1 2

Review your Define which skills

steps
current work to improve

To Utilize 3
This
Update Toolkits and
learning solution

Guidebook 4 5
Design your own ACTION!!!
career roadmap
 I II
Introduction Trade Marketing
Competency Library

CONTENT
III IV
Trade Marketing Skills Learning Solution
Assessment Tool
Benchmark
INTRODUCTION
KEY CONTENT:

▪ What is Competency skill and why it’s important

▪ Trade Marketing overview

 WHAT IS COMPETENCY SKILL SET?
Competency Skill Set is a cluster of related abilities, commitments,
knowledge, and skills that enable a person (or an organization) to act
effectively in a job or situation. Unlike common skills, Competency Skill
means a consistent, systematic and logical skill sets customized by specific
professions and working levels. Because each job at each level of
responsibility has its own requirements, Competency skill set will change
accordingly and reflect key skills and knowledge needed for each WHAT IS IN THIS
position as well as assess employee’s efficiency from low to high levels. GUIDEBOOK?
THE ULTIMATE TRADE MARKETING
COMPETENCY GUIDEBOOK is based on 14
core competency skills for professional
Trade Marketer and key knowledge of
each skills. Besides, CASK will provide you an
WHY IS COMPETENCY SKILL SET assessment took benchmark that can help
IMPORTANT? you design your career roadmap.

Understanding Competency Skill Set of a job will help

you acknowledge where you are on your career
path and improve lacking skills to better your current
work and get promotion to next levels. Therefore you
will be able to design your own career roadmap in
the future.
 Trade Marketing Key Tasks

TRADE MARKETING OVERVIEW Commercialized Space optimization & Channel/Customer

Brand at POSM Range optimization activities

Trade Marketing in one sentence BRAND

“Win Shopper at the moment of choice”

Trade Marketing Target Audience

CATEGORY

Distributor Wholesaler Retailer Shopper Consumer Range Optimization Space Optimization Category Category
Segmentation Development
CHANNEL/CUSTOMER

Why is Trade Marketing important?

76% shopping Retailers are more OTHERS

Winning-in-mind is more
decisions are made in and more
and more expensive
store demanding Sales
Demand Sales Customer
Finance ROI Execution
Planning engagement engagement
guideline
TRADE MARKETING
COMPETENCY SKILL
LIBRARY
KEY CONTENT:
▪ Trade Marketing Working Process

▪ Trade Marketing Competency library

▪ Key knowledges
TRADE MARKETING COMPETENCY LIBRARY

II. Develop IV. Measure

I. Understand The
Trade MKT III. Deployment and Execution and
Commercial Opportunity
Strategy Evaluation

01
Brand &
03
Channel &
05 07 09 11 13
Channel Trade Category Sales Cycle Trade Actvities
Category Customer Strategy Promotion Management Planning In-store
Understanding Understanding Effectiveness (CAT MAN) Measurement

02 04 06 08 10 12 14
Trade Activities
Shopper Market Research Finance for POSM and Shopper Customer
Understanding for Trade non-finance Activation and Effective
Merchandising Engagement
Models Marketer Trade events Evaluation
 I UNDERSTAND THE COMMERCIAL
OPPORTUNITIES

UNDERSTAND WHERE YOU ARE AND WHERE YOU WANT TO COMPETE?

At this stage, a Trade Marketer needs to understand Brand Strategy and

Category Strategy of the next 3 to 5 years, from which you will define Channel
Strategy. In order to do that, you have to learn about Category/Brand,
Consumer, Shopper, be able to clearly describe targeted Channel and finally,
understand measuring methods to evaluate Strategy’s efficiency.

Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
CASK.VN
BRAND &
CATEGORY
UNDERSTANDING

01
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 BRAND &
CATEGORY
UNDERSTANDING

CASK.VN
Understanding Brand and Category is one of the most critical skills that
Trade Marketers usually ignore. Trade Marketing Strategy always starts
from Category Strategy and Brand Proposition. By capturing Brand
and Category knowledge, you will know the essences of Category
Strategy (Category Growth Driver), Brand Strategy (Brand’s 6P, Brand’s
USP) and know how to leverage Brand’s strength at points of purchase
for the most effective Trade Marketing activities.

01
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 WHY IS THIS SKILL IMPORTANT?

Not understand Brand & Category Understand Brand & Category

CASK.VN
Being confused about Brand and Category Strategy will Understanding clearly Brand and Category helps you orient
make you sink in execution and forget necessary consistence Channel Strategy and activities at outlets more efficiently and
in message and targeted consumers on media and at outlets. focused.

▪ Clear connection between Brand strategy and In-store

execution
▪ Not connect company Brand strategy with instore
execution
▪ Consistent and integrated communication between
ATL, BT: and in-store communication
▪ Not Integrated communication between above the
line, below the line and instore communication
▪ Execution at outlet align with Brand proposition and
support to promote Brand image at POS
▪ Execution at outlet is not align with Brand proposition,
Brand target Consumer/Shopper
▪ Understand Brand team’s points of view and
cooperate more effectively
▪ Easy to have internal conflict with Brand team

01
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 KEY KNOWLEDGES

CASK.VN
01
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 BRAND BUILDING FRAMEWORK

CASK.VN
Business Business Business
Objective Objective Objective “Ensure the brand is on-track to deliver the strategy, through
being relevant with consumers”.
CATEGORY & BRAND STRATEGY SUMMARY

CATEGORY AND BRAND STRATEGY SUMARIES

3-5 YEAR LONG TERM:
CATEGORY & BRAND STRATEGY
BRAND TASKS, NEXT YEAR’S ACTIVITY PLAN
1 YEAR PLAN
ANNUAL BRAND PLANNING
CAMPAIGN’S INNOVATION & COMMUNICATION

CAMPAIGN
EXECUTIONS IDEA: CAMPAIGN DEPLOYED BY CHANNELS
CHANNEL

ON-AIR REAL EXECUTION MATERIALS: TVC, OOH, VIRAL CLIPS…

What

01
Consumer see

Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 CATEGORY STRATEGY

CASK.VN
CATEGORY STRATEGY KEY CONTENTS

1. MARKET SEGMENTATION Where the brand will compete. (Where to play?)

2. CATEGORY VISION The future intention of the category

3. CATEGORY VALUE DRIVERS Where the growths come from. (How to win?)

4. BUSINESS GOALS Specific growth target (Volume, value, profit…)

5. BRAND PORTFOLIO ROLES Roles of brands in the portfolio

6. STRATEGIC ACTIONS Key actions that will help achieve the vision. (What to do?)

7. TEAM CULTURES/BEHAVIORS The team’s required attitude and capabilities.

8. KEY RISKS What might roadblock the brand from achieving the vision.

01
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 CATEGORY STRATEGY

CASK.VN
CATEGORY SEGMENTATION: Define Category Strategy based on segmentation to:
▪ Understand how to segment categories in the market (based on consumer’s behaviour) and capture the market size of each segment.
▪ Clear on targeted segmentation -> clear on target consumer and competitor
▪ Can define source of growth for our brands

MODEL

Category in general:
Eg: alcoholic drinks, beverages, Total category
healthcare,…
Note: Category
Factors in Consumers’ top of mind when segmentation must
chooing to buy a product: type, scent, base on Consumer’s
Segment 1 Segment 2 Segment 3
function, brand, foreign element, origin, behaviour when
price, … choosing products in
that category.
Factors that Consumer considerate next Sub Sub Sub Sub Sub
when choosing to buy a product: price, …
size, scent, sub-function Segment 1 Segment 2 Segment 1 Segment 2 Segment 3

01
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 EX: STRONGBOW CATEGORY STRATEGY

CASK.VN
BEVERAGE

STRONGBOW NON-
ALCOHOLIC
CATEGORY SEGMENTATION ALCOHOLIC
DRINK
DRINK

NON-
SPRIT/ CIDER CARBONATED
LIQUOR WINE BEER CARBONATED
BRANDY SOFT DRINK
(fermented SOFT DRINK
juice)

Segmented Segmented
Segmented by Segmented Segmented Segmented
by Ingredients by colors or
ABV by price by flavors by
origin,... Segmented
(Whisky, Rhum) (Baileys,…) Functional
by price benefits or
Ingredients
Heineken,
Coke, Pepsi,
Sapporo,
7Up, Sprite
Tiger, Saigon Magner,

01
Strongbow

Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 CATEGORY VALUE GROWTH DRIVER
DEFINE YOUR SOURCE OF GROWTH

CASK.VN
INCREMENTAL 3

VALUE DRIVER:
- Estimated value contributed. INCREMENTAL
- Source of growth: market 3
development, value creation.
POTENTIAL
FUTURE
INCREMENTAL VALUE
2 (LONG TERM
– 5 YEARS)
INCREMENTAL 1

CURRENT
VALUE
(NOW)

01
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 CATEGORY VALUE GROWTH DRIVER
DEFINE YOUR SOURCE OF GROWTH

CASK.VN
From current brand, competitors or non-category users

MORE USERS MORE USAGE MORE BENEFITS

01
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 CATEGORY VALUE GROWTH DRIVER

CASK.VN
OTHERS

Change brush 2
times/year
ADDED VALUE (currently 1.2
times).

Up trading to POTENTIAL
MORE USAGE added value FUTURE
tooth paste. VALUE
(LONG TERM –
Teeth brush daily
MORE USERS frequency in
5 YEARS)
urban to 2 times.
More people
use tooth-paste
CURRENT to clean teeth
VALUE in rural.
(NOW)

01
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 DEFINE YOUR BRAND CORE VALUE WITH BRAND 6P

CASK.VN
Promise to consumers, so that they’ll love and then buy into
your product
MARKET INFORMATION PROPOSITION
(Macro, market)

Promoting the brand wherever

The price consumers pay, regular or PRICE PROMOTION consumers are
on promotion

BRAND
6P
The product or service offered
Pack sizes, pack looks, pack
PRODUCT PACK portfolio

CONSUMER BEHAVIORS
(Trends, consumption,

01
What happens where shoppers PLACE purchase)
by the brand

Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 EX: 3 MIEN BOUILLON

CASK.VN
1. PROPOSITION “Tasty dishes without MSG!”

Meaty granules made from meat & bone extract, fortified by

2. PRODUCT
iodine. Packsize: 65g, 220g, 450g

Active in both ATL (TVC, Endorsement) and BTL (visibility)

3. PROMOTION
Run promotion at consumer and trade level

low pricing strategy: 46% cheaper than KMG; 29% cheaper than
4. PRICE
AjiNgon, extremely high retailer’s margin (up to 20%)

Strong appearance in HCME & MKD GT. But not yet popular in GT
5. PLACE
Central , GT North and MT.

Appealing, highlighting iodine supplement & VINAFOSA

6. PACKAGING
endorsement

01
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 PROPOSITION DEEP DIVE - BRAND POSITIONING CIRCLE

CASK.VN
1. TARGET CONSUMER
TARGET Target consumers, Who do the brand aim to serve?
(INSIGHT?)
CONSUMERS

The underlying human truth that reflects consumer’s deeply rooted

2. INSIGHT
tension or desire.

REASONS TO Description of how the brand behaves (its communication style). If

INSIGHT
BELIEVE
3. PERSONALITY the brand is a person, how would he/ she be like? Described in

BRAND
adjectives, as specific as possible.

PURPOSE
4. BENEFIT Differentiated benefits: Functional or Emotional.

5. REASONS TO
Product or brand features that help it deliver that benefits.
BELIEVE
BENEFITS PERSONALITY

The reason the brand exists, how it contributes to help consumer

6. BRAND PURPOSE

01
lives better.

Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 BRAND POSITIONING EXAMPLE: DESPERADOS

CASK.VN
Usually eat snack during BREAK, Socialize with friends & colleagues, Don’t
1. TARGET CONSUMER necessarily have fixed preferences for food, have Busy & stressed life style,
Energetic, open-minded, humorous, playful, sociable

“After a busy work, I need something to constantly cheer me up and help me enjoy
2. INSIGHT
my break time. This should be fun, joy able and east to share with my friends”

3. PERSONALITY Fun, Playful, Empathetic, Sociable

Recharge energy, Convenient snack, Provide FUN, PLAYFUL & SHAREABLE

4. BENEFIT
getaway (BREAK) from everyday stressful life

Has been made with natural flavors since 2011, 100% sustainable cocoa certified by
5. REASONS TO BELIEVE UTZ as part of Nestlé Cocoa Plan, contain high quality calories, carbohydrate,
sugar, etc

6. BRAND PURPOSE Inspire & give people a BREAK

01
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 BRAND COMMUNICATION IDEA

CASK.VN
Brand The big, simple consumer language. The foundation for all
brand’s communications.
Communication
Idea Usually, BCI will be the slogan of Brand.

Brand Communication In a period that integrated around

Integrated Brand BCI. It encompasses all relevant touch points, deploys the
idea across the most appropriate channels, phased, to meet
Communication objectives and has been planned in talk-ability.

Execution Idea All ATL and BTL activities used to deliver BCI to Consumer via
all relevant Brand Touch Point.

01
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 BRAND JOBS TO BE DONE

CASK.VN
A strategic task on which the Brand Team chooses to focus their efforts and resources in order to deliver its short term business targets in a way
that is consistent with the brand and category vision.

Scan [1] Market, [2] Consumer trend; [3] Brand Performance to ‘nail
Surface I/Os
down’ max 5 key issues & opportunities

Root I/Os WHAT (the issue), WHO (target consumers) and WHY (which Ps)

Get WHO (target consumer) to do WHAT (change behaviour) by HOW

Brand Priority
(action)?

EXAMPLE JTBD:
• Regain lapsed Marmite users by leveraging health credentials of the product’s B-vitamin content (Proposition).
• Increase Sunsilk pricing to its strategic positioning, parity with Clairol in drugstores (Price).

01
• Expand Bertolli presence to more than one section of the freezer cabinet in supermarkets (Place).

Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 BRAND JOBS TO BE DONE

CASK.VN
J2BD TEMPLATE

BRAND PLAN OBJECTIVE (JTBD)

INCREASE WHAT AMONG WHOM, BY….
Source of Users – WHO
Brand task – WHAT Target consumer Target consumer - How - BY
General profile Brand user profile
Choose 1 out of 3 tasks: ▪ Gender: Choose one that you want to influence: Which activity out of which 6P?
1. Increase user base ▪ Age: • Brand current users
(penetration) ▪ Geography: (General or Light/ Medium/ Heavy users)
2. Increase usage ▪ Others (marital status, • Brand laspers
(consumption) occupation): (People who used to drink brand but switch to
3. Increase value competitors)
(up-trading) • Competitor users within the same category
• Non-users of category

01
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
CASK.VN
SHOPPER
UNDERSTANDING
MODEL

02
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 SHOPPER
UNDERSTANDING MODEL

CASK.VN
Catching complicated psychology of Shoppers and winning them
at points of purchase plays a critical role in Trade Marketing.
However, this is not an easy mission because unlike Consumers
(normally who experience the products in the most perfect
conditions), a Shopper is influenced by many factors at outlets such
as weather, time, cost, promotion and the product’s message
itself,...

An excellent Trade Marketer is one who knows how to identify

clearly the portrait of targeted Shoppers, knows where to approach
Shoppers, builds Channel Strategy and especially, knows their
motivation when buying products to develop correct, adequate
and effective activities.

02
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 WHY IS THIS SKILL IMPORTANT?

CASK.VN
Not understand Shoppers Understand Shoppers

If Trade Marketers don’t understand Shoppers, they are just If Trade Marketers understand clearly who their Shoppers are
do-ers who know how to execute but not reasons behind and what their insights are, it will be easy to develop suitable
every action. They also can’t develop a Trade Marketing Plan strategies to convine Shoppers in outlets.
as the key principle is not strong enough.

▪ Display products right where Shoppers go shopping

▪ Display products in a wide range or incorrect channels
▪ Choose message that fits Target Shopper and Brand
▪ Messages at outlets are separate, inconsistent
Strategy
▪ Activities just focus on promotion as the only way for
▪ Know which activities to do to motivate Shoppers, drive
Shopper to purchase many products
them to purchase more

02
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 KEY KNOWLEDGES

CASK.VN
Shopper Overview Shopper Understanding Model Shopper Insights Shopper Marketing Mix

02
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 SHOPPER OVERVIEW

CASK.VN ▪ Direct user

Consumer

▪ Experience the product in the right occasion

and perfect condition
Consumer Needs: good quality, delicious, long-
lasting,…
Shopper
▪ Decision-maker at the point of purchase
▪ Influenced by many factors at outlet:
weather, time, promotion,…
Shopper Needs: Various choices, convenient,
reasonable price,…

02
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 SHOPPER TYPICAL QUESTIONS

CASK.VN
Typical questions about Shopper?
▪ Which stores do they frequently come to?
▪ What are their habits of purchase?
Typical questions about Consumer ▪ Where do they buy?

▪ How are their attitudes towards products? ▪ What makes them buy?

▪ Are the products’ values suitable with them? ▪ How do their needs vary in different outlets?

▪ Which type of products do they need? ▪ How do they interact with promotion shelves, leaflets,…?

▪ How do they use products? ▪ How do they create values for Retailers?

▪ Are they loyal to the brand?

▪ How does advertising influence them?

02
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 3 CORE QUESTIONS

1
CASK.VN
Who are my Right Communication

shoppers?

2 Where do
they shop?
Right Channel, Right Merchandising

3 02
What motivates
them to buy?
Right Activities

Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 Com target groups

Teens: 17% of

CORE QUESTION #1 - SHOPPER PROFILE

shoppers

CASK.VN
Occupation Total
Self Employed 29
GENERAL SHOPPER GENDER
Student 20
PROFILE | 2 out of
3 shoppers are Housewife 16 Young Adults:
female, across 31% of shoppers
Clerical/Service Worker 11
age groups,
married and they Farmer 8
spend on average
39,000 VND/ trip. Production Worker 7
Professional 5
Out of work 1 Moms:
37% of shoppers
Technician 1
67% FEMALE

AVG AGE: 30 y.o. KIDS IN FAMILY, if married: 97% of shoppers HIB 10.7 millions
FAMILY SIZE: 4 MARITAL STATUS: 64% married A 16
DECISION MAKER: 52% main; 16% involved in HH grocery B 38
HH INCOME: 10.7 millions
C 27
D 14
MONTHLY SPEND on grocery item: ~ 1.6 millions
E 3

02
SPENT ON TRIP: 39K VND F 0

Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 CORE QUESTION #2 – SHOPPING CHANNEL AND SHOPPER ROLES

CASK.VN
Discounters Supermarkets Drug Stores

‘Doing the ‘Going Shopping’

Shopping’
For Me & Family
For Family

02 C Stores Hypermarkets

Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 CORE QUESTION #3 - TYPICAL SHOPPING MISSIONS

CASK.VN
Daily Shop Urgent Item Come to buy a drink Fill-In

(Code 5) Mainly to buy a few grocery

(Code 3) Mainly come to buy one
(Code 2) Mainly come to buy some
or two item which I urgently
items required for daily use
needed
(Code 15) Mainly come to buy a
items which have got over. I come for this
drink, carry away for later
shopping when grocery items get over
consumption
before the next bulk grocery shopping

For snacking (food/ drink) Just-in-Time Meal for Home Special Occasion Non-Grocery Regular Stock Up

(Code 9) Mainly come to

(Code10) Mainly come here (Code 4) Mainly come to take advantage of special
to get myself a snack (Code 6) Mainly come to buy buy items for a special offer (Code 1) To buy a wide
snack/ meal/ which I can occasion or celebration at
(Code 8) Mainly come to (Code 11) l am visiting this variety of items in bulk
instantly prepare & eat at home home/ office (like a party

02
have a drink now or celebration) store or have come shopping
to pass time/ kill boredom

Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 SHOPPER INSIGHT

CASK.VN
Definition: A Shopper Insight is an underlying
truth that drives shopper behaviour at the
point of purchase.

02
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 SHOPPER INSIGHT VS CONSUMER INSIGHT

CASK.VN
Shopper Insight
Consumer Insight
“I want to save energy and “I’ll only buy an energy
do my bit to help ‘save the saving bulb if I see a clear
planet’ “ personal benefit to justify the
premium”

Focused on overcoming
Generally focused on increasing barriers & exploiting purchase
consideration and building loyalty opportunities

First person, from Consumer’s

First person, from Shopper’s
perspective
perspective
Deeper; requires more digging
Closer to the surface

02
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 THERE ARE MANY SOURCES OF
SHOPPER DATA FROM WHICH Qualitative data

TO DRAW INSIGHTS - Online

- Focus groups
- Ethnography

CASK.VN
articles & - Semiotics
reports -
Macro trends - Gov’t data Accompanied
- Agencies shopper trips
- Desk - Retailer
Research interviews

- Exit surveys
- Store visits
- Panel data
- Activity
- Shopper
Observation
card data
-Eye tracking
- Other
research
surveys Quantitative data

Observation Sales &

Merchandisi
ng teams
-Range
reviews
- Anecdotal
info

02 Internal information

Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 SHOPPER INSIGHT CHECKLIST – SANE TEST

CASK.VN

Simplicity • Is easily understood

Actionability • Drives shopper behavior; can lead to

category & brand growth

New thinking • Is a new point of view or fresh

perspective; goes beyond the obvious

Empathy • Is based on deep understanding of

shoppers and shopping

02
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 EX: TSINGTAO SHOPPER INSIGHT
Insight Leads to this Action

CASK.VN
We Dads often are Merchandizing beer
the ones doing the next to diapers to increase beer
“emergency shop”
for diapers (nappies) in the
sales (temptation/reward)
 Simplicity
A
evening, after a long day at work.

 ctionability

N ew thinking

E mpathy

02
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 EX: KNORR SHOPPER INSIGHT

CASK.VN
Insight: When shopping, I have

Simplicity
no idea what to cook! Our
repertoire of meals is so limited.

Chest Freezer Rail Systems – with double
 A ctionability
sided graphics and shelving

Recipe
Card
N ew thinking

Stands
Leads to this Action:
Provide recipes and helpful
merchandising where
E mpathy

decisions are made

02
Chest Freezer Bridges

Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 SHOPPER MARKETING MIX

CASK.VN
Availability

Shopping
behavior

Communication Offer

02
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 SHOPPER MARKETING MIX - AVAILABILITY

CASK.VN
Availability
The range of products available to buy within a channel
RULES TO REMEMBER
or outlet.
The range of products maintained in-stock within a ▪ The focus should be on the home shelf, however
channel or outlet.
▪ Availability should be the primary focus
The merchandising of products within the outlet.
The minimum inventory of products within a channel or ▪ Block in ways which make sense to shoppers
outlet.
▪ Blocking similar products together might make shopping easy
The delivery lead-times of products ordered by a shopper
within an outlet or channel. ▪ View the world as the shopper sees it

▪ Allow ‘beacon brands’ to stand out – they help shoppers

navigate (and sometimes find) the category

▪ Putting category driving segments in hotspots – traffic drivers

below

Communication Offer ▪ Putting premium products at in hotspots

may drive trade up

02
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 SHOPPER MARKETING MIX - COMMUNICATION

CASK.VN
RULES TO REMEMBER
Availability
▪ Communication is about understanding the target shopper, the
message and the media:

➢ What message is critical to taking the shopper to purchase?

➢ Which barriers need overcoming?
Communication ➢ Which media is likely to work in this environment?
The messages conveyed to a shopper within a channel ➢ How much time do we have to deliver a message?
or outlet.
The materials used to convey messages to shoppers
within a channel or outlet. ▪ Great communication leads to behavioral change
Offer
The conduct and presentation of brand representatives
▪ Brilliant communication inspires changes in long term
within a channel or outlet and the messages they
consumption and shopper behavior
convey to shoppers.
The location of communication materials, brand ▪ Communication can help shoppers navigate the store or attract
representatives and product displays within the outlet them to the category or cut through complexity

▪ Go to where the shopper is and encourage a behavioral change

02
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 SHOPPER MARKETING MIX – OFFER

CASK.VN
RULES TO REMEMBER
Availability

Offer Supports
Profitably Profitably
consumption
The average retail price of products within a meets meets
growth by
channel or outlet. company customers’
changing
objectives objectives
The depth of promotions within a channel or shopper behavior
outlet.
Communication
The promotion mechanics used within a
channel or outlet.
The extent of after-sales or added value
service offered to shoppers in a channel or
outlet.

02
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
CASK.VN
CHANNEL &
CUSTOMER
UNDERSTANDING

03
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 CHANNEL & CUSTOMER
UNDERSTANDING

CASK.VN
Channel is any place where shoppers can find and purchase our brands.
Channel is what connects Brand and Shopper as well as a place of every
Trade Marketing activities. In other words, if Shopper is the heart of Trade
Marketing then Channel is the brain. Therefore, it’s a must for Trade Marketer to
understand Channel and Customer of each Channel in order to deliver
exclusive yet suitable activities to win Shopper

03
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 WHY IS THIS SKILL IMPORTANT?

CASK.VN
Not understand Channel Understand Channel

If Trade Marketers don’t understand Channel, they just Understanding Channel helps Trade Marketer get clear
execute like machines and get less chances to promote in objectives of their tasks, how to measure activities and
career path. particularly, strategies behind activities at outlets.

▪ Understand which activities are suitable with which

▪ Execute activities in stereotypes, cannot customize
Channel for detailed execution plan
activities for each Channel
▪ Understand clearly each Channel’s role to define
▪ Not understand Channel’s role, which leads to
suitable measuring KPIs
incorrectly evaluate performance
▪ Capable of managing many Brands at a time
▪ Struggle with managing many Brands at a time
▪ Capture key factors to build an effective Trade
▪ Incapable of developing effective Trade Marketing
Marketing Plan

03
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 KEY KNOWLEDGE

CASK.VN Channel overview Channel Segmentation Channel Mapping

03
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 CHANNEL OVERVIEW

CASK.VN
CHANNELS ARE MANAGEABLE CLUSTER OF POPS WITH SIMILAR SHOPPERS’ MISSIONS AND BEHAVIORS
EACH CHANNEL IS DIFFERENT TO EACH OTHER INTERN OF SHOP, SHOPPER AND SHOP-OWNER

Grocery Trade HRC Supper market CVS Garage

KA channel Beer Club Restaurant Night Club Bike washing

Uncovering channel and shopper insights into what motivates the shopper is important to differentiate our channel program to delight the shoppers.

03
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 CHANNEL SEGMENTATION

CASK.VN
Channels OFF ON
Definition:
Channels are manageable cluster of POPs with
similar shoppers’ missions and behaviors
Sub-channels TOFT MOFT TOT MOT
We need to identify clear, well defined and
relevant trade channels. All subsequent phases
of the process use these channel definitions,
W/S RET C&C SM KTV RES NLIFE HRC
Segments which are captured in Channel Cards.
M&P DEPT CON BG QN CAFE KARA

Objective:
Customers Each channel segmentation have different
shopper profiles, outlet characteristic, customer
insight…. So, we need to be clear on those
B A B A B A B A information to develop suitable programs to
Grades
D C D C D C D C develop targeted channel.

03
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 EX: CHANNEL SEMENTATION – BEER

CASK.VN
Beer
Cat

CHANNEL On- Off-

premise premise

CONSUMPTION Relax/ Fun/ On the

Drink Eat Home
GROUP Chill Release go

Quan Social Recreation Music Premium Supermark Specialist Traditional

Restaurant QSR BO Karaoke Club CVS
SEGMENT nhau Oultet Venue Bar/pub Bar/Pub et Liquor Trade

03
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 CHANNEL CARD

CASK.VN
Description of Channel in details of:
➢ Shopper of each Channel
➢ Some typical outlets
➢ Reasons Shopper go to outlets
➢ Frequent behaviour at outlets
➢ Suggested suitable activities
➢ Suggested suitable Brand/ Category for Channel

Objective:

Help all teams (Sales, Brand, Trade) agree with definition and
characteristics of each Channel.

Help address right direction for Channel activities.

03
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 CHANNEL MAPPING

CASK.VN
Company

A drawing or visual diagram used to portray

the movement of goods through a company's Distributor/
distribution channels. wholesales
(From Company to POPs)

Modern Trade General Trade

Retailer

03
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 EX: BUDWEISER CHANNEL MAPPING

CASK.VN
03
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
CASK.VN
MARKET
RESEARCH
FOR TRADE
MARKETER

04
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
CASK.VN
MARKET RESEARCH FOR TRADE MARKETER
For Trade Marketing, Market Research is to forecast potentiality of
Category towards each Channel and reflect performance of Trade
Marketing on the market. A Trade Marketer does not need to know
how to do research but must understand Market Research to control
performance and operational progress. From which they can make
rational changes when problems arise and especially, get necessary
data for a foundation of building plans for the next periods.

04
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 WHY THIS SKILL IS IMPORTANT?

CASK.VN
Not understand Market Research Understand Market Research

If you don’t understand Market Research, you will be easily Understanding Market Research helps Trade Marketers gather
get stucked with doing execution with gut feeling or past enough database for execution strategy and effectively
experiences so you will make mistakes. evaluate planned actions.

▪ Gather enough database to build plans and strategies

▪ Build a plan based on gut feeling and experiences in
categories are (not for sure) related
▪ Solutions to control results and performance
▪ Not in control of results and performance
▪ Understand market trends and Shopper’s behaviour to
choose the right Channel and perform right activities
▪ Incorrectly evaluate the market, do the wrong activities,
choose the false Channel
▪ Reduce the risks of missing data

04
Brand &Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 KEY KNOWLEDGES

CASK.VN
Roles of Market Research Market Research
Key Data Facts
Solutions

Data Analysis Work with Research

Agency

04
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 ROLES OF MARKET RESEARCH DURING SALE/TRADE JOURNEY

1 2 3

CASK.VN
STRATEGY PLANNING DEPLOYMENT/EXECUTION EVALUATION

▪ Right Channels ▪ Excellent In-store Execution ▪ Achieve Action Standard

TRADE/SALE ▪ Right Stores ▪ Consistent Focus ▪ High ROI
OBJECTIVES ▪ Right Activities

▪ Understand Universe, Market ▪ Monitor Execution ▪ Measure Performance

MARKET RESEARCH Structure ▪ Identify room for improvement ▪ Evaluate ROI
ROLES ▪ Understand Shoppers
(helps Sale/TMKT to …) ▪ Understand Customers

▪ Back store list/Census & store ▪ Store Observation ▪ Retail Audit

MAKET RESEARCH segmentation ▪ Mystery Audit ▪ Retailer’s satisfaction
Shopper Study ▪ In-store Driver Analytic
SOLUTIONS ▪
▪ Retailer Study
▪ CATMAN & Assortment Analytic

04
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 MARKET RESEARCH KEY SOLUTIONS

CASK.VN
STRATEGY PLANNING DEPLOYMENT/EXECUTION EVALUATION

▪ Back store list/Census & store ▪ Store Observation ▪ Retail Audit

segmentation ▪ Mystery Audit ▪ Retailer’s satisfaction
▪ Shopper Study ▪ In-store Driver Analytic
▪ Retailer Study
▪ CATMAN & Assortment Analytic

HOW MANY SOLUTIONS AMONG THESE HAVE YOU KNOWN ABOUT?

04
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 DATA ANALYSIS

CASK.VN
Rule 1: Clarify BACKGROUND Rule 2: Cut the cake Rule 3: Find the Heart
(Why need analysis? How action look like?) (Am I missing any piece of cake?) (Where is the stronghold to protect?)

▪ WHAT: Nail down the issue - Which part

of business: One variant or all? One sku/
▪ Segment the market into smaller pieces:
✓ By benefit: whitening, anti-aging, anti- 30% SKUs
packsize or all? One specific region or
channel or province? Any hypothesis?
acnes
✓ By age: teen, first jobber, 30-40, elder account for
▪ HOW: Expected actions look like?
✓ By class: AB, CD, urban, rural
✓ By region: north, central, south east, mkd 80% business?
✓ By channel: General trade, modern trade
Where is your stronghold to protect?
▪ Are we “king in small island” or “a
carrot in a big garden”? Performance by
each pieces & in total

04
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 DATA ANALYSIS MODEL
▪ Put available data to 6P Model to identify current Issues/ Opportunities of Brand at Channel. From which, you can build

CASK.VN
relevant activities chain. Below is an example:

Market dynamic PROPOSITION PROMOTION PLACE Shopper Behavior

Average SPPD Numeric/ Weighted

Brand essential Brand essential distribution
Brand positioning Brand positioning Numeric/ Weighted of
Brand Health Brand Health stock
Volume/ Value sales
Average SPPD
Volume/ Value share
Purchases
Volume/ Value share
Purchase share
of trade PRICE PRODUCT PACK
Average SPPD
Stock share
Price per pack
Forward/reserve stock Purchases
Average price per unit
Stock to sales ratio Purchase share
Purchases
Stock cover day
Purchase share

04
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 WORK WITH RESEARCH AGENCY - KEYNOTE

CASK.VN
▪ Decision to work with Research Agency depends on 3 factors:

1 ASK CMI OR INTERNAL RESEARCH PIC FOR ADVICE

2 SELF CONDUCT BY INTERNAL RESOURCE

3 ASK AGENCY FOR BACK DATA OR SYNDICATED STUDIES

4 CONDUCT CUSTOMIZED STUDY WITH AGENCY

… DECISION IS MADE DEPENDING ON THE PRIORITY OF BUSINESS

04
Brand & Category Strategy Shopper Understanding Models Channel & Customer Understanding Market Research for Trade Marketer
 DEVELOP TRADE MARKETING
STRATEGY

CASK.VN
DEVELOP CHANNEL OBJECTIVE, STRATEGY, PLAN

After identifying clearly key elements of Brand, Shopper and Channel, a Trade
Marketer will begin planning long-term strategy (usually for 3 to 5 years) for
Channel (Channel Strategy). At this stage, besides following principles of a
complete Channel Strategy, a Trade Marketer also needs to consider financial
factors to work with Finance team then deliver a Winning Channel Strategy
with clear measuring KPIs and positive ROI.

Channel Strategy Finance for Non-finance

CASK.VN
CHANNEL
STRATEGY

05
Channel Strategy Finance for Non-finance
 CHANNEL STRATEGY –
ESSENTIAL SKILL OF A TRADE
MARKETING MANAGER

CASK.VN
Channel Strategy play a crucial role in every company. As races of Brand are becoming
saturated, Channel is the only battle field to help Brand assure the winning part in Shopper’s
mind and grow sales.

Channel Strategy is the game where Trade Marketers as Executives were less engaged in. But
when reaching higher levels, mindset of Channel Strategy is what you cannot miss. An
execellent Trade Marketing Manager or Director is one who truly understands which Channel
his Brand should aim to, do what activities at that Channel, how the measuring KPIs should be
and especially, gather all those strategies to form a specific and possible Channel Strategy
House.

05
Channel Strategy Finance for Non-finance
 WHY IS THIS SKILL IMPORTANT?

CASK.VN
Incapable of building Channel Strategy Capable of building Channel Strategy

You can’t have critical positions in the Trade Marketing Possessing a mindset of Channel Strategy will help you
machinery in big companies if you are lack of this skill. operate more effectively as an Executive and approach
issues with right methods when building Channel Plan or
Channel Strategy in the next levels.

▪ Build Channel Strategy based on a platform without ▪ Approach right issues to ensure building a Channel
vision of Category Strategy, growth drivers and critical Strategy with these questions: Where to do? How to do?
factors of Channel And what to do?

▪ Sink in activities, not clear of measuring KPIs ▪ Ensure the plan has clear strategy and measuring KPIs

05
Channel Strategy Finance for non-finance
 PROCESS FROM CHANNEL STRATEGY TO EXECUTION

3-YEAR PLAN OPERATING COMPANY

CASK.VN
PORTFOLIO STRATEGY

CHANNEL STRATEGY CHANNEL ACTIVATION SALES EXECUTION EXCELLENCE

1. Channel 2. Channel
Plan Sales Folder
Segmentation Landscape

3. Channel 4. Key Activation

Execute Sales Argument
Prioritization Pillar

5. Strategic Implication Track KPIs

05
Channel Strategy Finance for non-finance
 PROCESS FROM CHANNEL STRATEGY TO EXECUTION

3-YEAR PLAN OPERATING COMPANY

CASK.VN
PORTFOLIO STRATEGY

CHANNEL STRATEGY CHANNEL ACTIVATION SALES EXECUTION EXCELLENCE

1. Channel 2. Channel
Plan Sales Folder
Segmentation Landscape

3. Channel 4. Key Activation

Execute Sales Argument
Prioritization Pillar

5. Strategic Implication Track KPIs

05
Channel Strategy Finance for non-finance
 KEY KNOWLEDGES

CASK.VN Channel Analysis Channel Prioritization Channel Activation Pillar Channel Strategy

05
Channel Strategy Finance for Non-finance
 CHANNEL ANNALYSIS

CASK.VN
To develop a deep understanding of the performance and potential of the channels in the market, the issues and opportunities for
the portfolio and competitors and the key trends impacting those channels.
The outputs from this phase help prioritize the channels in the next phase/ define channel key issues/ opportunities.

3. Interpret
1. Map channels 2. Interpret the 4. Interpret
profitability by
to Brands market data impact of trends
channel

05
Channel Strategy Finance for Non-finance
 MAP CHANNELS TO BRANDS

CASK.VN
Map channels to brands is the task of defining which brands should focus on which channels. Foundation to define the mapping is basing on
consumer groups: Brand will focus on channels which is have similar consumer groups.

Brand Brand Brand Brand

A B C D

Brand growth opportunities at channels

05
Channel Strategy Finance for Non-finance
 INTERPRET THE MARKET DATA

CASK.VN
Basing on market data analysis. We expect to have clear understanding on current channel performance. And, can define
key channel issues & opportunities.

Channel performance Company vs competitors

Volume Sales/ Value Sales

Volume / Value Share %
SWOT analysis
Volume / Value Share of Trade
Numeric Total Stock Distribution
Weighted Total Stock Distribution….

Channel key
Customer(retailer) satisfaction Consumer and Shopper analysis issues/opportunities

Measure satisfaction level of customer

(Retail, distributor,…) for our company/ Key shopper and consumer insights in
competitors each channel

Example on customer satisfaction

05
Channel Strategy Finance for Non-finance
 INTERPRET PROFITABILITY BY CHANNEL

CASK.VN
TOTAL Rural Urban GT-urban MT-urban Total GT (*)
Volume (ton) 178,004 68,465 109,539 71,652 37,887 140,117
GSV 244 94 151 94 57 187

Clear understanding on channel P&L Total TTS (31) (9) (22) (10) (12) (18)
ensure have right decision in investments. TTS % TO 14% 10% 17% 12% 25% 11%

Also have clear direction for each channel Turnover 214 85 129 80 49 165
(achieve top lines or bottom lines KPIs). Growth% 39.4% 44.2% 39.1% 40.6% 36.8% 42.4%
GP 98 37 60 37 23 74
GM% 46% 44% 47% 47% 47% 45%
Total A&P (45) (19) (26) (16) (10) (35)
Advertising (32) (15) (16) (10) (6) (26)
Promotion (9) (2) (7) (5) (3) (7)
Advertising BD (4) (2) (2) (1) (1) (3)
A&P % TO 21% 23% 20% 20% 20% 21%
PBI 53 18 35 21 13 39
PBI % TO 25% 21% 27% 27% 27% 24%
Total Indirect (22) (8) (14) (9) (5) (17)
IND % TO 10% 9% 11% 11% 11% 10%

05
TR 31 10 20 12 8 22
TR % TO 14.3% 11.9% 15.7% 15.4% 16.3% 13.6%

Channel Strategy Finance for Non-finance

 INTERPRET IMPACT OF TRENDS

CASK.VN
Identify the key trends that may affect the growth rate (positive or negative) of your channel.

05
Channel Strategy Finance for Non-finance
 CHANNEL PRIORITIZATION

CASK.VN
To select those channels where it is critical to win and on which resources will be focused to drive growth.
These channels are called ‘Energize’ channels. It also identifies those channels where investment will be optimized to hold share
(Optimize channels), and those where investment will be reduced to minimal levels (De-prioritize).

1 2 3 4

Which channels are most

Which channels are the most
important to develop Which channels to De-
commercially attractive to Which channels to prioritize?
Company’s Brands and prioritize?
company?
Category Vision?

05
Channel Strategy Finance for Non-finance
 EX: CHANNEL PRIORITIZATION

CASK.VN
05
Channel Strategy Finance for Non-finance
 CHANNEL ACTIVATION PILLAR

CASK.VN
In the previous phase, choices will have been made to focus investment on priority channels to drive disproportionate growth
relative to the market. The purpose of this phase is to decide on what Key Activation Pillars that investment should be focused
by priority channel.

Identify channel Determine portfolio

Channel J2BDs Channel Strategy
value drivers for priority channels

05
Channel Strategy Finance for Non-finance
 CONSUMER/ SHOPPER VALUE DRIVERS

CASK.VN
Consumer drivers are all activities that can
influence consumer / shopper choice at the Point
of Sale, in order to drive value per outlet.

Availability Quality

Visibility Promotion

Affordability Persuasion

• Each channel, the important of consumer driver elements may be different.

05
• Example: Quan Nhau vs Cocktail bar.

Channel Strategy Finance for Non-finance

 CUSTOMER VALUE DRIVERS

CASK.VN
Customer drivers are all activities that can
influence customers choice of supplier in order to
drive Point of Sale penetration.

Financial Terms Activation

Assortment Consulting

Relationship
Service
Management

• Each channel, the important of customer driver elements may be different.

• Example: Quan Nhau vs Cocktail bar.

05
Channel Strategy Finance for Non-finance
 EXAMPLE: CHANNEL DRIVER AT ON-TRADES

CASK.VN
05
Channel Strategy Finance for Non-finance
 EX: MAIN DRIVER (TOP 3)

CASK.VN
05
Channel Strategy Finance for Non-finance
 BRAND STRATEGY IN PRIORITIZED CHANNELS

CASK.VN
Revisit with Marketing the brand map for the priority Strategic (Lead) Strategic Tactical
channels:

• Map the tactical brands on the priority channels. Tactical

brands are brands that will not receive significant support
in terms of time and budget. However, they are an
important part of the brand portfolio, generally for
competitive reasons (e.g. to offer a complete portfolio, or
to cover a specific gap).

• Determine per channel which of the strategic brands will

be the lead brand. A lead brand is a strategic brand that
will be the main communication brand in a specific
Example of outlet standard of execution.
channel for the coming 3 years.

05
Channel Strategy Finance for Non-finance
 CHANNEL ROLES

CASK.VN
Understand
Outlet A
my needs Each segmentation will have different roles in influencing shoppers.

Understand
Outlet B
brand offers

Experience
Outlet C
the brand
Understanding what outlets are important, to which people, for
what purpose is important.
Make final
Outlet D
purchase

05
Channel Strategy Finance for Non-finance
 CHANNEL J2BDS
Key Issues/ Opportunities What we’re going to do Resultant Value Investment

CASK.VN
(basing on channel analysis information) about it

Describe here where you see the opportunity with regards to 1. J2BD (Objective) 1. XXX sales value (volume)
2. XXX sales value (volume)
brand innovation, brand or cross brand campaigns (from 2. J2BD (Objective)
3. XXX sales value (volume)
3. J2BD (Objective)
Brand J2BD).

Describe here where you see the opportunity with regards to 1. J2BD (Objective) 1. XXX sales value (volume)
numeric distribution, weighted distribution, stock weight, RLT 2. J2BD (Objective) 2. XXX sales value (volume)
value/volume share,… 3. J2BD (Objective) 3. XXX sales value (volume)

1. J2BD (Objective) 1. XXX sales value (volume)

Describe here where you see the opportunity with regards to 2. J2BD (Objective) 2. XXX sales value (volume)
new geography, new channel, new customer, new trends…. 3. J2BD (Objective) 3. XXX sales value (volume)

1. XXX sales value (volume)

Describe here where you see the issues/opportunity with 1. J2BD (Objective)
2. XXX sales value (volume)
2. J2BD (Objective)
regards to Customer drivers in channel (focus on channel 3. J2BD (Objective) 3. XXX sales value (volume)
main drivers).

Describe here where you see the issues/opportunity with 1. J2BD (Objective) 1. XXX sales value (volume)
regards to consumer and shopper drivers (focus on main 2. XXX sales value (volume)

05
2. J2BD (Objective)
3. XXX sales value (volume)
drivers). 3. J2BD (Objective)

Channel Strategy Finance for Non-finance

 BRAND STRATEGY HOUSE
Brand Vision 1
The Brand Business Objective
is the budgetary target for
Brand Business Objective the Brand, Channel or
2 What is an Objective? Customer, and it should be
time specific. An example is:

CASK.VN
Objectives are "what you need to
do". They can be defined as the
"growth drivers" for the business
across all commercial disciplines
e.g. for Marketing these will be
the growth drivers for the Brand
and for Sales these will be the
growth drivers for Customers.
“To deliver US$84m in net
Brand Marketing Objective Brand Marketing Objective Brand Marketing Objective C
sales and US$30m in profit in
A (What) B (What) (What)
2013”
3
What is a Strategy?
A Strategy is designed to

Strategy 1

Strategy 1

Strategy 1
Strategy 2

Strategy 3

Strategy 2

Strategy 3

Strategy 2

Strategy 3
ensure that the Objectives

(How?)

(How?)

(How?)

(How?)

(How?)

(How?)

(How?)

(How?)

(How?)
Objectives identify “WHAT” the are achieved – it is a plan
Plan needs to deliver to intended to accomplish a
achieve the overall goals of the specific goal.
business (J2BD)
Strategies are the “HOW” -
how
KPI KPI KPI KPI KPI KPI KPI KPI KPI
Measure Measure Measure Measure Measure Measure Measure Measure Measure you will achieve the
Objectives set.
4 What is an Activity?
Strategy 1 KPI Measure
An “Activity” is a detailed (How?) (For Strategy 1)
Activities Budget PIC Activities KPIs Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
initiative to be executed in order
to achieve the Strategies that Activity 1 $$ Activity 1KPIs
have been set. Activity 2 $$ Activity 2KPIs

Activities are the “MEANS” by Activity 3 $$ Activity 3KPIs

which the Strategies will be Activity 4 $$ Activity 4KPIs
achieved.

05
Activity 5 $$ Activity 5KPIs
Total Budget $$$$$

Channel Strategy Finance for Non-finance

 CHANNEL STRATEGY HOUSE
Channel Vision:
To become the number 1 Dairy company
and to establish Category thought leader

CASK.VN
Channel Business Objective:
To deliver €84m in net sales and €30m in profit in 2013

Channel Objective 1: Channel Objective 2: Channel Objective 3:

To drive profitable growth to €12m Establish as the Grocery Category Improve Discounter Channel sales
net sales in IFT category in 2014 leader in Dairy by end 2014 by 15% and margin by 5% by Dec
(incremental €3.3m net sales) (€2.1m) 2014 (€2.8m)
Text in red highlight link from
I&Os 1 & 2, into Channel
Objectives & then into

Drive Category Strategy

old Category instore in

differentiated SKUs at
effectiveness through

To introduce a range
Increase promotional

in depth promotional

campaign to highlight
Introduce a 2-5 year

Discounter Channel
Discounter Channel
relevance of IFT to 3+

key price points the

Channel Strategies

differentiated bulk
Captaincy in 5 key
bespoke programs

implementation to
achieve Category
increase across the

Shopper Marketing
product targeted

of differentiated
evaluations and

Discounter SKUs
at 2-3 year olds

packs into the

Drive a 4% price

3 key Retailers
Introduce new

Introduce
retailers

children
business

Use the Prioritisation Matrix to assess and

prioritise your Strategy options

Introduce all new Category

Evaluate all Minimum 1 bay Min of 1 Shopper
4% increase in all SKUs at min 80% Captaincy
proms and for 2-5 yr IFT in 3 campaign in all Range launched by Dec Range launched by Dec
customers by 31 dist within 4 achieved in 5

05
reflect learnings key retailers by retailers by July 2013 2013
July 2013 weeks of key retailers by
in calendar Dec 2013 2013
availability Dec 2013

Channel Strategy Finance for Non-finance

 CUSTOMER STRATEGY HOUSE
Customer Vision:
To be viewed as the Number 1 supplier in our Category,

CASK.VN
& the clear Category thought leader

Customer Business Objective:

To collaboratively develop the Category to achieve Budget FY14 (volume, net sales & margin)

Customer Objective 1: Customer Objective 2: Customer Objective 3:

To drive profitable growth to €7m net Become a true Category partner Stop the AWP decline of 17% in
Text in red highlight sales in IFT category in 2014 and Captain by Dec 2013 (€1.1m) the last 2 years, returning to 2.2ltrs
link from I&Os 1 & 2, (incremental €1.3m net sales) (€0.8m)
into Customer
Objectives & then

review to put focus on

Vision and Strategy for
into Customer

Introduce bulk format

effectiveness through
Increase promotional

campaign to highlight
old Category instore
Introduce a 2-5 year

programme to drive

trading shoppers up
relevance of IFT to 3+
a focused program
increase across the

Revise price points

product targeted

Range and space

To develop a joint

Shopper Marketing
Strategies

and promotional
at 2-3 year olds
Drive a 4% price

Introduce new

to larger stores
the Category
business

children

AWP
Introduce all new Category
Minimum 1 bay
4% increase Promotional ROI SKUs at min 85% Strategy agreed Min of 2 Shopper AWP returns to AWP returns to All new bulk in

05
for 2-5 yr IFT in in
across all SKUs by improves by 10% dist within 4 & implemented campaigns by 2.2 ltrs by Dec 2.2 ltrs by Dec market by Dec
top 200 stores by
31 July 2013 in 2013 weeks of in min top 100 Nov2013 2013 2013 2013
Dec 2013
availability stores by Dec 13

Channel Strategy Finance for Non-finance

 Channel Name Channel Priority Year
CHANNEL STRATEGY SUMMARY
Channel Role and aspiration Brand Roles Key SKUs

Strategic (lead)
Strategic

CASK.VN
Tactic
Channel information
Tactic
Total Total Value # outlet Company Company # Company Rate of
volume volume Value outlet sales Tactic

Channel Goals Measurement This year Next year Consumer Key Drivers Customer Key Drivers
Sales volume 1. 1.
Sales value 2. 2.
3. 3.
Value share
Profit

Key drivers and activities

Source of analysis J2BD with Clear KPIs Priority level Brands Volume/value Outlet Investment List of activities ideas (think Big) for each J2BD

Key I/O from: J2BD 1

• Brand
• Channel effectiveness
J2BD 2
• Channel expansion
• Consumer drivers
• Customer drivers J2BD 3
• Consumer trends

05
Channel Strategy Finance for Non-finance
 EX: OLONG TEA PLUS CHANNEL STRATEGY HOUSE

CASK.VN
05
Channel Strategy Finance for Non-finance
CASK.VN
FINANCE FOR
NON-FINANCE

06
Channel Strategy Finance for Non-finance
 FINANCE FOR
NON-FINANCE

CASK.VN
Trade Marketing is one of departments that is under pressure of sales. In
other words, any activity of Trade Marketing must create sales growth for
Channel or Category. That is the reason why Finance knowledge is
imperative when building Trade Marketing Strategy. Understanding Finance
will help Trade Marketers improve Business mindset, know how to control P&L
(Profit & Loss), then deliver more effective activities and set more practical
measuring KPIs for each Channel or each Category that one is in charge.

06
Channel Strategy Finance for Non-finance
 WHY THIS SKILL IS IMPORTANT?
CASK.VN
Insufficient knowledge of Finance
Not understanding Finance will prevent Trade Marketers a lot
from building and executing Trade Marketing plans and from
working with Finance team. Even a Trade Marketer without
Finance foundation cannot get promotion for higher levels in
this career.
▪ Do creative activities but forget budget measuring
platform
▪ Unable to control P&L of Channel Activities
▪ Not easy to work with Finance team
Channel Strategy
Knowledge of Finance
Understanding Finance helps Trade Marketers work with
Finance team more easily in order to offer effective and clear
strategies. Moreover, an excellent Trade Marketing Manager
is one who is capable of controlling and managing P&L of the
whole Channel, Brand, Category that he/ she is in charge.
▪ Build suitable activities for Sales targets
▪ Know how to control P&L of Channel, Brand, Category
in higher levels
▪ Understand Finance’s language, cooperate well with
Finance team to deliver clear Objectives. Possess
enough knowledge to persuade Finance team to
agree with Trade Marketing Activities/ Trade Marketing
Plan when there is a conflict
06
Finance for non-finance
 KEY KNOWLEDGES

CASK.VN Value Chain

Price Management
P&L Calculation

ROI Calculation
Growing our Margin

06
Channel Strategy Finance for Non-finance
 VALUE CHAIN

CASK.VN
• The chain of activities that our brands pass through from manufacturing through to the shelf or bar.
What is a value chain?
• Each step in the chain adds value to our brands but also incurs a cost.

Why is this session • By understanding the flow of money from shopper’s pocket to our pocket, we can better apply Pricing
important? and Trade Investment to add more value, reduce costs, and deliver GP improvements.

• Can you describe the flow of value and money?

• Do you know how the value chain varies across customer, channels and markets?
Questions to keep in mind
• Do you know how you can influence capture of NSV and GP?

06
Channel Strategy Finance for Non-finance
 VALUE CHAIN DEMO

CASK.VN
06
Channel Strategy Finance for Non-finance
 VALUE CHAIN DEMO

Retail price Retailer/distributor margin

CASK.VN
- Retailer/distributor
margin • The retailer sets the price at which our products are sold to consumers.

• This determines the retailer’s margin.

06
Channel Strategy Finance for Non-finance
 VALUE CHAIN DEMO

Retail price Discounts and allowances

CASK.VN
- Retailer/distributor
margin • Our funding of promotional discounts is one of the biggest losses in the value chain but our
promotional funding and our discounts more generally are areas over which we have
Gross sales control.
- Discounts and
value allowances

06
Channel Strategy Finance for Non-finance
 VALUE CHAIN DEMO

Retail price Duty/ exercise tax

CASK.VN
- Retailer/distributor
margin • The amount of duty and excise tax we pay varies by ABV.

Gross sales By looking at our mix we may be able to reduce the slice of our profit given up at this point in
- Discounts and the value chain.
value allowances
- Duty/excise tax
Net sales value

06
Channel Strategy Finance for Non-finance
 VALUE CHAIN DEMO

Retail price Cost of Goods Sold (COGS)

CASK.VN
- Retailer/distributor
margin • The cost paid to Diageo supply.

Gross sales • You may not have control over the cost of raw materials (barley, yeast, glass etc..), labour
- Discounts and or manufacturing costs but there are areas you can influence.
value allowances
- Duty/excise tax
Net sales value
- Cost of goods sold
Better sales forecasting is one way to reduce costs – over
Gross profit forecasting leads to excess stock.

06
Channel Strategy Finance for Non-finance
 VALUE CHAIN DEMO

Retail price Advertising and Promotion

CASK.VN
- Retailer/distributor • Working – Spend that results in advertising and promotional material that consumers see
margin – costs of airtime for TV ads.
• Non-working – spend that consumers don’t see – e.g. TV ad planning and production.
Gross sales - Discounts and
value allowances We can influence the investment that we make in our brand with our customers.
- Duty/excise tax

Net sales value

- Cost of goods sold

Gross profit
- A&P spend per unit
(working and non-
working)

CAAP

06
Channel Strategy Finance for Non-finance
 VALUE CHAIN DEMO

Retail price Overheads

CASK.VN
- Retailer/distributor
margin • Cost of operating - Salaries, car running costs, electricity, consultancy fees etc..

Gross sales These are all things that we can influence every day.
- Discounts and
value allowances
- Duty/excise tax

Net sales value

- Cost of goods sold

Gross profit
- A&P spend per unit
(working and non-
working)

CAAP
- Overheads

Trading profit

06
Channel Strategy Finance for Non-finance
 HOW VALUE CHAIN AFFECTS OUR PROFIT
CASK.VN
What affects our profits?
Retailer/distributor margin
Discounts and allowances
Duty and excise
Costs of goods sold
A&P spend
Channel Strategy
How we can influence?
Recommend a price that is competitive for the
customer and consumer
Ensure our spend is effective - e.g.. In standard
promotions we pay retrospectively on scanned data vs. off invoice
Consider mix
Better sales forecasting
Influence investment made in our brands with
customers
06
Finance for Non-finance
 PROFIT & LOSS (P&L)

CASK.VN
• A Profit & Loss Account is a statement of all expenditure and income over a specific period of time
What is a P&L?
• It provides an at glance summary of the flow of money through our business, from the value of our
gross sales to trading profits and all the costs incurred along the way

Why is this session important? • By understanding the P&L we will understand the key areas where we can drive value for our company

• Can you describe the flow of money from gross sales to trading profit?

• Do you know how we describe gearing in?

Questions to keep in mind
• Do you know your Customers P&L?

• Do your Customers use the same finance language?

06
Channel Strategy Finance for Non-finance
 KEY ELEMENTS OF THE P&L

CASK.VN
GSV (List price multiplied by volume)

Duty Government Tax

All discounts paid to the customer – both on and
Trade spend
off invoice (Trade terms)

NSV Net sales value

Cost paid to Diageo Supply (Cost of Goods

Cost of Sales
Cost of Sold/COGS)
Sales
Gross Profit NSV less cost of goods sold
Gross Profit
A&P Advertising and promotion to promote brands and products

CAAP Contribution after

advertising and promotion
Overheads Costs of operating – Staff costs, Depreciation, rent rates, T&E, Utilities
Overhead
s OIE Other income and expenditure

Trading Profit Trading profit

06
Trading
Profit

Channel Strategy Finance for Non-finance

 GROWING OUR MARGIN

CASK.VN
What do we mean by growing • In our roles we are aware what we can do to influence gross margin
margin?

Why is this session • If we understand what we can do to influence Gross Margin we will have a more profitable P&L
important?

• What can I personally do to increase Gross Margin?

• How can I reduce COGS?

Questions to keep in mind
• How can I reduce A&P spend and other overheads?

• If I give more money to my customer in discounts and allowances I will increase their margin but what’s
the impact on ours?

06
Channel Strategy Finance for Non-finance
 GROWING OUR MARGIN

CASK.VN
GSV

Duty

Trade spend
Net Sales
Gross Gross
NSV Value
margin % Profit
Cost of Sales (NSV)
Cost of
Sales
Gross Profit
Gross Profit
A&P

CAAP

Overheads
Overhead
s OIE

Trading Profit

06
Trading
Profit

Channel Strategy Finance for Non-finance

 3 WAYS TO GROW MARGIN

CASK.VN
GSV 1. NSV Gearing drops through P&L

Duty
1 Increase price
Trade spend
2 Reduce non working discounts and promotional spend
NSV
3 Enhance investment measurement and evaluation
Cost of Sales
Cost of
Sales 4 Improve mix
Gross Profit
Gross Profit
A&P

CAAP

Overheads Active Portfolio Effective Pricing

Embedded M&E
Overhead Review Strategy
s OIE

Trading Profit

06
Trading
Profit

Channel Strategy Finance for Non-finance

 3 WAYS TO GROW MARGIN

CASK.VN
GSV 2. Reduce cost of sales to drive gross profit

Duty
6 Improve sales forecasting
Trade spend
7 Reduce COGS through BVE
NSV
8 Increase use of procurement
Cost of Sales
Cost of
Sales 9 Reduce free good/ change order sizes
Gross Profit
Gross Profit
A&P

CAAP
Cost savings Write-offs/ SLOB
Overheads Procurement reduction Forecasts
Overhead savings Efficiency accuracy
s OIE

Trading Profit

06
Trading
Profit

Channel Strategy Finance for Non-finance

 3 WAYS TO GROW MARGIN

CASK.VN
GSV 3. Reduce cost of A&P and Overheads

Duty
10 Reduce non-working A&P spend
Trade spend
11 Drive efficiency in overhead costs
NSV
12 Comply with policies to reduce fines and penalties
Cost of Sales
Cost of
Sales
Gross Profit
Gross Profit
A&P

CAAP

Overheads CARM PBB

Overhead T&E M&E
s OIE

Trading Profit

06
Trading
Profit

Channel Strategy Finance for Non-finance

 MARGIN CHECKLIST

CASK.VN
P&L area What you can do to help (?)
▪ Know your prices vs.. the competition
Net sales ▪ Analyse trade spend (discounts, rebates, commission & sales costs) to ensure weare investing correctly
▪ Utilise the PETI toolset

▪ Know the gross margin of each SKU

Mix ▪ Improve overall gross margin by raising the portfolio average, as well as on discrete products

▪ Make use of JUBP and S&OP tools to improve sales forecasting accuracy
▪ Assess sales of the existing SKU range and rationalise SKUs to reduce COGS
COGS
▪ Manage VAP and all innovation launches to improve GM

▪ Undertake M&E on all activities. Redirect A&P quickly if necessary, between activities as well as between brands
A &P ▪ Work closely with Procurement to get the best deals. Actively assess & manage vendor performance
▪ Ensure compliance with T&E and PBB guidelines
Overheads ▪ Monitor discretionary spend, e.g. consultancy, events, temporary labour, and ensure it is delivering value.

▪ Embed effective & efficient controls – avoid errors, rework & fines
Other income/expense ▪ Implement preventative rather than detective controls

06
Trading
Profit

Channel Strategy Finance for Non-finance

 PRICE MANAGEMENT – 6 KEY STEPS

CASK.VN
1 2 3 4 5 6
Define level of detail Assess Marginal Assess pricing Assess pricing Consider brand Set optimal sell-out price
and relevant costs and volume relative to relative to brand strategy & direction and identify
competitive set elasticity competitive set equity (optional) guardrails implementation levers

Define which brands, Determine marginal Assess if current pricing Assess if current pricing Take into account any Optimize brand prices
What to do

sub-brands and formats costs and volume is aligned with relative is aligned with current guardrails or boundary relative to competition,
to split out for the elasticity per brand market share within brand equity conditions on brand maximizing value chain
analysis competitive set prices margin

Consumers buy The optimal sell-out Dominant market Higher brand equity There can be limits to Using all of these inputs
products that are price is determined by position allows for allows for higher prices price changes to you can set the new
Why to do it

priced well relative to ratio of marginal costs higher prices protect brand image or optimal price point per
alternatives: all and elasticity maintain brand ladder brand per retailer
comparisons in this
chapter are relative

Account Teams. Yearly Nielsen & sell-in No additional data Brand equity scores Brand and innovation Based on inputs from
Consumer insights, data per SKU per plans, brand ladder steps (1) to (5)
Input

brand switching data, retailer

price ladders, retail shelf

06
Trading
sets, etc.
Profit

Channel Strategy Finance for Non-finance

 RETURN ON INVESTMENT (ROI) AND BREAK EVEN POINT (BEP)

CASK.VN
• ROI: The benefit (return) of an investment is divided by the cost of the investments, expressed as a
What is ROI and BEP? percentage or a ratio.

• BEP is the quantity at which total revenue and total cost are equal and beyond which profit occurs.

• It will give us one of several approaches to building a financial business case.

Why is this session
important? • Understanding of performance measures used to evaluate the efficiency of an investment or to
compare the efficiency of different investments.

• Why we should do the investment?

Questions to keep in mind • What is the better option?

• How can we measure its effectiveness?

06
Trading
Profit

Channel Strategy Finance for Non-finance

 ROI CALCULATON

CASK.VN
Gains from Costs of
investment investment

ROI
Costs of investment

Total benefits Total costs

ROI
(Complex)
Total costs

06
Channel Strategy Finance for Non-finance
 ROI – CHANNEL INVESTMENT

CASK.VN ROI
Incremental Profit

Event cost
Event cost

06
Channel Strategy Finance for Non-finance
 EX: ROI
Invest 200k into A&P which delivers 325k NET incremental turnover of Tea sales (at 40% gross margin)

CASK.VN
What is the ROI?

£325*40% £200

ROI
£200

-35%

06
Channel Strategy Finance for Non-finance
 ROI CONSIDERATION FACTORS

CASK.VN
▪ Incremental returns vs. incremental costs
▪ Sunk cost elimination
▪ Qualitative benefits
▪ Quantification of tangible and intangible costs
▪ Risks and sensitivity analysis of the investment
▪ Limitations of ROI, therefore using other measurements (IRR, NPV, ROCE etc.)

06
Channel Strategy Finance for Non-finance
 BEP CALCULATION

CASK.VN
Profit = Total Revenue - Total Costs
= [ Price x Volume ] - [ Variable Cost + Fixed Cost ]

= [ Price x Volume ] - [ Unit VC x Volume ] - Fixed Cost

Fixed Costs

BEP

Unit Variable
Unit Price
Cost

06
Channel Strategy Finance for Non-finance
 BEP IN DECISION MAKING

CASK.VN
▪ How much would be the total investment?
▪ Should I buy more fixed assets or hire more labors?
▪ What price should I sell for each type of product?
▪ How many products I have to sell to pay all expenses?
▪ Which product should I sell more to maximize my profit?

06
Channel Strategy Finance for Non-finance
 TRADE MARKETING

CASK.VN
SKILLS ASSESSMENT
TOOL BENCHMARK
KEY CONTENT:

III
▪ Trade Marketing team structure

▪ Trade Marketing skill Assessment tool benchmark

▪ Trade Marketing career roadmap

TRADE MKT STRUCTURE AND POSITION

CASK.VN UPDATING
JOBS LEVEL BY WORKING YEAR (CAREER PATH
DEVELOPMENT

CASK.VN UPDATING
CASK.VN
LEARNING

IV
SOLUTION
CASK.VN
CASK.VN
CASK.VN
CASK.VN
CASK.VN
CASK.VN
CASK.VN
Contact us
Facebook: www.facebook.com/cask.vn
Website: www.cask.vn
Hotline: 08 9830 9986