ROUTE-TO-MARKET

Reach Your Market Demand 

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A Route-To-Market strategy defines how much you will sell, of what, where and how.
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Route-To-Market has a commercial intent and aims to define how to increase market shares, coverage and revenue. It then drives the supply chain strategy and the design of the network that will serve the future demand. The process requires balancing financial, operational, commercial and sustainability trade-offs. Route-to-Market helps all departments to develop a common enterprise vision where transformation projects, evolution milestones, investments, and returns projections are clearly defined.

How is demand volume and mix expected to evolve geographically? How will it be distributed across the country or the region? It first requires local market size, competition, local market shares and expected evolutions to be specified. Then the points of sales available in each area and how much of these should be covered to increase volumes are identified. This is called the Demand Landscape. Then comes the Supply Chain side of RTM: determining how the future demand will be served, through which distributors, via which warehouse, from which factory, for how much cost-to-serve. An optimum network is designed and a roadmap is drafted to formalise the different steps toward coverage expansion. CEL Route-To-Market program is an outside-in approach to define who and where your future customers will be and how you can be serving them most optimally.

 

Route-To-Market strategies are defined in 3 steps:

1

Future

Demand Landscape

 

Where & How Much

2

Future

Distribution Network

 

How

3

Transition

Roadmap

When & Who

 

Administrative areas

Climate conditions

​Demographics

Econometrics

Retail universe

...

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1/ DEMAND LANDSCAPE

Demographic and economic data, retail universe data, grocery sales data, homescan data, social media data,... These data sets are different layers of the same reality = your market. Demand landscape is about choosing the right data layers, adding a certain number of assumptions and creating a model where input variables (population, number of stores, consumption profiles etc.) can be transformed into volume of sales per category of products. Growth dynamics are used to project the demand evolution geographically. The finer the inputs the more precise the market sizing is at local level. We draw a precise picture of what the market landscape looks like today and what it can become in 2,3 or even 10 years.

Future Demand

Once we have a precise representation of the market, it's about deciding where to fight for market shares and where to set back. Other layers are added to the stack, primarily Cost-to-Serve and Competition data. ROI per region can then be defined - the cost of gaining new market shares allows the prioritisation of  areas between the easy wins and the long battles. We drive discussions and debates and we blend data and market insights so a market coverage expansion strategy can be defined together with Sales and Marketing team members. A consensus around the expected evolution of the demand landscape helps to align everyone around facts and figures and avoid blurry intents, too broad objectives and unsubstantiated growth targets.

Sales Territory Definition

To get practical a market landscape needs to be broken down into operational areas that can be allocated to distributors, local sales teams or commercial partners. Whether the landscape breakdown is initially made through administrative regions or through point-of-sales density, the intent is to draw geographical clusters that represent an even volume of sales and/or number of stores across the market. Then clusters can be merged, extended or adjusted to reflect the reality of the area (road connectivity, legacy distributor territory etc.). This exercise helps to mitigate the risk of high dependency on  specific distributors or partners in certain areas. Each cluster having a given demand volume evolution and a certain number of stores, the sales team can allocate clear territory to local managers and executives with a precise sales volume expectation over time.

 

Once your future demand is characterized, localized and quantified, it's time to address the question: How we are going to serve these demand points?

 

2/ NETWORK DESIGN

​This phase relies on advanced network simulation allowing the testing of  different logistic scenarios for each channel (modern trade, general trade, professional, and export), product category, product types (i.e. temperature, dangerous goods, bulk, cartons, etc). Check the Network Design page to know more about how we help you design your future optimum distribution network.

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3/ TRANSITION ROADMAP

Now we have a picture of the desired future, it's time to plan. This phase requires the involvement of Sales, Marketing, Finance, and Supply Chain so the sequence of actions are coordinated among functions. The transition roadmap integrates CAPEX limitations, capacity constraints, mobilization time, resource availability, outsourcing potential, etc. Macro tasks are defined and allocated to specific resources and timed over the transition period. Milestones and expected financial projections are formalised into a cross-functional transition roadmap.

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