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FIFTH P Strategy Growth Enablers Assessment 1. Industry landscape and challenges in managing performance 1 1 An effective way through a challenging landscape.

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Presentation on theme: "FIFTH P Strategy Growth Enablers Assessment 1. Industry landscape and challenges in managing performance 1 1 An effective way through a challenging landscape."— Presentation transcript:

1 FIFTH P Strategy Growth Enablers Assessment 1

2 Industry landscape and challenges in managing performance 1 1 An effective way through a challenging landscape 2 2 The winning proposition 3 3 How to find out more 4 4

3 A combination of industry-wide issues and internal factors are impacting businesses’ performance… A challenging industry landscape Some of the most pressing issues in CEOs’ mind  Long-term market price deflation increases P&L volatility and erodes profit margins  Highly promoted market with increased shopper promiscuity and intensified retail price war  High proliferation of brands and commoditisation of the lager category is eroding brand equity  Changing consumer taste and a growing shopper attitude towards experimentation among younger drinkers further diminish loyalty to traditional lager brands  Difficulty in objectively assessing the impact of internal forces and team dynamics on performance  Challenge in connecting detailed performance metrics with the full P&L  Focus on creating strong innovation pipelines and brand building activities that keep the business from getting into trading wars that further deflates the market  How to inject brand value back into the portfolio through effective new launches and an holistic brand portfolio strategy  Need to rebalance trade and above the line investment to focus on base sales growth through the role of the shopper and consumer

4 …with companies facing some long-lasting roadblocks in their quest for growth… DIFFICULTY IN CONTROLLING TRADE SPEND VOLATILITY AND LIMITING ITS IMPACT ON MARGIN EROSION 1 Example 2 INTANGIBLE INEFFICIENCIES CAUSED BY INHERENT FLAWS IN BUSINESS FOUNDATIONS  How do you measure the impact of collaboration and cross- functional interaction on your ability to perform in the market?  How do you evaluate how fit for purpose your organisational structure, processes and tools are in enabling growth?  How do you measure and create linkages between certain culture enablers and actual activities in the growth agenda?  Lack of visibility of true impact of price increases on long-term cost of trade  Inability to clearly ascertain which activities are growth enablers and which are growth detractors

5 Industry landscape and challenges in managing performance 1 1 An effective way through a challenging landscape 2 2 The winning proposition 3 3 How to find out more 4 4

6 CEO’s can cut through the complexity and implement a new approach to bring clarity on growth enablers Have a repeatable process to evaluate the foundations’ impact on driving growth for the business Develop a simple and actionable priority list of the most impactful enablers of growth to drive change and reduce inefficiencies Achieve high level of clarity as to what drives growth and what detracts from it amongst the current activities of the business 1 2 3

7 1  A clear process to decompose the structure of the P&L and the sources of growth  Evaluation of each of the current activities toward company performance  Assessment of external vs internal causes and linkages to foundations + 2%- 5% - 2% + 10% NPDsLoss in Distributio n Loss of Listing Structural Increase in Cost of Trading Net Price Realisati on WHAT MAKES OR BREAKS GROWTH? - 3% Brand Loyalty

8 2 Alignment of PEOPLE’s skills with business requirements Ability to constantly monitor the COMMERCIA L ENVIRONME NT Best ORGANISATIO NAL STRUCTURE for cross- functional collaboration Cohesive CULTURE and WAYS OF WORKING to retain talent Fit for Purpose ASSETS & CAPABILITIE S to support growth agenda Perceived strength of VALUE PROPOSITIO N in the market A combination of impartial assessment of capabilities coupled with qualitative statements extraction from within the teams (via interviews and targeted workshops) to arrive at a fair and holistic overview of the impact of each of these pillars on growth, benchmarked against industry peer group and best-in-class EXAMPLE OF KEY ORGANISATION’S PILLARS AFFECTING GROWTH Have a repeatable process to evaluate the foundations’ impact on driving growth for the business

9 3 Develop a simple and actionable priority list of the most impactful enablers of growth to drive change and reduce inefficiencies A clear overview of the most critical external and internal material issues based on their impact on financial performance that provides the ability to effectively prioritise future actions and subsequent improvement programmes Red: Severe Problems exist or future problems may arise Yellow: Business foundations can be improved to a healthier level to contribute towards achieving growth Green : ‘healthy’ components for the time being CULTURE & WAYS OF WORKING EXAMPLE OF SCORECARD TO IMPLEMENT AND MONITOR IMPROVEMENT PROGRAMMES

10 Industry landscape and challenges in managing performance 1 1 An effective way through a challenging landscape 2 2 The winning proposition 3 3 How to find out more 4 4

11 What is the most effective way to achieve this?  LOW COST  RAPID ASSESSMENT  LOW IMPACT ON BAU & RESOURCES  ACTIONABLE OUTCOME  OUTSIDE-IN THINKING AND OBJECTIVITY

12 Industry landscape and challenges in managing performance 1 1 An effective way through a challenging landscape 2 2 The winning proposition 3 3 How to find out more 4 4

13 Interested? How to find out more… We are Fifth P. Since 2011, we’ve worked with our clients in the FMCG & consumer product industries across Europe to create growth strategies that sustain long-term growth & leave lasting legacies +44 (0) 20 3735 5762 info@fifth-p.com

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