sales management course - p&g case study presentation
DESCRIPTION
SALES MANAGEMENT COURSE (submitted presentation slides) Course Description: Effective sales management has a high impact on firms' market and financial performance. Firms invest a high amount of money in their sales forces, salespeople establish and maintain customer relationships, and generate sales and profit. Me and my teammates achieved 30/30 points with this presentation from Dr. Tim Bendig (class instructor) and P&G company representatives. Please note that the uploaded task description is not complete! Please note that the presentation is built on imaginary store and task! You are Key Account Manager for Gillette and responsible for the customer ‘Gamma Stores’. The key question is: “How to launch the new Lady shaver Venus & Olay and how to leverage Venus Olay as the growth engine for your female shaving business at your customer”. It is July 2012 and you & your team develop the Launch Plan and Conceptual Sell for Venus & Olay at Gamma Stores (planned for Jan13). Case Study outline: -Venus & Olay- the product -Target group -Media- and ER-support -Development female grooming market -Calculation / Pricelist -Gamma Stores . Important take-away: 5 Steps of Persuasive Selling Format (Conceptual Sell): -Summarize the Situation -State the Idea -Explain How it Works -Re-Inforce the Benefits -Easy Next StepsTRANSCRIPT
Sales Management | March 19th 2013 0
WELCOME!
Venus & Olay launch in Gamma stores Msc Sales Management
Basmah Abdulkarim, Kata Gyarmati, Jan-Philipp Lembke, Jessica Sgarlata
Sales Management | March 19th 2013 1
Agenda
What is the
Current
Situation?
What is our
Idea?
How does it
Work?
What are the
Benefits?
What are the
Next Steps?
Sales Management | March 19th 2013 2
Situation and our Conclusions
Shaving trends in Germany Consumers‘ Decision Drivers Growth Driver
Innovation is key for
category growth
Leverage these Decision
Drivers at POS Win new customers
2005
2006
2007
2008
2009
2010
2011
+33%
Revenue growth
1 Fragrance
2 Color
3 Variety
4 Something New
5 Quickness
Women want... Of all women..
~50% shave their body
hair
Shave 11 times a
month
~33% include it in
regular body and
beauty care
Use 10 blades a year
Sales Management | March 19th 2013 3
Agenda
What is the
Current
Situation?
What is our
Idea?
How does it
Work?
What are the
Benefits?
What are the
Next Steps?
Sales Management | March 19th 2013
2 Categories
2 Brands
2 Strengths
4
Product Innovation
Best Shaving
through Embrance
5-blades
technology
Improved 2-in-1
Solution
Skin care through
Olay ingredients
Female Wet
Grooming Skin Care
Sales Management | March 19th 2013 5
The Idea
Achieving category growth in female grooming through changed behavior and in skin care
through target group transfer effects.
Today Future
“Shaving is only a function to remove
unwanted hair which stresses my skin”
“With Venus & Olay, shaving becomes
the foundation of my daily Skin Care.”
Sales Management | March 19th 2013 6
Agenda
What is the
Current
Situation?
What is our
Idea?
How does it
Work?
What are the
Benefits?
What are the
Next Steps?
Sales Management | March 19th 2013 7
Where will V&O Consumers Come from? (See Excel Sheet 2)
• Quattro for Women (-2%)
• Intuition (-2%)
• Venus for Women (-10%)
• Venus Breeze (-15%)
• Venus Embrace (-10%)
• Protector Lady Plus (-2%)
• Intuituin Plus Hydra Soft (-2%)
• Senior Excel for Women (-2%)
• Venus Embrace (-5%)
• Intuition Melon Fresh (-2%)
• Protector Lady Swing (-2%)
Cannibalisation Olay Consumers Market Growth
104M Units 70M Units 31M Units
3M Units
5% (expected 2013)
Currently only 4% of
consumers buy both
brands.
Profit margins for V&O
are, however, extremely
outstanding.
Sales Management | March 19th 2013 8
Budget focus on Displays and Mailings
ID Measure Quantity Price TOTAL Hyper SuperNumberof
StoresTOTAL
1 FullPageAdintheCustomerMagazine 0 25.000,00€-€ -€
2 FullPageintheEmployeeMagazine 0 5.000,00€-€ -€
3 SalesLadiesperDay 1 150,00€150,00€ 0 0 0 -€
4 AdvertisingBanneronGammaHomepageintheInternet 1 3.000,00€ 3.000,00€ 3.000,00€
5 Information/EducationFolderforStorePersonnel 1 18,00€18,00€ 0 0 0 -€
6 Information/EducationCardwithVenusVibranceDemoFolderwithLineUpExplanation 1 3,00€ 3,00€ 0 0 0 -€
7 Mailings:per100MMultiBrandMailingstoGammaCardHolders 1,7 10.000,00€17.000,00€ 0 17.000,00€
9 1/4ChepDisplaywith30Shaversand30Blades 1 35,00€35,00€ 1500 1500 52.500,00€
10 1/2ChepDisplaywith60Shaversand55Blades 1 55,00€55,00€ 500 0 500 27.500,00€
11 PermanentDisplay 1 120,00€120,00€ 0 0 0 -€
12 Feautre:incl.Preisabschlag 0 50.000,00€-€ 0 -€
100.000,00€
Budget 100.000,00€
Budget (Excel Sheet 1)
Measure Quantity Hyper Super Total
Internet Banner on
Gamma Store
Homepage
Mailings: per 100M
Card Holder
¼ Chep Display with
30 Shavers and 30
Blades
½ Chep Display with
60 Shavers and 55
Blades
1
1.7
500
1500
3.000€
17.000€
52.500€
27.500€
100.000€
Sales Management | March 19th 2013 9
Display Type #1
1 Fragrance
2 Color
3 Variety
4 Something New
5 Quickness
Display #1 Based on
Consumers‘ Decision
Drivers
4 Clear „NEW“ communication
2 Glimmering Gold
3 Quick Information on Display
(Innovation on Information)
1 Fragrance Dispenser
5 Small Flyer
Information Holder
Sales Management | March 19th 2013 10
Display Type #2
Display #2 to target
the Olay-only users
Communicating Venus
at the Olay Shelf
Small amount of
Venus raisers
displayed
Sales Management | March 19th 2013 11
Display Type #3
Display #3 V&O and
Olay Essentials Sister
Display
Places the two brands‘
products close to each
other
Optional product-
bundling offer
Sales Management | March 19th 2013 12
Agenda
What is the
Current
Situation?
What is our
Idea?
How does it
Work?
What are the
Benefits?
What are the
Next Steps?
Sales Management | March 19th 2013 13
What are your Benefits
Display #3 V&O and Olay
Essentials Sister Display
Display #2 to target the Olay-
only users
Display #1 Based on
Consumers‘ Decision Drivers
High expected Sales for
V&O
New Customers to Female
Grooming Category Cross-Category Growth
Sales Management | March 19th 2013 14
Agenda
What is the
Current
Situation?
What is our
Idea?
How does it
Work?
What are the
Benefits?
What are the
Next Steps?
Sales Management | March 19th 2013 15
Rebates 2013
Profit Margin (Excel Sheet 3)
FIXED FIXED
Name 2012 Name 2013 VenusBreeze Venus&Olay VenusBreeze Venus&Olay
8,82 10,44 8,98 11,45
RebateA 4,20% SpecialPartnerRebate 4,20% 0,3704 0,4385 0,3772 0,4809
RebateB 2,00% Long-termRelationshipRebate(+0,2%peryear) 2,20% 0,1764 0,2297 0,1796 0,2519
RebateC 5,00% ShelfDominanceComparedtoWilkinson 4,00% 0,4410 0,4176 0,4490 0,4580
RebateD>160.000 5,00% Quantity>100.000 3,00% 0,4410 0,3132 0,4490 0,3435
=InvoicePrice EUR 7,3912 9,0410 7,5252 9,9157
RebateE 5,00% SkontoI 5,00% 0,4410 0,5220 0,4490 0,5725
RebateF 3,30% SkontoII 3,30% 0,2911 0,3445 0,2963 0,3779
=Net/netPrice EUR 6,6591 8,1745 6,7799 8,9654
RSP EUR 9,95 12,99 10,95 14,99
TradeProfit EUR 1,7022 2,7414 2,4218 3,6313
Marginearned % 20,4% 25,1% 26,3% 28,8%
Razors Blades
Rebate Type 2013
Special Partner Rebate 4,20%
Long-term Relationship Rebate (+0,2% per year) 2,20%
Shelf Dominance Compared to Wilkinson 4,00%
Quantity >100.000 3,00%
= Invoice Price EUR
Skonto I 5,00%
Skonto II 3,30%
= Net/net Price EUR
Sales Management | March 19th 2013 16
Profit Margin 2013
Profit Margin (Excel Sheet 3)
FIXED FIXED
Name 2012 Name 2013 VenusBreeze Venus&Olay VenusBreeze Venus&Olay
8,82 10,44 8,98 11,45
RebateA 4,20% SpecialPartnerRebate 4,20% 0,3704 0,4385 0,3772 0,4809
RebateB 2,00% Long-termRelationshipRebate(+0,2%peryear) 2,20% 0,1764 0,2297 0,1796 0,2519
RebateC 5,00% ShelfDominanceComparedtoWilkinson 4,00% 0,4410 0,4176 0,4490 0,4580
RebateD>160.000 5,00% Quantity>100.000 3,00% 0,4410 0,3132 0,4490 0,3435
=InvoicePrice EUR 7,3912 9,0410 7,5252 9,9157
RebateE 5,00% SkontoI 5,00% 0,4410 0,5220 0,4490 0,5725
RebateF 3,30% SkontoII 3,30% 0,2911 0,3445 0,2963 0,3779
=Net/netPrice EUR 6,6591 8,1745 6,7799 8,9654
RSP EUR 9,95 12,99 10,95 14,99
TradeProfit EUR 1,7022 2,7414 2,4218 3,6313
Marginearned % 20,4% 25,1% 26,3% 28,8%
Razors Blades
Razors Blades
Venus Breeze Venus&Olay Venus Breeze Venus&Olay
8,82 10,44 8,98 11,45
0,3704 0,4385 0,3772 0,4809
0,1764 0,2297 0,1796 0,2519
0,4410 0,4176 0,4490 0,4580
0,4410 0,3132 0,4490 0,3435
7,3912 9,0410 7,5252 9,9157
0,4410 0,5220 0,4490 0,5725
0,2911 0,3445 0,2963 0,3779
6,6591 8,1745 6,7799 8,9654
9,95 12,99 10,95 14,99
1,7022 2,7414 2,4218 3,6313
20,4% 25,1% 26,3% 28,8%
Sales Management | March 19th 2013 17
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