MARTEC International

Understanding Retail for Manufacturers, FMCG and CPG Companies How retailers buy products and how to sell to them effectively Objectives By the end of the class, you will be able to:

• Explain how to leverage the retailer’s organization structure and business processes to maximize your company’s sales potential

• Provide an understanding of the financial world retail buyers live in and how it affects their buying • Analyse the key metrics that retailers use to identify areas for improvement and use that knowledge to sell

more effectively • Factor the difference between seasonal and continuity merchandise into your account planning and

development • Describe how retailers construct ranges and use this knowledge to increase your potential so sell new

products into the account • Describe different consumer types, how they impact on a retailer’s operations and how your company might

help a retailer maximise their potential given their customer mix • Plan how you can help a retailer achieve his or her financial goals at least cost to your company • Explain the problems caused by the sales and stock building profile and identify some ways that can alleviate

the problems • Calculate open-to-buy and devise some tactics to get around OTB constraints • Describe how retailers’ different ownership models (e.g. public companies vs. private equity) impact their

decision making

Who Should Attend? This course is designed for everyone selling or marketing products to the retail industry. The following will benefit:

• Sales Directors • Sales Executives • Key and National Account Managers • Marketing Directors and Managers • Head of Retail Sales • Business Development Executives • Trade Development Executives

Course Leader

Brian Hume, Martec’s Managing Director and founder, will serve as lead instructor for this course. He is known and respected in Europe, North America and Asia Pacific as an authority on CPG, retailing and retail technology. He is a dynamic and knowledgeable speaker. Brian has consulted to some of the world’s leading retailers in areas such as business strategy, merchandise planning, merchandise management, supply chain, partnering between retailers and vendors, store operations and the use of technology to improve business performance.

Course Overview This course will provide detailed and practical guidance on selling to CPG companies and how to talk in their language and address their pain points. It will consist of a combination of instructor-led discussion, practical exercises and lectures led by a CPG and retail industry expert. All delegates will receive a pack containing all the slides used plus detailed notes.

CPG2

MARTEC International

Understanding Retail for Manufacturers, FMCG and CPG Companies

Agenda Retail organisation

• Typical organisation structures – large and small retailers

• Sourcing, buying and merchandising • Category management structure • Store operations, finance and marketing • Warehousing and distribution • CXO pains and bonus structures • Working the different levels • Building retail sales and profitability, how you can

help the retailer

Seasonal vs. continuity merchandise • Category management vs. merchandise

management • Lost sales estimation for continuity vs. seasonal

items Concept of a range or assortment

• Category / range roles • Good, Better, Best and price point architecture • Range width and depth – how buyers decide • Competitor price point analysis

Retail financials

• Retail profit and loss account • Balance sheet and cash flow • Difference between food and non-food retailers

Supply chain

• Supply chain vs. demand chain • Impact of stock build • Stock ownership types and their impact

Visual Merchandising

• Strategic space planning • Store layouts • Visual merchandising from the vendor perspective • Planograms • Signage • Merchandising aid

KPIs

• Sales ratios • Stock KPIs • Shrinkage • Margin KPIs • Markdowns • GMROS • GMROI

Assessing your performance in the account

• Retailers’ approaches to vendor management • Vendor score cards • Finding out how vendors are assessed

Impact of different consumer segments

• Segmentation of your typical consumers • Characteristics and retailer impact • How your company can contribute

Managing cash

• Gross margin • Co-op funds • Stock turn • Payment terms • Impact of cash flow on negotiations

Open to Buy

• The open to buy concept, how it works • What is means to be under bought or over

bought • Making the most of your opportunity when

OTB constrains you • When best to sell in new products

Ownership structures and their impact

• Main ownership structures • Impact on how retailers judge proposals

Martec International Ltd Martec House 40 High Street

TAUNTON Somerset

TA1 3PN, UK

+44 (0) 1823 333469

www.martec-international.com

In Company Training Martec delivers this program and a wide range of in-company training based on our extensive library of programs, which can be customised to meet specific needs. We provide various e-learning options. For more information please contact Frances Riseley on +44 (0)1823 333469 or email frances_riseley@martec-international.com

Companies that use Martec’s Learning Services: Martec trains retail sales and marketing teams for technology companies all over the world. Clients include:

• BT • Cisco • HP • Invista / Du Pont • Levi • Microsoft • Transitions Optical • Western Digital