Category Archives: Index

90. Pink Kit Kats v. Niche Domination

On January 18, 2018, after 10 years of development, Nestlé rolled out Ruby chocolate KitKats in Korea and Japan, just in time for Valentine’s day. The pink KitKat, made from the Ruby cocoa bean, will make premium a line that has hundreds of flavors, including green tea and strawberry.

Asian distributors will race to be the first to market with the pink KitKat, but will greater consumption of the KitKat line result? What sustainable edge and profits will distributors get from Nestlé’s promotional bribes and intensive distribution policy?

In 2018, how many U.S. distributors, across channels, will be also racing to market with new micro-niche products within non-exclusive lines? And, for what sustainable gains? Continue reading 90. Pink Kit Kats v. Niche Domination

89. Get an Outrageous ROI from Analytics

Most distributors have analytics software, but few get needle-moving results. So, what’s missing?

A case study’s best practices

A recent Harvard Business Review blog reported on a company that took their analytics seriously. Here’s what they did:

  • Created a separate analytics business unit that reported to the C-suite
  • Staffed the new business unit with young, ambitious people from outside the industry
  • Charged the team with achieving at least a 10X ROI for the unit’s budget cost
  • Targeted customer-centric results for the operating companies
  • Trained the operating companies to take over and improve upon the new initiatives
  • Incented both the analytics and operating folks with the same profit increases

The first year the new unit hit 46X their budget. Now, with all the operating companies begging for the no-charge analytics help, the unit hit 106X in year two and 200X in year three. Continue reading 89. Get an Outrageous ROI from Analytics

88. Amazon Promotes Long-Tail Spending Cost Reduction: You Can Beat Them

According to an Amazon Business (AMZ-BIZ) funded study, reported in the December 2017 issue of Spend Matters magazine, procurement pros increasingly want to reduce long-tail spending costs.

The big-spend items have been automated and integrated, but the pesky bottom 35% of items eat 1% of the spend dollars, take over 50% of purchasing’s time, and are a pain for everyone to easily buy. Corporate citizens want Amazon’s B2C shopping experience in their B2B world, but purchasing wants controls. So, AMZ-BIZ continues to invent cloud tools for purchasing control and analytics and continues to win sales.   Continue reading 88. Amazon Promotes Long-Tail Spending Cost Reduction: You Can Beat Them

86. Use 2017’s Top 10 Management Topics For Your Own Roadmap

McKinsey consulting cranks out lots of quality business research. I noticed that their “Top 10 Insights of 2017” blog has three interrelated themes: successful companies have effective CEOs, are creating innovative cultures and are becoming digitally effective enterprises.

Reduce generalities and create your action scripts

Generalized advice can ring true, but what vision do you want to share with your employees tomorrow? How will you package your unique and best opportunities into an enthralling plan? CEOs must at least:

  1. Define the uncomfortable truths about the business in concrete terms based on data
    Offer a vision that will benefit all stakeholder groups, What’s in it for We!
    Shrink the vision to discrete plans (or scripts) that everyone can understand and not fear
  2. Create sustainable levels of urgency and action, while steadily cheering and publicizing every small win

Continue reading 86. Use 2017’s Top 10 Management Topics For Your Own Roadmap

85. The Science of Small-Win Innovation

Inertia is the enemy of innovation. We all know how hard it is to change personal habits. Even New Year’s resolutions last, on average, only 15 days. And, replacing weak corporate habits with robust ones can also be daunting.

What are small wins?

Small wins are progress points on the way to a goal, or mini-accomplishments that add up to a big goal. The big goal can be vague and intimidating, like “Prepare the house creatively for holiday guests”. To tackle it, the science of small wins suggests:

  • Start anywhere and then the bigger vision and innovation will emerge and crystalize
  • See how many 2-minute, clean-up actions you can do in a row
  • Say “YES!” upon each completion for a dopamine spritz to the brain
  • State out loud what your next deliberate action will be
  • Just keep moving
  • Spontaneous micro-choices spark accidental micro-innovations, and some take off!
  • Little chunks done in one room add to a room that is done well-enough
  • Move to the next room
  • Repeat
  • Working with a teammate multiplies both joy and grit

Continue reading 85. The Science of Small-Win Innovation

84. Kickstart Your Innovation: Knock Off Amazon’s Pitch Process

Distributors sell products and react to supplier and customer needs. Innovation is not their long suit. But digital channel disruption is here, and if a company doesn’t change as fast or faster than its environment, its future is grim.

To boost your company’s innovation game, why not borrow and simplify a key technique from Amazon.

2004: Jeff Bezos kills PowerPoint presentations       

Over a decade ago, Bezos concluded that PowerPoint presentations should be banned. He felt that presenters were speaking extemporaneously from their bullet points, their communication lacked clarity, breadth and depth, and attendees were confused. The big-boss, data-free opinions always won, unswayed by a PowerPoint, and time was wasted.

The new meeting format began with everyone reading a document (6 pages max.) thoroughly prepared by whomever wanted to champion something new. These narratives were not assigned in advanced to be read unevenly and forgetfully. At the meeting, each participant was expected to take the time (5 to 30 minutes) to thoroughly read and digest the information at their own speed and in their own way.

Next, the presenter(s) answered attendees’ questions, as if they were defending a dissertation. The subsequent page-by-page review evoked questions and discussions that were informed and focused and contention was substantive, not political bickering.  After the reading, all attendees had a fresh, shared, in-depth understanding of the topic.

The presenter took notes, and sometimes asked for a re-do, usually to get more data. If the presenter pressed for a decision, the only responses allowed were: “Yes”, “No”, or “I disagree and commit”.

So, why is this better?

The innovation presenter, or team, is forced to do deep research and present clear thinking. The document should stand on its own and include:

  • An imaginary future PR statement describing a successful outcome for all stakeholders
  • Sufficient research facts
  • A proposed roadmap with assumptions, experiments, milestones and required resources
  • All anticipated questions from all potential stakeholders with well thought-through answers

This process levels the playing field between introverted champions of innovation and glib, popular politicians. The process simply delivers better collaborative plans and decisions with less total time invested.

Conclusions

Writing these narratives is tough. Most distributors don’t have MBAs adept at writing or reading such documents. So, simplify the process to fit your firm. You can perform an experiment. Go to  https://merrifieldact2.com/exhibits/. Skim the “scripts” (Exhibits 60 – 63) and pick one to read with your team. Then, discuss, improve and possibly pursue with funding from a champion.