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Presentation to:. Category Management Association Conference October 27, 2009. Agenda. What is Storewars? How Storewars works Key learning objectives Program structure Suggested participants/formats Storewars clients / countries Participant learnings/feedback For more information.
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Presentation to: Category Management Association Conference October 27, 2009
Agenda • What is Storewars? • How Storewars works • Key learning objectives • Program structure • Suggested participants/formats • Storewars clients / countries • Participant learnings/feedback • For more information
What is Storewars? • An exciting, challenging MBA-level business simulation that provides participants with: • Risk-free environment to test strategic business concepts • Valuable industry knowledge • Understanding of challenges facing their trading partners • Negotiating and team building skills • Leading to: • Improved business results • Increased consumer satisfaction
How We Learn • 10% of what we read • 20% of what we hear • 30% of what we see • 50% of what we both see and hear • 70% of what is discussed with each other • 80% of what we experience personally • 95% of what we teach to someone else -William Glasser
How Storewars Works • Five profitable $100 million companies • Two retailers • Three CPG manufacturers • Two separate and distinct markets • Two categories • Teams decide marketing, sales and commercial issues • Teams negotiate trading agreements
Production R &D Store Image Assortment Positioning Advertising Shelf space Pricing Promotions Quantity Discounts Cooperative Advertising Terms of Payment Decision-Making and Negotiation
How Storewars Works • Decisions fed into computer model • Simulates 6 month period • 4 decisions / 2 years • Company financial data reports and market research studies provided after each decision • Winners determined by market share and Economic Value Added (EVA)
Learning Objectives of Storewars • Offer insights into manufacturer and retailer relationships
From the book Agentry Agenda: Selling Food in a Frictionless Marketplace by Glen A. Terbeek available at AgentryAgenda.com or Amazon.com.
Cartoon from the book Agentry Agenda: Selling Food in a Frictionless Marketplace by Glen A. Terbeek available at AgentryAgenda.com or Amazon.com
Store equity Brand equity Two Different Realities
Learning Objectives of Storewars • Offer insights into manufacturer and retailer relationships • Use enhanced negotiation skills for win-win situations
Learning Objectives of Storewars • Offer insights into manufacturer and retailer relationships • Use enhanced negotiation skills for win-win situations • Work in teams to achieve a group objective • Operate more effectively with other departments in your organization
Learning Objectives of Storewars • Offer insights into manufacturer and retailer relationships • Use enhanced negotiation skills for win-win situations • Work in teams to achieve a group objective • Operate more effectively with other departments in your organization • Determine business strategy and implement effectively
Learning Objectives of Storewars • Offer insights into manufacturer and retailer relationships • Use enhanced negotiation skills for win-win situations • Work in teams to achieve a group objective • Operate more effectively with other departments in your organization • Determine business strategy and implement effectively • Transform information into profitable decisions • Provide trading partners/customers with most appropriate information for effective decision-making • Use your time more efficiently to make decisions
From the book Agentry Agenda: Selling Food in a Frictionless Marketplace by Glen A. Terbeek available at AgentryAgenda.com or Amazon.com.
Program Structure • Program activities • Group interaction/team work • Lectures • Feedback sessions • Team reviews • Key learnings presentations/ discussion • Facilitators (2) • Coach • Lecturer/discussion leader • Analyst • Administrator
Suggested Participants • Challenging for all levels up to senior management • Retailers, wholesalers, manufacturers, market research providers, ad agencies, consultants • Buyers, category managers, merchandising, sales, trade marketing, marketing, market research • Cross functional learning helpful to other departments such as finance, operations, systems
Main Formats 24-34 Participants – 29 Optimal • Corporate course — all participants are colleagues from the same company from the same or different markets. • Can invite trade partners • Shared course — participants are drawn from 2 or 3 different companies. • Open course — participants come from a variety of companies and mix with peers from across the industry.
Ahold Supervalu Tesco Wal*Mart Metro (Germany) Metro/Mansour Manufacturing and Distribution (Egypt) BAT Cadbury Schweppes Coca-Cola Grolsch Heineken Kelloggs Kraft International Mars Nestle Philip Morris International Sara Lee Unilever Wrigley Hewlett Packard Some Storewars In-House Clients
Hong Kong China Indonesia (2x) Malaysia Singapore India (4x) Thailand U.A.E. (14x) Egypt Saudi Arabia (2x) Austria Belgium (6x) Croatia (3x) Czech Republic Hungary Netherlands (2x) Poland (2x) Portugal Brazil (2x) Mexico Hope’s Storewars Countries (outside US)
What Participants LearnedNielsen Open Session - Dubai • Strategy planning before tactics • Find differential from competition • Preparation is everything • Make the most of marketing tools/ research • Individual strengths should be utilised • Try to be in other’s shoes (It is really hard to be a manufacturer!) • “Be POLITE”….especially when you are in trouble
What Do Our Clients Say? • “There are not a lot of training programs out there for retail category managers, but Storewars was an ideal opportunity to help improve the performance of our people while they were under the fire of making decisions.” Michael Knight, Senior Vice President, Giant Food Stores • “It is like a laboratory in which you can put people in stressful situations… You can see how creative people can be.” Michael Knight, Senior Vice President, Giant Food Stores • “The SUPERVALU participants gained valuable insights into how their manufacturer partners prepare for and actually negotiate.” Michael Terpkosh, Director, Category Management Development & Retail Pricing, Supervalu • “Storewars strengthened the working relationships between our merchandising staff and the manufacturers.” Michael Terpkosh, Director, Category Management Development & Retail Pricing, Supervalu • ”We don’t think this much at work. Storewars gave us a first-hand look at problems faced daily by retailers.” Nick Jay, General Manager, Sales, Al Marai, Saudi Arabia
Programs - 2010 • Retailer Sponsored • Rite Aid • Ahold (?) • Category Management Association Sponsored • Bentonville • Minneapolis • SF • ??? • Other potential sponsors • Other industry service suppliers • Universities – UCLA (?) • Manufacturer In-House
For More Information • Visit www.cpgcatnet.org/page/storewars/
For More Information • Visit www.cpgcatnet.org/page/storewars/ • Contact Hope Mandel – Shelton, CT • 203-926-6926 (office) • 203-856-1330 (cell) • hmandel@cpgcatnet.org