2. A bit about the developers Catherine Chudinova The motivator and analyst ArtemKozhemyakin Macro, tech, design E-mail: ekaterinachude@gmail.com ParaDoX E-mail:xenus.t@gmail.com Maria Zhalova The translator and corrector Ivan Lashin The analyst of creative tasks E-mail:zhalovamaria@rambler.ru E-mail:myerto@mail.ru Special thanks to National Research University Higher Scholl of Economics.
3. STRUCTURE Geographical interpretation Some macro values and prime analyses Problem of functional doubling and marketing analysis Concerning the structure it looks Management economy and chain updates Influence on market Project team and it plans
20. Dependency between Russian gdp and fmcg market volume FMCG market volume GDP r=0,997* * Pearson's product-moment coefficient between Russian GDP and FMCG market volume. Data: 2000-2007 in the prices of 2000.
21. Russian FMCG market growth forecast IMF forecast “Paradox” forecast Average growth: 16% per year
23. In the enemy camp 2008 – restructuring Russian production companies- start of east export politics 2008 - restructuring businesses in Russia, buying minority stakes in companies - sales growth of 4-5% 2009 – restructuring sales – local management improvement – market share growth 2-3%
24. BUT… To achieve 210% growth after 5 years You Need to Remain Competitive
29. Structure becomes facile and flexibleDetermination of necessary steps for the full transition from the old structure to the new one
30. The chain of command Top level National sales director (Field Manager) Regional Sales manager West Food Regional level Territory level Regional center
31. The chain of command Top level National sales director (Field Manager) Regional Sales manager West Food Regional level Problem of functional doubling and centralization of marketing decisions Why is it dangerous? Territory level Regional center
37. Barriers to company’s expansion on the marketLim {utility} -> 0 per each new person Congestion with unnecessary instances Redundancy of regional problems solved at the territory level prevents from concentrating on real local problems Difficultieswith localization of marketing programs under conditions of severe competition between different regions Growth of doubling in case of market’s expansion
43. Barriers to company’s expansion on the marketLim {utility} -> 0 per each new person Congestion with unnecessary instances Redundancy of regional problems solved at the territory level prevents from concentrating on real local problems Difficultieswith localization of marketing programs under conditions of severe competition between different regions Growth of doubling in case of market’s expansion
44.
45. Lack of direct relations between marketing departments of different levels
47. Geographic distraction of key managers in the regionsPoor data exchange, data loss, needs of lower levels are not taken into account Inflexible marketing system and poor data exchange conflict with: A) Promotion of Russia (Moscow) as a key point in east market expansion * B) Uniliver ‘s international policy of good’s localization The lack of real representation in some of the managers about local problems entrusted to them in the region *International program“Uniliver Local Roots”
48. Concerning the structure it looks : Reorganization at theField Sales level Territory level From 80 000 to120 000 rub. From 78 000 to 112 000 rub. from 50 000 to 89 000 rub. Base units Marketing cosulting Volgograd Reports to: Territory Sales Manager Department / unit: Territory Sales Manager,TerritoryN Responsibilities and tasks: control and adaptation of sales programs and conceptions, relations with local retailers,registration of the market conditions at the territory level Interrelation: Regional Marketing Department, Channel Development and Modern Trade Account From 90 000 to 15 000 rub. Local Adaptation Manager ( LAM) Why is this replacement necessary? There is a small effort at the territory level but multifunctionality is necessary Flexibility of decentralization programs is guaranteed Does the work of 3 units Controls the situation, has advantages of “close relation with the market” Replacement is justified by the successful experience of such international companies asNestle,P&G, KraftFood , etc. Economy from 118 000 to 206 000 rub. Information about wages - http://www.headhunter.com/
49. Concerning the structure it looks : Reorganization at theField Sales level Regional level Regional Sales manager Uniliver usually works with the major retailers and retail chains,that is why transactions are mostly closed in the Moscow head office – KEY ACCOUNTS CLIENTS Direct relation Сustomer Marketing Directors ( Food& HRC) – Customer Marketing Executive ( Regional) – Local Adaptation Managers Information about the major retailers working with Unilever look up at the Attachment Flexible promotion Corresponds with the international Unilever’s program of local market’s adaptation From 111 000 to130 000 rub. From 108 000 to 127 000 rub. Trade connections specialist Economy from 76 000 to88000 rub. From 143 000 to 168 500 rub. Why is this replacement necessary? Peculiarities of development of RussianFMCG market requires not only traditional European modern trade relationships but also work with traditional markets – striking example is theeast region Positioning of Uniliver Russian as a junction of cluster for company’s expansion to the east market needs the consolidation of sales on both directions Reports to: Regional Sales Manager Department / unit : Regional Sales Department,Territory N Responsibilities and tasks :manages the development of the key clients: international, local (including chains), outlets in the all cities of current region Interrelation :Territory Sales Managers,Regional Sales Managers, Key Account Department Information about wages - http://www.headhunter.com/
50. Management economy Before 50% 50% Food& HPC Food HPC manager manager manager After 60 % Wage economy = 40%!
51. Concerning the structure it looks : At the top level management reorganization of Field Sales means integration ofFood & HPC departments.However, marketing departments should be left divided. Top level Customer Development Regional Council Same Same Same Regional Sales Manager (Food) Regional Sales Manager (HPC)
53. The chain of command - ManagmeNt UPDATE Top level Customer Development Regional Council Same Same Same Regional Sales Manager (Food) Regional Sales Manager (HPC) Regional Sales manager Regional level Trade connections specialist Territory level Local Adaptation Manager ( LAM)
54. Influence on demand More active marketing policy more consumers want to buy a brand sales growth Faster distribution consumer always can find the good in the store brand become more popular sales growth The effect of known changes people can see, how company deal with workers, notice the company brand in the mass media sales growth
55. Influence on supply More complicated stuff no posts, where people doing the same work costs degree prime cost decrease sales growth Geographical position regional centres located in same regions logistic costs degree prime cost decrease sales growth More powerful medium management local management make local decisions company need less top managers costs degree prime cost decrease sales growth
58. Invitees from BRIC&CIS countries 5 potential markets expertsProject realization Team Directions leaders 11 specialists 5 key clients representatives optional 21 different and engaged specialists
