Tuesday 30 September 2014

Where now for Tesco NAMs?

Tesco NAMs have two choices:
  • Await a return to ‘normal’ (and join all those other NAMs that are still awaiting a return to ‘ normal’ trade management following the 2007 global financial crisis..?)
  • Or, accept that business is about making the best of the ‘here and now’….

Alternative actions?
  • Ignore Tesco’s troubles? i.e. business as usual: illogical, given that nothing in Tesco is or will be the same, ever again..
  • Do nothing? i.e. stop all initiatives: unwise given their 25%+ of the grocery market and equivalent access to ‘your’ consumer..
  • Tailored initiatives? i.e. based on based on current circumstances, as we know them…

On the face of it, Tesco, a new customer, is now in a mode that is
  • Ultra conservative
  • Risk-averse
  • Retro-focused and defensive
  • Under new management, but distracted by re-audit, legal, City/share-price, Government, loss of market share…to be followed by good people jumping ship?
  • Receptive to convincing ideas for growth, on a fair-share basis…
  • Driven by a new team that has to succeed…

The way forward for NAMs has to be via initiatives that are
  • Simple and direct
  • Defensible
  • Tailored to Tesco traffic-profiles (holding and optimising their current-customer types)

These initiatives must have
  • Conservative/achievable forecasts
  • Clear KPIs
  • A results-based reward structure
  • Error-free execution
  • 100% availability
  • Exclusivity in exchange for 100% compliance

In other words, the best opportunity you have had to work properly with Tesco in years…

No comments: