joint business planing process findings & recommendations - cmg
Post on 14-Apr-2017
259 Views
Preview:
TRANSCRIPT
Copyright Channel Marketing Group, 20169/8/2016, page 1
Industry Webinar
Copyright Channel Marketing Group, 20169/8/2016, page 2
David Gordon Victoria Gustafson
President, ChannelMarketing Group
Partner, Business EvolutionVerde Associates
Channel Marketing Strategist Distributor Growth Initiator
Growth Expert | Data Strategist | Thought Leader
Copyright Channel Marketing Group, 20169/8/2016, page 3
Executive Summary
Detailed Findings
Improvement Considerations
Parting Thoughts
1
2
3
4
Copyright Channel Marketing Group, 20169/8/2016, page 4
Executive Summary
Detailed Findings
Desired Process
Parting Thoughts
1
2
3
4
Copyright Channel Marketing Group, 20169/8/2016, page 5
Joint Opportunities
Identification
Prioritization
Planning
Execution
ManufacturersInternal goals
Business Intelligence
MarketRegion
Customer
DistributorsInternal goals
3 – 4% increase in growth vs. non-
participants*
*Source: IRI research in Consumer Packaged Goods (CPG)
1
Copyright Channel Marketing Group, 20169/8/2016, page 6
36%
45%
50%
Manufacturers Distributors
Satisfaction with Current JBP Process
Dissatisfied Somewhat Dissatisfied
MANUFACTURERS DISTRIBUTORSRATING DRIVERS RATING DRIVERS
• Acknowledged need
• Process does take place
• Little focus
• Spotty execution
• Inconsistent measurement
• No accountability for results
• Ignoring needs of end customers
• No review/course correction
• Strong vendors demand planning
• Pursue strategic and tactical alignment
• Lack of tracking of results
• No periodical reviews to identify course correction opportunities
• Missing the big picture of where the market is moving
Q: How satisfied are you with your current Joint Business Planning process?
1
Copyright Channel Marketing Group, 20169/8/2016, page 7
Define time horizon,
agenda and participants
Research to identify mutual
opportunities
Establish mutual
objectives
Develop action plan
Implement action plan
Measure and review results
1 2 3 4 5 6
1
ASSESSMENT RESULTS
CURRENT PROCESS
Process adjustment
7
Copyright Channel Marketing Group, 20169/8/2016, page 8
1. Topics covered by JBP◦ Focus on Value-Add Issues◦ Broaden Customer needs discussions◦ Extend Time Horizon
2. Quality and granularity of market research used to generate insights
◦ Regional and trading area-level insights◦ End-Customer Research
3. Value received from the process◦ Meaningful and actionable outcomes◦ Minimize efforts/maximize results
4. JPB effectiveness◦ Implementation in the field◦ Periodic measurement and accountability
1
Copyright Channel Marketing Group, 20169/8/2016, page 9
Executive Summary
Detailed Findings
Desired Process
Parting Thoughts
1
2
3
4
Copyright Channel Marketing Group, 20169/8/2016, page 10
Mfg59%
Dist18%
Mktg Group Req
23%
Planning Process Initiation
Q: Who usually initiates the Joint Business Planning process?
24%
53%
24%
0%
1-6 Months 6-12 Months 1-2 Years 2+ Years
Planning Time Horizon
Q: What time horizon do you usually discuss during a typical Joint Business Planning session?
2
Copyright Channel Marketing Group, 20169/8/2016, page 11
DISTRIBUTORS
• Setting long-term joint sales/revenue objectives
• Increasing operational process efficiency
• Profit improvement
• Joint staffing/funding
• New service revenue initiatives
• Geographic expansion
• Line authorization for additional/new branches
MANUFACTURERS
• New product offering/product diversification
• Alignment with distributors
• Growth targets
• Setting long-term market share goals
• Long-term product roadmaps
• Setting long-term market share goals
2
Som
etim
esO
ften
Rar
ely
Q: Which of your company’s strategic objectives do you discuss with your partners?
Copyright Channel Marketing Group, 20169/8/2016, page 12
• Sales/customer training
• Target customers
• Line conversions
• New product launches
• Promotions
2Som
etim
esO
ften
Rar
ely
Q: What tactical objectives do you discuss with your manufacturing partners during your Joint Business Planning Session(s)?
• Inventory levels
• Marketing funding support/co-op usage
• Renewing Special Pricing Allowances (SPAs)
• Inventory adjustments
• In-stock product price negotiations
• Rebate opportunities
• Return policies
JOINT DISCUSSIONS
Customer Outreach
Profitability
Copyright Channel Marketing Group, 20169/8/2016, page 13
56%
18%
24%
2%
Should a plan be required to participate in a rebate program?
Yes No Only set a purchase goal Not involved in this area
2
Copyright Channel Marketing Group, 20169/8/2016, page 14
MANUFACTURERS DISTRIBUTORS
Nev
erSom
etim
esO
ften
• Regional/District Manager
• Rep Principal
• Rep Salesperson
• National Account Manager
• Sales Director/VP
• Marketing Director/VP
• Sales Management
• Distributor Owner
• Marketing Management
• Purchasing Management
• Operations/Supply Chain
Q: Who typically participates in more than 50% of all JPB meetings as a representative from your company?
2
Meeting Participants
Copyright Channel Marketing Group, 20169/8/2016, page 15
•Product trends•Pricing trends•Product sales analysis
•Customer segment dynamics
•Contractor purchasing behavior
•Industrial trends•Residential trends•Institutional trends•Competitive insights
•Macroeconomic trends
TOTAL MARKET INDUSTRY
POINT OF SALECUSTOMER
Q: Which of the following factors do you incorporate to build Joint Business Plans with your partners?
Types of Research Incorporated into Joint Business Planning
2
Copyright Channel Marketing Group, 20169/8/2016, page 16
MANUFACTURERS DISTRIBUTORS
0%
57%
29%
14%
20%
80%
0%
0%
Dissatisfied
Somewhat Satisfied
Satisfied
Very Satisfied
Q: How satisfied with the quality and granularity of research that [Manufacturers] share and include into plans?
Satisfaction with Research Used for
JBP meetings
2
Copyright Channel Marketing Group, 20169/8/2016, page 17
MANUFACTURERS DISTRIBUTORS
• DISC• Dodge Report• Aggregated Point of Sale
LEVERAGED
• Electrical Wholesaling Market Planning Guide
• Internal Data
RARELY/NEVER LEVERAGED• Customer Research
• Focus Groups• Surveys
• Industrial Info Resources (IIR)• Epicor Vista Information Services• MDM Analytics• Marketing Group Info (A-D, Imark, etc)
• NAED (Economic Newsletter, State of the Industry Report)
• Collected Feedback from Customer Service Calls
• Census Bureau Data• Aggregated In-Field Intelligence• Market-level Trends• Electrical Trends Newsletter• IBIS World• tED Magazine
Q: What industry sources do you use to build Joint Business Plans with your partners?
2
Copyright Channel Marketing Group, 20169/8/2016, page 18
MANUFACTURERS
• Sales and Share Goals
• Customer Strategies
• Strategic Objectives Alignment
DISTRIBUTORS
• Sales and Share Goals
• Customer Training and Events
• Strategic Objectives Alignment
Q: Please choose top 3 areas that drive the most value for you in the Joint planning process with your partners. Consider what are
the indicators that will drive your overall success
2
Current Focus Opportunity
• Short-term• Tactical
• Long-term• Strategic
Copyright Channel Marketing Group, 20169/8/2016, page 19
Return policies
Marketing funding support / co-op…
Inventory adjustments
Into-stock product price…
Rebate opportunities
Promotions
Inventory levels
Renewing Special Pricing…
New product launches
Target customers
Sales/Customer training
Line conversions
Distributor Manufacturer
More important to
Manufacturers
More important to Distributors
2
Copyright Channel Marketing Group, 20169/8/2016, page 20
2
• Joint staffing/role funding
• New service revenue initiatives
• Sales goals• Setting long-term
market share goals• Target customer
opportunities
SALES Only
• Product content for website
• Product mix goals
MARKETING Only PRODUCT/PURCH Only
• Long-term product roadmaps
• New product offerings/ product diversification
• Pricing levels
Copyright Channel Marketing Group, 20169/8/2016, page 21
ISSUE SALES MKTG PRODUCT/ PURCH SERVICE OPS
Authorization to sell to additional/new branches x x
Customer segment focus x x
Customer training and events x x x
End-customer strategies x x
Geographic expansion x x
Line conversion opportunities x x
Market research – industry trends x x
Market research – local trends x x
Market research – macro trends x x
On-shelf assortment x x
Product training x x x
Promotions x x xRenewing Special Pricing Allowances (SPA) x x
Strategic objectives alignment (12+ months) x x x x x
Unmet contractor needs x x x x
Increasing operational process efficiency x x
Inventory review / management x x
Management of returns x x
Quality and timeliness of shipping x x
Volume rebate program (if applicable) x x
2
Copyright Channel Marketing Group, 20169/8/2016, page 22
0%
64%
36%
0%
Ineffective
Somewhateffective
Effective
Very effective
Perceived Effectiveness of In-Field Implementation
Q: How effective, defined as ‘achieving goals set during Joint Business Planning’, is the in-field implementation process?
RATING DRIVERS
• It works if it is done correctly and measured consistently
• Follow through and periodic reviews make it work
• Not effective in all markets
• Highly dependent on distributor and manufacturer engagement
• Needs follow-through and accountability
• Negative experience with results
• Lack of focus
2
Copyright Channel Marketing Group, 20169/8/2016, page 23
Monthly82%
Quarterly18%
Internal Results Measurement and Review
Monthly27%
Quarterly55%
Semi-Annually
18%
External Results Measurement and Review
Q: How often do you measure and jointly review results with your own sales force?
Q: How often do you measure and jointly review results with your partners?
2
Copyright Channel Marketing Group, 20169/8/2016, page 24
2
71%
50%
Manufacturers
Distributors
% Companies That Would Consider Process Change for
2017
DESIRED CHANGES
• More transparency about competition and market dynamics
• More pro-active
• More granular information sharing
• Make the process valuable, or eliminate it
• Implement periodic reviews
• Get more buy-in from parties
• More thorough preparation
• More efficient
• Better tools
• Meaningful metrics
• Build in tracking and accountability
• Focus on most valuable opportunitiesQ: Would your organization consider
changing JBP for 2017 planning cycle?
Copyright Channel Marketing Group, 20169/8/2016, page 25
Executive Summary
Detailed Findings
Improvement Considerations
Parting Thoughts
1
2
3
4
Copyright Channel Marketing Group, 20169/8/2016, page 26
Define time horizon,
agenda and participants
Research to identify mutual
opportunities
Establish mutual
objectives
Develop action plan
Implement action plan
Measure and review results
1 2 3 4 5 6
3
REVISED PROCESS
RECOMMENDATIONS
• Select partners to plan with
• Have a very well-defined set of objectives, by distributor!
• Invite participants from both planning and execution sides
• Discuss both strategic (1+ years) and tactical (<1 year) goals
• Agenda could vary from partner to partner, depending on current situation and relationship objectives
• Consider tiered planning process
Copyright Channel Marketing Group, 20169/8/2016, page 27
Define time horizon,
agenda and participants
Research to identify mutual
opportunities
Establish mutual
objectives
Develop action plan
Implement action plan
Measure and review results
1 2 3 4 5 6
3
REVISED PROCESS
RECOMMENDATIONS
• Pre-meeting preparation & sharing
• Understand market size & market share• Distributor for territory
• Manufacturer for category, segments
• SKU Analysis (pricing, assortment)
• Distributors• Research potential by customer, including
market share
• Sales by customer by product category
• Manufacturers• Use research to create a purpose-driven
distribution strategy vs. availability
• Gain insights into end-Customer to uncover growth opportunities
• Fully leverage industry sources to create competitive offense / defense strategy
• Customer/Sales Person/Product Mix
Copyright Channel Marketing Group, 20169/8/2016, page 28
Define time horizon,
agenda and participants
Research to identify mutual
opportunities
Establish mutual
objectives
Develop action plan
Implement action plan
Measure and review results
1 2 3 4 5 6
3
REVISED PROCESS
RECOMMENDATIONS
• Use the meeting to:
• Get on the same page
• Discuss joint growth opportunities
• Gain agreement on the mutual high level plan of action to capture these opportunities
• Use the meeting to (cont’d):
• Get all tactical issues on the table
• Agree on approaches to address them
• Agree on the criteria by which you measure success for the coming year (high level)
• Assign responsibilities
Copyright Channel Marketing Group, 20169/8/2016, page 29
Define time horizon,
agenda and participants
Research to identify mutual
opportunities
Establish mutual
objectives
Develop action plan
Implement action plan
Measure and review results
1 2 3 4 5 6
3
REVISED PROCESS
RECOMMENDATIONS
• Once all mutual opportunities are prioritized, build a plan that:
• Breaks down big objective into relevant, achievable and measurable chunks
• Set a metric for each important milestone
• Assign accountability
• Communicate with your partners:
• Milestones and success factors for each milestone
• Dependencies (internal and external)
• Additional resources/time that might be needed to achieve objectives
Copyright Channel Marketing Group, 20169/8/2016, page 30
Define time horizon,
agenda and participants
Research to identify mutual
opportunities
Establish mutual
objectives
Develop action plan
Implement action plan
Measure and review results
1 2 3 4 5 6
3
REVISED PROCESS
RECOMMENDATIONS
• Communicate objectives:
• Use the RACI (Responsible, Accountable, Consulted and Informed) tool for every important milestone
• Ensure that everybody who has accountability clearly understands what to do
• Create a problem escalation process (both internal and with your partners) in case there are obstacles that could prevent reaching milestone(s)
• Ensure that every person responsible for execution of the plan is equipped to do so (do they have the right tools and resources? What support do they need?)
• Develop/utilize accountability tool
Copyright Channel Marketing Group, 20169/8/2016, page 31
Define time horizon,
agenda and participants
Research to identify mutual
opportunities
Establish mutual
objectives
Develop action plan
Implement action plan
Measure and review results
1 2 3 4 5 6
3
REVISED PROCESS
• Measure and review results as dictated by business need, not necessarily on a rigid schedule (to prevent under- and over- measurement)
• Create a process to effectively course-correct if market conditions change
• Push performance benchmarks
• Get all relevant parties in the room to review results (might be different from the original group who put the plan together)
• Celebrate successes and learn from failures
Copyright Channel Marketing Group, 20169/8/2016, page 32
Executive Summary
Detailed Findings
Desired Process
Parting Thoughts
1
2
3
4
Copyright Channel Marketing Group, 20169/8/2016, page 33
Commit to extract value from planning It’s a revenue driver, not an obligation No accountability = no value Hope is not a viable rebate achievement tactic
Come prepared Determine if meeting objective is revenue generation or profit
improvement (or what % each) Differentiator and Reputation Builder Engage at appropriate levels & drive communications downstream Remember: data identifies, quantifies and prioritizes opportunities.
Discussion determines if there is a desire to pursue them If action plans don’t include accountability, it becomes “just another
meeting” Consider selective and customized planning approach Planning must be important to management and management
driven, otherwise poorly executed and a time waster
Copyright Channel Marketing Group, 20169/8/2016, page 34
Questions?
Copyright Channel Marketing Group, 20169/8/2016, page 35
Contact us at:
dgordon@channelmkt.com
or 919.488.8635
top related