Sales and Marketing Productivity Team 1 Added Value Analysis TOOL USED IN SALES AND MARKETING PRODUCTIVITY PROJECTS

Sales and Marketing Productivity Team 2 The Composition Of The Presentation CHECKLIST EXAMPLES SOFTWARE INTRODUCTION

Sales and Marketing Productivity Team 3 Overview What is Added Value Analysis? Who is involved? Why is AVA effective? How is it performed?

Sales and Marketing Productivity Team 4 What is an AVA? An Added Value Analysis (AVA) is a systematic observation with the aim of: focusing everyone's energy on essential activities improving effectiveness of all activities by streamlining decision making and improving accountability achieving lasting improvements by eliminating non- essential tasks building commitment to ongoing improvement by involving staff in the process

Sales and Marketing Productivity Team 5 The AVA study is not: An attempt to get people to work harder A way of getting the same workload done with fewer people An attempt to reduce the quality of the work to the detriment of the business What an AVA is NOT...

Sales and Marketing Productivity Team 6 Who is involved? All relevant Marketing, Sales and Supply Chain functions, i.e. Marketing manager Product / Brand manager Key Account Manager (KAM) Supply chain managers Any type of supporting function related to Marketing and Sales

Sales and Marketing Productivity Team 7 Why is an AVA effective? The participants generate the improvement idea in conjunction with the team It involves all areas in innovative thinking and idea analysis The management approval process ensures a fit with long term strategy It improves managers' cost awareness of the tasks performed It streamlines activities, tailoring the organisation to its workload

Sales and Marketing Productivity Team 8 Do we know which activities we spend our time on? Why carry out this survey? 30% Knowledge ? 100% Knowledge Better Decisions can be made (Prior to Survey) (A full Time & Motion study) (This Survey)

Sales and Marketing Productivity Team 9 The Composition Of The Presentation INTRODUCTION EXAMPLES SOFTWARE CHECKLIST

Sales and Marketing Productivity Team 10 How is it performed? Overview in 4 steps  Preparation with the unit heads  Analysis of activities  Idea generation  Action plan

Sales and Marketing Productivity Team 11 Preparation with the unit heads - Meet with the Unit / Department Heads - Explain how the study is carried out - Explain the role of the organization and the expected benefits - Explain timetable and key dates - Show examples of results from previous projects - Show example of documents to be used (ie: AVA form)

Sales and Marketing Productivity Team 12 Analysis of activities Preparation phase - Define the areas of the Company to analyse and the names of people that are going to receive the AVA - Define the AVA form(s), adapted for the market - Make the computer ready to input the data once the AVAs are received - Prepare a cover letter and a sheet with instructions on how to fill out the AVA

Sales and Marketing Productivity Team 13 Analysis of activities AVA collection phase - Send in a close envelope AVAs to participants - Once AVAs are received verify their correctness - contact authors to solve compilation errors, if any AVA collection phase (2nd option) - Gather participants in group sessions - Explain the AVA during the meeting - Ask them to compile the AVA during the same meeting

Sales and Marketing Productivity Team 14 Analysis of activities Process AVAs with the computer application - Input AVAs as soon as they are received and validated - Extract reports from the system to analyse results

Sales and Marketing Productivity Team 15 Idea generation Perform Brainstorming sessions to: - Analyse results of AVA - Generate ideas to improve productivity and eliminate activities with no value added - Evaluate cost, benefits, and feasibility of ideas proposed - Integrate ideas with other proposals coming from the project Present ideas to management to obtain approval

Sales and Marketing Productivity Team 16 - Define timetable for implementation considering also pilot initiatives - Define resources needed - Start implementation Action Plan

Sales and Marketing Productivity Team 17 Tips... Don't underestimate the time needed Test the forms before sending them out by someone from the local Market Inform people that no names will be disclosed and that results will be analysed in aggregated form

Sales and Marketing Productivity Team 18 The Composition Of The Presentation INTRODUCTION CHECKLIST SOFTWARE EXAMPLES

Sales and Marketing Productivity Team 19 Market X: Breakdown of main Brand Management activities A third of brand management's time is spent in meetings (28%) and market visits (7%) Of the remaining 65%, consumer related activities, new products and sales are the three key activities of Brand Management OTHERS CONSUMER RELATED ACTIVITIES NPD STRATEGY SALES SUPPLY CHAIN MARKET VISITS MEETINGS

Sales and Marketing Productivity Team 20 Market X: Consumer related activities COMMUNI- CATION 3.2% AGENCY- MEETINGS 6.3% PROMO- TIONS 4.2% PR & SPONSOR- SHIP 1.3% Involves major activities of planning and implementing communication programs and promotions Brand Management spends only 15% of total time on this - hence time spent on each task is low

Sales and Marketing Productivity Team 21 New product development involves 14.5% of brand management time However time spent on each specific activity is low Market X: New product development TASTING 0.7% LAUNCH FOLLOW-UP 1.9% PLANNING & COORD. 6.5% LAUNCH PREPA- RATION 0.9% INT. LAUNCH 1.9% RESEARCH 0.9% MKT ANALYSIS 1.7%

Sales and Marketing Productivity Team 22 The Composition Of The Presentation INTRODUCTION CHECKLIST EXAMPLES SOFTWARE

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Sales and Marketing Productivity Team 26 Added Value Analysis TOOL USED IN SALES AND MARKETING PRODUCTIVITY PROJECTS