fmcg training modules-bfg

SALES MANAGEMENT SYSTEM

CONSUMER INDUSTRY( TOTAL CHANNEL APPROACH )

“ IMMEDIATE PLANS FOR LONG TERM RESULTS “• Develop More Distribution Area & Convert- Business Unit• Assistance Programs- Business Unit Development• Building Competitive Edge – Marketing & Sales• System Application – Sales Management System• Skills Enhancement Program

– Merchandising Principles & BCP.

GENERAL TRADE( Distribution Account Group )

“ DISTRIBUTION AREAS TO BUSINESS UNIT“

• 35 BY THE YEAR END.• STRUCTURED “ BOTTOM LINE” MANAGEMENT. (CCS )• STRENGHTENING MARKET EXPANSION DRIVE

– ALIGNMENT OF KEY ACCOUNTS MANAGEMENT– DOWNLINE OPERATION ON MULTI-LINE APPROACH

• TAILOR – FIT BUSINESS DEVELOPMENT PROGRAMS

GENERAL TRADE(Distribution Account Group )

“ IMMEDIATE PLANS FOR LONG TERM RESULTS “• Develop More Distribution Area & Convert- Business Unit

• ASSISTANCE PROGRAMS- Business Unit Development - Public Market Saturation Drive

- Wholesalers Development Program- HRI Development Program- Truck Subsidy Programs- ADM Supports Programs


“ IMMEDIATE PLANS FOR LONG TERM RESULTS “• Develop More Distribution Area & Convert- Business Unit• Assistance Programs- Business Unit Development• Building Competitive Edge – Marketing & Sales

– SKU Rationalization– Product Fit Approach – Segmentation & RPS – Customized Trade Marketing Programs– Short Term to Long Duration – Deals or Discount ( Sales Catalysts )– Reinforced Merchandising : POS/POP Materials, Displays – Localized Programs-Channel Focused


“ IMMEDIATE PLANS FOR LONG TERM RESULTS “• Develop More Distribution Area & Convert- Business Unit• Assistance Programs- Business Unit Development• Building Competitive Edge – Marketing & Sales• System Application – Sales Management System

– Call Card – Transaction Based– Computerized/Systematic Routing System– Load Management– Stock-Weight Selling– Market Forces Analysis– Productivity & Efficiency : Chillers, Gondolas, Merchandisers, Calls/Visit/Productivity Analysis, Truck Load Factor


“ IMMEDIATE PLANS FOR LONG TERM RESULTS “• Develop More Distribution Area & Convert- Business Unit• Assistance Programs- Business Unit Development• Building Competitive Edge – Marketing & Sales• System Application – Sales Management System• SKILLS ENHANCEMENT PROGRAMS: ( Room & OJT)

– Back To Basic Approach– BCP ( Booking & Ex-Truck )– Merchandising Principles & BCP– Channel Development Programming

GENERAL TRADE

BACK TO BASICS APPROACH

COMMON TERMINOLOGIES - USED

NUMERIC DISTRIBUTION RATIO OF NUMBERS OF OUTLETS COVERED/SERVICED vs TOTAL CENSUS.IT IS EXPRESS IN PERCENTAGE ( % ) OR ABSOLUTE VALUE.

NUMERIC IN-STOCKRATIO OR MEASUREMENT OF OUTLETS WITH AVAILABLE STOCKS DURING THE TIMEOF VISIT/SERVICING vs. TOTAL CENSUS OR ROUTE LISTED ACCOUNTS.

REACHMEASURES OR RATIO OF OUTLETS COVERED vs. TOTAL OUTLETS IN UNIVERSE.

COVERAGEMEASURES OR RATIO OF OUTLETS COVERED/SERVICED PENETRATED vs. TOTAL CENSUS.

BRAND PENETRATIONMEASURES OR RATIO OF OUTLETS PLACED WITH BRAND(S) vs. TOTAL ROUTE CENSUS.

CALL FREQUENCYSERVICE RATIO OF SALES MEASURE IN TERMS OF NUMBER OF VISIT OR CALLS MADE W/IN THE CYCLE.

CALL RATEMEASURES THE LEVEL OF DISCIPLINE & EFFICIENCY IN CONDUCTING THE SALES ROUTE IN ACCORDANCE WITH ROUTE PLAN SCHEDULE.ie. # of Sked Calls actually made in accordance w/ the Route during the period (cycle) versus No. of Sked Calls in the Route for the Period ( Cycle ).

HIT RATEMEASURES THE RATIO OF SUCCESSFUL SALES CALLS VERSUS ALL THE CALLS MADE.ie… No. of successful Sales Call during the Period ( Cycle ) versus No. of Sales Calls actually made for the Period.

Definition of Common (FMCG) Industry TerminologiesDefinition of Common (FMCG) Industry Terminologies


SALES FORCE MANAGEMENT SYSTEMMANAGEMENT OF SALES BASED ON SEVERAL KPI'S RATHER THAN SALES TARGET DRIVE AS IN SALES MANAGEMENT SYSTEM

STOCK COVER QUANTITY OR LEVEL OF STOCKS IN TERMS OF WEEKS OR MONTHS VIS-A VIS OFF TAKE AND INVENTORY LEVEL

STOCK WEIGHTQUANTITY IN ABSOLUTE VALUE , SIMILAR OR RELATIVE TO OFF TAKE.

INVENTORY CONTROL OBJECTIVE ( ICO )ADEQUATE STOCKING SYSTEM, SKEWING BASED ON OFFTAKE PER SKU RELATIVE TO SERVICINGMODE JUST IN TIME OR BASED ON SAFETY STOCKS LEVEL AS FOLLOWED BY OUTLETS.

ON - SHELF DISPLAY BRAND(S) OR PRODUCTS ON FREE ENTREPRISE DISPLAYED ON REGULAR SHELF IN THE POINT OFOF PURCHASE DISPLAY PROFITABILITY MERCHANDISING DICTATES THE SPACE, SIZE , FACINGS,SHARE OF SHELF, POS - POINT OF SALES ( CHANNELS OR STORES ), POP-POINT OF PURCHASE (SELLING AREA)

OFF- SHELF DISPLAYBRANDS OR PRODUCTS ON EXCLUSIVE BASIS DISPLAYED IN ANOTHER STRATEGIC LOCATION USINGMODULAR OR GONDOLAS. IT CAN BE AT THE END OF SHELF AS END-GONDOLA OR FRONT OF SHELF AS IN FRONT GONDOLAOR SPECIAL LOCATION AS IN ISLAND OR IN BETWEEN SHELVES OR ALONG AISLE.DISPLAY WITH PAY OR RENTALS


CROSS MERCHANDISING POSITIONING STRATEGY IN DISPLAYING ANY BRANDS OR PRODUCTS OUTSIDE OFREGULAR SHELF-AREA AS A NICHE OUT OF CATEGORY MANAGEMENTWHERE BRANDS CAN BE POSITIONED TO MATCH OTHER CATEGORY

FORWARD STOCKSLEVEL OF DISPLAYS IN THE SELLING AREA(S) PLUS VOLUME DISPLAYED IN OTHER MODE OR AREAS.IN THE STORE LEVEL AS IN CATMAN- FORWARD STOCKS SHALL BE EQUAL TO % SHARE IN MARKET.

CUT-CASE DISPLAYSDISPLAYS USUALLY NOT IN THE REGULAR SHELVES AND CONSIDERED AS OFF AND ON HARD FILE IN CASES AIM TO CALL TO ACTION VISIBILITY CAMPAIGN, CREATE IMPULSIVE & MASSIVE APPEARANCE.TEMPORARY BASIS

CATEGORY MANAGEMENTA MERCHANDISING CAMPAIGN BASED ON ; PRODUCT/BRAND CATEGORY, BRANDING, MARKET SHARE,OFF-TAKE LOCAL OR IMPORTED OR QUALITY, USAGE, PACKAGING, (DPM) DISPLAY PROFITABILITY MERCH.AND OTHERS

SPACE MANAGEMENTSTRATEGY TO MEET CONSUMER DEMAND FOR PRODUCTS BY HAVING THE RIGHT RANGE AND STOCKS AVAILABLE FOR PURCHASE. FITTING THE RIGHT RANGE OF PRODUCTS INTO FIXED SPACE- THE STORE, THE CATEGORY.

BACK TO BASICS

NESTLÉ WATERS PHILIPPINES, INC.

Chapter 5: Daily Routine

Chapter 4: Sales Force Management Cycle

Chapter 3: The Role of a Salesman

Chapter 2: Definition of Selling Skills

Chapter 1: Definition of Selling

Chapter 6: Sales Call Procedure

DEFINITION OF SELLING

SELLINGSELLINGRefers to persuading people to make a favorable decision

relating to a product or a service, that is perceived to be profitable to both parties

DEFINITION OF SELLING SKILLS

SELLING SKILLSSELLING SKILLSSelling skills refer to the ABILITIES involved in THE PROCESS OF HELPING THE

CUSTOMER BUY as effective and successful as possible for both you and the customer.

THE ROLE OF THE SALESMAN

The Ultimate Role of a Salesman is to

INFLUENCE customers’ decision-making, thus

delivering the Company’s Business

Objectives.

SALES FORCE MANAGEMENT CYCLERoute Plan

Call Cards

Sales Call

Category Driven Channel Focused Sales Management

Call Performance

Sales Order Key Account Offtake

Sales Order Processing Call Card Data Entry

Service Performance Reports Call Cards

Sales Performance Reports

Distribution Focus Reporting (Management By Exception)

Pro-Active Planning

DAILY ROUTINE SALES CALL PROCEDURE

DAILY ROUTINEFollow these steps in your daily routine

and the activities that take place.START OF THE DAY

PREPARATION

TRADE COVERAGE

CLOSING OF THE DAY

** CYCLE PLANNING

** QUARTERLY PLANNING

(** A “MUST” ACTIVITY FOR EACH GROUP

END OF THE DAY

CLOSING OF THE DAY• Complete Reports• Reconcile Coll. / Deposits• Review Performance• Daily Plan for Next Day

TRADE COVERAGE

• First Call Coverage

• Sales Call Management

• Store Check

• Conduct Competitive ActPREPARATION

• Review Work Plans / Load for the Day

• Check Vehicle

• Check Sales Tools

• Submit /Receive Call Cards Invoice / Collections

START OF THE DAY

QUARTERLY PLAN

END OF THE DAY

CYCLE PLANNING

Follow these steps in your daily routine and the activities that take place.

SALES CALL PROCEDURE1. PRE-CALL PLANNING

It is a MUST that Call Cards should be used at all times so you can check the ff: data

P Products you sold during your last call (Invoices, Orders, Delivery)

R Recall what transpired during your last conversation and/or transaction

O Opportunities to convince the customer to carry additional products

B Best time to call the particular customer / outlet so your call will not be wasted

I Initiate in making a sales plan to make your presentation more organized

N New ideas should be explored to get the customer’s interest and increase business

G Gather all selling, merchandising, equipment, resale materials needed for the call

SALES CALL PROCEDURE2. GREET CUSTOMER

Consider the following guidelines for this step :

G GREET customers warmly and with a

A firm handshake indicates your enthusiasm.

U ULTIMATE motive is to get their attention and interest on what you’re about to give them. Note, don’t over-react. It should fit your personality.

E ELIMINATE negative comments or questions like “How’s Business?”; create a positive atmosphere that’s appealing to them.

S STATE your name, the co., and the products if you’re new. If you’re familiar already give them the Respect they deserved.

T TELL customer with enthusiasm that you are bringing a very profitable business and great news to them.

SALES CALL PROCEDURE3. STORE CHECK

The Store Check is essentially linked to inventory count/check. There will always be opportunities to move products to the display area.

S SIZE & SKUs of products carried. Distribution of brands and size must align with the PLAN-O-GRAM

P PRICING Structure. Always check if your products are properly priced. SRO must be followed at all times. Also, check if your price is competitive against leading brand.

E EXISITING shelf displays. Brands carried must have a fair share of shelf space and displayed as plan-o-grammed.

E EXISTING Off-Shelf Displays. Always suggest enough buffer stocks to replenish shelf displays. Compute for display turn-over according to economy of scale.

D DISPLAY Opportunities. Always look for new display areas/ space to further improve visibility & increase awareness product off-take.

SALES CALL PROCEDURE4. INVENTORY COUNT/CHECKThis is a vital step in every call. This is where you finalize your volume plan while considering the following factors :

STOCK MOVEMENTSPECIAL PROMOTIONAL EVENT

STOCKS-ON-HAND

Your responsibilities vis-à-vis the importance of this step.

TO THE OUTLET- provide them with the service that will enable them to save time in writing an order in line with their requirements. To advice them on stock mgt., I.e. FIFO, infestations, flooding, leaks & others to prevent damage / bad stocks.

STOCK EXPIRY DATES / F I F O

TO THE COMPANY- provide information about outlet’s stock position level and offtake, balance promo packs, stocking level of competitors and their activities in the store.

SALES CALL PROCEDURE5. PLAN ORDER

What you need for an effective immediate, one time planning

All you need is a review of your customer call cards and all data needed for an effective, immediate, one time planning are there.

Always use the Call Cards on every call,not at home after work.

Fill-up all pertinent data required in accomplishing your daily call cards.

SALES CALL PROCEDURE6. PERSUASIVE SELLING PRESENTATION5 Steps of Persuasive Selling Presentation:

Step 1. Summarize the SituationUnderstanding the Outlet’s & Company’s Situation

Step 2. State the Idea. Give Practical Suggestions.

Step 3. Explain How It Works. Make the outlet understand your suggestion.

Step 4. Reinforce Key Benefits. Make the outlet realize the features and benefits.

Step 5. Close. Make the outlet easy to agree with your plan.

6.1. PERSUASIVE SELLING PRESENTATION

What you need for an effective Presentation

UNDERSTANDING - the outlet’s & co’s situation & make them understand your suggestion

PLANNED ORDER- make the dealer realize the benefits using a home made / company supplied organizer

KNOWLEDGE- of the customer’s needs. Should have a S.M.A.R.T. (Specific, Measurable Attainable, Realistic, Time-bounded) suggestions

ABILITY TO:A- Arouse their attentionI- Get their INTERESTD- Stimulate DESIRE to buy and sell our productsA- make them ACT positively on your planned order

PERSISTENCY- the more persuasive you are, the more sales and distribution you will make

ANSWER- to possible questions for more information & to clarify issues for better understanding & approval.

CONFIDENCE/ FLUENCY- the greater amount of confidence and fluency you have, the more convincing your presentation will be.


What you need for an effective Presentation

EFFECTIVE CLOSING TECHNIQUE- asking for customer’s approval on your planned order. Present your sales plan/order with complete qty., pricing & notations for their confirmation.METHODS OF CLOSING:

ALTERNATIVE CLOSE- gives the buyer a choice of 2 positive situation, either one should give you the order ex. “Let’s book 20 cases or better 30 cases so you don’t ran out-of-stocks”.

THIRD PARTY REFERENCE- refers to the other customer’s orders ex. “ All the stores in this area have made an advance booking. Let’s place one now.”

OBJECTION CLOSE- after overcoming an objection, close the sale.

SIMILAR SITUATION CLOSE- refers to previous purchases made by the customer on a particular product or situation ex. “Just like last

wk. You ordered 20 cases, this time let’s increase it to 30 cases to avoid OOS.”

DROP DEAD CLOSE- bluff them that you placed their orders already and to be shipped on a particular date ex. “ I took the liberty of placing your order due to urgency of the situation.”


What you need for an effective PresentationWHEN TO CLOSE:

CLOSE AS OFTEN AS POSSIBLE

WHENEVER YOU THINK THEY ARE READY TO BUY

AFTER STRONG POINTS IN YOUR PRESENTATION

AT THE END OF YOUR PRESENTATION

SALES OBJECTIONS - these are not necessarily stumbling blocks but are signs of interest. The key to handling objections successfully is,

KNOWLEDGE - of your products, of your promotional opportunity, of the customer’s profile & personality , of yourself (strengths / weaknesses)

HANDLING OBJECTIONS:

*** COMMON ANSWERS TO OBJECTIONS CAN BE DERIVED FROM HIGLIGHTING THE BENEFITS OR THE TESTIMONIALS OR YOUR NEXT COVERAGE

SALES CALL PROCEDURE7. RECORDS & REPORTS

Accomplish the following records & reports during the call :

SALES ORDER FORM

CUSTOMER CALL CARDS

DAILY FIELD REPORTS

OTHERS AS NEEDED

When you summarize your sales transactions, make sure that the leader understands RFM’s terms and let the dealer sign the sales oder / issue a PO to confirm their order.

SALES CALL PROCEDURE8. MERCHANDISING ACTIVITY

What is Merchandising?

It is the art of presenting RFM Branded Foods products in acreative & innovative way to:

> Persuade the Outlets to purchase > Attract the consumers to buy

PRIORITIES IN MERCHANDISING

RANGE - R

SPACE - S

VISIBILITY - V

PROMOTION - P

SALES CALL PROCEDURE8.1. MERCHANDISING ACTIVITY

ACTIVITIES IN MERCHANDISING

DISPLAY - Characteristics of a good display- it is in prominent or high traffic location- it is attractive enough to command attention- it includes a price & a reason to buy

SHELF SPACE & POSITION

- ensure that each of our brands, varieties & sizes carried by the outlet has a reserved space on the shelf in a position where it is visible to consumer, customer and helpers alike.USE OF DISPLAY MATERIALS - 3 TYPES

- Promotional Materials

- Brand Materials

- Standard Materials

IMMEDIATE DISPLAY & RESALE WORK ON PROMOTED PACKS

- ensure that the price of the product displayed is clearly conveyed to the consumer and the trade

SALES CALL PROCEDURE8.2. MERCHANDISING ACTIVITY

GUIDES TO EFFICIENT MERCHANDISING

At every visit, check the shelf displays. Always try to sell extra facing / additional SKU Plan merchandising displays carefully Remember the merchandising V I S A

V - Visibility

I - Impact

S - Stability

A - Appeal

Eye level is BUY Level

Make waiting time productive - MERCHANDISE

Act as merchandising consultants to our customers

Check stock positions so you can plan properly according to stock depth of your display as well as warehouse / stock room buffer stocking.

SALES CALL PROCEDURE9. DELIVERY & PAYMENT

It is of utmost importance that you always get the payments before leaving the call. As much as possible, do not accept personal checks unless you are allowed to extend term payments and knew the customer for a long time.

R E M E M B E R !

“ A SALE IS NOT A SALE

unless COLLECTED”

SALES CALL PROCEDURE10. TRADE RELATIONS

How to develop Goodwill in the trade :

Be HONEST, not just dealing with the money & goods but also in statements and claims.

Be FAIR. Give all customers in similar circumstances, similar considerations and treatments.

TELL CUSTOMER NEXT COVERAGE.

• In this step, tell customer your next coverage before you leave the call. This will enable the dealer to prepare a budget for purchasing of stocks on your next call according to product turn-over.

Show genuine concern for the outlet’s business by regular coverage, responsible advice on pricing, proper handling of stocks and merchandising support in proportion to his volume potential and by not overloading nor underselling.

SALES CALL PROCEDURE11. POST-CALL ANALYSIS

As you move on the next call, analyze the outcome of the recently concluded call. Ask yourself the following questions:

HOW AM I DOING?WHY?

WHAT AM I GOING TO DO ABOUT IT?

Take time to determine how best you can overcome your weakness and improve your strong points; apply the lesson learned from each call to succeeding calls.

The selling cycle now begins again. Repeat the Sales Call Procedure for your next call.

If you were successful, determine the approach responsible for the success so you can use it in other calls. Conversely, try to discover the reason for failure so you can avoid it in the next call.

“The THING that COUNTS is not what we KNOW but the ABILITY to use what we KNOW”

SALES CALL PROCEDURE

POST-CALL ANALYSIS PRE-CALL

PLANNING

GREET CUSTOMER

STORE CHECK

INVENTORY COUNT/CHECK

PLAN ORDERRECORDS & REPORTS

PERSUASIVE SELLING PRESENTATION

MERCHANDISING ACTIVITY

These 11 steps must be followed in logical & progressive sequence :

TRADE RELATIONS

DELIVERY & PAYMENT

SALES CALL PROCEDUREThese steps must be followed in logical and progressive sequence :

1. PRE-CALL PLANNING

2. GREET CUSTOMER

3. STORE CHECK

4. INVENTORY COUNT / CHECK

5. PLAN ORDER

6. PERSUASIVE SELLING PRESENTATION

7. RECORDS & REPORTS

8. MERCHANDISING ACTIVITY

9. DELIVERY & PAYMENT

10. TRADE RELATIONS

11. POST-CALL ANALYSIS


THE ENDTHE END

VIC RAMIL H. RAMIL


BASIC CALL PROCEDURES FOR BOOKING ACCOUNTS

Chapter 5: Daily Routine

Chapter 4: Sales Force Management Cycle

Chapter 3: The Role of a Salesman

Chapter 2: Definition of Selling Skills

Chapter 1: Definition of Selling

Chapter 6: Sales Call Procedure

DEFINITION OF SELLING

SELLINGSELLINGRefers to persuading people to make a favorable decision

relating to a product or a service, that is perceived to be profitable to both parties

DEFINITION OF SELLING SKILLS

SELLING SKILLSSELLING SKILLSSelling skills refer to the ABILITIES involved in THE PROCESS OF HELPING THE

CUSTOMER BUY as effective and successful as possible for both you and the customer.

THE ROLE OF THE SALESMAN

The Ultimate Role of a Salesman is to

INFLUENCE customers’ decision-making, thus

delivering the Company’s Business

Objectives.

SALES FORCE MANAGEMENT CYCLERoute Plan

Call Cards

Sales Call

Category Driven Channel Focused Sales Management

Call Performance

Sales Order Key Account Offtake

Sales Order Processing Call Card Data Entry

Service Performance Reports Call Cards

Sales Performance Reports

Distribution Focus Reporting (Management By Exception)

Pro-Active Planning

DAILY ROUTINE SALES CALL PROCEDURE

DAILY ROUTINEFollow these steps in your daily routine

and the activities that take place.START OF THE DAY

PREPARATION

TRADE COVERAGE

CLOSING OF THE DAY

** CYCLE PLANNING

** QUARTERLY PLANNING

(** A “MUST” ACTIVITY FOR EACH GROUP)

END OF THE DAY

DAILY ROUTINE

CLOSING OF THE DAY• Complete Reports• Reconcile Coll. / Deposits•Submit /Receive Call Cards Invoice/Collections• Review Performance• Daily Plan for Next Day TRADE COVERAGE

• First Call Coverage

• Sales Call Management

• Store Check

• Conduct Competitive

Activity

PREPARATION

• Review Work Plans / Load for the day•Review Objectives(Sales, Distribution, Merchandising)•Check Vehicle•Check Sales Tools

START OF THE DAY

QUARTERLY PLAN

END OF THE DAY

CYCLE PLANNING

Follow these steps in your daily routine and the activities that take place.

SALES CALL PROCEDURE1. PRE-CALL PLANNING

It is a MUST that Call Cards should be used at all times so you can check the ff: data

P Products you sold during your last call (Invoices, Orders, Delivery)

R Recall what transpired during your last conversation and/or transaction

O Opportunities to convince the customer to carry additional products

B Best time to call the particular customer / outlet so your call will not be wasted

I Initiate in making a sales plan to make your presentation more organized

N New ideas should be explored to get the customer’s interest and increase business

G Gather all selling, merchandising, equipment, resale materials needed for the call

SALES CALL PROCEDURE2. GREET CUSTOMER

Consider the following guidelines for this step :

G GREET customers warmly and with a

A firm handshake indicates your enthusiasm.

U ULTIMATE motive is to get their attention and interest on what you’re about to give them. Note, don’t over-react. It should fit your personality.

E ELIMINATE negative comments or questions like “How’s Business?”; create a positive atmosphere that’s appealing to them.

S STATE your name, the co., and the products if you’re new. If you’re familiar already give them the Respect they deserved.

T TELL customer with enthusiasm that you are bringing a very profitable business and great news to them.

SALES CALL PROCEDURE3. STORE CHECK

The Store Check is essentially linked to inventory count/check. There will always be opportunities to move products to the display area.

S SIZE & SKUs of products carried. Distribution of brands and size must align with the PLAN-O-GRAM

P PRICING Structure. Always check if your products are properly priced. SRP must be followed at all times. Also, check if your price is competitive against leading brand.

E EXISITING shelf displays. Brands carried must have a fair share of shelf space and displayed as plan-o-grammed.

E EXISTING Off-Shelf Displays. Always suggest enough buffer stocks to replenish shelf displays. Compute for display turn-over according to economy of scale.

D DISPLAY Opportunities. Always look for new display areas/ space to further improve visibility & increase awareness product off-take.

SALES CALL PROCEDURE4. WAREHOUSE CHECKThis is a vital step in every call. This is where you finalize your volume plan while considering the following factors :

STOCK MOVEMENTSPECIAL PROMOTIONAL EVENT

STOCKS-ON-HAND

Your responsibilities vis-à-vis the importance of this step.

TO THE OUTLET- provide them with the service that will enable them to save time in writing an order in line with their requirements. To advice them on stock mgt., i.e. FIFO, infestations, flooding, leaks & others to prevent damage / bad stocks.

STOCK EXPIRY DATES / F I F O

TO THE COMPANY- provide information about outlet’s stock position level and offtake, balance promo packs, stocking level of competitors and their activities in the store.

SALES CALL PROCEDURE5. PLAN ORDER

What you need for an effective immediate, one time planning

All you need is a review of your customer call cards and all data needed for an effective, immediate, one time planning are there.

Always use the Call Cards on every call,not at home after work.

Fill-up all pertinent data required in accomplishing your daily call cards.

Use S.O. Form with Suggested Order per SKU based on the store’s requirement.

SALES CALL PROCEDURE6. COLLECTION

It is utmost importance that you always follow- up collection status of your respective outlets. Always check status and make regular follow- ups to facilitate immediate processing of invoices. If problem/s exists, work your way/initiate proper reconciliation to avoid cases of “HOLD ORDERS”.Remember:

“ A SALE IS NOT A SALE

UNLESS COLLECTED”

SALES CALL PROCEDURE7. PERSUASIVE SELLING

PRESENTATION

Review Call Objectives (Sales, Promotions,Merchandising,Pricing)Talk to the decision maker

Present the following using the Persuasive Selling Format

• Promotions, New Products, Sales Orders Merchandising, Price Change and other pertinent business• Tell customer what he needs

• Highlight on the benefits

• Close the sale whenever possible

SALES CALL PROCEDURE7. PERSUASIVE SELLING PRESENTATION

5 Steps of Persuasive Selling Presentation:Step 1. Summarize the Situation

Understanding the Outlet’s & Company’s Situation

Step 2. State the Idea.

Give Practical Suggestions.

Step 3. Explain How It Works.

Make the outlet understand your suggestion.

Step 4. Reinforce Key Benefits.

Make the outlet realize the features and benefits.

Step 5. Close.

Make the outlet easy to agree with your plan.

Persuasive Sales Presentation

Sales Idea: Your wife wants to visit her parents tonight. A movie you wanted to see is on its last day in the theatre. How do you persuade her to watch the movieStep 1: “I understand you want to see your parents tonight. But the movie we’ve been planning to see is on its last night in the theatre.”Step 2: “Why don’t we invite your parents to watch the movie with us”.Step 3: “You can tell them not to cook dinner for us. We’ll pick them up at 5:30 p.m., watch the movie, then have dinner at 8:00 p.m. at the nearby restaurant.”Sales 4:” This way we get to see your parents and we also get to watch the movie! As for your parents they will surely be delighted”Step 5: “Why don’t you call them up to inform them, here’s the phone.”

Persuasive Sales Presentation

Sales Idea: Sell in a new product to a new customerStep 1: “Due to the consumer demand for such a product, our company has researched and developed this new product.”

Step 2: “This product will give you more business”Step 3: “For your initial purchase you will be given an off-invoice 10% price discount. The display material will be delivered to your store at the same time with the stocks...”Sales 4:” Your customer will be excited with this introductory promotion….…Product advertisement will boost demand…..”Step 5: “You can place your order now!”


What you need for an effective PresentationUNDERSTANDING - the outlet’s & co’s situation & make them understand your

suggestion

PLANNED ORDER- make the dealer realize the benefits using a home made / company supplied organizer

KNOWLEDGE- of the customer’s needs. Should have a S.M.A.R.T. (Specific, Measurable Attainable, Realistic, Time-bounded) suggestions

ABILITY TO:A- Arouse their attentionI- Get their INTERESTD- Stimulate DESIRE to buy and sell our productsA- make them ACT positively on your planned order

PERSISTENCY- the more persuasive you are, the more sales and distribution you will make

ANSWER- to possible questions for more information & to clarify issues for better understanding & approval.

CONFIDENCE/ FLUENCY- the greater amount of confidence and fluency you have, the more convincing your presentation will be.

SALES CALL PROCEDURE7.PERSUASIVE SELLING PRESENTATION

What you need for an effective PresentationEFFECTIVE CLOSING TECHNIQUE- asking for customer’s approval on your planned order. Present your sales plan/order with complete qty., pricing & notations for their confirmation.METHODS OF CLOSING:

ALTERNATIVE CLOSE- gives the buyer a choice of 2 positive situation, either one should give you the order ex. “Let’s book 20 cases or better 30 cases so you don’t ran out-of-stocks”.

THIRD PARTY REFERENCE- refers to the other customer’s orders ex. “ All the stores in this area have made an advance booking. Let’s place one now.”

OBJECTION CLOSE- after overcoming an objection, close the sale.

SIMILAR SITUATION CLOSE- refers to previous purchases made by the customer on a particular product or situation ex. “Just like last

wk. You ordered 20 cases, this time let’s increase it to 30 cases to avoid OOS.”

DROP DEAD CLOSE- bluff them that you placed their orders already and to be shipped on a particular date ex. “ I took the liberty of placing your order due to urgency of the situation.”


What you need for an effective PresentationWHEN TO CLOSE:

CLOSE AS OFTEN AS POSSIBLE

WHENEVER YOU THINK THEY ARE READY TO BUY

AFTER STRONG POINTS IN YOUR PRESENTATION

AT THE END OF YOUR PRESENTATION

SALES OBJECTIONS - these are not necessarily stumbling blocks but are signs of interest. The key to handling objections successfully is,

KNOWLEDGE - of your products, of your promotional opportunity, of the customer’s profile & personality , of yourself (strengths / weaknesses)

HANDLING OBJECTIONS:

*** COMMON ANSWERS TO OBJECTIONS CAN BE DERIVED FROM HIGLIGHTING THE BENEFITS OR THE TESTIMONIALS OR YOUR NEXT COVERAGE

SALES CALL PROCEDURE8. RECORDS & REPORTS

Accomplish the following records & reports during the call :

SALES ORDER FORM

CUSTOMER CALL CARDS

DAILY FIELD REPORTS

OTHERS AS NEEDED

When you summarize your sales transactions, make sure that the leader understands Distributor’s terms and let the dealer sign the sales order / issue a PO to confirm their order.

SALES CALL PROCEDURE9. MERCHANDISING

ACTIVITYWhat is Merchandising?

It is the art of presenting RFM Branded Foods products in acreative & innovative way to:

Persuade the Outlets to purchase Attract the consumers to buy

PRIORITIES IN MERCHANDISING

RANGE - R

SPACE - S

VISIBILITY - V

PROMOTION - P


ACTIVITYACTIVITIES IN MERCHANDISING DISPLAY - Characteristics of a good display

- it is in prominent or high traffic location- it is attractive enough to command attention- it includes a price & a reason to buy

SHELF SPACE & POSITION

- ensure that each of our brands, varieties & sizes carried by the outlet has a reserved space on the shelf in a position where it is visible to consumer, customer and helpers alike.USE OF DISPLAY MATERIALS - 3 TYPES

- Promotional Materials

- Brand Materials

- Standard Materials

IMMEDIATE DISPLAY & RESALE WORK ON PROMOTED PACKS

- ensure that the price of the product displayed is clearly conveyed to the consumer and the trade


ACTIVITYGUIDES TO EFFICIENT MERCHANDISING

At every visit, check the shelf displays. Always try to sell extra facing / additional SKU Plan merchandising displays carefully Remember the merchandising V I S A

V - Visibility

I - Impact

S - Stability

A - Appeal

Eye level is BUY Level

Make waiting time productive - MERCHANDISE

Act as merchandising consultants to our customers

Check stock positions so you can plan properly according to stock depth of your display as well as warehouse / stock room buffer stocking.

SALES CALL PROCEDURE10. TRADE

RELATIONSHow to develop Goodwill in the trade :

Be HONEST, not just dealing with the money & goods but also in statements and claims.

Be FAIR. Give all customers in similar circumstances, similar considerations and treatments.

TELL CUSTOMER NEXT COVERAGE.

• In this step, tell customer your next coverage before you leave the call. This will enable the dealer to prepare a budget for purchasing of stocks on your next call according to product turn-over.

Show genuine concern for the outlet’s business by regular coverage, responsible advice on pricing, proper handling of stocks and merchandising support in proportion to his volume potential and by not overloading nor underselling.

SALES CALL PROCEDURE11. POST-CALL ANALYSIS

As you move on the next call, analyze the outcome of the recently concluded call. Ask yourself the following questions:

HOW AM I DOING?WHY?

WHAT AM I GOING TO DO ABOUT IT?

Take time to determine how best you can overcome your weakness and improve your strong points; apply the lesson learned from each call to succeeding calls.

The selling cycle now begins again. Repeat the Sales Call Procedure for your next call.

If you were successful, determine the approach responsible for the success so you can use it in other calls. Conversely, try to discover the reason for failure so you can avoid it in the next call.

“The THING that COUNTS is not what we KNOW but the ABILITY to use what we KNOW”

SALES CALL PROCEDURE

POST-CALL ANALYSIS

PRE-CALL PLANNING

GREET CUSTOMER

STORE CHECK

WAREHOUSE CHECK

PLAN ORDERRECORDS & REPORTS PRESENTATION

MERCHANDISING ACTIVITY

These 11 steps must be followed in logical & progressive sequence :

TRADE RELATIONS

COLLECTION

SALES CALL PROCEDUREThese steps must be followed in logical and progressive sequence :

1. PRE-CALL PLANNING

2. GREET CUSTOMER

3. STORE CHECK

4. WAREHOUSE CHECK

5. PLAN ORDER

6. COLLECTION

7. PRESENTATION


9. MERCHANDISING ACTIVITY

10. TRADE RELATIONS



THE ENDTHE END

VIC RAMIL H. RAMIL

GENERAL MODELGENERAL MODEL

% Class % VolSegments Contibution

Strategically Located Matching & Flanking High End Free Enterprise Channels Display-Off &On Shelves

ABC-LowerC 2% 37% Product Exposure-CatMan ICO Driven-DSAS/mkets Impulsive Market-Battle Field Full Range-MassiveUpscale 1% 5% Specialty Outlets. Synergy Approach

Captive Market HB/PC/DS Captive Market Full Range-Massive Retail to Wholesale Matching-Product Fit

Low End CDE 10% 28% Huge in population Pricing Srat/VFM Grocery Market for CDE Promotional Placement CDE Dynamic Market-Clustering Placement-Image Bldg.

Mixed/Dev'tal CVS 85% 26% High Potential vs Census Right SKU to Right Outlet PMS/WS Revenue Driven Pricing Consideration

On Premise INSTL 2% 4% Initial Trials & Awareness - UAI Single to Group Usage

MODEL-CHANNEL DEVELOPMENTCHARACTERISTICS-UNIQUENESSMODE OF POSITIOING

Hierarchy of Importance

PLACEMENTMARKET IMPORTANCE Target Segment:

PRODUCT POSITIONINGPRODUCT POSITIONING

Strategy Concept and Principles:Strategy Concept and Principles:• This aims to give consumer wide range of selection from all available products or brands; giving consumers same products or brands w/ varying size, price & variants (PLS)

• This is normally done by arranging or showcasing our brands to occupy a clear, distinctive, competitive and desirable place in the point of sale vs. Competition

• Serving all lifestyles and walks of life.

• Our Job is to develop a distinct competitive edge and create awareness in the mind of consumers. Internally, it also gives us opportunity to protect our turf & fast moving as catalyst for slow moving.

• Creating a barrier for a new entrants in the market.

PRODUCT POSITIONINGPRODUCT POSITIONING

Channel Home Care Confectionery Alcoholic Beverages Snack Choco MilkType H & B Beverages NAB Foods Drinks IFFO

High End S/Market Push & Pull Push & Pull Cross merchCross MerchABC-LowerC Class A Full Range Full Range Full Range Full Range Full Range Full Range Full RangeS/mkets Class B Full Range Full Range Full Range Full Range Full Range Full Range Full RangeAB-Upper C HB/PC Full Range Optional Optional Product Fit Product Fit Optional

Captive Market HB/PC/DS DS/Dept Str Full Range Optional OSPS Optional Optional OptionalGrocery Selective/FM Full Range Selective/FM Full Range Full Range Full Range Full Range

Low End CDE Mini Mart Selective/FM Full Range Selective/FM Sales Mix- Full Range Product Fit Full Range Grocery Product Fit CDE Conv'nce Str Selective/FM Full Range Full Range Sales Mix- Full Range Full Range Full Range

Mixed/Dev'tal CVS/PM Public Mkts Selective/FM Full Range-Sel. FM Size/Packs Popular Size Full Range Product Fit Full Range WS/Inst'l Wsaler Selective/FM Selective/FM FM Size/Packs Full Range FM Size/PacksProduct Fit Product Fit

On Premise HORECA Optional FM Size/Packs Full Range Product Fit FM Size/PacksProduct Fit Product Fit

Target Segment:


PROMOTION STRATEGYPROMOTION STRATEGY

Strategy Concept:Strategy Concept:• Aim to drive Brand Equity Building-Create Brand Awareness, top of mind consistent to selling activities & programs. Develop brand switching.

• Supports like category cluster or promotional with premiums as in pack banding, bundling, free goods, promo contest will increase mileage and in line with value for money.

• Price-off is situational as it may not result to brand switching but more on forward buying from current users. In store programs, I.e. merchandising contest, off-shelf appearance, store in house sell-out programs are temporary need continuity.

• Strategy must develop and result to brand pull, product preference and differentiation.

PROMOTION STRATEGYPROMOTION STRATEGY

Channel Home Care Confectionery Alcoholic Beverages Snack Choco MilkType H & B Beverages NAB Foods Drinks IFFO

High End S/Market Tactical Sell-In to Sell-Out Tactical Tactical Tactical Tactical TacticalABC-LowerC Class A Promo Girls Price Off Price Off Display Contest Price off Sell-In to Sell-Out Merch ContestS/mkets Class B Promo Girls Bundling Promo Contest Lote Packing Bundling BundlingAB-Upper C HB/PC Pack Banding Bundling Tactical Tactical Tactical Tactical

Captive Market HB/PC/DS DS/Dept Str Promo Contest Trade Disct Trade DisctGrocery Lote Packing Sell-In to Sell-Out Sell-In to Sell-Out Sell-In to Sell-Out Lote Packing Price Off Price Off

Low End CDE Mini Mart Lote Packing Sell-In to Sell-Out Price Off Price Off In-Pack Band Bundling Bundling Grocery Price Off Volume Incentive Promo Contest Bundling CDE Conv'nce Str Bundling Bundling Bundling Lote Packing Bundling Bundling Bundling

Mixed/Dev'tal CVS/PM Public Mkts Lote Packing Volume Incentive Bundling Lote Packing Price Off Bundling Price Off WS/Inst'l Wsaler Vol Incentive Volume Incentive Bundling Volume Incentive Lote Packing Bundling Volume Incentive

On Premise Horeca Price Off Price Off Price Off Price Off Price off Price Off Price Off

Target Segment:


Channel Targeted Scope Durn. Objectives Best Fit Program Key Performance IndexType Segments Expected Results

A. Suprmrkets Create Mass Appeal Price -Off Upper Trade ABC Top Accts USL Increase off-take. Sell-out > bundling Sales Volume before vs post prog

1-mo Move out Inventory In-Case/Pack banding % Growth vs prior period.Top Accts Incease stock depth/weight Volume discount Stock cover is 2X call freq.

Trade Dealer Incentive Shelf space inc by 20%.Product Positioning- Tactical - Programs % Brand Penetration. New & Existing Brands -Sampling, Push Girls Brand availability

1-Cyc Complete & Full Range Trade Dealer Incentive Sku listing indeces.to Placement Trade Discount Ratio of total sku vs sku listed.1QTR Special Credit Term

Salesforce IncentiveBrand Equity Bldg / Brand Image Merchandising Contest Massive on-shelf displays.Develop top of mind awareness Disers Incentives Creation of additonal displaysBrand Pull Consumer Rebates Cross Merchandising.Brand Switching Banding/Price Off/Rebates Off Take increaseCreate Mass Appeal Sampling &Push GirlsInduce trials Promo Contest-Raffle

Lower Trade CDE Selective Long Outlet's Development-Support Wholesale Program Increase in wholesale volume Durn in Wholesale. Peddlers Incentive sales by 50%

Bridging the Gaps-Dist'n & Pene Lote Packing Wider reach & penetrationSelective Increase off-take. Sell-out > bundling Sales Volume before vs post

Move out Inventory In-Case/Pack banding program % Growth vs prior pd.Create Mass Appeal/TMAware Price -Off/consumer rebate Sales Volume before vs post Move-out of Inventory Sell-out > bundling program % Growth vs prior pd.Brand Equity Bldg / Brand Image Merchandising Contest Massive on-shelf displays.Develop top of mind awareness Disers Incentives Creation of additonal displaysBrand Pull Consumer Rebates Cross Merchandising.

Cross Merchandising.

BEST FIT PROGRAMSBEST FIT PROGRAMS


Channel Targeted Scope Durn. Objectives Best Fit Program Key Performance IndexType Segments Expected Results

B. Specialty Stores ABCDE All 1-QTR Brand Penetration Tactical Display Rental % Brand Penetration vs prior pd.Health & Beauty Teens/ Brand Positioning Modular Display Forward Stock higher than % MS.Personal Care Yuppies Outlet's Push Drive TDI or Discount Volume Growth

All SKU Listing for New Categories Intro Discount Listed Brand/categories/sku'sCaptive Market SKU Listing for Existing Sampling /In-store

Create Traffic-Awareness Tactical ProgramsSalesforce Incentive

All Short Brand Equity Bldg Store's Staff Support Top of awarenessTerm Brand Pull Consumer Rebates Consumers' Response/Fdbcks

All 1-Mo Brand Switching Banding/Price Off/Rebates Off Take increaseSampling &Push Girls Sales Improvement by __%Flyers Prog/ POSM's

Induce trials Promo Contest-Raffle


Channel Targeted Scope Durn.Objectives Best Fit Program Key Performance IndexType Segments Expected Results

C.PopuLar Channel Selective 1-QTR Brand Penetration Salesforce Incentive % Variance in Brand pene vs priorGrocery Type CDE Right SKU to Right Outlets Value for Money period. Low-End Segment CuriousPopular Channel Buyers Increase Stock depth Volume Incentive 80:20 ratio for Fast to slow moving

Trials Lote PackingD. Developmental Transient Increase Distribution Depth / Trade Dealer Incentive % Variance in selling outlets vs. Trade Channel Yuppies Reach Alternative Dist'n Mode non-selling vs prior period.

Convenience Stores Switchers Selective Long Influence outlet's to push Wholesale/Peddlers Inctive % Growth in sales vs prior period.Public Market Stalls Durn Lote PackingWholesalers Massive Display/Impulsive Tactical disers deployment Display-Power Block

appearance.

On Premise Accts :

High End Tourists All to Cyc Create Demand Price Off % Improvement vs SKU placementAB Selective Brand Switching Promo Contest % Off Take Improvementupper C Top Mind Awareness Special Events Support % Sales Growth

Off Take incentive Programs

Low End 80-20 15 dys Create Demand Promo Contest % Improvement vs SKU placementCD Pareto 30 dys Brand Switching Dealer Aid % Off Take Improvement

Top Mind Awareness Incentive Scheme % Sales GrowthMotorists Off Take Price Off

Call To Action Visibility Campaign

CUSTOMER CONTRIBUTION STATEMENT

SAMPLE FORMAT

CUSTOMER / CHANNEL / SALES AREA CONTRIBUTION STATEMENT

CUSTOMER: MAGIC STORES

CATEGORY: BEVERAGES

CURRENT YEAR PLAN

Amount %

NPS Amount %

NPS

(Mio Euro)

(Mio Euro)

GROSS PROCEEDS OF SALES 111 120

Less: General Price Reductions 11 12

NET PROCEEDS OF SALES 100100.0

% 108100.0

%

Less: Performance Trade Expenses

Space 0.5 0.5%

(of which) Listing Fees 0.1 0.1%

Trade Promotional Activities 3 3.0%

Specific Target Incentives

Total Performance Trade Expenses 3.6 3.6%

Non Performance Trade Expenses

Ad-Hoc Expenses 1 1.0%

On-going Expenses 2 2.0%

Total Non Performance Trade Expenses 3 3.0%

Cash Discount (Settlement Discount) 2 2.0%

Total Deals, Allowances and Payments 8.6 8.6%

REVENUE, AFTER TRADE FUNDS 91.4 91.4% 108100.0

%

Bad Debts

Bad Goods (Sales accountability) 1 1.0%

GROSS CUSTOMER / CHANNEL / SALES AREA CONTRIBUTION 90.4 90.4% 108

100.0%

Less: Other direct Customer related Expenses and Allowances

(specifically attributable) :

Distribution Costs, Allowances & Expenses

Distribution Costs 4 4.0%

Distribution Allowances

Selling Expenses

KAM Team / Trade Marketing 0.5 0.5%

Field Sales Force 2 2.0%

Cost of Other Selling Activities

Commissions to Agents / Sales Persons

Merchandising Expenses and / or Allowances

Costs of Sales Support Fixed Assets (Depreciation, M+R)

Cost of Credit

Product Customisation Costs

CUSTOMER / CHANNEL / SALES AREA CONTRIBUTION 83.9 83.9% 108100.0

%

Less: Variable Cost of Goods Sold 50 50.0%

=NET CUSTOMER / CHANNEL / SALES AREA CONTRIBUTION 33.9 33.9% 108

100.0%

CCUSTOMERUSTOMER FFOCUS OCUS CONCEPTCONCEPT

GENERAL TRADE“ MOHICAN “

CCUSTOMER USTOMER FFOCUSOCUSMODULEMODULE

RFM BRANDED FOOD GROUP

VIC RAMIL H. RAMILVIC RAMIL H. RAMIL

Objectives:Objectives:

To acknowledge the importance of your work to a specific customers/customized. To introduce focus on the customer as the driving principle of customer service. To share with you what customers regard as important, account or outlet specific. To introduce the customer interaction cycle and give you practice in using its supporting skills.

Adapting Customer Adapting Customer FocusFocus


To help you understand and empathize with customers. To emphasize the importance of teamwork. To stress the importance of recovering from mistakes. To build your confidence in handling customers.

Creating Customer Focus cont’d.


WHAT IS CUSTOMER FOCUS?

Total OrganizationTotal Organization engaged in engaged in delivering to customers the highest delivering to customers the highest quality products and service.quality products and service.

Value is measured in Value is measured in Customers’ Customers’ TermsTerms (not the organization); the (not the organization); the extent to which you meet the needs extent to which you meet the needs and expectations of Customers.and expectations of Customers.


WHY IS CUSTOMER WHY IS CUSTOMER FOCUS IMPORTANT?FOCUS IMPORTANT?

To maintain and build a competitive To maintain and build a competitive

edge & advantage.edge & advantage.

Do better in market place.Do better in market place.

Growth in profit margins.Growth in profit margins.

To be leaders in the field or trade.To be leaders in the field or trade.


What do Customers Care What do Customers Care About?About?

RReliabilityeliability: ability to perform the promised service : ability to perform the promised service dependably and accurately.dependably and accurately.

AAssurancessurance: knowledge and courtesy of employees : knowledge and courtesy of employees and their ability to convey trust and confidence.and their ability to convey trust and confidence.

TTangiblesangibles: physical facilities, equipment, appearance : physical facilities, equipment, appearance of personnel, reports, invoices, and so on.of personnel, reports, invoices, and so on.

EEmpathympathy: caring, individualized attention.: caring, individualized attention.

RResponsivenessesponsiveness: willingness to help customers and : willingness to help customers and provide prompt service.provide prompt service.


THE CUSTOMER THE CUSTOMER INTERACTION CYCLEINTERACTION CYCLE

ReceivingReceiving• Be ReadyBe Ready• WelcomeWelcome

UnderstandUnderstandinging• ListenListen• AskAsk• RestateRestate

HelpingHelping• Offer information and Offer information and OptionsOptions• Set expectationsSet expectations• Set AgreementSet Agreement

KeepingKeeping• Check for Check for SatisfactionSatisfaction• ThankThank• BridgeBridge• Follow upFollow up


CUSTOMER FOCUS FOR CUSTOMER CUSTOMER FOCUS FOR CUSTOMER SATISFACTIONSATISFACTION

BUSINESSBUSINESSBUILDINGBUILDING

BUILDINGBUILDINGBUSINESSBUSINESSALLIANCEALLIANCE

TAILOR-FITTAILOR-FITACTIVITIES-ACTIVITIES-PRACTICESPRACTICES

CUSTOMIZEDCUSTOMIZED

COST EFFECTIVECOST EFFECTIVEPROGRAMPROGRAM


KEY ELEMENTS KEY ELEMENTS Business BuildingBusiness Building


• Synergy of Activities• Adapt Best Practices• Support & Reinforce Plans / Programs,• Introduce New Ideas, Ways & Means.• Develop & Manage New Ways • Develop Competitiveness • Accounts, Outlets, Channel Specific.

KEY ELEMENTS KEY ELEMENTS Building Business AllianceBuilding Business Alliance


• Support move to cut down Cost of Non-Conformances. (CONCS)• Win-Win Programs Application• Alignment of Plans & Programs between Business Partnership• Open Communication & Coordination

KEY ELEMENTS KEY ELEMENTS Tailor-Fit Activities / Dove TailTailor-Fit Activities / Dove Tail


• Performance Review / Analysis ( N. A.) • Specify Facts & Apply Cause & Effect• Resolve Critical Issues• Plan Out Best Fit Programs• Allocate Funding ( TM SUPPORTS ).• Monitor Results Periodically.

KEY ELEMENTS KEY ELEMENTS Cost Effective-Efficient Programs Cost Effective-Efficient Programs


• Mutually Agreed Programs ( Scope & Duration) • Maximization of Resources deployed for Optimum Results.• Brand Equity Building, Off-take generating or Build Trade Confidence.• Cost-Benefit Analysis.

BUSINESS BUILDING BUSINESS BUILDING SIGNIFICANT COMPONENTS: SIGNIFICANT COMPONENTS:


• COMPARATIVE SALES ( Trending ) > Previous Periods,Per SKU/Per Month• TRADE SUPPORT EXTENDED• TRADE MKTG PROGRAMS APPLIED• INCREMENTAL SALES AS DERIVATIVES• SALES FORECAST ( Per SKU/Per Month )• PLANNED SUPPORTS/PROGRAMS• RATIO OF TTS vs. SALES RESULTS.

Business Plan SampleBusiness Plan Sample


TOTAL CATEGORY ( PESOS) 0

YEAR 2005 ( PROJECTIONS )

TOTAL CATEGORY ( PESOS)

PROJECTED GROWTH#DIV/0!

EXPENSES-YR 2005TRADE PROMO ACTIVITIESDISCOUNT ( LESS 10,LESS 5 ) 0DEALSFREE GOODSTOTAL TRADE SPENDINGDISPLAY RENTAL-SPACE MASS DISPLAY SHELF RENTAL ADDITIONAL DISPLAY

NON-PERFORMING TRADE EXPENSES LISTING FEE INTRODUCTION DISCOUNT/FEE ANNIVERSARY SUPPORT SPECIAL EVENTSIN-STORE PROMOTIONAL ACTIVITIES SELL-IN SELL-OUTSPECIFIC TARGET INCENTIVESOTHERS: SPECIFYTOTAL SELLING EXPENSESCOST TO SALES RATIO

EXPENSES-YR 2003TRADE PROMO ACTIVITIESDISCOUNTDEALSFREE GOODSTOTAL TRADE SPENDINGDISPLAY RENTAL-SPACE MASS DISPLAY

Business Plan SampleBusiness Plan Sample


EXPENSES-YR 2003TRADE PROMO ACTIVITIESDISCOUNTDEALSFREE GOODSTOTAL TRADE SPENDINGDISPLAY RENTAL-SPACE MASS DISPLAY SHELF RENTAL ADDITIONAL DISPLAYCHILLER SPACE RENTAL NWPI' CHILLER (UNITS) REQT'S NWPI'S CHILLER IN-HOUSE CHILLERNON-PERFORMING TRADE EXPENSES LISTING FEE INTRODUCTION DISCOUNT/FEE ANNIVERSARY SUPPORT SPECIAL EVENTSIN-STORE PROMOTIONAL ACTIVITIES SELL-IN SELL-OUTSPECIFIC TARGET INCENTIVESOTHERS: SPECIFYTOTAL SELLING EXPENSESCOST TO SALES RATIO

Effectiveness as Effectiveness as EfficiencyEfficiency

VIC H. RAMIL VIC H. RAMIL

OUTLINES OF TIMINGNEGOTIATION DURATION

RANGEPRICE POINTPROMOTIONS SELL-IN SELL-OUTIN-STORE SUPPORTFACING / SPACEMERCHANDISINGDISPLAY AREAS

COMMENTS :

OUTLINES OFNEGOTIATION


COMMENTS :

OUTLINES OFNEGOTIATION


COMMENTS :

MAKRO

SHOE MART

RUSTANS

KEY POINTS / HIGHLIGHTS



TRADE NAME

ACCOUNTS /TRADE NAME

ACCOUNTS /TRADE NAME

ACCOUNTS /

Nestlé Waters Philippines, Inc.

1. To provide our Merchandising Force with the specific information on information on basic merchandising standards, principles, and philosophies.

2. To provide our Merchandising Force with ample knowledge about the brands, its competitiveness, consumer acceptance & needs for trade push and pull creation.

3. To give regular merchandisers a refresher course on merchandising. 4. To know, learn and understand the Role, Task, Responsibilities and Accountabilities of a merchandiser.

TRAINING OBJECTIVES :TRAINING OBJECTIVES :

1. COC’S ( CHECK OUT COUNTERS DISPLAY, PAPAANO ? 2. PLAN O GRAM3. MASS DISPLAY - WHY & TYPES. 4. SHARE OF SHELF5. INCREASE- FACING OR SPACE6. SUGGESTED ORDERING – OFF TAKE7. MAXIMUM CAPACITY PER SHELF ?

EXPECTATIONS :EXPECTATIONS :

Chapter 9 : Merchandising Call Procedure

Chapter 8 : Communications in Selling

Chapter 7 : What is a Good Display?

Chapter 3 : Display Arrangement & Building

Chapter 4 : Merchandising Objectives

Chapter 5 : Merchandising & Display Facts

Chapter 6 : What is Displaying?

Chapter 2 : What is Merchandising?

First Part - Basic Merchandising Skills:

Chapter 1 : Words of the Experience

Chapter 10: Reports (Inventory, Offtake, Planogram, Competitive)

Chapter 13 : Merchandisers Responsibility

Chapter 12 : Merchandisers Key Results Area

Second Part - Consortium Merchandising

“ “ The secret of my success is that I The secret of my success is that I look at a coin. On one side, it look at a coin. On one side, it

reminds me that without sales, reminds me that without sales, there is no merchandising. On the there is no merchandising. On the

other side, it reminds me that other side, it reminds me that without a good and proper without a good and proper

merchandising job, there is no merchandising job, there is no sales or poor sales at my next call. sales or poor sales at my next call.

So I realized that SALES and So I realized that SALES and MERCHANDISING are two sides of MERCHANDISING are two sides of

the same coin.”the same coin.”

The Words of the Experience

A display can give you a bigger sales increase that any other marketing tool; more than promotion and more than media.

Display space and siting is difficult to obtain BUT easy to loose. So, once you have got it, retain and improve on it.

It is easiest thing in this world to get a NO, however, it makes much more fun to get a YES.

The Words of the Experience

The ART of presenting RFM’s products in a CREATIVE and INNOVATIVE way to :

PERSUADE the outlets to purchase. ATTRACT consumers to buy. Call to Action


Make products appear as MARKET LEADERS To display latest POINT OF SALE material and

remove outdated, faded or damaged material Create NEW DISTRIBUTION POINTS.


GENERATE and MAINTAIN the largest possible shelf space.

Improve OFFTAKE for all products.

STIMULATE and MOTIVATE placement of orders.

Ensure display at ABOVE STANDARD for optimum sales and product appearance

Display Types:

On Shelf Display or Primary Shelf DisplayThese are products normally displayed on

the gondola shelf or shelves of the supermarket. Products are normally grouped together according to its category.

Display Arrangement & Building

Off Shelf DisplayThese are products displayed outside of the

gondola shelves. Some are displayed massively, some are displayed using promotional racks or tiers and still some on the checkout counters.

Display Arrangement & Building On Shelf Display or Primary Shelf Display

Display Arrangement & BuildingTypes of Off Shelf Displays1. Mass Display / Island Displays2. Gondola End Displays3. Promotional Displays

4. Check-out Counter Displays5. Dump Bin Displays

6. Perimeter Wall / Front Window Displays

Display Arrangement & BuildingTypes of Off Shelf Displays1. Mass Display / Island Displays2. Gondola End Displays

Display Arrangement & BuildingTypes of Off Shelf Displays3. Promotional Displays

Display Arrangement & BuildingTypes of Off Shelf Displays4. Dump Bin Displays

5. Perimeter Wall / Front Window Displays

Display Arrangement & BuildingTypes of Off Shelf Displays6. Check-out Counter Display / Counter Top Display

Merchandising Objectives

AVAILABILITY

ACCESSIBILITY

VISIBILITY

FRESHNESS

Merchandising Objectives AVAILABILITYAchieve multiple distribution points in each outlet


Enable consumers to see, reach, and touch our products at the point of sale.

ACCESSIBILITY


Make our product look dominant in each category. VISIBILITY

Achieve display dominance and / or fair share of space.


Multiface “topsellers” whenever possible VISIBILITY

Group products together whenever possible.


Use shelf talkers / signs whenever possible VISIBILITY

Arrange products so that our brand name / logo face consumers.


Ensure we have the right products in correct quantities in the shelf at all times.

Ensure First In-First Out basis.

FRESHNESS

Merchandising & Display Facts Offtake of consumers products react dramatically to changes in shelf facings, locations & the use of shelf signs / talkers.

+ 40%+ 40%

-48%-48%

-58%-58%

What is DISPLAYING? Displaying refers to how products are presented at points of sale.

The quality of display is a direct result of the merchandising work and is judged according to location, type, product availability, accessibility, visibility, and the use of supporting promotional materials.

More displays improve product offtake.

What is a GOOD DISPLAY? Eye Catcher Make product appear as market leader. Increases brand awareness / image create impact. Maximizes Product Impact. Merchandisers products at eye level. Contains only clean products and properly priced. Merchandise products in “BLOCK” position.

Communications in Selling

Sight - 85%

Taste, Touch, Smell - 10%

Hearing - 5%

MERCHANDISING CALL PROCEDUREWhy do we Merchandise?

To build brand awareness / loyalty. To encourage trial consumption. To encourage repeat purchase

To increase sales / profit of company & trade

To give consumers value for money

To make outlets accept new products.

To ensure product, company and trade success.

1. PRE-CALL / POST CALL ANALSIS 2. GREET

CUSTOMER

3. CHECK INVENTORY & MERCHANDISE

5. PLAN ACTIVITIES


MERCHANDISING CALL PROCEDURE

7. TRADE RELATIONS

6. EXECUTE ACTIVITIES /OBJECTIVES

MERCHANDISING CALL PROCEDURE1. PRE-CALL ANALYSIS Review Master Call Plan / Call Card

No. of outlets to be visited for the day. Route Plan / schedule

Call Card (distribution; OOS, facings, promotions, competitive activities, others)

Price labelers; label tapes Cutter / cutter blades Marking Pens; POSMs; POPs; scotch tapes, rugs

Check the Merchandiser Kit

MERCHANDISING CALL PROCEDURE1. PRE-CALL ANALYSIS

G - Greet warmly with a smile.

U - Ultimate motive is to get his/her attention.

E - Eliminate negative comments like “How’s business?”

T- Tell customer that you ready to render your services

S - State your name and the company you are representing

2. GREET CUSTOMER


3. CHECK INVENTORY & MERCHANDISE Product availability - determine what products available. Is it properly displayed?Stocks Inventory - does the outlet have sufficient stocks? What variants do I have to replenish?

2. GREET CUSTOMER

Pricing- is the price correct? Is it clear?

Distribution Points - replenish all shelves and off-shelves displays.

Merchandising Materials - Do I need to replace old POSMs? What improvement to do.



Update inventory folders & inventory forms

2. GREET CUSTOMER

Record out of stocks & notify salesman afterwards.

Check competitive activities

List down current facings.


List down additional product distribution points.



Time management is the most important tool in this step. Make sure that you only plan what you can finish within a call.

2. GREET CUSTOMER

Facing Objectives POSMs installation / replacementOffshelf display

4. RECORDS & REPORTS5. PLAN ACTIVITIES

BO accomplishmentPlanogram

Clean display



6. EXECUTE ACTIVITIES / OBJECTIVES

2. GREET CUSTOMER

Once you have listed your activities for a particular call, execute them one by one with tact, care & presence of mind. You should not sacrifice quality when executing an activity or an objective.





2. GREET CUSTOMER

Be honest when dealing with store personnel.

Show genuine concern for the outlet’s business by working productively and providing important feedback in operational issues / problems.


7. TRADE RELATION & LEAVE CALL

Be courteous. Avoid unsolicited remarks about other products and other people.




2. GREET CUSTOMER


As you go to your next call, analyze outcome of your previous call and ask yourself… How am I doing? Why? What am I going to do about it? How can I improve my activities?


7. TRADE RELATION & LEAVE CALL

Merchandising Key Result Areas (KRAs)KRAs PERFORMANCE

OBJECTIVES PERFORMANCE

STANDARDS 1. Stock Availability To ensure 100%

replenishment of all SKUs at all times.

0 Stock out

2. Share of Space To maximize & expand product facings against competition

Depends on product standards (50:50 ratio is ideal) > % MS.

3. Product Visibility To install point of sale materials according to plan.

To implement set planogram.

To attain display dominance.

100% implementation

100%

implementation 100%

implementation

Merchandising Key Result Areas (KRAs)

KRAs PERFORMANCE OBJECTIVES

PERFORMANCE STANDARDS

4. Freshness No expired products are on the shelves.

Maintain new and clean POSMs & POPs all the time.

Minimize bad order “BO”

Shelves and product

cleanliness.

0 incidence of expiry products on display.

Timeliness of POSMs & POPs installation.

Must be maintained at <1.0% of sales per outlet.

100% of the time clean product & display.

5. Pricing To ensure correct and legible pricing

100% of the time product pricing is correct.

Merchandising Key Result Areas (KRAs)

KRAs PERFORMANCEOBJECTIVES

PERFORMANCESTANDARDS

6. TradeRelations

Establish goodrelationship withtrade personnel

0% complaints fromoutlets.

7. ManagementReports

Prepare & submitreports as may berequired bymanagement.

100% accurate,complete & up-to-date submission ofreports.

MERCHANDISERS Major Responsibility

The merchandiser is responsible for the activities performed at the point of sale which ensure the display of our products according to the company’s rules which stimulate the placement of orders.

The purposes are to: optimize product freshness and to support sales through increasing consumer awareness.

MERCHANDISERS Attitude Always keep a positive attitude. Be aggressive without being impolite.

Be loyal and honest to your company and to the product you represents.

Be responsible and accountable in all the things you do.

Always strive to SUCCEED and NEVER GIVE UP!

“The THINGTHING that COUNTSCOUNTS is not what we KNOWKNOW but the ABILITYABILITY to use what we KNOWKNOW”


THE ENDTHE END

VIC RAMIL H. RAMIL

SALES DRIVERS

“ MIX AND MATCH “AGGRESSIVE

DISTRIBUTIONMODE

FILIPINAS WATER BOTTLING CO.,INC.

CHANNEL DRIVEN – TACTICAL MIX & MATCH

SUPERMARKETS R-S-V-P + P ( HORIZONTAL – VERTICAL )

GROCERY TYPE R-S-V + P ( HORIZONTAL – VERTICAL )

HORECA TACTICAL SATURATION DRIVE TRADE MARGIN/REVENUE AS SELLING POINT

HIGH TRAFFIC AREAS COMMANDO-TACTICAL : VISIBILITY & PRICING

DOWNLINE CHANNELS: PENETRATION DRIVE : BREAK CASE SELLING ALTERNATIVE DIST’N MODE : SUB-D, JOBBING….

PROFITABILITY APPROACH : APPLY “ LITER SELLING “ OPPORTUNITY SELLING – K-I-L-L

Key Strategies• Aggressive pipelining

• Competitive Trade deals : 5 + 1 DEAL• LISTING FEE / or INTRO DISCOUNT Supermarkets / Big Grocery/ Drug Store Chain

Objectives

* PLACEMENT * AVAILABILITY* VISIBILITY



Key Strategies• Aggressive pipelining - Channel Focus :

• Supermarkets• Grocery Types / Wholesalers• Convenience Stores• Drug Stores • Other Downline Channels- Bakery, SSS,PMS,Canteen

Objectives* PLACEMENT * AVAILABILITY* VISIBILITY

Key Strategies• Full RANGE Placement: ( Vertical Distribution )

• Right SKU to the Right Outlet ( Product Fit Approach)

• DEPTH Driven Sell In :• Stock Weight & Cover – ( Stock Pressuring )

• SPACE for Impulsive Display:• In-Store Presence, Merchandising & POPs/POSM’s.

Objectives


330 ml

600 ml

1.5 Lit1.0 Gal

1.5 Gal

FULL RANGE & SKU’S :

1 Gallon

1.5 Gallons1.0 Liter

600 ml

330 ml

OUR FULL PRODUCT RANGE :

5 GALLONS

Key Strategies• VISIBILITY(AGGRESSIVE BTL ACTIVITIES)

• STREET SELLING – High Traffic• POP’S & POSM’S – Call To Action• SPECIAL EVENT PARTICIPATION – Interfacing w/ BFG• RESORT PROGRAM – Key Areas

Objectives


PRICE POSITIONING – 330 ML

116110

8494

105 103 109100

0

20

40

60

80

100

120

Wilkins Absolute Nature Spring SummitHidden Spring Viva NPL AQUA BLUE

9.008.50

6.50 7.25 8.15 8.008.45

7.75

PRICE POSITIONING ( 600 ML)

154

12197 102

116 113 119100

020406080

100120140160


500 ML

500 ML

PRICE POSITIONING ( 1.5 lit )

136

11697 103

113

74

116100

020406080

100120140


1.0 LIT

RETAIL PERFORMANCE STANDARD :

Channel Type 330 ml 600 ml 1.5 lit 1.0 gal 1.5 gal 5 gal TCA QLP IDM Moo

Supermarkets X X X X X X X X X X

Grocery X X X X X X X X X X

CVS X X X X X X X X

SSS X X X X X

PMS X X X X X

Drug Stores X X X X X X X

Gas Station X X X X X X X

Canteen X X X X X

Sports Club X X

Bakery X X X optional X X X X

Wholesalers X X X X X X X

Bus Terminals X X X X X X

Street Vendors X X X

Institutional X X X X X

PRODUCT FIT APPROACH –”Right SKU to the Right Outlet”

Negosyo Mula Sa Aqua Blue……

330 ml

600 ml

ADDITIONAL INCOME : Aqua Blue……

330 ml

600 ml

SATURATION – VISIBILITY DRIVEBORACAY ISLAND

DECEMBER 2004- APRIL 2005

FILIPINAS WATER BOTTLING CO.,INC..

Key Strategies• On Site Distribution Operation ( OSDO ).

• Saturation Drive• Merchandising Blitz

Objectives• Availability – Visibility Drive

– High Traffic Areas:• Boracay Island

FILIPINAS WATER BOTTLING CO,INC..


• SATURATION DRIVE :– Outlet Penetration/Placement

» 2 Contractual Salesmen– Delivery & Account Servicing

» Distributor’s Depot in Boracay



FILIPINAS WATER BOTTLING CO,INC.


• MERCHANDISING BLITZ :– POP’S & POSM’S Installation

» 2 Contractual Salesmen cum Merchandisers– Dealer Aid Support

» On-Premise & Volume Accounts




CDAVS SUB-D’S/JOBBERS OUTLETS BIG - C

5 + 1 deals P 157.50 ( 10% ) SRP P 10.00 P 6.08/bot 6.56/bot

INCOME/REVENUE: 7% - 10% 52 % ( 330 ml )

80% ( 600 ml)

5 + 1 deals P 157.50 ( 10% ) SRP P 15.00 P 7.57/bot 8.33/bot

330 ml

600 ml


Trade / Outlet Support :• 5+1 Deals ( Pass On )• Merchandising :

• POPM’s : Streamers, Posters, Bannerettes• POSM’s :

On – Premise : Chillers ( 5)/ Ice Coolers, Coaster Pads, Napkin Holder.Off – Premise : POPM’s

Distributors/Dealers Support:• Trading Term :

– 5 + 2 Deals ( 301 cs +++)– 2% on COD or 30 days Term

• Two ( 2 ) Salesmen cum Disers• S/Men Incentive Scheme• One unit Pedicab


Distributors/Dealers Support:• Trading Term :

– 5 + 2 Deals ( 301 cs +++)– 2% on COD or 30 days Term

• 5+1 Pass – On Support• Merchandising Representative• Chillers – 50 cases +++/month• Electrical Assistance : P 200.00/mo

– 20 cs +++/ month• Pedi-cab ( when needed)• Ice Coolers & Vending Bags

FILIPINAS WATER BOTTLING CO.,INC

Projected Manpower Costs : Basic Pay :Salesman 1 : Php 250 X 26 days = PHP 6,500.00Salesman 2 : Php 250 X 26 days = 6,500.00 Transportation/Meals:Salesman 1 : PHP 35 X 26 days = 910.00Salesman 2 : PHP 35 X 26 days = 910.00 Total ( fixed ) = PHP 14,820.00 Commission / Incentive :Basis : Sales Volume : 2,000 cs Outlets Opened/Retained : 400Rate/Cs Comm: Php 1.00, = Php 2,000.00 Outlet Opened/retained : Php 3.00 = Php 1,200.00Grand Total / Mo. = PHP 18,020.00Grand Total ( 5 mos): = PHP 90,100.00 % Cost To Sales : 5%

FILIPINAS WATER BOTTLING CO.,INC

REGALO KO PARA NIMO :

P 2.00 / KADA KAHON

INCENTIVEMAY – JUNE : SALE TO TRADE

JULY & ONWARDS MORE SUPRISES

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