APPENDIX
APPENDIX A: SUMMARY RESPONDENTS AND INTERVIEWED COMPANIES APPENDIX B: GRAPHS
APPENDIX C: QUESTIONNIARE
APPENDIX A: SUMMARY RESPONDENTS AND INTERVIEWED COMPANIES
Company Profiles Company Profiles
1.
1.
Coca Cola Coca Cola
2.2. GHY Paper GHY Paper 3.
3.
Wahaha Wahaha 4.
4.
Nutricia Nutricia 5.
5.
Sc. Johnson Sc. Johnson 6.
6.
Danone Danone biscuits biscuits 7.
7.
Organon Organon 8.
8.
P&G P&G
9.9. Heineken Heineken 10.
10.
Electrolux Electrolux
11.11. Pacific Dairy Pacific Dairy 12.
12.
Pepsico. Pepsico .
13.13. Unilever Unilever 14.
14.
Nestle Nestle
15.15. Tyson Tyson 16.
16.
Henkel Henkel 17.
17.
Reckit Reckit Benckiezer Benckiezer
18.18. Sara Lee Sara Lee
Category
Category : Beer : Beer City coverage
City coverage : 40- : 40 -80 cities 80 cities Coverage in 5 years
Coverage in 5 years : 30- : 30 -50 cities 50 cities Merchandisers
Merchandisers : 500- : 500 -1000 1000 Promoters
Promoters : 500- : 500 -1000 1000 Salesreps
Salesreps : 300- : 300 -500 500 Outsourcing
Outsourcing : PG’ : PG ’s. Are trained Heineken s. Are trained Heineken but managed by a third party but managed by a third party Vendor selection
Vendor selection : Commitment to quality : Commitment to quality Observations:
Observations: : Afraid to loose control : Afraid to loose control Opportunities
Opportunities : Merchandising & Promotions in the top : Merchandising & Promotions in the top 30 cities
30 cities
Sara Lee Sara Lee
¾
¾
Category Category : Household & shoe care : Household & shoe care
¾¾
City coverage City coverage : 3 cities direct : 3 cities direct
¾¾
Coverage in 5 years Coverage in 5 years : 8 cities direct : 8 cities direct
¾
¾
Merchandisers Merchandisers : 90 are traveling. 7/8 stores a day. : 90 are traveling. 7/8 stores a day.
¾
¾
Promoters Promoters : 120 : 120
¾¾
Salesreps Salesreps : 60 : 60
¾¾
Outsourcing Outsourcing : : Promotions but not in store while SL Promotions but not in store while SL considers this as to important
considers this as to important
¾¾
Vendor selection : Vendor selection : Commitment to quality
Commitment to quality¾
¾
:
:
Very high potential client for in Very high potential client for in- -store store merchandiser and POP monitor.
merchandiser and POP monitor.
¾¾
2 factories- 2 factories -80 distributors 80 distributors- -80 cities 80 cities
¾¾
SL is selling direct to 200 Wholesalers SL is selling direct to 200 Wholesalers
¾
¾
Auto shops are their most important channel for air freshener Ambi Auto shops are their most important channel for air freshener Ambi- - Pur Pur (85% of turnover)
(85% of turnover)
Nestle Nestle
¾¾
Category Category : Food : Food
¾
¾
City coverage City coverage : >250 : >250
¾
¾
Coverage in 5 years Coverage in 5 years : >250 : >250
¾
¾
Merchandisers Merchandisers : N/A : N/A
¾¾
Promoters Promoters : N/A : N/A
¾¾
Salesreps Salesreps : N/A : N/A
¾
¾
Outsourcing Outsourcing : Sampling : Sampling
¾
¾
Route to Market Route to Market : Key Accounts Modern Trade directly, rest via : Key Accounts Modern Trade directly, rest via wholesaler
wholesaler
¾¾
Vendor selection Vendor selection : Commitment to quality+ performance guarantees : Commitment to quality+ performance guarantees
¾¾
Comment Comment : Measurement is key while they are convinced that : Measurement is key while they are convinced that there
there’ ’s no 3 s no 3
rdrdparty that can do a better job than party that can do a better job than they can. Merchandiser=promoter.
they can. Merchandiser=promoter.
¾
¾
Opportunities Opportunities : Auditing and POP monitor : Auditing and POP monitor
Unilever
Unilever HPC HPC
¾¾
Category Category : Household & Personal care : Household & Personal care
¾
¾
City coverage City coverage : 300 cities : 300 cities
¾
¾
Coverage in 5 years Coverage in 5 years : 600 cities : 600 cities
¾
¾
Merchandisers Merchandisers : 1000 : 1000
¾¾
Promoters Promoters : 2000 : 2000
¾
¾
Salesreps Salesreps : N/A : N/A
¾
¾
Outsourcing Outsourcing : Nothing : Nothing
¾
¾
Distribution Distribution : 1 : 1
ststtier cities Modern Trade tier cities Modern Trade direct, other via wholesalers direct, other via wholesalers
¾¾
Vendor selection Vendor selection : Commitment to quality, : Commitment to quality, performance guarantees performance guarantees
¾
¾
Comment Comment : merchandiser=promoter : merchandiser=promoter
¾
¾
Opportunities Opportunities : Auditing and POP monitor. : Auditing and POP monitor.
Merchandising and promotions in 2nd Merchandising and promotions in 2nd tier cities that are not covered by nestle tier cities that are not covered by nestle directly
directly
¾
¾
Category Category : Snack food : Snack food
¾
¾
City coverage City coverage : 85 cities : 85 cities
¾¾
Coverage in 5 years Coverage in 5 years : 600 cities : 600 cities
¾
¾
Merchandisers Merchandisers : 1200 managed who maintain modern trade, rest is : 1200 managed who maintain modern trade, rest is done via wholesalers
done via wholesalers
¾¾
Promotions Promotions : outsourced while not needed full time. : outsourced while not needed full time.
¾
¾
Vendor selection Vendor selection : Cost and control : Cost and control
¾¾
Distribution Distribution : Direct to Hypermarkets and customer distribution : Direct to Hypermarkets and customer distribution Channels
Channels
¾¾
Comment Comment : Frito : Frito- -Lay claims to be the fastest growing Lay claims to be the fastest growing consumer good company in China.
consumer good company in China.
Project where area managers become responsible Project where area managers become responsible for outsourcing within their area, test case.
for outsourcing within their area, test case.
¾
¾
Opportunities: Opportunities: : Pop Monitor, Auditing and Promotions, mystery : Pop Monitor, Auditing and Promotions, mystery shopping to test the current vendor for promotions.
shopping to test the current vendor for promotions.
merchandising and promotions in 2
merchandising and promotions in 2
ndndtier cities. tier cities.
Organization field team:
Organization field team:
Field force: Regional Manager Field force: Regional Manager (Shanghai: 1 regional Manager) (Shanghai: 1 regional Manager)
Area Manager (Shanghai: 5 area managers) Area Manager (Shanghai: 5 area managers) Sales Officers
Sales Officers
Merchandisers and Customer reps
Merchandisers and Customer reps
¾ ¾ Category Category : Frozen Snack food : Frozen Snack food
¾
¾ City coverage City coverage : 1 (Shanghai) : 1 (Shanghai)
¾
¾ Coverage in 5 years Coverage in 5 years : 100 cities : 100 cities
¾
¾ Merchandisers Merchandisers : Unisono : Unisono
¾
¾ Promoters Promoters : Outsourced to a company named Rulo : Outsourced to a company named Rulo because of their references/reputation because of their references/reputation
¾ ¾ Salesreps Salesreps : N/A : N/A
¾ ¾ Vendor selection Vendor selection : Commitment to quality : Commitment to quality
¾
¾ Comment Comment : will introduce prepared food for : will introduce prepared food for convenience channel within 2 years convenience channel within 2 years
¾
¾ Opportunities Opportunities : Promotions. Currently a company named : Promotions. Currently a company named RULO does the promotions for Tyson. UFM RULO does the promotions for Tyson. UFM should get insight in
should get insight in RULO RULO’ ’s s performance to performance to see if UFM could do a better job and present see if UFM could do a better job and present this to Tyson.
this to Tyson.
¾
¾ Category Category : Baby nutrition : Baby nutrition
¾ ¾ City coverage City coverage : 0 : 0- -50 50
¾ ¾ Outsourcing Outsourcing : Currently outsourcing merchandising, : Currently outsourcing merchandising, sales and promotions but would sales and promotions but would do it their selves if they had the size do it their selves if they had the size to carry the costs of such an to carry the costs of such an organization
organization
¾ ¾ Vendor selection Vendor selection : Commitment to quality, : Commitment to quality, performance guarantees.
performance guarantees.
¾ ¾ Comment Comment : Auditing and POP monitor. Educate : Auditing and POP monitor. Educate about the advantages of gaining about the advantages of gaining control by outsourcing compared to control by outsourcing compared to leaving FM to wholesalers.
leaving FM to wholesalers.
APPENDIX B: GRAPHS
Motivations to outsource General
0 5 10 15 20 25 30 35 40 45
motivations
fr eq uency
increase company focus free internal resources reduce and controll operating costs
improve time to market make capital funds available share risks
Resources not available internallu acces to capabilities and Skills decrease headcount
Motivations NOT to outsource General
0 10 20 30 40 50 60 70
motivations
fr equency
losing control losing comp. adv losing IP cost are higher affected image losing internal coh.
become to dependable of supplier
getting levered by supplier
weighted motivations to outsource
0 5 10 15 20 25 30 35 40 45
MOTIVATIONS
WEIGHTED FREQ
decrease headcount acces to capabilities and Skills acces to resources share risk
make capital funds available improve time to market reducuce/control operating costs free internal resources increase company focus
weighted motivations not to outsource
0 10 20 30 40 50 60 70
motivations
weighted freq
losing control losing comp.adv.
losing IP cost are higher affected image losing intenal coherene become dependable of sup getting levered by sup.
MOTIVATIONS TO OUTSOURCE PER ACTIVITY
0 2 4 6 10 8 12 14 16 18 20
m e rc h and is in g sa le s pr om o ti o ns k e y a c co u n t ma n a g e me n t
motivations
freq.
decrease headcount acces to capabilities acces to resources share risks
make capital funds available improve time to market reduce and controll operating costs free internal resources increase company focus
motivations not to outsource per activity
0 2 4 6 8 10 12 14 16 18
mer c hand is in g Sa le s Pr omot io ns Key Acc oun t Mana gement
freq .
becoming dependable of supplier Risk of getting levered by supplier Losing internal coherence Affected Company image Overall costs are higher Losing intellectual property Losing Competitive Advantage Losing control
weighted motivations to outsource per activity
0 5 10 15 20 25 30 35 40 45
m e rc ha nd is in g sa le s pr o m ot io n s ke y a c c o u n t m a na ge m e nt
decrease headcount acces to capabilities
acces to resources share risks
make capital funds available
improve time to market reduce and controll operating costs
free internal resources increase company focus
weighted motivations not to outsource per activity
0 5 10 15 20 25 30 35 40
m e rc handi s ing Sal e s Pr om ot io ns Key Ac c ount M anagem ent
becoming dependable of supplier Risk of getting levered by supplier Losing internal coherence Affected Company image Overall costs are higher Losing intellectual property Losing Competitive Advantage Losing control
