THE ISSUE: How to grow a brand in

a global market place

In developed markets, incomes are either slowing, flat lining or outright declining

Elsewhere, there is volatility mixed with a very significant growth opportunity

This is placing a daunting pressure on the leaders of today

Either, you are either faced with a situation where there is no way of delivering profitable growth without beating the competition, which is increasingly own label. Or, you are having to capture the profit before someone else does

A new type of diagnostic is required to help your people cut through the complex clutter of results and symptoms to identify and address root causes

Profitable growth in today’s world requires a world class understanding of performance drivers in the brand P&L

Historical value created

Problems to fix and how to fix them

Consumer Measures, Category Measures, Advantage Survey/GfK, Competitive Position, Brand P&L

Ineffective NPD, weak digital reputation, dis-engaged trade customers, escalating trade spend, lack of internal passion for the brand

Are they understood?Do stakeholders agree?What actions should be undertaken?

Our 3-D Brand Diagnostic is your essential tool for

root cause analysis

Results

Pain felt today

Symptoms

Root Causes

Our 3-D analysis tool ensures that root cause issues are identified, rather than just symptoms

Each dimension (stakeholder perception, data, expertise) provides unique insight into how to drive brand performance

Once root cause issues are agreed, improved performance can be targeted and actions automatically generated to address these issues and deliver real results

3-D root cause analysis defines actions that deliver real results

Root Cause Analysis

Perception

3DBrand

Diagnostic

StakeholderReality

Level ofExperience

Quality of Data

DataExpertise

Actions

£ $€¥

The product architecture directly supports

the client’s business planning process

A consistent quantitative research structure is used to collect information, compare benchmarks and create the financial analysis

The 3-D Diagnostic product is unique in the way it step changes productivity in clients’ business planning processes by structuring unstructured information and automating action planning

Financial Model

3DPerformance

PlanQuantitative

ResearchStructure

ExpertPerformance

Review

Client DataRepository

IndustryBenchmarkDatabase

Web-BasedStakeholder

Questionnaire

Circa 30 key stakeholders deliver feedback on brand performance through our web-based quantitative research tool

Existing data (brand plans, customer presentations, raw data) is analysed by CA to understand if stakeholder perception is valid

Nominated experts challenge stakeholder perception and data analysis to create a final 3-D root cause analysis of performance

In each performance area a current and target level of performance is set to define actions to shift brand performance

A valuation model creates a direct line of sight between planned actions, predicted value creation and potential investment scenarios

STEP 1

STEP 2

STEP 3

STEP 4

STEP 5

5 steps are undertaken to create a 3-D Brand

Performance Plan

Stakeholder does not see the question

Order of statements is randomised to

increase objectivity

Stakeholder sees statements to agree

or disagree with

1. Does the brand’s current product portfolio effectively cover the significant majority of the brand’s profit growth opportunity within the category?1 There is a clear link between the brand's product portfolio and target consumer needs and behaviours.7 There are major gaps in our portfolio that we could fill to deliver growth.

2. Does the brand's current product portfolio effectively deliver the brand blueprint?8 The brand's product portfolio makes utter sense when you look at what we're trying to do with the brand.2 I'm not sure we've got the right product portfolio to deliver the brand strategy.

3. Do each of the brand’s products have clear roles in delivering the needs and usage patterns of target consumers?3 Each of the brand's products fulfil a distinct role for the consumer.9 If we culled a few of the brand's products I don't think we'd lose much volume.

4. Are the brand’s products of a superior quality to competitor brands’ products?12 This brand's products are the best quality in the market place.6 The product quality is weak in comparison to competitor brands.

5. Does the brand’s packaging appeal to shoppers and consumers?10 The brand's packaging delivers a compelling reason to buy and use the

product.4 The brand's brand packaging is lost on shelf.

6. Do the brand’s products effectively meet the needs of our route-to-market (supply chain, stores etc.)?5 Our brand's packaging effectively meets the demands of our route-to-market.11 We regularly face issues with our products as they move through our and our customers' supply chains.

Web-based quantitative researchcollates rich stakeholder opinionSTEP1Expertly designed web-based quantitative research tool

Seeks degrees of agreement to key statements that indicate performance versus expertly identified brand performance drivers

Drives objectivity:- Statements are built to be intuitively understood- Provides positive and negative versions of the same statements to examine consistency of response- Avoids tying statements directly to the brand performance drivers

Users can be any stakeholder- All functions- All grades- Local and international- Internal & external

STEP2Data is reviewed to better understand reality

Data is both deposited on our server by the client team and stakeholders can post documents to the software directly in response to submitting specific opinions.

This is existing data only - no new analysis needs to be undertaken by the client. =

Data is evidenced against the quantitative research structure to assess the validity of differing stakeholder perceptions

5. Does the brand’s packaging appeal to shoppers and consumers?

Category analysis+Advantage Group survey+

+Innovation pipeline+Activation plans+Organisation structure+Sales fundamentals+Operational performance+Brand P&L

Brand consumer & shopper research

STEP3Expert opinion challenges data and perception

Specific client experts are nominated to work with our experts to provide opinion on stakeholder perception and available data in order to create a final 3-D conclusion on each area of performance

We agree upfront who the client experts will be for each area of subject matter e.g. ‘Brand Blueprint’ = Marketing Manager, ‘Consumer Franchise’ = Knowledge & Insight Manager, ‘Trade Customer Relationships’ = Grocery Trading Director and build on their input to create the expert view

As you can see, root cause analysis only works in 3-D

Much of the organisation do not think the packaging is right and anecdotal evidence from trade customers suggests the same

The research was not specific enough about the appeal of the packaging to target consumers & shoppers and perception is a more likely guide to reality

The final conclusion is that there is a problem with packaging appeal to shoppers & consumers

Shopper & consumer research tells us that the packaging stands out well on shelf and has high appeal

5. Does the brand’s packaging appeal to shoppers and consumers?

Perception

3DBrand

Diagnostic

DataExpertise

NO

NO

NO YES

STEP4Actions to improve performance are agreed with key stakeholders

Once the 3-D analysis is complete, a working session is held with 2 to 4 key stakeholders responsible for the brand to conduct a final interpretation of the results

In each performance area a level of current performance is agreed using 3-D insight and a target level of performance is set, using the structure on the page opposite

Actions are then automatically generated to shift the brand to a higher level of performance

AUTOMATICALLY GENERATED ACTION:Redesign packaging to better stand out on shelf and ensure it effectively communicates the core brand message & USPs

DESIRED FUTURE PERFORMANCE

CURRENT PERFORMANCE

4. Are the brand’s products of a superior quality to competitor brands’ products?4. Product quality is driving a distinct advantage versus competitors3. The products are in line with average consumer expectations of quality, but do not stand out from competitor products2. The products meet minimum consumer expectations of quality, but underperform compared with leading competitor products1. There is little understanding of the brand's level of product quality

5. Does the brand's packaging appeal to shoppers and consumers?4. The packaging delivers a compelling shopper and consumer brand experience3. The packaging positively stands out on shelf and effectively communicates the core brand message and USPs2. The packaging has some impact on shelf, but fails to communicate the brand's core message or USPs1. The packaging is lost on shelf in all key store formats

6. Do the brand’s products effectively meet the needs of our route-to-market (supply chain, stores etc.)?4. The product line up delivers a distinct competitive advantage in our route-to-market3. The product line up meets internal and external minimum expectations for each requirement2. There is good understanding the requirements of the brand's route-to-market from finished product to consumer experience, but our product line up does not meet these requirements1. There is little understanding of the requirements of the brand's route-to-market from finished product to consumer experience

STEP5 The final step is a valuation of improved performance

Our valuation model uses an algorithm to create a direct line of sight between planned actions to shift performance, predicted value creation and potential investment scenarios

Current revenue & profit delivered through current performance

Current revenueIncremental

Revenue Derived From Performance Improvement

Incremental Profit Derived From Performance Improvement

Improvement Fund @ 1:2 Ratio

To Profit

Planning Fund At 1:4 Ratio To Improvement Fund

Incremental revenue & profit delivered through improved performance

5. Does the brand's packaging appeal to shoppers and consumers?4. The packaging delivers a compelling shopper and consumer brand experience3. The packaging positively stands out on shelf and effectively communicates the core brand message and USPs2. The packaging has some impact on shelf, but fails to communicate the brand's core message or USPs1. The packaging is lost on shelf in all key store formats

PLANNED PERFORMANCE SHIFT VALUE DRIVING ALGORITHM INVESTMENT PLANNING

£ $€ ¥

* = Incremental Annual Revenue / Contribution = From Lagging To Driving Category

Confirmation of areas of strong performance

Root cause analysis for critical areas of underperformance

Improvement actions defined to shift current performance to future desired performance

Planned financial outcome

As more of these are conducted, comparative internal benchmarks can be run across performance components, brands, markets and stakeholder communities

1 4

2.9

2.4

3.0

3.1

2.8

2.5

2.5

2.5

2.5

2.0

2.0

1.6

3.0

2.3

1.4

1.8

2.8

2.2

3.2

3.1

3.4

4.0

3.5

3.3

3.3

4.0

3.0

Brand Blueprint

Operating Model

Relevant Category Opportunity

Equity Building Activities

Trade Customer Relationships

Consumer Franchise

Product & Portfolio Offer

Pack, Price & PromotionArchitecture

Innovation Pipeline

2.7

1.2

2.7

Transaction Driving Activities

3-D Brand Performance Plan

Comprehensive report

Web-based survey can be delivered in any language in any country

-

Performance Component Questions

1.5 Level 1 Level 3

Stakeholder Perception

Split by Stakeholder Group

Current Performance

Target Future Performance

Improvement Action

1. Does the brand’s current product portfolio effectively cover the significant majority of the brand’s profit growth opportunity within the category?

2. Does the brand's current product portfolio effectively deliver the brand blueprint?

3. Do each of the brand’s products have clear roles in delivering the needs and usage patterns of target consumers?

4. Are the brand’s products of a superior quality to competitor brands’ products?

5. Does the brand’s packaging appeal to consumers and shoppers?

6. Do the brand’s products effectively meet the needs of our route-to-market (supply chain, stores etc)?

Scored 1 (low) to 4 (high) in terms of agreement with supporting statements to question (as explained in pages 14 - 15 )

Agreed current and target performance (as explained in pages 16 - 21)

The appendix delivers rich detail on the perception of stakeholders, data reviewed and the expert opinion provided.

This creates a direct line of sight between the summary conclusions and detailed analysis

Redesign packaging to better stand out on shelf and ensure it effectively communicates the core brand message & USPs

Rich detail provides supporting insight

into required action

The bespoke software solution has been specifically designed to help our corporate clients analyse business performance

It allows stakeholders to provide their opinion and back it up with fact, for example by attaching files that they believe are relevant

The same analysis structure is then used for the data analysis and expert opinion

As root cause issues and levels of current and desired performance are agreed, actions are automatically generated to shift performance

On the basis of these agreed actions, a valuation of improved performance is automatically generated

The software itself has been built

exactly for the purpose

The diagnostic is deployed annually across each brand

Suitable for deployment annually as part of the business planning process

Can be used adhoc for brands that require remedial attention

Fact based analysis of reality

6 Week Process

Completion of web based quantitative research by agreed stakeholder community

Write-up of the 3-D Brand Performance PlanSet-up

ClientTailoring

3-D Brand Diagnostic

Business Planning

Brand Strategy

Investment Agreement

ExecutionPlanning

Execution

Client time commitment on each diagnostic

is minimal

Circa 30 key stakeholders deliverfeedback on brandperformance through our web-basedquantitative research tool

Existing data (brand plans, customer presentations, raw data) is analysed by CA to understand if stakeholder perception is valid

Nominated experts challenge stakeholder perception and data analysis to create a final 3-D root cause analysis of performance

In each performance area a current and target level of performance is set to defines actions to shift brand performance

A valuation model creates a direct line of sight between planned actions, predicted value creation and potential investment scenarios

STEP1 STEP2 STEP3 STEP4 STEP5

20 minutes per survey respondent

Total of 3 hours for the data co-ordinator and 30 minutes per data provider (typically 5-7 data providers) – no new analysis needs to be done by the client

Total of 3 hours for the expert reviews with each of the typically 4 individual client experts

All activities are delivered online through the web-based survey, teleconference calls and videoconferences

There are 3 levels at which the diagnostic

can operate

Stakeholders typically include 5 Global respondents and 5 respondents in each Region

Fact based analysis is conducted from global data

Typically 30 respondents per diagnostic

£35,000 fee* as a one-off or less for a 3 year contract or multiple diagnostics

* = excludes out of pocket charged at cost and VAT charged at the applicable rate

Stakeholders typically include 5 Regional respondents and 5 Local respondents in each country or market cluster

Fact based analysis is conducted from Regional data (e.g. Europe)

Stakeholders typically include 5 local Leadership Team members and 25 cross-functional local representatives

Fact based analysis is conducted from local data

GLOBAL

1

2

3

REGIONAL

LOCAL

50% - 70% reduction in requirement for face-to-face meetings drives e.g. - Lower T&E expenses - Better resource utilisation

Understanding the root cause problem cuts £250k-£1m+ of unnecessary spend on addressing symptoms e.g. - Consumer research - Packaging redesign - Advertising - Promotions

Transformed clarity and strong stakeholder alignment around what problems need to be solved uplifts revenue by 25% - 50% - Better product innovation - Strategically designed pack, price and

promotion architecture - Improved equity building activity - Supportive trade customer relationships

* = subject to brand profile

Brand revenue growth, profit growth and improved ROI

COST SAVING* REVENUE GROWTH*

The business case for deploying the diagnostic

is compelling

470 firms assessed . . . 6 firms selected as Partners . . . New Partners coming on-board . . . 500+ employees . . . The leading specialists at delivering real results . . .

Our System can help you build exceptional solutions

Example Results

- £50m of incremental profit in Year 1 of a world class JBP- 357% brand growth over a 3 year period- €10m of trade spend cut- $100m of incremental brand profit- +40% YOY revenue growth through improved trading plan- $20m cost avoidance

Example Suppliers & Retailers

World class experience in consumer goods