New Retail Segmentation v2 - Indonesia - 2015 - Understand Your Retailer PDF

An affiliate of Philip Morris International
Indonesia New Retail Segmentation
Agenda
1. Case for Change
2. Project Objective & Deliverables
3. Project Scope
4. Project Approach
5. Indonesia New Retail Segmentation
6. Case Study
2
CONFIDENTIAL, for HMS PMID internal purposes only
Agenda
1. Case for Change
3. Project Scope
4. Project Approach
6. Case Study
3
Case for Change

1. Different segmentation for different retail channels, no holistic perspective on
where to invest and how much
Industry Volume
Industry Volume
Space for CE
Outlet Potential
RRO
STAR
KA
Investment cost 2012 = USD 1.1/000 sticks
USD 0.7/000 sticks

4
Case for Change

2. No/less information to justify strategic resources allocation
Industry Volume
Space for CE
A
1
Where to deploy?
PPOSM
Call cycle decision
Retail Platform (SRC)
2
3
4
5
Case for Change

2. No/less structured information to justify strategic resources allocation

3. No structured information on which brand(s) and mechanic to be activated at a
particular outlet
>80% of commercial initiatives deployed at 1A and 2A regardless brand and mechanic
Trade program scale in terms of participant number is predominantly big (>300

outlets) and lacking consumer reach information
6
Case for Change

2. No/less structured information to justify strategic resources allocation

3. No structured information on which brand(s) and mechanic to be activated at a
particular outlet
4. Information from National Customer Survey 2010 was not incorporated to
segmentation and not fully utilized for commercial initiatives decisions
Some areas did update the

information through ad-hoc surveys
(11 areas in 2011, 26 areas in 2012, 8
areas in 2013)
Attributes are more on outlet quality

rather than capability/potential
7
Agenda
1. Case for Change
3. Project Scope
4. Project Approach
6. Case Study
8
Project Objective & Deliverables

Project Objective:
Develop a new progressive retail segmentation encompassing retailer, outlet, and
consumer profiles which will enable us to allocate the right resources/right commercial
initiatives with the right brand at the right touch point at the right time
Project Deliverables:
Retails Commercial Drivers to be leveraged by HMS.
Segmentation for all retail channels (RRO, IMO, KA, STAR, HOP) for more focus,
effective & efficient strategic resources allocation.
Targeted commercial initiative with the right brand or multibrands at the right time
through structured information filtering by not only Field Sales & Sales Promo Dept
but also by Field Marketing, Trade Marketing, KA and Brand Management
Consumer reach information for more efficient deployment linking to brand

BPWATTS/BAM.
9
Agenda
1. Case for Change
3. Project Scope
4. Project Approach
6. Case Study
10
Project Scope
Project Scope:
Mandatory Channels : RRO, STAR, Convenience, IMO, Spm/Hpm & HOP
Additional Channels : EZD Downline, Strategic Marketing Outlets
Project Area : Nationwide
11
Project Scope
Project Scope:
Project member
Agenda
1. Case for Change
3. Project Scope
4. Project Approach
6. Case Study
13
Project Approach
Project Approach:
1. Inspired by OCs Leveraging the Trade concept but tailored to Indonesia market
dynamics, legal environment and business workload
Leveraging the Trade Framework from OC

Define what
drives my
business
Define
Channel Role
and Prioritize
Allocate
Resources
and Deploy
Develop
Retailer Value
Proposition
Education
and
Activation
Indonesia Retail Segmentation Framework

Define what
drives my
business
Prioritize
Channel
Tailored
Allocate
Resources
and Deploy
Develop
Retailer Value
Proposition
Education
and
Activation
Out of Scope
14
Project Approach
Project Approach:
2. In other words, this is not a rocket science. This is simply combining and
enhancing information from current segmentation and National Customer Survey

and make a full use of it for resource allocation and commercial initiatives
deployment
3
4
5
Enhanced
Segmentation
Enhanced
NCS
15
Project Approach
Project Approach:
3. Use current Sales System & Tool (iSMS with Handheld) to collect data
Attributes are more relevant for restricted

markets
Requires heavy customization (time & cost) for

Indonesia
Future Development for IPAD (Field IQ)
16
Project Approach
Project Approach:
4. Use OCs Trade Segmentation Tool & Brand Plan Deployment Tool to plot the
outlets to segmentation grids and to filter outlets for a particular commercial

initiative (zero cost and no customization is required)
Trade Segmentation Tool
Brand Plan Deployment Tool
17
Agenda
1. Case for Change
3. Project Scope
4. Project Approach
6. Case Study
18
Indonesia New Retail Segmentation
Changing our commercial approach to optimize the allocation of

resources: Money, People and Time
What drives my business?
Do I have the resources to grow up the business?

Am I allocating my resources efficiently?
19
B2B Framework
Adult smoker journey
Define what
drives my
business
Prioritize
Channel
Allocate
Resources and
deploy
Education and
Activation
20
Agenda
1. Case for Change
3. Project Scope
4. Project Approach
a. Workshop 1
(i) Define What Drive My Business
(ii) Prioritize Channel

b. Field Survey
c. Workshop 2
(i) Strategic Resources Allocation

(ii) 3D Deployment Filter
6. Case Study
21
Agenda
1. Case for Change
3. Project Scope
4. Project Approach
a. Workshop 1

b. Field Survey
c. Workshop 2

6. Case Study
22
Commercial Drivers
1. Commercial Drivers determined based on external environment such as market
dynamics, commercial issues/opprtunities and brand BPWATTS
Market Dynamics
Commercial
Issues & Opportunities
COMMERCIAL DRIVERS
Brand BPWATTS &

Strategies
23
Commercial Drivers
2. Based on the external environment, commercial drivers have many variation start
from fundamental drivers to market spesific drivers
MARKET SPECIFIC
FUNDAMENTAL
Handling
Availability
Product
Visibility
POS
Comm.
Consumer
Engagement
Pricing
Retailer
Advocacy
Speed To
Market
CA
Support
Consumer
Data
24
Commercial Drivers
2. Based on the external environment, commercial drivers have many variation start
from fundamental drivers to market spesific drivers
3. Based on all relevant factors in Indonesia, 5 commercial drivers and their
weighting already defined as follow :
Commercial Drivers
Definition
Weighting
Current
Future
Availability & Handling
Number of SKUs listed at touch point, SKUs to be

available at touch, eliminating OOS Incidence
30%
30%
Product Visibility
Ability to display packs (i.e. facings, planogram, etc.)

including product staging
25%
25%
Retailer Advocacy
Retailers capabilities to communicate product / brand

message to adult smoker
20%
25%
POS Communication
Ability to put POS material at optimum place
15%
5%
Consumer Engagement
Ability, willingness and opportunities to interact

directly with adult smokers for trial and adoption
10%
15%
25
Commercial Drivers
4. In order to elaborate and measure Commercial Drivers at touch point level,
attributes to translate the Commercial Drivers were identified as follow :

Commercial
Drivers
Relevance
Low
Capability : 1
Mid
Capability : 2
High
Capability : 3
20%
0-10 SKU
11-25 SKU
> 25 SKU
5%
less than 60% of

SKU available
60 - 80% of
SKU available
more than 80% of

SKU available
5%
less than 60% of

SKU available
60 - 80% of
SKU available
more than 80% of

SKU available
Cigarette Display Location
10%
Hidden
Far from
Selling Point
At Selling
Point
Product Display
10%
No Display
Sleeping Pack
Front Pack Facing
Space for Facing
5%
Small (<20 pack

facing)
Medium (20-40 pack

facing)
Large (>40 pack facing)
Active Communication
20%
passive
active
influencer
Visual impact
7.5%
Less
Moderate
Vocal Point
5%
TPOSM / POC
only
TPOSM & TTD
Full Package
2.5%
No
Willingness
5%
No
Yes
Initiative
Open Space
3%
0 - 5 m2
6 - 25 m2
>25 m2
Consumer Habit
2%
Come & Go
Weighting
Attributes
Number of SKU Handling
Availability &
Handling
Product
Visibility
Retailer
Advocacy
POS
Communication
30%
25%
20%
15%
OOS Incidence major brand

(HMS & Competitor) based on
survey - pack selling
OOS Incidence HMS major brand
based on KSI - pack selling in t
he last 3 months
Space for POS Comm
Owner Compliance of Execution
Consumer
Engagement
10%
Yes
Hang Out
26
Commercial Drivers
4. In order to elaborate and measure Commercial Drivers at touch point level,
attributes to translate the Commercial Drivers were identified as follow :

5. To support Commercial Initiatives Deployment, it needs to collect additional
attributes by considering 3D parameter (consumer profile, retailer profile and
touch point profile) as listed below :
Consumer
Profile
Age
Occupation
Open / Close Neigborhood
Consumer Decision Making
Regular / Iregular Consumer

Consumer Reach
Peak Hours
Peak Days
Retailer
Profile
Buying Frequency to Upline

Distance to Upline (Time)
Upline Name
Payment Method to Upline

Retailer Smoking Status
Personal Interest
Touch Point
Profile
Industry Volume
Location vs Surrounding
Opening Hours
Building Type (Permanent / Non)
Building Status (Owned / Rent)
POS Indoor / Outdoor Regulation

Registered by Cigarette Company
Store Width
% Business to End Consumer
27
Agenda
1. Case for Change
3. Project Scope
4. Project Approach
a. Workshop 1

b. Field Survey
c. Workshop 2

6. Case Study
28
Prioritize Channel
After Commercial Drivers have defined, it needs to assessing the capabilities of each
channel to support brands by following 3 analyses :
1. Channel GETS Analysis
2. Competition Gap Analysis
3. Channel Profitability Analysis
29
Prioritize Channel
1. Channel GETS Analysis Current Condition
Commercial Drivers
Channel
Capabilities
Market
Relevance
Scale of 1 to 3
RRO
STAR
IMO
CVS
SPM/
HPM
HOP
30%
2.5
2.5
Product Visibility
25%
2.5
Retailer Advocacy
20%
2.5
1.5
POS Communication
15%
1.5
1.5
2.5
Consumer Engagement
10%
2.5
2.08
1.68
2.38
2.88
1.55
1.60
Channel Gets Index
30
Prioritize Channel
1. Channel GETS Analysis Future Condition
Commercial Drivers
Channel
Capabilities
Market
Relevance
Scale of 1 to 3
RRO
STAR
IMO
CVS
SPM/
HPM
HOP
30%
2.5
2.5
Product Visibility
25%
2.5
1.5
Retailer Advocacy
25%
2.5
2.5
POS Communication
5%
1.5
2.5
Consumer Engagement
15%
2.5
2.5
2.5
2.43
2.03
2.70
2.93
1.00
1.60
Channel Gets Index
31
Prioritize Channel
2. Competition Gap Analysis Channel RRO
32
Prioritize Channel
3. Channel Profitability Analysis Channel STAR
18,000
Sales Volume (mio sticks)

Total Customer
Net Profit (USD / 000 Sticks)
% Net Profit to Gross Revenue
16,000
14,000
249
49,569
16.4
24%
12,000
8,000
In 000 USD
12,351
10,000
16,932
6,000
493
4,000
15
2,000
3,938
4,073
Gross Revenue Operation-Related

Spendings
Trade-Related
Spending
DME & Trade

Expense
Net Profit
33
Prioritize Channel
3. Channel Profitability Analysis Summary
Net Profit (USD / 000 Sticks)
16.4
18.4
19.2
18.7
IMO
CVC
SPM/HYP
10.2
RRO
SRC
STAR
HOP
(9.1)
(19.4)
34
Agenda
1. Case for Change
3. Project Scope
4. Project Approach
a. Workshop 1

b. Field Survey
c. Workshop 2

6. Case Study
35
Field Survey
36
Channel Fact Sheet

By putting this (GETS Index, Competition Gap and Channel Profitability Analysis)
together combined with other elements for all channels, we compile the channel
fact sheets which become key document that is shared for strategic decisions
across the commercial organization to secure the necessary alignment and focus.
37
Channel Fact Sheet

By putting this (GETS Index, Competition Gap and Channel Profitability Analysis)
together combined with other elements for all channels, we compile the channel
fact sheets which become key document that is shared for strategic decisions
across the commercial organization to secure the necessary alignment and focus.
38
Agenda
1. Case for Change
3. Project Scope
4. Project Approach
a. Workshop 1

b. Field Survey
c. Workshop 2

6. Case Study
39
Workshop 2 Objective
Supporting Tools
Channel Segmentation and

Strategic Resources Allocation
Trade Segmentation
Tools
Deploying 3-D Filtering

Brand Plan Deployment
Tools
40
What are the differences ?
Trade Segmentation Tools
Call Cycle
Sales Force Allocation
Outlet Replacement
Time Spent Allocation
POSM Re allocation
Brand Focus Availability Each Cluster
etc
Top Level Perspective
Non Related to Brand
Brand Plan Deployment Tools
Stick Selling
Stock Management
Visibility
DST Deployment
Mobile Entertainment
Small Event
etc
Commercial Initiatives
Budget Spending
Touch Point Granularity
Brand Related
41
Trade Segmentation Tools
Call Cycle
Outlet Replacement
POSM Re allocation
Brand Focus Availability Each Cluster
etc
Top Level Perspective
Non Related to Brand
42
Example : POS Plotting and Segment Creation
Industry
Volume
DEFEND
INVEST
C2
C1
EXPLORE
OPTIMIZE
C4
*MINIMIZE INVESTMENT
C3
C5
POS
Gets Index
Potential
1.0
1.4
1.8
2.2
2.6
3.0
* Below Break Even Point and low Get Potential

Score Card from Segmentation Tool
Channel RRO
Y axis determined refers to current NCC approach :
Industry Volume
Bottom threshold : use threshold of class 4 (150 ppw) which is considered as less activity
cluster
Top threshold : use class 1 threshold = 750 ppw
2.1
2.5
invest
explore
defend
750
explore
150
GETS Index
minimize
X Axis
Commercial Drivers
Availability and Handling
Product Visibility
Retail Advocacy
POS Communication
Consumer Engagement
Value of Threshold
1st threshold
2nd threshold
Wtd
Capability
GETS
Capability
GETS
30%
25%
20%
15%
10%
3
3
1
1
1
0.9
0.75
0.2
0.15
0.1
3
3
3
1
1
0.9
0.75
0.6
0.15
0.1
100%
2.1
2.5
45
Trade Segmentation Score Card (RJKI)
Score Cards
Segment Facts
INVEST
EXPLORE
DEFEND
MINIMIZE
# POS
1,085
4,703
27,661
310
Avg. Volume/Store
(Pack/Week)
1,844
1,460
723
124
Avg. Gets Index

Potential
2.6
2.4
1.9
1.8
Industry Volume
(mio stick/month)
152
521
1,517
New Trade Segmentation Utilization (RJKI)
Directions / Initiative
INVEST
EXPLORE
DEFEND
MINIMIZE
PM Strategic
Decision
Current
Call Cycle (weekly)
78%
69%
55%
36%
PPOSM Investment
63%
36%
11%
10%
Planogram
Compliance
98%
98%
98%
94%
Availability
(Core Brand)
100%
100%
100%
100%
Availability
(Pot Brand)
100%
99%
96%
88%
OOS
(Core Brand)
0.0%
0.0%
0.0%
1.0%
OOS
(Pot Brand)
2%
3%
7%
17%
Future
Current
Future
Current
Future
Current
Future
INVEST
EXPLORE
DEFEND
MINIMIZE
PM Strategic
Decision
Current
Visibility
Core Brand
95%
84%
72%
67%
Visibility
Pot Brand
87%
68%
45%
38%
SOM
61%
60%
59%
60%
Trade Program
Shop Sign
Stand Alone
30%
12%
2%
2%
TTD
Stand Alone
37%
26%
9%
9%
SRC
24%
8%
1%
1%
Future
Current
Future
Current
Future
Current
Future
INVEST
EXPLORE
DEFEND
MINIMIZE
PM Strategic
Decision
Current
HMS
Carry Product
61%
33%
9%
10%
DJR
Carry Product
7%
6%
2%
1%
BAT
Carry Product
7%
6%
5%
6%
GG
Carry Product
4%
4%
3%
3%
Future
Current
Future
Current
Future
Current
Future
Regional Outer Jakarta
Trade Segmentation Score Card (RJKO)
Score Cards
Segment Facts
INVEST
EXPLORE
DEFEND
MINIMIZE
# POS
1,812
6,316
26,046
580
Avg. Volume/Store
(Pack/Week)
2,018
1,591
762
120
Avg. Gets Index

Potential
2.6
2.4
2.0
1.9
Industry Volume
(mio stick/month)
277
762
1,506
New Trade Segmentation Utilization (RJKO)
INVEST
EXPLORE
DEFEND
MINIMIZE
PM Strategic
Decision
Current
Call Cycle (weekly)
81%
66%
38%
33%
PPOSM Investment
68%
38%
11%
8%
Planogram
Compliance
99%
99%
99%
100%
Availability
(Core Brand)
100%
100%
100%
100%
Availability
(Pot Brand)
99%
98%
94%
89%
OOS
(Core Brand)
0.0%
0.0%
0.0%
1.0%
OOS
(Pot Brand)
3%
5%
11%
17%
Future
Current
Future
Current
Future
Current
Future
INVEST
EXPLORE
DEFEND
MINIMIZE
PM Strategic
Decision
Current
Visibility
Core Brand
91%
82%
68%
83%
Visibility
Pot Brand
86%
70%
50%
60%
SOM
57%
56%
56%
58%
Trade Program
86%
72%
49%
24%
Shop Sign
Stand Alone
26%
9%
3%
1%
TTD
Stand Alone
40%
26%
7%
4%
SRC
17%
5%
1%
0%
Future
Current
Future
Current
Future
Current
Future
INVEST
EXPLORE
DEFEND
MINIMIZE
PM Strategic
Decision
Current
HMS
Carry Product
57%
30%
8%
4%
DJR
Carry Product
13%
9%
4%
2%
BAT
Carry Product
7%
7%
5%
2%
GG
Carry Product
9%
7%
4%
5%
Future
Current
Future
Current
Future
Current
Future
Area Retail Jakarta Barat
Trade Segmentation Score Card (Jakarta Barat)
Score Cards
Segment Facts
INVEST
EXPLORE
DEFEND
MINIMIZE
# POS
191
891
5,403
145
Avg. Volume/Store
(Pack/Week)
1,897
1,405
718
123
Avg. Gets Index

Potential
2.6
2.4
1.9
1.9
Industry Volume
(mio stick/month)
27
95
294
INVEST
EXPLORE
DEFEND
MINIMIZE
PM Strategic
Decision
Current
Call Cycle (weekly)
85%
66%
41%
30%
PPOSM Investment
60%
37%
10%
9%
Planogram
Compliance
98%
96%
97%
91%
Availability
(Core Brand)
100%
100%
100%
100%
Availability
(Pot Brand)
100%
99%
97%
93%
OOS
(Core Brand)
0.0%
0.0%
0.0%
1.0%
OOS
(Pot Brand)
2%
4%
8%
13%
Future
Current
Future
Current
Future
Current
Future
INVEST
EXPLORE
DEFEND
MINIMIZE
PM Strategic
Decision
Current
Visibility
Core Brand
94%
81%
64%
68%
Visibility
Pot Brand
87%
68%
41%
42%
SOM
57%
56%
57%
59%
Trade Program
Shop Sign
Stand Alone
29%
14%
3%
2%
TTD
Stand Alone
38%
28%
8%
8%
SRC
23%
8%
1%
1%
Future
Current
Future
Current
Future
Current
Future
INVEST
EXPLORE
DEFEND
MINIMIZE
PM Strategic
Decision
Current
HMS
Carry Product
60%
36%
9%
9%
DJR
Carry Product
6%
5%
2%
1%
BAT
Carry Product
6%
5%
3%
2%
GG
Carry Product
6%
7%
5%
1%
Future
Current
Future
Current
Future
Current
Future
Area Retail Bogor
Trade Segmentation Score Card (Bogor)
Score Cards
Segment Facts
INVEST
EXPLORE
DEFEND
MINIMIZE
# POS
533
1,697
4,918
64
Avg. Volume/Store
(Pack/Week)
2,021
1,581
797
121
Avg. Gets Index

Potential
2.6
2.4
1.9
1.9
Industry Volume
(mio stick/month)
82
204
297
New Trade Segmentation Utilization (Bogor)
INVEST
EXPLORE
DEFEND
MINIMIZE
PM Strategic
Decision
Current
Call Cycle (weekly)
86%
64%
33%
8%
PPOSM Investment
60%
29%
8%
5%
Planogram
Compliance
100%
99%
99%
-%
Availability
(Core Brand)
100%
100%
100%
100%
Availability
(Pot Brand)
100%
99%
97%
95%
OOS
(Core Brand)
0.0%
0.0%
0.0%
1.0%
OOS
(Pot Brand)
2%
5%
10%
13%
Future
Current
Future
Current
Future
Current
Future
INVEST
EXPLORE
DEFEND
MINIMIZE
PM Strategic
Decision
Current
Visibility
Core Brand
92%
82%
68%
80%
Visibility
Pot Brand
88%
69%
45%
44%
SOM
60%
60%
59%
65%
Trade Program
89
76
61
31
Shop Sign
Stand Alone
29%
10%
2%
2%
TTD
Stand Alone
100%
100%
100%
100%
SRC
16%
4%
1%
0%
Future
Current
Future
Current
Future
Current
Future
INVEST
EXPLORE
DEFEND
MINIMIZE
PM Strategic
Decision
Current
HMS
Carry Product
61%
29%
7%
0%
DJR
Carry Product
6%
7%
3%
0%
BAT
Carry Product
10%
6%
4%
5%
GG
Carry Product
13%
10%
5%
5%
Future
Current
Future
Current
Future
Current
Future
Channel STAR
Industry Volume
Channel STAR has same approach and threshold with RRO
2.1
2.5
invest
explore
750
defend
explore
150
minimize
GETS Index
X Axis
Commercial Drivers
Product Visibility
Retail Advocacy
POS Communication
Consumer Engagement
Value of Threshold
1st threshold
2nd threshold
Wtd
Capability
GETS
Capability
GETS
30%
25%
20%
15%
10%
3
3
1
1
1
0.9
0.75
0.2
0.15
0.1
3
3
3
1
1
0.9
0.75
0.6
0.15
0.1
100%
2.1
2.5
65
Channel STAR
Score Cards
Segment Facts
INVEST
EXPLORE
DEFEND
MINIMIZE
# POS
130
1,419
28,064
7,116
Avg. Volume/Store
1,426
800
346
109
Avg. Gets Index

Potential
2.6
2.4
1.9
1.7
PM Strategic
Decision
Current
Future
Current
Future
Current
Future
Current
Future
Call Cycle (weekly)
0.5
*****
0.6
*****
0.6
***
0.7
PPOSM Investment
***
**
66
Channel Convenience
Y axis determined based on :
Bottom threshold : same approach to RRO/STAR (150 ppw)

Top threshold : average selling out account Indomaret (represent national spread of CVS)
= 666 ppw
2.6
defend
invest
666
optimize
150
minimize investment
X Axis
Commercial Drivers
Product Visibility
Retail Advocacy
POS Communication
Consumer Engagement
Value of Threshold
explore
Wtd
30%
25%
20%
15%
10%
100%
Threshold
3
3
1
3
3
0.90
0.75
0.20
0.45
0.30
2.60
Retailer Advocacy considered to be dynamic variabel

due to vary type of retailer advocacy degree of each
touch point which is very important to develop our
brand
67
Channel Spm/Hpm
Y axis determined based on :
Bottom threshold : same approach to Convenience (150 ppw)

Top threshold : average Industry/outlet based on Nielsen survey = 618 ppw
Industry Volume
2.4
defend
invest
618
optimize
150
minimize investment
explore
GETS Index
X Axis
Commercial Drivers
Product Visibility
Retail Advocacy
POS Communication
Consumer Engagement
Value of Threshold
Wtd
30%
25%
20%
15%
10%
100%
Threshold
3
3
1
3
1
0.90
0.75
0.20
0.45
0.10
2.40
Basic commercial drivers needed to Spm/Hpm is

Product Visibility
Consumer Engagement
68
Trade Segmentation Tools Application

Call Cycle
1x1
1x1
1x2
RRO
RRO
RRO & STAR

1x1
1x2
RRO
STAR
PPOSM Investment
Outlet Replacement
2nd Priority
Cover
1st Priority
Cover
3rd Priority
Cover
2nd Priority
Cover
Replace
No PPOSM Investment
69
Trade Segmentation Tools Application

Brand Focus Availability
Miin 13 brands
Very Intensive
All Brands
More Intensive
Core and Potential Brands
Maintain
More Intensive
Less Priority
Min 13 brands
Core Brands
YOU
DO
Have
Any
Idea
?
70
Brand Plan Deployment Tools
Stick Selling
Stock Management
Visibility
DST Deployment
Mobile Entertainment
Small Event
etc
Commercial Initiatives
Budget Spending
Touch Point Granularity
Brand Related
71
Brand Plan Deployment Tool
Targeted 3-dimensionally Initiatives
Analysis & Assessment work
Consumer
Profile
Retailer
Profile
Touch Point
Profile
# targeted touch point
Commercial Initiatives Jakarta Zone
STRATEGY BPWATTS
Commercial Initiative Brief

Despite continued strong volume growth A Mild is facing increased competition challenging its
leadership of innovation and quality in the key, fast growing SKM LTLN segment, resulting in
slowing SOS growth
Strengthen emotional link with existing smokers through increased LAMP/HOP platform
Reinvigorate product perception for LA-29 smokers with product enhancement
Leverage MLD12 as alternative choice for smoker LTLN in segment middle price
Target Consumer
Source Brands
Male LA-29
Brotherhood
SES A,B
BAM Focus
Awareness
Trial
Purchase
Penetrate
Smoker
Objective
Increase SoM MLD16 0.3
DRIVERS
Availability
&
Handling
Product
Visibility
Retail
Advocacy
POS
Communication
Consumer
Engagement
Commercial Initiatives Jakarta Zone
3D Filtering Multi Brand Single Initiatives

Initiatives : Stick Selling
3D Deployment
A Mild
U Mild
Consumer Profi
Consumer decision making (Smoker)
Retailer Profile
Retailer Smoking Status (Smoker)
Active Communication (Influencer &

Active)

Active)
%Business to end consumer (>80%)
Brand Over Index Competitor (DJ

Super, FIM, Clas Mild, Dunhill Mild)
Brand Over Index Competitor (Pro Mild,

Clas Mild)
Touch Point Profile
75
76
77
3D Filtering Single Brand Multi Initiatives

Brand : A Mild
3D Deployment
Consumer Profile
Stick Selling
DST
Peak Days (Friday Sunday)
Peak Hour ( > 18.00)

Retailer Profile
Willingness to Consumer Engagement

(Initiatives, Yes)

Active)
Touch Point Profile


78
79
80
Flow of Thinking
Top Down Budget
Zone
Region
Area
Budget allocation for 500 touch points
Bottom Up
Prioritization
Targeted 650 touch points
Targeted touch point

Prioritization
Tools Governance
Trade Segmentation
Tools
Brand Plan Deployment

Tools
HQ Channel Retail
HQ Zone
HSO Analyst
Regional Analyst
HQ Trade Marketing
HQ Consumer Engagement
HQ Channel Retail
HQ Zone
HSO Analyst
HQ Trade Marketing
HQ Consumer Engagement
Regional Analyst (Sales & Marketing)
Area Analyst (Sales & Marketing)
Area Supervisor (Sales & Marketing)
82
Agenda
1. Case for Change
3. Project Scope
4. Project Approach
6. Case Study
83
Filtering outlet program

SRC & Klub Juara
New Retail Segmentation Utilization
Area Retail Jakarta Selatan

3D Deployment
Consumer Profile
Area Retail Depok
SRC A MILD
3D Deployment
Age (18 35)

Occupation (Karyawan/Wiraswasta/
Profesional & Mahasiswa)
Regular consumer
KLUB JUARA DSS COMBI
Consumer Profile
Touch Point Profile
Retailer Profile
SRC
# Outlet
% Business to end consumer (> 80%)

Space for POS Communication (Full
Package)
Visual Impact (Vocal Point)
Building Type (Permanent)
Building Status (Owned)
Owner Compliance of Execution (Yes)
Owner Communication to consumer
(Active)
Owner willingness of Consumer
Engagement (Yes & Initiative)
Total Volume >350 ppw
Current
SRC
86
Result
Filtering
60
# SRC match Filtering
13
CC
858
Touch Point Profile
Retailer Profile
Klub Juara
# Outlet
# Klub Juara match
Filtering
CC
Age (25-35, > 35)

Occupation
(Buruh/Nelayan/Petani/Sopir &
Karyawan/Wiraswasta
Regular consumer
% Business to end consumer (>
80%)
Space for POS Communication
(TTD & Full Package)
Visual Impact (Vocal Point)
Building Type (Permanent)
Area Surounding, Perumahan,
Industry, Terminal
Owner Compliance of Execution
(Yes)
Outlet good communication
Selling Out GG Fim & Dj Super 12
Over Index (som > 23%)
Current
Klub Juara
100
Result
Filtering
184
9
545
New Trade Segmentation Utilization

List Outlet SRC A Mild (Filtering NRS match with Panel Outlet) Area Jakarta Selatan
List Outlet Klub Juara (Filtering NRS match with Panel Outlet) Area Jakarta Selatan)
Top 10 upline ws beserta jumlah

total downline masing2 ws
Top Ten WS Downline
Jakarta Barat
No
Code
# downline
1
2
3
4
5
6
7
8
9
10
BOG0003729
BOG0000235
BOG0002491
BOG0008031
BOG0002057
BOG0005738
BOG0001497
BOG0000494
BOG0006662
BOG0005645
205
142
135
110
108
104
93
92
84
79
No
Code
# downline
1
2
3
4
5
6
7
8
9
10
JK30011577
jk30003417
JK30000579
JK30001313
JK30002767
JK30000904
jk30006153
JK30003379
JK30006608
JK30011482
167
164
146
144
141
121
121
97
97
89
WS Name
Cluster
SUBUR JAYA PS. ANYAR

SINAR INTAN
SEKAR WANGI
1001
JAGO 3
LESTARI MAKMUR
YUDI
SUKASARI II
ESKA
DEDE
ROYALCROWN
GRANDE
GRANDE
PREMIERE
GRANDE
GRANDE
GRANDE
GRANDE
GRANDE
GRANDE
WS Name
Cluster
TOKO ERY
TOKO CUNG
TOKO AMOY
TOKO BUYUNG
TOKO BARU
UD. TRI WIJAYA
PD. JAYA MAKMUR
TOKO SURYA ABADI
TOKO KENCANA
TOKO ILHAM
EXECUTIVE
GRANDE
EXECUTIVE
GRANDE
GRANDE
GRANDE
EXECUTIVE
GRANDE
GRANDE
EXECUTIVE
Bogor
Thank You
89

New Retail Segmentation v2 - Indonesia - 2015 - Understand Your Retailer PDF

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

New Retail Segmentation v2 - Indonesia - 2015 - Understand Your Retailer PDF

Uploaded by

Copyright:

Available Formats

An affiliate of Philip Morris International

Indonesia New Retail Segmentation

Case for Change

Investment cost 2012 = USD 1.1/000 sticks

USD 0.7/000 sticks

Case for Change

2. No/less information to justify strategic resources allocation

Case for Change

2. No/less structured information to justify strategic resources allocation

>80% of commercial initiatives deployed at 1A and 2A regardless brand and mechanic

Trade program scale in terms of participant number is predominantly big (>300

Case for Change

2. No/less structured information to justify strategic resources allocation

segmentation and not fully utilized for commercial initiatives decisions

Some areas did update the

Attributes are more on outlet quality

Project Objective & Deliverables

Retails Commercial Drivers to be leveraged by HMS.

effective & efficient strategic resources allocation.

Consumer reach information for more efficient deployment linking to brand

Mandatory Channels : RRO, STAR, Convenience, IMO, Spm/Hpm & HOP

Additional Channels : EZD Downline, Strategic Marketing Outlets

Project Area : Nationwide

CONFIDENTIAL, for HMS PMID internal purposes only

dynamics, legal environment and business workload

Leveraging the Trade Framework from OC

Indonesia Retail Segmentation Framework

enhancing information from current segmentation and National Customer Survey

Attributes are more relevant for restricted

Requires heavy customization (time & cost) for

Future Development for IPAD (Field IQ)

outlets to segmentation grids and to filter outlets for a particular commercial

Trade Segmentation Tool

Brand Plan Deployment Tool

Indonesia New Retail Segmentation

Changing our commercial approach to optimize the allocation of

What drives my business?

Do I have the resources to grow up the business?

Adult smoker journey

(ii) Prioritize Channel

(i) Strategic Resources Allocation

(ii) Prioritize Channel

(i) Strategic Resources Allocation

Brand BPWATTS &

Availability & Handling

Number of SKUs listed at touch point, SKUs to be

Ability to display packs (i.e. facings, planogram, etc.)

Retailers capabilities to communicate product / brand

Ability to put POS material at optimum place

Ability, willingness and opportunities to interact

CONFIDENTIAL, for HMS PMID internal purposes only

attributes to translate the Commercial Drivers were identified as follow :

less than 60% of

more than 80% of

less than 60% of

more than 80% of

Cigarette Display Location

Front Pack Facing

Space for Facing

Small (<20 pack

Medium (20-40 pack

Large (>40 pack facing)