Commercial Update – Issue 4 – March 2018

Posted by europanel on Mar 10, 2018

2018: Strategy Update

As we approach the end of quarter 1, we already have much client and pitch news to share across our key International Clients.  Our extensive global network provides both a benefit to our clients and is a massive motivator to many of us. If only we knew what we knew as a collective network!

Europanel have had a busy start to the year planning for 2018. We are pleased to share with you our 2018 work-streams which reflect the priorities for this year. We review our work-streams each year as we re-align to our 2025 vision, aspirations and goals. In 2018 we have less work-streams which will enable us to focus our resources on what is most important. These exist alongside our International Client focus and plans.

A little bit about our 6 work-streams: Our people aspiration is to be ‘Experts known for our great attitude, collaboration and point of view’. If our people are engaged, have the right expertise, they will do great work for our clients. Our people work-streams will focus on what drives greater engagement, and collaboration, both within Europanel and within our greater country network.

We have two Commercial offer work-streams as our International Clients are always looking for new products and solutions to meet future needs or to improve/speed up what they get now. Over the last 2 years we have seen more International Clients strive to understand Shoppers, an area that historically had been the domain of local teams. Our Commercial offer work-streams are designed to land what we have been developing around Macro Category GCD and further develop Shopper Compass.

Shopper Compass is a new capability developed by Europanel to isolate groups of Shoppers who behave similarly based on their purchasing behaviour, built from BG20. These are built from a set of consistent rules across countries (loyalty based) to get a globally comparable set of shopper groups based on different purchasing behaviour. This enables consistent/accurate global comparison of shoppers who behave in the same way to compare their incidence (how many), evolution over time, purchasing behaviour in terms of brand/store choice and so on. Then most importantly, provides another lens for us to quantify shopper behaviour globally and find opportunities for our clients.

Our final two work-streams focus us on Client Impact through creating new ways of working that drive more internal efficiency to free up time for our Client facing teams. In turn our Client teams can focus on delivering more Simple, actionable, easily digestible, quantified insights that demonstrate future ROI.

We will keep you updated on the 2018 focus areas as this year unfolds.

Our next edition of this newsletter will focus on updating our wider network on the Global Client planning meeting in Madrid which happened in the Week commencing 5th March.

Happy Reading….

Helen

Key Accounts

Change is still on the agenda at Unilever, and several role changes within the CMI Leadership team were announced in January. Robert Kitching (previously Foods lead) is replacing Chet Henderson as VP CMI Personal Care. Chet will become VP CMI for Content, Connect & U-Innov8. Significantly for us, Vijay Raj will be appointed VP C&CD CMI NametRubAfrica & Asia whilst BV Pradeep will be Vice President C&CD CMI Europe & Americas, whilst continuing to lead MI and Shopping &e Commerce CoEs.

Christina Habib will lead the Foods & Refreshment CMI team in Rotterdam from April 2018. Many of the Refreshments CMI will move from London to Rotterdam, but very few Foods CMI people will be relocating. We are currently working on a plan to transition servicing to Rotterdam for the Europanel Foods & Refreshment team.

One focus area for the Europanel Unilever team is to build broader networks, to hunt for growth opportunities within and beyond CMI. There are some good examples of this happening this month as we make connections through to Dollar Shave Club, get closer to Marketing in Homecare and build impact with the U-Innov8 team.

GBS (Expert Solutions, Advanced Business Solutions) is also a key focus for the Europanel team, and we are making great progress with the Incremental Innovation Meta-Analysis project. This was presented to Unilever CMI Leadership Team and the Chief Marketing Officer (Keith Weed) at the end of 2017 and is now being disseminated across the Unilever Global Category teams. From UK, Brazil and China in phase 1 – the project has now been extended to include Thailand, Philippines and India, with more countries anticipated.

 

Personal Care

Unilever have many new launches planned for 2018 and are continuing their acquisition strategy, with Schmidt’s Naturals & Sundial Brands as the latest additions to the portfolio. Unilever continue to look for growth opportunities in PC, leading to exciting projects for us including a milder proposition for Dove, understanding colouring users in Hair, incremental penetration opportunities for Baby Dove, and a new pilot on micro-targeting through ‘life changes’ for hair styling in the UK.

 

Homecare

In Homecare, the year has started with a strong emphasis on marketing – specifically around crafting stronger and clearer Jobs to be Done by utilising and linking the insights we have available across the Worlpdanel and wider Kantar / GfK networks. This is a key a focus in the markets where Unilever brands are biggest, where we will use the latest BG20 insights to drive the right strategy for Unilever’s biggest brands.   We’re also exploring the different benefits available within Fabric Cleaning across 9 key markets to uncover future portfolio opportunities and influence innovation strategy.

 

Foods & Refreshment

There are some interesting projects in play across 3 key geographical clusters in refreshments.

In the UK we are exploring the single serve opportunity for Magnum, following the success of Magnum Pints.

In Indonesia, a proposal is being written to understand usage behaviour and needs for kids in ice cream.

In Russia, we have delivered a Tea Link Q where we took consumers who switched from tea to coffee and did a survey to understand this change in behaviour (€15k project). No surprise that 63% of those switchers claimed to be still drinking tea, so what people say and do are different! For those that were aware we found some interesting insights on why they changed and also clear differences in reasons for cohorts (millennials vs Gen S).

Results of a joint Kantar Added Value/Europanel Demand Space project will be shared with Unilever in February and the Global GBS team continue to work towards a rate card for Drivers of Trial.

 

Shopper/CCD

We have early connections to Dollar Shave Club through our Shopper relationships with Unilever. A Usage & Purchase proposal covering UK, France, Germany & India is currently live. As Unilever develops its consumer subscription model we hope to see investment in this area soon.

 

Europe

In the Europe team, the main interest is access to the wider grocery market, beyond the Unilever footprint. This is to better understand potential opportunities and threats to the footprint as well as to drive more strategic customer relationships.  We have a €68k proposal outstanding for value data for FMCG categories by channel. We are also having a discussion on Unilever share by named account Discounters. We will push for investment in more comprehensive access to be used throughout the year on their ongoing MI and CCD questions.

Global Update

2017 finished with the announcement that P&G had lost the proxy fight which had kept them busy and will see Nelson Peltz joining their Board from April. There are a lot of uncertainties while Q2 Dec 2017 results are out and share prices down.

We continue to face budgets cuts and opportunities are more than ever about replacing previous methodologies with a HHP one and co creating customised methodologies, such as the Media CMM China success that came through in January 2018 following some good work in 2017 in Germany and the “Life Moments” methodology which identifies points of market disruptions.

Using HHP as a substitute for other methodologies and making those scalable is at the core of our 2018 priorities and agenda for our cross country meeting in March, where we will also talk about Client Satisfaction via greater insight, and Team Engagement and ONE mind set.

 

Hair Care

Following the leadership change for both VP and the CMK B5 on hair care, we are in a “wait and see” period while the new team identifies the direction and strategy.

In the meantime, we continue to drive the quality of the work we do, by being innovative in some of our approaches (3 year continuous panel for a Spain Shampoo project), and exposing the Hair care team to new methodologies. We are however facing a lack of trust in our solutions, a lack of budget, and will need to show high responsiveness to maximise proposals and projects. In order to help here, the Hair care EU team has produced a global view of what is available where (thank you Julie). We are also pushing proactive proposals, like an Indonesia Hijab LinkQ, to identify new pockets of growth and innovation pipeline.

 

SPC

There has been an increasing number of conversations around optimising the P&G offer in Personal Care, especially in Asia, where we have been able to sell an Assortment Optimiser project for the Philippines.

 

Baby & Fem

Femcare and Baby Care have expressed a high level of satisfaction during a recent EU collaboration review, highlighting responsiveness, inputs into their strategy and direction, and ability to help them.

Baby is facing extreme performance challenges and have cut all budgets for now in the regions. Global BFO may have more to offer. A very hot topic for them is their ability to convert Tapped into their Pants business.

Femcare has seen the conversion of our first LinkQ React, on Tampons in France, one of the top priorities for the EU business.

 

Fabric & Home

Conversations on Fabric are surrounding forms, conversion to Unit Dose (where we have been providing various analyses across several countries, mainly around chains analysis), and managing powder decline. The other hot topic is around category consumption drivers, via expandability and regimen push of Color & Non Color.

Discounters and PL threat remains a topic of interest, as well as Cleaning Systems and their Swiffer brand. And this pillar of our team continues to have interest in understanding wider usage of their categories and alternative products, especially on Air Care and non FMCG purchasing, or Dish and Cleaners with natural trends.

 

Grooming & Oral

Gillette continues to operate in a very competitive environment. The growth of subscription services remains a big concern especially in GB with the launch of Harry’s Razors and Unilever’s Dollar Shave Club – currently we have limited ability to help monitor and understand this.

We have been providing consumption rate & expandability data to feed into P&G’s financial forecasting models, with some very good feedback received. There is scope to provide further data on Conversion Rates from Razor Handles to Blade Refills.

Gillette have under-taken a big revamp of their packaging to make it clearer and more consistent across their range. Monitoring the impact of these changes over the year will be crucial.

Oral Care

We finished 2017 with some positive revenue outcome on Oral care too.

One topic was about monitoring performance of super premium paste NPD – which we did using LinkQ in GB + FR to understand who’s buying and why. Another topic was to understand Power Brush conversion into refill heads, via a chains project.


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.

We recently took part in a successful “ways of working session”, joint across CCEP, TCCC WEBU, Nielsen and Europanel, to agree on how we can deliver more impact to Coke’s business in 2018, both in terms of focussing on Coke strategic priorities as well as a greater focus on key business questions and quantification of their impact on the Coke system

HH+ presentation for Italy has been well received and acknowledged by the client as a unique way of connecting missions, drinking moments and purchase behaviour, enabling new conversations with retailers.

As we head into the second year of the AED contract (Africa Eurasia Division), scope for this year is being confirmed, with additional categories being subscribed in Russia and South Africa.

We are also working with the global team to develop the servicing of the toothbrush category in China (EUR 55k), as well as other solutions for the category globally.

After a busy year end, we are now delivering many projects across Europe, including TPAs (turnover potential analysis), €60k, updated ecommerce report (€55k) and Paint a Picture analysis for Spain and Poland (€45k).

Changes are afoot in Ferrero as they continue their expansion in terms of geography. Following their recent purchase of the European biscuit manufacturer, Delacre, they have recently confirmed the purchase of Nestle’s confectionery business in the US.

Kinder Surprise has been a focus recently, with projects looking to support their new team strategy, including the toys (€35k) and their buyer base (€54k).

We have been speaking with Mars to establish dialogue prior to the global pitch (which will be next year ahead of a 2020 contract end date with Nielsen). Interestingly, when we pitched for the Global business in 2012 the total figure that we proposed was €6m (which excluded China) and Mars now spend around €4.5m, despite us having very little of their household tracking data (this does include China which is nearly €1m).

Mars have requested quarterly catch up meetings with us in order that we can share our ‘strategic plans’.  The first presentation of 2018 updated them on panel increases/ new countries/ developments in OOH and Worldpanel + – all of which were interesting to them.   They were especially interested in combining Household panel with Out of Home (which they purchase in Mexico)

Chanel Fragrance & Beauty team confirmed their Standard KPIs & Demo report for 6 countries in 2018; including Russia and Spain to their reports from Germany, Italy, France, and the UK.

 

We have assessed how we are tracking and communicating around new business requests and new business contacts in each country will soon be receiving the new business tracker, to update on the status of all new business requests.

All client requests where the client does not, to your knowledge, have an existing Europanel relationship should be sent to Jane Corcoran and George Harwood.


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.

Live Pitches

We reached a commercial agreement for the new Global MSA with Nestlé in December.  While the new contract text is being reviewed by their legal team, Nestlé have signed an extension agreement on the current contract.

A new centralised procurement structure at Nestlé will ensure that all countries comply with the MSA terms and incentives.  Please contact Tashman.Altay@europanel.com if there are any questions around these.

Nestlé is large and growing account, generating revenues of over $17m per year.  To further support the growth for countries we are in the process of identifying a Global Account Director who will help raise the profile of consumer panel at Nestlé headquarters and help to sell in multi-country solutions to their global category leaders.

We are still designing and refining the new Unilever service model. Due to the potentially game-changing impact of this more time has been required to get the service ‘just right’.

In the meantime, Unilever have signed an extension agreement covering all current renewals.  We are aiming to have a new agreement finalised by June/July

Mondelez have signed regional extension agreements to their current contracts while the global pitch effort continues.

Although the client is struggling with another round of top-down budget cuts, there is a renewed effort to increase the utility and visibility of panel insights into the business. For this our BG20 team have been invited to design a new approach to using panel insights to drive business growth for their Chocolates business.

Sanofi are keen to use consumer data to win in the OTC pharmaceuticals space.  We have been in discussions with them on how our consumer panels can help, and are in the closing stages of reaching a 2 year, €750k agreement spanning between 5 and 7 countries.

This agreement would be the first of its kind for a global pharma company, and would involve the setup of a new OTC panel in several markets, bringing new revenue opportunities to the group.

We have begun discussions with coffee specialist Jacobs Douwe Egberts to renew their 3-year agreement spanning 20 countries, and worth nearly €2m a year.


Completed Pitches


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.