Success Case: SCO

Business Management, a model for the managing of Retail Channel

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Background

“Business Management” has been developed for a leading Software Company -from now on called the Client- , by the Sales and Consultancy Operations (SCO) at Marco Argentina.

The original project was created, in 1998, “to develop Retail Channel in Argentine Market and to commercialize the Client’s product categories: educational software and games, and PC accessories as mice (optician and wireless) and multimedia keyboards”.

Focusing on the Retail Channel in Argentina

In a chat with Franca Zunino, Regional Manager in charge of "Business Management” project for Argentina and Chile, she commented: “At the beginning, the Client did not consider a structure for the managing of Retail Channel. There was a single person in charge of understanding the whole complexity of the local Market”.

“Business Management" began as a Client support service offered by Marco, the project promoted to maintain and extend Brand awareness, by means a better handling of Client’s business regards Retail Channel.

The first stage consisted in following up software products, mice and keyboards, as for their exhibition at Points of sale. This meant checking and updating the information of products exhibited. There was a Marco employee whose job was to make weekly and monthly visits to the different Retail Channel Stores, located in Capital Federal and Gran Buenos Aires (GBA).

As for the second stage, SCO included to carry out Points of sale Reports. They reveled: the status of the different Retail Channel Stores, the positioning of Client’s products and brands, their exhibition on shelf (products display on exclusive stand or not), and their comparative’ products prices.

The number of Retailers has been growing, thanks to Marco customer service and attention to specific requirements on the part of the Client. Franca commented about this: “Years ago Fravega did not use to commercialize Client’s products. Nowadays, Marco has been extended Business Management to the main Retail Channel Chains in Argentina: Fallabella, Compumundo, Garbarino, Carrefour, Dromo, Musimundo, Yenny and Fravega”.

Business Operations and Forecast

As Business Management develops as an efficient tool for the Retail Channel, Marco has begun to handle all Business Operations for the Client’s product sales. SCO has started to develop sales Forecast for these products. This way, SCO has become responsible for managing sales figures and product volume, which will be commercialized through Retail Channel in Argentine.

In order to accomplish this, in Franca’s own words: “SCO considers the following stages: analysis, follow up and product’s logistics in the Retail Channel for Retail and Non Retail accounts. Marco designs a Product- Mix for each of the four product categories, according the annual sales targets set by the Client. After that, this Product- Mix was is presented to local Distributors, who place their purchase orders in the U.S and import the products and are in charge of logistics services in the local market ". 

At present, this sale process lasts between two and three weeks. This product-mix certainly acts as a Guide to what to bay for Wholesale Distributor and as well as what to sell through Retail Channel.

In order to develop the Product- Mix, SCO considers on the one hand the Retail Channel’s needs, which are the best sold and positioned products; and on the other hand, the client’s expectations as for annual sales volumes.

“All the information is processed by the MBI area", Franca added, “some other variables are also evaluated such as:  ‘what is sold to end-consumers, historical sales information and control of prices ", among others.

Thanks to Business Management, Distributors coordinate the client’s products “logistics and financial” operation; while Marco acts as Brand Representative at Retail Channels and takes care of “commercial and marketing” operations.

The expansion of the Business Management model

The good results and experience in managing the Retail Channel were reflected in the project is growth and its extension to Chile in 2001. The local structure was affected by the Argentine crisis, which took place that same year. As a result, the project continued on the Retail Channel in Chile, until the Argentine market recovered.

Months later, “Business Management” eventually evolved from a Client Support service to a System for managing the Retail Channel in Argentine and Chilean markets.

Today, this System extends its covering to 37 products (included four categories), exhibition share and store status; as well as the areas of Sales, Marketing, Category Management, Press and Non-Retail.

As for Marketing and Sales, SCO carries out design and development programs, such as Marketing Plan. This includes brand annual planning in the Retail Channel (concerning to communication and marketing strategies), according to Budget and Sales Target set by the Client.

SCO designs and develops the Planning for end-consumers and Retail Channel strategies. The first group covers the different annual Marketing Campaigns, such as Kid’s Day, Back to school and even Christmas. The second one includes Product Presentations to Incentive Programs, Special Events and as well as Training Programs for Retailers.

About Category Management, this response to logistics process: the visits to each one of the Retail Stores, which are made between two and four times per month (depending on the store). For Franca, “The day to day operational process” and where Marco is positioned as a “Brand Representative”. As for the main Retail Channel in Chile, there are Microplay, Ripley, Falabella,, Almacenes París and Líder.

Regarding Non Retail, “As for this area, we have began to work since 3 years ago. Non Retail in Argentina concentrates informatics stores, such as Computers Depot o Compumars”, added Franca.

New initiatives

SCO works together with the other areas of Marco for Business Management, such as Market and Business Intelligence (MBI) and Marketing Development Group (MDG).

• MBI: Stock Reports and Sales Report.
• MDG: The implementation of creative ideas for marketing action development in the Retail Channel. 

The idea is to identify business opportunities regarding the Retail Channel, with the aim to increase Client’s sales and profitability. Franca commented for example: “It was to develop promotional product activities with others companies, such as Imaging and Printing Firm”.

In addition, SCO organizes weekly meeting with the Client, Retail Channel and Non Retail executives, in order to maintain an open communication channel for each one of them. SCO has also developed contents and material for the Client and their associated web sites.

Today, eight persons make up Business Management personnel structure, four in Argentine and other four in Chile: Franca Zunino, Project Regional manager; Alejandro Acuña and Silvina Imbelloni for Retail;  Juan Pablo Lopez and Paola Espejo for Affiliated; Boris Campos, Susana Monroy and Leandro Taffarel for Outlet Coverage.