Lipic's met with Emerson White-Rodgers management to discuss wholesaler merchandising events, channel incentives, and social media marketing, and developed a proposal with recommendations for modular yet integrated programs focused on ensuring product visibility at key wholesaler accounts, developing performance metrics, and social media strategies. The proposal included budgets and plans for wholesaler merchandising events, a channel incentives program called "Changing the Channel", and recommendations for social media best practices.

1. Channel Marketing Planning

2. On July 1 Lipic’s met with Emerson White-Rodgers management and
the following topics were discussed:
1. Wholesaler Merchandising Events
2. Channel Incentives
3. Social Media/Social Influence Marketing
Based on this discussion, Lipic’s has developed the following proposal
to address these three key opportunities. Our recommendations are
designed as modular, yet fully-integrated programs.

4. As we understand, the following are critical success factors in
support of EWRs FY ’11 sales and marketing goals:
• Ensure product availability/visibility at 1,000 key
accounts in the wholesale channel in FY ’11.
• Development/implementation of a turnkey performance
metrics/reporting system to monitor results and to make
adjustments on an ongoing basis.
Lipic’s has identified appropriate resources to merchandise
these key accounts based on the following assumptions...

5. Timing: Client’s Fiscal Year 2011 (September – August)
Locations: 1,000 Wholesale Outlets
Product/
Merchandising
Materials: For planning purposes, we have assumed that all required materials would be
drop-shipped from Lipic’s Saint Louis headquarters to wholesaler locations in
advance of in-store merchandising events.
Event
Production
Schedule: As part of our merchandising effort, an Event Production Schedule will be created to
keep wholesaler principals/staff and EWR management/sales force apprised of progress/logistics/special
requirements/arrangements/etc.
Reporting/
Proof-of-
Performance: Lipic’s will develop/implement/maintain an Online Reporting Microsite to capture all
relevant Wholesaler data/information from Merchandising Event Field Reps.
The system will facilitate timely reports (i.e., wholesaler contact verification, time of
visit, duration of visit, verbatim wholesaler comments/questions, digital photographic
proof-of-performance, etc.) documenting the event.

6. Successful Wholesaler Merchandising Events are a critical
success factor in the achievement of EWRs important business
goals.
Your Lipic’s team has a proven track record in executing events
of this magnitude for many of America’s largest corporations.
We are excited to begin work on this important project.

8. In our initial discussion, EWR requested recommendations on an
incentive strategy to target each link in the sales channel:
• EWR Account/Sales Management
• Wholesaler Principal/Owner
• Branch Manager
• Counter/Sales Staff
In addition, EWR voiced concern over ROI metrics and reporting
procedures for current initiatives.
Following are Lipic’s recommendations to address these
challenges…

9. Building on the Wholesaler Merchandising Events outlined in
Opportunity One, we will introduce an incentive initiative
entitled…
“Changing the Channel”
This incentive will address EWRs important business objectives
using fresh, relevant marketing tools in a manner that is
consistent with EWRs corporate guidelines.

10. Overview
Theme: Changing the Channel
Objectives: Merchandising
Establish/maintain a permanent presence of EWR product/marketing materials in
1,000 key Wholesaler locations, nationwide.
Wiki Wisdom
Develop an educated/engaged wholesale channel at all levels.
Orders/Sales
Increase EWR orders/sales in FY ’11 by 20%+ over Y/A.
Participants: Registered EWR Account/Sales Managers (10)
Registered Wholesaler Principals (1000)
Registered Wholesaler Branch Managers (1000)
Registered Wholesaler Counter/Sales Staff (3000)
Timing: FY 2011 (Sept/Aug)
Products: Selected EWR Blue Touchscreen Thermostats

11. Establishing A Baseline/Source of Funding
• A national Wholesaler order/sales objective will be established for the Blue Touchscreen
Thermostat line based on Y/A historical performance.
• Assumptions for discussion purposes:
– FY2010 national product orders/sales of $10MM.
– FY2011 Changing the Channel sales/marketing efforts will generate $12MM+ in
orders/sales or a 20% sales lift ($2MM in incremental revenue).
– Incentive funding of 15% of incremental sales or $300K based on standard industry practices.
– 1,000 eligible Wholesalers = an average $12K order/sales commitment per Wholesaler.
– Apply the 80/20 rule = 20% (200) participating Wholesalers = 80% of performance.

12. Defining Measurement Criteria
Measurable performance criteria will be established to address each of the following objectives, as follows:
OBJECTIVE ONE: MERCHANDISING (Wholesaler Team Score)
The entire Changing the Channel Incentive is built on the successful Wholesaler merchandising effort outlined in
the previous section.
MEASUREMENT CRITERIA:
Following the initial merchandising event, beginning in Q2 each Wholesaler location will be Mystery Shopped
a total of three (3) times throughout the remainder of FY ’11 to ensure proper merchandising procedures are
being followed and that Wholesaler staff is well-versed on EWR product attributes.
Mystery Shoppers will include:
• Third-party Event Merchandising Field Reps (as required)
• EWR Field Sales Management (as available)
All Mystery Shoppers will input their findings via the Online Reporting Microsite established for the Wholesaler
Merchandising Events.

13. Defining Measurement Criteria
OBJECTIVE TWO: WIKI WISDOM (Wholesaler Team Score)
To address this important objective, we will develop an educated/engaged wholesale channel at all levels
through ongoing dialog/interaction among:
• Emerson White-Rodgers management
• Wholesaler Principals
• Wholesaler Branch Managers
• Wholesaler Counter/Sales Staff
By providing an open forum for idea-sharing and discussion regarding best practices, product attributes, ad
hoc solutions, and customer feedback, the EWR Brand will be defined by the collective impressions of
everyone involved in these discussions. In our new social world, the Brand truly is what our customer says it
is.
MEASUREMENT CRITERIA:
As part of the Online Reporting Microsite, we will build-in a Wiki Wisdom social feature. Registered
participants will earn points based on log-in frequency, length of visit, and for interaction with the Wiki (e.g.,
adding content, liking/sharing content, comments, etc.).

14. Defining Measurement Criteria
OBJECTIVE THREE: ORDERS/SALES (Wholesaler Team Score)
Increase Emerson White-Rodgers orders/sales in FY ’11 by 20%+ over Y/A.
Based on input from EWR management, when wholesale locations are merchandised properly, the product
WILL sell. In fact, our understanding is that, at the Wholesaler level, the sale of three thermostat units funds
the entire display effort!
MEASUREMENT CRITERIA:
• For this measurement, each EWR Wholesaler will be assigned an order/sales objective of Y/A
actual orders/sales plus 20%.
• Objective attainment (order/sales) will be appended to the wholesaler record by EWR via the
Online Reporting Microsite based on product shipped/orders processed.

15. Program Mechanics
ANNOUNCEMENT/REGISTRATION/PROGRAM RULES:
• Changing the Channel will be announced to the wholesale channel via:
– Scheduled EWR channel communications (Newsletters, eWires, trade publications, etc.)
– Social Network sites (LinkedIn, Twitter, Facebook)
– EWR Changing the Channel microsite
• To facilitate timely dialog (communications, performance tracking/reporting/award issuance,
etc.) eligible participants must register at the Changing the Channel microsite (which will be
developed as an extension to the Online Reporting microsite).
• The registration process will capture all appropriate participant information (e.g., name, address,
etc.) to facilitate accurate program communications.
• Upon receipt of registration information, participants can access all relevant program
information.
Complete Rules to be developed based on approval to proceed.

16. EXAMPLE

17. According to the 2010 Social Media Marketing Report , 67% of marketers plan to increase their use of
social media channels including blogs, Twitter, and Facebook.

18. Social Media is a complex, organic Online Conversation… an open-
communication network powered by:
• Social Networks
• Newsfeeds
• Microblogs
• Content Sharing
• Message boards
• Wikis
• Podcasts
• RSS Feeds
• And more

19. Look who’s talking…
Customers…………..Stockholders ………….. Employees
Advocates …………………Competitors
Social Media sites are the fastest-growing
category, doubling in usage over the past year:
• 73% of online users have read a blog
• 45% have started their own blog
• 39% subscribe to an RSS feed
• 57% have joined a social network
• 55% have uploaded photos
• 83% have watched video clips
From: Social Media Magic

20. Best Practices: 5-Steps to Success
Regardless of industry, all successful entrepreneurs, executives and career
professionals follow a repeating 5-step process to generate increased ROI.
1. Develop a Social Media strategy that
addresses your business goals
2. Establish a presence in the various
Social Media channels
3. Expand Reach
4. Nurture Relationships by engaging with
your network
5. Maintain Presence and manage expectations
From: Social Media Magic

21. Wholesaler Merchandising Events: $XXXX
Channel Incentives: $XXXX
Social Media/Social Influence Marketing: $XXXX