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Enterprise Thinking Estee Lauder Travel Retail

Enterprise Thinking Estee Lauder Travel Retail. Hermon Kaur Raju Spring 2008. “One does not reach greatness through one’s accomplishments, but through the accomplishments of those whom’s life one has touched.” OBJECTIVE OF TEAM NAM:

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Enterprise Thinking Estee Lauder Travel Retail

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  1. Enterprise ThinkingEstee Lauder Travel Retail Hermon Kaur Raju Spring 2008

  2. “One does not reach greatness through one’s accomplishments, but through the accomplishments of those whom’s life one has touched.” OBJECTIVE OF TEAM NAM: Provide maximum support to our sales force, both branded and generic by utilizing our resources in the most productive and effective way. Deliver results to our management and our shareholders. This means working efficiently, by strengthening our relations both internally and externally with our retailer and bringing the best out of the people we touch. -Carlos Arancibia

  3. Estee Lauder Travel Retail • The mission is to “apply and adapt global brand strategies to consumer needs in the Travel Retailing channel of distribution.” • Headquarters: Miami, London, and Singapore • Offers 20 of the 26 brands to the traveling public • Provides a convenient shopping alternative for our existing customers while introducing our brands to new consumers • Characterized by • Exclusive product offerings • Unique promotional vehicles • Innovative merchandising concepts The Aim: “To serve existing consumers, recruit new consumers, and enhance brand awareness and equity as we maximize sales and profits by providing an attractive and inviting shopping environment and experience” – Olivier Bottrie

  4. The Aim of Enterprise Thinking… Moving forward by doing things • Better • Faster • Cheaper

  5. Applying 4 key Initiatives • Redefining • Managing Projects • Alliances • Time Management

  6. What is Redefining? A management leadership tool to always find a better way to discover new competitive, mega advantages by redefining challenges, problems and opportunities.

  7. Step 1. Challenge Statement Challenge: International Shoppes’s net sales do not reflect its retail sales growth.

  8. Test the Statement through 6 Criteria Test Questions 1. Is the CS one issue? Yes 2. Is the CS in the present or future tense? Present 3. Is the CS a problem or solution? Problem 4. Are the CS facts verifiable ? Yes 5. Are the CS assumptions valid ? Yes 6. Is the CS essential to your overall goal? Yes

  9. The Challenge In Depth…. • 1st quarter retail sales: 966K • 1st Quarter Net sales: 300K, 420K retail value • Essential items are always out of stock • There is no 6 month inventory • We should be at net 580 K, so increase sales 100%

  10. Step 2: Should Statement Judge against criteria again… How can we verify this? Ask: Why do the net sales not reflect the retail sales? Dig deeper… What is my ultimate end? International Shoppes should be ordering more stock every month to match their retail sales growth. Give myself a goal and convert into a WHAT WOULD IT TAKE Statement

  11. Step 3: What Would it Take? What would it take for International Shoppes to order 100% more stock in FY 2009?

  12. What I Need to Know: • Retail Sales • Net Sales • Net vs. Retail for other brands • Stock levels • Relationship Issues • Backorders

  13. Step 4:Scan the Surface for Solutions (Put on Different Hats) • Higher Retail Sales Initiatives: Introduce a Spiff program, Monthly GWP promotions • Clinique minimum order requirements • Checking warehouse stock levels weekly • Renegotiate stock levels- order more travel sets • HPPS with assigned goals • Reducing backorders on a corporate level to ensure we have stock on shelf • Enlarge warehouse • Analyzing retail sales • Check to see if mins and maxs are set correctly • Increase counter space • Scrutinize sales recording system • Scrutinize Inventory Analysis • Rework personal sales strategy

  14. Redefine Solutions.. Measure each prospective solution against a list of qualifiers to narrow the list of possibilities to the BEST option. • Resources required (time, staff hours, money, etc.) • Potential impact • Strategic fit/core competency • Market conditions • Time to implement

  15. Step 5: Redefining produced the following solutions: • Adjust Min and Max • Renegotiate stock levels by increasing travel sets • Eliminate backorders corporately • Reworking Personal Sales Strategy Renegotiate stock levels- increase travel sets Adjust Min and Max Rework Personal Sales Strategy

  16. Step 5 and 6: Test SolutionsSmall and Large Scale Small Scale Testing: • Focus group with other Senior Account Coordinators • Run proposals by upper management and International Shoppes management • Discuss with Beauty Consultants Large Scale Testing: • Compare quantifiable sales output regarding an account which buys in exactly in ratio to what it sells out • Test market solution by increasing stock for one month and comparing retail sales compared to LY • Offering a more customized selling approach, enhancing value sets and bargains and comparing results after one month

  17. Managing Projects Prioritizing Selected Projects

  18. Putting Projects First Based on R0I

  19. The Right Number of Projects You can only do two projects at a time and assist other people occasionally with their two projects Dealing with two projects at one moment usually results in an 80% efficiency

  20. Time Management • Institute time management approach with to do lists the day before • 2 projects at a given moment • Focus on priority projects • Our job as managers is to think strategically and develop systems and procedures

  21. CPM Chart Activity Immediately Prec Time (days) • Receive Plannograms None 7 • Order Visuals A 2 • Create Assortment A 2 • Order Open Service A 2 • Order Testers BCD 3 • Merchandising Date BCD 3 • SOH Clinique EF 3 • SOH Estee Lauder EF 3 • SOH Aramis EF 3 • Arrange Security Clearance GHI 3 • Schedule BAS to work GHI 3 • Confirm open service GHIJK 3 • Confirm all visuals GHIJK 3 • Confirm all testers GHIJK 3 • Buy misc. elements LMN 1 • Confirm with Shop Fitter 0 3 • Store Merchandising P 3

  22. Critical Path Method- New Installations ES: 7 EF: 9 ES: 12 EF:15 ES: 15 EF: 18 B G L ES: 0 EF: 7 ES: 7 EF:9 ES: 9 EF: 12 ES: 15 EF: 18 ES: 12 EF: 15 A C E H M ES: 12 EF: 15 ES: 15 EF: 18 ES: 7 EF:9 N I D ES: 12 EF: 15 ES:9 EF: 12 ES: 15 EF: 16 J F O ES: 12 EF: 15 K ES: 16 EF: 19 P ES: 19 EF: 22 Q

  23. Alliances • Optimize resources and strategies • Through Alliances seek new ventures and opportunities

  24. Alliance Requirements • Clear understanding of goals of each party (e.g., student recruitment for each school) • Benefits to each party (e.g., shared costs, expanded reach, etc.) • Clear definition of roles of all parties • Definition of resources expended by each party

  25. Types of Alliances

  26. Joint Venture: Estee Lauder and International Shoppes • Goals: Ensure Sell through of products • Benefits: Shared costs • Roles: International Shoppes: Internal support structure Estee Lauder: External Support Structure • Definition of Resources: wages, commission base, merchandising tools, store design, product

  27. In conclusion…. We never want to lose by a nose, only win by a mile!

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