Successful Plan Templates ANNUAL OPERATING PLAN Successful Plan Templates

Seven Core Principles of Revenue Growth Management Focus on price rather than cost when balancing supply and demand. 2. Replace cost-based pricing with market-based pricing. 3. Sell to segmented micro markets, not just to mass markets. 4. Save your best products for your most valued customers. 5. Make decisions based on knowledge, not supposition. 6. Exploit each product’s value cycle. 7. Continually evaluate your revenue growth opportunity.

SWOT Analysis

Strategic Framework - Definitions Vision – What we are aiming for Mission – What we are here to do Aspiration – What we want to become Roles – What part we play Imperatives – Major thrusts by function defining our strategies Objectives – The look of perfect we want to achieve Goals – The numerical expression of our objectives Strategies – What set of actions we will initiate Measures – the numerical results of strategies undertaken 4

Actions Actions Actions Actions Vision: (Statement) Mission: Develop and sustain a long-standing, authentic relationship, with consumers, customers and distributor / broker. Imperative:1 Build an Emotional connection with Consumers Imperative:2 Customize our go to market approach Imperative:3 Renovate & Innovate to Differentiate our Offer Imperative:4 Empower our organization to be Resilient and Responsive Actions #1 #2 #3 Actions #1 #2 #3 Actions #1 #2 #3 Actions #1 #2

Plan built around role Role Strategy Operational Plan What is the industry landscape? What does Value look like for our audience? What is our Desired Value Proposition? What is the role of (my Brand / item)? Role Strategy What is our GTM strategy? Objectives & Goals? What are the building blocks? What is the action plan? What are the tactical initiatives? Execute & Measure Operational Plan

Desired Value Proposition Value Proposition Evaluation Value Proposition Pillar Examples:: Manufacturer or Brand or Family of Products? My Brand / Company Competitor #1 Competitor #2 Competitor #3 Operational Efficiency / Cost Leadership Product / Service Leadership & Innovation K-C and P&G both are primary in customer intimacy and market share leveraging FQ is primary in customer intimacy and cost leadership No one is product leadership. Our hope is that this is where we can play. Innovation is not just product performance (skincare is a component of that). Other innovation is driven through our intimate knowledge of the consumer (note this is different than an intimate relationship with the retailer). For example, an innovation can be in how we engage with consumers through our online communities, or our product systems (bundles of products tailored to consumer needs). Our innovation comes from insights gained through our #1 position globally. We should try to steer conversation away from bottleneck issues stemming from GHC. Important to consider our competitors value proposition today, and if it plans to change in the future. For example, if we plan to deliver product leadership through products tailored to meet consumer needs through our deep insights, we should be aware if P&G or K-C plan to move in this type of value proposition in the future. If so, it will indicate whether or not we are in for a battle, or will be uncontested in this new direction. A war game-like exercise could unlock this in more detail. Why are KC and P&G successful focusing on same thing? Answer: the overlap in value prop is for very different parts of the product portfolio. P&G’s value prop is for lights as an extension of Fempro. In fact K-C is suffering in their light products (Poise). K-C’s value prop is in their underwear (Depend) Customer Intimacy / Solutions Market Share Leveraging Why are we choosing this type of value proposition? How well does it differentiate us? Does this align with the issues we are addressing for retailers?

Desired Value Proposition Articulation The core (brand / Item) value proposition to retailers is: _____________________________________________________ How can we articulate the value prop? Give your offering relevancy to customers by saying (outright) what problem it solves, or how it will improve their current situation. Make it clear as day Use the retailers’ language Quantify the value for your customers by listing specific benefits Avoid generalities Place priority on your point of difference, which is the reason why your solution is better than the competition in some notable way. “Why this over that” The key elements of our value proposition are: _______________________________________________

Strategy: Create an assailable, preferred position with customer by focusing on increasing value vs. discounts. Initiative: Develop and test (xxx) for (specific channel), anchored in DSMPQ fundamentals. When / Where: Geography: Northwest USA Brand / Pack: xxx Timing: (See below) Project Details: Targeted Channels: xxx Key Project Elements: Gain system alignment to fund Sell test to targeted retailers Determine stretch targets above AOP growth Agree targets and incentives with customers Sales info system for accuracy of sales plan Develop management routine to monitor performance Critical Path: Action: Deadline: Accountability: Xx Yy zz Cost / Benefit: Costs: Item: Cost $$: Funding from: Volume Forecast: % growth: Total Incremental u/c:

Business Planning Framework Destination Strategy Structure Capability Management Routine Reward & Recognition systems