Marketing & Procurement - Q&A with Sinead Finnegan, The Kellogg Company
Marketing & Procurement - Q&A with Sinead Finnegan, The Kellogg Company.
Marketing & Procurement can be Good......but Together They’re Grrrrrreat!
To find out what they do and how they use it to maximise the Kellogg’s brand we spoke to Sinead Finnegan, Senior Strategic Business Partner- Marketing at The Kellogg Company.
What is your internal structure within procurement and marketing?
Kellogg Europe is split into two businesses in Europe.
1) Snacks Business lead from Geneva
2) Cereal Business Lead from Dublin
Procurement
Strategic Procurement is managed across both business with the team split between Geneva and Dublin. This decision was made in order to leverage scale and strategies across both businesses. Tactical Procurement is managed from Dublin with a Team based across Europe including support in all manufacturing locations.
Marketing
Snacks Marketing is lead from Geneva with a central team split into 1) Media & Ops 2) Insights & Planning 3) Innovation 4) Brands responsible for leading the strategies and local teams implementing strategies in local markets.Cereal Marketing is lead from Dublin with a central team split into 1) Media & Ops 2) Insights & Planning 3) Innovation 4) Brands responsible for leading the strategies and local teams implementing strategies in local markets
How are internal decisions made within your company on marketing spend?
Decisions for the central Teams are made in Dublin and Geneva. Budgets are created between each division in conjunction with Financial business partners. Local country budgets are managed under local P&Ls. Once budgets are finalised they require approval from VP of Marketing and then they go to the European Leadership team for approval.
How do procurement work with marketing to not REDUCE spend in marketing but to make the spend more efficient, releasing more of that money to be used in other marketing activities for building the brands further?
Kellogg operate a model called ‘KIMM’ (Kellogg Integrated Market Management). Ideation sessions are conducted to highlight potential opportunities to reduce costs. These are then used by procurement to define the opportunity further including project scope, timeline and guidance on expected savings. These are then submitted to the VP of marketing for sponsorship and support including resource if necessary. After completion of the project a forecasted 12 month saving is generated for signoff from all stakeholders and finance. Once the saving is achieved Finance and Marketing review this saving and agree how it will be managed (reinvested/ reduced budget) etc. This discussion is separate to the savings generation and procurement do not input or influence this. By keeping this separate, Marketing now see procurement as a true partner who is not controlling their budget but instead supporting them in generating better value for money.
Marketing spend and ROI are notoriously difficult beasts to measure and control. What strategies have you developed to make measurement and management more accurate, without stifling the creativity and responsiveness required to maximise success?
Kellogg have a procurement consultant whom they partner with to manage spend data. From the consultant’s online procurement tool we are able to generate many reports to highlight spend by category, region, country etc. All New Suppliers need approval from Vendor Master team and all spend over an agreed value requires procurement approval.
Kellogg’s Marketing Teams have several analytical partners measuring the success of each of our campaigns, this is closely linked to Supplier performances and there is an SRM program in place to feedback to Suppliers. While we have all these measurements in place we still have some difficulties pinpointing which investment was responsible for the success of a campaign as it is often subjective and difficult to access.
What strategies and techniques are you currently working on with marketing, and what are the biggest challenges to implementing them?
Centralisation of Suppliers and spend. This leads to better efficiencies and ensures we create consistent workflows, standardise processes and leverage our European scale. The biggest challenges are getting the buy in from local countries. Because we have moved from a decentralised model many countries had long term relationships with local Suppliers and have not wanted to change. They also had their own P&Ls and were therefore only focused on local success. In order to manage this and to expedite implementation and success of new projects the P&L’s have moved from local countries to the Business units.
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