6/27/2011Prepared by Sarah Leslie, IT Support Centre Espresso Steering Group - November 18 2010Launch slides 071010.ppt 1 Findus Italy e il business dei Frozen Foods Fabrizio Cannizzaro – Operations & IT Director Master MUM – Università La Sapienza 9 maggio 2011 Findus Italy
Il case study di Findus e le strategie di modern trade presentato da Fabrizio Cannizzaro, Findus Operation & IT Director.
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6/27/2011Prepared by Sarah Leslie, IT Support CentreEspresso Steering Group - November 18 2010Launch slides
071010.ppt
1
Findus Italy e
il business dei Frozen
Foods
Fabrizio Cannizzaro – Operations & IT Director
Master MUM – Università La Sapienza
9 maggio 2011
Findus Italy
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Agenda
• Who am I?
• Cenni storici su Findus
• Birds Eye Iglo Group
• Il mercato dei surgelati
• Il Modern Trade in Italia
• Findus e le sfide del mercato
• Il processo di S&OP (Sales & Operations Planning)
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Who am I?
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• Fabrizio Cannizzaro, 49 anni, sposato, 1 figlia stupenda (e
anche la moglie ma meno)
• Laurea in Economia alla Sapienza, Dottore commercialista e
revisore contabile
• 22 anni di Unilever in Finance, Customer Service, Logistic e
Sales in varie company e locations
• dal febbraio 2010 in Findus (in Permira dal 1 ottobre)
• Findus Operations & IT Director
• Amante del mare e del sole, scrittore dilettante e lettore
professionista, ex-tennista (medio-basso) prima dell’anca bionica
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Operations
& IT
Director
Cannizzaro
Customer
Service Mgr
Demand
Planning
Mgr
Logistic &
Cabinets
Mgr
Information
Tecnology
Mgr
CS Team 1
5 People
Asssitant
Logistic
1 People
Assistant
2 People
CS Team 2
4 People
CSTeam 3
5 People
Assistant
Cabinets
1 People
Copacker Mgr
Assistant
1 People
Sales
Systems
Mgr
Assistant
2 People
Order Tak&
CS Support Mgr
Order Taking3 People
CS Support3 People
Report toChairman
Mignini
Operations & IT Dept: Organisation chart
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Operations & IT Dept - Main Activities
Demand Planning
- S&Op process mngt (Sales forecast by sku’s, Forecast bias analysis)- Stock optimisation (monitoring, shelf life analysis)- Interface with Factory and Copackers (production plans and goods deployment)- Interface with Logistic and Procurement (copacker products)- Critical sku and obsolete mngt- Product Master data
Logistic&Cabinets
-Logistic LTA mngt (operational interface with Unilever Logistic)- Direct Findus contracts with 3PLP (primary network)- Network mngt (audits and stocks reconciliation) - External Benchmarking-Cabinets (capex, UL agreement, maintenance and scrapping, Interface between Findus&UL Sales Force/LSS)- Reporting,KPI analysis and issues management
Information Technology
- Unilever Contract
management (SLA control)
- Satellite systems (incident
mngt and troubleshooting)
- IT Budget control
- Interface with UL, Accenture
and External suppliers
- IT Development (Project
management)
- IT integration (Beig IT central
system)
- Help desk and users support
Order Taking
- Order taking (concessionaires and
centralised customers)
- System update & Reporting
- Logistic Issue management
CS Support
- Pricing
- Invoicing (Cumulative, Triangular,
Concessionaires, Reivocing)
- Goods returns and CN issuing
-Cash application
Customer Service teams
- Cash collection & credit mgt
(Overdue,Ageing analysis,
Dunning process,Bad debts
- Trade Contract mngt (Fiscal &
Legal interface, Contracts flow
and archiving, Rebates
monitoring, Promo invoice
bookeeping and control)
- Concessionaires & Agents
mngt (agreement,trade terms,
incentive plan)
-Claims mngt
Sales systems
- Project mngt
- Scouting on new
opportunities
- Master data management
-Sap SD & Idoc
-Sap BW (Sales Reporting per
customer, channel, salesrep)
- Satellite systems (SFA,
TPR, EDI & JiT)
- Help Desk to SF
- IT Training to sales force
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Cenni storici
Findus Italy … da Fruit INDUStry
a Marabou
a Nestlè
a Unilever
a BEIG/Permira
a …
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• il marchio Findus nasce in Svezia in una piccola
fabbrica della Fruit INDUStry (da cui deriva il nome)
• nel 1941 il marchio, insieme alla fabbrica è ceduto a
Marabou, un’azienda alimentare svedese, che nel 1945
lancia la prima gamma di prodotti surgelati a marchio
FINDUS
• nel 1962 Marabou vende il brand Findus alla Nestlè
che lo esporta in tutta Europa e che nel 1964 apre lo
stabilimento Italiano a Cisterna di Latina
• nel 1969 in Italia la Unilever, leader di mercato nei
gelati con Algida/Eldorado/Soave, entra nel mercato
surgelati con il brand IGLO che inizia velocemente a
erodere alla Findus (Nestlè) importanti quote di mercato
Le origini (1)
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• la Nestlè perde margini e profitti, il business Findus in
Italia non e’ sostenibile e quindi contatta Unilever per fare
business insieme
• nel 1970 si crea una Joint venture che produce e
commercializza gelati e surgelati (Findus+Iglo) di cui
Unilever detiene il 75% e Nestlè il 25%
• tale co-gestione finisce dopo poco tempo a seguito di
divergenze strategiche e Unilever ne diviene proprietaria
insieme al marchio Findus per la sola Italia mentre all’estero
rimane di proprietà Nestlè (ora è di Lyon Capital)
• all’estero Unilever opera nel mercato Frozen Foods con i
marchi IGLO e BIRDS EYE ai quali si aggiunge Findus per
l’Italia
Le origini (2)
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• nel 2006 Unilever vende il business dei surgelati al fondo
di Private Equity Permira Capital con l’eccezione di Findus
Italia (il fiore all’occhiello!)
• nel 2006 Permira fonda Birds Eye Iglo Group Limited,
leader di mercato nei surgelati in Europa
• nel 2010 Unilever Italia crea la newco Compagnia Surgelati
Italiana tramite spin-off del ramo surgelati a marchio Findus
•il 1 ottobre 2010 Permira perfeziona l’acquisto di C.S.I.
ricongiungendo di fatto in BEIG Group il business surgelati
Unilever del 2005
• ora cosa succedera?
I giorni nostri
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BIRDS EYE IGLO GROUP
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Competitive landscape
• BEIG Group produce un RSP, inclusa Findus Italy, pari a
circa 2,7 Miliardi di Euro (Italy 0,7m)
• è leader assoluto di mercato in Europa con una quota del
12% circa,
• ha quasi 3 volte la relative share del primo competitor
(Findus Group di Lyon Capital con il 4% circa)
• ha una grande solidità finanziaria facendo parte di
Permira Capital, un grande fondo di private equity (in Italia
possiede anche Marazzi, Valentino, Sisal e …)
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3131197700-73 project Boreas 26 oct 09 – Lbi-ec-Mil
... and the biggest 6 buying groups represent ~87%of Modern Trade sales
2.0%
1.4%
4.7%
1.2%
1.2%
2.5%
8.9%
2.9%
1.7%2.0%
9.1%
2.0%
7.1%7.9%
0%
5%
10%
15%
20%
25%
4.6%
14.9%
22.7%
Centrale
Italiana1
3.6%
8.2%
18.4%
Intermedia
902
16.3%
Sicon3
14.6%
GD plus4 Esselunga
Market share on gross Modern trade sales
(%)
ESD
Coop Auchan Conad Carrefou
r
Selex Esselunga
1. Despar, Il Gigante, Sigma 2. Pam, Bennet, Crai, Lombardini, Sun, Metro 3. Interdis, Rewe 4. Finiper, Agorà, CeDiGros, Alfi, Disco Verde, CDS, Cedi Market Source: AC Nielsen (Top for Top and GNLC)
2008 data
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Italian Modern Trade – Concentration level vs other european country
Edeka Group 28,3 Superunie 30,6 Tesco 31,4
Rewe Group 21,3 Albert Heijn 29,4 Asda 16,7
Markant 18,9 C1000 14,2 Sainsbury 16,2
Tengelmann 8,4 Super De Boer 7,3 Morrison 11,1
Metro 8,2 Somerfield 4,1
TOP 5 85,1 TOP 5 81,5 TOP 5 79,5
Carrefour Group 21,6 Carrefour Group 23,3
Coop Italia 14,9
Leclerc 15,9 Vassilopoulos 12,2
Conad 9,1
Intermarchè 11,8 Skalvenitis 10,4
Carrefour Group 8,9
Auchan 8,9 Spar Veropoulos 6,3
Gr. Auchan 8,2
Systeme U 8,5 Massoutis 5,7
Selex 7,9
TOP 5 66,7 TOP 5 57,9
TOP 5 49,0
ITALY
GREECEFRANCE
GERMANY HOLLAND UK
Carrefour 22,0
Mercadona 21,4
Eroski Group 11,7
ECI Group 8,2
Auchan Group 7,5
TOP 5 70,8
SPAIN
2008 data
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Italian Trade by Store Format
425
4193
45885
12059
8950
# pos
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In retail, FF is sold mainly through Supermarkets (52%)
Distribution
channels FF (M€)
1 208
FF
(%)
Food
(%) Rationale
Super1
Superette
Hyper
Discounter
Normal Trade
370
334
225
182
52.1
16.0
14.4
9.7
7.8
2 319 100 100
49.1
14.6
16.4
10.1
9.8
• Target of small families
• Limited offer of fresh /
superfresh products
• Easy for transportation
(close to home)
• Target of small families
• Wide offer of fresh /
superfresh products
• Far from home
• Good variety of FF
private label products
• Long-term food
purchases
• Limited offer of FF
products
• Short-term food
purchases1. Including both super <2 500 sm and >2 500 smSource: IRI data
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Findus has clear leadership in all channels but DiscountersFF market share by channel, %, 2009
Source: IRI data 2009
Findus strong leader both in Modern Trade fastest
growing channel (i.e. Super) and Normal Trade
3%5%
8%
30%
335
Hyper
53%
34%
1%
2%
7%
227
Discounter
16%
12%
1%4%
13%
52%
182
Normal trade
26%
Private Label
Aia
Mccain
Pizzoli
Cameo
Orogel
Nestle
Findus
0 20 40 60 80
0
100
20
80
60
100
22%
22%
25%
3%5%
8%
34%
1 222
Super
Other13%
2%5%
9%
42%
370
Superette
25%
40
Tot. Market
Share
Findus
avg: 34%
FF
Market
share
(%)
Total
2.3bn
34%
8%
5%
3%
2%
1%
1%
23%
24%
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Findus e le sfide del mercato
• la complessità
• il mondo esterno
• il consumatore
• il cliente ed i suoi marchi
• il circolo vizioso dei prezzi
• il punto di vendita
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C
I
S
T
E
R
N
A
70%
Secondary
Depots
(SDC)
3%
#180
Centralized
cold store
27%
#11
Concessionaires
cold stores
DIRECT
Primary
Depots
C
O
P
A
C
K
E
R
S
P.
D.
C.
9.700
34.000
3.900
tot.
47.600
Primary transportation
Secondary transportation
Delivery
PoSs
Le sfide : La complessità
FINDUS- Routes to Market
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Continuo riallineamento delle strutture interne per
fronteggiare i cambiamenti esterni
AVVIO
CENTRALIZZAZIONI
MASTER
PLAN 1
SUPER
CENTRALI
VERTICALIZZAZIONE
ACCOUNT
CHANNEL
COMPETITION
BUSINESS
ACCOUNT
BRAND
COMPETITION
sul PDV
CATEGORY
MANAGER
UFFICIO
ORDINI
CENTRALIZZAZIONI
> 50%
NUOVO MODELLO
NEGOZIALE
CUSTOMER
TEAM
PARTNERSHIP
LOGISTICA
MASTER
PLAN 2
ESTERNO
INTERNO
GLOBAL
CUSTOMERS
International
Team
Le sfide: adattarsi al mondo esterno
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• Visita più punti vendita
• Più frequentemente
• Spende meno per atto di acquisto
Aumenta la sua mobilità
Le sfide : il Consumatore
6,4
7,9
-4
-6,3
7,38,28,6
6,8
2,5
-4,9
-0,7-1,3
-3-2,2
ott-dic 07 nov 07-gen 08 dic 07 - feb 08 gen - mar 08 feb - apr 08 mar - mag 08 apr - giu 08
Numero scontrini
Valore medio scontrini
Variazio
ni %
Trim
estr
ali
vs a
nni pre
cedenti
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Le sfide : il Consumatore
Il consumatore è sempre più rivolto alla ricerca della convenienza:
83
78
78
50
51
49
% MOLTO + ABBASTANZAD’ACCORDO
% molto
Quando devo fare unacquisto, guardo, confrontoe chiedo molto più di prima
Cambio facilmente unamarca se è conveniente
Cambio facilmente un puntovendita se è conveniente
1,0
7,1
2,1
40,9
48,9
0
5
10
15
20
25
30
35
40
45
50
Per niente
d'accordo
Scarsamente in
accordo
Mediamente
d'accordo
Piuttosto
d'accordo
Perfettamente
d'accordo
Ultimamente sto molto più attenta quando vado a fare la spesa perché
cerco prodotti in promozione/ offerta speciale/ sottocosto
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Le sfide: Il Cliente e I suoi marchi
2004 2005 2006 2007 2008
11,9 12,1 12,3 12,7 13,4
Private Label – Quota Valore (I+S+LSP) +150 bps in 4 anni
+70 bps ultimo anno
Le Marche del Distributore
Stanno aumentando di quota ma ad un rate inferiore
A quanto accade nel resto d’Europa
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PLs presence is still low compared to other countries...
0%
10%
20%
30%
40%
50%
25.0%
23.7%
23.8%
26.2%25.5%
24.8%
12.2%
37.8%
27.4%26.8%
25.3%
12.4%
37.9%
28.7%
27.3%
26.3%
12.7%
41.1%
30.3%
28.7%
27.2%
13.4%
48.2%
33.4%
30.4%
28.0%
14.1%
UK
Spain
Germany
France
Italy
2003 2004
%
38.0%
2005 2006 2007 2008
38.0%
11.0%
MS ∆ p.p.
'03 – '08
10.2%
8.4%
3.1%
6.7%
4.2%
...And has a lower growth rate
Source: AC Nielsen
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Coop Italia - Focus on Private Label
Strong communication support:
folders, in store radio, TV, print
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Forte teatralizzazione nel PDV
in Super and Hyper markets;
Confronti diretti tra i prezzi di
branded and PL products
Coop Italia - Focus on Private Label
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Attacco diretto a market leaders
Coop Italia - Focus on Private Label
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Coop “price increase war”
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Esselunga reaction: via PL…
…. low prices….
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… and brands
• Reazione veloce alla situazione di mercato
• Volantini di “convenience” principalmente
con categorie traffic builder
• Forti promo su branded products
• Competizione diretta on PL price with
Coop Italia
50
Le sfide: il circolo vizioso dei prezzi
L’industria scarica l’aumento dei costi sui listini per mantenere il
livello di profittabilità
Il Trade non riesce a trasferire tali aumenti sul prezzo al consumo
Trade Margins Reduction
L’industria aumenta i prezzi di listino per mantenere il
livello di supporto sui propri prodotti da parte del trade
Il Trade fa pressione sull’industria per extra
risorse per compensare la perdita di margine
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Come si può contrastare il circolo vizioso dei prezzi
Per restare competitivi vs competitori diretti e marche
private dobbiamo:
Minimizzare gli aumenti di listino/intervenire
sull’equazione di valore
• riduzione dei costi
• miglioramento della qualità
• innovazione
Arbitraggi di risorse
• clienti/canale – dare priorità a quelli con maggiore ROI
• brand – privilegiare gli investimenti sui prodotti con maggiore
elasticità al prezzo
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Le sfide: vincere sul PdV
Per vincere in uno scenario difficile e competitivo
come quello attuale bisogna conquistare il
consumatore anche sul punto di vendita:
• con la migliore esposizione a scaffale (visibility)
• con la corretta proposizione di valore e convenienza
(affordability)
• con il giusto assortimento per store format (miglior
assortimento ovunque)
• con i nostri prodotti sempre disponibili sul pdv (no
OoS)
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Il processo di S&OP
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What is Sales & Operation Planning?
It is NOT a meeting!
It is a structured process to run, develop and grow the business
Integrated marketing, sales and supply planning, with clear understanding of their financial impact
Continuous management of change, issues & assumptions for the business
Ensure that the right people make the right decisions at the right time
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S&OP summary
Marketing Review Meeting
week 1 week 2 week 3 week 4
Create Volume Forecast
ACTIONS
Demand Review Meeting
MEETINGS
Agreed P&L Forecast
Decisions to drive the Business
Summary of Assumptions
Agreed Volume Forecast
Supply Reconciliation Meeting
Board Review Meeting
Cash Up - Create P&L Forecast
OUPUTS
Note: Updated Financial forecast in value provided to
Support Centre as part of monthly results, Friday of wk 1.
Timings suggested to hit this deadline
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Marketing Review Meeting
Objective To provide the detailed planning assumptions for the next 18 months by Product Group