Ongoing Changes are activation changes that are intended to be permanent during the next planning cycle until changed again in a subsequent planning cycle.
They are different from Promotions, as after they start, they last for the whole of the rest of the planning cycle rather than just being temporary changes.
Ongoing Changes are typically either used to drive a long-term change in shopper behavior (e.g., loyalty) or a specific financial objective (e.g., margin).
To create an Ongoing Change, you first need to click on '+Add Component', 'Ongoing Change' and add a 'Name' and 'Description'. What you add is up to you e.g. 'Fizzy Pop NPD / New range of low calorie drinks', but bear in mind this will be visible to the retailer.
Once you click 'Save' some new tabs will appear, and you need to click on the 'Calculations' tab and proceed to 'Add Calculation' to financially value your Ongoing Change.
A new Calculator will appear, and it's here that you can choose the Type from the drop-down. The following Ongoing Change Types are available:
Cost Change - A change in the supplier’s ongoing cost price to the retailer which may or may not be accompanied by a retailer selling price change
Inline Fixture Change - A change in the inline space, location or fixture surrounding the retailer's shelf(ves) allocated to the supplier’s product(s)
Secondary Location Change - A change in location of the supplier's product(s) to one or multiple locations beyond it's inline location on the retailer's shelf(ves)
Listing Change - A new listing by the retailer of an existing product(s) in the supplier’s portfolio
Innovation - A new listing by the retailer of a new product(s) offered by the supplier to fill a market void
Packaging Change - A change in packaging of the supplier's product(s) already listed by the retailer, including the size of the product
Store Coverage Change - A change in the number of stores the supplier’s currently listed product is available in
Marketing Communication - A change in the ongoing communication or broader marketing the retailer uses to build understanding of the supplier’s products with its customers
Custom Change - Any type of ongoing change activation that you do not feel is adequately described by the other ongoing change types offered.
Once you've chosen the Calculator Type, you need to select the SKU(s) this Ongoing Change applies to. An SKU is the stock-keeping unit that denotes the exact product a retailer sells to its customers. You can either pick the individual SKU one by one or choose a defined group of your SKUs by picking the Sub-Category they all sit in.
With the products selected, you now need to define the Weeks when the Ongoing Change will occur. It could happen from the very start of the year, or you may decide it won’t have an impact until later in the year. It should last for the rest of the year from when it starts. Pick the relevant weeks, months, or whole year.
You now need to capture any Fixed Investments associated with the Ongoing Chnage. These are payments you make to the retailer so they provide support to increase the visibility of your products to the retailer's customers. Click on '+Fixed Investment' to add a new Fixed Investment, choose a Type from the drop-down menu (these are pre-loaded by the retailer), and select the weeks the Fixed Investment needs to run for, e.g., flyers for the first 4 weeks to announce a new product to fill a Market Void.
You should then confirm the Store Volume Coverage %. This is the proportion of the SKU(s) base volume that this Ongoing Change applies to. If the SKU(s) is in all stores, the Store Volume Coverage is 100%. If the retailer has 1,000 stores, all with similar ACVs (All Commodities Volumes), and the SKU(s) is only in 500 of them, then the Store Volume Coverage is 50%. But if 100 (i.e., 20%) of the retailer's stores deliver 40% of the combined ACV and the Ongoing Change only applies to these 100 stores, then the Store Volume Coverage is 40%.
You can now start to complete the rest of the input fields to your chosen Calculator. These fields will vary according to the Ongoing Change Calculator Type you chose.
Volume
Increase or Decrease % - The uplift or decline in volume of the SKU(S) involved relative to the base volume.
New Volume - The estimated annual new volume associated with the retailer stocking a new SKU(s) where there is no base volume history to derive the calculation from.
Cost
Increase or Decrease % / $ - An increase or decrease in the supplier’s cost price to the retailer. It can be a percentage of the current cost price or an absolute amount and needs to be entered for a supplier cost price at the consumer unit level rather than for a shipping case.
New Cost $ - The supplier’s New Cost price to the retailer for the SKU(s) involved. This is the actual new cost, rather than a variance to the current cost inputted as a Cost Increase or Decrease % / $.
Selling Price
Increase or Decrease % / $ - An increase or decrease in the retailer’s selling price to their customer, in percentage terms or by an absolute amount, for the SKU(s) involved.
New Selling Price $ - The retailer’s New Selling Price to their customer for the SKU(s) involved.
Once you have completed the required input fields and clicked 'Save' the new Ongoing Change will be created and valued.