快消行业发展分析报告-Bain贝恩咨询 PPT课件

ChinaFMCGindustryRTMandWSdevelopmentpractice,Bainpresentation(draft)November2013,Summaryofkeymessages(1/2),FMCGcompaniesfaceaseriesofchallengesinselectingandmanagingRTMmodelswhentheypursuegrowthinChinaSheersizeofopportunity(universeofoutlets)ManagingpricingisparticularlydifficultinChina,becauseChineseshoppersare“repertoire”andbecauseofcomplexityofmarkets/channelsNeedtobalanceexecutioneffectiveness,andcosttoservewithincreasingreachMostsuccessfulFMCGcompaniesinChinaneedtobegoodatmanagingmultipleRTMmodelsatthesametimeasasustainablecompetitiveadvantage.ThereisnoonesizefitsallapproachDirectselling(controlledmodel):CorestrengthofsomeMNCs(includingKO)fororganizedandevenfragmentedtradebutChineseFMCGplayersincreasinglyadeptatthismodelIndirectselling:commonlyutilizedbyChineseFMCGplayersgivenspeed,reachandlowercostbutmanymodelswithvaryingrolesandlevelsofcontrolThemostsuccessfulMNCandChineseFMCGstailordirectandindirectsellingmodelstodifferentmarketandchannel/customerpriorities,withstronginternalcapabilitiesandsystemstomanageconflictsbetweenmodels,3_85,1,2,3,Summaryofkeymessages(2/2),Managinghybridmodels(combinationofdirectsellingandindirectselling)isadynamicprocess.SuccessfulFMCGscontinuouslyevolvetheirmodelsalongwithdifferentstagesofdevelopmentAdapttomarketdynamicse.g.urbanization,industryconsolidation,channelmixevolutionOptimizecostswithincreaseinscaleandinternalcapabilities,withoutsacrificingcontrolManyFMCGsinvestinbuildingdedicatedinternalcapabilitiesandsystemsforeachmodel.Forindirectselling:wholesalermanagementcapabilitiesandsystemscriticalbutsoarenetworkofscaled,capableandloyalWSManagementtoolsanddetailedplaybookstomanagepricingtransparency,marginpool,transshipment,optimizecosttoserveetc.WSrepsdedicatedtorecruiting,settingtargets,incentives,upgrading/trainingW/S,increasingloyaltyandoccasionallyrestructuringFullyintegratedwithsalessystemsFormanyFMCGcompanies,thereisalargesizeoftheprizefromsuccessfullymanagingthecomplementaryindirectsellingmodel,3_85,5,6,4,Agenda,11_89,ManagingmultipleRTMmodelsinChinaKeysuccessfactorsformanagingindirectsellingmodelsinChinaSomeimplicationsforKO,FMCGcompaniesinChinafaceaseriesofchallengesinselectingandmanagingRTMmodels,Sheersizeofopportunity,universeofoutletsComplexityofmanagingdifferentmarketsandchannelsDifferentdropsizeandeconomicsManagingpricingisparticularlydifficultinChinaConstantlyevolvingmarketandcompetitivedynamicsLargeandfragmentednetworkofdistributors/wholesalerstomanage;sizeAnalystreports;Literaturesearch,WantWantRTMdevelopment,2,67_8576_85,90s,QuicklyexpandedacrossChinathroughindirectsalesanddistributionmodelforgeneraltrade(sameRTMforsnackfoodonlymanagetier1DTs25salesofficesinChinaVerylimitedsalesrep.#,onlyresponsibleforcollectingmoneyfromtier1distributors,00,12,05,Growthconstrainedbyvaryingqualityofwholesalersandrelativelyweakinternalsalescapabilities,06,10,BuiltupdirectsalesmodelandinternalcapabilitiesExpertInterviews;LiteratureSearches,41_85129_846_84,2,MainlysellthroughW/Smarkets25salesofficeinChinaVerylimitedWantWantownsalespeopleOnlyresponsibletocollectmoneyfromT1DTsNovisibilityonT2DTsorbelow,WantWant,T1Distributors,T2DT/WS,IndirectsellingExpertInterviews;LiteratureSearches,64_8568_8583_8487_84122_84,2,GlobalandnationalKAretailers,WantWant,KAsales,T1Distributors,“HeWant”sales,T2DT/WS,DirectsellingExpertInterviews;LiteratureSearches,40_8541_8517_8418_8458_8579_84,2,Global/nationalIndirectdistribution,Indirectsellingpurelytransactional,Basic2partycontract,subjecttorenewaleachyear,Markup+rebatesonvol.target,Markup+rebatesonvol.targetLiteraturesearches,SystematicallymanageW/Sperformance,withgreatersupportofgoodperforming,scaledW/S,ClearW/SsegmentationcriteriabasedonperformanceTransparenttoalltheW/SthroughdedicatedW/SwebsiteCriteriaincl.marketsharewithintheterritory,volume/revenuetarget,in-storeexecution,etc.Systematicprocessoftargetsetting,tracking&evaluationAtnational,regionalandlocallevelTieincentives(bonus,rebatesorupgrading)withtheperformancerating,“Wereviewthewholesalerperformancedatabaseeachyeartoratethemandrewardthemaccordingly.Thenextyearweengagemorewiththehighperformers.Theobjectiveistoconvertthemintoourdistributionpartners.”Chairman&CEO,WantWantChinaHoldings,Specialfinancingsupport,trainings,talentdevelopforhighperformanceW/SDedicatedwebsitetointeractwithwholesalers,“In2013,wewillcontinueprovidingvalueadditionservicestowholesalersthatcontributehighrevenuetoourbusinesstoincreasetheirloyalty.”Chairman&CEO,WantWantChinaHoldings,4_8414_8916_85,Example2:anddevelopedtoolsfordirectsalesforcethatarealsobeingtransferredtoW/S,5,Dailysalesreportcard,Morningbriefingschedule,Keyfeatures,Visualrepre-sentation,Source:“HeWant”ProjectTrainingMaterials,DatarequirementperoutletissimpleandnotexcessiveRequirementsinclude:#ofSKUson-shelf,#ofSKUsreceivedbytheoutletthatday,#ofpreviouslyun-introducedSKUsreceivedbytheoutletthatday,valueofnewsalesorder,Planneddown-to-the-minuteReport-outsonpreviousdayshighlightsEmphasisonthebroaderteamandcompany,notontheindividualthroughrecitationofcompanyvaluesandgroupexercisesAlotsingingandslogans,11_8512_8514_84,Preliminary,Developbusinesspartnertoreachfullpotential,Terminateormanage“downside”,Investtodevelopthecapability,Example3:SnackFoodCo.usespre-agreedcriteriaandtoolstoassessandupgrade/restructureDTs,Source:Bainexperience,High,Low,Low,Top10wholesaler,ContributionandcommitmenttoSnackfoodco.,Capabilityandpotential,Financialstrength(25%)Logisticscapabilities(25%)Warehousefacilities(25%)Distributioncoverage(10%)Systemcompatibility(5%)Servicinglevels,etc.(10%),Sales(40%)Historicalsalesgrowth(20%)Est.Snackfoodco.shareofwallet(20%)Yearsofcooperationandexclusivity(20%),33_84,5,Engage,High,Source:Bainexperience,Terminateormanage“downside”,Engage,Developbusinesspartnertoreachfullpotential,Investtodevelopthecapability,Best-in-classlogisticproviderin4keyandT1citiesPotentiallyexpandintosurroundingT2/3citiesandprovidein-storeservicing,ProvidegooddeliveryserviceinT1and2/3cities,Best-in-classlogisticsproviderin4keyandT1citiesPotentiallyexpandintoT2/3citiesandprovidein-storeservicing,Providebasiclogisticsandin-storeservicingintailT2/3cities,Expectedroles:,Dev&support:,Moreflexiblecredittermsorfavorablefinancialtreatmentbasedoninputcriteria*E.g.fundingofinvestmentonwarehouse,trucks,etc.DevelophighlycustomizedjointbusinessplanEnhancestrategicrelationshipandalignmentEnsureeffectiveinfosharing,TailoredtrainingandinvestmenttoimprovecapabilitiesE.g.ARcollection,deliveryrouteoptimizationCloselymonitorandensureeffectiveinfosharing,Motivatebusinessgrowthwithmoreflexiblecredittermsorfavorablefinancialtreatment*EngageW/Sthroughtop-to-topmeetings,strategicalignment,etc.ProvidemorefavorabletermstostrengthenpartnershipE.g.largergeoallocationcoveredbyW/Sownbranchoffices,DevelopdetaileddevelopmentplanandcloselymonitorperformanceLookforpotentialsubstitutesorconsolidatebylargewholesalersifitfailstomeetcriteria,1448979_84,Example3:withclearrolesandsalestargetsforeachgroupofDTs,5,Agenda,11_89,ManagingmultipleRTMmodelsinChinaKeysuccessfactorsformanagingindirectsellingmodelsinChinaSomeimplicationsforKO,Recap:6keymessages,FMCGcompaniesfaceaseriesofchallengesinselectingandmanagingRTMmodelswhentheypursuegrowthinChinaMostsuccessfulFMCGcompaniesinChinaneedtobegoodatmanagingmultipleRTMmodelsatthesametimeasasustainablecompetitiveadvantage.ThereisnoonesizefitsallapproachThemostsuccessfulMNCandChineseFMCGstailordirectandindirectsellingmodelstodifferentmarketandchannel/customerpriorities,withstronginternalcapabilitiesandsystemstomanageconflictsbetweenmodelsManaginghybridmodels(combinationofdirectsellingandindirectselling)isadynamicproce