its Archetype knowledge base that can be used by our clients to support the development of new front-office capability strategies. For more information on Accenture Perfect Sales, contact: Koen van Bockstaele koen.van.bockstaele@accenture.com Philip D. Gardner philip.d.gardner@accenture.com Archetype 2 Archetype 1 Archetype 4 Archetype 6 Archetype 3 Archetype 2 Archetype 5 Archetype 1 6
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8 Our Consumer Goods industry professionals around the world work with companies in the food, beverages, agribusiness, home and personal care, consumer health, fashion and luxury, and tobacco segments. With decades of experience working with the world s most successful companies, we help clients manage scale and complexity, transform global operating models to effectively serve emerging and mature markets, and drive growth through evolving market conditions. We provide business services as well as individual consulting, technology and outsourcing projects in Commercial Services, Supply Chain Management, ERP Global Operations and Integrated Business Services. To read our proprietary industry research and insights, visit ConsumerGoods. Accenture is a global management consulting, technology services and outsourcing company, with 257,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$27.9 billion for the fiscal year ended Aug. 31, Its home page is Copyright 2012 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
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