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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 1990s 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.SEGMENTED MERCHANDISING STANDARDS 4.LEARNING FROM ANALYSIS OF RETAIL EXECUTION RESULTS 2.SALES EXECUTION ROUTINES AND TRAINING

3.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. For example, merchandising standards could be developed by the Channel Marketing team at TCCC, Sales Execution Routines could be the sole responsibility of Sales Supervisors, 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. The traditional Retail Execution process resulted in shortfalls that could impair progress. Merchandising standards many times were well beyond the current execution capabilities of the organization. These standards became more of a wish list than a near term goal. Sales routines many times primarily focused on calls per day rather than achieving the bundle of merchandising
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OVERVIEW OF RETAIL EXECUTION

standards in all outlets. Retail Execution Tracking reports from syndicated research such as Nielsen were not timely or actionable and only addressed a partial listing of merchandising standards. 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. Clearly, 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. The RED Retail Execution Management Process The innovation in the Retail Execution management was the change to a dynamic process, RED, where the four components were functionally connected and managed for continuous improvement.

THE PICTURE OF SUCCESS

4.LEARNING FROM ANALYSIS OF RETAIL EXECUTION RESULTS

2.SALES EXECUTION ROUTINES AND TRAINING

3.TRACKING EXECUTION VERSUS MERCHANDISING STANDARDS

3.TRACKING EXECUTION VERSUS Classified - Internal use MERCHANDISING STANDARDS

OVERVIEW OF RETAIL EXECUTION

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

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SECTION II PREREQUISITES TO RED

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PREREQUISITES TO RED

Outlet Level Data


The first prerequisite to RED is Outlet Level Data provided by the transactional data base. Without Outlet Level Data the basic RED processes such as segmentation and Analysis, Learning and Applications are impossible. Markets without Outlet Level Data should solve this issue before proceeding to implement RED.

Market Segmentation
Completing or updating the Market Segmentation plan is the second prerequisite before beginning RED. 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. Market Segmentation began with the division of the market into Trade Channels where the only segmentation criteria was retailing format. Market Segmentation has evolved today to include segmentation criteria based on some combination of retailing profiles, shopper behavior profiles, 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. Long term, the scope and depth of Market Segmentation can advance as the capabilities of the sales organization improve. A major input for long term advancement of Market Segmentation is the understanding of shopper profiles and behaviors provided by Shopper Marketing.
For more information on Market Segmentation go to the CUSTOMER PORTAL website to Segmented Execution to RED Immersion Training Materials to Training 130, or just click on the link below:
http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_076273? ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273

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PREREQUISITES TO RED

The OBPPC Plan


Your Occasion Brand Package Pricing Channel plan should also be updated before beginning the RED process. The first step is to format this plan around the Market Segmentation Plan that has just been completed or updated. Next, verify that the OBPPC plan accurately reflects the current SKUs in your portfolio and the pricing that should be in the market for each market segment. As in Market Segmentation, it is important to avoid adding OBPPC complexities prior to implementing RED. Most RED implementations begin with a focus on 3 to 5 key SKUs in each Market Segment.

The Route to Market (RTM) System


Any changes contemplated for the RTM System should be completed prior to implementation of the RED process. No changes to the RTM system should take place during the implementation of RED.

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SECTION III UNDERSTAND THE RED PROCESS

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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. Before beginning with the first component, lets take a moment to review the operating characteristics of the RED process. RED is a continual improvement process. This means we balance Retail Execution objectives that become more challenging over time with Retail Execution capabilities that are improving over time. We target these Retail Execution objectives (The Pictures of Success) to be 80% attainable by current Retail Execution capabilities at any point in time. Maintaining this balance between objectives and capabilities requires that we always know the gaps in the Pictures of Success and have sales routines, reports and coaching available to help the salesman close the gaps. Knowledge of the gaps versus the Pictures of Success is provided by a Retail Execution Tracking System that provides credible, timely and actionable information. Lastly, the key associate in the RED process is the salesman. The RED process is designed to help him succeed through training, coaching, support materials, recognition and incentives.

1. THE PICTURE OF SUCCESS


The Picture of Success is the nucleus of the RED process. 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. The Picture of Success translates brand strategies, OBPPC strategies, occasion based strategies, merchandising strategies and customer strategies into a visual image of our retail execution for each market segment. The Picture of Success is where we engage the two constituencies who are critical to our business; the purchaser/consumer of our brands and the retailer.

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This document will address three questions that must be answered for effective development of Pictures of Success (POS): 1. What are the major elements that should be in each POS? 2. What inputs help define these POS elements? 3. 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. There are only minor variances in measures and terminology. The elements include: *The brand & package SKU assortment to be available as detailed in your OBPPC Plan or Annual Customer Agreement. *The retail positioning of the assortment Commonly call adjacencies referring to which KO SKU, competitive SKU or other non-beverage product each should adjoin. Guidelines for planning adjacencies include the following examples; if the KO brand is the category leader, do not position it next to other category participants; If the KO brand is not the category leader, position it next to the leader. *A measure of retail inventory SOVI, share of retail inventory is the most widely used measure. 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. *Points of Shopper Connection The locations in the shopper traffic patterns where we target ambient or cold availability of our brands. Points of Connection can be freestanding secondary displays, merchandising racks, coolers or vending equipment. 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. When establishing your goal for total Points of Connection, 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. This pricing usually comes from the OBPPC Plan which should have a high-low pricing range for each SKU. This pricing range is calculated using our net wholesale pricing and the margin or markup commonly used by the segment/customer.

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*Activation (1) The shopper messaging we target to the market segment and to each Point of Connection. (Call to action, brand building or promotional messaging with the targeted location for each message) and (2) The shopper engagement actions and activities we execute. (What we do to inspire the shopper about the category and our brands, 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. 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. 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. For example, this initial reflection might suggest these elements apply to supermarkets but not to an immediate consumption kiosk. On further reflection, it should become apparent that all elements apply to all Market Segments. Back to the example of a supermarket and an IC kiosk; 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), it is important to measure and maintain the exclusivity and Points of Connection even for a small outlet. 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.
Note: Go to the CUSTOMER PORTAL website to Segmented Execution to RED Immersion Training file 040 for more information, or just click on the link below: http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_07 6273? ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273

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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. *TRANSACTIONAL DATA BASE

SOVI

POINTS OF CONNECTION

*OCCASION BASED STRATEGY *RESEARCH (M.O.T.O.R.) *MERCH. EQUIP. PLAN *OBPPC PLAN *BRAND PLANS *P.O.P. PRINCIPLES *RESEARCH (M.O.T.O.R.) *CUSTOMER CATEGORY STRATEGIES

RETAIL PRICE RANGE ACTIVATION

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NOTE: Go to CUSTOMER PORTAL website to Shopper Merchandising & Marketing to Overview of Shopper Research Tools to Key Pillars of Shopper Knowledge, Overview of SM Insights and Shopper Knowledge-Three tools for more information on inputs, or just click on the link below: http://apps.ko.com/customerportal/CommercialLeadership/PlanningforMarketSuccess/Ho wTo/index.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, the key consideration is to remember that RED is a continuous improvement process. A continuous improvement process only works when the capabilities, 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. Start small, think big, and grow fast. Most markets that have implemented RED started with only the very basics of the Picture of Success (3-5 Key SKUs, Pricing, Overall SOVI, and Points of Connection with emphasis on equipment) for 4 to 5 market segments. This topic will be further addressed during Section IV Getting Started with RED through Implementation of a Pilot Market. The evolution of The Picture of Success over time generally moves first to more market segments and more outlets, then to expanded Picture of Success component measurements. Note: Go to CUSTOMER PORTAL website and SEARCH Picture of Success, open RED Immersion Training file 040 and review slide 8 for more information on planning the evolution of The Picture of Success, or just click on the link below:.
http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_07 6273? ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273

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2. 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. The question for management is threefold; 1. Are these routines and reports focused on the priority actions that will produce the planned value and volume growth for our brands? 2. Are these routines and reports executed with the discipline required of a world class sales team? 3. Are the routines and reports supported with feedback, follow-up, coaching, training, 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. The overarching objective of the RED process is execution of The Picture of Success in all outlets. This section of the RED process, Sales Execution, will concentrate on how a sales organization achieves the Picture of Success through disciplined management of routines and reports. Clearly, there are other sales routines and reports beyond those that relate directly to the Picture of Success. 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 based on two strongly held beliefs; 1. 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. The RED process is applicable to any sales organization regardless of Customer Service System, RTM system or use of third parties.

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The Retail Execution Annual Plan: The first input required for defining Sales Routines and Reports is The Retail Execution Annual Plan. This plan should detail the annual objectives, strategies and planned actions for Retail Execution. 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, reports, training, feedback, coaching, 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; Channel Goal-Increase channel share of value for KO brands from 45% to 50%. Channel key metrics-Increase cold SOVI +20% and GP +12%. Channel Action PlanImplement a channel emphasis during April & May to launch new 600 ml PET, place 1500 new open front coolers and 500 single door GDM to be placed as second cooler. Consumer Promotion Plans (Example) Execute World Cup Promotion during June, July & August. Kick off sales meeting scheduled for May 1. Sell in kits to be distributed week of May 4. Custom POP materials to be available for Hypers & Supers, Mom & Pops, and on premise channels. Brand Marketing Calendars (Example) Brand introduction for new energy drink in 250 & 330 ml cans scheduled for February. Priority channels are bars, nightclubs, hypers & supers. Brand emphasis periods for Zeros scheduled for September, Water for October and for Coca-Cola in December. 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. Quarterly presentations allow for plan adjustments that are inevitable, maintain some confidentiality of the annual plan and keep the amount of information being communicated to the salesman digestible.

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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. Following is an example of Sales Routines and Reports related to Retail Execution. (Note that this example excludes routines and reports such as Route P&Ls, Customer Returns, 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, The Picture of Sales Mgr, Sales Success Meeting Supervisor Mkt Mgr. Sales Route R.E., Priorities Planning, Meeting Sales Supervisor and Salesman

Monthly

Monthly

Best Practice Training Meeting Customer R.E. Priorities Meeting Morning Sales Meeting

Sales Supervisor and Salesman Sales Supervisor and Salesman Sales Supervisor and Salesman

Weekly Weekly Daily

QTR R.E. Plan Results by Sales Center, Sales Group, Sales Team, Sales Route Monthly R.E. Scorecard, Monthly Picture of Success, Analysis Reports Picture of Success non-conformity Report; QTR Sales Route R.E., Plan Results Reports Best Practice Documents Monthly Sales Route R.E.Priorites Daily Things to Do List

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Coaching; the most important RED Sales Routine The most important RED Sales Routine is the coaching provided from the Sales Supervisor to the Salesman. Coaching sessions are where the supervisor and salesman identify gaps in Retail Execution performance and, more importantly, find solutions that will help the salesman close the gap. Coaching can take place in the Sales Center or on the route. Coaching should be a positive motivation and performance enhancer. Coaching sessions should generally address only one R.E. gap. Coaching requires specific training sessions for supervisors. Coaching is the Sales Supervisors most important responsibility. Replace routines and reports; dont 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. 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, eliminate the report and the routines supporting the report. Note: For more information Sales Execution Routines, Capabilities and Coaching go to the CUSTOMER PORTAL website to Segmented Execution to RED Immersion Training Materials to Training 120, or just click on the link below:
http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_07 6273? ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273

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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, Company Publications or on Sales Room Bulletin Boards. Retail Execution Rewards programs add a gift or bonus to the recognition. The only caution is to always tie recognition and rewards to improvement in an individuals or teams performance versus measurable objectives. Variable Compensation Systems base some part of the Salesmans compensation on his Retail Execution performance. Usually his compensation in this system is part fixed (Hourly, Daily or Monthly salary) combined with a part that is tied to Retail Execution performance. Most Variable Compensation Systems start with a high percentage allocated to fixed compensation and move over time to a heavier weight of variable compensation. Variable Compensation Systems require well functioning Retail Execution standards (Pictures of Success) and a credible, comprehensive and timely Retail Execution Tracking System. Even though there are successful RED implementations that do not use Execution Based Incentives, most implementations do employ recognition, rewards and some type of variable compensation system. 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, or just click on the link below:
http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_07 6273? ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273

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3. RETAIL EXECUTION TRACKING


The rationale for a Retail Execution Tracking System is the old business management adage You cant manage what you dont measure. There cannot be a RED process without a comprehensive, 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. Cost of the Retail Execution Tracking System is a consideration in all RED implementations. One means of keeping the cost under control is to avoid measurement creep. The RED Administrative manager should control this creep by keeping only the Picture of Success elements in the survey. How should the survey sample and frequency be determined? At minimum, the sample should be comprised of a statistically valid number of outlets from each market segment for the survey cycle. The survey cycle is generally viewed as one month. The survey cycle should never exceed the correction cycle. (The time it takes for the survey to be completed and processed, a non-compliance report completed and forwarded to supervisor & salesman, corrective retail execution action to be taken, and the salesman to report action and results to his supervisor.) The survey sample should include a minimum number (6 to 10) of surveyed outlets per salesman during the monthly cycle. The Retail Execution Tracking System should maintain a significant balance of same Outlets month to month to optimize results from RED. 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:
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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 bottlers organization or to use a third party to complete the surveys. Depending on labor costs in the market, either option can be the most cost effective. There are advantages and disadvantages to each option. 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. The disadvantages are higher administrative work loads and the potential for salesman-surveyor collusion. 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. The disadvantage of third party usage is a higher potential for loss of confidence and tracking credibility. 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, particularly in the early phases of implementation. Electronic survey data entry will expedite survey data processing and reduce processing errors. Additionally, as the size of the survey increases, it becomes more and more impractical to run a manual survey process.

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There has been success with a variety of handhelds in RED implementation markets. (PALM, PPC, other PDA). There is also proprietary software developed by TCCC for processing. Contact your local TCCC IT department for support with your RED implementation. What training should be considered for a Retail Execution Tracking System? It is very important that surveyors, salesmen and sales supervisors be trained together prior to implementing the Retail Execution Tracking System. The typical training program is a one day session followed by trial surveys being executed by surveyors, salesmen and supervisors. The Retail Execution Tracking System must have consistency and credibility before RED is implemented. There are Training Program Templates and example Training Programs on the CUSTOMER PORTAL website. The actual training program you use must be locally developed to include your Pictures of Success, the look of your market and the terminologies of your market. How much will a Retail Execution Tracking System Cost? The major cost contributor to the Tracking System is labor. 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. This simulator will give you an estimate of the cost per survey for your proposed system. Using this cost per survey, your planned survey sample and frequency will allow you project the cost of your Retail Execution Tracking System per survey cycle. 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. Prior RED implementations have proven that the improved NSR results have more than offset the cost of the Retail Execution Tracking System.
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, or just click on the links below: http://apps.ko.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, or by clicking on the link below: http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/HowTo/Right ExecutionDailyRED/T_076181

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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 initial survey process begins with a focus only on 4 to 6 Market Segments and 3 to 5 key SKUs. During this phase, surveying is done by Sales Supervisors, 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. These additional surveyors can be third parties or additional internal RED staffing. The decision to go third party or remain in house is based on the advantages and disadvantages covered on page 23. Even after adding additional surveyors, it is important to always keep Sales Supervisors, Salesmen and other Sales and Marketing associates involved in the survey process. The actual audit structure can also change based on the opportunities available within a Market Segment or the competitive pressure on a Market Segment. In either case, the decision can be taken to increase the percentage of the Market Segment that is surveyed during each survey cycle.

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4. ANALYSIS, LEARNING & APPLICATIONS


A continuous improvement process requires a functional component dedicated to analysis of the process performance and identification of opportunities for process improvements. This Analysis, 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. The major outputs of the function are: *Develop non-conformity, managerial and ad hoc Retail Execution Reports. *Recommend the timing and component changes for updates to Pictures of Success. *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, volume and profitability results. 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. The Nonconformity Report is listing of all out of standard findings with the Picture of Success detailed by customer and summarized by Sales Supervisor. The day of the actual survey is indicated by each customer. Turnaround time from the survey to report should be as fast as possible to enhance corrective actions. Managerial Reports include a variety of reports on monthly and YTD performance and progress with retail execution. These reports are generally issued monthly and are summarized by Market Segment, Picture of Success component, Sales Center, Sales Supervisor and geography. Ad hoc Reports can be produced for almost any retail execution activity. Examples of Ad hoc Reports are OOS Reports, Coverage Reports for new package introductions, etc.

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Picture of Success Updates: A major responsibility of the Analysis, Learning and Applications function is to make recommendations for changes to the Pictures of Success. These changes are driven by compliance levels identified through the Retail Execution Tracking System. For instance, when compliance with the Points of Connection standard for supermarkets which is 8 POCs reaches 80%, a recommendation could be made to management to increase the Point of Connection standard from 8 to 9 POCs. A general rule for making changes to the Picture of Success is the 80%-20% rule. When compliance levels with a Picture of Success component for a Market Segment are above 80%, it is time to consider increasing the standard. When compliance levels for a component continuously remain under 20%, it may be time to reduce the difficulty level of the standard. 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 Analysis, 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. For operations with variable compensation systems where part of the salesmans compensation is based on retail execution performance, the Analysis, Learning and Applications function must set up analysis and reporting routines to supply input for this very important activity. Identify Retail Execution Opportunities for Next Months Focus: The Analysis, Learning and Applications function is responsible for a monthly presentation to the Sales Management team. The agenda for this monthly meeting includes a review of prior month Retail Execution performance, recommendations for changes to the Pictures of Success and recommendations for specific areas of focus on Retail Execution activity during the next month. The recommendations are typically market wide opportunities and are supported with the prior month performance reports and ad hoc reports.

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UNDERSTAND THE RED PROCESS

Perform Correlation Analysis of Retail Execution Activity to Value, Volume & Profitability. A very valuable output from the Analysis, Learning and Applications function is identifying the results attached to retail execution activities. For example, 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. 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. Organizational Implications of Analysis, Learning and Applications: Most RED implementations have quickly encountered capacity and capability issues for the Analysis, Learning and Applications function. Most bottlers, prior to implementing RED, have only minimal capabilities and capacity in this functional area. This is because prior to RED they have almost no Retail Execution Tracking data to analyze. Success with the RED process will be limited if the capabilities and capacity issues related to the Analysis, Learning and Applications function are not addressed. Start small, think big, grow fast! Note: For more information on Analysis, 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, or just click on the link below:
http://apps.ko.com/customerportal/CommercialLeadership/ExecutingtoWin/Training/T_07 6273? ssSourceNodeId=111678&ssSourceSiteId=CUSTOMERPORTAL&dDocName=T_076273

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SECTION IV IMPLEMENT A RED PILOT MARKET

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I MPLEMENT A RED PILOT MARKET

KEY SUCCESS FACTORS FOR A RED PILOT MARKET


. 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. The titles vary from market to market but include CEO, COO, CFO, General Manager, Managing Director, President, Commercial Director, VP of Sales, and VP of Marketing. Senior Management must be thoroughly briefed on the RED process, 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. Alignment of TCCC and the Bottler on RED: TCCC and the bottler must be in full alignment on the RED process prior to implementation. Both parties must fully understand the RED process, agree on the implementation plan and agree on the resource commitment required of each party. 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, 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. 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. They usually already have full workloads and simply dont have the time to guide the process, problem solve and make course corrections. A Pilot Market Project Management team is required. 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.

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IMPLEMENT A RED PILOT MARKET

IMPLEMENTING THE RED PILOT MARKET-STEP BY STEP


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

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IMPLEMENT A RED PILOT MARKET

Step 4-Select the Market Segments for the RED Pilot Market. 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. Most RED Pilot Markets limit the number of Market Segments to a maximum of 4 or 5. Most RED Pilots select Segments that are predominately Immediate Consumption and Segments that are predominately for Future Consumption. Step 5 Select the Outlets for the RED Pilot Market. 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. When developing the initial outlet count, 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. Many RED Pilot markets have been structured around two or three Sales Teams (10 to 30 Salesmen). Concentrating the RED Pilot Market into a few Sales Teams improves project focus. If possible, have RED Pilot Market outlets assigned to all Salesmen on the Sales Teams participating in the RED Pilot. After identifying the RED Pilot Market outlets, select a representative group of non-RED control outlets for each Market Segment in the RED Pilot. The non-RED control outlets will provide a base to compare NSR, volume and profitability versus RED outlets. Step 6 Review and Update the Picture of Success for each Pilot Market Segment. Establish, 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. (Assortment, Adjacencies, SOVI, Points of Connection, Retail Pricing, Activation). Avoid including excessive complexity or creating standards that are far beyond the execution capabilities of the current organization. Remember that all Picture of Success standards must be measurable and actionable. 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, Channel Marketing and Sales Management, including the Sales Supervisors and Salesmen from the RED Pilot.

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IMPLEMENT A RED PILOT MARKET

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

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

check, 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. This keeps the salesmen comfortable with the process and insures that the tracking system is working properly. Finally, 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. Step 12 Plan the Analysis, Learning and Applications function for the RED pilot. Most RED Pilot Markets start up with a virtual Analysis, Learning and Applications function then transition to more permanent infrastructure after the RED Pilot or as need arises. The RED Pilot Project Team should begin by looking at the output required from this function. (Nonconformity reports, Managerial Reports, Ad hoc reports, Monthly RED Pilot progress reviews, Recommendations for updates to Pictures of Success, Recommendations for recognition and rewards) The outputs should help identify the skill set requirements. In most bottlers, skill sets associated with channel marketing, financial analysis and sales information analysis and reporting are sources of the skills required for Analysis, Learning and Applications. Step 13 Plan the Retail Execution Recognition and Rewards program. The inclusion of a recognition and rewards program for the RED Pilot Market is critical to success for the pilot. Recognition and reward simply motivates the Salesmen and Sales Supervisors to maintain the behavioral changes required for a successful RED Pilot Market. 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. If a bottler does not already have a variable compensation program with an element focused on retail execution, it is not recommended to make this change for the pilot. If there is an existing variable compensation program, be sure the retail execution element is focused on progress with the Pictures of Success.

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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. This is a half day to full day review of the RED Pilot Market Plan, all work processes related to the RED Pilot, identification of major roles and responsibilities and identification of a RED Pilot Market help desk. 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. Step 15 Go live with implementation of the RED Pilot Market using a sequenced roll out procedure. Begin the implementation of the Pilot Market with 20-30% of the planned pilot outlets for the first month. The Pilot Market Project Team monitors the project very closely, identifies and solves for problems during the month. At month end, 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. Once all pilot outlets are up and running the RED process, the Pilot should be maintained for a minimum of 90-120 more days.

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SECTION V ASSESS THE RED PILOT MARKET

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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. The assessment will provide final course corrections to the process and guidance for the RED Sales Center implementations that come next. 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 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 debriefings should focus on the participants key observations and recommendations. Included should be Salesmen, Sales Supervisors, Sales Management, Surveyors, Analyst, and RED customers. The Project Team Leader should debrief all Project Team members. The debriefing input should be organized around RED process components into a summary document. Assess progress with Retail Execution and the major components of the RED process. The RED Project Team should summarize the progress with Pictures of Success, Sales Routines and Reports, the Retail Execution Tracking System, and Analysis, Learning & Applications. 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. Complete a summary of Business Results from the RED Pilot Market contrasted to the business results of control outlets. Business results include NSR, volume and Profit Contribution. The business results should be summarized by Market Segment and Total Pilot Market. 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. Revisions should be made for problem process activities, impractical timelines and resource issues. The revised Project Plan becomes a valuable tool for the Sales Center RED implementations that come next. Prepare and Present a Debriefing on the Results and Process Learning from the RED Pilot Market. The presentation should include Business Results, Retail Execution Results, RED process learning and Pilot Market Project Plan learning. The presentation should be made by the PM Project
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Team to the Bottler Senior Management Team and the Sales and Marketing Management team. Include all appropriate associates from TCCC.

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SECTION VI IMPLEMENT RED

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IMPLEMENT RED

RED process implementations can begin for the franchise territory using the learning from the RED Pilot Market. The following actions should be taken prior to full RED implementations: Adapt the Sales & Marketing organizational infrastructure to support the RED Process. The RED process will require an organizational unit with the specific capabilities and capacities to support RED implementations and the on going RED process. This RED support unit should report to the VP of Sales & Marketing. The organizational unit should be lead by a Director of Retail Execution. 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;(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), (2) Pictures of Success planning, (3) management of the Retail Execution Tracking System, and (4) RED Analysis, Learning and Applications. Each function will have to be scaled up to support the implementations of RED in Sales Centers. Expand the final version of the RED Pilot Market Project Plan into a detailed manual to guide RED implementations in a full sales center. This step adds the scale and scope considerations of a Sales Center to the final RED Pilot Market Project Plan. This creation of this How to manual should be the initial responsibility of the newly created Retail Execution support unit. The purpose of this manual is to be a stand alone resource for Sales Center Managers implementing RED. The document is important given that the primary responsibility for RED implementation in a Sales Center is the Sales Center Manager. Develop the Training Programs & Communication Materials to support RED implementations. 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. Included are Training Programs on Pictures of Success, Retail Execution System Tracking Systems, Routines & Reports and Coaching. The Training Programs developed in the RED Pilot Market are a good inputs for this development work. Develop a RED implementation sequence and timetable. Plan the sequence of RED implementations across the Sales Centers in the franchise territory. 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.
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SUMMARY
Overview of the RED Process RED is a continuous improvement process focused on Pictures of Success that, across time, 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. The Sales organization continually improves execution capabilities through sales routines and reports that reinforce best practices and a disciplined process. Retail Execution Tracking Systems provide timely and actionable information on compliance with Pictures of Success that is the primary input to the Analysis, Learning and Applications team. The output from this team includes Non-compliance Reports, Managerial Reports, ad hoc reports, identification of retail execution deserving recognition and rewards and recommendations for changes to the Pictures of Success. These recommendations advance the Pictures of Success and begin another cycle of continuous improvement. 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. Reach TCCC-Bottler alignment on the RED process, the RED implementation plan and the resources required from each partner. 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). 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. Fill out the team with the required subject matter experts. 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.
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Fully train all Pilot Market salesmen, sales supervisors and the Project Management team on the Retail Execution Tracking System before beginning the Pilot Market. Run trial surveys, adjust the process as necessary and retrain the full group until the surveying process is flawless. Before implementing the RED Pilot Market, 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. Before implementing the RED Pilot Market, refocus sales routines and reports on achieving progress with Pictures of Success. Be careful not to just add new routines and reports, replace unnecessary routines and reports. Before implementing the RED Pilot Market, plan the survey cycle, the survey sample and the survey frequency for the Retail Execution Tracking System. The survey cycle should never exceed the correction cycle. The survey sample should include 6-10 surveys for each salesman during the survey cycle. A significant balance of same outlets should be carried month to month. After implementing the RED Pilot Market, keep salesmen and sales supervisors on the Retail Execution Tracking System survey team to maintain credibility for the tracking system. 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. Before going live with a full RED implementation, create and staff a RED Support Unit that reports to the VP of Sales & Marketing. The RED Support Unit should be lead by a Director of Retail Execution. (The RED Pilot Market Project Team Leader is usually a great candidate) Include the Channel/Segment planning function, the Retail Execution Tracking System function and the RED Analysis, Learning & Applications function in the RED Support Unit. 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. Advance the timetable of sales center implementations with the learning curve. Always remember, Start small, think big and grow fast.

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Cultural Changes to the Organization from RED RED changes the culture of a sales and marketing organization. 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. RED creates sustainable competitive advantage for the franchise and a strategic marketing asset for the KO business system.

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