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MARkETING OPERATIONS DNA provides the base information required to become excellent in marketing operations.

TRANSPARENCYMATURITYPRIORITYIMPROVEMENTALIGNMENT

3

TRANSPARENCYMATURITYPRIORITYIMPROVEMENTALIGNMENT

MO:DNA

MARkETING OPERATIONS DNAprovides the basic information required to become excellent in marketing operations.

Disclaimer: We use reasonable efforts to ensure that accurate information is provided in this report, but do not guarantee such accuracy, and make no representations regarding the use or results of use of any content on this report in terms of its accuracy, reliability or any other matter. All information provided in MARkETING OPERATIONS DNA is intended solely for general information purposes and we cannot take responsibility for the results or consequences of any attempt by you to use or adapt any of the information in MARkETING OPERATIONS DNA, including, without limitation, any financial analysis, savings or investment summary, labor savings, production increases, scrap reduction savings, annual profit increases or other miscellaneous savings.Our organization, nor any of its sponsors, individual contributors or system

operators, nor anyone who helped develop, create, produce or deliver the content in this MARkETING OPERATIONS DNA, is liable for any damages related to your use of or inability to use this report, including, without limitation, indirect, incidental, special or consequential damages.

This report is delivered subject to the condition that it shall not, by the way of trade or otherwise, resold, hired out, or otherwise circulated without the publisher’s prior consent in any form of binding or cover other than that in which it is published and without a similar condition, including this condition, being imposed on the subsequent client.

Published in the Netherlands in 2012 by MRMLOGIQ B.V.Edition Evans Electronics 2012 04 Copyright © 2012 by MRMLOGIQ B.V. All rights reserved.

For more information contact: MRMLOGIQ B.V., Amsterdam, The NetherlandsAuthors: Romek Jansen & Frans RiemersmaPrinted and bound in The NetherlandsVersion: MO:DNA 2 - MQ Evans Electronics

MAkING MARkETING COUNT

MATURITY 38 - 47

table OF CONTENTS

DEFINITIONS 86 - 87

CONCLUSIONS 70 - 79

PRIORITY 48 - 57

INTRODUCTION 6 - 27

TRANSPARENCY 28 - 37

ALIGNMENT 64 - 69

IMPROVEMENT 58 - 63

ABOUT 80 - 85

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38. Marketing Operations Maturity 43. Maturity by Resource 44. Maturity by Business Unit 45. Maturity by Market 46. Brand Governance Maturity

87. 10 Marketing Processes - 5 Marketing Resources - 9 Value Drivers

72. Transparency 73. Maturity 74. Priority 75. Improvement 76. Alignment 78. Next steps

48. Marketing Operations Priorities 52. Efficiency Priorities 54. Effectiveness Priorities 56. Compliance Priorities

6. Executive Summary 8. Introduction 14. About Operational Marketing Excellence 16. About Marketing Operations DNA 18. About the Respondents 22. 10 Marketing Processes 24. 5 Marketing Resources 26. 1 Marketing Operations

28. Marketing Operations Transparency 31. Materials 32. Manpower 36. Machines

64. Marketing Operations Alignment 67. Alignment by Role 68. Alignment by Business Unit 69. Alignment by Market

58. Marketing Operations Improvement 61. Improvement Potential

83. About MRMLOGIQ

An Operational Marketing Excellence program creates sustainable value. It creates an environment in which the marketing operations investments can be lowered and campaign results are improved, while the operational risks associated with lack of control or transparency are reduced.

MARkETING OPERATIONS DNA delivers insights in who are involved in the core marketing operations processes, what we currently do right and what we can do better. The outcomes of the assessment provide us with the basic information that will help us to become excellent in our marketing execution.

introductionEVANS ELECTRONICS* was founded in the Uk in 1982 by Victor Evans. After the successful launch of the well-known CoolBlueTM cooling series, new Household Appliance lines were launched and quickly followed by the Personal Care segment. Over the years the product lines have expanded with the Business Units Sounds & Vision and Mobile, making use of the advanced CoolBlueTM touch screen technology. Recently EVANS ELECTRONICS entered the Health Care market.

Due to increased competition, expiration of patents and economical challenges, EVANS ELECTRONICS has decided to defend its market share in Household Appliances and Personal Care and grow to top 5 positions in Sound & Vision, Mobile and Health Care. A strategic initiative called 4E, “Effective & Efficient Evans Electronics”, was set out by the Executive team. Within the next two years, the marketing function will design and implement the 4E concept. Taking the MO:DNA survey was the first step in this process.

transparency and Maturity of resourcesWithin the Evans Electronics marketing organization “on time delivery” is likely to be problematic, since many teams and suppliers are involved in the same parts within the marketing execution processes, namely the creation and production of predominantly offline marketing materials. It is nearly impossible to create an instant overview of the status of marketing activities with the use of MS Office tools only.The average maturity of the marketing resources and processes is low (2,5 out of 5). With the strong customer driven focus of the large trade marketing work force, the physical and digital distribution processes of marketing materials have the highest maturity. The ordering and production processes of marketing materials rank second highest in terms of maturity. But it comes with a price: a large number of suppliers and marketers are involved in these processes.

priority, iMproveMent potential and alignMent In the case of marketing efficiency and effectiveness both ‘Process Cycle Time’ and ‘Customer Relevance’ have a high priority and improvement potential. Looking at role, Business Unit or market, all survey respondents agree on the same improvement potential. The exact opposite is true for the alignment of priorities. This indicates that there is a limited capability to roll out strategies throughout the organization down to the lowest operational levels.The Business Unit Personal Care best matches the overall priority and improvement potential. In terms of markets, the Uk best matches the overall priority and improvement potential.

Where to start?The consolidation and standardization of marketing materials across all Business Units and markets is recommended to create a balanced media mix that is more relevant to the customer. As for the creation and production of marketing materials the roles and responsibilities should be redefined and distributed across the markets and Business Units to effectively roll out new strategies and to avoid delays in cycle times when delivering marketing materials.

This new operating model for the marketing supply chain should be accompanied by a higher level of automation for the actual creation of marketing materials as well as the planning and budgeting of marketing activities.

It is recommended to start with the Business Units and markets already closest to the end goal. This will set the example for the other units and markets and increase the learning curve. The Business Unit Personal Care across markets or the Uk in particular best matches the overall priority and improvement potential: Process Cycle Time and Customer Relevance.

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EXECUTIVE SUMMARY

* EVANS ELECTRONICS is an non-existing company. It is founded in our imagination with the objective to show you the potential of streamlining your marketing operations and applying MO:DNA. If EVANS ELECTRONICS shows resemblance with a real life company this is no

coincidence. The situation at EVANS ELECTRONICS is based on an extensive collection of real-life experiences in marketing operations improvements projects. However, this report was written with no specific company or vertical in mind and is solely used for explanation purposes.

INTRODUCTION

THENBack in the days communication lines were straightforward. There was no need for a Marketing Operations function.

11

NOWNowadays communication lines get strangled in a web of information transactions. We need a Marketing Operations function.

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What is our MARkETING OPERATIONS DNA?

DNA defines who we are.

It is at the core of all life.

If there is a fault in the DNA, survival and growth are at risk.

Can we rely on our DNA?

Are we ready and equipped for the challenges ahead?

MARkETING OPERATIONS DNA gives us the insights on where we are today.

So we can see where we can become better tomorrow.

More scalable, more flexible and more competitive.

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about OPERATIONAL MARkETING EXCELLENCEunderstanding the value drivers

Marketing has never found itself in a more challenging and promising decade.

There are more competitors, more products, more brands, more media channels and more regulations than ever before. Basically everything increases, except the budget. Operational pressures and complexity drive many marketing departments to the edge of sanity. And sometimes beyond.

On the plus side, there are new techniques, methods and specialized marketing technology available that tackle some deeply-grained issues around marketing: its role within the organization and its ability to deliver efficiently and effectively. Turning the challenge into an opportunity means aligning the long-term vision and the short-term solutions across the marketing supply chain. The secret of safeguarding this life-time opportunity lies beneath the surface, the 80% of the marketing iceberg, in marketing operations.

MARkETING OPERATIONS DNA clusters the operational priorities around the 3 value drivers of Operational Marketing Excellence:

Marketing efficiencyDriving higher results through smarter allocation and use of marketing resources, lowering the investment.

Marketing effectiveness Allowing higher results through a better infrastructure, enabling right time, right place, right offer capabilities, increasing the return.

Marketing coMplianceFacilitating risk management by a better controlled marketing infrastructure and by delivering output according to guidelines regarding brand, finance and legal, thus lowering the risk.

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Many marketers focus on marketing strategy – branding, positioning, segmentation, tone of voice – neglecting operational marketing efficiency.

MARkETING OPERATIONS DNA delivers the basic information to help us focus on operational marketing excellence.

Michael porter

“WHILE STRATEGY IS THE DIFFERENTIATOR FOR CREATING COMPETITIVE ADVANTAGE, operational efficiency is a prerequisite.”

20%STRATEGY & CREATIVE

80%OPERATIONS

& PROCESSES

about MARkETINGOPERATIONS DNAunderstanding the chapters

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1. TRANSPARENCYWhich resources do we use?

2. MATURITYHow mature are the resources we allocate?

3. PRIORITYWhich value drivers do we rank highest?

4. IMPROVEMENTWhich value driver has the biggest improvement potential?

5. ALIGNMENTDo we agree on value drivers and improvement potential?

To improve our ability to execute marketing activities and campaigns, we need to know where we are, where we want to be and how to get there.

MARkETING OPERATIONS DNA brings the 80%of the marketing iceberg to the surface in 5 chapters.

about THE RESPONDENTSunderstanding the Marketing operations dna respondents

CONCLUSION: Over 1/3 of the respondents operate from the Uk. DACH comes in second place followed by three markets almost equal in amount of respondents (SPIF, BeNeLux, CEE).

STATISTICS ON THE SURVEY

Start date:01-04-2012

End date:22-04-2012

Number of invitations sent:100

Number of respondents:91

Total number of months of knowledge contributing to this assessment:1533

Average number of months in role:17

All the data in this document are derived from a marketing operations survey we executed amongst the people actively involved in our marketing processes.

DACH

21

3344Uk

34BeNeLux12

SPIF14

CEE10

1. RESPONDENTS & LOCATIONS

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CONCLUSION: Most respondents work for Personal Care followed by Household Appliances.

CONCLUSION: 2/3 of the respondents work as a Trade Marketer or Marketing Manager.

2. RESPONDENTS & BUSINESS UNITS 3. RESPONDENTS & ROLES

Sound & Vision

Personal Care

Mobile

Household Appliances

Health Care

16

32

13

24

6

Other

Database Marketer

Trade Marketer

Online Marketer

Content Creator

Creative Designer

Production Manager

Operations Manager

Marketing Manager

Marketing Director

4

3

29

13

4

4

5

1

26

2

10 MARkETING PROCESSES+

5 MARkETING RESOURCES=

1 Marketing operations

“People. Process. Input. If you want to create new outcomes you’ve got to change at least one of them.”

PAUL ISAkSON

9. knowledge

10 MARkETING PROCESSESWhere can we change people, process or input in our marketing function? Using the 10 Functional Areas we can easily map our resources.

The 10 Functional Areas are 10 Marketing Processes that require different activities, workflows, skill sets, knowledge and technological solutions. They naturally follow the daily marketing communication flow as we create, produce and distribute marketing materials.

10. Reporting

7. Planning

s M c rCREATE PRODUCE DISTRIBUTE

8. Budget

1. Content 2. Publishing 3. Ordering 4. Production 5. Channel 6. End User

Marketing Operations Monitoring & Reporting Process

Marketing Operations Management Process

Marketing Operations Execution Process

The 10 Marketing Processes cover three layers, representing the organizational hierarchy.

MARkETING OPERATIONS EXECUTION PROCESSES

1. Content The creation of images, texts, logos, artwork, icons.

2. Publishing The creation of advertisements, brochures, displays, websites, banners, TV/Radio commercials, flyers.

3. Ordering The coordination of the order list, defining production volumes and capturing demands for marketing material.

4. Production The coordination with the production suppliers (such as printers and advertising agencies), Request For Quotation (RFQ), purchasing (media & print), traffic.

5. Channel Trade marketing activities, e.g. the use and distribution of assets, POP, POS, in store material distribution to retailers/resellers/dealers/wholesale, long tail.

6. End User Consumer marketing activities; CRM, campaigns distribution directly to consumers.

MARkETING OPERATIONS MANAGEMENT PROCESSES 7. Planning Management of the production planning; resources planning, calendar, workflow, collaboration, dependencies, alerts, sign-offs.

8. Budget Management of the budget; allocated budget, committed budget, spent costs, invoices, cost centers, cross billing.

9. knowledge Management of knowledge; brand guidelines, procedures, definitions, intranet, best practices, results.

MARkETING OPERATIONS MONITORING & REPORTING PROCESS 10. Reporting Management of business intelligence; reports, data mining, key Performance Indicators (kPIs), scorecards, dashboards.

23

s

In between the 4 SMCR elements 3 main processes exist: the creation, production and distribution of marketing materials.

The 10 Marketing Processes naturally follow the daily marketing communication flow because they are based on the SMCR model.

Source - The entity wishing to present a particular view of an event or object: you or the brand

Message - Signal or combination of signals that form a body of information: an idea or an offer

Channel - Vehicle or carrier through which signals are sent: the chosen medium or set of media

Receiver - The target, person or thing that takes in messages: the prospect or customer

M

c

r

You can always find these 10 Marketing Processes at the DEFINITIONS.

5 MARkETING RESOURCES

There are five key resources in marketing. No more, no less.

Answering this central marketing operations question gives us the five-M paradigm: Materials, Manpower, Machines, Money and Minutes.

The dynamic between the marketing resources is as follows: Marketing strategies cause the use of Materials to increase. Manpower and Machines transform the Materials into something more valuable. Money and Minutes are under the greatest pressure to be more efficient.

In MO:DNA we focus on Materials, Manpower and Machines, with the objective to reduce the use of Money and Minutes.

Within these 10 Marketing Processes we use marketing resources. But what exactly are marketing resources? And how many are there?

“What needs to be created, by whom, using which technology, under which budget, in what timeframe?”

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4.MONEYMoney refers to budgets and the way they are allocated and spent.

5.MINUTESMinutes refers to the time required to process a task, execute a process or go-to-market.

3.MACHINESMachines refers to all technology – hardware and software – used in the process. This resource may range from capacity at the printer to software technology such as content management systems, automated publishing modules, campaign management tools, CRM, etc.

2.MANPOWERManpower refers to all human-related assets across the marketing processes. This covers the number of staff you can deploy (FTE), but also your suppliers, and what their roles and responsibilities are, as well as the proliferation of skills, knowledge and experience.

1.MATERIALSMaterials refers to the physical and digital input and output of the marketing (sub)processes, undergoing the transformation and creating value for the organization.

You can always find these 5 Marketing Resources at the DEFINITIONS.

1 MARkETING OPERATIONS10 Marketing Processes and 5 Marketing Resources come together in 1 Marketing Operations.

The Marketing Operations function needs to strategically coordinate all marketing activities.

Only then we can manage our strategy by the minute.

When we group and align our resources around the customer we become customer centric.

We need to break down the silos, benefit from economies of scale and turn into an integrated organization designed to learn.

In summary: we need to align our priorities and resources. Let’s take a look at the transparency, maturity, priority, improvement and alignment of our marketing operations.

TRANSPARENCYWhich resources do We use?

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Marketing operations TRANSPARENCY

Transparency within marketing operations implies openness and clear communication about the allocation and use of marketing resources. It is mandatory if you want to re-use assets, avoid waste and to become more collaborative, more accountable and benefit from economies of scale. What is created, by whom, using which technology in our organization? Let’s take a look at Materials, Manpower and Machines.

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Product information

Marketing information

Legal information

Financial information

Corporate information

Compatibility information

Co-branding information

Channel information

94%

90%

33%

69%

43%

66%

11%

57%

MATERIALSour Media Mix and inforMation Mix

Our Materials refer to a mix of Media and Information categories used in our communication with our audiences.

Web, Microsite, Banner

TV, Radio

Social, Blog

SEO

Print, Brochures, Flyers

POS, POP, Displays, In store

Mobile

Merchandising, Events

CRM, Customer Intelligence

Advertising, Billboards

40%

34%

28%

8%

81%

63%

6%

28%

11%

51%

CONCLUSION 1: Most respondents are involved in creating ‘Print, Brochures, Flyers’, followed by ‘POS, POP, Displays, In store’.

1. % OF RESPONDENTS INVOLVED IN PUBLICATIONS FOR MEDIA TYPES

CONCLUSION 2: Many respondents are involved in creating many types of content. In content creation there are many generalists.

2. % OF RESPONDENTS INVOLVED IN CONTENT CREATION FOR INFORMATION CATEGORIES

MEDIA MIXIndicates the mix of different media types used across our Business Units and Markets to communicate with our audiences. It ranges from various touchpoints like Face to face, Merchandising, Internet, E-mail, Mobile, Outdoor, Print, Radio, Television, etc.

INFORMATION MIX

INFORMATIONIndicates the different information categories included in our Media Mix.Think about Corporate information, Marketing information, Product information, Financial information, Compatibility information, Legal information, Channel information, Co-branding information, etc.

10. Reporting

9. knowledge

7. Planning

8. Budget


MANPOWERour teaMs

Our team members play different roles in the daily marketing communication processes across the 10 Marketing Processes.

4x Production Managers

1x Marketing Director

16x Marketing Managers

1x Content Creator

5x Online Marketers

4x Others

8x Online Marketers


11x Online Marketers


3x Database Marketers

2x Others


26x Trade Marketers


1x Database Marketer

1x Operations Manager

3x Others 17x

Marketing Managers 5x

Production Managers

17x Trade Marketers4x

Creative Designers

2x Marketing Directors


1x Database Marketer


21x Trade Marketers

5x Productions Managers

7x Online

Marketers

2x Creative Designers

1x Production Manager



CONCLUSION 3: Marketing Managers are involved in operational tasks and Trade Marketers are heavily involved in the creation of content.

3. MARkETING PROCESSES & ROLES





4x Content Creators

26x Trade

Marketers

4x Others

4x Content Creators 11x

Online Marketers

20x Trade Marketers

20x Trade Marketers



4x Others


29x Trade Marketers


2x Others



6x Online Marketers



12x Trade Marketers


11x Marketing Managers 1x

Creative Designer




7x Trade Marketers 4x Others


2x Marketing Directors 14x

Marketing Managers



4x Others


18x Trade Marketers

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10. Reporting

9. knowledge

7. Planning

8. Budget


MANPOWERour suppliers

Our suppliers play different roles in the daily marketing communication processes across the 10 Marketing Processes.

CONCLUSION 4: No suppliers support knowledge management. 70% of the suppliers support the Marketing Operations Execution Process layer. Publishing and production are supported by many suppliers.

4. MARkETING PROCESSES & SUPPLIERS





Data Mine

IntelCore5

WPPk/Hartmann

Three- Sixty

TH!Nk digicomm

WPPk/Hartmann

Three- Sixty

WPPk/Hartmann

Meier & Mayer

SocialistasBlue Berry

kingCom Creative iCatch

M.A.C. Fulfilment

Rototech

TH!Nk digicommMadison WPPk/

Hartmann

M.A.C. Fulfilment

Travertari

PrimaPrint

Mr. BricksDaily Direct

Ad Valvas Exprezz

Store Steps

MANPOWERour skills & talents

Are we fit to face the challenges of the future? How are the talents distributed within the organization? Is the team more creative than analytical? Do the team members consider themselves to be strategic masterminds or operational wizards? Is the team capable of keeping pace with the changing marketing discipline?

Let’s take a look at the Manpower within our organization, all human related assets across the marketing processes. This covers the roles and responsibilities, as well as the combined set of skills, knowledge and experience.

There are two major trends with regard to the resource Manpower:

1. The Creative – Analytical skills and talents

Over the years, marketing has gradually shifted from an art to a science. This transition within the marketing field, running parallel with the transition from offline to online media and technological innovations, has sparked a new world of opportunities with regard to customer insights, customized product offerings and return on investment calculations. Marketing has become more analytical.

2. The Strategic – Operational skills and talents

Over the years, marketing focus has gradually shifted from mainly generating good ideas to the execution of good ideas. Media proliferation and reduced product lifecycles call for a better coordination and collaboration skills to master marketing complexity. Nowadays on average 70% to 80% of the activities within a marketing department are related to marketing execution. A good marketing execution and a well-oiled marketing operations engine have become prerequisites for marketing success. Operational Marketing Excellence has become a must.

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5. TALENTS & SkILLS

POSITION & TALENTSHow are the roles and talents distributed throughout our marketing organization?

An equal distribution of talents and skills is necessary to adequately adapt to changing marketing conditions. Are most of your marketers in only one quadrant? Then it is likely you will encounter difficulties to increase marketing maturity and become excellent.

THE STRATEGIC MASTERMINDAnswering the why, vision, concept, long-term, roadmap, large scale, doing the right thing.

THE OPERATIONAL WIzARDAnswering the how, tasks, tools, short-term, execution, smaller scale, doing things right.

THE CREATIVEDoing the cool, visual, emotional, impetuous, believes, big picture oriented, right brain.

THE ANALYSTDoing the smart, textual, factual, pratical, knowing, detail oriented, left brain.

Marketing Director

Marketing Manager

Operations Manager

Production Manager

Creative Designer

Content Creator

Online Marketeer

Trade Marketeer

Database Marketeer

ROLE

ANALYTICAL CREATIVE

STRATEGIC

CONCLUSION 5: Most respondents score high on the strategic and creative scale. Few respondents mentioned their analytical and operational skills.

OPERATIONAL

MACHINESour Marketing technology

Our marketing technology solutions support different areas in the daily marketing communication processes across the 10 Marketing Processes.

10. Reporting

9. knowledge

7. Planning

8. Budget


CONCLUSION 6: Budget Management is done in three different systems. Planning is predominantly done via MS tools. Publishing and Production are not really supported by internal systems.

6. MARkETING PROCESSES & TECHNOLOGY

You can always find these 10 Marketing Processes at the DEFINITIIONS.




Indigo

IntelCore5

Site-C

Connect (MS SharePoint)

ProClear COOP MAP

MS Excel

MS Outlook

1-2 Many NeutronAdobe

FTP

Madison Square M.A.C.

Fulfilment

Target Soft

Partner base (MS Access)

Delphy CRM

1-2 Many

MATURITYhoW Mature are the resources We allocate?

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Marketing operations MATURITYIdentifying the current maturity of resources in our processes is essential to estimate our Operational Marketing Excellence growth potential.

Striving for Operational Excellence in Marketing is a matter of climbing the maturity ladder. With every step we become more efficient and effective and create sustainable competitive advantage.

The Capability Maturity Model (CMM), developed by Carnegie Mellon University, is altered to fit the purpose of MO:DNA and to map marketing processes and resources.

The elements and dynamics in the maturity levels can be described as:

MATERIALS MANPOWER MACHINES

level 2.Some marketing materials are produced repeatedly, but without guaranteed consistency. The marketing plan is consulted and offers (limited) guidance when there is a request for new material.

level 3.Marketing materials are well-defined, standardized and consistent. The individual marketing materials are linked to objectives and marketing plan.

level 4.Marketing material can easily and effectively be adapted by marketing management to particular projects according to the marketing plan, without significant loss of quality or deviating from brand specifications.

level 5.Marketing material is continuously improved, based on customer result measurements. All material is created according to the marketing plan. It is linked to tactical and strategic goals.

level 1.Business is run in an ad hoc and reactive manner. Roles & responsibilities are generally undocumented and in a state of dynamic change.

level 2.Some roles & responsibilities look similar throughout the organization. Discipline is not strict, but where it exists it may help to ensure that existing processes are maintained during times of stress.

level 3.Roles & responsibilities are defined and documented, which enables the entire organization to execute processes and workflows consistently.

level 4.Roles & responsibilities can be guided, controlled and adapted to particular projects, whilst maintaining quality standards.

level 5.Through a controlled and monitored process our roles & responsibilities are continuously improved through incremental steps.

level 1.The technology and software used in campaigns differs per individual marketer. Assets are stored in personal folders and can be requested at external agencies. Overviews are created in personal spread sheets.

level 2.Some technology and software are used by multiple people. Data is shared via a central folder structure. Overviews are created in spread sheets based on templates.

level 3.There is one set of technology and software solutions for the entire group. A consistent asset & project administration is established across all teams through a controlled data entry process.

level 4.The marketing management uses workflow tools and automated data synchronization to control, adjust and adapt data across the organization.

level 5.There is a single interactive enterprise marketing platform, where all marketing-related data can be continuously checked and improved.

level 1.Marketing material is created on an ad hoc basis, reacting to requests from the business. Results from previous campaigns are not stored or consulted when new campaigns are created.

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CONCLUSION 7: The average Marketing Operations maturity is 2,5. The Marketing Operations Execution Process layer has the highest maturity level, with an exception for Publishing. knowledge Management and Reporting are the least mature processes.

MATURITYby resource

What is the maturity of our resources in our organization?Can we manage our resources more efficiently?

2,5The average maturity level score per Resource is: The average Marketing Operations maturity is:

Materials Manpower Machines


1. MATURITY BY RESOURCE

Materials

Manpower

Machines

Planning Budget Knowledge Reporting

Content Publishing Ordering Production Channel End User

The average maturity level score per Business Unit is:

MATURITYby business unit

What is the maturity of our resources across the different Business Units? Can we match well-performing with less performing Business Units?

CONCLUSION 8: BUs are equally mature with an exception for Health Care, which scores significantly lower. knowledge and Reporting are partially not covered, especially in Health Care, Household Appliances and Personal Care.

2. MATURITY BY BUSINESS UNIT

Health Care 2,0 1,7 1,7 1,0 1,0 1,0 2,7 2,7 2,3 2,6 2,6 2,4 3,3 3,0 3,0 0,0 0,0 0,0 1,6 1,6 1,6 1,6 1,6 1,8 0,0 0,0 0,0 0,0 0,0 0,0

Household Appliances 2,7 2,3 1,8 1,7 1,7 1,3 3,5 3,1 3,1 3,1 3,1 2,8 3,7 3,6 3,3 4,0 3,2 2,9 2,8 2,2 1,9 4,1 3,7 3,3 0,0 0,0 0,0 1,7 1,4 1,6

Mobile 2,4 2,1 1,7 1,5 1,4 1,0 3,3 3,0 3,0 2,8 3,0 2,8 4,0 3,9 3,7 3,8 3,6 3,4 2,4 1,9 1,6 2,3 2,0 1,7 2,0 2,3 1,7 1,8 1,5 1,4

Personal Care 2,4 2,3 2,0 1,7 1,5 1,5 3,4 3,3 3,0 3,3 3,2 2,7 3,6 3,6 3,2 4,0 3,7 3,5 2,3 2,3 1,9 4,0 3,3 3,2 0,0 0,0 0,0 1,9 1,5 1,8

Sound & Vision 2,1 2,2 1,9 1,3 1,3 1,0 3,0 3,0 3,0 2,8 2,9 2,9 3,8 3,8 3,6 3,5 3,7 3,3 2,0 1,7 1,5 2,3 2,2 1,8 1,7 1,7 1,0 2,0 1,8 1,4

Content Publishing Ordering Production Channel End User Planning Budget Knowledge Reporting

Health Care Household Appliances Mobile Personal Care Sound & Vision


MATURITYby Market


What is the maturity of our resources across the different Markets? Can we match well-performing with less performing Markets?

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CONCLUSION 9: Uk has the highest maturity, because of the Channel and End User processes. BeNeLux has the lowest maturity, because of low scores on Content, Publishing, knowledge and Reporting processes. Some markets don’t have any resources allocated to knowledge management.

3. MATURITY BY MARkETS

The average maturity level score per Market is:

Content Publishing Ordering Production Channel End User Planning Budget Knowledge Reporting

Strong brands correlate with strong business performance.

How does the marketing department experience the brand orientation of the company itself?

Is it merely a logotype? Is the brand a culture carrier that expresses the cohesion between colleagues? Is the brand used to create trust and drive sales? Is the brand the backbone of the company, connecting values and logic?

The Brand Orientation Index (BOI; www.brandorientationindex.com) clearly shows that brand-oriented companies are more profitable, have a long-term scope, combine the internal and external perspective in a holistic approach, have executive involvement in marketing and set clear goals.

5 insights from brand orientation research

1. It is profitable to be brand-oriented. The more brand-oriented a company is, the more profitable it is. The most brand-oriented companies have almost twice the operating profit (ebita) of those that are the least brand oriented.

2. Short-term financial perspective and brand orientation do not go well together. Relatively few brand-oriented companies are listed on the stock exchange. One plausible explanation for this may be that the quarterly economic cycle forces many listed companies into a short-term profitability mindset that seldom benefits long-term brand strategy.

3. Combining an internal and an external perspective is a success factor for brand orientation. Most brand-oriented companies have the ability to combine both an internal and an external perspective on brand development. These companies have succeeded in creating a value-driven organization in which the employees are brand ambassadors, while they also have the ability to exploit the brand as a strategic competitive tool on the market. Building a strong brand requires a holistic approach.

4. In brand-oriented companies, brand development is an issue for top management. In most brand-oriented companies the executive management group is very involved and active in various brand-related issues. Decentralized brand responsibility seldom promotes brand orientation.

5. Brand-oriented companies attach considerable importance to setting up targets and meeting them. Successful brand building is characterized by continuity and determination. The most brand-oriented companies therefore attach considerable importance to setting up long-term goals and to evaluating them, for both internal and external brand development.

BRAND GOVERNANCE MATURITY our brand orientation

The brand is a logotypeThe brand is a visual element. The management team shows little interest in the brand. Brand recognition in the market is limited. We have no defined and/or strong brand values.

The brand is a sales toolWe focus more on product branding than on corporate branding. The management shows considerable interest in the brand. Our brand is highly recognized in the market. We have defined brand values, but most people/consumers don’t know what they are.

The brand is the carrier of the corporate cultureOur brand is the vehicle for educating and connecting employees. There is a considerable brand involvement from the management team. There is limited brand recognition in the market, but our internal brand values are highly respected.

The brand is the backbone of all operationsThe brand is the cement that holds together strategy, operations and organization. The management team is highly involved in the brand. Our brand is widely recognized and we have strong and well-known brand values.

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CONCLUSION 10: By far the most respondents see the brand as a sales tool.

4. INTERNAL BRAND PERCEPTION

Which value drivers do We rank highest?

PRIORITY

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Marketing operations PRIORITIESWhich value drivers do we rank highest if we look at efficiency, effectiveness and compliance?

Each marketing discipline or department within a large organization tends to set goals for efficiency, effectiveness or compliance. Sometimes these goals align with broader corporate objectives. Sometimes they don’t.

Each can work against the other: the different functions can create a silo-driven mentality that establishes individual fiefdoms. A more organization-wide collaborative approach will yield better results. Making conscious and holistic decisions on Operational Excellence objectives and selecting priorities helps all parties to work together and create sustainable value.

MARkETING OPERATIONS DNA clusters the operational priorities around the 3 value drivers of Operational Marketing Excellence:

Marketing efficiencyDriving higher results through smarter allocation and use of marketing resources, lowering the investment.

Marketing effectiveness Allowing higher results through a better infrastructure, enabling right time, right place, right offer capabilities, increasing the return.

Marketing coMplianceFacilitating risk management by a better controlled marketing infrastructure and by delivering output according to guidelines regarding brand, finance and legal, thus lowering the risk.

efficiency PRIORITIES

3. increase operational capacityCapacity is the ability to do, to perform or to produce. It refers to the size, amount, load and scalability of Manpower (human resources) and Machines (technology systems). In some marketing organizations, higher capacity and higher peak performance are required to handle a growing list of (customized) messages and associated Materials. Accurate capacity ensures that the availability of resources is in line with the current and future business needs and that demand and supply are balanced.

1. reduce operational costsOperational costs are associated with the resource investments to create and produce marketing materials. These include costs related to HR, creative agency fees, planning, coordination, workspace and systems costs. Operational marketing costs do not include Media buying costs. In some organizations the ratio between Media costs (customer touch points) and Operational marketing costs (overhead) is called the “the working dollar versus non-working dollar ratio”.

2. reduce process cycle tiMesCycle time is the total length of time required to complete an entire process. It includes the time taken to perform the actual work, also known as processing time, as well as the task transfers and waiting. Often processing time is less than 1% of the cycle time. Therefore comparing the sum of processing times between the old and the new situation is not sufficient. Reducing cycle times means primarily looking at the waiting, not at the doing.

Achieving efficiency is primarily aimed at the benefit of the process owner. Marketing Efficiency is the optimal use of marketing resources to create the marketing output. Costs, Cycle Time and Capacity are the main efficiency drivers.

16% 58% 25%

64% 31% 5%

19% 12% 69%

REDUCE OPERATIONAL COSTS

REDUCE PROCESS CYCLE TIMES

INCREASE OPERATIONAL CAPACITY

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1. EFFICIENCY PRIORITIES

CONCLUSION 11: 2/3 of the respondents see the reduction of process cycle times as the highest efficiency priority to fulfill the needs of the internal organization.

HIGH PRIORITY MEDIUM PRIORITY LOW PRIORITY

12% 70% 18%

75% 20% 5%

13% 10% 77%

REDUCE TIME-TO-MARKET

INCREASE CUSTOMER RELEVANCE

INCREASE CUSTOMER EXPOSURE

2. EFFECTIVENESS PRIORITIES

CONCLUSION 12: 75% of the respondents indicate that the highest effectiveness priority is to increase customer relevance.


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effectiveness PRIORITIES

4. reduce tiMe-to-MarketThe time-to-market of campaigns relates to the time required from the start of the marketing concept to the launch of the campaign. If you take the same start date as before the improvement, and launch earlier, a reduced time-to-market results in an increased “sales window”. If you take the same launch date as before the improvement, but start later, a reduced time-to-market allows you to decrease the “response time” to changing market conditions.

5. increase custoMer relevanceCustomer relevance relates to creating an offer that meets and satisfies every aspect of the customer need, and is delivered through a preferred media channel. Nowadays customers are better informed, more savvy and more media-wise than ever before. Improving “right offer, right place capabilities” through marketing operations facilitates a better customer engagement, more customer intimacy, creates context and drives sales.

6. increase custoMer exposureCustomer exposure relates to the number and frequency of customer touch points.A bigger market presence can be calculated using Gross Rating Point (GRP), measuring the size of an audience reached by a specific media vehicle or schedule. The GRP is calculated by multiplying the percentage of the target audience reached by an advertisement with the frequency they see it in a given campaign.

Achieving effectiveness is primarily aimed at the customer. Marketing Effectiveness is how well the marketing output meets the requirements of its end customer. Time-to-market, relevance and exposure are the main effectiveness drivers.

coMpliance PRIORITIESAchieving compliance is primarily aimed at the benefit of the brand owner and the company as a whole. Marketing Compliance is how well management expectations about marketing are embedded in internal quality standards and procedures, guidelines, processes and technology. Brand compliance, legal compliance and financial compliance are the main compliance drivers.

7. increase brand coMplianceBrand compliance refers to the measures and procedures by which the brand guidelines are directed and controlled.A brand needs to be creative to be distinctive and stand out from the crowd. A brand also needs to be consistent to be recognized, and to be remembered by the crowd. The creative concept needs to be carried out consistently through all aspects of creative production to add value. Brand compliance reduces the risks that the brand is used in a wrong way.

8. increase legal coMplianceLegal compliance refers to the procedures by which legal regulations are applied and controlled. These can be local language laws, laws on company registration information, equal opportunity legislation and accounting laws like Sarbanes-Oxley (SOX) and IFRS. But usage rights on digital assets are also part of legal compliance measures. Legal compliance reduces the risk of campaign recalls or financial repercussions.

9. increase financial coMplianceFinancial compliance refers to the procedures by which financial approvals are applied and controlled. Research shows that 20% to 40% of all operational activities within marketing environments go nowhere near serving any strategic or tactical purpose. Through financial approval measures and procedures, budget allocations become transparent, correct, and controlled. Financial compliance reduces the risk that company resources and associated budgets are spent on wrong operational activities.

You can always find these 9 Value Drivers at the DEFINITIONS.

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43% 40% 18%

26% 5% 68%

29% 55% 16%

INCREASE BRAND COMPLIANCE

INCREASE LEGAL COMPLIANCE

INCREASE FINANCIAL COMPLIANCE

3. COMPLIANCE PRIORITIES

CONCLUSION 13: According to the respondents, increasing brand compliance has the highest priority, followed by increasing financial compliance.


Which value driver has the biggest iMproveMent potential?

IMPROVEMENT

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Different value drivers have different priorities. According to the respondents, some of the 9 priorities have more improvement potential than others. If we compare the priority list with the improvement potential we can identify the starting point for improvement.

Marketing operations IMPROVEMENT

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IMPROVEMENT POTENTIALestiMated iMpact of Marketing operations iMproveMents

CONCLUSION 14: The reduction of process cycle times, the increase of customer relevance and the reduction of time-to-market are estimated to have a very high improvement potential.

1. POTENTIAL IMPROVEMENT

Is there room for improvement to:

Not at all Slightly Moderately Very Extremely

Reduce Operational Costs

Reduce Process Cycle Times

Increase Operational Capacity

Reduce Time-to-Market

Increase Customer Exposure

Increase Brand Compliance

Increase Legal Compliance

Increase Financial Compliance

not at allImprovement potential is absent. We have clear insight in the situation. We have successfully implemented means and measures and have this topic under full control.

slightlyImprovement potential is small. We have a fairly good understanding of the situation. We have done projects related to this topic which have shown pretty satisfying results.

ModeratelyImprovement potential is present. We have some form of understanding about the situation. We have done some projects related to this topic which have shown some results.

veryImprovement potential is high. We don’t have the situation under control and there are multiple issues. We either have not done anything yet to fix this problem, or have done something but with limited results.

extremelyImprovement potential is rocketing. We have no insight. The situation is out of control. We either have not done anything to fix this problem or previous projects have failed.


What We do best in our MARkETING ORGANIzATION

“It is an interesting business with a lot of competition. We need to be sharp to succeed. I like that.”

“I like the freedom in my role.”

“We are very flexible and take a lot of pride in fixing last minute jobs.”

“For the first time in 7 years we have a brand book. It looks great.”

“We have done a lot of initiatives this year! It is never boring.”

“I like the dynamics of being in a sales driven organization.”

“I happen to have a good relationship with Group Marketing & Communications.”

like!

“Reverts all the way, all the time.”

“Retailers don’t know which material is available so they don’t know what to order. Sometimes I wonder if they ever use our stuff.”

“We are short of staff. We burn people.”

“I would not design the unit as it is now. There are too many people.”

“We are doing the impossible for the ungrateful. Nobody sees. Nobody cares.”

“Excel, Excel, Excel! We are turning our backs towards the customer filling in Excel sheets.”

“If I need something I have to make it myself. What the Uk is creating doesn’t work around here.”

What We suggest to iMprove in our MARkETING ORGANIzATION

dislike!

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ALIGNMENTdo We agree on value drivers and iMproveMent potential?

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Understanding where we are not aligned is vital to succesfully initiate improvements in Marketing Operations.

Each discipline within a large organization tends to set its goals in terms of objectives that are specific to that department. Many marketing organizations are managed according to a common sense approach. But in MRM, where creativity meets structure, where finance meets IT and accountability meets that now-or-never market opportunity, “common sense” is rarely the best guide.

We need to investigate the alignment of our priorities and improvement potential in relation to roles, product lines and markets.

Marketing operationsALIGNMENT

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Strategic role

Operational role

STRATEGIC ROLES

OPERATIONAL ROLES

CONCLUSION 15: There is a mismatch in strategic and operational alignment with regard to priorities with the exception for ‘Customer relevance’.

ALIGNMENTby role




Increase Customer RelevanceIncrease Customer Exposure





1. ALIGNMENT OF ROLES & PRIORITY

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

CONCLUSION 16: The strategic and operational teams are aligned on improvement potential.

2. ALIGNMENT OF ROLES & IMPROVEMENT POTENTIAL










0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

5,0

ALIGNMENT by business unit

0%

10%

20%

30%

40%

50%

60%

70%

Health CareHousehold AppliancesMobilePersonal CareSound & Vision

CONCLUSION 17: The different BUs have completely different priorities.

3. ALIGNMENT OF BUSINESS UNIT & PRIORITY

CONCLUSION 18: The estimated improvement potential is aligned with the exception for Health Care.

4. ALIGNMENT OF BUSINESS UNIT & IMPROVEMENT POTENTIAL


















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ALIGNMENTby Market

0%

10%

20%

30%

40%

50%

60%

70%

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

CONCLUSION 19: Uk and CEE are significantly misaligned with the other markets with regard to priorities.

CONCLUSION 20: All markets agree on the estimated improvement potential.

BeNeLuxCEEDACHSPIFUk

5. ALIGNMENT OF MARkETS & PRIORITY 6. ALIGNMENT OF MARkETS & IMPROVEMENT POTENTIAL


















conclusions& NEXT STEPS

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conclusions& NEXT STEPS

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conclusions TRANSPARENCYWhich resources do we use? How do we allocate our resources across our processes?

graphs CONCLUSION 1: Most respondents are involved in creating ‘Print, Brochures, Flyers’, followed by ‘POS, POP, Displays, In store’.

CONCLUSION 2: Many respondents are involved in creating many types of content. In content creation there are many generalists.

CONCLUSION 3: Marketing Managers are involved in operational tasks and Trade Marketers are heavily involved in the creation of content.

CONCLUSION 4: No suppliers support knowledge management. 70% of the suppliers support the Marketing Operations Execution Process layer. Publishing and production are supported by many suppliers.

CONCLUSION 5: Most respondents score high on the strategic and creative scale. Few respondents mentioned their analytical and operational skills.

CONCLUSION 6: Budget Management is done in three different systems. Planning is predominantly done via MS tools. Publishing and Production are not really supported by internal systems.

overall

There is a strong focus on traditional offline media, potentially passing over the power and synergy of online channels and social media. Content creation is not treated as a separate specialization judging by the large amount and variety of roles and people involved. This potentially decreases the quality, relevance and impact of the message. There is a strong focus on the creation of marketing materials using many supporting suppliers but no Print-on-Demand tool. The physical production of materials requires many suppliers, but there is no underlying technology to support the buying and production of materials. Many are involved in marketing execution, while they regard their skills as strategic and creative. It is nearly impossible to create an instant overview of the status of marketing activities with the use of MS Office tools only. It is likely that “on time delivery” is problematic.

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How mature are the resources we allocate? What is the maturity of our resources across the different processes, Business Units and markets?

conclusionsMATURITY

graphs

CONCLUSION 7: The overall Marketing Operations maturity is 2,5. The Marketing Operations Execution Process layer has the highest maturity level, with an exception for Publishing. knowledge Management and Reporting are the least mature processes.

CONCLUSION 8: BUs are equally mature with an exception for Health Care, which scores significantly lower. knowledge and Reporting are partially not covered, especially in Health Care, Household Appliances and Personal Care.

CONCLUSION 9: Uk has the highest maturity, because of the Channel and End User processes. BeNeLux has the lowest maturity, because of low scores on Content, Publishing, knowledge and Reporting processes. Some markets don’t have any resources allocated to knowledge management.

CONCLUSION 10: By far the most respondents see the brand as a sales tool.

overall

The average maturity of the marketing resources and processes is 2,5. Creating marketing materials, knowledge management and Reporting are the least mature. With the strong customer driven focus of the large trade marketing work force the physical and digital distribution processes of marketing materials have the highest maturity. With a large amount of suppliers and marketers involved in the ordering and production of marketing materials, these processes rank second highest in terms of maturity. The maturity of the entire marketing execution process is at a level that does not allow for standardization of knowledge or reporting on processes and marketing data. Health Care does not cover all processes, allowing for the company to run efficiency and compliance risks. Uk has the highest maturity, while BeNeLux has the lowest maturity, (re)creating many materials locally.

conclusionsPRIORITY Which value drivers do we rank highest? According to our strategy, which value driver has the highest priority?

graphs

CONCLUSION 11: 2/3 of the respondents see the reduction of process cycle times as the highest efficiency priority to fulfill the needs of the internal organization.

CONCLUSION 12: 75% of the respondents indicate that the highest effectiveness priority is to increase customer relevance.

CONCLUSION 13: According to the respondents, increasing brand compliance has the highest priority, followed by increasing financial compliance.

overall

While ‘Process cycle time’ is ranked as most important driver for internal improvement, the effectiveness priority is not Time-to-Market’ but ‘Customer relevance’. Reducing process cycle time can lead to increased customer relevance if content is created closer to the live date of campaigns and materials.

With ‘Process cycle time’ as the most important driver for internal improvement, financial compliance will be a challenge with the current structure.

With the large number of people involved in the creation of content and materials, brand compliance is a challenge if the current structure is maintained.

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Which value driver has the biggest improvement potential? Which priority do we believe has the largest improvement potential?

conclusionsIMPROVEMENT

graphs

CONCLUSION 14: The reduction of process cycle times, the increase of customer relevance and the reduction of time-to-market are estimated to have a very high improvement potential.

overall

Respondents agree on the fact that ‘Process cycle times’ are a high priority and have a high improvement potential. If we consider that reducing ‘Time-to-Market’ has a high improvement potential, despite its low priority, it will probably improve due to the decrease of ‘Process cycle times’. The relevance of the marketing messages (customer relevance) are perceived also both a high priority and improvement potential. Although brand compliance is a high priority, its improvement potential is not regarded very high.

Do we agree on value drivers and improvement potential? Are we aligned across the different roles, Business Units and markets?

conclusions ALIGNMENT

graphs

CONCLUSION 15: There is a mismatch in strategic and operational alignment with regard to priorities with the exception for ‘Customer relevance’.

CONCLUSION 16: The strategic and operational teams are aligned on improvement potential.

CONCLUSION 17: The different BUs have completely different priorities.

CONCLUSION 18: The estimated improvement potential is aligned with the exception for Health Care.

CONCLUSION 19: Uk and CEE are significantly misaligned with the other markets with regard to priorities.

CONCLUSION 20: All markets agree on the estimated improvement potential.

overall

Regardless of the role, BU or market, all respondents agree on the same improvement potential. The very opposite is true for the alignment of priorities. There is no Business Unit or market that typically represents the overall priorities and improvement potential (‘Reduce cycle time’ and ‘Customer relevance’). This potentially indicates that there is no capability to roll out new strategies throughout the organization down to the lowest operational levels. The Business Unit Personal Care can be considered representing best the overall priority and improvement potential. The Uk, and to a lesser extend DACH, are the markets that can be considered representing best the overall priority and improvement potential.

next STEPS

4.Set up an internal meeting with colleagues and key stakeholders to share next steps.

5.Build the business case using the MO:NPV calculation to assess the potential business value of Operational Marketing Excellence.

3.Set up a workshop to elaborate on additional MO:DNA data, insights and next steps.

2.Set up an internal meeting with colleagues and key stakeholders and discuss MO:DNA results.

1.Hand out the copies of this MO:DNA booklet to colleagues and key stakeholders.

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MO:DNA is an MRMLOGIQ product. It is based on more than a decade of improving marketing operations departments for some of the best brands in the world.

MRMLOGIQ streamlines marketing processes and translates marketing strategy into daily tasks and routines.

We assist you in improving your marketing operations to guarantee an excellent execution of brand activities and marketing activities.

By rationalizing marketing processes and implementing marketing technology, we help you save substantial budget, reduce time-to-market of materials and improve the quality of your marketing output.

Marketing Resource Management is our core business. It is not something we also do; it is the only thing we do. Through the delivery of operational marketing excellence we make marketing count. In every sense of the word.

WWW.MRMLOGIQ.COMWWW.MARkETINGGOVERNANCE.COM

aboutMRMLOGIQMrMlogiq is a Marketing efficiency coMpany

For more information about the basic concepts, read:Marketing Resource Management – The noble art of getting things done in marketing. Efficiently.Romek Jansen & Frans Riemersma.Available at www.amazon.co.uk.

about MARkETING RESOURCE MANAGEMENTthe noble art of getting things done in Marketing. efficiently.

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