ANNUAL OPERATING PLAN Successful Plan Templates Seven Core

ANNUAL OPERATING PLAN Successful Plan Templates

Seven Core Principles of Revenue Growth Management 1. Focus on price rather than cost when balancing supply and demand. 2. Replace cost-based pricing with market-based pricing. 3. Sell to segmented micro markets, not just to mass markets. 4. Save your best products for your most valued customers. 5. Make decisions based on knowledge, not supposition. 6. Exploit each product’s value cycle. 7. Continually evaluate your revenue growth opportunity.

SWOT Analysis

Strategic Framework - Definitions Vision – What we are aiming for Mission – What we are here to do Aspiration – What we want to become Roles – What part we play Imperatives – Major thrusts by function defining our strategies Objectives – The look of perfect we want to achieve Goals – The numerical expression of our objectives Strategies – What set of actions we will initiate Measures – the numerical results of strategies undertaken 4

Vision: (Statement) Mission: Develop and sustain a long-standing, authentic relationship, with consumers, customers and distributor / broker. Imperative: 1 Imperative: 2 Imperative: 3 Imperative: 4 Build an Emotional connection with Consumers Customize our go to market approach Renovate & Innovate to Differentiate our Offer Empower our organization to be Resilient and Responsive Actions n #1 n n #2 n n #3 n #1 #2 #3 n #1 n #2 n #3 5

Plan built around role Role Strategy Operational Plan What is the industry landscape? What does Value look like for our audience? What is our Desired Value Proposition? What is the role of (my Brand / item)? What is our GTM strategy? Objectives & Goals? What are the building blocks? What is the action plan? 6 What are the tactical initiatives? Execute & Measure

Desired Value Proposition Evaluation Value Proposition Pillar Examples: : Competitor #1 Competitor #2 Operational Efficiency / Cost Leadership Competitor #3 My Brand / Company Manufacturer or Brand or Family of Products? Product / Service Leadership & Innovation Customer Intimacy / Solutions Market Share Leveraging Why are we choosing this type of value proposition? How well does it differentiate us? Does this align with the issues we are addressing for retailers? 7

Desired Value Proposition Articulation The core (brand / Item) value proposition to retailers is: ___________________________ The key elements of our value proposition are: 1. ________________________ 2. ________________________ 3. ________________________ 4. ________________________ 8

Strategy: Create an assailable, preferred position with customer by focusing on increasing value vs. discounts. Initiative: Develop and test (xxx) for (specific channel), anchored in DSMPQ fundamentals. When / Where: Project Details: Geography: Northwest USA Targeted Channels: xxx Key Project Elements: - Gain system alignment to fund - Sell test to targeted retailers - Determine stretch targets above AOP growth - Agree targets and incentives with customers - Sales info system for accuracy of sales plan - Develop management routine to monitor performance Critical Path: Action: Xx Deadline: Brand / Pack: xxx Timing: (See below) Cost / Benefit: Accountability: Costs: Item: Cost $$: Funding from: Yy zz Volume Forecast: % growth: Total Incremental u/c:

Business Planning Framework Destination • Strategy • Structure • Capability • Management Routine • Reward & Recognition systems