consumer goods breakout at dreamforce 2014 with sab, southern wine and bespoke

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Consumer Goods Session: Beer, Wine and Spirits Focus on Distribution, Tuesday, 4pm Moderator: Mike Jortberg

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Presentation by Mike Jortberg, Carlos Vigil, Ignacio Giraldo and Paul Leary about wine, beer and spirits sales using Salesforce software.

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Page 1: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Consumer Goods Session:Beer, Wine and SpiritsFocus on Distribution, Tuesday, 4pm

Moderator:

Mike Jortberg

Page 2: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Safe Harbor

Safe harbor statement under the Private Securities Litigation Reform Act of 1995:

This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of

the assumptions proves incorrect, the results of salesforce.com, inc. could differ materially from the results expressed or implied by the forward-looking

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our services.

The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our service,

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annual report on Form 10-K for the most recent fiscal year and in our quarterly report on Form 10-Q for the most recent fiscal quarter. These documents and

others containing important disclosures are available on the SEC Filings section of the Investor Information section of our Web site.

Any unreleased services or features referenced in this or other presentations, press releases or public statements are not currently available and may not be

delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently available.

Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements.

Page 3: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Mike JortbergDirector, Salesforce Services

Consumer Goods

Field Sales

Mobility

Chicago, IL

[email protected]

(847) 962-3321

Page 4: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Spirits, Wine and Beer

Carlos Vigil, Southern Wine and Spirits (9 yrs)

•SWS, VP Inside Sales and Direct Marketing(5 yrs)

•SWS, Director of Strategy and Business Development (4 yrs)

•McKinsey, Consultant (3 yrs)

•Schiff Hardin, Attorney (6 yrs)

Paul Leary, Bespoke Collection (9 yrs)

•Bespoke Collection, President (9 yrs)

•Duckhorn Wine Company, VP Marketing (7 yrs)

•Tra Vigne – Real Restaurant Group , General Manager (3 yrs)

Ignacio Geraldo, SABMiller (1 yr)

• SABMiller, VP Sales, Latin America (1 yr)

• Diageo, General Manager, Chile, Peru, Ecuador, Bolivia (6 yrs)

• MiCash, EVP (3 yrs)

• Todo1 Services, VP Business Products (1 yr)

Page 5: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

3-Tier DistributionBusiness Challenge

Solving communication gaps and

data sharing challenges between tiers

Streamlining marketing, selling and support within each tier

Page 6: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Place

Customer or

Partner logo in

white area of

slide, centered

Ignacio GiraldoVice President Sales

SABMiller LATAM

Miami, FL

[email protected]

Page 7: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

About the Company

SABMiller

South African multinational brewing and beverage company

headquartered in London, England. It is the world's second-largest

brewer measured by revenues (after the Belgian-Brazilian Anheuser-

Busch InBev) and is also a major bottler of Coca-Cola.

Our Brands include Fosters, Grolsch, Miller Brewing Company, Peroni

Nastro Azzurro, & Pilsner Urquell.

We have operations in 75 countries across Africa, Asia, Australia,

Europe, North America and South America and sells around 21 billion

litres of lager per year.

Page 8: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Business ChallengesHighly fragmented and complex market (E.g. Colombia )

16

Brands

Human Capital 2500 +

Page 9: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Business ChallengesOur Market – Pure Diversity

Increase quality and dedicate

time at POS

Build strong capabilities

Improve efficiency in the

back-end process

Provide appropriate tools

to enable execution at POS

Page 10: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Salesforce Footprint/Solutions

Force.com , Classic and Chatter are the Retail Execution Foundation

40 + Custom Objects

800+ Mobile Users

90 + Backend Users

6 Administrators

40 + CS Agents

120 + Resolutors

30 CS Superviros

1 Administrator

400 + Users

20 + Communities

1000 + Pictures/day

500 + Feeds Updates

Page 11: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

System Screenshots

Planning, Execution/Registration and Monitoring are the 4 main pillars

Page 12: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

System Screenshots

Execution/Registration

• Communication with distribution and sales.

• Pictures registered with GPS and time

• Training and documentation viewing.

Estándar Flow for Negotiationsand Surveys

Page 13: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Business Results

SalesForce.com in the New Sales Service Model

Page 14: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Business Results

Some Facts

Effective tracking of commitments has let us in the current year:

• Increase “fridge effectiveness” by 2% .

• Increase Discount effectiveness by 25,6% .

• Increase Credit effectiveness by 12,4.%.

Page 15: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Business Results

Some numbers

# Completed Tasks

Page 16: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Business Results

Some numbers

LAE*

Page 17: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Business Results

Some numbers

Availability*

Page 18: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Business Results

Some numbers

ROS*

Page 19: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Business Results

Some numbersProgrammed vs Visited Customers

Page 20: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Lessons LearnedIt is not about the tool……

• Change management is a key area in the implementation

• Adopt rather than adapt

• People, people…………….. People

Page 21: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Place

Customer or

Partner logo in

white area of

slide, centered

Carlos VigilVice President – Inside Sales & Direct

Marketing

Southern Wine & Spirits

Miami, FL

[email protected]

(305) 905-0719

Page 22: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Today’s wine & spirits distributors bear little resemblance to the models of the past

• We form long-term

partnerships based on

trust, added value &

transparency

• Our business partners

are no less demanding

(customers and

suppliers have

consolidated and use

their leverage liberally)

• Consumers know more

than ever, meaning

markets change

dynamically & frequently

Page 23: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

About the Company

• Worlds largest wine & spirits

distributor

• Privately held, founded in 1968

• 14,000 employees

• Facilities in in 35 markets

– ~ 9,000,000 sq ft2

• 1,900 delivery vehicles

• 175,000 customers

– 37% off-premise

– 63% on-premise

• 100 million cases shipped

Page 24: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Business ChallengesComplex Geography, Suppliers and Product Mix

•History of acquisition / State control and independence

•Control vs Open States

•Union labor

•Two customers

Buyers

Suppliers

•Dedicated selling divisions for certain suppliers

•National Accounts want consistent execution across states

Evolving Role of Sales Rep

•Merchandising + Order Taking + Relationship Management

Page 25: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Salesforce Footprint/SolutionsInside Sales, Field Sales Pilot

• 14 markets with new sales channel Inside Sales

– Bottom 5% of net sales

– ~125 users with CTI, call planning & logging manage 300-400 active accounts each

– Extensive intra- and cross-State collaboration

– Re-staffing to build more consultative beverage experts vs order taking

• 2 markets with Salesforce1 app pilot

– South Florida & San Diego

– Crafting new role definitions to better match technical solutions

• From transactional “Order Taker” to relationship “Order Maker”

• Introduced powerful analytics – top selling products in market, likely to re-order

Page 26: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

With respect to Inside Sales, without the right technology partner, we would surely fail

Enormous

needs-based

diversity customers

Pressure to

perform

net sales

Need efficiency

customers

per RepDecentralized

teams

Need

consistency

The fundamentals of Inside

Sales always apply . . .

. . . But we could not solve our idiosyncratic

challenges without the right technology

partner

Page 27: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Inside Sales

Page 28: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Inside Sales

Page 29: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Salesforce helps us to drive to performance insight

Salesforce helps us to drive

further insight by linking activities

to sales results

• “Ah ha” moments for managing

simply and effectively

• Complete transparency for any

level of employee

• Design competition into the right

metrics

Page 30: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Field Sales Pilot

SALESEFFECTIVENESS

SALESEFFICIENCY

STAKEHOLDERREACTION

Produc vityGains

ImprovedTopLineRevenue

ImprovedSupplierExecu on

CustomerSa sfac on

SalesRepSa sfac on

BusinessImpact

SF1MobileCapabili es

BusinessMetrics

BusinessValue

LeadingIndicators

• IncreaseNetSales• ShortenSalesTime• IncreaseUpsell

• IncreaseCross-Sell

• IncreaseQuotaA ainment

• IncreaseAccountCoverage

• Decreaseinnon-sellingac vi es

• IncreaseCustomerLoyalty

• IncreaseSalesRepLoyalty

• FacilitatedTeamwork

• NetSalesGrowth• AvgSales/Order• Avg#SKUs/acct

• Avg$/case

• %A ainmentoverall

• %A ainmentper

supplier

• #AcctsVisited• Avgdura onofAcctvisit

• %dayspentnon-sellingac vi es

• Avgcustomersurveyra ngoverall&bycategory

• Avg.salesrepsurveyra ngoverall&bycategory

• AccountRecords• AccountAnaly cs• ProductSearch

• AccountPlans

• NSMIntegra on• Cha erCollabora on

• RoutePlans• WeeklyVisits• AccountAnaly cs

• AccountPlans• Cha erCollabora on

• No fica ons• Contacts• Cha erPublisher

• Allfunc onality

• Avg#oppsdiscussedpervisit

• Avg#AcctPlan

fieldsfil

l

e d

• Avg#quotaproductsinAcctplans

• Derivatetrendofacctsvisited&dura on

• Deriva vetrend

• Avg#fieldspopulated

• Deriva vetrendof

survey

37

Page 31: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Field Sales

Page 32: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Field Sales

Page 33: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Business Results

Schedule visit Complete visitAgenda for current

& next visit

Selling

Division # Actives % Scheduled Visits % Visits Completed % Visits with Agenda

CA 2,542 84% 62% 56%

PWS 1,033 81% 63% 57%

SWS 1,509 87% 61% 56%

FL 1,885 59% 37% 46%

CWS 682 86% 35% 52%

SWS 1,203 44% 38% 42%

Total 4,427 74% 51% 52%

Compared to Inside Sales CRM adoption, BevOne adoption is ahead of schedule

CA involved DMs as trainers and leads, & FL used trainers and sales rep champions

Page 34: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

We are observing ~30% improvement in sales process efficiency after 2 months of BevOne usage

Total35.2

50.7

Post-Visit7.8

11.8

-31%

-34%

-26%

-34%

Direct Selling18.7

25.3

Pre-Plan8.9

13.5

2-Month Pilot

Baseline

Direct Selling

18.5

19.0

Pre-Plan

8.1

14.7

-11%

-3%

-45%

Post-Visit

10.7

12.0

We are seeing efficiency gains (~30%) in all stages of the sales process . . .

. . . While simultaneously reducing the variability of the efficiency across the Pilot Users

Average time spent by Pilot Users,

Ride With Observations, in Minutes

Standard Deviation, Ride With

Observations, in Minutes

BevOne Ride With Observations; n=111

Page 35: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Observations

• What is the role of the rep of the future?

– Do we all agree?

– Can we all agree?

– Union implications

• What technical tools do they need?

– To take orders?

• Topaz Orders & Invoices

– To make more orders?

• Relationship Management, Analytical Insights, Planning, Collateral

– To be more efficient?

• Collaboration

Page 36: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Lessons LearnedIt is not all about the technical tool

• Change management is a key area in the implementation

– Do reps really understand the new expectations?

– How do managers reinforce this?

• Develop super users

– Control group vs. Joe User vs. Super user

– Invest in making super users pays off

• Major impact on every metric: revenue, profit, volume

Page 37: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Place

Customer or

Partner logo in

white area of

slide, centered

Paul L. LearyBespoke CollectionPresident

Page 38: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

About the CompanyThe Bespoke Collection — A portfolio of artisanal brands and experiences.

• Founded in 2003 in the Napa Valley

• Tracking to $15M in Revenue for CY2014

• 45 Employees

• Manufacturer/wholesaler/retailer

• Curated selection of boutique wines, one-of-a-kind objets d'art, and unique lifestyle

experiences in Napa Valley, Argentina and beyond.

• Key strategic initiatives

• Membership growth

• National account development

• Create loyalty in all channels through differentiated programs

Page 39: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Salesforce Footprint/SolutionsBespoke Collection’s Current platform

• Salesforce.com Sales Cloud

• Exact Target Email Marketing for all brands and channels

• Data.com for customer prospecting

• Custom Objects throughout system to create a dynamic Contact profile

• Ability to transact in the system instead of external POS

• API integrations between POS, online cart, Industry compliance software and

shipping/logistics vendors

Page 40: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Wholesale Wine ChannelIts all in the data…

• Utilize Nielson BDN

data to understand

your accounts as well

as your distribution

partners

– By Account to create

loyalty

– By Product to

understand trending

Page 41: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Business Challenges

Creating a Dynamic

Profile all Team

Members can

Comprehend

• Develop Key Info.

Field

• Create a benefits

program to reward

loyalty

Page 42: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Business Challenges – Understanding your Client…

Creating a Dynamic

Profile all Team

Members can

Comprehend

• Quick Sales History

View

Page 43: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Business ResultsTop Line Revenue and Membership growth

Period Over Period Revenue Growth Period over Period Active Members

Page 44: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Lessons Learned

• Higher Recency, Frequency with key clients –

– 40% YoY membership growth

– 80/20 rule of revenue of client and partner revenue

• Ensure entire team knows who our best client is every day –

– A Service company that just happens to sell premium products

– Welcome Back vs. Welcome to…in the retail setting

• Less need to use pricing as a loyalty tool –

– Focus on quality of product and experience

– 35% YoY sales revenue growth with long runway

Page 45: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke
Page 46: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke

Questions

• How has legal regulations made your go-to-market strategy

different than other consumer goods companies?

• How has technology helped you overcome the special

restrictions put on your industry?

• Where do you see the market going in the next three years?

Page 47: Consumer Goods Breakout at Dreamforce 2014 with SAB, Southern Wine and Bespoke