Added Value Analysis

TOOL USED IN SALES AND MARKETING PRODUCTIVITY PROJECTS

Sales and Marketing Productivity Team

The Composition Of The Presentation

INTRODUCTION

CHECKLIST

EXAMPLES

SOFTWARE

Sales and Marketing Productivity Team

Overview

What is Added Value Analysis? Who is involved? Why is AVA effective? How is it performed?

Sales and Marketing Productivity Team

What is an AVA?

An Added Value Analysis (AVA) is a systematic observation with the aim of: focusing everyone's energy on essential activities improving effectiveness of all activities by streamlining decision making and improving accountability achieving lasting improvements by eliminating nonessential tasks building commitment to ongoing improvement by involving staff in the process

Sales and Marketing Productivity Team

What an AVA is NOT ...

The AVA study is not: An attempt to get people to work harder A way of getting the same workload done with fewer people An attempt to reduce the quality of the work to the detriment of the business

Sales and Marketing Productivity Team

Who is involved?

All relevant Marketing, Sales and Supply Chain functions, i.e. Marketing manager Product / Brand manager Key Account Manager (KAM) Supply chain managers Any type of supporting function related to Marketing and Sales

Sales and Marketing Productivity Team

Why is an AVA effective?

The participants generate the improvement idea in conjunction with the team and idea analysis

It involves all areas in innovative thinking

The management approval process ensures a fit with long term strategy It improves managers' cost awareness of the tasks performed It streamlines activities, tailoring the organisation to its workload

Sales and Marketing Productivity Team

Why carry out this survey?

Do we know which activities we spend our time on?

(This Survey)

30% Knowledge ? (Prior to Survey)

100% Knowledge

Better Decisions can be made

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(A full Time & Motion study)

Sales and Marketing Productivity Team

The Composition Of The Presentation

INTRODUCTION

CHECKLIST

EXAMPLES

SOFTWARE

Sales and Marketing Productivity Team

How is it performed?

Overview in 4 steps

Preparation with the unit heads Analysis of activities Idea generation Action plan

Sales and Marketing Productivity Team

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Preparation with the unit heads

- Meet with the Unit / Department Heads - Explain how the study is carried out - Explain the role of the organization and the expected benefits - Explain timetable and key dates - Show examples of results from previous projects - Show example of documents to be used (ie: AVA form)

Sales and Marketing Productivity Team

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Analysis of activities

Preparation phase
- Define the areas of the Company to analyse and the names of people that are going to receive the AVA - Define the AVA form(s), adapted for the market - Make the computer ready to input the data once the AVAs are received - Prepare a cover letter and a sheet with instructions on how to fill out the AVA

Sales and Marketing Productivity Team

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Analysis of activities
AVA collection phase
- Send in a close envelope AVAs to participants - Once AVAs are received verify their correctness - contact authors to solve compilation errors, if any

AVA collection phase (2nd option)

- Gather participants in group sessions - Explain the AVA during the meeting - Ask them to compile the AVA during the same meeting
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Analysis of activities

Process AVAs with the computer application

- Input AVAs as soon as they are received and validated - Extract reports from the system to analyse results

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Idea generation

Perform Brainstorming sessions to:

- Analyse results of AVA - Generate ideas to improve productivity and eliminate activities with no value added - Evaluate cost, benefits, and feasibility of ideas proposed - Integrate ideas with other proposals coming from the project

Present ideas to management to obtain approval

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Action Plan

- Define timetable for implementation considering also pilot initiatives - Define resources needed - Start implementation

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Tips ...

Don't underestimate the time needed Test the forms before sending them out by someone from the local Market Inform people that no names will be disclosed and that results will be analysed in aggregated form

Sales and Marketing Productivity Team

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The Composition Of The Presentation

INTRODUCTION

CHECKLIST

EXAMPLES

SOFTWARE

Sales and Marketing Productivity Team

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Market X: Breakdown of main Brand Management activities

100
8.6 15 14.5 60 8.7 11 40 7 7.2 28 0
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OTHERS

A third of brand management's

time is spent in meetings (28%) and market visits (7%)

80

CONSUMER RELATED ACTIVITIES NPD STRATEGY SALES SUPPLY CHAIN MARKET VISITS MEETINGS

Of the remaining 65%,

consumer related activities, new products and sales are the three key activities of Brand Management

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Market X: Consumer related activities

100
8.6 15 14.5 60 8.7 11 40 7 7.2 28 0
Sales and Marketing Productivity Team
AGENCYMEETINGS 6.3%

Involves major activities of planning

and implementing communication programs and promotions

80

Brand Management spends only 15%

of total time on this - hence time spent on each task is low
COMMUNICATION 3.2%

20

PROMOTIONS 4.2%

PR & SPONSORSHIP 1.3%

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Market X: New product development

100 8.6 15 14.5 60 8.7 11 40 7 7.2 28 0
Sales and Marketing Productivity Team
LAUNCH PREPARATION 0.9% LAUNCH FOLLOW-UP 1.9% PLANNING & COORD. 6.5% INT. LAUNCH 1.9% RESEARCH 0.9% MKT ANALYSIS 1.7%

80

New product development involves 14.5% of brand management time However time spent on each specific activity is low

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TASTING 0.7%

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The Composition Of The Presentation

INTRODUCTION

CHECKLIST

EXAMPLES

SOFTWARE

Sales and Marketing Productivity Team

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Added Value Analysis

TOOL USED IN SALES AND MARKETING PRODUCTIVITY PROJECTS

Sales and Marketing Productivity Team

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