consumer goods breakout at dreamforce 2014 with sab, southern wine and bespoke
DESCRIPTION
Presentation by Mike Jortberg, Carlos Vigil, Ignacio Giraldo and Paul Leary about wine, beer and spirits sales using Salesforce software.TRANSCRIPT
Consumer Goods Session:Beer, Wine and SpiritsFocus on Distribution, Tuesday, 4pm
Moderator:
Mike Jortberg
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Mike JortbergDirector, Salesforce Services
Consumer Goods
Field Sales
Mobility
Chicago, IL
(847) 962-3321
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)
3-Tier DistributionBusiness Challenge
Solving communication gaps and
data sharing challenges between tiers
Streamlining marketing, selling and support within each tier
Place
Customer or
Partner logo in
white area of
slide, centered
Ignacio GiraldoVice President Sales
SABMiller LATAM
Miami, FL
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.
Business ChallengesHighly fragmented and complex market (E.g. Colombia )
16
Brands
Human Capital 2500 +
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
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
System Screenshots
Planning, Execution/Registration and Monitoring are the 4 main pillars
System Screenshots
Execution/Registration
• Communication with distribution and sales.
• Pictures registered with GPS and time
• Training and documentation viewing.
Estándar Flow for Negotiationsand Surveys
Business Results
SalesForce.com in the New Sales Service Model
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.%.
Business Results
Some numbers
# Completed Tasks
Business Results
Some numbers
LAE*
Business Results
Some numbers
Availability*
Business Results
Some numbers
ROS*
Business Results
Some numbersProgrammed vs Visited Customers
Lessons LearnedIt is not about the tool……
• Change management is a key area in the implementation
• Adopt rather than adapt
• People, people…………….. People
Place
Customer or
Partner logo in
white area of
slide, centered
Carlos VigilVice President – Inside Sales & Direct
Marketing
Southern Wine & Spirits
Miami, FL
(305) 905-0719
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
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
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
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
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
Inside Sales
Inside Sales
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
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
Field Sales
Field Sales
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
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
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
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
Place
Customer or
Partner logo in
white area of
slide, centered
Paul L. LearyBespoke CollectionPresident
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
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
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
Business Challenges
Creating a Dynamic
Profile all Team
Members can
Comprehend
• Develop Key Info.
Field
• Create a benefits
program to reward
loyalty
Business Challenges – Understanding your Client…
Creating a Dynamic
Profile all Team
Members can
Comprehend
• Quick Sales History
View
Business ResultsTop Line Revenue and Membership growth
Period Over Period Revenue Growth Period over Period Active Members
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
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?