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Archive for March, 2011

Sales directors – find out which half of your fieldforce budget is wasted 0

Posted on March 21, 2011 by Liz Rowell

Australian companies producing fast moving consumer goods spend literally hundreds of thousands of dollars each year on sales teams (either their own or from a field marketing agency) who visit supermarkets to check on product ranging and displays. Poor retailer compliance is a significant issue for most consumer goods suppliers, even when compliance is incentivised through trading terms.
However it is extremely difficult to assess the impact of these sales visits or to work out if they generate an acceptable return on the investment.

To make it worse, the field marketing industry is focused on making as many calls as possible – whether a store is normally compliant or not!

Most brand owners direct their field marketing resources to the stores with most at risk – those with highest historic sales. However up to 75% of the biggest stores are compliant when visited – this means that 3 in every 4 store visits are effectively a waste of time & money!
As a result Sales Directors need to ask some searching questions:

1. How can I ensure that my field resources are calling on outlets with the biggest opportunity rather than calling on the largest outlets as an ‘insurance policy’?
2. How can I increase promotional sales in the major Grocery multiples?
3. How can I improve the availability of my new product launches on day 1 of my campaign and ensure they stay on shelf?
4. How can I ensure that my field force is calling on the right stores & focusing on the appropriate activities?
5. How can I ensure that retailers will adhere to agreed planograms?
6. How effective is my sales team or my field marketing agency? What can I do to improve its impact?

20:20 RDI undertake intelligent analysis of store level EPoS to highlight the gaps and direct resources only to stores requiring a ‘fix’, cutting coverage costs & dramatically improving ROI. They are the only company to use predictive modelling for promotional and NPD performance by store. This enables persistently non compliant stores to be targeted and performance to be enhanced.

In many projects 20:20 have been able to reduce costs by up to 50% and still increase sales.

This is what we found from a recent effectiveness audit for a leading broker’s sales force supporting a major FMCG brand stocked in Woolworths and Coles with a potential sales value (size of prize) of $24 million per annum. 20:20 RDI analysed individual store EPOS data, against the records of store visits to determine the following:

▼ 14% of stores received fewer calls than was agreed with the brand owner

▲ 22% of stores were called on more often than agreed (sometimes much more often!) with no discernible sales benefit

■ Over 3 months, 300 stores received 2 visits in one day – according to the visit data. Why?

■ There was no real correlation between number of visits made and sales volumes
achieved. Of stores with 10 or more visits over an 8 week period, the top had an
average weekly sales value of $71,000, the bottom an average sales value of $8,000

So we identified which stores should be visited monthly or bi-monthly, instead of weekly or fortnightly (or twice daily) – creating significant potential savings

Then we looked at how make the sales force more effective

Identifying which stores would give increased distribution:

■ In Woolworths 80% of the additional opportunity (size of prize) was in just 42% of the stores visited

■ In Coles 80% of the size of prize was in just 38% of stores visited

Identifying which stores would give increased sales through better merchandising:

■ Highlight under-performing SKUs and ensure that number of facings and location in store are compliant with head office agreements

Identifying which stores are least likely to achieve expected uplifts during price promotions and adjust visit scheduling and frequency accordingly:

■ Effect of sales visits on promotional sales in one Woolworths promotion:
- Group of stores receiving 7 or more visits achieve a 154% uplift
- Control group of stores not visited at all achieves a 180% uplift!

Tracking speed to market of a new product launch

■ In 278 Coles stores, we found that the product had not been scanned at any time in the 13 week launch period.

■ visited Woolworths stores performed better than our non-visited control group – they started scanning the new product several weeks earlier on average

Identifying which stores had the biggest size of prize

■ Opportunity to increase sales does not correlate with the size of the store – often the biggest stores were found to be the best run, most compliant outlets, whilst the
potential to increase sales across a variety of sales driving actions was greater in
medium sized stores

Using 20:20 RDI’s online reporting tool clients can access regular ROI reports that show them the effect of every sales action allowing clients to compare field sales interventions with incremental sales generated to produce an accurate ROI. Plus they use a brand-specific Footfall Predictor model that deploys socio-demographic targeting & gravity modelling we can predict the ‘best’ outlets to call upon therefore ensure clients are getting the most impact for their sales visits.

In short, 20:20 RDI are confident that they can cut a client’s field sales spend and increase store sales, the company offers a truly unique and new system for the Australian market. Red Ark is the only advertising agency in Australia working with 20:20 RDI, because Red Ark is committed to delivering results for their FMCG clients.

20:20 RDI is a UK based company which is working with Red Ark Marketing in Australia to offer a unique system for grocery targeting and measurement which will reduce field sales costs & increase outlet sales.

Red Ark is an advertising agency specialising in developing integrated marketing campaigns that gently beckon customers down the path to purchase. Clients include Nestlé, Wyeth Nutrition and Mortgage Choice. Liz Rowell and Dale Burrows set up Red Ark in 2005 and the company has seen rapid growth since its inception, with a stream of new business wins happening over the last year alone. Red Ark is committed to producing results for their clients, so they look beyond the traditional remit of an advertising agency. Liz set up an exclusive alliance with UK 20:20 RDI to bring it to Australia to help FMCG clients maximise the effectiveness of their budgets. There’s a lot more to getting a product off the shelf in a supermarket than a 30’ TVC.

Sale sale sale at Passitforward Gifts 0

Posted on March 16, 2011 by Liz Rowell

Up to 50% off a fantastic range of gifts – for you or for a friend. A donation is made to one of 4 Australian charities with every purchase. Giftwrapping and card writing service. What’s not to love? Fill up your karma cart today.

Consumer confidence down significantly : ( 0

Posted on March 09, 2011 by Liz Rowell

The latest Westpac Consumer confidence survey has some sad news…… read more here

Find any recipe for anything anywhere, and tell your friends 0

Posted on March 03, 2011 by Liz Rowell

We love this site – foodlily.com. You can search for any kind of ingredient or meal occasion or pretty much anything. Or you can choose to lose them – gluten, sugar, fat etc etc. A bit of a gamechanger for search as well as for foodies.
Start searching here

Foodlily finds any recipe for you anywhere

Foodlily finds any recipe for you anywhere

20:20 RDI Retail Data analysis 0

Posted on March 01, 2011 by Liz Rowell

Get some real bang for your buck in the grocery channel

How 20:20 RDI and Red Ark can help improve ROI

How 20:20 RDI and Red Ark can help improve ROI

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