The document discusses findings from a survey of manufacturers and distributors about their joint business planning processes. It finds that most processes are ineffective due to a lack of proper preparation, goal setting, implementation, and measurement. It then provides recommendations to improve the process, including conducting more thorough market research, setting clear and measurable objectives, developing action plans with accountability, and regularly measuring and reviewing results. The overall aim is to make joint business planning more strategic, effective, and valuable for driving revenue growth.

1. Copyright Channel Marketing Group, 20169/8/2016, page 1
Industry Webinar

2. Copyright Channel Marketing Group, 20169/8/2016, page 2
David Gordon Victoria Gustafson
President, Channel
Marketing Group
Partner, Business Evolution
Verde Associates
Channel Marketing Strategist
Distributor Growth Initiator
Growth Expert | Data Strategist |
Thought Leader

3. Copyright Channel Marketing Group, 20169/8/2016, page 3
Executive Summary
Detailed Findings
Improvement Considerations
Parting Thoughts
1
2
3
4

4. Copyright Channel Marketing Group, 20169/8/2016, page 4
Executive Summary
Detailed Findings
Desired Process
Parting Thoughts
1
2
3
4

5. Copyright Channel Marketing Group, 20169/8/2016, page 5
Joint
Opportunities
Identification
Prioritization
Planning
Execution
Manufacturers
Internal goals
Business
Intelligence
Market
Region
Customer
Distributors
Internal goals
3 – 4% increase in
growth vs. non-
participants*
*Source: IRI research in Consumer Packaged Goods (CPG)
1

6. Copyright Channel Marketing Group, 20169/8/2016, page 6
36%
45%
50%
Manufacturers Distributors
Satisfaction
with Current
JBP Process
Dissatisfied Somewhat Dissatisfied
MANUFACTURERS DISTRIBUTORS
RATING DRIVERS RATING DRIVERS
• Acknowledged need
• Process does take place
• Little focus
• Spotty execution
• Inconsistent measurement
• No accountability for results
• Ignoring needs of end
customers
• No review/course correction
• Strong vendors demand
planning
• Pursue strategic and
tactical alignment
• Lack of tracking of results
• No periodical reviews to
identify course correction
opportunities
• Missing the big picture of
where the market is
moving
Q: How satisfied are you with your current Joint Business Planning process?
1

7. Copyright Channel Marketing Group, 20169/8/2016, page 7
Define time
horizon,
agenda and
participants
Research to
identify
mutual
opportunities
Establish
mutual
objectives
Develop
action plan
Implement
action plan
Measure and
review
results
1 2 3 4 5 6
1
ASSESSMENT RESULTS
CURRENT PROCESS
Process
adjustment
7

8. Copyright Channel Marketing Group, 20169/8/2016, page 8
1. Topics covered by JBP
◦ Focus on Value-Add Issues
◦ Broaden Customer needs discussions
◦ Extend Time Horizon
2. Quality and granularity of market research used to
generate insights
◦ Regional and trading area-level insights
◦ End-Customer Research
3. Value received from the process
◦ Meaningful and actionable outcomes
◦ Minimize efforts/maximize results
4. JPB effectiveness
◦ Implementation in the field
◦ Periodic measurement and accountability
1

9. Copyright Channel Marketing Group, 20169/8/2016, page 9
Executive Summary
Detailed Findings
Desired Process
Parting Thoughts
1
2
3
4

10. Copyright Channel Marketing Group, 20169/8/2016, page 10
Mfg
59%
Dist
18%
Mktg
Group Req
23%
Planning Process
Initiation
Q: Who usually initiates the Joint Business Planning process?
24%
53%
24%
0%
1-6 Months 6-12 Months 1-2 Years 2+ Years
Planning Time Horizon
Q: What time horizon do you usually discuss during a typical Joint
Business Planning session?
2

11. Copyright Channel Marketing Group, 20169/8/2016, page 11
DISTRIBUTORS
• Setting long-term joint
sales/revenue objectives
• Increasing operational process
efficiency
• Profit improvement
• Joint staffing/funding
• New service revenue initiatives
• Geographic expansion
• Line authorization for
additional/new branches
MANUFACTURERS
• New product offering/product
diversification
• Alignment with distributors
• Growth targets
• Setting long-term market
share goals
• Long-term product roadmaps
• Setting long-term market share
goals
2
SometimesOftenRarely
Q: Which of your company’s strategic objectives do you discuss
with your partners?

12. Copyright Channel Marketing Group, 20169/8/2016, page 12
• Sales/customer training
• Target customers
• Line conversions
• New product launches
• Promotions
2
SometimesOftenRarely
Q: What tactical objectives do you discuss with your manufacturing
partners during your Joint Business Planning Session(s)?
• Inventory levels
• Marketing funding support/co-op
usage
• Renewing Special Pricing
Allowances (SPAs)
• Inventory adjustments
• In-stock product price
negotiations
• Rebate opportunities
• Return policies
JOINT DISCUSSIONS
Customer Outreach
Profitability

13. Copyright Channel Marketing Group, 20169/8/2016, page 13
56%
18%
24%
2%
Should a plan be required to participate in a
rebate program?
Yes No Only set a purchase goal Not involved in this area
2

14. Copyright Channel Marketing Group, 20169/8/2016, page 14
MANUFACTURERS DISTRIBUTORS
NeverSometimesOften
• Regional/District Manager
• Rep Principal
• Rep Salesperson
• National Account Manager
• Sales Director/VP
• Marketing Director/VP
• Sales Management
• Distributor Owner
• Marketing
Management
• Purchasing
Management
• Operations/Supply
Chain
Q: Who typically participates in more than 50% of all JPB meetings
as a representative from your company?
2
Meeting Participants

15. Copyright Channel Marketing Group, 20169/8/2016, page 15
•Product trends
•Pricing trends
•Product sales
analysis
•Customer segment
dynamics
•Contractor
purchasing behavior
•Industrial trends
•Residential trends
•Institutional trends
•Competitive insights
•Macroeconomic
trends
TOTAL
MARKET
INDUSTRY
POINT OF
SALE
CUSTOMER
Q: Which of the following factors do you incorporate to build Joint
Business Plans with your partners?
Types of Research Incorporated
into Joint Business Planning
2

16. Copyright Channel Marketing Group, 20169/8/2016, page 16
MANUFACTURERS DISTRIBUTORS
0%
57%
29%
14%
20%
80%
0%
0%
Dissatisfied
Somewhat Satisfied
Satisfied
Very Satisfied
Q: How satisfied with the quality and granularity of research that
[Manufacturers] share and include into plans?
Satisfaction with
Research Used for
JBP meetings
2

17. Copyright Channel Marketing Group, 20169/8/2016, page 17
MANUFACTURERS DISTRIBUTORS
• DISC
• Dodge Report
• Aggregated Point of Sale
LEVERAGED
• Electrical Wholesaling
Market Planning Guide
• Internal Data
RARELY/NEVER LEVERAGED
• Customer Research
• Focus Groups
• Surveys
• Industrial Info Resources (IIR)
• Epicor Vista Information Services
• MDM Analytics
• Marketing Group Info (A-D, Imark, etc)
• NAED (Economic Newsletter, State of the
Industry Report)
• Collected Feedback from
Customer Service Calls
• Census Bureau Data
• Aggregated In-Field Intelligence
• Market-level Trends
• Electrical Trends Newsletter
• IBIS World
• tED Magazine
Q: What industry sources do you use to build Joint Business Plans
with your partners?
2

18. Copyright Channel Marketing Group, 20169/8/2016, page 18
MANUFACTURERS
• Sales and Share Goals
• Customer Strategies
• Strategic Objectives
Alignment
DISTRIBUTORS
• Sales and Share Goals
• Customer Training and
Events
• Strategic Objectives
Alignment
Q: Please choose top 3 areas that drive the most value for you in
the Joint planning process with your partners. Consider what are
the indicators that will drive your overall success
2
Current Focus Opportunity
• Short-term
• Tactical
• Long-term
• Strategic

19. Copyright Channel Marketing Group, 20169/8/2016, page 19
Return policies
Marketing funding support / co-op…
Inventory adjustments
Into-stock product price…
Rebate opportunities
Promotions
Inventory levels
Renewing Special Pricing…
New product launches
Target customers
Sales/Customer training
Line conversions
Distributor Manufacturer
More important
to
Manufacturers
More important
to Distributors
2

20. Copyright Channel Marketing Group, 20169/8/2016, page 20
2
• Joint staffing/role
funding
• New service revenue
initiatives
• Sales goals
• Setting long-term
market share goals
• Target customer
opportunities
SALES Only
• Product content for
website
• Product mix goals
MARKETING Only PRODUCT/PURCH Only
• Long-term product
roadmaps
• New product offerings/
product diversification
• Pricing levels

21. Copyright Channel Marketing Group, 20169/8/2016, page 21
ISSUE SALES MKTG
PRODUCT
/ PURCH
SERVICE OPS
Authorization to sell to additional/new
branches
x x
Customer segment focus x x
Customer training and events x x x
End-customer strategies x x
Geographic expansion x x
Line conversion opportunities x x
Market research – industry trends x x
Market research – local trends x x
Market research – macro trends x x
On-shelf assortment x x
Product training x x x
Promotions x x x
Renewing Special Pricing Allowances (SPA) x x
Strategic objectives alignment (12+ months) x x x x x
Unmet contractor needs x x x x
Increasing operational process efficiency x x
Inventory review / management x x
Management of returns x x
Quality and timeliness of shipping x x
Volume rebate program (if applicable) x x
2

22. Copyright Channel Marketing Group, 20169/8/2016, page 22
0%
64%
36%
0%
Ineffective
Somewhat
effective
Effective
Very effective
Perceived Effectiveness of
In-Field Implementation
Q: How effective, defined as ‘achieving goals set during Joint
Business Planning’, is the in-field implementation process?
RATING DRIVERS
• It works if it is done
correctly and measured
consistently
• Follow through and
periodic reviews make it
work
• Not effective in all markets
• Highly dependent on
distributor and
manufacturer engagement
• Needs follow-through and
accountability
• Negative experience with
results
• Lack of focus
2

23. Copyright Channel Marketing Group, 20169/8/2016, page 23
Monthly
82%
Quarterly
18%
Internal Results
Measurement and Review
Monthly
27%
Quarterly
55%
Semi-
Annually
18%
External Results
Measurement and Review
Q: How often do you measure and jointly
review results with your own sales force?
Q: How often do you measure and jointly
review results with your partners?
2

24. Copyright Channel Marketing Group, 20169/8/2016, page 24
2
71%
50%
Manufacturers
Distributors
% Companies That Would
Consider Process Change for
2017
DESIRED CHANGES
• More transparency about competition
and market dynamics
• More pro-active
• More granular information sharing
• Make the process valuable, or eliminate
it
• Implement periodic reviews
• Get more buy-in from parties
• More thorough preparation
• More efficient
• Better tools
• Meaningful metrics
• Build in tracking and accountability
• Focus on most valuable opportunities
Q: Would your organization consider
changing JBP for 2017 planning cycle?

25. Copyright Channel Marketing Group, 20169/8/2016, page 25
Executive Summary
Detailed Findings
Improvement Considerations
Parting Thoughts
1
2
3
4

26. Copyright Channel Marketing Group, 20169/8/2016, page 26
Define time
horizon,
agenda and
participants
Research to
identify
mutual
opportunities
Establish
mutual
objectives
Develop
action plan
Implement
action plan
Measure and
review
results
1 2 3 4 5 6
3
REVISED PROCESS
RECOMMENDATIONS
• Select partners to plan with
• Have a very well-defined set of
objectives, by distributor!
• Invite participants from both planning
and execution sides
• Discuss both strategic (1+ years) and
tactical (<1 year) goals
• Agenda could vary from partner to
partner, depending on current situation
and relationship objectives
• Consider tiered planning process

27. Copyright Channel Marketing Group, 20169/8/2016, page 27
Define time
horizon,
agenda and
participants
Research to
identify
mutual
opportunities
Establish
mutual
objectives
Develop
action plan
Implement
action plan
Measure and
review
results
1 2 3 4 5 6
3
REVISED PROCESS
RECOMMENDATIONS
• Pre-meeting preparation & sharing
• Understand market size & market share
• Distributor for territory
• Manufacturer for category, segments
• SKU Analysis (pricing, assortment)
• Distributors
• Research potential by customer, including
market share
• Sales by customer by product category
• Manufacturers
• Use research to create a purpose-driven
distribution strategy vs. availability
• Gain insights into end-Customer to
uncover growth opportunities
• Fully leverage industry sources to
create competitive offense / defense
strategy
• Customer/Sales Person/Product Mix

28. Copyright Channel Marketing Group, 20169/8/2016, page 28
Define time
horizon,
agenda and
participants
Research to
identify
mutual
opportunities
Establish
mutual
objectives
Develop
action plan
Implement
action plan
Measure and
review
results
1 2 3 4 5 6
3
REVISED PROCESS
RECOMMENDATIONS
• Use the meeting to:
• Get on the same page
• Discuss joint growth opportunities
• Gain agreement on the mutual
high level plan of action to capture
these opportunities
• Use the meeting to (cont’d):
• Get all tactical issues on the table
• Agree on approaches to address
them
• Agree on the criteria by which you
measure success for the coming
year (high level)
• Assign responsibilities

29. Copyright Channel Marketing Group, 20169/8/2016, page 29
Define time
horizon,
agenda and
participants
Research to
identify
mutual
opportunities
Establish
mutual
objectives
Develop
action plan
Implement
action plan
Measure and
review
results
1 2 3 4 5 6
3
REVISED PROCESS
RECOMMENDATIONS
• Once all mutual opportunities are
prioritized, build a plan that:
• Breaks down big objective into
relevant, achievable and
measurable chunks
• Set a metric for each important
milestone
• Assign accountability
• Communicate with your partners:
• Milestones and success factors for
each milestone
• Dependencies (internal and
external)
• Additional resources/time that
might be needed to achieve
objectives

30. Copyright Channel Marketing Group, 20169/8/2016, page 30
Define time
horizon,
agenda and
participants
Research to
identify
mutual
opportunities
Establish
mutual
objectives
Develop
action plan
Implement
action plan
Measure and
review
results
1 2 3 4 5 6
3
REVISED PROCESS
RECOMMENDATIONS
• Communicate objectives:
• Use the RACI (Responsible,
Accountable, Consulted and
Informed) tool for every important
milestone
• Ensure that everybody who has
accountability clearly understands
what to do
• Create a problem escalation process
(both internal and with your partners) in
case there are obstacles that could
prevent reaching milestone(s)
• Ensure that every person responsible for
execution of the plan is equipped to do
so (do they have the right tools and
resources? What support do they need?)
• Develop/utilize accountability tool

31. Copyright Channel Marketing Group, 20169/8/2016, page 31
Define time
horizon,
agenda and
participants
Research to
identify
mutual
opportunities
Establish
mutual
objectives
Develop
action plan
Implement
action plan
Measure and
review
results
1 2 3 4 5 6
3
REVISED PROCESS
• Measure and review results as dictated
by business need, not necessarily on a
rigid schedule (to prevent under- and
over- measurement)
• Create a process to effectively course-
correct if market conditions change
• Push performance benchmarks
• Get all relevant parties in the room to
review results (might be different from
the original group who put the plan
together)
• Celebrate successes and learn from
failures

32. Copyright Channel Marketing Group, 20169/8/2016, page 32
Executive Summary
Detailed Findings
Desired Process
Parting Thoughts
1
2
3
4

33. Copyright Channel Marketing Group, 20169/8/2016, page 33
 Commit to extract value from planning
 It’s a revenue driver, not an obligation
 No accountability = no value
 Hope is not a viable rebate achievement tactic
 Come prepared
 Determine if meeting objective is revenue generation or profit
improvement (or what % each)
 Differentiator and Reputation Builder
 Engage at appropriate levels & drive communications downstream
 Remember: data identifies, quantifies and prioritizes opportunities.
Discussion determines if there is a desire to pursue them
 If action plans don’t include accountability, it becomes “just another
meeting”
 Consider selective and customized planning approach
 Planning must be important to management and management
driven, otherwise poorly executed and a time waster

34. Copyright Channel Marketing Group, 20169/8/2016, page 34
Questions?

35. Copyright Channel Marketing Group, 20169/8/2016, page 35
Contact us at:
dgordon@channelmkt.com
or 919.488.8635