Revised go-to-market plan.
Breville is investing in its go-to-market program to accelerate the business and transition itself from an Australia company, which sells products globally to a truly global business selling products locally.
At the company’s annual general meeting today, Breville chairman Steve Fisher said, “During the year, under the leadership and vision of CEO, Jim Clayton (pictured), the Group refined its strategic path and is now in the execution phase of its go-forward transformation program to accelerate the business.
“The transformation program includes faster product development cycles and global product launches, an end-to-end transformation of our global go-to-market and supply chain processes. The transformation is on track and the Board is encouraged by the transition.
“In addition to the expansion of our distribution partnership with Nespresso to also include North America from the second half of FY17, the global product team worked with Nespresso to successfully develop two Breville Global products – the Creatista and Creatista Pro. These products have been released to the market earlier than originally planned and the go-to-market teams have aligned their efforts to launch these products in a coordinated way globally – a first for Breville.”
Go-to-market transformation
The go-to-market transformation aims to improve how we engage with our customers across every touch point, according to Breville CEO, Jim Clayton. The omni-channel program is composed of three core pillars:
- Every Screen
We have a mobile site to help consumers learn about the core elements required to make barista-quality coffee at home. Supporting this framework are a series of video clips, helping consumers better understand the coffee making process, as well as how Breville products are able to deliver exceptional results.
To promote the Smoking Gun, we have a microsite, promotional video, recipes and a clip that gives consumers an overview of the product.
- The Last Few Feet
We have new point-of-sale material in retail stores to articulate the key benefits of our products. These key messages echo and reinforce the information we are giving consumers in the website and supporting video clips.
- Culture of Launch
The Creatista is the first product to go through the new launch process. With new products historically, we would have mass produced the product and put it on the shelf. But with Creatista, we executed a host of activities prior to the actual launch of the product. The goal here is to help our consumers understand much more quickly what makes this new product special. If we are successful, it will materially change the revenue profile of the product itself. It is also worth noting that these products are launching in six geographies at basically the same time. This, too, will change the revenue profile, which required significant changes to the new product process to pull this off.
Corporate structure
We have flipped from a local company selling globally into a global company selling locally. This meant moving from a regional business structure into a centralised, global structure with multiple sales regions. Given the unique offerings in the ANZ market, we also separated into a two business unit structure: the global business unit and the ANZ region unit.
With the historical regional business structure, we effectively had five distinct supply chains. Over the last 12 months, we have merged these into a single, global supply chain. We implemented a global sales and operations planning process to manage the flow of all products we sell.
To optimise the performance of this global supply chain, we are in the process of implementing a consolidation warehouse. This will be operational by February 2017. With this new facility, we will be able to support our sales regions and distribution partners more effectively and efficiently. And, to create alignment with our new process, we are executing new supply agreements with all of our suppliers.
Trading update
Trading until the end of October has been broadly in line with our expectations despite business conditions remaining challenging, particularly in the Australian mid-market segment. November and December trading is always crucial to the Group’s results and as such, it is too early to provide more definitive guidance.