Commercial Manager using CatMan Solution to Support Key Decisions and Growth by CatMan Solution A/S

COMMERCIAL MANAGER

Using CatMan®Solution to support key decisions and growth

Top-level management using CatMan®Solution. ey Account management using K CatMan®Solution. Sales management using CatMan®Solution with a field force focus. arketing and Category management M using CatMan®Solution.

Table of contents

Table of Contents Introduction............................................................................................................................................................. 4 1.0 Top level management using CatMan®Solution..............................................................................10 1.2 Dashboard to give management an always updated topline overview of POS....................10 1.3 Reports to give management a quick and sufficient analyses of POS development.........11 2.0 Key Account managers using CatMan®Solution..............................................................................22

2.1 Dashboard to give Key Account managers an always updated topline overview of POS........23

2.2 Suggested report to answer key questions related to POS sales and effective trends............24

2.3 Key KAM questions related to understanding and evaluating potential...............................27

2.5 Key KAM questions related to distribution....................................................................................29

2.7 Key KAM questions related to forecast and what we need to sell to “stay a head”............31

2.9 Key KAM questions related to lost sales and on shelves availability .....................................32

3.0 Sales management using CatMan®Solution with a field force focus ......................................35

3.1 Key sales management question to be answered......................................................................36

3.2 Suggested reports to manage sales cycle efforts and results..................................................36

3.3 Key sales management question to be answered related to growth potential...................40

3.5 Key Sales management question related to promotion management at local level..........42

3.7 Key Sales management question related to Zero Sales and On Shelves Availability ........44

3.9 OSA Evaluation – Stores report........................................................................................................45

3.10 Key Sales management question related to managing in-store inventory.........................49

3.12 Key Sales management question related to waste and shrinkage.......................................51

3.14 Key Sales management questions related to best practice understanding.......................52

3.16 Key Sales management question related to distribution........................................................55

4.0 Using CatMan®Solution as a marketing or category manager..................................................58

4.1 G eneral business performance questions to be answered when working with marketing............................................................................59

4.2 Dashboards to be used describing general brand development...........................................59

4.4 Monitoring market shares and competitors in CatMan®Solution..........................................66

4.5 Analyzing media performance and strategies in marketing.....................................................67

4.6 Managing and analyzing the results of innovations....................................................................70

4.7 Questions to be asked in relation to media management and optimization.......................70

4.8 Suggested reports to answer questions related to innovation...............................................70

Appendix - Defining potentials using CatMan®Solution......................................................................76

Introduction

CatManÂŽSolution is designed to handle vast amounts of complex data sets from many different data sources. Our mission is to transform data into knowledge, which can be used efficiently and business oriented at all levels of a company.

Introduction

Introduction A solution built to continuously supporting your business improvement culture

CatMan®Solution service Let our data factory manage, host and service your data sharing process. With a full CatMan®Solution service, we can support and automat the dull parts of the business decision process from strategy to execution within your company. As more and more data, both externally and internally, becomes available for all of us, key decision makers tends to lose the necessary and actionable overview in hundreds of difficult to manage and maintain Excel sheets. At CatMan Solution, we are committed to service your business with decisive and actionable knowledge based on several relevant data sources such as: • Own ERP and CRM data • EPOS data with different granularity and quality • Media data i.e. Facebook, Google, television, outdoor etc. • Demography data on regional and local level • Promotion and leaflet data • Etc. Our mission is to service your business, managing large and complexed data files from several data sources, in a smart and effective way, freeing up your time for taking decisions and execute effectively on your plans. See – Harvard business review – The Upside of Automating Part of Your Job

Introduction

CatMan Solution could become your “data machine” improving the quality and the speed of your commercial business processes. Our service is built around a series of concepts, linked together and directly related to different levels of the commercial organization such as: • Commercial Management = My Business • Sales Management = My Account and My Sales Force • Marketing and Category Management = My Brands

Concepts in CatMan Solution Business Performance

Business Development

Tracking and analyze your on-going business

Analyze key parameters creating actionable

performance throughout the total value chain.

best practice and understand the effect of

Improved performance

your execution.

Performance Management Status and ranking of results Development, benchmarking and potentials Better and more accurate prioritization

Promotion Management Effectiveness, uplift and baseline analyzes Promotion profitability.

of key resources.

Business profitability

Innovation Efficiency

Wholesaler profitability.

Improving the innovation process

Customer, banner and product profitability.

and new product introductions. StoreEvent and Store Pictures.

Price Optimization Price analyzes Price elasticity

Media effectiveness Media data, TRP analyses, Facebook Leaflet.

On Shelves Availability Estimating the lost value of out of stock

Introduction

Working guidelines - Introduction CatMan®Solution V3 is a cloud based web app, developed specific to ease your work with several data sources such as POS data, promotion data, pictures and market information – helping you to make factbased decisions easier. CatMan®Solution V3 is relevant for all functions within your company when it comes to commercial and or planning responsibilities. To make it effective for each employee, we have created different detail levels: a. The Dashboards are designed to give a fast end effective overview of the key parameters. Dashboards could and should be tailormade to your needs. We are using Power View from Microsoft, which enable us to create “dynamic” models and allowing you to export the Dashboards to PowerPoint (2010) and update the data directly from PowerPoint, when presenting for your colleagues. b. The Standard Reports consist of a series of best practice standard reports, which is always updated and ready to use - even if you are only using a report once or twice a year. The standard reports are used for analyzing development, performance, potentials and planning matters, in a fast and effective way. c. Direct access to the data via Excel – In CatMan®Solution V3, you have directly access to data via predefined Excel models that can be sliced, to make your own individual and tailored indebts adhoc analysis when needed.

Way of working To guide you through how you and your company could use CatMan®Solution to become more effective, we will address “way of working with CatMan®Solution” in three ways: 1. From strategy to execution:

a. Management process, focusing on a best practice solution in an FMCG-company in Denmark using CatMan®Solution.

2. The commercial manager using CatMan®Solution to support key decisions and growth:

Toplevel management using CatMan®Solution.

Key Account management using CatMan®Solution.

Sales management using CatMan®Solution with a field force focus.

Marketing and Category management using CatMan®Solution.

3. Concepts in CatMan®Solution to improve your business:

Promotion management

Price optimization

On shelves availability and distribution

Innovation efficiency – New products, new concepts, new space etc.

Media effectiveness

Profitability

Appendix - Defining potential

1.0 Top level management using CatManÂŽSolution

1.0 Top level management using CatMan速Solution

1.0 Top level management using CatMan速Solution 1.1 Using CatMan速Solution as a top manager Key questions related to business development 1. How is business developing at POS against our targets? 2. In which areas, do we believe that we have potential to do even better?

Customers and Channels

Categories and Brands

Regions and Areas

3. How well are we managing our marketing investments?

Promotion effectiveness

New product introductions

1.2 Dashboard to give management an always updated topline overview of POS The dashboards are dynamic using the latest Microsoft technology integrate directly to PowerPoint making it very easy to work with. Dashboards in CatMan速Solution are tailor made to your company needs.

Just click on the DS-SAP bar and all the graphs in the dashboard adjust to DS-SAP POS data. Click on Brand 6 and get all graphs in the Dashboard adjusted to the sales on brand 6. Double click on COOP and move to banner level etc.

1.0 Top level management using CatManÂŽSolution

1.3 Reports to give management a quick and sufficient analyses of POS development There are several reports, which could cover the top management needs in CatManÂŽSolution. We will recommend the following reports. 1. My Business report 2. Status Report 3. Promotion ranking report 4. Business profitability 5. NPI report

1.3.1 My Business report The My Business report gives you a fast and easy overview, showing your business performance across customers and POS.

1.0 Top level management using CatMan®Solution

A series of parameters could be used to change the view you need. You can even decide to run the report using up to 3 different “category trees” allowing you to analyze your category performance the way you “think category” in your company. An easy to use and intuitive menu makes it both fast and effective to analyze the development for different perspective without getting lost in large end difficult to manage Excel spreadsheets.

1.3.2 The Status Report The Status Report gives you a good status overview focusing on POS. To some extent, the Status Report and the Development Report can substitute each other, depending on your area of interest and your approach to analyzing POS. The Status Report is very easy to twist, whether you have a brand perspective, a customer perspective, a regional perspective or a sales area perspective. On the next pages, you will find examples of a brand perspective, a customer perspective and a sales area perspective.

1.0 Top level management using CatManÂŽSolution

Brand perspective If you are working as a brand or category manager the status report gives you a good picture of your brand status at a specific customer or banner. You can filter the report in a way which allows you to compare two periods against each other focus on both a longterm perspective and a shortterm perspective. In the case below we have filtered on year to date status compared to the last 4 weeks. Analyzing main brand status on regional and banner level.

Customer perspective If you are working as a sales manager or a key account manager, the status report gives you a good picture of customer and banner status. You can filter the report in a way which allows you to compare two periods against each other focus on both a longterm perspective and a shortterm perspective. In the case below, we have filtered on year to date status compared to the last 4 weeks. Analyzing banner status on regional and store level.

1.0 Top level management using CatManÂŽSolution

Sales area perspective If you are working as a sales manager or as a sales rep, the status report gives you a good picture of the status in the different sales areas. You can filter the report in a way which allows you to compare two periods against each other focus on both a longterm perspective and a shortterm perspective. In the case below we have filtered on year to date status compared to the last 4 weeks. Analyzing sales rep status on banner and store level.

1.0 Top level management using CatMan®Solution

1.3.3 Promotion ranking Our integrated promotion analysis, combine several data sources to analyze promotion effectiveness focusing on KPI’s such as promotion lift factor, base line sales, actual price reduction, calculated customer profit, trade investments, own gross and net profit. Below is an actual case analyzing promotion 1q 2016 in Denmark:

In the report, you can create a graph that links the various KPI’s, giving you different view on each promotion run in the period you have selected. In the case above, you get a picture showing win–win promotions from a profit perspective. If you mouse over the circles in the graph, you get the promotion identification and the type of promotion that you have run. In this case, it is important to understand or maybe even try avoid the “type of promotions”, which do not add any profit to the customer/chain. It might not be sustainable in the long run.

1.0 Top level management using CatManÂŽSolution

1.3.4 Profitability report The profitability report is typically a top management report, giving the top management a fast overview of the business performance relations between the company and its key customers and sales channels.

1.0 Top level management using CatMan®Solution

1.3.5 NPI report Managing and optimizing innovations are key to top management. In CatMan®Solution we have three specific reports, which could and should be used to track innovation effectiveness at POS = Moment of truth. 1. The NPI report – New Product Introduction 2. StoreEvent report 3. StorePictures report The NPI report allows you to track and analyze the POS penetration of your new products/concepts etc. in an effective and very fast way. You can monitor and follow the development week by week with just 2 days’ delay, which gives you time to react and adjust parameters before it is too late.

1.0 Top level management using CatMan®Solution

Launching 3 new SKU’s in the category last year week 17:

New SKU’s are not cannibalizing the category, sales first 10 weeks is “on top”. After three weeks, the 3 new SKU’s are out performing the benchmark products in the category. There might be an issue with 1 of the new SKU’s - not performing at the same level as the 2 best SKU’s.

1.0 Top level management using CatMan®Solution

The new product is penetrating the chosen banner both fast and effectively.

Full house means that 89 stores selling all 3 SKU’s every week = 267. A total of zero sales at 56 in week 27 shows a potential sales increase of 21% or that we probably have one of the new SKU’s not performing in all stores.

We can only identify 1 large store, where we have real zero sales issues meaning that they do not carry necessary stock of our new products. Unfortunately, we have 34 stores with relative low sales during the launch period including a high level of zero sales days, meaning that the new SKU’s is not driving growth in those specific stores. Relevant actions should be identified to avoid delisting in those stores at a later stage.

A SOLUTION TO IMPROVE YOUR BUSINESS

2.0 Key Account managers using CatMan®Solution

2.0 Key Account managers using CatMan®Solution Key questions related to Key Account management and POS related to sales effectiveness and trends: 1. How has my key customer developed during the last quarter? 2. How has the different channels and banners developed during the last quarter? 3. How is our product Y impacting the total category development in banner X? 4. How is sales effectiveness developing in banner X? 5. How is banner X developing compared to the total account? 6. What seems to be driving the development, our efforts, the category growth, traffic or general account development? 7. Are there any obvious development issues or opportunities in banner X? If yes on which categories? 8. What is the trend, increasing or decreasing position in the banner?

2.1 Dashboard to give Key Account managers an always updated topline overview of POS The dashboards are dynamic using the latest Microsoft technology integrate directly to Power Point making it very easy to work with.

Dashboards in CatMan®Solution are tailor made for your company needs.

2.0 Key Account managers using CatMan®Solution

Click Euro-Spar and all the graphs adjust to Euro-Spar.

The line chart will always show what we are “up against” in terms of needed POS to stay at index 100 this year. Making it easy to understand why we are behind thus year on subcategory 24. Last year, we obviously had two successful activities/promotions, which we have not had this year, which explains why we are lacking sales in Dagrofa.

2.2 Suggested report to answer key questions related to POS sales and effective trends To answer the eight questions above as a Key Account Manager, we recommend to use: 1. The Status Report 2. The Development report

2.2.1 The Status report The Status report gives you a good status overview focusing on POS. To some extent, the Status Report and the Development report can substitute each other depending on your area of interest and your approach to analyzing POS. The Status Report is very easy to turn, whether you have a brand perspective, a customer perspective, a regional perspective or a sales area perspective.

2.0 Key Account managers using CatManÂŽSolution

The Status Report makes it easy to evaluate different periods of sales performance against each other and to view different issues and opportunities related to key accounts, channels, banners, brands, products, regions, and areas, in a fast and very effective way, saving a lot time using the CatManÂŽSolution services. Customer and Key account perspective If you are working as a Key Account manager the, status report gives you a good picture of the status in the different sales areas. You can filter the report in a way, which allows you to compare two periods against each other focus on both a long term perspective and a short term perspective. In the case below we have filtered on year to date status compared to the last 4 weeks. Analyzing banners and regions down to individual stores.

2.0 Key Account managers using CatMan®Solution

Brand perspective If you are working as a brand or category manager, the status report gives you a good picture of your brand status at a specific customer or banner. You can filter the report in a way, which allows you to compare two periods against each other focus on both a longterm perspective and a shortterm perspective. In the case below, we have filtered on year to date status compared to the last 4 weeks. Analyzing main brand status on regional and banner level.

2.2.2 The Development report The development report is used to analyze development week-by-week focusing on specific POS situations, such as Customers, Brands, Product segments, Banners, Regions, Sales reps and individual stores. If you have access to leaflet data, just press one of the week in the development report and you will be transferred directly to all leaflet analysis including “pictures” of your products presence in the “leaflet of the week”.

2.0 Key Account managers using CatManÂŽSolution

The report has many different parameters making it possible to run several development reports. Above and below you see a development report where we have focused on Sales Value, Sales Units, Average consumer selling price, Promotion sales, Promotion share week by week and the in-store development in inventory.

2.3 Key KAM questions related to understanding and evaluating potential 1. What is the sales growth potential at my key accounts from a?

Sales effectiveness perspective

Category share perspective

Promotion lift perspective

Sales index perspective

2. Which potential seems most relevant to focus on at my key accounts and why? 3. How is that potential split between banners and channels? 4. Which banner has the largest sales effectiveness potential? 5. Are there any regional issues and opportunities related to our potential? 6. List of the â&#x20AC;&#x153;top 25 storesâ&#x20AC;? looking at the potential?

2.0 Key Account managers using CatMan®Solution

2.4 Suggested report to answer key questions related to POS sales And understanding potential. To answer the six questions above as a Key Account Manager, we recommend to use: 1. The Potential Finder report

In CatMan®Solution V3, we are using 4 different kind of potentials: • Sales per 1000 • Sales Value Index • Share of Category • Promotion lift For definition and calculations please see appendix.

2.4.1 Potential Finder report In the Potential Finder report, get a quick overview of different potentials related to sales value index, sales volume index, sales effectiveness, category share, and promo unit pressure.

2.0 Key Account managers using CatManÂŽSolution

You can easily create an â&#x20AC;&#x153;everything equalâ&#x20AC;? prioritizing list. Below, you see a case with top 25 potential stores ranked after sales unit potential showing that there are some low hanging fruits indication that could increase sales volume by 24% focusing on 25 prioritized shops. To do analyses like this, using Excel would take a lot of time and data management, and to be successful in utilizing the potential, you would need to monitor the ongoing development just making the approach to manage the time consuming. Instead many Key Account managers just close their eyes to the issues and opportunities, when it comes to estimating potential, build on best case performance understanding.

2.5 Key KAM questions related to distribution 1. Do we have any distribution issues in banner X? 2. On which products, do we have distribution issues? 3. How well is our new product K distributed 3 weeks after our launch?

2.6 Suggested reports in order to answer key questions related to distribution To answer the three questions above as a Key Account Manager, we recommend to use: 1. Numeric distribution report 2. Numeric distribution potential report

2.0 Key Account managers using CatManÂŽSolution

2.6.1 The Numeric distribution report The Numeric distribution gives you a week-by-week distribution overview, banner-by-banner. It is a fast and effective solution that makes it possible to follow distribution development close and effectively. And if you combine the Numeric distribution report with the Zero Sales Potential, you can evaluate the lost sales and prioritize and direct your efforts in improving the distribution.

Besides giving you and overview of distribution, the Numeric Distribution Potential report also calculates the estimated theoretical value of lost distribution, making it much easier to priorities needed efforts to improve the distribution.

2.0 Key Account managers using CatMan®Solution

The report is updated once a week, making it one of the fastest and most effective ways to monitor distribution, when you have access to POS data on at least a weekly basis.

2.7 Key KAM questions related to forecast and what we need to sell to “stay a head” 1. What are we “up against” in terms of what we need to sell to stay above index 100? 2. What could we expect to sell and what should we forecast?

2.8 Suggested reports to answer key questions to forecast 1. Chain - Order planning report 2. Product Sales forecast report

2.8.1 The Chain - Order Planning report With the Chain - Order Planning report, you get a clear view on sales development in different time slots such a 4 weeks, 8 weeks and 12 weeks, giving you an indication of the degree of sales challenges you are fazing in the coming period.

2.0 Key Account managers using CatManÂŽSolution

2.8.2 The Product Sales forecast report The Product Sales Forecast report support your forecast efforts in a smart and effective way, combining actual and historical sales facts by SKU.

2.9 Key KAM questions related to lost sales and on shelves availability 1. Do we have any issues or opportunities with lost sales in my key account? 2. If yes, what is the value of the lost sales? 3. What could be the reason for the lost sales?

2.0 Key Account managers using CatMan®Solution

2.10 Dashboard for Key Account managers - the opportunity to monitor the zero sales development and the lost sales because of zero sales Below, you see a dashboard showing the numeric sales distribution per day in different banners and the related to average sales value last 4 weeks. We can see that “SuperBrugsen, DagligBrugsen and Fakta” has a relative high sale, but they also have relative many zero sales days on specific SKU’s.

The graph below shows the value of the zero sales incidents by SKUs:

2.0 Key Account managers using CatMan®Solution

2.11 Suggested reports in order to answer key questions to lost sales and on shelves availability In CatMan®Solution we have a concept focusing on improving on shelves availability, minimizing zero sales situations consisting of 7 different reports: 1. Zero Sales Focus 2. Zero Sales Potential 3. Zero Sales 4. My Store Alert – OSA Products 5. OSA Evaluation – Products 6. OSA Evaluation – Promotions 7. OSA Evaluation - Stores The 7 reports, as a package, are a unique setup to improve business. If and when you decide to focus on OSA, we recommend you to contact our consultants to set up a monitoring process, which will be suited for your specific needs.

3.0 Sales management using CatManÂŽSolution with a field force focus

3.0 Sales management using CatMan®Solution with a field force focus

3.0 Sales management using CatMan®Solution with a field force focus The sales management module is set up to support management in running and optimizing efforts on a local level, focus on POS by generating relevant and actionable knowledge about the “moment of truths” – What is actually the effect and the quality of the company execution at the POS, when consumers and shoppers take their “final” buying decision?

3.1 Key sales management question to be answered 1. How did we perform during the previous sales cycle focusing on:

a. Customers

Channels and banners

Regions and sales areas

2. What has been the key drivers to good performance versus poor performance?

3.2 Suggested reports to manage sales cycle efforts and results To understand true sales performance store-by-store, we recommend to use: 1. Sales Management report

Evaluate POS across customers, banners, regions and sales areas

2. Store Report 3. My Stores Status report

Detailed analyses focusing on a specific sales area and stores

3.2.1 The Sales Management report Using the Sales Management report, gives you a good understanding of performances and an indication of where there might be “low hanging fruits”.

Evaluating total sales value by account focusing on sales effectiveness and split by banner target.

3.0 Sales management using CatManÂŽSolution with a field force focus

Evaluating total sales value by sales rep and or regions focusing on sales effectiveness related to a weighted target, either a break down target or a build up.

3.0 Sales management using CatManÂŽSolution with a field force focus

Analyzing sales by sales rep focusing on sales effectiveness banner by banner and store by store.

3.0 Sales management using CatManÂŽSolution with a field force focus

3.2.2 The Store Report The Store Report is designed to give you the same type of overview as the Sales Management report, which of the two reports you decide to use, is a matter of â&#x20AC;&#x153;tasteâ&#x20AC;?.

3.2.3 My Store - Status report This report is designed to give an in-depts. understanding of business performance in each sales area. With the My Stores Status report, it is relatively easy to get an overview of the business performance store by store in each area of sales.

If you mouse over the bubbles, in the graph above, you will see that Kvickly Varde used to be a good performing store, but the first part of 2016 has been difficult with a relative low sales index, which improves significantly the last 4 weeks.

3.0 Sales management using CatMan®Solution with a field force focus

3.3 Key sales management question to be answered related to growth potential 1. Where do we have “low hanging fruits” growth potential at POS-level?

3.4 Suggested report to answer key question related to POS sales and understanding potential To answer the question about “low hanging fruits” and potential we recommend to use: 1. The Potential Finder report. In CatMan®Solution V3, we are using 4 different kind of potentials: • Sales per 1000 • Sales Value Index • Share of Category • Promotion lift For definition and calculations please see the appendix.

3.4.1 Potential Finder report

3.0 Sales management using CatMan®Solution with a field force focus

Get a quick overview of different potentials related to Sales value index, sales volume index, sales effectiveness, category share, and promo unit pressure, in the Potential Finder report.

You can easily create an “everything equal” prioritizing list. Below, you can read about a case with top 25 potential stores ranked after sales unit potential, showing that there is some low hanging fruits indication that could increase sales volume by 24% focusing on 25 prioritized shops. This type of report, “the potential finder” could of cause be made “by hand” using excel. Our experience shows that if you try to manage and organizing your running potential using Excel, you will end up spending a lot of time on data management and update. Time which could have been used utilizing the potential instead!!

3.0 Sales management using CatMan®Solution with a field force focus

3.5 Key Sales management question related to promotion management at local level 1. How has the last 8 weeks’ promotions performed at store level? Does the performance generate any actions related to planned promotions during the next sales cycle?

3.6 Suggested reports to answer promotion related questions 1. Manual Promotion Evaluation 2. Manual Promotion Evaluation by Store 3. Promotion Store Ranking Basic

3.6.1 Manual Promotion evaluation report The Manual Promotion evaluation report gives you a quick indication and overview of your promotion effectiveness. The report is based on math’s and it proposes weeks of promotions based on deviations in sales and prizing (if the proposal missed a couple of promotion from real live you can always update the reports and all KPI’s will be adjusted accordingly). Baseline sales is calculated baes on weeks without promotion activities and it is up to you to decide the number of weeks which the average baseline sales should be calculated on – i.e 4, 8 12 or 26 weeks. An important KPI in this report is the lift factor estimating the sales effectiveness of the specific promotion. Below you can see that the 3-week promotion from week 53 to week 2 has been relative effective generating a sales unit lift of 4,5 in week 1.

3.0 Sales management using CatManÂŽSolution with a field force focus

If you click on a specific promotion week in the table, you will get a model showing the spread in promotion lift for all the individual stores participating in the promotion. Below you can see that the average lift is 4,5 but the spread in promotion lift varies by store from below 1 to almost 14 times normal sales pr. Week. Each dot represents a store. As you will notice 32 store has an average lift above 4,5 and 47 stores has a sales lift below 4,5. If you open the stores below 4,5 you get a ranked list with all the 47 stores and their individual performance. Analyzing this situation, it becomes relative clear that even though the promotion was perceived as good, there is still room for improvement and sales increases understanding the more local opportunities. To do so, you can open a development report store by store just by clicking on the store in the Manual Promotion Evaluation by Store

3.0 Sales management using CatMan®Solution with a field force focus

3.6.2 Promotion Store Ranking Basic With the Promotion Store Ranking Basic report you can analyze promotions in detail store-by-store. This gives the regional manager or the sales rep a unique insight to discuss promotion performance with the individual store, when it is appropriate and when it can add value and generate even better promotion results.

3.7 Key Sales management question related to Zero Sales and On Shelves Availability 1. Do we have any Zero Sales issues related to key SKU’s, which needs to be managed?

3.8 Suggested reports in order to manage and analyze OSA issues and opportunities 1. OSA Evaluation – Products 2. OSA Evaluation – Stores 3. OSA Evaluation – Promotions 4. My Store Alert – OSA 5. Zero Sale Focus report

a. The Zero Sale Focus report should be used as a “stand alone report”. It is not a part of the OSA concept, but a very effective report, when it comes to analyzing zero sales potential.

3.8.1 OSA Evaluation – Products report The OSA Evaluation – Products report is used to track and monitor development in zero sales days from one period to another. The report is a very effective tool to track, if the company is able to manage and minimize zero sales day on critical SKUs. A zero sales day is defined as an opening day, where our product (SKU) is not sold in the store. A. 1 store + 1 SKU + 1 opening day = no sale = 1 zero sales day B. 10 stores + 2 SKU + 10 days = no sales = 200 zero sales days Zero sales days will (probably) never become zero. Even some of the largest SKUs such Kærgården, Letmælk, Stryhns leverpostej, Haribo Matador mix etc. experience zero sales days. Each company has to decide an acceptable level of zero sales days, and if that level is excited, CatMan®Solution can support ad hoc efforts improving the zero sales situation.

3.0 Sales management using CatMan®Solution with a field force focus

If needed, CatMan can support OSA projects with consultants and get experience with how to manage a project and how to make sure that the objectives are reached.

3.9 OSA Evaluation – Stores report The OSA Evaluation – Stores report ranks all the stores, which you have selected to monitor and working with to optimize OSA. Below you see that zero sales day, unfortunately, have increased for period 1 to period 2. Even though, there is 424 more zero sales days in total and you can see that Kvickly Albertslund has 7 less zero sales days in period 2

3.0 Sales management using CatManÂŽSolution with a field force focus

3.9.1 The OSA Evaluation â&#x20AC;&#x201C; Promotion report If you are having issues with zero sales on promotions, the OSA Evaluation - Promotion report makes it easy to track zero sales on promotions. You can even track the development from promotion to promotion, if you want to analyze and understand progress and quality of execution.

Below and on the next page, you get a list of stores.

3.0 Sales management using CatManÂŽSolution with a field force focus

3.9.2 My Stores Alert â&#x20AC;&#x201C; OSA report Below, you find the My Stores Alert - OSA report. This report is used to track, manage and develop OSA on local level, region-by-region, store-by-store.

3.0 Sales management using CatMan®Solution with a field force focus

3.9.3 The Zero Sale Focus report The Zero Sale Focus report should be used as a “stand alone report”. It is not a part of the OSA concept, but a very effective report, when it comes to analyzing zero sales potential.

You can filter and sort the report in several ways and on the second page, you can open each store or product, depending on what you want to analyze.

3.0 Sales management using CatMan®Solution with a field force focus

3.10 Key Sales management question related to managing in-store inventory 1. Do we have any inventory challenges at key SKUs?

3.11 Suggested reports to manage and analyze inventory issues and opportunities 1. Inventory Alert - report 2. Inventory Chain - report 3. Inventory Development - report 4. Inventory Products - report 5. Inventory Store - report

3.11.1 Inventory Alert report The Inventory Alert report gives you a fast list of inventory issues, focusing on slow movers split on SKUs, sales areas and stores. An easy way to save time and to stay alert in relation to “upcoming” inventory issues.

3.11.2 Inventory Chain report Using the inventory chain report, you get the inventory at a given week at chain, store and product level. The report allows you to evaluate the inventory at a given week, compared to the development during a relevant period and to compare with zero sales SKU by SKU during the selected period.

3.0 Sales management using CatManÂŽSolution with a field force focus

3.11.3 Inventory Development report Evaluate inventory development over time down to critical SKU level, sales area by sales area.

3.11.4 Inventory Products report Apparently, there is 20 weeks of sales on in-store inventory for one of the top 20 selling SKUs. This information could be decisive, when it comes to forecast and production planning. This, by the way, is also a product with limited durability.

3.0 Sales management using CatMan®Solution with a field force focus

3.11.5 Inventory Store Report The Inventory Store Report is an excellent report for sales reps that gives them a quick and fast overview of inventory, store by store in the district. In the case below, it might be easier to sell to Føtex Viby on the next sales cycle than to Føtex Frederiks Alle.

3.12 Key Sales management question related to waste and shrinkage 1. Do we have any waste and shrinkage issues and how big are they?

3.13 S uggested report to manage and analyze waste and shrinkage issues and opportunities issues and opportunities 1. Waste and Shrinkage report

3.0 Sales management using CatMan®Solution with a field force focus

3.13.1 Waste and Shrinkage report The Waste and Shrinkage report is very easy and effective to work with, and if you are aiming to improve your waste and shrinkage situation, the report below could help you save time and become more effective. The report will display both scrapping, shrinkage and sales value of each store and products – and display Top 15 Stores/Products graphically.

3.14 Key Sales management questions related to best practice understanding 1. How does the ranking by sales areas from best practice to worst performing looks like? 2. How does best practice execution look like and what does it take to copy it?

3.15 Suggested reports to manage and analyze best practice 1. Sales Rep Ranking report 2. Store Picture report 3. Store Event report

3.15.1 The Sales Rep Ranking report With the Sales Rep Ranking report, you always ranking your sales areas after performance from “best” to “worst” scenario.

3.0 Sales management using CatMan®Solution with a field force focus

3.15.2 The Store Picture Report The Store Picture Report is a part of the StorePicture module, allowing you to visualize the quality of execution together with several relevant key performance indicators. When you try to do this, using Excel and standard “picture management” software, you will end up spending a tremendous time just managing data and pictures – or worst case, you will simply avoid doing it because it takes to much of your limited time. With CatMan Store Picture, all you need is to run the reports. Relevant KPI’s proves that this is a best case scenario

On the graph below it is clear that the in-store activity has moved the store from a rank 30 to number 2 in the chain.

3.0 Sales management using CatMan®Solution with a field force focus

3.15.3 The Store Event Report The Store Event Report gives the sales management team an effective way to monitor the effect and the value of most kind of innovations. Below is a case, where a supplier and a banner decides to develop a new and better category “set up” – new adjusted assortment, new space, new in store placement, new price positioning. Before just launching the concept in 400 stores, the concept was tested in 5 representative stores. The Store Event Report and ongoing monitoring was set up in less than 5 minutes, making the analysis and needed facts follow-up a quick and easy to perform task.

3.0 Sales management using CatManÂŽSolution with a field force focus

3.16 Key Sales management question related to distribution 1. Do we have any distribution issues?

3.16.1 Numeric distribution Potential The numeric distribution report gives you the numeric distribution week by week. In this report the distribution is calculated if a product/SKU have not been sold in the store during a week, we count the zero sales as missing distribution. Equal to the situation that the product has not been available in the store in the specific week.

In the report below, we have calculated the sales value of 100 % - product by product, store by store. You can easily adjust the report in the menu and focus specifically on your areas of distribution opportunities.

FROM BIG DATA TO ACTIONABLE KNOWLEDGE

4.0 Using CatManÂŽSolution as a marketing or category manager

4.0 Using CatMan®Solution as a marketing or category manager

4.0 Using CatMan®Solution as a marketing or category manager 4.1 General business performance questions to be answered when working with marketing 1. How have my brands developed, during the last quarter in from a POS perspective? 2. How has the sales effectiveness on my brands developed? 3. How are my brands in banner X developing, compared to the total account? 4. Are there any obvious development issues or opportunities on my brands – If yes, are they related to specific channels/banners? 5. What is the trend? Increasing or decreasing position? 6. How is my brand developing compared to last year? 7. How does the development in one brand/SKU impact the development in another brand/SKU? 8. What will be the year result for brand X – everything equal?

4.2 Dashboards to be used describing general brand development Below you have a dashboard filtered on main brand giving you a dynamic overview on how sales are developing brand by brand spilt into region and weeks. Furthermore, you have a dashboard indicating which brand are driving your growth and from which regions your growth are generated. We are using Microsoft technology giving you the technical features build into Microsoft Power View and Microsoft Power BI.

4.0 Using CatManÂŽSolution as a marketing or category manager

4.3 Suggested reports to answer general performance questions To make a deeper analysis of the questions in 4.1, as a Category or brand manager you could use the following reports: 1. Status Report 2. Development report 3. Brand Ranking report 4. Product Ranking report 5. Quadrant Analysis â&#x20AC;&#x201C; Product Dimension report 6. Quadrant Analysis â&#x20AC;&#x201C; Store Dimension report 7. Development Compare report 8. Product Sales Forecast report

4.3.1 The Status Report If you are working as a brand or category manager, the status report gives you a good picture of your brand status at a specific customer or banner. You can filter the report in a way which allows you to compare two periods against each other focus on both a longterm perspective and a shortterm perspective. In the case below, we have filtered on year to date status compared to the last 4 weeks. Analyzing main brand status on regional and banner level. If you want to grow your brand as a category or brand manager, very often your growth potential is defined on a regional level. Understanding the development and the potential at regional level often makes the results of the analyses more action able.

4.0 Using CatManÂŽSolution as a marketing or category manager

4.3.2 The Development report As a brand or category manager, the development report gives you a good platform to analyze development week by week and to focus on seasonality development year on year. If you have the necessary data granularity in your data, you can: A. Follow how specific brands or products impact category development over time B. Analyze split between normal and promotion sales C. Measure and analyze development in in-store inventory week by week Billede 92-Development

4.0 Using CatMan®Solution as a marketing or category manager

4.3.3 Brand Ranking report The Brand Ranking report rank your brand and products after sales value, giving you an easy overview when it comes to understanding the “trade value” of specific brands and SKUs. Using the brand ranking reports also gives you an easy access to real average consumer selling prices during a selected period.

4.3.4 The Product Ranking report

4.0 Using CatManÂŽSolution as a marketing or category manager

4.3.5 Development - Compare report The development compare report makes it possible to make easy and fast compression between the development of two variables such as: 1. Brand 1 compared to brand 2 2. Product X compared to product y 3. Organic products compared to standard products 4. Category A compared to category B

4.0 Using CatManÂŽSolution as a marketing or category manager

4.3.6 Product Sales Forecast report The Product Sales Forecast report, allows you to compare the week by week development with last year and to predict where you will end up everything equal by year end. If you have the promotion advanced module in CatMan Solution, the product sales forecast report will automatically generate a year to go estimate based on: 1. Planned and accepted promotions and activities in the future (year to go). 2. Baseline sales calculated as historical sales in periods without promotion activities. Having made an annual brand plan including planned promotion activities per customer and banner, could give you a relative qualified estimate for the full year already week 1.

4.0 Using CatManÂŽSolution as a marketing or category manager

4.3.7 Different types of quadrant analyses In CatMan Solution you will find several quadrants analyzes making it easier to identify four strategical or tactical challenges or opportunities such as: 1. Relative large products / regions / banners / stores etc. with a relative high growth 2. Relative large products / regions / banners / stores etc. with no growth or decline 3. Relative small products / regions / banners / stores etc. with high growth 4. Relative small products / regions / banners / stores etc. with no growth or decline

4.0 Using CatManÂŽSolution as a marketing or category manager

4.4 Monitoring market shares and competitors in CatManÂŽSolution In our part of the world many, companies are using Nielsen to track marked shares and trends. Several of our clients today upload their Nielsen data into CatMan Solution creating synergy between several data sources and making access to the data and the knowledge easier and more effective. If you have access to market share and competitor information in the market, we have a market share and competitor module in CatManÂŽSolution containing up to 17 different reports:

The full report package makes it possible to save time on data management, allowing marketing to spend the time on analyzing and understand the issues and opportunities. With Nielsen, GFK or competitive POS in the solution, marketing and the whole organization can easily work together, analyzing total market development, category development and competitive strategies etc.

4.4.1 Nielsen - Category Scorecard

4.0 Using CatManÂŽSolution as a marketing or category manager

4.4.2 Nielsen - Category Organigram

4.4.3 Nielsen - Market Cockpit

4.5 Analyzing media performance and strategies in marketing 4.5.1 Questions to be asked in relation to media management and optimization 1. How does my media investments impact sales on brand A? 2. What happens to our sales on brand A, when competitors aggressively promote their brand X on media? 3. How good are we in executing our social media strategies and tactics? 4. How well is our social media tactics executed and how does it impact our sales? 5. What about promotion and trade folders â&#x20AC;&#x201C; how does that work â&#x20AC;&#x201C; and how does our investment in trade promotions pay off?

4.0 Using CatMan®Solution as a marketing or category manager

4.5.2 Suggested reports in order to answer questions related to media strategies We have a series of media reports and a direct link from CatMan®Solution to leaflet data used in the Nordic FMCG market. To answer the questions above, as a category or brand manager, you could use the following reports: 1. Development report with link to leaflet data 2. Price Compare report with link to leaflet data 3. Media versus POS report 4. Facebook Insight report

4.5.3 Media versus POS report Depending on the granularity of your media data CatMan can offer a series of reports where we combine: 1. Media data

GRP / TRP

Brand awareness

Brand loyalty

Buying intention

e. Etc.

2. ERP data

b. Promotions

Netto media investments by “channel”

3. POS data

Sell out

Combining the three data sources makes it possible to track and estimate the sales effectiveness of different media efforts and creative solutions etc.

4.0 Using CatManÂŽSolution as a marketing or category manager

4.5.4 The Facebook Insight report The Facebook module in CatMan gives you a Facebook cockpit combine with POS data showing you the relation between Facebook activities and your sales.

4.5.5 Leaflet data module â&#x20AC;&#x201C; Nordic FMCG opportunity In the Nordic area, many FMCG suppliers are using leaf data to analyze and track their leaflet impact. Adding leaflet data to CatMan gives you a new and extra dimension to promotion analyses being able to actually combining leaflet impact with your promotion P&L using the promotion advanced module.

4.0 Using CatMan®Solution as a marketing or category manager

4.6 Managing and analyzing the results of innovations The innovation efficiency concept consists of 3 different modules and 6 reports, allowing you to manage and analyze the sales effects of innovations: 1. New Product Introduction

The NPI report

2. StoreEvent

Store Event Chain report

Event Store Ranking report

Event Store report

3. StorePicture

Store Picture report

Store Picture Scorecard

Using one or more of the 3 modules, gives you an effective opportunity to track and analyze the quality related to your innovations, whether it is new products, new segments, new categories, new space, new planograms, new creative in store activities etc. To grow innovation is often a critical factor. To prioritize different innovations and growth initiatives are sometimes both difficult and expensive. With CatMan®Solution, we offer three modules, which can support and optimize innovation initiatives such as: 1. New Product Introductions 2. New planograms, new assortments, new price positioning etc. 3. New in store category positioning in store, new “placement” from and B to an A placement etc.

4.7 Questions to be asked in relation to media management and optimization 1. How well is our NPI penetrating the market? 2. How to predict a success or a failure before it is too late? 3. Which areas of our NPI are working sufficiently and which are not? Are there regional differences, channel or banner differences, which could be managed? 4. What can we expect, in terms of sales effectiveness from a new space or a new concept? How to predict best case or worst case before we go national?

4.8 Suggested reports to answer questions related to innovation We have three reports, which is directly focused on innovations: 1. The New Product Introduction – NPI report 2. The Store Event report 3. The Store Picture report

4.0 Using CatManÂŽSolution as a marketing or category manager

4.8.1 NPI report The NPI report allows you to track and analyze the POS penetration of your new products/concepts etc. in an effective and very fast way. You can monitor and follow the development week by week, with just 2 daysâ&#x20AC;&#x2122; delay, which gives you time to react and adjust parameters before it is too late.

Launching 3 new SKUs in the category last year in week 17.

4.0 Using CatMan®Solution as a marketing or category manager

New SKUs are not cannibalizing the category – the sales first 10 weeks is “on top”. After three weeks, our 3 new SKUs are out performing the benchmark products in the category. There might be issues with one of the new SKUs? Which is not performing at the same level as the two best SKUs.

The new products are penetrating the chosen banner both fast and effectively.

4.0 Using CatMan®Solution as a marketing or category manager

We can only identify one large store, where there are real zero sales issues, meaning that they do not carry sufficient stock of the new products. Unfortunately, there is 34 store with relative low sales during the launch period including a high level of zero sales days, meaning that the new SKUs are not driving growth in those specific stores.

4.8.2 The Store Event report The Store Event Report gives the sales management team an effective way to monitor the effect and the value of most kind of innovations. Below you have a case where a supplier and a banner decided to develop a new and better category “set up” – new adjusted assortment, new space, new in store placement, new price positioning. Before just launching the concept in 400 stores, the concept was tested in 5 representative stores. The store event report and ongoing monitoring was set up in less than 5 minutes, making the analysis and needed facts followup a quick and easy task to perform.

4.0 Using CatManÂŽSolution as a marketing or category manager

4.0 Using CatMan®Solution as a marketing or category manager

4.8.3 The Store Picture Report The Store Picture Report is a part of the Store Picture module, allowing you to visualize the quality of execution together with several relevant key performance indicators. If and when you try to do this using Excel and standard “picture management” software, you will end up spending a tremendous lot of time just managing data and pictures – or worst case you will simply avoid doing it because it takes a lot of your limited time. With CatMan Store Picture all you need is to run the reports. Relevan KPI’s proves that this is a best case solution

On the graph below, the instore activity has moved the store from rank 30 to number 2 in the chain.

Appendix - Defining potentials using CatManÂŽSolution

Appendix - Defining potentials using CatMan®Solution

Appendix - Defining potentials using CatMan®Solution How CMS estimate and calculate potential In CatMan®Solution V3, we are using four different kind of potentials: • Sales per 1000 • Sales Value Index • Share of Category • Category Total per 1000 The overall reason to use and spend time on analyzing potentials, is to identify stores that needs focus, because it may be possible to increase sales in these stores. The approach, how to analyze potentials in order to know, how to increase sales differs depending on the potential measure. This will be described in the following sections. It is important to keep in mind that potential calculations are theoretical and case sensitive measures. If a store for example has a “sale per 1000 potential” of 1.000 DKK for a given selection of time period, categories etc., you cannot expect the store to have the same potential in another time period. The measures are based on historical data, but can be used to see a trend and therefore, give you an indication of where you need to intensify your focus.

Sales per 1000 potential Sales per 1000 potential = Sales effectiveness potential. A category focus optimizing the utilization of shoppers. Sales per 1000 potential calculates the company’s sales potential for a single store, based on a comparison with the chain of Sales per 1000 transactions (“customers”). The measure shows how much more a store would be able to increase its sales, if the store were able to have the same sales per 1000 as the chain/region/market (in the following only chain will be used). The measure will only be calculated, if the store’s sales per 1000 is less than the chain’s sales per 1000. Calculation example: A. Company’s (our) sale per 1000 in the chain B. Company’s (our) sale per 1000 in the store C. Traffic/Transactions in store Potential Sale per 1000 = (A – B) * (C / 1000)

Appendix - Defining potentials using CatMan®Solution

The example on the last page shows that Kvickly Nørrebro has a potential of 181.871 DKK, because it’s sales per 1000 are less than the sales per 1000 in the chain. The calculation behind the potential is (The result is subject to minor discrepancies, because of rounding): Potential Sales per 1000 = ((1.051,1 – 846,7) * (889.697 / 1000)) = 181.871 DKK This means that the company, in theory, should be able to increase its’ sales in Kvickly Nørrebro within the chosen period with 181.871 DKK, if it had the same sales effectiveness (sales per 1000) as the chain. Moving the store from rank 64 to average – See model below.

Appendix - Defining potentials using CatMan®Solution

Sales Value Index Potential Sales Value Index Potential = Growth potential compared to same period last year. In short – A supplier focus. Sales Value Index Potential calculates the company’s sales potential for a single store based on a comparison with the total Sales Value Index in the chain. The measure indicates, how much a store’s sales value would had been increased, if the store were able to get the same sales value index as the chain. The Sales Value Index Potential measure is only calculated if the store’s sales value index is lower than the Sales Value Index in the chain. Calculation example: A Company’s (our) sales value index in chain B Company’s (our) sales value index in store C Company’s (our) Sales value last year in store Potential Sales Value Index = C * ((A - B) / 100) There are no reports in CatMan®Solution that shows Sales Value Index Potential, but you can calculate the measure by extracting one of the reports to Excel and make the calculation there. In this example My Stores – Extended has been extracted to Excel from CatMan®Solution. The report does not show sales value last year, but you can get this measure by using Sales Value and Sales Value Index (Sales Value Last Year = Sales Value / Sales Value Index * 100). After the sales value, last year, the formula above is used to calculate the potential.

The example above shows that Kvickly Slotscenteret has a sales value index potential of 118.512 DKK. This means that if the store had same sales growth as the chain, it could have sold 118.512 DKK more in the same period.

Appendix - Defining potentials using CatManÂŽSolution

The measure has been calculated as follows: Potential Sales Value Index = 1.139.364 * ((94,8-84,4) / 100) = 118.512 DKK. This means that the company in theory, should be able to increase its sales in Kvickly Slotscenteret within the chosen period with 118.512DKK, if it had the same sales growth (sales value index) as the chain. Moving the store from rank 67 to average â&#x20AC;&#x201C; see the model below:

Appendix - Defining potentials using CatMan®Solution

Share of Category Potential Share of Category Potential = Fair Share potential. In short - A brand focus. Share of Category Potential calculates the company’s potential sales by achieving the same market share of the category in the single store, as the company has on chain level. It shows, how much more a store would be able to increase its sales, if the store were able to have the same market share as the chain. The measure will only be calculated, if the store’s share is lower than the share in the chain. Calculation example: A Category Sales Value in store B Our share of category in chain C Sales Value in store Potential Share of Category = (A * B / 100) – C

The example above shows that Kvickly Allerød has a potential of 158.568 DKK, because it has a share of category that are less than the market share in the chain. The potential has emerged by this calculation (The result is subject to minor discrepancies, because of rounding in data): Potential Share of Category = (7.437.816 * 12,9 / 100) – 800.548 = 158.568 DKK.

Appendix - Defining potentials using CatMan®Solution

If Kvickly Allerød were able to increase the share of category from 10,8 % to 12,9 %, it would have been able to sell 158.568 DKK more, within the chosen period. Therefore, the company should be focusing on how to increase the market share in Kvickly Allerød and thereby, moving it from rank 76 to average – See model below.:

Category Sales per 1000 potential Category Sales per 1000 potential = The category sales potential in the store. In short – a category focus. Category Sales per 1000 potential calculates the potential sales in a store based on a comparison with the chain of Category Sales per 1000 transactions (“customers”). It shows how much the category would have been increased, if the store’s category per 1000 was the same as the chain’s. Therefore, the measure is only calculated, if the store’s category sales per 1000 is lower than the chain’s category sales per 1000. Calculation example: A Category Sales per 1000 in chain B Category Sales per 1000 in store C Traffic in store Potential Category Sales per 1000 = (A – B) * (C / 1000)

Appendix - Defining potentials using CatMan®Solution

The example above shows that Kvickly Nørrebro has a potential of 1.212.394 DKK, because its sales effectiveness in the category is lower than in the chain (category sales per 1000). The calculation behind the potential is (The result is subject to minor discrepancies, because of rounding): Potential Category Sales per 1000 = (8.151 – 6.789) * (889.697 / 1000) = 1.212.394 DKK. This means, in theory, that Kvickly Nørrebro should be able to increase its category sales within the chosen period with 1.212.394 DKK, if it had the same category sales effectiveness (category sales per 1000) as the chain. Moving the store from rank 65 to average – See model below:

johnsen.dk