Enterprise Thinking CD. Business Case Alpina SA ranked #4 in sales as Colombia’s largest Food and...

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Enterprise Thinking CD

Transcript of Enterprise Thinking CD. Business Case Alpina SA ranked #4 in sales as Colombia’s largest Food and...

Page 1: Enterprise Thinking CD. Business Case Alpina SA ranked #4 in sales as Colombia’s largest Food and Beverage Company. Sales 2009 U$550 millions dollars.

Enterprise ThinkingCD

Page 2: Enterprise Thinking CD. Business Case Alpina SA ranked #4 in sales as Colombia’s largest Food and Beverage Company. Sales 2009 U$550 millions dollars.

Business Case

• Alpina SA ranked #4 in sales as Colombia’s largest Food and Beverage Company.

• Sales 2009 U$550 millions dollars

• Diversified portfolio of dairy products in 5 main categories: Milk and derivatives, cheeses, beverages, desserts and baby food.

• Sales in: Colombia, Venezuela, Ecuador, US, Central America.

• Frutto: Juice Brand Leader in the Nectar category

– 2007 Reached the leadership of the category– Sales U$20 millions dollars / year

Page 3: Enterprise Thinking CD. Business Case Alpina SA ranked #4 in sales as Colombia’s largest Food and Beverage Company. Sales 2009 U$550 millions dollars.

2006 2007 2008 2009 (P)5,000

25,000

45,000

65,000

85,000

105,000

125,000

51%41% 30% 27%

49%

45%

38% 39.5%

14%30% 30%

1% 2.1%

CALIFORNIA HIT VITAL FRUTTO DEL VALLE

0%28%

45%

Evolution SOM sales NECTARS SEGMENT Value $$$ (‘000000)

The market changed dramatically, 2 companies launched new products in the juice category:

Page 4: Enterprise Thinking CD. Business Case Alpina SA ranked #4 in sales as Colombia’s largest Food and Beverage Company. Sales 2009 U$550 millions dollars.

• The category and consumer behavior changed.

• Competitors have a better distribution and marketing budget.

• Sales goals were to hight for the new scenario.

• We lost share of market.

• The stores that usually sell 2 brands of nectar juices have now 4!

• We were in the middle of a war between Coke and Pepsi.

• Budget reduced in 10%.

• My projects have been stoped.

Results and situation…

Page 5: Enterprise Thinking CD. Business Case Alpina SA ranked #4 in sales as Colombia’s largest Food and Beverage Company. Sales 2009 U$550 millions dollars.

What I learned from this experience, with the ET model.

Tools:

• Quadality in Forecasting

• Redefining

• Project Evaluating Chart

Concepts

• Win and lose by a nose.

• GPP model

• Economic thinking

Enterprise Thinking Model

Page 6: Enterprise Thinking CD. Business Case Alpina SA ranked #4 in sales as Colombia’s largest Food and Beverage Company. Sales 2009 U$550 millions dollars.

Quadality Forecasting Vision

Alpina

The Future of the Beverages Group is to maintain the leadership in the category differentiating their products.

The organization will be motivated to develop a category with differentiation, stable volumes and high profits.

Customers.

Customers in the juice category are looking for healthy and differentiate products. They are going to choose the best product, depending on the brand, the quality and the prices.

Vendors.

The sales force will be happy to sell Beverages and juices, if they have unique products, that satisfied the needs and trends of the costumers.

Global future.

Globally there is a trend in the beverage category, to search more natural and healthy products. Biggest beverage companies will try to sell any brand or product that compete with them.

Page 7: Enterprise Thinking CD. Business Case Alpina SA ranked #4 in sales as Colombia’s largest Food and Beverage Company. Sales 2009 U$550 millions dollars.

Forecasting Markers: Some trends, cycles and patterns that may impact the future:

• Health• Natural• Quality• Branding• Distribution• Communications• Disponibility

Climate Water Petroleum Consumption habits Employment Marketing Sustainability

Lesson: Take management decisions with a more long term vision.

Differentiate your product with natural and healthy benefits to be a sustainable and profitable business for Alpina.

Page 8: Enterprise Thinking CD. Business Case Alpina SA ranked #4 in sales as Colombia’s largest Food and Beverage Company. Sales 2009 U$550 millions dollars.

Redefining: A tool to rapidly strategize8 processes

1. Statement of Challenge:Increase 7% Frutto sales in 2009, reaching 40% of SOM in the Colombian market.

2. Reframe the statement:We should develop Frutto, as the most natural juice of the market, to maintain 40% of SOM in the Nectar category.

• Is the CS one issue? Yes• IS THE CS in present tense? Yes• Is the CS a problem? Yes• Are the CS fact verifiable? Yes• Are the Cs assumptions valid picture? Yes• Is the CS essential to you overall goal? Yes

Page 9: Enterprise Thinking CD. Business Case Alpina SA ranked #4 in sales as Colombia’s largest Food and Beverage Company. Sales 2009 U$550 millions dollars.

Redefining: A tool to rapidly strategize

3. Redefine challenge WWIT:What would it take to develop Frutto as the healthiest snack in the Colombian Market, leading the nectar category and entering in other categories.

4. Scan Solutions: Specialized as a unique Nectar: quantity of fruit /sweetened with fructose/ benefits.Develop Fruit barsDevelop a compote for adults as a innovative and healthy snack

5. Redefined solutions:Innovation/ New Product development/ Enter in new categories to positioning the healthiest of the brand

6. Test solutions: Test new products and concepts.

7. Implementation: Execution / NPDS funnel.

8. Post review: Results in SOM and sales.

Page 10: Enterprise Thinking CD. Business Case Alpina SA ranked #4 in sales as Colombia’s largest Food and Beverage Company. Sales 2009 U$550 millions dollars.

Redefining: Lessons

• As we didn’t make a redefined process in the right moment:

– We lost the focus of our business.

– We waste time looking for answers for bad results.

– Sales people were discouraged / Impossible to reach sales and goals.

– The company never understood the new situation as a new challenge and change the goals.

– Waste of time and resources.

– We did not use this new competitive situation to redefine the business.

Page 11: Enterprise Thinking CD. Business Case Alpina SA ranked #4 in sales as Colombia’s largest Food and Beverage Company. Sales 2009 U$550 millions dollars.

Managing Projects: Project Evaluating Chart

List Projetcs TimeHours / days

Impact on firm ROI Money

invested Priority

Frutto 600 /120 85 U$ 200 000 U$2 000 000 A

Vitalis 160 /80 60 U$ 35 000 U$ 400 000 B

Carioca 240 / 60 30 U$ 15 000 U$ 100 000 C

Soya P 80 / 120 25 U$ 75 000 U$ 1 500 000 E

Baby Food 600 / 240 20 U$ 12 000 U$ 750 000 F

Juice Eco 360 / 180 75 U$ 250 000 U$ 2 500 000 D

Page 12: Enterprise Thinking CD. Business Case Alpina SA ranked #4 in sales as Colombia’s largest Food and Beverage Company. Sales 2009 U$550 millions dollars.

Project Evaluating Chart: Lessons

• I was surcharged of projects, threaten by big competitors and pressed to provide $ results.

• I should have concentrate in 2 projects.

• I should have redefine the priorities to improve the projects assigned with greatest positive impacted.

• Maximize organizational resources.

The right projects and the correct number of projects.

Page 13: Enterprise Thinking CD. Business Case Alpina SA ranked #4 in sales as Colombia’s largest Food and Beverage Company. Sales 2009 U$550 millions dollars.

Win and lose by a noseSolve the permanent lost of clients in an specific region

where competitors were very strong.

• We had a meeting with the sales team of that region to discuss the challenge.

• We didn't’ have enough resources to invest.

• We involved all the vendors in the problem to provide solutions.

• Every vendor accepted the challenge to create 10 new clients per month.

• 80 vendors in this region.

• We increase in 2 months the base of clients of Frutto in 1600 new clients.

• We recover the SOM of the brand in that region.

Page 14: Enterprise Thinking CD. Business Case Alpina SA ranked #4 in sales as Colombia’s largest Food and Beverage Company. Sales 2009 U$550 millions dollars.

GGP MODEL

Systems and Structure80%

20%The people

The ability to compete depends on the systems and structures and on the people.

Do we have the right structure to compete against Coke and Pepsi in the Beverage Business?

No, for the distribution, portfolio and their core business.

However the leaders created a more profitable business to compete: reducing costs and increasing differentiation of the product.

Page 15: Enterprise Thinking CD. Business Case Alpina SA ranked #4 in sales as Colombia’s largest Food and Beverage Company. Sales 2009 U$550 millions dollars.

Economics of thinking: Increase rewards and reduce risks.

As an idea moves forward the cost increases exponentially.

Costs

TimeNew Project Juice ECo

Research/ Market

opportunities

New Ingredients

Marketing Plan Dvp

SamplesAgencies

New competitive situation- Project stopped

“The better a leader is at taking the time to think through an initiative up front, the less expense he or she incurs for the organization in the long run.” D Goldsmith.

Business case