Commercial Update 2017/12

Posted by europanel on Dec 08, 2017

Commercial Update – Issue 3 – December 2017

Dear Colleagues,

On 20th November I was lucky enough to be in a Unilever WPP planning meeting which was attended by both Sir Martin Sorrell and Alan Jope, (President Personal Care Unilever). Alan gave an inspirational speech (with no charts or notes) as he talked about their 5 Personal Care billion dollar brands: Dove, Rexona/Sure, Axe/Lynx, Sunsilk and Lux, as the main drivers of future growth along with innovation/ acquisitions to meet new consumer trends in particular within naturals and therapeutic. So big brands are not dead but very much alive and growing as our recent BG20 thought piece concluded!

Alan talked about the micro segmentation of consumers, hyper targeting of channels, new channels and channel fragmentation. Existing models are not set up to deal with this complexity and managing across the many silos within Unilever does not make this any easier. His main point, however, was around content; in the future will there be paid media or just interesting content that people want to watch?

He challenged us in a few ways. Firstly, he reiterated that we are partners and that we can and should challenge them. We should always know who the decision maker is and if our contact doesn’t know then we should not do the work. This is great advice given increasingly complex client organisations and we should apply this to any client conversation, not just for Unilever.

He also challenged us to bring new brand ideas to them and for me this links to the quality of the work we do – is it simple, clear, visual and focused on both the action they should take and the financial quantification if they do take that action? It also links to how we say it, as ‘it’s not what you say but the way that you say it’. Often consultants have a lot less data/insight but are confident and always have a point of view. The future for Europanel will be about ‘Global Consumer | Simply Delivered’ together with great insights that Clients want to engage with. Data, on the other hand, will be a commodity and will be in abundance.

Alan’s final challenge was our complexity and silo’s, especially with regards to the number of different brands (most of which he doesn’t know). His challenge, as was Sir Martin Sorrell’s, was to introduce ourselves and focus on our expertise rather than the operating brand to which we belong.

This brings me to the second area I wanted to cover and that is around the role of Europanel and our expertise. As International Clients become even more sophisticated and local players look across borders for growth opportunities it becomes increasingly important that we align as a business and play to our combined strengths within local markets but also use the knowledge and expertise that is Europanel for joining up costs/managing multi-country data and to provide consistently high quality approaches and standards.

We are seeing an increase in our local countries quoting for international work and this puts us at risk of providing different pricing/approaches/re-inventing the wheel and competing with ourselves. We have a very simple/consistent approach to pricing within Europanel that involves our commission scheme but also added value on top of the local prices (which we align using our global pricing principles/calculator) to reflect global servicing/workshops/presentations – these take time and can often be under costed which is not a sustainable model for our business.

So when you receive international requests at a local level please pass these to Europanel where we would really value your support/local knowledge and will, of course, collaborate with you to give the client the best possible experience and increase our chance of winning.

On a final note you should have all seen our thought leadership ‘Once is not enough’ we now have a short video to promote this work so please share with your LinkedIn/Twitter contacts (https://youtu.be/cIoXA9b_IXw).

Here’s to a successful year end and all the best for a fabulous Christmas and New Year. It remains for me to say thank you for all your support, and collaboration, throughout 2017.

Helen and team Europanel.

Key Accounts

At the start of 2017 we identified the need to connect with the newly formed CMI Centres of Excellence (CoE) – for example Shopping & E-Commerce, Connect (for media measurement), Innovation (known as U-Innov8) and to work more with Customer Development teams in market and from a Global perspective. We have made great progress throughout the year with Customer Development (and a few recent projects are referenced below). It is also fantastic to report tremendous success with the U-Innov8 CoE; this week John Truelove landed a meta-analysis on Incremental Innovation with the CMI Leadership Team and U-Innov8 CoE. This project is shaping how Unilever test and measure NPD success, putting increased emphasis on incremental sales achieved by launch initiatives.

We are also spreading our influence across CMI with BG20 and the Thought Leadership paper, “Once is Not Enough” – this landed well at the senior levels of CMI and a spin off project has already commissioned to create a growth model for Unilever brands.

At Unilever’s global office in London there is some uncertainty ahead of the merger and relocation of the Foods and Refreshment divisions. The divisions will combine as Foods and Beverages and relocate to Rotterdam. For our part, we are anticipating greater requirement to work with CMI and Marketing in Rotterdam from the second quarter of 2018.

2018 contract discussions, led by Helen Passingham-Hughes, Kat Castro, Andy Parkinson and Raj Halabi are ongoing, and initial feedback on the new service model has been positive.

 

Personal Care

The Personal Care team are working on a variety of projects with common themes emerging across the categories. We are helping Unilever to understand penetration decline, with a focus on category consumption and simplifying routines in Hair, Skin Cleansing and Skin Care. Portfolio optimisation is still a hot topic for Unilever PC, keeping the team busy with duplication maps projects on Deodorants, Hair Care and Skin Cleansing. Millennials remain key in Oral Care, but we have recently shown Unilever that across Personal Care the opportunity among Gen S is much bigger. The Skin Cleansing and Deodorant teams are looking at E-commerce opportunities. Hair Care have recently delivered both Dove and Sunsilk global brands with great feedback from VPs and are preparing an Innovation Strategy workshop with Kantar Futures.

 

Foods

The Foods category is currently experiencing a period of turbulence with the impending merger with Refreshments and movement of all global roles to Rotterdam in 2018. Despite these challenging conditions we have recently won over €100k of ad-hoc revenue through integrated Kantar First partnerships and GBS solutions. This includes a UK pilot to link Kantar Added Value Demand Spaces to Kantar Worldpanel consumer panel data and work with an external consultancy (Mars Synergies) to evaluate ‘growth pathways’ for Knorr bouillons and Hellmann’s mayonnaise in the UK. Both pilots are scalable across categories and countries meaning potential future revenue and can be delivered on any client, so please speak to John Truelove or Leon Palmer if you would like to understand more about these solutions.

 

Refreshment

The Refreshments team have been working on several cross-Kantar projects. In Russia the Kantar Added Value Demand Space model was built into the GfK panel using a LinkQ and used to find and quantify opportunities in Tea. The team is looking at repeating in KSA & Egypt. In Mexico the team used the new Consumer Watch survey to support a Kantar TNS pilot of their new ChatBot, which used artificial intelligence to interview 100s of individuals about Ice Cream quickly and efficiently.

 

Shopper/CCD

The Shopper/CCD team are working on a couple of big projects with new and senior contacts.

Unilever Global Brand Team asked the question : ”How many Unilever brands do shoppers buy in a year, and how much further could we push our portfolio cross-purchasing?”.  A project is in progress for Indonesia, UK and Brazil with €19k revenue confirmed.

There is also an AS Watsons Review for the Global Health & Beauty Stores team looking at the performance in Asia with Haircare conversion the key focus.  A project is in progress for China, Thailand, Philippines, Indonesia, Taiwan, Malaysia with €5k quoted for selected KPIs.

 

Homecare

The Homecare team have recently re-packaged  all the work delivered this year on how to drive penetration in a newspaper style format, aiming to drive impact and use of learnings across global, regional and local teams.  Alongside this summary we  delivered a meta-analysis of all the potential drivers of Penetration across all HC cells including media spend, AI, Ad Scores, format growth, benefit growth, distribution, pricing as well as macro category drivers. This is the first time such a wide number of drivers have been looked at in a consistent manner across HC, highlighting key learnings about the impact of macro drivers as well as implications of reducing media investment. We have also been looking at how to drive growth of Sunlight in Europe, Unilever’s Stain Removal strategy in Brazil, and new innovation strategies for GB.

Global Update:

We are hearing about a new CMK restructure without more visibility or information at this stage. One big trend we are observing and which presents  a future challenge to us is how P&G are staffing and structuring themselves with Data scientist roles, training their people on robotics and AI possibilities.

As a consequence, we have received more requests recently for more granular, even disaggregated data for them to be able to work directly on it.

It shows more and more how intentional P&G is at building and keeping their capabilities internally, how important the data is to them, and how they question and challenge the usage and value of our teams.

One big area of opportunity, on top of R&D, remains category consumption drivers and modelling for category consumption, in particular for saturated geographies.

We are continuing making good progress on our Global shared goals objectives, and the associated 15 initiatives which will take us to our ambition. As an illustration, our FY1617 top global 10 projects Insight Highlight is now ready to be shared; we have started our 3rd project to deliver Great Cross Country insights; we have deployed Quality process as part of our Roles & Responsibility clarification.

And even if P&G are under pressure, we intend to continue to help them find the shoppers they need, identify growth opportunities, and building product superiority. We continue to do that within each set of pillars and categories.

 

R&D

R&D, one of the global 15 initiatives mentioned above, continues to be a strong growth engine to Europanel, with more and more HHP Product Experience questionnaires, but also with extended contacts in their teams, and openness to try new capabilities and use the panel in more progressive ways. One active discussion is how our panels could be used as single source value for some Usage & Attitude surveys.

 

Hair Care:

We now have a new Global Beauty President since July who is challenging and questioning all previous plans and knowledge. There is high uncertainty.  At the same time, the CMK Hair care global lead is transitioning out and a replacement joining.

We had a recent EIMEA service review with the B4 for the region who shared some very positive feedback, and interest at knowing more and exploring more our capabilities and asking for innovations on our approaches.

Some current live proposals are Lifestage in Europe, and Pantene in India, as Pantene India is one of the main cells to turn around to positively impact IMEA.

 

SPC:

The skin care team at P&G have been going through transition at P&G with new leadership. As this settles we are starting to see a shift in focus toward younger shoppers. The limbo over the last few months has presented a challenge around priorities and it has been hard to get commitment over priorities let alone revenue. Hopefully as the new leadership is starting to settle and a new strategy emerges, we can find some new revenue opportunities.

 

Baby&Fem

We are working on deep dive into French Fem market to understand drivers of decline and identify action plan. One Hypothesis is the negative buzz around Toxic shock syndrome & chemical substances in femcare products (especially for Tampons market). Previous tests done by P&G suggest that 80% of consumers are aware of safety concerns. We are planning to test this hypothesis with a LinkQ REACT questionnaire and are fine-tuning the proposal.

In Babycare, a large active project in Germany and France focuses on understanding which diapers attributes are important (price tier, size, pants or taped), and correlate with repurchase, thus identifying which should be targeted and communicated to consumers.

New BFO global contacts were successfully identified and we plan to connect with them and tap into new budgets, as CMK budgets in Baby Care were cut strongly at RBU level.

 

Fabric & Home:

Some of the large changes happening in the world of CMK are appearing clearly in F&C: job cuts on P&G FC side, Global team to be reduced, with more responsibilities going to the regional teams, and budget reduction.

Budget cuts are reflected in our day to day work : we almost sold a LinkQ React on a very appropriate case study and from one day to the next the opportunity was gone with P&G saying they will provide conclusions based on hypothesis without data to concentrate the money on core studies like innovation qualifications.

 

Grooming & Oral:

Following their annual summit in Boston the Gillette team are looking to large packs and expanded consumption to help drive growth, moving away from a previous focus on premiumisation. Related to this we’ve had a strong quarter with a Blade Consumption Rate Analysis using disaggregated data sold across all 8 contracted markets for Male B&R and a further 2 for Female B&R with a total value of 127KE. We’ve also had other successes in last couple of months with a Disposables to Systems chains analysis being sold in France & Italy (50KE total) and a pricing analysis in GB (35KE).

On Oral care, it’s been a very quiet year so far revenue-wise outside of a handful of Usage Care projects however there is now a new CMK EIMEA lead who seems more engaged with our capabilities. He’s already purchased a LinkQ in GB relating to their new super premium Gum & Enamel Repair toothpaste and is keen to replicate in France. He’s also interested in applying a similar approach to the Gillette Consumption Rate analysis to toothbrushes.


Key Strategic Accounts / Business Development

The key objective of the team is to deliver value and thought leadership to the established accounts whilst developing and introducing smaller or new accounts to the value of international panel data.

Away from home and e-commerce are big focus areas now for both CCEP and TCCC:

An e-commerce plan has recently been defined and we are working with the regional teams to build their e-commerce knowledge

Coke are talking to agencies such as Nielsen CGA to find the best solution & supplier to get to more consistent & ideally higher coverage away from home EPOS or audit data. They see panel as separate and complementary, but we plan to make sure our capabilities are known

TCCC WEBU (i.e. the Western European regional team) have asked to start exploratory conversations with us about data integration. The vision is to integrate data from a modelling perspective across their protocols (mainly contracted to GfK/KWP for panel, Kantar Millward Brown for ad pre-test, brand health and campaign analysis & Kantar TNS for consumption landscape studies)

HH Panel+ data continues to be mined. This was a 7 country panel recontact/LinkQ project asking panellists about a recent trip to understand path to purchase. The current project is to size the opportunity for individual retailers using the panel data, then showcase how to unlock this growth via identifying the drinking moments to prioritise and using HH+ to work out how to activate against these. Coke believe large scale panel recontact surveys are a great way forward for the future, but have challenged us to innovate so that this is a much leaner and faster process as they believe that otherwise the business dynamics won’t allow them to use it.

Marie-Anne Lezoraine arrived back from 2 years at KWP Indonesia this week and will be the Europanel Coke lead again whilst Katherine Roe is on maternity leave. Marie-Anne will also be leading our Europanel work stream focus for 2018. Welcome back!

We are currently supporting Nomad on their strategic pillar ‘’win in store’’ developing a shopping mission segmentation in Sweden and Italy. The project is worth €40k and is going to be delivered to the country teams considering the specific market implications.

The Global team is asking for easier access to data (this considering the contracted information is all locally delivered). Our GDS / Reporting team is working on a global report that collates the information Essity has access to in the countries in one report. GCD is the next natural step and budget is under discussion at the client.

We have received very interesting questions from the client, particularly on the performance of small and local brands vs big players and on how the development of e-commerce is impacting consumer behaviour. A BG20 approach worth €40k has been proposed although currently budget is frozen and this suggests the project will happen in 2018.

The contract for the next 3 years across 11 countries is under discussion. We expect reductions due to the client budget being cut by 50% in 2018 but the total value is still very relevant for our business (approximately 560k euro)

The contract has been confirmed for the next 2 years in France, UK, Germany, Spain and Italy. This is positive news considering the ZBB in place at the client.

Lipton Ice tea is a joint venture between Unilever and PepsiCo. We recently delivered a presentation to Lipton PepsiCo on the beverage landscape, highlighting opportunities for the brand to win from adjacent markets. The presentation received very good feedback (with over 10 people attending) and we believe the project is going to be the starting point for future opportunities.

Have recommissioned the pyramids analysis which was first run two years ago. Value over €100K.

There have been a number of requests around butter and margarine following the proposed sell-off from Unilever. Proposals of €200K are outstanding.

There will be a new initiative launched in 2018 which details successful / outstanding and declined proposals from our requests, thereby giving more information to our country partners.


Pitches

As a global pitch team our aim is to maximise the total value to the group, and to ensure the client has maximum benefit from our data and services.  Our global pitch team has expertise in negotiations, dealing with procurement, and contract/legal questions.  We have recently made behind-the-scenes improvements in how we run our major pitches which is now resulting in even more impactful, more aligned and more efficient pitches.

Pitch activity is very strong at the moment with live pitches from:

Live Pitches

We expect to roll out the new Nestle global MSA within the coming 5-6 weeks.   This will affect all markets and panel services from 2018 onwards, whereby all country panel contracts will need to be signed off by Nestle centrally and will need to follow the global commercial framework.

We are in discussions with Unilever to finalise a new 3 or 5-year contract which will come into force from 2018 although timing may mean rolling over if the current contract until we fully align/embed a new approach.   Within this a renewed service design will make our client offering more impactful and streamlined for their business, increasing our efficiency in servicing Unilever in the process.

We are currently in discussions with Mondelez for a global MSA.  The client wants a globally flexible service which entails a standardised data subscriptions and regional servicing teams across Latam, Asia and Europe. We are currently building new pricing scenarios and discussing with the client globally.

The client has in principle agreed to a 2+1 year agreement covering markets in Asia and Europe. Contracts will follow shortly.


Completed Pitches

3-year, 20-country contract signed thanks to the extensive support and collaboration of the GfK Germany team.  This is Europanel’s first significant contract with a global retailer and is allowing Lidl to maximise its growth across Europe.

3-year, 17-country agreement, marking Friesland Campina’s first truly global agreement and instrumental in realising their global ambitions.  Global minimum client investment target of €2.5m/year stimulates further growth.

Renewal covering 2018-21, across 9 markets.  Revenue for the group is down following Kellogg’s recent poor financial performance and subsequent budget pressures.

2 year contract covering Kenya, Russia, Saudi Arabia, South Africa and Turkey


Expected Pitches


We would like to welcome our new colleagues

Conor Merrigan

After a long time in Dubaï, Conor was studying International Politics at King’s College London. As a start, Conor will work 50% of his time on Fabric and Homecare and 50% on Grooming and Oralcare. He will be based in Hanger Lane.

 

Divya D’Cunha

Divya was previously working for KWP India with Marico as one of her key clients. She will be based in Hanger Lane permanently and serve P&G Fabric and Homecare for EIMEA scope.

 

Paula Carravilla

Paula was previously working for Nestlé in the KWP UK team. She will stay until February in HL and then re-locate to our GfK Italy office. Paula will focus first on P&G Fabric and Homecare and then split her time between Fabric and Femcare categories.

 

Oscar Chala

Oscar joins us from KWP Equador where he managed a team of 11 people and a range of clients. Oscar will replace Julie Pons, in charge of New Business and a range of Beauty and Alcohol clients and will be based in Hanger Lane.  Oscar has previously lived in France so is a fluent French speaker in addition to his Spanish and English.