Posted Date: 5/9/2012
By Alliston Ackerman
With clever code names, including Pop Secret, Emerald and
Kettle Brand, Diamond Foods often
plays above the weight. Its products contest opposite food
products sole by informal and inhabitant companies, many of
which are incomparable and have almost incomparable resources.
The bottom line is that for a association of the size (net
sales equaled approximately $680 million in 2010), every
dollar counts.
"Our plan today and tomorrow will be to build brands
from the belligerent up as well as brand opportunities to
vitalise and supplement value by creation a applicable tie to
the contemporary consumer," says Marie Hanson, comparison vice
president, Sales, Diamond Foods. "Yet, we don't have the
oppulance of spending opposite efforts that don't provide
certain long-term returns."
So, when it came time to make an vicious investment in
improving the trade graduation strategy, Diamond Foods opted
to take a distributed track noted with due diligence
previously rather than the more common "spend and learn"
proceed of the incomparable competitors.
"At Diamond Foods, I'm most unapproachable of all the work we do in
allege of any module we deposit in. We do all the extra
little things that end up separating us from our
foe and mostly meant the most to our trading
partners," says Hanson.
Over the years, Diamond Foods acquired several companies
with different trade government business processes and
systems. Thus, a plan was franchised to emanate "best of
both worlds" processes using a new resolution and best
practices from each business.
Improvements were indispensable opposite a far-reaching spectrum of
processes, including direct forecasting, volume management,
graduation planning, bill development, lift simulation,
and trade analytics and reporting.
Doing the Homework
When acid for a new trade graduation tool, Hanson
complacent on personal believe operative for other companies
that had very formidable systems to navigate. From there,
she grown a very transparent viewpoint on what success
looked like using the right promotional insights platform.
Above all, it had to be accurate, discerning and easy to
work with.
"I wanted to safeguard that we cumulative a apparatus that was going
to be both stretchable for us to pattern around our business
and means to grow with us as well," says Hanson.
"Ultimately, we wanted a apparatus that would give all tools of
the classification the prominence they indispensable to run the
business."
After evaluating several trade graduation platforms, Diamond
Foods chose Oracle
Demantra Promotion and Trade Planning and set out to
exercise the suite's Predictive Trade Planning as well as
Deductions Settlement Management products over a
three-year timeline.
"We felt the partnership with Oracle Demantra could offer
us doing insights and assets that simply were not
available from the other providers," says Hanson of the
company's choice.
From there, several meetings ensued with members of the
Oracle group to safeguard that they knew Diamond Foods' goals.
Through those meetings, Hanson and her group gleaned
poignant discernment about how the partnership would respond
and develop toward assembly the objectives. From this work,
the association achieved a transparent and unfiltered line of sight
into how it would be means to maximize promotion
effectiveness.
Inspirage, a
consulting organisation specializing in the doing of
Oracle Demantra applications, was then selected as Diamond
Foods' doing partner. This was a required step,
according to Hanson, as Inspirage served as both an
pattern partner that could assistance them know the full
capabilities of what was purchased as well as act as a
passage for converting one trade system to another.
Keys to Success
Aside from selecting the right resolution and implementation
partners, Diamond Foods credits two very vicious stairs as
vicious to the new trade graduation strategy's success:
1. Clear Ownership: Ultimately, Oracle Demantra is
deliberate a sales apparatus used to run Diamond Foods'
particular businesses. Because the sales duty holds
insinuate believe of the patron and how Diamond Foods
goes to market, it was charged to brand pivotal stakeholders
for the height implementation. Based on the extensive
investigate of identical implementations in the industry, the
sales dialect confirmed tenure and led the
doing routine with care from the IT
function.
During the expansion phase, sales and IT intent multiple
departments in formulation discussions to know how each
user would perspective and use the information, and aligned their
objectives accordingly.
"We indispensable to secure insights as to what was indispensable by
other departments for the apparatus to be truly successful,"
says Hanson.
2. A Realistic Timeline: The doing of a new trade
apparatus is a long-term project. The suitable time needs to
be allocated for design, information cleansing, contrast and sell
in to the rest of the organization. Thus, Diamond Foods'
doing spanned 3 years, going live in August
2011.
Hard Work Pays Off
Now live, poignant value has been achieved. For example,
Diamond Foods now enjoys synchronized graduation planning
business processes for all of the brands.
"We now have a transparent line of site into promotions, allowing
us to make vicious time-sensitive adjustments as well as
envision what will work for our singular brands and
consumers," says Hanson.
The association is also enjoying softened internal
communications opposite different functions, which enables
fit government of budget, volume and forecasts.
For example, as Diamond Foods ceaselessly creates adjustments
to promotions formed on changing marketplace conditions, the
operations group can remove a foresee on a biweekly basis
and look for changes in both the shorter tenure and longer
term. In addition, the adjustments that are made by the
sales group assistance the operations classification look across
stream inventories and warehouses to safeguard that they have
the products in the right place at the right time.
Likewise, when Diamond Foods recently cumulative a significant
boost in placement with one of the retailer
customers, the comment finished by the operations team
(based on the same biweekly foresee review) ensured that
speed to shelf was maximized by carrying product prepared to
boat and placed on shelf as the modular space was being
reset.
The newfound capability to investigate the impact of promotion
to budget, volume, income and profitability during the
graduation formulation routine also helps the sales manager to
make sensitive decisions on efficacy of the
promotions.
Overall, these insights and capabilities will continue to
assistance optimize trade appropriation and grasp aloft levels of
partnership with Diamond Foods' sell partners.
"It's very sparkling to be part of a association that is gaining
and using insights and believe to successfully contest in
the marketplace," closes Hanson.
BRANDS BY NUMBER
• Emerald Snack Nuts: $1.1B category, 11.7 share, +2.3 share
points
• Diamond Culinary Brand: $580M category, 27.2 share, -0.3
share points
• Pop Secret Popcorn: $500M category, 27.4 share, +1.4
share points
• Kettle Brand Potato Chips: $3.3B category, 3.2 share,
flat
Growth Plans but Pringles
In Feb 2012, Diamond Foods and The Procter Gamble
Company jointly concluded to cancel Diamond Foods' proposed
merger of the Pringles business. The merger of
Pringles would have more than tripled the size of Diamond
Foods' break business, moving it to the No. 2 mark in
the tellurian delicious break category. The news of termination
left many scratching their heads. But Diamond Foods remains
committed to expansion in other ways, by optimizing the
strategy, opening and execution of each of the existing
product lines. For example, endless efforts are underway to
reset the company's walnut activities to residence the rising
direct and rising cost of walnuts. Meanwhile, Diamond's snack
brands have continued to broach clever sell sales, with
share gains for Emerald, Pop Secret and Kettle Brand in the
most new 12-week Nielsen tracking period.

