FMCG Blog FMCG Views and News

I have just finished reading an article in Forbes magazine with the title How to Manage your Business in a Recession; written by Geoff Colvin. It was in the Jan 26 issue and I loved it.

One of the paragraphs or tips that really related to FMCG people is the one titled Reevaluate people - and steal some good one. The point that is made that is you ask all your employees to take the same hit in terms of salary and bonus then you may have negative impacts. The across the board action give the sense that “we are all in this together team”. But it ignores that fact that you have a number of high performers who are still performing and don’t deserve the same hit as those who are not performing.

It is is time to reassure your high performers and continue to reward them. Otherwise your competitors will be scouting for talent and find your disenchanted “punished” talent.

Remember across the board cuts is not management, it is just reactionary, manage expenditure and people to get the best results.

Tim

Posted under News

Job ads took their biggest monthly fall since internet and newspaper ads were combined in 1999, dropping 10.4per cent in February to 161,583 a week, or 39.8per cent lower than a year ago.

Posted under Uncategorized

Hi,

I am fascinated by these Craig posters. Who is he, does anyone know him?

Signed Craig No.3

Signed Craig No4

Tim

Posted under Uncategorized

Hi,

this is way off topic but very strange and amusing. Has anyone else spotted these posters appearing in Melbourne. They are signed Craig and he has some strange ideas.

Here is the first two, I have more to post but I will put them up progressively.

Craig's Poster No.1

Craig's Poster No.2

Tim

Posted under Uncategorized

The Age has picked up on the Coles Trading Terms issue in today’s paper and online. In an article by Ari Sharp it highlights the tension between Coles and Suppliers and indicated that there are ongoing demands for more terms and the offer of nothing in return. That is except if you count maintaining your listings or reducing your losses as nothing.

Bend Over

The money is being earmarked by the buyers as for “Store Refurbs”, and there is no negotiation, it is take it or leave it.

Have a read of The Age article and comment if you dare!

Tim

Posted under News, Retailers

Interviewed on the ABC’s World Today last Friday, Woolworth’s CEO, Michael Luscombe described the job losses at Pacific Brands as a “Tragedy”. As reprinted on the ABC website;

“MICHAEL LUSCOMBE: I think it’s a tragedy that we are talking about anybody losing their job let alone 1800 people. We have worked very closely with Pacific Dunlop because, you know, this has been a business that has not been without its challenges for a number of years.”

Give me a break, it is Woolworths and Coles who brought these job losses about. The vast majority of PacBrands products are sold through these two retailers and their subsidiary outlets.

Coles’ and Woolworth’s buyers have continued to put pressure on prices, both everyday and promotional deals as well as adding to the costs of doing business. Increase in trading terms, pushing logistics costs back onto suppliers, reduced ranging, increase in Home Brands etc.

It is a tragedy that people all over the country are losing their jobs, but take some responsibility Mr Luscombe, don’t start crying crocodile tears.

Tim

Posted under Jobs

I am starting my Twitter experience today and will start posting FMCG jobs on Twitter.

Please sign up to my posts at http://twitter.com/fmcgblog

please give me any advise or feedback.

Thanks

Tim

Posted under Uncategorized

SEEK announced a profit of $32M profit for the Six months to Dec 08 on a turnover of $109M. What a business! Wish I had some shares as they rose 15% on the announcement as the market feared much worse.

It is plain to see that SEEK has a dominant place in the online Job space with their competitors MyCareer and Career One an increasingly distant 2nd and 3rd.

Joint chief executive Paul Bassat made some interesting comments;

“One thing we are seeing with the downturn in the economy is further acceleration of the migration from print to online, with online now capturing 79 per cent of all job ads.”

As a long term investment, I see some problems with the SEEK business model, primarily, barriers to entry and secondarily, Web 2.0 and 3.0.

These are discussions for another time though.

Tim

Posted under Jobs, News, Uncategorized

Is this the worst job - being a Coles National Account Manager or Business Manager.  Competing against a heavily supported house brand, reduced promotional activity, reduced ranging, delistings and on top of that a request for more trading terms.

Request is probably not the correct word though is it?!

Any Comments, anonymous of course - use a  name like Idi Amin or Robert Mugabe.

Tim

Posted under News, Retailers

In an interesting, strange, unusual way Cadbury has been able to confirm a major appointment at Kraft.

In making comment in regards to Michael Magee’s departure from Cadbury a “Cadbury” spokesperson has confirmed he will be the new Marketing Director at Kraft Australia - the role vacated by Nikki Anderson.

B&T has reported a Cadbury spokesperson said

““Michael has left to go to Kraft. We are
undertaking a search to replace him. This is an ongoing search that
will take place as we split the confectionery brands from the drinks
side of the business.”

I wonder if Kraft will be able to confirm who the new Cadbury Marketing director will be?

Tim

Posted under News