HOW TO IMPLEMENT RED

CONTENTS
FOREWORD -------------------------------------------------------------Page 2 SECTION I – OVERVIEW OF RETAIL EXECUTION-------Pages 3-7 SECTION II – PREREQUISITES TO RED-----------------------Pages 8-10 SECTION III- UNDERSTAND THE RED PROCESS----------Pages 11-28 SECTION IV- IMPLEMENT A RED PILOT MARKET------Pages 29-36 SECTION V – ASSESS THE RED PILOT MARKET---------Pages 37-38 SECTION VI – IMPLEMENT RED-------------------------------Pages 39-40 SUMMARY-------------------------------------------------------------Pages 41-43
Note: The Customer Portal website is identified throughout this document as a source of additional information on Retail Execution and the RED process. Customer Portal is the Customer and Commercial Leadership Website for The Coca-Cola Company. If you do not already have a User ID and Password for the Customer Portal website, you should acquire both before beginning your RED journey.

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FOREWORD
Background RED (Right Execution Daily) was initiated in Buenos Aires, Argentina in the late 1990’s to address a changing and challenging marketplace. New beverage competitors were entering the market, the non-alcoholic beverage portfolio was rapidly expanding, the BPPC for the KO business system was changing frequently and new channels and customers were emerging. The local management team for TCCC and the bottler had an aligned vision of creating an enhanced retail execution system that would become a strategic marketing asset to apply against this challenging marketplace. This retail execution system would be: *Focused on retail execution actions linked to business strategies. *Quick, agile and driven by a mental model of a picture of success for each point of purchase. *Guided by a performance management system based on frequent and in depth assessment of actual retail execution conditions compared to merchandising standards (Pictures of Success). RED evolved over the next few years to more than meet the expectations of the local KO business system. It became apparent that RED was a process with applicability to any market and new implementations began, first in Latin America and then on all continents. Today there are RED implementations in over twenty countries with new markets coming online almost monthly. Purpose of this Document The purpose of this document is to provide the concepts, methodologies and directions for a self guided implementation of the RED process, i.e., “How to Implement RED”.

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SECTION I – OVERVIEW OF RETAIL EXECUTION

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OVERVIEW OF RETAIL EXECUTION

BASIC RETAIL EXECUTION CONCEPTS
What is Retail Execution? Retail Execution is often viewed as shelf stocking, secondary display construction and the placement of point of purchase advertising material. Though partially accurate, this view limits the potential for Retail Execution to become a true marketing asset for the KO business system. A strategic view of Retail Execution can be developed through a focus on the key constituencies that are served by the Retail Execution process. Using this strategic view, Retail Execution can be defined by the following: *The subset of capabilities required to create an optimal purchase experience for consumers/purchasers of TCCC brands *The linkage that translates strategies (consumer/purchaser and customer) into actual, tangible marketplace activities. What are the basic principles of Retail Execution? There are six basic principles of Retail Execution that apply to all markets, all customer service structures and all route to market options; 1. Retail Execution always starts with a clear view of the picture of success for each point of purchase. 2. Retail Execution requires effective ways to influence execution at the point of purchase regardless of the route to market 3. Retail Execution requires rewards and recognition throughout the value chain to optimize achievement of the pictures of success. 4. Retail Execution must have measurement /tracking systems and course correcting mechanisms. 5. Retail Execution management requires sales routines and reports that are diligently maintained at all organizational levels. 6. Retail Execution must always follow a disciplined process to ensure consistency.
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OVERVIEW OF RETAIL EXECUTION THE EVOLUTION OF RETAIL EXECUTION MANAGEMENT The Traditional Retail Execution Management Process: The traditional retail execution management process was a static process that focused on the following four components: 1.SALES EXECUTION ROUTINES AND TRAINING 3. Sales Execution Routines could be the sole responsibility of Sales Supervisors.SEGMENTED MERCHANDISING STANDARDS 4.TRACKING EXECUTION VERSUS MERCHANDISING STANDARDS The four components were viewed as related retail execution activities but most of the times were under the responsibility of associates in different organizational units and/or different locations. merchandising standards could be developed by the Channel Marketing team at TCCC. Sales routines many times primarily focused on calls per day rather than achieving the bundle of merchandising Classified . These standards became more of a wish list than a near term goal.Internal use 5 . The traditional Retail Execution process resulted in shortfalls that could impair progress. Tracking of Execution could be the responsibility of TCCC Market Research executed with a bimonthly report from Nielsen and Learning from Analysis could be an ad hoc activity of TCCC or the bottler.LEARNING FROM ANALYSIS OF RETAIL EXECUTION RESULTS 2. For example. Merchandising standards many times were well beyond the current execution capabilities of the organization.

The RED Retail Execution Management Process The innovation in the Retail Execution management was the change to a dynamic process. Retail Execution Tracking reports from syndicated research such as Nielsen were not timely or actionable and only addressed a partial listing of merchandising standards. Clearly.SALES EXECUTION ROUTINES AND TRAINING 3. THE PICTURE OF SUCCESS 4. Retail Execution management needed to evolve from this static process if Retail Execution was to become a strategic marketing asset for the Coca-Cola business system.TRACKING EXECUTION VERSUS Classified . where the four components were functionally connected and managed for continuous improvement. Only very limited Analysis of Retail Execution to develop learning was done given the difficulty of connecting Tracking Reports that are not timely or actionable with results.TRACKING EXECUTION VERSUS MERCHANDISING STANDARDS 3.LEARNING FROM ANALYSIS OF RETAIL EXECUTION RESULTS 2. RED.OVERVIEW OF RETAIL EXECUTION standards in all outlets.Internal use MERCHANDISING STANDARDS 6 .

First. the consumer/purchaser and the customer. The RED Retail Execution management process resulted in significant improvements to each component. underpinning the evolution to the RED process are the reporting and communications routines that continually link the four Retail Execution components. RED is driven from a fundamental belief that Retail Execution begins and ends with the Picture of Success in each outlet.OVERVIEW OF RETAIL EXECUTION The dynamic RED process made the output of each component the input for the following component. The Retail Execution Tracking System became a credible current assessment of actual retail execution conditions contrasted to merchandising standards. The key learning from the RED process are threefold. A detailed explanation of the RED is in Section III of this document –“Understand the RED Process”. continuous improvement. The bundle of merchandising standards now termed The Picture of Success for each outlet were maintained to be demanding but achievable as the execution capabilities of the sales organization improved. not to catch them failing.Internal use 7 . Sales routines became primarily focused on addressing gaps versus merchandising standards for each customer. Second. Lastly. This mental model change is so important that the terminology was changed from Merchandising Standards to the Picture of Success. This functional connection of the four components is the critical evolutionary step toward a continuous improvement Retail Execution management process. This is where we engage our two critical constituencies. The RED process elevated the importance of Merchandising Standards from a wish list orientation to the essential foundation of Retail Execution. Improvements in Retail Execution therefore require a commitment to maintain the process over time. guiding continuous improvement with The Pictures of Success and began identifying retail executions deserving recognition and reward. Lastly. Retail Execution Analysis began identifying high value execution components. Third. by definition. is an on going effort. RED is primarily a tool to help salesmen succeed. Classified . RED is not a one time project.

SECTION II – PREREQUISITES TO RED Classified .Internal use 8 .

the scope and depth of Market Segmentation can advance as the capabilities of the sales organization improve.Internal use 9 . shopper behavior profiles.ko.PREREQUISITES TO RED Outlet Level Data The first prerequisite to RED is Outlet Level Data provided by the transactional data base. For more information on Market Segmentation go to the CUSTOMER PORTAL website to Segmented Execution to RED Immersion Training Materials to Training 130. customer importance and level of customer collaboration. The most important consideration during completion or updating Market Segmentation prior to RED is to avoid adding complexities that are beyond the current capabilities of the sales organization. Most RED implementations start with 4 to 5 Market Segments and very basic consumer segmentation such as SEL (Socio-Economic Levels) and purchase occasions. or just click on the link below: http://apps. Market Segmentation is the subdivision of the customer universe into clusters that allow us to design Pictures of Success that optimize our opportunities for transactions and revenue at each point of purchase. Learning and Applications are impossible. Long term. Without Outlet Level Data the basic RED processes such as segmentation and Analysis. Market Segmentation began with the division of the market into Trade Channels where the only segmentation criteria was retailing format.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_076273? ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273 Classified . Markets without Outlet Level Data should solve this issue before proceeding to implement RED. Market Segmentation has evolved today to include segmentation criteria based on some combination of retailing profiles. Market Segmentation Completing or updating the Market Segmentation plan is the second prerequisite before beginning RED. A major input for long term advancement of Market Segmentation is the understanding of shopper profiles and behaviors provided by Shopper Marketing.

Internal use 10 . it is important to avoid adding OBPPC complexities prior to implementing RED. The Route to Market (RTM) System Any changes contemplated for the RTM System should be completed prior to implementation of the RED process.PREREQUISITES TO RED The OBPPC Plan Your Occasion Brand Package Pricing Channel plan should also be updated before beginning the RED process. Next. verify that the OBPPC plan accurately reflects the current SKU’s in your portfolio and the pricing that should be in the market for each market segment. No changes to the RTM system should take place during the implementation of RED. Most RED implementations begin with a focus on 3 to 5 key SKU’s in each Market Segment. As in Market Segmentation. Classified . The first step is to format this plan around the Market Segmentation Plan that has just been completed or updated.

Internal use 11 .SECTION III – UNDERSTAND THE RED PROCESS Classified .

Before beginning with the first component. The RED process is designed to help him succeed through training. reports and coaching available to help the salesman close the gaps. The Picture of Success translates brand strategies.Internal use 12 . The Picture of Success is a view of all the key elements at the point of purchase which influence a shopper to buy a KO brand. timely and actionable information. THE PICTURE OF SUCCESS The Picture of Success is the nucleus of the RED process. merchandising strategies and customer strategies into a visual image of our retail execution for each market segment. Lastly. Knowledge of the gaps versus the Pictures of Success is provided by a Retail Execution Tracking System that provides credible. Maintaining this balance between objectives and capabilities requires that we always know the gaps in the Pictures of Success and have sales routines. the key associate in the RED process is the salesman. coaching. This means we balance Retail Execution objectives that become more challenging over time with Retail Execution capabilities that are improving over time. occasion based strategies. support materials. the purchaser/consumer of our brands and the retailer. We target these Retail Execution objectives (The Pictures of Success) to be 80% attainable by current Retail Execution capabilities at any point in time. The Picture of Success is where we engage the two constituencies who are critical to our business. OBPPC strategies. RED is a continual improvement process. Classified .UNDERSTAND THE RED PROCESS THE FOUR COMPONENTS OF THE RED PROCESS This document will now move to an explanation of the components and mechanisms of the RED process. 1. let’s take a moment to review the operating characteristics of the RED process. recognition and incentives.

at minimum you should have a higher share of commercial beverage Points of Connection than you have share of market. *The retail price for our SKU assortment. What are the major elements that should be in each POS? 2. coolers or vending equipment. do not position it next to other category participants. Guidelines for planning adjacencies include the following examples. *A measure of retail inventory SOVI. *Points of Shopper Connection The locations in the shopper traffic patterns where we target ambient or cold availability of our brands. If the KO brand is not the category leader. There are only minor variances in measures and terminology. Points of Connection can be freestanding secondary displays. share of retail inventory is the most widely used measure. The elements include: *The brand & package SKU assortment to be available as detailed in your OBPPC Plan or Annual Customer Agreement. position it next to the leader. if the KO brand is the category leader. When establishing your goal for total Points of Connection.Internal use 13 . This pricing usually comes from the OBPPC Plan which should have a high-low pricing range for each SKU. *The retail positioning of the assortment Commonly call adjacencies referring to which KO SKU. This measure is the total number of primary package fronts for KO brands divided by the total number of primary package fronts for the category.UNDERSTAND THE RED PROCESS This document will address three questions that must be answered for effective development of Pictures of Success (POS): 1. What inputs help define these POS elements? 3. The targeted location of each Point of Connection is specified in The Picture of Success usually with an overview map of a typical market segment outlet. competitive SKU or other non-beverage product each should adjoin. What is expected evolution of POS in a market? The major elements of a Picture of Success The major elements of the Picture of Success for each market segment are relatively similar in the markets that have already implemented RED. Classified . This pricing range is calculated using our net wholesale pricing and the margin or markup commonly used by the segment/customer. merchandising racks.

it is important to measure and maintain the exclusivity and Points of Connection even for a small outlet. this initial reflection might suggest these elements apply to supermarkets but not to an immediate consumption kiosk. (What we do to inspire the shopper about the category and our brands. Back to the example of a supermarket and an IC kiosk. (Call to action. On further reflection. Note: Go to the CUSTOMER PORTAL website to Segmented Execution to RED Immersion Training file 040 for more information.UNDERSTAND THE RED PROCESS *Activation – (1) The shopper messaging we target to the market segment and to each Point of Connection. or just click on the link below: http://apps. The details and complexities of the Pictures of Success will vary across Market Segments but all elements of the Pictures of Success should be developed for all Market Segments.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_07 6273? ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273 Classified . brand building or promotional messaging with the targeted location for each message) and (2) The shopper engagement actions and activities we execute. It is possible that Commercial Condition elements from these agreements are more comprehensive than the Picture of Success elements for other customers in the same Market Segment.Internal use 14 . For example. it should become apparent that all elements apply to all Market Segments.ko. Contrasting the Pictures of Success elements across Market Segments: An initial reflection on the above Picture of Success elements might suggest that all elements cannot apply to all market segments. even if the kiosk is exclusive (100% SOVI) and has only a single door cooler plus a hanging merchandising rack for a take home SKU (2 Points of Connection). how we help the shopper navigate the store and the information we provide about the category and our brands) The above six elements of the Pictures of Success must reflect all corresponding Commercial Conditions elements that are part of Annual Customer Agreements or Annual Key Account plans.

R. PRINCIPLES *RESEARCH (M. *TRANSACTIONAL DATA BASE SOVI POINTS OF CONNECTION *OCCASION BASED STRATEGY *RESEARCH (M.O.O. EQUIP. PLAN *OBPPC PLAN *BRAND PLANS *P.) *MERCH.O.Internal use 15 .R.O.P.T.O.) *CUSTOMER CATEGORY STRATEGIES RETAIL PRICE RANGE ACTIVATION Classified .UNDERSTAND THE RED PROCESS Inputs that help define Picture of Success elements: PICTURE OF SUCCESS ELEMENTS ASSORTMENT INPUT SOURCE *OBPPC PLAN *CUSTOMER AGREEMENTS ADJACENCIES *BRAND MERCHANDISING STRATEGIES *RETAIL PLANOGRAMS *SHARE OF MARKET RSCH.T.

http://apps.Internal use 16 . or just click on the link below:. capacities and systems that comprise the process are kept in balance as the process improves. The RED team that rolled the process out in much of Latin America has a favorite saying related to this topic. Note: Go to CUSTOMER PORTAL website and SEARCH “Picture of Success”. Overall SOVI. Most markets that have implemented RED started with only the very basics of the Picture of Success (3-5 Key SKU’s. and Points of Connection with emphasis on equipment) for 4 to 5 market segments. then to expanded Picture of Success component measurements.ko. open RED Immersion Training file 040 and review slide 8 for more information on planning the evolution of The Picture of Success. This topic will be further addressed during Section IV “Getting Started with RED through Implementation of a Pilot Market.com/customerportal/CommercialLeadership/PlanningforMarketSuccess/Ho wTo/index. A continuous improvement process only works when the capabilities. and grow fast”. Overview of SM Insights and Shopper Knowledge-Three tools” for more information on inputs. think big. or just click on the link below: http://apps.UNDERSTAND THE RED PROCESS NOTE: Go to CUSTOMER PORTAL website to “Shopper Merchandising & Marketing” to “Overview of Shopper Research Tools” to “Key Pillars of Shopper Knowledge. Pricing.htm The expected evolution of The Picture of Success in a market: When planning the evolution of The Picture of Success in a market implementing RED.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_07 6273? ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273 Classified .” The evolution of The Picture of Success over time generally moves first to more market segments and more outlets. the key consideration is to remember that RED is a continuous improvement process. “Start small.

UNDERSTAND THE RED PROCESS 2. The continuous priority focus of a sales organization on The Picture of Success is essential to maximize the value and volume growth of KO brands. 2. there are other sales routines and reports beyond those that relate directly to the Picture of Success. RTM system or use of third parties. This section of the RED process. training. Are these routines and reports focused on the priority actions that will produce the planned value and volume growth for our brands? 2. Sales Execution. Are the routines and reports supported with feedback. The overarching objective of the RED process is execution of The Picture of Success in all outlets. coaching.Internal use 17 . 1. follow-up. The question for management is threefold. These other routines and reports will vary based on the Customer Service System structure and the market and will not be addressed in this document. The RED process is applicable to any sales organization regardless of Customer Service System. Are these routines and reports executed with the discipline required of a world class sales team? 3. Classified . The RED process is based on two strongly held beliefs. Clearly. SALES EXECUTION Managing Sales Execution from a RED Perspective: All sales organizations have sales routines and reports that guide the execution of their duties and responsibilities in the market. 1. recognition and rewards required for continuous improvement? The goal of the RED process is have management be able to answer yes to all three questions. will concentrate on how a sales organization achieves the Picture of Success through disciplined management of routines and reports.

Water for October and for Coca-Cola in December.UNDERSTAND THE RED PROCESS The Retail Execution Annual Plan: The first input required for defining Sales Routines and Reports is The Retail Execution Annual Plan.Internal use 18 . nightclubs. Custom POP materials to be available for Hypers & Supers. Sell in kits to be distributed week of May 4. hypers & supers. Classified . Mom & Pops. Priority channels are bars. This plan should detail the annual objectives. The Annual Retail Execution Plan should be divided into Quarterly Calendars for presentation to all associates in the sales department at the beginning of each quarter. strategies and planned actions for Retail Execution. reports. training. July & August. Channel Action PlanImplement a channel emphasis during April & May to launch new 600 ml PET. and on premise channels. This plan should be presented to all sales management during Business Plan preparation so they can incorporate the RE plan into their plans for the next years sales routines. Channel key metrics-Increase cold SOVI +20% and GP +12%. Channel Goal-Increase channel share of value for KO brands from 45% to 50%. place 1500 new open front coolers and 500 single door GDM to be placed as second cooler. Brand Marketing Calendars (Example) Brand introduction for new energy drink in 250 & 330 ml cans scheduled for February. Quarterly presentations allow for plan adjustments that are inevitable. recognition and rewards. The Retail Execution Annual Plan should include: Channel Plans: (Example) On Premise: Channel Role-Main source of system profit and consumption frequency driver. coaching. Brand emphasis periods for Zero’s scheduled for September. Consumer Promotion Plans (Example) Execute World Cup Promotion during June. feedback. Kick off sales meeting scheduled for May 1. maintain some confidentiality of the annual plan and keep the amount of information being communicated to the salesman digestible.

E.E. Meeting Sales Supervisor and Salesman Monthly Monthly Best Practice Training Meeting Customer R..Priorites Daily Things to Do List Classified . QTR Sales Route R.Internal use 19 . Sales Route R. Sales Team.. Priorities Planning.E.E. The Picture of Sales Mgr. Scorecard. (Note that this example excludes routines and reports such as Route P&L’s. Priorities Meeting Morning Sales Meeting Sales Supervisor and Salesman Sales Supervisor and Salesman Sales Supervisor and Salesman Weekly Weekly Daily QTR R. Analysis Reports Picture of Success non-conformity Report. Sales Route Monthly R. Following is an example of Sales Routines and Reports related to Retail Execution. Monthly Picture of Success. Plan Results by Sales Center. Plan Results Reports Best Practice Documents Monthly Sales Route R. Sales Group. Overtime Reports. etc) ROUTINE ORGANIZATIONAL TIMING UNIT QTR Retail Execution All Sales Associates Quarterly Plan Presentation Review Prior to QTR Retail Execution Results All Sales Management Quarterly ASSOCIATED REPORTS None Monthly Validation of Sales Center Mgr. Sales Success Meeting Supervisor Mkt Mgr. Customer Returns.E.UNDERSTAND THE RED PROCESS Translating the Annual Retail Execution Plan & Pictures of Success into Sales Routines and Reports: Sales Routines and Reports guide the disciplined actions that turn plans into results.E.

Coaching should be a positive motivation and performance enhancer.ko. Capabilities and Coaching go to the CUSTOMER PORTAL website to Segmented Execution to RED Immersion Training Materials to Training 120. It is as important to identify and eliminate the Sales Routines and Reports that are no longer needed. If no one is using a Sales Report. find solutions that will help the salesman close the gap. Coaching sessions should generally address only one R. gap. Coaching requires specific training sessions for supervisors. Replace routines and reports.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_07 6273? ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273 Classified . Coaching sessions are where the supervisor and salesman identify gaps in Retail Execution performance and. don’t just add routines and reports The RED process will always identify a number of new Sales Routines and Reports that are required for a successful RED implementation. Coaching can take place in the Sales Center or on the route. eliminate the report and the routines supporting the report. more importantly.Internal use 20 . the most important RED Sales Routine The most important RED Sales Routine is the coaching provided from the Sales Supervisor to the Salesman. Coaching is the Sales Supervisor’s most important responsibility.UNDERSTAND THE RED PROCESS Coaching. or just click on the link below: http://apps.E. Note: For more information Sales Execution Routines.

Retail Execution Rewards programs add a gift or bonus to the recognition.ko. Even though there are successful RED implementations that do not use Execution Based Incentives. Note: For more information on Execution Based Incentives go to the CUSTOMER PORTAL website to Segmented Execution to RED Immersion Training Materials to Training 110. Variable Compensation Systems require well functioning Retail Execution standards (Pictures of Success) and a credible. most implementations do employ recognition. Variable Compensation Systems base some part of the Salesman’s compensation on his Retail Execution performance. Company Publications or on Sales Room Bulletin Boards. or just click on the link below: http://apps.Internal use 21 . The only caution is to always tie recognition and rewards to improvement in an individual’s or team’s performance versus measurable objectives. rewards and some type of variable compensation system. Most Variable Compensation Systems start with a high percentage allocated to fixed compensation and move over time to a heavier weight of variable compensation. Usually his compensation in this system is part fixed (Hourly.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_07 6273? ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273 Classified . Daily or Monthly salary) combined with a part that is tied to Retail Execution performance. comprehensive and timely Retail Execution Tracking System.UNDERSTAND THE RED PROCESS Execution Based Incentives Execution based incentives are generally classified in one of the three following approaches: *Retail Execution Recognition programs *Retail Execution Reward programs *Variable Compensation systems Retail Execution Recognition programs recognize well performing individuals or teams in Sales Meetings.

One means of keeping the cost under control is to avoid measurement creep. There cannot be a RED process without a comprehensive. a non-compliance report completed and forwarded to supervisor & salesman. The survey cycle is generally viewed as one month. The RED Administrative manager should control this creep by keeping only the Picture of Success elements in the survey.) The survey sample should include a minimum number (6 to 10) of surveyed outlets per salesman during the monthly cycle. The survey cycle should never exceed the correction cycle. and the salesman to report action and results to his supervisor. RETAIL EXECUTION TRACKING The rationale for a Retail Execution Tracking System is the old business management adage “You can’t manage what you don’t measure”. corrective retail execution action to be taken.Internal use 22 . The Retail Execution Tracking System should maintain a significant balance of “same Outlets” month to month to optimize results from RED. the sample should be comprised of a statistically valid number of outlets from each market segment for the survey cycle. credible and timely Retail Execution Tracking System. What should the Retail Execution Tracking System measure? The Retail Execution Tracking System should be singularly focused on measuring compliance with the Picture of Success elements that have been established for each market segment. The tracking system should always avoid inclusion of items that do not have standards or items that cannot be addressed with corrective actions. Most RED implementations more heavily sample the market segments that deliver high value and volume from individual outlets and increase the frequency of surveys for these outlets. Following is an example of survey sample and frequency: Classified . (The time it takes for the survey to be completed and processed. How should the survey sample and frequency be determined? At minimum. Cost of the Retail Execution Tracking System is a consideration in all RED implementations.UNDERSTAND THE RED PROCESS 3.

The disadvantage of third party usage is a higher potential for loss of confidence and tracking credibility. Depending on labor costs in the market. There are advantages and disadvantages to each option.UNDERSTAND THE RED PROCESS Example of Setting Sample Size and Frequency for a Market Customer Classification % of Volume % of Stores Sample & Frequency Diamond Gold 54% 19% 3% 10% 100% in Sample 100% Surveyed Monthly 100% in Sample 33% Surveyed Monthly Sampled and Surveyed to a 95% Confidence level for each monthly survey cycle. Silver 24% 46% Bronze 3% 41% Who should conduct the Tracking Surveys? The options are either to use associates who are part of the bottler’s organization or to use a third party to complete the surveys.Internal use 23 . particularly in the early phases of implementation. either option can be the most cost effective. it becomes more and more impractical to run a manual survey process. Electronic survey data entry will expedite survey data processing and reduce processing errors. Keeping the Tracking System in house can Customer Portal implementation. make quality control easier and allow surveyors to have a career path that leads to entry level sales positions. as the size of the survey increases. Additionally. Should the surveys be collected manually or electronically? You do need handhelds to run a Retail Execution Tracking System. A manual system can be managed. Using third parties for the surveys has the advantages of less administrative work for the bottler and giving more flexibility in hiring and firing surveyors. Classified . The disadvantages are higher administrative work loads and the potential for salesman-surveyor collusion.

How much will a Retail Execution Tracking System Cost? The major cost contributor to the Tracking System is labor. or just click on the links below: http://apps. The cost of the Retail Execution Tracking System will be a significant expense in most markets but the tracking system is an absolutely critical component of all RED implementations. salesmen and sales supervisors be trained together prior to implementing the Retail Execution Tracking System.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_07 6273? ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273 RED IT release information can be found by going to CUSTOMER PORTAL to Segmented Execution to Releases. You can estimate the cost of your Retail Execution Tracking System using The Survey Team Cost Simulator which is available on the CUSTOMER PORTAL website.UNDERSTAND THE RED PROCESS There has been success with a variety of handhelds in RED implementation markets. There are Training Program Templates and example Training Programs on the CUSTOMER PORTAL website.ko.ko. PPC. or by clicking on the link below: http://apps. Prior RED implementations have proven that the improved NSR results have more than offset the cost of the Retail Execution Tracking System. There is also proprietary software developed by TCCC for processing. salesmen and supervisors. your planned survey sample and frequency will allow you project the cost of your Retail Execution Tracking System per survey cycle. the look of your market and the terminologies of your market. Using this cost per survey. (PALM. The Retail Execution Tracking System must have consistency and credibility before RED is implemented. What training should be considered for a Retail Execution Tracking System? It is very important that surveyors. other PDA). The actual training program you use must be locally developed to include your Pictures of Success.com/customerportal/CommercialLeadership/ExecutingtoWin/HowTo/Right ExecutionDailyRED/T_076181 Classified . Contact your local TCCC IT department for support with your RED implementation. Note: For more information on Retail Execution Tracking Systems go to the CUSTOMER PORTAL website to Segmented Execution to Immersion Training Materials to Training 050 and Training 100. This simulator will give you an estimate of the cost per survey for your proposed system.Internal use 24 . The typical training program is a one day session followed by trial surveys being executed by surveyors.

Even after adding additional surveyors. During this phase.Internal use 25 . it is important to always keep Sales Supervisors.UNDERSTAND THE RED PROCESS The Evolution of a Retail Execution Tracking System Retail Execution Tracking Systems evolve to different audit structures and different survey processes as RED goes through continuous improvement cycles. The decision to go third party or remain in house is based on the advantages and disadvantages covered on page 23. Salesmen and other Sales and Marketing associates involved in the survey process. These additional surveyors can be third parties or additional internal RED staffing. The actual audit structure can also change based on the opportunities available within a Market Segment or the competitive pressure on a Market Segment. The initial survey process begins with a focus only on 4 to 6 Market Segments and 3 to 5 key SKU’s. Classified . In either case. surveying is done by Sales Supervisors. the decision can be taken to increase the percentage of the Market Segment that is surveyed during each survey cycle. Salesmen and other Sales and Marketing associates. This builds consistency of survey results and underpins the credibility of the tracking system. It becomes necessary to add surveyors to the tracking system as the number of required surveys per survey cycle expands and the Picture of Success measurements expand.

Sales Center. This Analysis. Managerial Reports include a variety of reports on monthly and YTD performance and progress with retail execution.Internal use 26 . Ad hoc Reports can be produced for almost any retail execution activity.UNDERSTAND THE RED PROCESS 4. Picture of Success component. Coverage Reports for new package introductions. The major outputs of the function are: *Develop non-conformity. Retail Execution Reports: The Analysis. Learning and Applications function has a primary responsibility to develop and forward reports generated from the database created by the Retail Execution Tracking System. Sales Supervisor and geography. volume and profitability results. Classified . Turnaround time from the survey to report should be as fast as possible to enhance corrective actions. The day of the actual survey is indicated by each customer. Examples of Ad hoc Reports are OOS Reports. managerial and ad hoc Retail Execution Reports. LEARNING & APPLICATIONS A continuous improvement process requires a functional component dedicated to analysis of the process performance and identification of opportunities for process improvements. etc. ANALYSIS. The Nonconformity Report is listing of all out of standard findings with the Picture of Success detailed by customer and summarized by Sales Supervisor. *Recommend the timing and component changes for updates to Pictures of Success. Learning and Applications function is particularly important in the RED process which is driven by an extremely large database generated by the Retail Execution Tracking System. *Identify retail execution performance deserving of recognition and rewards *Identify retail execution opportunities for following month focus *Complete correlation analysis of retail execution activity to NSR. These reports are generally issued monthly and are summarized by Market Segment.

The recommendations are typically market wide opportunities and are supported with the prior month performance reports and ad hoc reports. it may be time to reduce the difficulty level of the standard. When compliance levels for a component continuously remain under 20%. The Analysis. Identify Retail Execution Opportunities for Next Month’s Focus: The Analysis. it is time to consider increasing the standard. For operations with variable compensation systems where part of the salesman’s compensation is based on retail execution performance.Internal use 27 . Learning and Applications function must set up analysis and reporting routines to supply input for this very important activity. Learning and Applications function is responsible for a monthly presentation to the Sales Management team. A general rule for making changes to the Picture of Success is the 80%-20% rule. Identification of Retail Execution Performance Deserving Recognition and Reward: Recognition and reward for outstanding Retail Execution performance is an important driver of the RED process. The agenda for this monthly meeting includes a review of prior month Retail Execution performance. These changes are driven by compliance levels identified through the Retail Execution Tracking System. recommendations for changes to the Pictures of Success and recommendations for specific areas of focus on Retail Execution activity during the next month. Learning and Applications function is to make recommendations for changes to the Pictures of Success. Classified .UNDERSTAND THE RED PROCESS Picture of Success Updates: A major responsibility of the Analysis. when compliance with the Points of Connection standard for supermarkets which is 8 POC’s reaches 80%. a recommendation could be made to management to increase the Point of Connection standard from 8 to 9 POC’s. Learning and Applications function should establish analytical routines that trigger identification of the salesman or sales teams when pre-established recognition and reward criteria are achieved. the Analysis. When compliance levels with a Picture of Success component for a Market Segment are above 80%. For instance.

Volume & Profitability. the identification that a second cooler placed adjacent to the take out food counter in a supermarket produces the best NSR and profitability growth of any second cooler location is very important input to salesmen.UNDERSTAND THE RED PROCESS Perform Correlation Analysis of Retail Execution Activity to Value.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_07 6273? ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273 Classified . Most bottlers. Learning and Applications function is identifying the results attached to retail execution activities. grow fast! Note: For more information on Analysis. Learning and Applications function are not addressed. A very valuable output from the Analysis. Organizational Implications of Analysis. For example. think big. or just click on the link below: http://apps. Success with the RED process will be limited if the capabilities and capacity issues related to the Analysis. have only minimal capabilities and capacity in this functional area. The learning from existing RED implementations is that correlation analysis usually starts with simple analysis but progresses to very complex analysis as the capabilities of the analysis team and the sales team improve.ko. This is because prior to RED they have almost no Retail Execution Tracking data to analyze. Learning and Applications including examples of Retail Execution Reports go to the CUSTOMER PORTAL website to Segmented Execution to Immersion Training Materials to Training 080.Internal use 28 . Learning and Applications function. prior to implementing RED. Learning and Applications: Most RED implementations have quickly encountered capacity and capability issues for the Analysis. Start small.

Internal use 29 .SECTION IV – IMPLEMENT A RED PILOT MARKET Classified .

The titles vary from market to market but include CEO. Both parties must fully understand the RED process. problem solve and make course corrections. General Manager. Alignment of TCCC and the Bottler on RED: TCCC and the bottler must be in full alignment on the RED process prior to implementation. Senior Management must be thoroughly briefed on the RED process. A Pilot Market Project Management team is required. understand the implications of RED to the business and commit to the resources and top down support required to have a successful implementation of the RED process. Managing Director. The team should have an experience leader who believes in the RED process and subject matter experts for the various systems and procedures of the RED process. COO. They usually already have full workloads and simply don’t have the time to guide the process. Classified . Guide the RED Pilot Market implementation with an Effective Project Management Team: Implementation of the RED Pilot Market cannot be well managed by the existing sales management team. VP of Sales.I MPLEMENT A RED PILOT MARKET KEY SUCCESS FACTORS FOR A RED PILOT MARKET . and VP of Marketing. systems and procedures but small enough to make implementation course corrections possible. The “test drive” should also provide a representative assessment of value and volume results from the RED process. Senior Bottler Management Buy-in and Commitment to RED: Prior to any RED process implementation it is absolutely essential to have full buy-in and commitment to the RED process by Senior Bottler Management. President. Commercial Director. agree on the implementation plan and agree on the resource commitment required of each party. CFO. Meaningful and Manageable Pilot Market Size and Scope: The purpose of the RED Pilot Market is to “test drive” the process in real local market conditions. The “test drive” should be of a large enough size and scope to give a thorough assessment of all process.Internal use 30 .

If there is a reasonable doubt about the overall quality of Market Segment coding. The procedures used to code new outlets and to change coding should also be reviewed. Step 3-Review coding of outlets with the current Market Segmentation plan. This can be accomplished in most markets through a quality check of a randomly selected sample of outlets from each Market Segment. the VP of Marketing and the VP of HR. The Executive Steering Committee is responsible for project guidance and oversight. Insure that the team leader can devote at least 70% of his/her time to Pilot Market Project Management.Brief the Sales and Marketing Management Team on the RED Pilot Market Project. Step 2. Next send him/her to RED immersion training. followed by the Project Leader who will give a briefing on the RED process and introduce Project Team members.Form the RED Pilot Market Project Management team. Their first responsibility is to work with the PM Project Leader to access all Project Team members. Classified .IMPLEMENT A RED PILOT MARKET IMPLEMENTING THE RED PILOT MARKET-STEP BY STEP Step 1. Select a team leader who is a high potential mid-level manager in the sales department. Have the Bottler CEO/GM open the briefing with overview comments explaining the rationale for his/her commitment to the project followed by the VP of Sales who explains how the Pilot Market will be selected and managed. Form an Executive Steering Committee for the RED Pilot Market made up of the VP of Sales. Charge the team leader with identifying the subject matter expertise needed on the team. Avoid adding any Market Segmentation complexity before the pilot market. Insure the outlets in the transactional data base are coded to the appropriate Market Segment. Send him/her to a market with a fully implemented RED process for an in depth look at all the RED systems and procedures.Internal use 31 . a complete coding check/update will need to be undertaken. Hold a briefing meeting on the RED Pilot Market Project with all members of management in the Sales and Marketing departments.

After identifying the RED Pilot Market outlets. Many RED Pilot markets have been structured around two or three Sales Teams (10 to 30 Salesmen). Classified . select a representative group of non-RED control outlets for each Market Segment in the RED Pilot. Activation).IMPLEMENT A RED PILOT MARKET Step 4-Select the Market Segments for the RED Pilot Market. factor in the probability of having to remove some of the outlets from the RED Pilot for reasons such as store closings or store management changes. Adjacencies. including the Sales Supervisors and Salesmen from the RED Pilot. The review and updating of Pictures of Success should be a group effort lead by The RED Project Team Leader with representatives from the RED Project Team. Select the Market Segments for the RED Pilot Market that will create a representative cross section of the total market while being consistent with pilot scope and size considerations. The goal for outlet selection is to have enough outlets for each Market Segment in the RED Pilot to produce a reliable assessment of the RED process. Avoid including excessive complexity or creating standards that are far beyond the execution capabilities of the current organization. Concentrating the RED Pilot Market into a few Sales Teams improves project focus. Points of Connection. (Assortment. SOVI. When developing the initial outlet count. update or check off on a Market Segment standard for each element of your Pictures of Success that you plan to use in the RED Pilot. If possible. The non-RED control outlets will provide a base to compare NSR. Most RED Pilots select Segments that are predominately Immediate Consumption and Segments that are predominately for Future Consumption. Step 6 – Review and Update the Picture of Success for each Pilot Market Segment. Establish. Retail Pricing. Channel Marketing and Sales Management.Internal use 32 . Step 5 – Select the Outlets for the RED Pilot Market. Remember that all Picture of Success standards must be measurable and actionable. volume and profitability versus RED outlets. have RED Pilot Market outlets assigned to all Salesmen on the Sales Teams participating in the RED Pilot. Most RED Pilot Markets limit the number of Market Segments to a maximum of 4 or 5.

develop the process framework (timing. Assemble a Retail Execution Plan for the first three months of the RED Pilot. Start this step as if you are beginning a new year. lack of knowledge of the standard or lack of priority. participants. E. This can be done by first identifying all Picture of Success elements with noncompliance rates that exceed 80%. The objective is to have Pictures of Success that are demanding but achievable. routines and reports that will underpin the RED Pilot Market. Using the same associates who updated the Pictures of Success. survey a representative number of outlets in each Pilot Market Segment. Output reportMonthly Sales Route Priorities Report *Monthly Best Practice Training Meeting Classified . The three month Retail Execution Plan and the Pictures of Success are goals that drive all RED process plans for Sales roles. routines and reports. With these goals in mind. Step 9 – Plan the Sales roles.Internal use 33 . Plan and Route Picture of Success Non-compliance report. Step 8 – Review the results of the preliminary assessment of current retail execution and adjust the Pictures of Success where necessary. Ask all surveyors to track the time it takes to complete each survey. Use an existing automated Retail Execution Tracking System if it can accommodate all elements of the Pictures of Success or conduct the assessment manually. This will be valuable input when you structure the Retail Execution Tracking System for the RED Pilot. Adjust all high non-compliance standards that are driven by lack of capability to achievable levels. E. Add the Picture of Success standards for the pilot Market Segments and begin developing communication materials and training programs for the Pilot Market salesmen and sales supervisors.IMPLEMENT A RED PILOT MARKET Step 7 – Complete a preliminary assessment of current retail execution contrasted to the updated Pictures of Success. Decide if the non-compliance is driven by lack of capability. Before starting the surveying. Plan Presentation Meeting *Picture of Success Training Meeting *Sales Route Monthly Planning Meeting (Input reports-Qtr R. activity focus) for a series of routines such as the following: *Three month R. have a meeting with all surveyors to review the standards and detail how to measure all standards.

You must complete your assigned weekly surveys on time. For example. Some of these differences create huge gaps that can only be resolved with significant infrastructure change. particularly those problems that will cripple the RED process. If a sales supervisor spends most of his time as vacation relief for salesmen and on administrative duties such as merchandising asset management.Internal use 34 . Output. If a supervisor has poor coaching skills. Step 11 – Plan the Retail Execution Tracking System for the RED Pilot Market.Listing of Weekly Customer Priorities *Daily Sales Meeting (Input-Listing of Weekly Customer Priorities. The objective of this step is to identify the capability. The magnitude of these gaps will require the Project Team to go to their Executive Steering Committee for guidance and assistance. Once the survey metrics are completed the number of surveys required per day becomes the starting point for structuring the survey team. capacity and work process issues that will be deterrents to well functioning RED sales routines and reports. If there is insufficient reporting infrastructure. To build credibility for the Retail Execution Tracking System and to include a quality assurance Classified . The only caveats are: (1) All surveyors must be thoroughly trained and (2) Surveying is a priority commitment. He simply does not have sufficient customer call time.IMPLEMENT A RED PILOT MARKET *Weekly Customer Priorities Meeting (Input-Monthly Sales Route Priorities Report.Complete a Gap Analysis between current sales routines and reports and the planned RED sales routines and reports then develop an action plan to close the gaps. if a salesman is making 50 to 60 customer calls per day to do order generation. A surveyor cannot delegate his surveys to someone else. The surveyor pool can include the Pilot Market Project Team. Most sales organizations have differences between their existing routines and reports and RED routines and reports. he will probably not succeed in a RED process environment. The project team should begin with the RED Pilot outlet count then determine the survey cycle. this gap can be addressed when the Analysis. this is a capability gap that can be immediately addressed with training. OutputDaily to Do Listing) Step 10. all Sales and Marketing middle management and Sales Supervisors. These two examples are capacity issues that create huge gaps. Learning and Applications function is planned. Gap analysis and corrective action planning simply allows the project team to solve sales routine and report problems before going live with the RED Pilot Market. he probably will not succeed in a RED process environment. survey sample size per segment and the desired survey frequency. In most RED Pilot Markets the survey process is kept in house.

Learning and Applications function for the RED pilot. The RED Pilot Project Team should begin by looking at the output required from this function. If a bottler does not already have a variable compensation program with an element focused on retail execution. Ad hoc reports. Recommendations for updates to Pictures of Success. Most RED Pilot Markets start up with a virtual Analysis. Recommendations for recognition and rewards) The outputs should help identify the skill set requirements. Monthly RED Pilot progress reviews. Classified . it is not recommended to make this change for the pilot. financial analysis and sales information analysis and reporting are sources of the skills required for Analysis. Recognition and reward simply motivates the Salesmen and Sales Supervisors to maintain the behavioral changes required for a successful RED Pilot Market.Internal use 35 . Learning and Applications function then transition to more permanent infrastructure after the RED Pilot or as need arises.IMPLEMENT A RED PILOT MARKET check. be sure the retail execution element is focused on progress with the Pictures of Success. This keeps the salesmen comfortable with the process and insures that the tracking system is working properly. Finally. Step 13 – Plan the Retail Execution Recognition and Rewards program. (Nonconformity reports. during this step you will need to identify any resources required for the Retail Execution Tracking System such as handhelds of computers and begin the acquisition. Managerial Reports. Learning and Applications. Step 12 – Plan the Analysis. In most bottlers. consider having Salesmen complete one or two surveys per day and also have regular survey team members survey the same outlets on the same days. skill sets associated with channel marketing. The inclusion of a recognition and rewards program for the RED Pilot Market is critical to success for the pilot. If there is an existing variable compensation program. Recognition for salesmen and sales teams in company publications and on sales room walls plus gifts and bonuses for progress with Pictures of Success are relatively low cost means of keeping the RED Pilot Market moving forward.

IMPLEMENT A RED PILOT MARKET Step 14 – Conduct a comprehensive final briefing on the RED Pilot Market Plan with all associates participating in or supporting the RED Pilot. all work processes related to the RED Pilot. the Pilot Market Project Team makes an overall assessment of implementation progress and either rolls out the Pilot Market to all planned pilot outlets in month two or stays with the 2030% until they are more comfortable with progress. Classified . Once all pilot outlets are up and running the RED process. All associates who are participants in the RED Pilot Market and the associates who will be supporting the RED Pilot market and the full Sales & Marketing management team should attend the briefing. the Pilot should be maintained for a minimum of 90-120 more days. identification of major roles and responsibilities and identification of a RED Pilot Market help desk. The Pilot Market Project Team monitors the project very closely. Step 15 – Go live with implementation of the RED Pilot Market using a sequenced roll out procedure. This is a half day to full day review of the RED Pilot Market Plan.Internal use 36 . Begin the implementation of the Pilot Market with 20-30% of the planned pilot outlets for the first month. At month end. identifies and solves for problems during the month.

Internal use 37 .SECTION V – ASSESS THE RED PILOT MARKET Classified .

Included should be Salesmen. volume and Profit Contribution. Learning & Applications. Complete a summary of Business Results from the RED Pilot Market contrasted to the business results of control outlets. Assess the RED Pilot Market Project Plan and revise with learning: The Project Team should review the original RED Pilot Market Project Plan and revise it with their learning. Sales Management. Retail Execution Results.Internal use 38 . impractical timelines and resource issues. Revisions should be made for problem process activities. The focus of this assessment is to identify the timing and causal factors for significant changes in progress with RED components during the Pilot Market. The business results should be summarized by Market Segment and Total Pilot Market. The presentation should be made by the PM Project Classified . Sales Supervisors. Surveyors. The RED Pilot Market assessment is conducted by the RED Pilot Market Project Team after the completion of the final month of the Pilot Market. The debriefings should focus on the participant’s key observations and recommendations. Analyst. The revised Project Plan becomes a valuable tool for the Sales Center RED implementations that come next. The presentation should include Business Results. The assessment will provide final course corrections to the process and guidance for the RED Sales Center implementations that come next. Prepare and Present a Debriefing on the Results and Process Learning from the RED Pilot Market. and Analysis. The general process for the assessment is: Conduct Debriefing Interviews with Pilot Market participants: The PM Project Team should conduct one on one interviews with a cross section of associates who were actively involved in the RED Pilot Market. The Project Team Leader should debrief all Project Team members.ASSESS THE RED PILOT MARKET The purpose of the RED Pilot Market assessment is to capture all the process and results learning from the RED pilot implementation. Assess progress with Retail Execution and the major components of the RED process. The debriefing input should be organized around RED process components into a summary document. and RED customers. RED process learning and Pilot Market Project Plan learning. The RED Project Team should summarize the progress with Pictures of Success. Business results include NSR. the Retail Execution Tracking System. Sales Routines and Reports.

Internal use 39 .Team to the Bottler Senior Management Team and the Sales and Marketing Management team. Classified . Include all appropriate associates from TCCC.

Internal use 40 .SECTION VI – IMPLEMENT RED Classified .

The Training Programs developed in the RED Pilot Market are a good inputs for this development work. The RED process will require an organizational unit with the specific capabilities and capacities to support RED implementations and the on going RED process.Internal use 41 . The best qualified candidate for this leadership role is the Project Team Leader from the RED Pilot Market. The functions within this organizational unit include. This step adds the scale and scope considerations of a Sales Center to the final RED Pilot Market Project Plan. Included are Training Programs on Pictures of Success. Develop a RED implementation sequence and timetable. (2) Pictures of Success planning. Routines & Reports and Coaching. and (4) RED Analysis. The document is important given that the primary responsibility for RED implementation in a Sales Center is the Sales Center Manager.IMPLEMENT RED RED process implementations can begin for the franchise territory using the learning from the RED Pilot Market. The organizational unit should be lead by a Director of Retail Execution. Retail Execution System Tracking Systems. (3) management of the Retail Execution Tracking System. The purpose of this manual is to be a stand alone resource for Sales Center Managers implementing RED. Plan the sequence of RED implementations across the Sales Centers in the franchise territory. The following actions should be taken prior to full RED implementations: Adapt the Sales & Marketing organizational infrastructure to support the RED Process. The Training Department and HR function will need to be engaged to complete all the Training Programs and Communication Materials required to implement RED in Sales Centers. Develop the Training Programs & Communication Materials to support RED implementations. This RED support unit should report to the VP of Sales & Marketing. Most implementations start in the Sales Center with the Pilot Market then progress next to the Sales Center expected to have the least implementation problems. Expand the final version of the RED Pilot Market Project Plan into a detailed manual to guide RED implementations in a full sales center.(1) Channel & Segmentation planning (One of the first tasks for this function is to determine if the Market Segmentation plan can be advanced before RED is implemented in a Sales Center). This creation of this “How to” manual should be the initial responsibility of the newly created Retail Execution support unit. Learning and Applications. Classified . Each function will have to be scaled up to support the implementations of RED in Sales Centers.

Fill out the team with the required subject matter experts. across time. • Hold an in depth RED Project briefing with the Sales & Marketing management team before Pilot Market implementation then provide frequent progress updates to the same group. Managerial Reports. Retail Execution Tracking Systems provide timely and actionable information on compliance with Pictures of Success that is the primary input to the Analysis. These recommendations advance the Pictures of Success and begin another cycle of continuous improvement.Internal use 42 . Key Principles of RED Implementation Experience from RED implementations across a variety of markets provides the basis for the following key RED implementation principles: • The first step of a RED journey is to secure Senior Bottler Management commitment and buy-in to the RED process and a RED implementation. Classified . The Sales organization continually improves execution capabilities through sales routines and reports that reinforce best practices and a disciplined process. The output from this team includes Non-compliance Reports. the RED implementation plan and the resources required from each partner. • Manage the RED Pilot Market with a Project Management Team lead by an experienced high potential Sales-Marketing manger who can devote a minimum of 70% of his time to the project. • Reach TCCC-Bottler alignment on the RED process. • Start with a RED Pilot Market that has a very manageable size (Market Segments and Outlets) and a very manageable scope (Picture of Success elements). ad hoc reports. Learning and Applications team. advance in complexity and purchase stimulation effectiveness. The advancing complexity of these Pictures of Success is synchronized with the growth of execution capabilities to keep the Pictures of Success always challenging but achievable. identification of retail execution deserving recognition and rewards and recommendations for changes to the Pictures of Success.SUMMARY Overview of the RED Process RED is a continuous improvement process focused on Pictures of Success that.

the Retail Execution Tracking System function and the RED Analysis. Classified .Internal use 43 . think big and grow fast”. • After implementing the RED Pilot Market. A significant balance of “same outlets” should be carried month to month. plan the survey cycle. • Develop a sales center roll out sequence and timetable for full RED implementation that begins with sales centers expected to have the least implementation problems. Run trial surveys. assess compliance levels with the initial Pictures of Success using the trained surveyors then adjust Picture of Success elements that are above 80% non-compliance to be more attainable with current sales execution capabilities. The survey cycle should never exceed the correction cycle. • Before implementing the RED Pilot Market. • Before implementing the RED Pilot Market. The survey sample should include 6-10 surveys for each salesman during the survey cycle. The RED Support Unit should be lead by a Director of Retail Execution. • Before implementing the RED Pilot Market. “Start small. create and staff a RED Support Unit that reports to the VP of Sales & Marketing. keep salesmen and sales supervisors on the Retail Execution Tracking System survey team to maintain credibility for the tracking system. Learning & Applications function in the RED Support Unit. replace unnecessary routines and reports. • Always remember. • Have the Pilot Market Project Management Team complete a comprehensive assessment of the RED Pilot Market at the conclusion and apply all learning to a detailed guideline for full RED implementations. Be careful not to just add new routines and reports. the survey sample and the survey frequency for the Retail Execution Tracking System. refocus sales routines and reports on achieving progress with Pictures of Success.• Fully train all Pilot Market salesmen. (The RED Pilot Market Project Team Leader is usually a great candidate) Include the Channel/Segment planning function. sales supervisors and the Project Management team on the Retail Execution Tracking System before beginning the Pilot Market. adjust the process as necessary and retrain the full group until the surveying process is flawless. • Before going live with a full RED implementation. Advance the timetable of sales center implementations with the learning curve.

Cultural Changes to the Organization from RED RED changes the culture of a sales and marketing organization.Internal use 44 . RED creates a passion across the organization for execution excellence. RED creates new skills and new career paths within the sales and marketing organization. RED helps create alignment between TCCC and the bottler by connecting marketing strategies and retail execution. Classified . RED creates sustainable competitive advantage for the franchise and a strategic marketing asset for the KO business system.

Classified .Internal use 45 .

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