Worksheet: Cascade the targets onto one page and review it monthly

One annual price target at company level tells nobody which category, channel or account is off track until the year is over. This sheet cascades this year's price and trade-spend-rate targets onto one page. It reviews the page monthly with variances explained, and puts the competitor price record on the same agenda. It builds the Competent step of the check:

Price and trade-spend-rate targets by category, channel and account are monitored monthly with variances explained, and the competitor price record is read at the same meeting.

Step 1. Cascade the targets onto one page

The lines must add up. Categories and channels each sum to the company figure. The top accounts sit inside their channel.

Level	Name	Gross sales target ($m)	Price target (% change in net-net per unit)	Trade-spend-rate target (% of gross sales)	Owner
e.g. Account	Retailer 1	48	+2.5%	24%	National account manager
Company	Total
Category
Category
Channel
Channel
Account
Account

Continue to your top ten accounts.

Step 2. The monthly review

Name the cause of each variance. The usual ones: a fast-growing customer on a higher rate, out-of-stocks on promoted lines, a one-off claim, or mix.

Line	Target	Actual this month	Actual year to date	Variance	Cause (price, mix, promotion, out-of-stock, one-off)	Action and owner
e.g. Pharmacy trade-spend rate	22%	24.1%	23.0%	+1.0 pt	Mix: the fastest-growing group has the highest rate	Channel manager reviews the group's terms

Step 3. The competitor price record, at the same meeting

Month	Items where a competitor's shelf price moved	Move	Our response, if any	Owner

Step 4. The meeting

Check	Done?
The one page goes out two days before the meeting
Every variance above the agreed threshold has a named cause
The competitor price record is read at the meeting
Last month's actions are closed, or carried with a reason

Done when: price and trade-spend-rate targets by category, channel and account are reviewed monthly with variances explained. The competitor price record is read at the same meeting.

Adapted from our own trade spend stages of excellence (PSP, 2012).