F14 Summer Intern Amrita Sengupta Final Presentation
•Télécharger en tant que PPTX, PDF•
1 j'aime•621 vues
Rita Sengupta presents two projects for Small Planet Foods: 1) Developing new product guidelines to formalize criteria for new product launches, and 2) A benchmarking analysis comparing key Small Planet Foods categories to internal analogs to help inform margin goals. For project 1, Rita outlines proposed new product guidelines covering metrics like volume, incrementality, gross margin, and incremental profit. For project 2, Rita analyzes Cascadian Farm Cinnamon Crunch cereal versus a similar product to identify differences in trade practices, material costs, manufacturing, and logistics that impact gross margin. The analysis finds opportunities in manufacturing through co-production and logistics through volume forecasting and distribution structure.
Recommandé
Contenu connexe
Tendances
En vedette
Similaire à F14 Summer Intern Amrita Sengupta Final Presentation
Similaire à F14 Summer Intern Amrita Sengupta Final Presentation (20)
Dernier
Dernier (20)
F14 Summer Intern Amrita Sengupta Final Presentation
- 1. Small Planet Foods New Product Guidelines | Benchmarking Analysis Rita Sengupta August 20th, 2013
- 2. Agenda Introduction: Rita Sengupta Project Overview Project 1: New Product Guidelines Project 2: Benchmarking Analysis
- 3. Who is Rita Sengupta? Oklahoma City, OK Washington University in St. Louis Biking & Yoga Enthusiast Guitarist Avid Instagrammer
- 4. Project Overview Project 1: New Product Guidelines Background Deliverables • Operates with a philosophy around new product guidelines • No clearly formalized criteria • Create and publish guidelines for each type of new product launch • Gain buy-in from all stakeholders Project 2: Benchmarking Analysis Background Deliverables • Several SPF categories have internal GMI analogs • Identify analogs • Deliver cost comparison analysis to help inform margin goals in divisional LRP
- 5. Project 1: New Product Guidelines
- 6. Data Gathering Discuss current process with SPF Benchmark against USRO divisions Analyze New Product Performance Align with cross-functional teams Create Guidelines Objective: Develop and Publish New Product Guidelines for SPF
- 7. SPF Guidelines vs. other USRO Divisions Division Incrementality (%) Gross Margin* Incremental Profit Club Specific In & Outs *sustaining gross margin
- 8. New Product Performance vs. Gate Documentation F13 Volume (EQCs) RNS (ex. NIFDA) GM% (ex. NIFDA + TSU) Actual vs. Gate Actual vs. Gate Actual vs. Gate Actual vs. Line/BU Avg. CF Ancient Grains CF Berry Cobbler LB Uber CF Crunchy Large standard deviation of new product performance
- 9. Proposed New Product Guidelines for Standard Innovation Line Extensions Brand Expansions New Platform Process/Deliverable Volume (Total/No. of SKUs) Charter-Gate 3: Quantify as necessary Incrementality > 30% > 70% > 70% + Charter Total RNS Gate 1-3: Quantify based on volume Gross Margin (ex. NIFDA) ≥ PNL Average ≥ BU Average ≥ Division Average Charter: Define guideline Gate 1: accretive/neutral/ dilutive vs. guideline Gate 2-3: Quantify and compare to guideline See BU specific reference points Incremental Profit* Year 1 > 0 Year 1 + 2 > 0 Gate 1-2 Test and Startup Costs Input estimate and determine if it’s within budget Gate 1 *Incremental Profit = (Gross Margin/EQC*Incremental Volume) – Test & Startup Costs – NIFDA – Depreciation
- 10. Proposed New Product Guidelines for Standard Innovation Line Extensions Brand Expansions New Platform Process/Deliverable Volume (Total/No. of SKUs) Charter-Gate 3: Update as necessary Incrementality > 30% > 70% > 70% + Charter Total RNS Gate 1-3: Quantify based on volume Gross Margin (ex. NIFDA) ≥ PNL Average ≥ BU Average ≥ Division Average Charter: Define guideline Gate 1: accretive/neutral/ dilutive vs. guideline Gate 2-3: Quantify and compare to guideline See BU specific reference points Incremental Profit* Year 1 > 0 Year 1 + 2 > 0 Gate 1-2 Test and Startup Costs Input estimate and determine if it’s within budget Gate 1 *Incremental Profit = (Gross Margin/EQC*Incremental Volume) – Test & Startup Costs – NIFDA – Depreciation
- 11. What Should Happen Clear objectives, vision Match customer need with feasibility What Actually Happens Reactive launches, no portfolio strategy Assess feasibility after committing Gap Lack of standards, alignment (for portfolio strategy) Need to balance push & pull of new product requests (requires preparation) Current State of SPF Customer Exclusives
- 12. Proposed Framework for Customer Exclusives Strategic Purpose Volume Commitment Timeline Other Considerations? Incremental Gain Strategic Customer • Minimum run requirement • Ship 100% of commitment? Define appropriate: • Lead time • Exclusivity Period Should Sales region be liable for: • Special pack? • Unshipped volume commitment? • Fire sale / DD? Define strategic benefit: • Profit driven? • Increase distribution? • Strategic customers by brand
- 13. Other Considerations and Next Steps Do the new guidelines support the Project Warhol initiative? Ensure that guidelines are not hurdles Does this address the issues identified at the Focused Improvement? Enforce post-launch analysis Gate 4: In-Market Review
- 14. Project 2: Benchmarking Analysis
- 15. Objective and Agenda Help inform SPF’s long-run margin goals in the upcoming divisional LRP Key SPF Categories Case Study Areas of Opportunity
- 16. Breakdown of Key Categories in SPF Cereal and Granola 72% Snack Bars 12% Frozen Vegetables 9% Frozen Fruit 5% Volume (EQC) of each Business Unit in SPF Cascadian Farm 43% Muir Glen 16% Food Should Taste Good 20% Larabar 21% Volume (EQC) of each Category in Cascadian Farm
- 17. Case Study: CTC vs. CF Cinnamon Crunch (GM/oz) CTC GM/oz. Net Sales Trade + Coupon Total Materials Total Manufacturing Total Logistics CF Cinnamon Crunch GM/oz.
- 18. Key Differences in Trade CTC GM/oz. Net Sales Trade + Coupon Total Materials Total Manufacturing Total Logistics CF Cinnamon Crunch GM/oz. KEY DIFFERENCES: • CTC is traded more frequently (8 times/year vs. 4 times/year) • CTC has deeper discounts • Big G varies trade strategy by brand and size of product
- 19. Key Differences in Material Cost KEY DIFFERENCE: • Higher costs of premium CTC GM/oz. Net Sales Trade + Coupon Total Materials Total Manufacturing Total Logistics CF Cinnamon Crunch GM/oz. organic ingredients
- 20. Key Differences in Manufacturing Cost CTC GM/oz. Net Sales Trade + Coupon Total Materials Total Manufacturing Total Logistics CF Cinnamon Crunch GM/oz. KEY DIFFERENCE: • GMI owned plants vs. External Supply Chain AREA OF OPPORTUNITY: • Co-production with GMI plants
- 21. Key Differences in Logistics Cost CTC GM/oz. Net Sales Trade + Coupon Total Materials Total Manufacturing Total Logistics CF Cinnamon Crunch GM/oz. KEY DIFFERENCES: • Big G—scale drives more efficient use of CSF network • SPF—products flow through more CSFs
- 22. Case Study: Key Takeaways CTC GM/oz. Net Sales Trade + Coupon Total Materials Total Manufacturing Total Logistics CF Cinnamon Crunch GM/oz. 1. CF prices for premium ingredients 2. Areas of opportunity: Manufacturing Co-production with internal plants Logistics Tighten volume forecasting Evaluate structure
- 23. Next Steps Share insights and areas of opportunities for other analogs to Cascadian Farm brand team Transition analysis to finance team for divisional LRP
- 24. THANK YOU! Jeff Siemon, Eileen Anderson, Kethan Pradhan, Meggie Wittorf, Andrew Nymo, Nathan McCurren, Haylee Remark, Jessica Lee, Danielle Bagge, Brian McIntosh, Chad Ries, Brianna Menning, Alicia Beerman, Joffrey Wilson, Peter Roose, Allen Gerten, Onaisa Husain, Kristin Witt, Ryan Flanagan, Jessica Britton, Jennifer Kaplan, and the FRIT team!
- 25. Questions? NPG Benchmarking Analysis New Product Performance Standard Innovation Guidelines Customer Exclusive Framework Key SPF Categories CF Case Study Main Takeaways
- 26. Appendix
- 28. Volume Frozen Frontier New Product Guidelines Incrementality (to Division) Gross Margin (Sustaining) New Platform Brand Expansion Line Extension Club & All Other* ≥ 70% Cumulative Profit (Incremental) > Division Retail Target ≥ 50% ≥ 30% ≥ 70% > BU Retail Target > PNL Retail Target * All Other includes Small Format, DD&D Adjust for Club Profitable < 30 Months Profitable < 12 Months Capital IRR 20% Breakeven Launch Yr Profitable < 24 Months
- 29. New Platforms Brand Expansion Line Extension Club (New/Rotational) Retail In/Outs GM% 40% 40% 35% OR line accretive 25% 35% OR line accretive, incl. write-offs Gross RNS $5MM $3MM $5MM $1MM $1.5MM IRR% 20% EBIT Breakeven Year Year 3 Year 2 Year 1 Year 1 Year 1 Supporting Model to Hit Hurdles New Platforms Brand Expansion Line Extension Club (New/Rotational) Retail In/Outs Gross Volume 250 150 250 50 75 Marketing Spend (Year 1&2 Combined) $2,000 $500 $ - $ - $- Incrementality 75% 60% 50% 80% 60% Capital $833 $ 333 $50 $50 $ 50
- 30. Pillsbury New Product Guidelines STRATEGY: Innovate with larger and highly incremental new products that will drive share and profit growth Line Extension New Platform Brand Expansion > 80% > 60% Incremental > 40% Net Sales Per SKU > 40% > 30% > 40% > 30% IRR ( 5yr life) and within at least 90% of products impacted by steal > Category Margins impacted by steal* > 20% Gross Margin % (Sustaining) > $6MM > $8MM > $6MM > $8MM > $6MM Net Sales Gross Margin Club/Channel Permanent Distribution >$2MM Gap to Retail < 13% Financials must be approved by business teams
- 31. Template for Average BU Margins CASCADIAN FARM LARABAR MUIR GLEN FOOD SHOULD TASTE GOOD Category GM % Club GM% Category GM % Club GM% Category GM % Club GM% Category GM % Club GM% Cereals Core Tomatoes Tortilla Granola ALT Diced Kettle Cooked Cereal Uber Fire Roasted Crackers Granola Bars Jocalat Whole BU Average Chewy BU Average Crushed and Ground Crunchy Pasta Sauce Frozen Fruit Salsas Frozen Vegetables Soups Boxed Pastes Bagged Ketchup Blends BU Average Frozen Potatoes Fruit Spreads Concentrates Relish BU Average Business Unit GM % Cascadian Farm Larabar Muir Glen FSTG DIVISION AVERAGE 30% Back
- 32. Brand Strategic Customers Club (Costco) Natural Channel (WFM) Retail (Target) WFM Ahold Publix Kroger W-M Publix Kroger WFM Club (Costco) Natural (WFM, Sprout) Target Back
- 33. Brand Minimum Runs Production: 700 cases Packaging: 9,000-12,000 cases Production: 20,000 cases/SKU No packaging limit CF Granola: 17,500 cases CF Cereal: 13,500 cases Bars: 6,000-7,000 Packaging: 10,000 prints – bars (individual film or box) or cereal Min. Actual Cases/production run: Fresca SUS- 1,350 Fresca MPK- 2,160 Uber SUS- 3,500 Uber MPK- 5,200 Min. Pouches/order: 660,00 Min. Caddy’s/order: 12,000 Back
- 34. Summary of Other Analogs CASE STUDY: CF Cinnamon Crunch CEREAL FROZEN VEGETABLES SNACK BARS CF Honey Nut O’s CF Multigrain Squares CF Broccoli & Carrots CF Mixed Vegetables CF Crunchy Oats n Honey CF Chewy Chocolate Chip
Notes de l'éditeur
- -Explain why those three divisions -Tie NP Performance back to NP guidelines (to see how current guidelines were working)
- -At SPF we “talk” about incremental profit/breakeven, club, and in & outs no formal guidelines though
- -Go through criteria, four launches, key takeaway -Don’t need to spend time ticking through each launch (Jeff—Uber)
- -Volume and RNS are boxes which can be “checked” or “filled in” -Under the assumption that both finance and marketing will be using the guidelines -Incremental Profit: change Year 1 > 0 based on analysis, all launches were negative -Test & Startup: based on analyzed four launches, the number vary by both brand and type of launch…maybe go with the latter option? (i.e. Uber (BE) $3000, CF Crunchy (LE) $5000-$11,000 and Ancient Grains (LE) $19,000 Vanilla Almond Cereal (LE) $28,000 -All Channel (ex. Club)
- -Volume and RNS are boxes which can be “checked” or “filled in” -Under the assumption that both finance and marketing will be using the guidelines -Incremental Profit: change Year 1 > 0 based on analysis, all launches were negative -Test & Startup: based on analyzed four launches, the number vary by both brand and type of launch…maybe go with the latter option? (i.e. Uber (BE) $3000, CF Crunchy (LE) $5000-$11,000 and Ancient Grains (LE) $19,000 Vanilla Almond Cereal (LE) $28,000 -All Channel (ex. Club)
- -”yes, and…” -at SPF, CE are becoming more frequent and there is a greater need to do them faster (**what is the % of CE? And breakdown of customers asking for exclusives—WFM/Kroger/Target?) -saw this as an extra opportunity – divisional issue addressed in the FI
- -make the columns more “action statements/steps”
- Condense objectives
- Help inform SPF’s long-run margin goals in the upcoming divisional LRP
- -Change title
- Key takeaway: price primarily for materials (not accounting as much for mfg/logistics?)
- CTC: 2/$5, 3/$6 CF: 2/$6
- Include: internalization (long term strategy)
- -From conversations with each brand team
- -From conversations with each brand team
- Frozen Veg: Sweet Peas Poly 10 oz. (40% GM, 73000 EQC)