The market-focused organization
To implement the route to market strategy and align it with the route to purchase strategy an adequate organization needs to be in place. Organization is based on the structure and people, processes to link the different functions and activities, the tools to support the work, and competencies and culture.
Figure 4.25 Designing organizations
Basic organizational design: structure and people, processes, tools, and competencies and culture.
There is no perfect organization. An organization is always a tradeoff between how to best link and divide activities in terms of their effectiveness and efficiency. Depending on strategic objectives and priorities, as well as specific market challenges, different solutions can be optimum. In a market-oriented organization, particularly one focused on profitable sales and shopper market drivers, the starting point in designing the organization is to understand the market and the challenges that need to be met to reach its objectives.
Designing an organization centers around the activities that need to be performed, by whom these activities will be performed, how they will be directed, monitored and supervised, and where responsibilities will lie. Sizing the organization, i.e. which positions and how many people per position are required, depends on the complexity and diversity of activities, i.e. how they can be grouped, and what supervision and span of control each position needs. The organization is thus designed from below, from the contact with the market, upward to the required groupings and supervision of activities, as well as the required support functions. The size of the organization is ultimately a function of marginal productivity. Activities that are closely interlinked to manage and serve customers often have to be divided due to efficiency and competency issues. In the route to market sales, order taking and the supply chain are strongly interrelated activities, but are usually divided into different departments. Good processes are needed to coordinate activities for a coherent customer experience across departments and functions. A coherent coordination across the functions involved in shopper management has a positive impact on results?9
Positions and the expected activities and responsibilities need to be clarified through job descriptions and key performance indicators, i.e. job expectations. The objectives
Figure 4.26 Outside-in perspective of organizational design
Design logic of commercial organizations with the market and challenges as the point of departure. Starting with understanding the market and the opportunities, the objectives and challenges, understanding how to best reach shoppers through sales channels, intermediaries, and analyzing which are the necessary commercial activities and tire logical commercial structure to perform these activities.
Source: Author and expectations by function and area are also formalized through objectives with dashboards as a means of management direction, supervision and control, as well as performance evaluation. Measurement is key to understanding the situation and in developing improvement actions.40 Dashboards can be used across the key areas of the route to market, such as logistics, point of purchase management, collections and management control.
Further, tools to manage the points of purchase and the sales force are integrated sales force tools including activation, availability, and order-taking support. Through advanced data analysis, the performance can be monitored and improvement actions directed to identify and prioritize growth opportunities and competitive challenges.
Coca-Cola Femsa, one of the leading Coca-Cola bottlers, headquartered in Mexico, has launched a program of centers of commercial excellence supported and based on digital tools via their digital KOFmmercial platform. This advanced analytics platform allows the company to optimize prices and promotions, its customer portfolio and the facilitation of identification of additional market opportunities. In essence it is a platform for customer relationship management (CRM) that includes tools and back-office procedures for achieving granular segmentation, that allows the company to prioritize actions targeting specific clients to maximize the value of sales force visits and optimize the allocation of resources. The platform automates the sales force w'ith a mobile handheld device including sales quota measurements, prioritizing portfolio coverage, a module for specific initiatives, 360° client data and faster order loading. The KOFmmercial platform allows the company to digitally connect commercial, marketing, manufacturing, sales and distribution for higher effectiveness and efficiency.
The support tools, like dashboards and shopper marketing sales management tools, are part of a development loop to identify opportunities to improve and define corresponding actions. This allows the organization the advantage of a learning curve to gain competitive advantage.41 For this, an organization has to go beyond just reviewing results; it must also review' and improve the reasons w'hy it does things in a certain way, i.e., the assumptions on which the work is based.42 In addition, organizations need to review' the process of learning itself, the systems of analysis and the culture of reviewing and learning.43
Figure 4.27 Process flow map of channel management in telecoms
Example of process flow for the implementation and control of channel marketing action plans in the telecom sector.
Figure 4.28 Route to market dashboard
Example of the key dimensions of a route to market dashboard covering the areas of logistics, point of purchase management, collections and management control.
Figure 4.29 Femsa KOFmmercial digital platform
Overview of the digital commercial platform connecting key aspects of shopper marketing such as omnichannel and route to market to optimize and personalize initiatives and drive revenues.
SFA: sales force automation.
Source: Coca-Cola Femsa, October 2017
Figure 4.30 Organizational learning loops
The first loop focuses on solving problems and improving existing system. Double loop learning is the evaluation of why things are done and how they can be improved. Triple loop learning is a self-review of how the organization develops and learns.
Source: Adaptions by the author of Argyris & Schön, 1974; Argyris, 1977; (Argyris & Schön, 1978;