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SAP INSIGHT
INTEGRATED SALES
AND MARKETING FOR
CONSUMER PRODUCTS
COMPANIES
0022__2200008855 IISSMM ffoorr CCoonnssuummeerr PPrroodduucc11 11 66//1111//22000077 1111::2233::1133 AAMMTable of Contents
Executive Agenda 1
How Isolation Impedes Integration 2
The Value of ISM 3
How ISM Supports Profitable Growth 5
Launching an ISM Initiative 8
Get Ready to Grow 9
0022__2200008855 IISSMM ffoorr CCoonnssuummeerr PPrroodduucc22 22 66//1111//22000077 1111::2233::4422 AAMMINTEGRATED SALES
AND MARKETING
FOR CONSUMER
PRODUCTS
COMPANIES
by Gary Adams and Mark Panley
0022__2200008855 IISSMM ffoorr CCoonnssuummeerr PPrroodduucc33 33 66//1111//22000077 1111::2233::4444 AAMM
0022__2200008855 IISSMM ffoorr CCoonnssuummeerr PPrroodduuccSSeecc11::11 SSeecc11::11 66//1111//22000077 1111::2233::4455 AAMMEXECUTIVE AGENDA
Never before has the consumer products (CP) To overcome these obstacles, CP executives need marketplace been so competitive. Persistently low to create a holistic, closed-loop framework that growth is exacerbated by unparalleled consumer incorporates all elements of traditional sales choice. Retailers flex their increasing power and marketing processes: an integrated sales to squeeze CP companies into relinquishing and marketing (ISM) approach. Unlike typical control over pricing, promotions, and point-of- "siloed" efforts, in which sales and marketing sale interactions. Intense product competition, work independently, this approach integrates the resulting in a proliferation of SKUs, compromises execution of all sales and marketing operations CP organizations' ability to operate efficiently. across the extended enterprise. Furthermore, the investments and resources An ISM approach combines existing technology required to address escalating government such as enterprise resource planning and customer regulations as well as bioterrorism and food safety relationship management with capabilities concerns are intensifying the downward pressure such as dynamic sales and operations planning, on margins. global data synchronization, point-of-sale-based In the face of these unrelenting pressures, advanced analytics, integrated trade promotions executives struggle to identify and execute the management, multitiered collaboration and shared critical path to profitable growth. Unfortunately, scorecards, brand management, retail execution, most CP leaders are bandwidth- and resource- and category management. As a result, ISM constrained, hamstrung by a lack of actionable provides real-time visibility, collaboration, and market intelligence. Without clear visibility into analysis, benefiting every player in the supply chain all aspects of the enterprise, its suppliers, and - including manufacturers, suppliers, retailers, and customers, CP companies cannot ensure that brand consumers. strategies are executed efficiently and responsively This SAP Insight explores the current challenges of down to the shelf level. Absent this data, executives the CP industry, describes how an ISM approach can are unable to assess performance against these help CP companies create new value by supporting strategies, identify and analyze options for shaping profitable growth, and discusses steps executives product demand, or make and act on fact-based must take to launch an ISM initiative. decisions.
Macro economic Increased Figure 1 Environment Retailer PowerConstrainedCompetitive Revenue GrowthPressures Facing CP Companies Downward Margin Pressure
ReducedOperatingIncreasing EfficiencyGovernment IntenseRegulations Competition
SAP Insight| 1
0022__2200008855 IISSMM ffoorr CCoonnssuummeerr PPrroodduuccSSeecc22::11 SSeecc22::11 66//1111//22000077 1111::2233::4455 AAMMHOW ISOLATION IMPEDES INTEGRATION
For most CP companies, sales and marketing are ƒ Inconsistent alignment toward activities andtwo different sets of independent processes. Despite goals - Lack of process integration and data any claims of collaboration or integration, these sharing hampers synchronization of activities, departments still work in relative silos: they lack particularly in upstream and downstream process integration and design; use different sets processes, and compromises the ability of of ... [download for more]
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