Growth Brand Planning & Execution Maturity Model

This maturity model represents the stages that growing brands have been observed to undergo as they build out and expand their planning and executional processes.



Level 1: Launch


Systems:

  • Spreadsheets.

  • Trade spend, promotions, and operational volume are all planned separately.

Demand Planning:

  • Planning horizon is roughly six months.

  • New distribution is marginally planned for.

  • Customer orders are not analyzed vs. forecast.

  • Customer behaviors and distribution timing are not considered in the forecast.

Supply Planning:

  • Production orders are planned from a separate spreadsheet.

  • Non-finished goods vendors are informed of the latest demand plan.

  • No long-term capacity planning.

Promotion Calendar:

  • Promotion planning is not systematic and is planned on a one-off basis.

  • No volume projections by promotion and limited follow through to ensure promotion is executed.

  • Trade spend by promotion is not tracked.

  • No post promotional analysis.

Trade Management:

  • Trade rates by retailer are not persistently tracked or budgeted for.

  • Retailer margins are largely ignored.

Trade Deductions:

  • Retailer or distributor deductions are not validated vs. forecasted spend.

Baseline Management:

  • Volumes are not regularly reviewed or maintained at the SKU level.

Cross-Functional Process:

  • No regularly scheduled S&OP review pulling together the cross functional team.

Management:

  • Management team has many unknown unknowns regarding the planning process.


Level 2: Early Stage Growth


Systems:

  • Collaborative spreadsheets or spreadsheet-like tools either live in the cloud or in a shared location.

Demand Planning:

  • Planning horizon of a year to 18 months.

  • New distribution is planned for at the product group level, but SKU mix and other details are not.

  • Customer orders are analyzed vs. the forecast in aggregate.

  • Consumption to delivery forecast is slowly developed as promotion volume offsets are implemented.

Supply Planning:

  • Long term capacity plans are created from the longer planning horizon, which are provided to non-finished goods suppliers and production teams.

  • Production plans are maintained on a collaborative spreadsheet.

Promotion Calendar:

  • Promotion planning is centralized across departments.

  • Volume projections by promotion are instituted.

  • Customer service identifies if orders conform to expected volume.

  • Trade spend by promotion is typically tracked, but retailer margin is still largely ignored.

  • Top-line post promotional analysis is tracked comparing quantities scanned vs. expected consumption.

Trade Management:

  • Trade rates by retailer are persistently tracked vs. a budget.

  • All types of promotions, including advertisements, temporary price reductions and coupons are tracked.

  • Retailer margins are projected.

Trade Deductions:

  • Typically, deductions are validated.

  • Actual vs. forecasted spend is still often overlooked.

Baseline Management:

  • Baseline volumes are reviewed at regular intervals and maintained at the SKU level.

  • Realized baselines inform the forecast going forward.

Cross-Functional Process:

  • Regularly scheduled S&OP review in which general variables are covered.

Management:

  • Management team is beginning to track variables that they previously ignored.

Level 3: Late Stage Growth - Current Modus State


Systems:

  • Centralized, integrated, structured, and collaborative platform purpose built for bottom-up planning employed. (Modus Planning)

Demand Planning:

  • Planning horizon is theoretically unlimited, however typically analyzed a year to two years in advance.

  • New distribution is planned for by SKU, store count, and distribution timing.

  • Customer orders are analyzed vs. forecast by line item.

  • Consumption to delivery forecast is refined as promotion volume offsets are implemented at the distribution center level.

Supply Planning:

  • Long term capacity planning is accomplished with production planning.

  • Production planning is reviewed weekly, which lowers inventory holding costs.

Promotion Calendar:

  • Real-time, centralized promotion planning.

  • Volume projections by promotion by retailer are reviewed.

  • Customer service identifies if orders conform to expected volume on the SKU level by reviewing expected customer days on hand.

  • Trade spend and retailer margin by promotion is tracked.

  • Top-line post promotional analysis is completed by comparing quantities scanned vs. expected consumption.

Trade Management:

  • Trade rates by retailer are persistently tracked vs. a budget.

  • All types of promotions including advertisements, temporary price reductions and coupons are tracked.

Trade Deductions:

  • Deductions are validated from actual scan data.

Baseline Management:

  • Baseline volumes are reviewed regularly and maintained at the SKU/DC level.

  • Baseline development is persistently tracked and actualized.

Cross-Functional Process:

  • All cross-functional members contribute to the forecast continuously to ensure accuracy.

  • Regularly scheduled S&OP reviews cover exceptions and trends.

Management:

  • Management team is better equipped to identify and address variables regarding go-to-market execution activity.

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