This document provides an overview and examples of sales and marketing analyses that can be conducted for retail businesses. It discusses analyzing stores by cohorts, product range analyses, sales and margin efficiency, expansion strategies, saturating existing markets, and multichannel considerations. The examples show how to increase gross margin by reallocating product space, calculate saturation points by region, and rank potential markets for expansion based on defined criteria and market size. The document is intended to teach management consultants how to analyze and improve sales and marketing for retail customers.

1. 1
Sales and Marketing Analysis for
Management Consultants
Practical guide how to grow and improve the business of your customer

2. 2
Sales and marketing has been evolving constantly. Therefore, you
have to become very analytical and innovative to improve and
find new ways to grow business of your customers

3. 3
The presentation is organized into 4 sections
FMCG Retail B2B Services
B2C Services SMCGCommodity

4. 4
Theory
Examples of real life
sales analyses
In the presentation there will be 2 things

5. 5
Thanks to this presentation you
will learn how in practice to
analyze and improve sales and
marketing

6. 6
Sales Analysis for Management
Consultants
$190
$10
What you will see in this presentation is a part of my online course
where you can find also all the calculations in Excel
Click here to check my course

7. 7
Retail - Examples of business
analyses of Sales and Marketing

8. 8
Introduction to Retail section

9. 9
This section will cover 3 things
Overview of Sales and
Marketing in Retail
Main Challenges in Sales
and Marketing
Cases of Business Analyses

10. 10
Overview of Sales in Retail

11. 11
Retail is the sales channel for many products, including its own
private label. More and more they also join marketplaces and act
as a multichannel

12. 12
Retail supply chain is not only long and involves many parties but also
is fluctuating a lot

13. 13
Overview of Marketing in Retail

14. 14
In Retail a lot of the marketing activities are around building the right
concept and supporting it via bought media. Customer base is also crucial
Create retail concept
that is a good fit with
your target group
Put it in front of the
customer
Build online presence
and act as a
multichannel
Increase brand
awareness via bought
media
Build loyalty program
and customer base
Increase customer
purchase frequency
via bought media
Use the customer
base to up-sell and
cross-sell

15. 15
For a typical Retailer owned media, especially his stores and products are the
most important marketing channel. Nevertheless, he spends a lot of money
on bought media
Bought MediaOwned Media Earned Media
▪ TV, radio, newspaper ads
▪ Paid digital reach: Adwords, Facebook, Pinterest,
Instagram, YouTube, paid digital banners etc.
▪ SEM
▪ Leaflets, inserts etc.
▪ Outdoor advertisement
▪ Affiliate programs
▪ Catalogues
▪ Advertisement at your partner’s media i.e.
Retailer
▪ Sponsored content
▪ Product placement
▪ Influencers (Youtubers, bloggers, celebrities)
▪ Brand Ambassadors
▪ Participation in wider loyalty program
▪ Stores, especially fascia
▪ If you have private label then your product and
the package
▪ Your people, including uniforms
▪ Your web presence especially your website,
fanpages on Facebook and , YouTube channels
▪ Newsletters, sms and customer base
▪ Mobile apps and the underlying customer
(contact) base
▪ Own content and content marketing
▪ Referral Program
▪ Your own loyalty program
▪ Free users (in Freemium and Free trial)
▪ Partners’ owned media when you do not have to
pay to get in touch with end-consumers
▪ Partner’s sales force and customer support
▪ Guest blogging, guest presence in YouTube
channels etc.
▪ Word Of Mouth especially Virality
▪ Presence in aggregators of reviews (i.e. Yelp)
▪ Organic SEO
▪ Co-branding with FMCG especially in
advertisement
▪ User Generated Content (post by fans,
recommendations, photos, reviews etc.)

16. 16
Main challenges in Sales and
Marketing for Retail

17. 17
There are number of challenges in the Sales and Marketing in
Retail
Multichannel Price transparency
Price comparison
sites and aggregators
Increasing
importance of
marketplaces
Saturation point in
penetration
LFL growth
Expansion modelPrivate Labels
Big data
Self service in offline
on the level of online
Changing value
proposition
Changing formats
and concepts

18. 18
Introduction to cases
for Retail

19. 19
In this section I will show you examples of analyses that you will be
doing in Retail for sales and marketing
Analyses of stores by
cohorts
Product range analysis
Sales and margin efficiency
of retail
Introduction to Expansion Saturating existing markets
Expansion strategy into
other countries
Multichannel
Cannibalization of sales by
offline and online stores
Optimizing sales process at
the store

20. 20
Analyses of stores by
cohorts - Introduction

21. 21
You can analyze a retail chain by following cohorts / segments
Vintage (which year it was open)
Format type
Format evolution phases
Location
Type of city
Type of traffic
Others

22. 22
You usually show for specific cohort / segment the following
metrics
Sales density (Sales per sq. m)
Margin density (Sales per sq. m)
Number of stores
Total sales generated by the cohort
Total margin generated by the cohort
% in total sales generated
% in total margin generated

23. 23
Product range analyses -
Introduction

24. 24
In Retail you have space that you divide among different
product groups
Group A
Group B
Group E
Group C
Group D
Group F

25. 25
For every group you should calculate the total margin using sales
density, % Gross Margin and space allocated to specific group
% Gross Margin
Sales density
Margin density Space in sq. m
x
Total margin
x

26. 26
You have to analyze their performance and decide how to
split the space
4 250
3 000
2 500
2 000 2 400
4 000
Group A Group B Group C Group D Group E Group F
Sales density
In USD/ sq. m
40%
55%
44%
60%
40%
60%
Group A Group B Group C Group D Group E Group F
% Margin
In %
1 700 1 650
1 100 1 200 960
2 400
Group A Group B Group C Group D Group E Group F
Margin density
In USD/ sq. m
400
200
50
300
200
100
Group A Group B Group C Group D Group E Group F
Space allocation
In sq. m
Total margin
generated by the
store

27. 27
Product range analyses -
Example

28. 28
Let see how we can allocate the space differently for our
example
4 250
3 000
2 500
2 000 2 400
4 000
Group A Group B Group C Group D Group E Group F
Sales density
In USD/ sq. m
40%
55%
44%
60%
40%
60%
Group A Group B Group C Group D Group E Group F
% Margin
In %
1 700 1 650
1 100 1 200 960
2 400
Group A Group B Group C Group D Group E Group F
Margin density
In USD/ sq. m
400
200
50
300
200
100
Group A Group B Group C Group D Group E Group F
Space allocation
In sq. m
Total margin
generated by the
store

29. 29
Different split of space among categories enabled us to increase
the Gross Margin by USD 227 K
680 744
330
413
360 210
192 120
240 570
Margin generated Basic Option
In thousands of USD
Margin generated - Modified Option
In thousands of USD
Group A Group B Group C Group D Group E Group F
Total margin generated by the shop
In sq. m
1 857 2 084

30. 30
Sales and margin
efficiency of retail

31. 31
Imagine that you were asked to have a look at the efficiency of
retailer with many concepts in cities in Poland
Gdańsk
Szcecin
Bydgoszcz
Poznań
Wrocław
Katowice
Łódź
Kraków Rzeszów
Kielce
Lublin
Warszawa
Białystok
Gdynia-Sopot
Gliwice
Olsztyn
Opole
Zielona
Góra
Current number of stores

32. 32
In the case of efficiency there are to main KPIs retailers use
Sales density Margin density

33. 33
You want to see which format and city are the most efficient
Formants / Concepts City
▪ What is the sales density per
format? Which one is the best
▪ What is the margin density
per format? Which one is the
best
▪ What is the sales density per
city? Which one is the best
▪ What is the margin density
per city? Which one is the
best

34. 34
Introduction to Expansion

35. 35
Once your business model is right you will want to expand
and grow. There are some options to do that
Increase size in current locations
Enter new locations but still the cities
were you are already
Enter new cities in your country
Enter new countries
Add new brands but within the same
concept
Create new concepts in Retail
Enter totally new business models

36. 36
Expansion of current model -
options

37. 37
When it comes to expanding of current business models there are 2
aspect at which you should look: management and type of format
Own Stores
Franchising
Joint Management
Stand alone store
Store in Store /
Corner

38. 38
Saturating existing markets -
intro

39. 39
If you are present on specific market you want to know when you will
reach a saturation market – the maximal number of shops that will not
cause much cannibalization. Below 3 different cases
1 000
1 500
800
2 000
# of stores Saturation 1 Saturation 2 Saturation 3

40. 40
Obviously in most cases the general number is not enough as
you are present in many regions
Gdańsk
Szcecin
Bydgoszcz
Poznań
Wrocław
Katowice
Łódź
Kraków Rzeszów
Kielce
Lublin
Warszawa
Białystok
Gdynia-Sopot
Gliwice
Olsztyn
Opole
Zielona
Góra
Current number of stores

41. 41
Therefore you calculate saturation point by regions
Gdańsk
Szcecin
Bydgoszcz
Poznań
Wrocław
Katowice
Łódź
Kraków Rzeszów
Kielce
Lublin
Warszawa
Białystok
Gdynia-Sopot
Gliwice
Olsztyn
Opole
Zielona
Góra
Targeted number of stores
Current number of stores

42. 42
Saturating existing
markets - case

43. 43
Number of stores by provinces
Gdańsk
Szcecin
Bydgoszcz
Poznań
Wrocław
Katowice
Łódź
Kraków Rzeszów
Kielce
Lublin
Warszawa
Białystok
Gdynia-Sopot
Gliwice
Olsztyn
Opole
Zielona
Góra
Current number of stores

44. 44
Number of stores by provinces
Gdańsk
Szcecin
Bydgoszcz
Poznań
Wrocław
Katowice
Łódź
Kraków Rzeszów
Kielce
Lublin
Warszawa
Białystok
Gdynia-Sopot
Gliwice
Olsztyn
Opole
Zielona
Góra
Targeted number of stores
Current number of stores

45. 45
Where to expand – catchment area
The potential space to be added
In thousands of sq m
79
38 30
148
Total space occupied by Retailer shops Increase in cities where there are already
some Retailer shops
Increase s in cities where there are no
Retailer shops
Total targeted # of sq m
The potential number of shops that can be added
In # of shops
98
77
60
235
# of Retailer shops Shops that can be opened in cities where
there are already some Retailer shops
Shops that can be opened in cities where
there is no Retailer shop
Total targeted # of shops

46. 46
Expansion strategy into other
countries - Introduction

47. 47
Creating an expansion strategy requires you to do a number
of things
Define criteria and
weights for the
criteria
Gather data on the
markets
Create the ranking
of markets to enter
Define limits that
you have
Set priorities
▪ 4-6 criteria on the
basis of which you
will value specific
markets
▪ Ranking on the
basis of criteria and
weights created
▪ Money for
expansion
▪ People for
expansion
▪ Logistics
▪ Lead time due to
your supply chain
▪ Limitation in stock

48. 48
Expansion strategy into other
countries - Example

49. 49
Let’s imagine that you were to create an expansion plan for
expansion into new countries for a fashion brand

50. 50
As you remember we have create a ranking of countries
Define criteria and
weights for the
criteria
Gather data on the
markets
Create the ranking
of markets to enter
Define limits that
you have
Set priorities
▪ 4-6 criteria on the
basis of which you
will value specific
markets
▪ Ranking on the
basis of criteria and
weights created
▪ Money for
expansion
▪ People for
expansion
▪ Logistics
▪ Lead time due to
your supply chain
▪ Limitation in stock

51. 51
For this we will use 4 criteria and we will estimate the size of
the markets in standard stores
▪ GDP per capita PPP
▪ Similarity in product range
▪ Competition level
▪ Franchising infrastructure and the
Criteria for
measuring the
attractiveness of
the market
Potential of the
market
▪ Potential was measured using the size of the markets in terms of
potential number of standard stores

52. 52
Potential markets for expansion – Ranking vs Potential – region
2,2
2,3
2,5
2,6
2,7
2,7
2,9
3,0
3,3
3,3
3,4
3,4
3,5
3,6
3,9
4,3
Philipines
North America
Australia
Turkey
South America
Indonesia
China
Africa
ex USRR
Western Europe
India
Middle East
Malaysia
Thailand
Eastern Europe
Poland
Ranking of market attractiveness
(1-low; 6-High)
Potential of countries / regions to capture
assuming achieving share like in Poland
In standard stores
579
2 215
76
324
1 870
1 255
4 287
4 944
534
1 136
6 288
208
134
209
215
100
Philipines
North America
Australia
Turkey
South America
Indonesia
China
Africa
ex USRR
Western Europe
India
Middle East
Malaysia
Thailand
Eastern Europe
Poland

53. 53
Potential markets for franchise – Ranking vs Potential – region
0
500
1 000
1 500
2 000
2 500
0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 5,0
Poland
Middle East
Philippines
Eastern Europe
Russia + Asian
ex USRR
Thailand
Malaysia
Indonesia
Australia
North America
South America
Turkey
Western Europe
Potential
In number of standard stores
Attractiveness
(1-Low;6-High)

54. 54
Example of expansion into
other business models

55. 55
You have 12 different business models. You can start with one
model and then expand into other models
SaaS
E-commerce
Media site
2-sided market
User Generated
Content
Mobile Applications
B2B Service
Retail
B2C Service
B2C Products
B2B Products
Freelancing

56. 56
Developed companies can operate multiple models under
one or many companies. Have a look at Amazon
SaaS
E-commerce Media site2-sided market
UGC
B2B Service
B2C ServiceRetailer

57. 57
Multichannel

58. 58
What is multichannel?

59. 59
For the customer your off-line and on-line presence are the same brand
and he expect the on-line experience to be at least as good as off-line
On-line belonging to retail
chain
Off-line retail chain
One brand

60. 60
This means that certain things should be managed across
both channels
Products
Price
Customer Data
Relations with the customers
Customer Experience
Marketing communication

61. 61
Main problems with
multichannel

62. 62
Let’s have a look at the main problems with multichannel
Cannibalization with
off-line
Different customer
experience
Operational
problems coming
from on-line
Pricing Management
Competition with
pure players
Big data unified
approach
Segmentation
Marketing
communication
People and firms take
advantage of lower
on-line pricing
Falling traffic in off-
line

63. 63
Pricing dilemma - case study

64. 64
Imagine that you have a chain of physical stores and on-line store.
What pricing would you use
On-line belonging to retail
chain
Off-line retail chain
?$ 100 $ 90
On-line market

65. 65
How you would estimate the potential for growth?
Establish what is the
structure of the market?
▪ What is the current share of on-line in the market ?
▪ Is it growing?
Decide what you want to
have in terms of share of
on-line in your sales?
What price difference
between on-line and off-
line is acceptable
What price difference is
noticeable?
▪ What is the current share of on-line in your sales ?
▪ Do you want to be above or below the market?
▪ What price difference between on-line and off-line customer treat as fair?
▪ Do we want to be fair?
▪ What price difference is noticeable?
▪ Do we want to stay unnoticed?

66. 66
Imagine that you have a chain of physical stores and on-line store.
What pricing would you use
On-line belonging to retail
chain
Off-line retail chain
?$ 100 $ 90
On-line market
▪ The difference in prices is fair it is not
bigger than 6%
▪ The customer notices / cares if the
difference in prices is up to 3%

67. 67
Imagine that you have a chain of physical stores and on-line store.
What pricing would you use
$ 90 $ 100$ 93
Fair prices
$ 97
Practically the same prices Practically the same prices
Here you are not on-line competitive
$ 94

68. 68
Imagine that you have a chain of physical stores and on-line store.
What pricing would you use
$ 93
Do you want the
on-line to have
bigger share in
your sales than it
has in the whole
market?
Yes
No
Do you want the
difference
between on-line
and off-line to be
fair?
Do you want the
difference
between on-line
and off-line to be
fair?
Yes
No
Yes
No
$ 93<
> $ 94
$ 98
$ 100
$ 100
$ 93- $ 100 $ 100

69. 69
Cannibalization of sales -
Introduction

70. 70
When you start building more stores you are bound to cause a lot
of cannibalization

71. 71
You can minimize the cannibalization by picking the right locations.
Just remember that cannibalization may be there by design

72. 72
There are plenty of reasons why you could be still ok with
cannibalization
You are reaching new customers
You are taking away more from
competitors than your own chain
You are killing competition
More visibility = equivalent on
marketing money
Increased purchasing power
especially when it comes to rent

73. 73
Cannibalization of sales
by on-line

74. 74
On-line is a different story as it can cannibalize any store at your
chain and it is beyond your control. You actually more likely to hurt
yourself than your competition

75. 75
Still there are some reasons why as a multichannel you would
be ok with some level of cannibalization
Market is going on-line – if you don’t
have on-line customer they may
altogether leave you
Some customers will pick-up the things
at the store and buy additional products
You may start managing your stock
differently – i.e. long tail only on-line
You can improve the customer
experience without hiring a lot of people

76. 76
Cannibalization of sales - case
study

77. 77
Imagine that you have to estimate the impact of cannibalization of
off-line channel by on-line on margins.

78. 78
The Retailer has 400 shops in the whole Europe and sells 3
types of goods
Toys Fashion Hardware

79. 79
You have to check which effect is bigger
Margin loss due to
cannibalization
▪ For most products you will have
lower margins for the same
products in on-line sales than in
off-line
▪ Difference in margin will be
different for different groups
Margin gain from additional
purchases generated by on-line
▪ If the product is picked-up at the
off-line store you can sell
additional products to some of the
customers

80. 80
To estimate the cannibalization effect we will have to look at 2 things
Total on-line sales
Difference in
Margins
Margin Lost
Additional Margin
Gained
Net impact of on-line on
off-line P&L
-
Off-line margin On-line margin
Average additional
value bought
Number of transaction
picked at the off-line
store
-
% generated by
cannibalizing off-
line sales
x
% Gross Margin on
additional things bough
x

81. 81
Sales Analysis for Management
Consultants
$190
$10
For more check the link with discount below. You will find there a lot
of cases with calculations and Excel provided.
Click here to check my course

82. 82
FMCG - Examples of business
analyses of Sales and
Marketing

83. 83
Introduction to sales and
marketing in FMCG

84. 84
In this section consists of 3 parts
Overview of the sales and
marketing in FMCG
Main challenges in sales
and marketing
Cases of business analyses

85. 85
Overview of Sales in FMCG

86. 86
FMCG are all branded goods that you consume
frequently during the year. In this category we have food,
cosmetics and other similar products

87. 87
FMCG sells mainly through retailers. Some go into independent
distribution via own website and own stores

88. 88
Overview of Marketing in FMCG

89. 89
FMCG is pushing the customer through phases that make him at the end
loyal customer
Create brand
awareness
Teach people how to
use your products
Get the product in
front of the potential
customers
Convert the brand
aware people into
customers
Retain the customer
Up-sell and cross sell

90. 90
Therefore, marketing concentrates on 7 tasks
Make people aware of the
brand and product
Get the product in front of
him
Find and conquer niches
Expand the product
Expand the brand
Manage price, price
perception and discounts
Create mechanisms that will
sell / market on their own

91. 91
FMCG is probably the most advanced when it comes to marketing efforts
and uses practically every way to get its message across. Mainly uses paid
methods
Bought Media Owned Media Earned Media
▪ TV, radio, newspaper ads
▪ Paid digital reach: Adwords, Facebook, Pinterest,
Instagram, YouTube, paid digital banners etc.
▪ SEM
▪ Leaflets, inserts etc.
▪ Outdoor advertisement
▪ Affiliate programs
▪ Catalogues
▪ Advertisement at your partner’s media i.e.
Retailer
▪ Sponsored content
▪ Product placement
▪ Influencers (Youtubers, bloggers, celebrities)
▪ Motivation schemes for the sales force of your
Partner
▪ Brand Ambassadors
▪ Store-in-Stores (offline and online)
▪ Participation in wider loyalty program
▪ Your product and the package
▪ Your site - your factory, office, stores
▪ Your people
▪ Your web presence especially your website,
fanpages on Facebook and , YouTube channels
▪ Newsletters, sms and customer base
▪ Mobile apps and the underlying customer
(contact) base
▪ Own content and content marketing
▪ Referral Program
▪ Your own loyalty program
▪ Free users (in Freemium and Free trial)
▪ The products of your partners (powered by)
▪ Partners’ owned media when you do not have to
pay to get in touch with end-consumers
▪ Partner’s sales force and customer support
▪ Guest blogging, guest presence in YouTube
channels etc.
▪ Word Of Mouth especially Virality
▪ Presence in aggregators of reviews (i.e. Yelp)
▪ Evangelists and
▪ Organic SEO
▪ Social Following platforms i.e. Quora
▪ Co-branding (Intel inside)
▪ User Generated Content (post by fans,
recommendations, photos, reviews etc.)

92. 92
Main challenges in Sales and
Marketing in FMCG

93. 93
There are number of challenges in the Sales and Marketing of
FMCG
Picking the right
distribution mix
Managing price and
price perception
across channels
Customer trends i.e.
for Millennials,
Generation Z
Private labels done
by Retailers
Saturation point in
penetration
Saturation point in
consumption
Growing importance
of Marketplaces
Growing importance
of online
Digital Marketing
Leveraging brand and
expanding product
Loyalty programs
Dwindling
importance of direct
sales force

94. 94
Introduction to cases
for FMCG

95. 95
In this section I will show you examples of analyses that you will be
doing in sales and marketing in FMCG
Sales channel analysis How to expand the brand? Sales force efficiency
How to find the white
spaces uncovered by your
brand
Direct-to-customer model
vs current sales mix
How to analyze the
motivation system of sales
force

96. 96
Sales channels comparison

97. 97
Let’s look at how a FMCG gets its products to the customers
Own shops
Retail chains
E-commerce
Marketplaces
Wholesalers

98. 98
How to expand the
brand – Introduction?

99. 99
Let’s have a look at milk producer that wants to expand its product
range
Leader in milk
2nd place in butter
25 products considered

100. 100
There are things you should consider when selecting the right
products to be developed within the same brand
Is the product consistent with the
current brand?
Does it require the same
distribution?
Do you have strong players on
the market you enter?
What is the potential of the
market?
Are there customers who already
think that you have the product?
What is the growth rate of the
market for the product?

101. 101
How to expand the
brand – Solution

102. 102
After we have gone through research we got the following results.
This suggest that we should start with yoghurt and yellow cheese
0
50
100
150
200
250
300
350
0 0,5 1 1,5 2 2,5 3
Market size
In mln USD
Attractiveness
(1-Low;3-High)
Cheddar
Cottage cheese
Yoghurt
Milk Desserts
(i.e. Monte)
Yellow (swiss)
cheese
Ice cream
Feta

103. 103
Sales force efficiency analysis –
Introduction

104. 104
Let’s have a look at the sales force efficiency in Poland of a cosmetics
producers
20 sales rep in Poland
A sales rep visits all
customers in his region
You want to improve
efficiency

105. 105
Before we go to the Excel let’s talk about what we have to
know to judge the efficiency
What is the full cost per 1 sales
rep?
What value creates a specific
type of customer?
Is it worth to visit a customer?
How often should I visit specific
type of customers?
How I can improve efficiency of
the sales rep?
What can I standardize
automate?
What I can outsource to
cheaper provider?

106. 106
Sales force efficiency analysis –
Solution

107. 107
Let’s have a look at the sales force efficiency in Poland of a cosmetics
producers
20 sales rep in Poland
A sales rep visits all
customers in his region
You want to improve
efficiency

108. 108
20 195
30 124 31 210
Current Margin Maximazation without outsourcing and
reduction of headcount
Margin Maximazation with outsourcing and reduction of
headcount
When we look at the data we can see that there are regions where we
are really weak. In those regions there is a big potential for
improvement
Total net margin generated
In thousands of USD

109. 109
Sales force efficiency analysis –
Practical tips

110. 110
There are 3 groups of solutions that will help you improve the efficiency
of your sales team
Focus on what creates value
Improve efficiency of daily
work
Outsource / Specialize
▪ Calculate the net margin per type of customer
▪ Check the return on a visit and decide how often
it should be made
▪ Concentrate on those customer for which the
net margin per visit is the highest
▪ For other create more self-service solutions
▪ Rearrange the regions to minimize the travelling
▪ Implement remote solutions to reduce the need
to travel
▪ Create a standard of the visit to maximize the
impact
▪ Go through the tasks that should be performed
during the visit and check whether they make
sense and create value
▪ Create standards and modules
▪ Create software to automate part of the process
▪ Plan the trips to maximize the usage of their time
▪ Standardize fleet, phone, software and others
▪ Pick the optimal legal solution of cooperating
with sales rep to optimize the cost of labor
▪ Outsource what you can to local suppliers i.e.
merchandising
▪ Create support teams for the sales rep that can
do part of his job in a cheaper manner and
higher quality at the same time

111. 111
How to find the white spaces untouched
by your brand – Introduction

112. 112
Let’s have a cosmetics producer and see where is the potential for
development
You are a market leader
in Poland
You have entered 5
years ago Romania
You want to find white
spaces in Poland

113. 113
How to find the white spaces untouched
by your brand – Solution

114. 114
Let’s have a cosmetics producer and see where is the potential for
development
You are a market leader
in Poland
You have entered 5
years ago Romania
You want to find white
spaces in Poland

115. 115
0,2 0,4
0,9
1,3 1,4
2,0
3,2
7,0
6,6
4,8
1,2 1,0 0,8
2,1
2,5
1,0
R1 R2 R3 R4 R5 R6 R7 R8 R9 R10 R11 R12 R13 R14 R15 R16
When we look at the data we can see that there are regions where we
are really weak. In those regions there is a big potential for
improvement Average and target for
regions with smaller
sales per capita
Sales per person - Currently
In USD per Capita

116. 116
11 172
8 401
4 908
3 174
2 608
1 892
1 861
1 776
1 266
674
205
0 0 0 0 0
37 937
R1 R2 R3 R4 R5 R11 R13 R12 R16 R6 R14 R7 R8 R9 R10 R15 Total
Using the data in Excel we can estimate the potential increase in sales
by regions
Potential of increasing sales
In thousands of USD

117. 117
1% 3%
6%
10% 10%
17%
27%
58%
55%
40%
12%
21%
8%
30%
25%
10%
R1 R2 R3 R4 R5 R6 R7 R8 R9 R10 R11 R12 R13 R14 R15 R16
When we look at the data we can see that there are regions where we
are really weak. In those regions there is a big potential
Average and target for
regions with smaller
share
Share in local market - Currently
In %

118. 118
14 544
11 283
7 099
5 301
4 439
1 609 1 550 1 211 1 067 0 0 0 0 0 0 0
48 104
R1 R2 R3 R4 R5 R13 R11 R6 R16 R7 R8 R9 R10 R12 R14 R15 Total
Using the data in Excel we can estimate the potential increase in sales
by regions
Potential of increasing sales
In thousands of USD

119. 119
Direct-to-customer model vs
current sales mix – Introduction

120. 120
We are back to cosmetics. This time around we will analyze options to
get direct-to-customer
Currently they use many
channels
They are considering
direct-to-customer
models
Check e-commerce and
own stores

121. 121
Direct-to-customer model vs
current sales mix – Current
Solution

122. 122
How to analyze the motivation system
of sales force – Introduction

123. 123
Motivation plan for sales people can be pretty complicated
Region sales plan
realization
80%
Country plan
realization
20%
Sales plan
realization
80%
Qualitative
assessment
20%
Variable part 40%Fixed part 60%
Salary

124. 124
Person A has the following motivation system. What kind of problems
it may cause?
Variable part 10%Fixed part 90%
Salary

125. 125
Person B has the following motivation system. What kind of problems
it may cause?
Sales value plan
realization
90%
Qualitative
assessment
10%
Variable part 20%Fixed part 80%
Salary
▪ Sales rep can change the price
of the product and give
discounts

126. 126
Person C has the following motivation system. What kind of problems
it may cause?
Sales margin
realization
80%
Qualitative
assessment
20%
Variable part 20%Fixed part 80%
Salary
▪ All costs covered by the sales
rep

127. 127
Person D has the following motivation system. What kind of problems
it may cause?
% of sales n/a
Fixed part =2x
Average salary
n/a
Salary

128. 128
How to analyze the motivation system
of sales force – Solution

129. 129
If the Person A has the following motivation system you can have the
following problems
Variable part 10%Fixed part 90%
Salary Problems that may occur
▪ Variable part is too small
▪ The sales rep will not be motivated to drive
the sales and put additional effort

130. 130
If the Person B has the following motivation system you can have the
following problems
Sales value plan
realization
90%
Qualitative
assessment
10%
Variable part 20%Fixed part 80%
Salary
▪ Sales rep can change the price
of the product and give
discounts
Problems that may occur
▪ Majority of the variable part depends on
sales value which is not preferable solution
as this does not drive the margin creation
▪ The sales rep has a control over the price
and discounts so he will be tempted to
increase discounts to get more sales. In this
way he will hurt total margin

131. 131
If the Person C has the following motivation system you can have the
following problems
Sales margin
realization
80%
Qualitative
assessment
20%
Variable part 20%Fixed part 80%
Salary
▪ All costs covered by the sales
rep
Problems that may occur
▪ In this example we have margins instead of sales
value which is much better solution
▪ However, all cost are covered by the sales rep
which may lead the sale rep to minimize his
expenditure rather than to maximize the margin
for the company

132. 132
Person D has the following motivation system. What kind of problems
it may cause?
% of sales n/a
Fixed part =2x
Average salary
n/a
Salary Problems that may occur
▪ The fixed part may be big enough for the sales
rep not to care too much about the sales level
▪ His variable part is just a percentage of sales .
Due to this there is a great probability that he
will not care about the margin
▪ Moreover, there is no plan of sales / margin so
he will work only as much as he needs to cover
his expenses

133. 133
Juice producer – motivation system of
sales force – Introduction

134. 134
We will now have a look at a company selling branded juice in
Romania that has 2 type of sales force
They sell via wholesalers to
independent stores and
retail chains
Area Managers sell to
wholesalers
Sales reps sell to stores and
retail chains

135. 135
We will now have a look at a company selling branded juice in
Romania that has 2 type of sales force

136. 136
The area managers have the following motivation system
Sales value plan
realization -
wholesale
70%
Qualitative
assessment
10%
Variable part 40%Fixed part 60%
Salary
▪ You have to have at least 80%
of plan realization to get any
bonus
Sales value plan
realization - stores
20%

137. 137
The area managers has the following motivation system
Sales value plan
realization - stores
90%
Qualitative
assessment
10%
Variable part 30%Fixed part 70%
Salary
▪ You have to have at least 80%
of plan realization to get any
bonus

138. 138
Juice producer – motivation system of
sales force – Solution

139. 139
Sales Analysis for Management
Consultants
$190
$10
For more check the link with discount below. You will find there a lot
of cases with calculations and Excel provided.
Click here to check my course

140. 140
B2B Services - Examples of
business analyses of Sales and
Marketing

141. 141
Introduction to sales and
marketing in B2B Services

142. 142
In this section consists of 3 parts
Overview of the sales and
marketing in B2B Services
Main challenges in sales
and marketing
Cases of business analyses

143. 143
Overview of Sales in B2B
Services

144. 144
B2B services are all services sold from one company to
another. It can be simple standardized services or
customized professional service

145. 145
B2B Service firms use mainly its own sales force team. However, more
and more options are available

146. 146
Overview of Marketing in B2B
Services

147. 147
B2B service firms are pushing the customer through phases that make
him at the end loyal customer that buys full portfolio
Create brand
awareness
Get your content in
front of the customer
Explain what you can
do for the customer
Get your sales
machine in front of
the customer
Sell first service to the
customer
Up-sell and cross sell Retain the customer

148. 148
In B2B Services the Marketing is only supporting sales when it comes to
bigger customers. With smaller ones it is very similar to SMCG or FMCG
Bought Media Owned MediaEarned Media
▪ Events, Trainings, Conferences marketing
▪ Motivation schemes for the sales force of your
Partner
▪ TV, radio, newspaper ads
▪ Paid digital reach: Adwords, Facebook, Linkedin,
YouTube, paid digital banners etc.
▪ Affiliate programs
▪ SEM
▪ Leaflets, inserts etc.
▪ Outdoor advertisement
▪ Catalogues
▪ Sponsored content
▪ Product placement
▪ Your people and their network
▪ Previous customers
▪ Training Marketing
▪ Webinars
▪ Gadgets
▪ Your web presence especially your website,
fanpages on Facebook and , YouTube channels
▪ Newsletters, SMS to own customer base
▪ Own content and content marketing
▪ Referral Program
▪ Free users (in Freemium and Free trial)
▪ Word Of Mouth
▪ The products of your partners (powered by)
▪ Partners’ owned media when you do not have to
pay to get in touch with end-consumers
▪ Partner’s sales force and customer support
▪ Guest blogging, guest presence
▪ Presence in aggregators of reviews and
marketplace (i.e. Yelp, Fiverr)
▪ Social media i.e. Linkedin
▪ Organic SEO
▪ Social Following platforms i.e. Quora,
▪ Co-branding (Intel inside)
▪ User Generated Content (post by fans,
recommendations, photos, reviews etc.)

149. 149
Main challenges in sales and
marketing in B2B Services

150. 150
There are number of challenges in the Sales and Marketing in
B2B services
Retaining the
customer
Locking-in the
customer for longer
Bundling services to
create new value
proposition
Taking over processes
from customers
Scalable sales
methods
Growing importance
of Marketplaces
Adjusting acquisition
method to the LTV of
the customer
Up-selling and cross-
selling
Valley of death

151. 151
Introduction to cases
for B2B Services

152. 152
In this section I will show you examples of analyses that you will be
doing in sales and marketing in B2B Services
How you can price
consulting projects?
Calculating the price and
profitability of a consulting
project
Analyzing the profitability
of sales channel
Up-selling and cross-selling
Which customer should the
firm remove?
Which price formula is the
best for the firm’s profits?

153. 153
How you can price consulting
projects?

154. 154
The most useful pricing models are….
Fixed fee
▪ Difficult to define scope
▪ Non-standard project
▪ Scope evolving
Times & Materials
▪ Simple projects
▪ Projects with big buffers
▪ Projects where you want to hide the fees
Success / performance
fee
▪ When performance can be measured by external KPIs
▪ To supplement previous methods
Limits
▪ To limit certain spending's esp. in the case of time and
materials limits (floors an caps are used)
Per usage
▪ This is used in many technical industries where you
cannot control the immediate result of the consulting
so link it with the usage / availability of certain
resource
DescriptionExample
▪ $ 100 K
Markups
▪ Markups can be a part of fixed fee structure and times
and materials
▪ Markup is put on purchases done by consulting
company for the project
▪ $ 200/h
▪ Traveling costs
▪ Food costs
▪ % of Target achieved
▪ $ 100 K for achieving
certain goal
▪ $ 200/h but no more
than $ 100 K
▪ $ 10/flight hour
▪ $ 20 K/plane
▪ 15% on costs incurred

155. 155
Analyzing the profitability of sales
/ marketing methods
Introduction

156. 156
In order to see whether certain marketing channel / tactics
makes sense you have to look at 2 KPIs
LTV CAC
▪ All costs generated by a specific
method of sales / marketing
▪ Number of customers that you
acquired thanks to this
▪ Net margin generated from specific
customer over the course of your
relation

157. 157
You should have defined what is the relation between LTV
and CAC that you are looking for
LTV CAC
LTV CAC= 3x
LTV CAC= 5x
LTV CAC= 7x

158. 158
Efficiency of
marketing activities

159. 159
Every business is using a lot of marketing channels to get
customers

160. 160
In order to see whether certain marketing channel / tactics
makes sense you have to look at 2 KPIs
LTV CAC

161. 161
Cross-selling – Introduction

162. 162
In B2B Services since you have already a nice base you try to sell
them more of your products. The best example are big 4 auditing
companies
Auditing
Tax and Legal advisory
Business advisory
Transactional advisory
Digital Transformation
Technological Advisory
100%
50%
30%
40%
10%
10%

163. 163
Cross-selling makes sense only under certain conditions
Wide customer base
You own the customer
You have other products to
sell
New products require the
same sales machine
Similar margins
New products cannot
endanger current revenues
New products have to be
consistent with your brand

164. 164
We will now have a look at company doing aircraft maintenance
services
2 sites – in Poland and
Croatia
They have 20 customers
using heavy maintenance
They consider cross-selling
painting and engineering
services

165. 165
Cross-selling – Solution

166. 166
If we look at our customer base we can earn additional USD 225 K from
painting only from our customer base
Number of aircrafts
40
25
20
15
10 10 10 10
5 5
JetBlue LOT Flybe Alitalia Lufthansa KLM Air France Bulgaria Air Air Astana Keyn Airways
60
38
30
23
15 15 15 15
8 8
JetBlue LOT Flybe Alitalia Lufthansa KLM Air France Bulgaria Air Air Astana Keyn Airways
Margin on painting
In thousands of USD

167. 167
Which customer should you
remove – Introduction

168. 168
Before we go to the case a few words why it makes sense to
get do away with some customers
Focus on profitable customers
Get rid off problematic
customers
Get rid off dedicated
solutions
Create space for new
customers
Prepare for recession
Scale down the business

169. 169
Let’s imagine that you are advising a firm providing analytical services
to other companies
200 customers in 6
countries
500 business analysts and
data scientists
Find out which customer
you have to remove

170. 170
Which customer should you
remove – Solution

171. 171
As a reminder you are advising a firm providing analytical services to
other companies
200 customers in 6
countries
500 business analysts and
data scientists
Find out which customer
you have to remove

172. 172
When you look at the data you can see that some customer
have much lower margin
Monthly hours sold
In thousands of hours
20
10 5 3
10
20
5 1 2 4
Group 1 Group 2 Group 3 Group 4 Group 5 Group 6 Group 7 Group 8 Group 9 Group 10
10 10 15 20
5 10 5 10 10 10
Group 1 Group 2 Group 3 Group 4 Group 5 Group 6 Group 7 Group 8 Group 9 Group 10
Average margin per hour
In USD per hour
25% 33%
50% 50%
13%
50% 50%
25% 29% 25%
Group 1 Group 2 Group 3 Group 4 Group 5 Group 6 Group 7 Group 8 Group 9 Group 10
% Margin
In %

173. 173
780
54
834
Current Margin Customer portfolio optimization Target Margin
If we remove the Group 5 and replace them with customers that generate
higher margins we can boost our margin by USD 54 K
Potential of increasing monthly margin
In thousands of USD

174. 174
Which customer should you
remove – Practical Tips

175. 175
There are many ways to “remove the customer”
Significantly increase the
price (i.e. 2x)
Create automated solution
for the customer
Optimize the costs of delivery
to improve profitability
Sell part of the business
Carve out the customers into
separate business units
Breach the contract
Find new supplier for the
customer

176. 176
Which price formula is the best
for my profits – Introduction

177. 177
Now we will try to see which price formula is better for aircraft
maintenance service company
2 sites – in Poland and
Croatia
Consider 4 different
formulas
Consider 3 different
scenarios

178. 178
Now we will try to see which price formula is better for aircraft
maintenance service company
Materials
Scenario 1
▪ $ 30 K
Number of
manhours needed
▪ 3 000 man-hours
Probability of the
scenario
▪ 30%
Scenario 2
▪ $ 20 K
▪ 3 400 man-hours
▪ 25%
Scenario 3
▪ $ 15 K
▪ 3 800 man-hours
▪ 45%

179. 179
Now we will try to see which price formula is better for aircraft
maintenance service company
Materials
Times & Materials
▪ Cost of Materials
increased by 15%
markup
Labor
▪ $ 50 per 1 man-
hour
▪ We look at the real
man-hours needed
Fixed Fee
▪ $ 25 K
▪ $ 140 K
Mixed Option 1
▪ $ 25 K
▪ Fixed: $ 140 K
▪ On top of that 15%
of the labor cost
calculated using
Times & Materials
formula
Mixed Option 2
▪ $ 25 K
▪ Fixed: $ 140 K
▪ On top of that for
all man-hours
above 2 800 we
use the Time &
Materials formula
but using the price
of $ 90 per 1 man-
hour

180. 180
Which price formula is the best
for my profits – Solution

181. 181
Now we will try to see which price formula is better for aircraft
maintenance service company
2 sites – in Poland and
Croatia
Consider 4 different
formulas
Consider 3 different
scenarios

182. 182
It seems that the Mixed Option 2 price formula is the best
solution
Gross Margin
In thousands of USD
90
58
84
117
Times & Materials Fixed Fee Mixed Option 1 Mixed Option 2

183. 183
For how much should I sell
my consultants?

184. 184
Sales Analysis for Management
Consultants
$190
$10
For more check the link with discount below. You will find there a lot
of cases with calculations and Excel provided.
Click here to check my course

185. 185
B2C Services - Examples of
business analyses of Sales and
Marketing

186. 186
Introduction to sales and
marketing in B2C Services

187. 187
In this section consists of 3 parts
Overview of the sales and
marketing for B2C Services
Main challenges in sales
and marketing for B2C
Services
Cases of Business Analyses

188. 188
Overview of Sales in B2C
Services

189. 189
In terms of sales and marketing B2C services are similar
to Retail.

190. 190
B2C sales model is similar to the one that we can observe in Retail.
Online, take away and home delivery are even more important

191. 191
Main challenges in Sales and
Marketing in B2C Services

192. 192
When it comes to sales and marketing we can be talking about 3
different models
Services performed at specialized
place
Scalable productized services
Services performed at customer
place that require a person

193. 193
We will start with the challenges for the first model
Services performed at specialized
place
Scalable productized services
Services performed at customer
place that require a person

194. 194
In services performed at specialized places we have the
following main challenges
Location Brand Awareness
Finding a good fit
between target group
and value proposition
Actively growing traffic
Growing and using
customer database
incl. Big Data
Customer retention
Expansion model
Improving conversion
and ATV
Actively creating
demand
Up-selling and cross-
selling
Changing value
proposition
Changing formats and
concepts

195. 195
Let’s move to the second model
Services performed at specialized
place
Scalable productized services
Services performed at customer
place that require a person

196. 196
In services performed at customer place that require a person
we have the following main challenges
Brand Awareness Word of Mouth
Servicemen efficiency
that limits capacity of
sales
Increasing importance
of marketplaces and
aggregators
Content marketingPricing
Keeping high NPS
Up-selling and cross-
selling

197. 197
Let’s have a look at the last example
Services performed at specialized
place
Scalable productized services
Services performed at customer
place that require a person

198. 198
In scalable productized services we have the following main
challenges
Saturation point in
consumption
Saturation point in
penetration
Customer retention
Cross selling and up-
selling
Big data
Private Labels / Own
products
Adding to the offer
potential subtitutes
Customer trends i.e.
for Millennials,
Generation Z
Acquisition of new
customers
Bundling products
with Strategic
partners
Expanding into new
groups / user cases

199. 199
Introduction to cases
for B2C Services

200. 200
In this section I will show you examples of analyses that you will be
doing in sales and marketing in B2C Services
What is the optimal price
increase level – coffee shop
Does it make sense to
introduce new services or
product – salad fast food
How to increase the net
profit by 10% – beauty
saloon

201. 201
What will be the effect of the
price increase – Introduction

202. 202
The impact of the price change on your profit will depend on
a few factors
How big the increase is
What your competition
does?
How aware of prices are the
customers?
Price sensitivity
The role of the product you
are increasing the price
Components of the average
basket

203. 203
Imagine that you want to estimate the price change impact for a small
chain of local coffee shops
20 location in Poland
Sell coffee, cakes,
sandwiches and quiches
3 different motives for
going there

204. 204
What will be the effect of the
price increase – Solution

205. 205
Imagine that you want to estimate the price change impact for a small
chain of local coffee shops
20 location in Poland
Sell coffee, cakes,
sandwiches and quiches
3 different motives for
going there

206. 206
If we look just at coffee gross margin we should increase the price of
coffee by 9%. If we take into account total gross margin 4% would be a
better choice
0
2 000
4 000
6 000
8 000
10 000
0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 26% 27% 28% 29% 30%
0
5 000
10 000
15 000
20 000
0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 26% 27% 28% 29% 30%
Gross Margin – Only for Coffee vs price increase
In thousands of USD
Gross Margin – Coffee and Cakes vs price increase
In thousands of USD

207. 207
Does it make sense to introduce new
services or products – Introduction

208. 208
You have to remember that when you introduce a new product or
service it may have benefits but it can also cause problems
It can create new reasons to
visit the place
It can increase frequency
New product can attract new
customers
New product can disturb the
delivery of basic product
It can require additional assets
or training
It can repel current customer
base from coming
It can increase margins
May be not compatible with
your concept

209. 209
Imagine that you are analyzing a salad fast food that has just introduced 2
new products and you want to check whether it makes sense
100 location in Easter
Europe
Fast food for salads
They have just introduced
coffee and soups to the
menu

210. 210
Does it make sense to introduce new
services or products – Solution

211. 211
Imagine that you are analyzing a salad fast food that has just introduced 2
new products and you want to check whether it makes sense
100 location in Easter
Europe
Fast food for salads
They have just introduced
coffee and soups to the
menu

212. 212
100
15
115
Gross Margin before the soup introduction The effect of soup introduction Gross margin after we introduce soups
Introduction of soups makes economical sense. When it comes to coffee it
causes a lot of operational problems and lower gross margin
Gross Margin change due to soup introduction
In thousands of USD
100
20 12
92
Gross Margin before the coffee
introduction
Drop in Gross Margin of salads Increase in Gross Margin from Coffee Gross margin after we introduce coffees
Gross Margin change due to coffee introduction
In thousands of USD

213. 213
How to increase the net profit
by 10% – Introduction

214. 214
Imagine that you supporting a beauty saloon chain in Easter Europe in
their attempt to increase net profit
50 location in Easter
Europe
They mainly do manicure
They are looking for ways
to increase profit by 10%

215. 215
There are number of ways in which you can increase the profit by
10%
Get new customers
Convince existing ones to come
more often
Upsell and cross-sell customers
during their visit
Introduce new product
Increase prices

216. 216
How to increase the net profit
by 10% – Solution

217. 217
Imagine that you supporting a beauty saloon chain in Easter Europe in
their attempt to increase net profit
50 location in Easter
Europe
They mainly do manicure
They are looking for ways
to increase profit by 10%

218. 218
Option 1 –
Increase price
Description
Required change to increase net margin
by 10%
Commodity is a basic good used in commerce that is interchangeable with
other commodities of the same type
▪ We increase the price for manicure for all customers
▪ Current price is 25 USD per visit
▪ 5% increase of the price
Option 2 –
Increase
Frequency
▪ We increase the frequency of visiting our beauty shop
▪ Currently, an average customer does 1.4 visit per
customer
▪ Increase from 1.4 to 1.6 visit per
customer
Option 3 –
Increase
Customer Base
▪ We increase customer bases size – acquire new customers
▪ Currently, we have 60 K of customers per shop
▪ Increase customer base from 60 K
to 68 K
Option 4 – New
product
▪ We introduce new product
▪ Currently we do not sell any additional product
▪ We need 36% of our customer to
buy the new product

219. 219
Sales Analysis for Management
Consultants
$190
$10
For more check the link with discount below. You will find there a lot
of cases with calculations and Excel provided.
Click here to check my course

220. 220
Commodity - Examples of
business analyses of Supply Chain

221. 221
Introduction to Commodity
section

222. 222
In this section you will learn 3 things
Overview of the sales and
marketing in Commodity
Main challenges in sales
and marketing in
Commodity business model
Cases of Business Analyses

223. 223
Overview of Sales in Commodity

224. 224
In commodity quit often is about finding the right mix of
products to be sold rather than acquiring new customers

225. 225
Commodity sells to bigger customer directly and using wholesaler or
marketplaces to smaller customers

226. 226
Overview of Marketing in
Commodity

227. 227
Marketing of commodity due to margins is usually very
limited. Yet there is alternative approach to it as well
Limit marketing expenses
Build on the basis of commodity
service and market it

228. 228
FMCG is probably the most advanced when it comes to marketing efforts
and uses practically every way to get its message across. Mainly uses paid
methods
Bought Media Owned Media Earned Media
▪ TV, radio, newspaper ads
▪ Paid digital reach: Adwords, Facebook, Pinterest,
Instagram, YouTube, paid digital banners etc.
▪ SEM
▪ Leaflets, inserts etc.
▪ Outdoor advertisement
▪ Affiliate programs
▪ Catalogues
▪ Advertisement at your partner’s media i.e.
Retailer
▪ Sponsored content
▪ Product placement
▪ Influencers (Youtubers, bloggers, celebrities)
▪ Motivation schemes for the sales force of your
Partner
▪ Brand Ambassadors
▪ Store-in-Stores (offline and online)
▪ Participation in wider loyalty program
▪ Your product and the package
▪ Your site - your factory, office, stores
▪ Your people
▪ Your web presence especially your website,
fanpages on Facebook and , YouTube channels
▪ Newsletters, sms and customer base
▪ Mobile apps and the underlying customer
(contact) base
▪ Own content and content marketing
▪ Referral Program
▪ Your own loyalty program
▪ Free users (in Freemium and Free trial)
▪ The products of your partners (powered by)
▪ Partners’ owned media when you do not have to
pay to get in touch with end-consumers
▪ Partner’s sales force and customer support
▪ Guest blogging, guest presence in YouTube
channels etc.
▪ Word Of Mouth especially Virality
▪ Presence in aggregators of reviews (i.e. Yelp)
▪ Evangelists and
▪ Organic SEO
▪ Social Following platforms i.e. Quora
▪ Co-branding (Intel inside)
▪ User Generated Content (post by fans,
recommendations, photos, reviews etc.)

229. 229
Introduction to cases
for commodity

230. 230
In this section I will show you examples of analyses that you will be
doing in commodity for supply chain
Managing capacity Customer catchment area Supplier catchment area
Plywood – finding the best
spot for your factory

231. 231
Supplier catchment
area

232. 232
Locations of some factories depends on the so called supplier catchment
area. You are looking for area where you have sufficient amount of
resources or suppliers
K K
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233. 233
Below some examples of businesses where the supplier
catchment area is crucial
Energy production
Production based on big usage of
specific mineral
Production based on natural
resources
Production based on specific
subcontractors
▪ Coal, oil, wind
▪ Salt, ceramic tiles
▪ Wood, paper, plywood, slaughter houses, food
processing
▪ Small domestic appliances, Silicon Valley

234. 234
Customer catchment
area

235. 235
The customer catchment area is important in picking the right location for the
factory. Both B2B as well as B2C

236. 236
If you want to standardize the work I recommend the following approach
Define on what
depends your
catchment area
Gather data
Draw catchment
area – how big it is?
See which customers
are within the
catchment area
Estimate the
demand and make
the decision

237. 237
0.02-0.04
0.00-0.02
0.04-0.06
0.06-0.09
> 0.9
Cost of transportation
EUR/lWhere to expand – catchment area

238. 238
SC Johnson
Oriflame
Colgate
Henkel
Unilever
Reckitt Benckiser PLC
Estee Lauder Companies
Gillette
Procter & Gamble
Avon
Beiersdorf
L'Oreal
K
K
K
K K
K K
K
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K K
K
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KK
K
Cosmetics producers
Others
K
Customers within the catchment area

239. 239
Catchment area / reach
analysis - B2B

240. 240
Finding the best spot for your
factory – Introduction

241. 241
Let’s have a look at plywood producer that has 2 factories and is
considering where to build the third one
2 plants
3 potential locations for
the 3rd plant
CC Wikimedia.org

242. 242
There are things you should consider when choosing the
location for you factory
Sufficient amount of raw materials /
suppliers in the catchment area
Sufficient number of customers in the
catchment area
Cost of transportation of raw materials to
the factory
Cost of transportation of finished goods to
customers
Local labor market – sufficient amount of
workers and wages
Cost of electricity
Support from local government

243. 243
Finding the best spot for your
factory – Excel

244. 244
SMCG - Examples of business
analyses of Supply Chain

245. 245
Introduction to SMCG section

246. 246
In this section you will learn 3 things
Overview of the SMCG
supply Chain
Main Challenges in Supply
Chain in SMCG
Cases of Business Analyses

247. 247
Overview of Supply Chain in
SMCG

248. 248
SMCG are all branded goods that you consume
infrequently during your life. In this category we have
cars, domestic appliances and other similar products

249. 249
SMCG supply chain is extremely complicated on the supplier side

250. 250
Main challenges in Supply Chain
in SMCG

251. 251
SMCG supply chains have to face many challanges
Many suppliers and
sub-contractors
Short lead times
Focus on minimizing
Inventory
Flow of information
between partners
Multichannel
Lean manufacturing
principles applied to
Supply Chain
Automation
Modularization and
Standardization
Customization
Non-standard
transportation
modes
Supply Chain of
added services and
products

252. 252
Introduction to cases
for SMCG

253. 253
In this section I will show you examples of analyses that you will be
doing in SMCG for supply chain
Transportation mode vs
value density
Car Industry – Planning the
flow of finished goods
Kanban
Continuous flow in
production

254. 254
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