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Presentation to: Category Management Association Conference October 27, 2009
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Agenda What is Storewars? How Storewars works Key learning objectives Program structure Suggested participants/formats Storewars clients / countries Participant learnings/feedback For more information
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What is Storewars? An exciting, challenging MBA-level business simulation that provides participants with: Risk-free environment to test strategic business concepts Valuable industry knowledge Understanding of challenges facing their trading partners Negotiating and team building skills Leading to: Improved business results Increased consumer satisfaction
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How We Learn 10% of what we read 20% of what we hear 30% of what we see 50% of what we both see and hear 70% of what is discussed with each other 80% of what we experience personally 95% of what we teach to someone else -William Glasser
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How Storewars Works Five profitable $100 million companies Two retailers Three CPG manufacturers Two separate and distinct markets Two categories Teams decide marketing, sales and commercial issues Teams negotiate trading agreements
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Decision-Making and Negotiation Promotions Cooperative Advertising Quantity Discounts Terms of Payment Production PositioningAdvertising R &D Shelf space AssortmentStore Image Pricing
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How Storewars Works Decisions fed into computer model Simulates 6 month period 4 decisions / 2 years Company financial data reports and market research studies provided after each decision Winners determined by market share and Economic Value Added (EVA)
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Learning Objectives of Storewars Offer insights into manufacturer and retailer relationships
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From the book Agentry Agenda: Selling Food in a Frictionless Marketplace by Glen A. Terbeek available at AgentryAgenda.com or Amazon.com.
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Cartoon from the book Agentry Agenda: Selling Food in a Frictionless Marketplace by Glen A. Terbeek available at AgentryAgenda.com or Amazon.com
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Two Different Realities
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The Retailer as a Brand!
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Learning Objectives of Storewars Offer insights into manufacturer and retailer relationships Use enhanced negotiation skills for win-win situations
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Learning Objectives of Storewars Offer insights into manufacturer and retailer relationships Use enhanced negotiation skills for win-win situations Work in teams to achieve a group objective Operate more effectively with other departments in your organization
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The Effects of Forward Buying!
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Learning Objectives of Storewars Offer insights into manufacturer and retailer relationships Use enhanced negotiation skills for win-win situations Work in teams to achieve a group objective Operate more effectively with other departments in your organization Determine business strategy and implement effectively
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Tactics Must Support Strategy…
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…Or You Don’t Get Results!
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Learning Objectives of Storewars Offer insights into manufacturer and retailer relationships Use enhanced negotiation skills for win-win situations Work in teams to achieve a group objective Operate more effectively with other departments in your organization Determine business strategy and implement effectively Transform information into profitable decisions Provide trading partners/customers with most appropriate information for effective decision-making Use your time more efficiently to make decisions
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From the book Agentry Agenda: Selling Food in a Frictionless Marketplace by Glen A. Terbeek available at AgentryAgenda.com or Amazon.com.
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Program Structure Program activities Group interaction/team work Lectures Feedback sessions Team reviews Key learnings presentations/ discussion Facilitators (2) Coach Lecturer/discussion leader Analyst Administrator
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Suggested Participants Challenging for all levels up to senior management Retailers, wholesalers, manufacturers, market research providers, ad agencies, consultants Buyers, category managers, merchandising, sales, trade marketing, marketing, market research Cross functional learning helpful to other departments such as finance, operations, systems
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Main Formats Corporate course — all participants are colleagues from the same company from the same or different markets. Can invite trade partners Shared course — participants are drawn from 2 or 3 different companies. Open course — participants come from a variety of companies and mix with peers from across the industry. 24-34 Participants – 29 Optimal
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Some Storewars In-House Clients Ahold Supervalu Tesco Wal*Mart Metro (Germany) Metro/Mansour Manufacturing and Distribution (Egypt) BAT Cadbury Schweppes Coca-Cola Grolsch Heineken Kelloggs Kraft International Mars Nestle Philip Morris International Sara Lee Unilever Wrigley Hewlett Packard
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Hope’s Storewars Countries (outside US) Hong Kong China Indonesia (2x) Malaysia Singapore India (4x) Thailand U.A.E. (14x) Egypt Saudi Arabia (2x) Austria Belgium (6x) Croatia (3x) Czech Republic Hungary Netherlands (2x) Poland (2x) Portugal Brazil (2x) Mexico
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What Participants Learned Nielsen Open Session - Dubai Strategy planning before tactics Find differential from competition Preparation is everything Make the most of marketing tools/ research Individual strengths should be utilised Try to be in other’s shoes (It is really hard to be a manufacturer!) “Be POLITE”….especially when you are in trouble
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What Do Our Clients Say? “There are not a lot of training programs out there for retail category managers, but Storewars was an ideal opportunity to help improve the performance of our people while they were under the fire of making decisions.” Michael Knight, Senior Vice President, Giant Food Stores “It is like a laboratory in which you can put people in stressful situations… You can see how creative people can be.” Michael Knight, Senior Vice President, Giant Food Stores “The SUPERVALU participants gained valuable insights into how their manufacturer partners prepare for and actually negotiate.” Michael Terpkosh, Director, Category Management Development & Retail Pricing, Supervalu “Storewars strengthened the working relationships between our merchandising staff and the manufacturers.” Michael Terpkosh, Director, Category Management Development & Retail Pricing, Supervalu ”We don’t think this much at work. Storewars gave us a first-hand look at problems faced daily by retailers.” Nick Jay, General Manager, Sales, Al Marai, Saudi Arabia
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Programs - 2010 Retailer Sponsored Rite Aid Ahold (?) Category Management Association Sponsored Bentonville Minneapolis SF ??? Other potential sponsors Other industry service suppliers Universities – UCLA (?) Manufacturer In-House
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For More Information Visit www.cpgcatnet.org/page/storewars/
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www.cpgcatnet.org/page/storewars/
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For More Information Visit www.cpgcatnet.org/page/storewars/www.cpgcatnet.org/page/storewars/ Contact Hope Mandel – Shelton, CT 203-926-6926 (office) 203-856-1330 (cell) hmandel@cpgcatnet.org
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