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12009NEGOTIATION
Prepare,LeadandFollow-upnegotiations
2009MASSMARGIN%X=SALESContractSIMPLEEQUATIONCheckoutCashierTG,CoolersDisplayMainpromotiondisplaySecondarydisplay
TG+TGPodiumPromotionTableOn-shelfpromotion
MinistandAutowalkSidekickPillarCrossMerchandisingOnly%FixFixor%FEESTRANSFERFORALLSUPPLIERSPROFITABLEGROWTHPARTNERSHIPSALESFOCUSOFFENSIVE4
PriorityonsalesandCMMarginvalueincrease
2009ambitiousinvestmentsplanwillacceleratesalesgrowth
AcceleratedSalesGrowthwillbringadditionnalMassofMargin
Simplificationofnationalcontractisrequired
Focuson%rebatesisrequired
Negotiationstrategymustbeadaptedtosuppliercluster
Goodpreparationiskeyforsuccess
ThepreparationofnegotiationwillbringmoreprofessionalisminourdemandTheapplicationoftrainingwillallowustobetteranticipatethesuppliersreactionsIntro:Keypointsofthe2009negotiationprojectPowerisnotrevealedbystrikinghardoroften,butbystrikingtrue5IdentificationofSupplierClusterProfitabilitySalesSharePARTNERSHIPPROFITABLEGROWTHFOCUSONSALESGROWTH
OFFENSIVEBMNEGOIdentificationofSupplierClusterTOP10–LIAONING-SUNDRY7SupplierrelationsStrategyJBP:“WinWin”:SalesandMassTargetAllinitiativesfocusedonsales(VIPItems,specificpromotionmechanism,shortagesfollow-up,etc.)TraditionalNegoforimprovementof“BackMargin”2009Negoapproach/JBPispossiblePROFITABLEGROWTHPARTNERSHIPSALESFOCUSOFFENSIVE.8NEGOCLUSTER1TGFEESTRANSFER+IMPROVEMENTOFBMPRIORTOANYSALESDEVELOPMENTDISCUSSIONSBASICOFFENSIVENEGOPayfirst,growsalesafterPROFITABLEGROWTHPARTNERSHIPSALESFOCUSOFFENSIVE9NEGOCLUSTER2MarketshareCarrefoursupportNegotiationSupplierBookNegotiatinglevers:TGFEESTRANSFERIN%InformationisPowerPROFITABLEGROWTHPARTNERSHIPSALESFOCUSOFFENSIVELevelofprofitabilityDeliveryServicesCOMPETITIONbetweenSUPPLIERS10NEGOCLUSTER3TGFEESTRANSFER+IMPROVEMENTOFCAT.PROFITABILITYMIXPriorityonSALESgrowthPROFITABLEGROWTHPARTNERSHIPSALESFOCUSOFFENSIVE11NEGOCLUSTER4STILLNEGOBUTLESSTIMEINNEGO,MOREONSALESFOCUSFOCUSONSALESANDMASSMARGINAPPROACH100(CMoflastyear)SalesGrowthFEESSYSTEMNoimpactofsalesformoreCMValueCMValue=120100(LY)MASSMARGINAPPROACHCMValuecomingfromadd.salesNEGOIN%NEEDFORMORESALESTOGETMOREMASSMARGINFocusonFEESNEGONEGO%%StillNegobutin%SalesGrowth3020CMValue=130PROFITABLEGROWTHPARTNERSHIPSALESFOCUSOFFENSIVE12VALIDATIONOF2008LANDING1stMeeting13Objective:Identifythebasisof2009NegotiationValidationof2008Landing:clearbasefor2009Nego25’’2008PurchasesLandingforecastsAppending/TGFeeslanding(thesupplierspeakfirst)2009Developmentplanofsupplier:listentosupplier25’’Marketevolution,trend,Marketshareobjectives,innovationstocomeetcBusinessplanexpectedwithCarrefour:assortment,DM,Purchasepricesevol.,etc……2009Salesandpurchasesforecast?Expectation2009CarrefourStrategy10’’ReminderofTotalMASSmarginapproach,FeestransferExpansionplanconfirmationRealNegowillstartduringfollowingmeetingtheweekafter142009CONTRACTREQUEST2ndMeeting15Objective:ClearRequestwithjustificationSuppliermakesitsfirstproposal30’’CRFraisesandexplainitsrequestfor2009business30’’ReminderofCarrefourServicesexcellence2009Purchasesforecasts,bigpictureofpotentialbusinessplan2009Operatingcostsincrease/NootherchoicethanincreaseofUnc.RBReminderofTotalMASSmarginapproach,FeestransferPointsagreedandtobefurthernegotiated30’’16TypicalprogressionofanegotiationwithasupplierLanding08validation+Supplier2009BusinessplanorientationWeek1:Meeting1TermsproposalsfromsupplierAndCRFCounter-argumentofthesupplierW3––M3OutputIntensificationofthepositionofCarrefourbynewcalculatedargumentsLevelofTG%transferedmustbevalidatedatthisstageThesupplierhastoredefineapropositionLeadthenegotiationsW2––M2SupplierrevisedpropositionW4––M4OutputContractshouldbeconcludedatthisstageSigningthecontractORNegativescenario3417SupplierFinalproposalW6––M5OutputPresentationoftheFINALpropositionofthesupplierContractconclusionORImplicationofTopManagementTheSupplierleaveswithafinalcompromiseproposalOrT2TMeetingT2TMeetiingW7––M6OutputConclusionoftheagreement(contract)ORSAP/NOCNYplanificationSigningthecontractORSAPTypicalprogressionofanegotiationwithasupplierLeadthenegotiations18Conductingnegotiations:KeysucessfactorsPREPARATIONBeingadequatelyprepared:-Havingmaximalknowledgeofthesupplier-CommunicatingcoherentlythekeypointsofafiletothesupplierMasteringCarrefourdifferentlevers-Preparingalternativescenarios(positive/negative)-Preparingastrategywithsomecompromise-Useefficientlythetimebynotwaitingtoolongforsupplieranswers-PlanningthenextmeetingattheendofpreviousoneCOMMUNICATIONShowstrongdeterminationandnoroomforhesitationShowconfidenceinCarrefourstrategyActinginagentle,patientandsmoothmannerbutwithdeterminationHaveclearideaswhenpresentedtosupplierGoodListeningtotheotherparty(willgivenewnegoideas)Askingquestions:learningaboutthesupplier19NEGOTIATIONSHEETUPDATEDGUARANTEEDNONG.20THENETNETPURCHASEAPPROACH21PriceIncreaseRenegotiation10%BM9%BMWHICHRETAILERISMOREPROFITABLEFORP&G?22PriceIncreaseRenegotiation10%BM9%BMWHICHRETAILERISMOREPROFITABLEFORP&G?NPP=10NPP=923PriceIncreaseRenegotiation10%BM9.00RMB8.19RMBNETNPPNETNPP9%BMMarginvalue=1.0Marginvalue=0.81MoreprofitforP&GNPP=10NPP=924PriceIncreaseRenegotiationIMPACTOFPRICEINCREASEONOURPROFITABILITY10%BMPriceIncrease:+10%NPP=10NewNPP=1111%BM=+1ptMarginvalue=1.0Marginvalue=1.21WHOGETSMOREVALUEFROMPRICEINCREASE?25PriceIncreaseRenegotiationIMPACTOFPRICEINCREASEONOURPROFITABILITY10%BM9.00RMBPriceIncrease:+10%NPP=10NewNPP=11NETNPP11%Marginvalue=1.0Marginvalue=1.21BM=+1pt26PriceIncreaseRenegotiationIMPACTOFPRICEINCREASEONOURPROFITABILITY10%BM9.00RMBPriceIncrease:+10%NPP=10NewNPP=119.79RMBNETNPPNewNETNPPREALVALUESHARING11%0.210.79CarrefourSupplierMarginvalue=1.0Marginvalue=1.21BM=+1pt27PriceIncreaseRenegotiationWITHAFAIRSHAREof50%OFVALUEC
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