Mkt plan-Veterinary CA

Distributing Tomorrow’s
Needs Today!
DVM Resources

Objectives
• Increase overall margin .5%
• Increase Company Brand Awareness and
overall company brand CA sales by 10%
• Maximize Customer Retention with a result
of increased overall sales of 15%
• Build rapport amongst sales force resulting in
a reduction of the turnover rate by 25%

Vision & Mission
VISION: To become the leading
provider of products and
services to our customers in
the animal health markets,
worldwide.
MISSION: To develop a long term
successful, strategic
relationship with our
customers and our vendor
partners.

Market Trends
• Over the last several years, the pet craze in the US has
resulted in booming sales of health care products for
companion animals (i.e. cats, dogs).
• Companion animals are now driving industry sales, a
trend that will continue for the foreseeable future.
• US spending on pets is at an all-time high, a trend that
is expected to continue for many years.
• Attitudes towards pet foods are changing due to the
obesity rate in companion animals.
• Sales of pet oral care products in the US increased by
approximately 15% to about $490 million in 2005.

Market Trends
• Companion animals are fueling industry growth. In
2005, companion animals surpassed farm animals for
the largest share of sales. 55% vs 45%
• This trend is expected to continue through at least
2010, when companion animals account for 58% of
total sales of pet and animal health care products.
• In 2005, sales of pharmaceuticals for pets and animals
in the US increased by 5.7% to $3.88 billion. In 2010,
sales of pharmaceuticals for pets and animals are
expected to increase by an average of 5.3%
representing $5.03 billion.
Sundale Research, 2006

Market Overview
• Demand is driven primarily by the increase in the number
of cats and dogs that are thought of as members of the family,
which is affected by demographics.
• The profitability of an individual clinic depends on their marketing
skills, and the diverse range of services the practice offers.
• Of the 60,000 licensed veterinarians in the US, 75% work in
private practices.
• The Veterinary market is more competitive than ever before.
• There are three large competitors – Butler Animal Health, MWI
and Webster
• Shipping models of the competition are based on a model that
provides for next day as well as same day service in larger
markets.
• E-Commerce usage within clinics has risen due to the
influx of the new generation of graduates.

Market Overview
• Current customer base is now over 50% female and over 60%
female in CA.
• There will be a dramatic shift in the CA market in the next five
years- estimates of 35% of male practice owners will leave via
retirement in 5 years.

Customer Analysis
• The humanization of pets has turned pet owners into pet
parents.
• US spending on pets is at an all-time high, a trend that is
expected to continue for many years to come.
• Since their pets are like their children, consumers want
the best products for them, whether it is food,
supplies, or medicine.
• Customers are extra concerned these days with the
obesity rates in their animals.

Growing Pet Population
• The dog population increased by 1.6% to 63.0 million in
2005. During this time, 39.5 million households owned a
dog.
• From 2005 to 2010, the dog population should increase by
an average of 1.2% per year, reaching 67.0 million in 2010.
• Currently, the population of small dogs is growing the
fastest and this is expected to continue for at least
a few more years.
• The cat population increased by 1.3% to 81.0 million in
2005. During this time, 38.0 million households owned a
cat.
• In 2010, the cat population should reach 88.0 million, after
growing by an average of 1.7% per year from 2005 to
2010.

Key U.S. Competitors -
Butler Animal Health Webster
National full line distributor. Owned by Patterson Dental.
Inside and Outside Sales Force. Becoming a National Distributor.
Merged with Burns Veterinary Supply in 2005. No longer a Merial Distributor.
Multiple warehouse locations around the country. Multiple warehouse locations.
Provides next day shipping for most clients. Used acquisitions to expand.
Headquartered in Ohio. Primarily strong on East Coast.
Sells diets/Idexx distributor. Sells Diets/Idexx Distributor.

Key U.S. Competitors -
MWI Midwest
National full line distributor. Regional full line distributor.
Major player in the livestock industry. Services 20 states with 5 warehouses.
Supplies the Banfield corporate veterinary clinic group. Family and employee owned.
Multiple warehouse locations around the country. Inside and Outside sales force.
Provides next day shipping for most clients. Idexx Distributor.
Wal-Mart of the Veterinary Industry. Headquartered in MN.
Headquartered in Iowa. Schein
Considered very customer friendly. National full line distributor.
Very Tech friendly Company. Inside and outside sales reps.
One of the Best Web sites in the industry. Multiple warehouses.
Inside and Outside Sales Force. Strong in Dental and equipment.
Sells diets/Idexx distributor. Idexx Distributor.
Headquartered in NY.

U.S. Market
Total Market = $5.26 Billion
Source:
200m
3,875b
835m
 Pharmaceuticals
75%
 Biologicals
12.5%
 Vitamins & Minerals
4.5%
 Other
8.25% 350m

Companion
55%
Farm Animal
45%
Market Segmentation
Source: Sundale Research, 2006
Farm Animal
45%
$2,367 billion
Total Market (2005) $5.26 billion
Companion
55%
$2,893 billion

2007/2008 Strategic Objectives
Objective 1 Increase overall margin .5%
Objective 3
Objective 2
Objective 4
Increase Company Brand Awareness
Maximize Customer Retention
Build rapport amongst the sales force

Key Strategies and Actions
Objective 1 Increase overall margin .5%
– Secure new products that offer higher margins
(25%+)
– Evaluate pricing in system.
– Update current cost and sell pricing.
– Educate both inside and outside sales forces on
commission $$ they can earn by selling products at
a higher margin.
– Offer customer promotions and/or incentives that
incorporate a margin growth component.
– Do not pay out any incentives that we personally
fund unless we hit our goal as a company.
– Use stepped payouts to encourage both an
increase in sales as well as a increase in margin.

Strategies / Tactics
Objective: Increase overall margin .5%
–Secure new products that offer higher
margins (25%+)
•Work with Arnold Baker
•Survey existing customer base on what products they
want
•Promote sales force help by spiffing them on product
that they secure
•Consistently review Veterinary Industry publications
•Attend veterinary trade shows
•Research expiring patents and trademarks

–Evaluate pricing in system.
•Contact all vendor partners for updated pricing that we do
not currently have on hand
•Make sure that all pricing in the system matches up with
manufactured suggested pricing
•Work with management to try and eliminate some of the
pricing schedules that currently exist
•Develop tiered pricing where customer can receive
discounts based off of quantity purchases.

– Educate both inside and outside sales forces on
commission $$ they can earn by selling products at a
higher margin.
•Create sales tools showing commission $$ earned on all company
brand products
•Work with the Director of Inside Sales and the Area Managers to
develop rep incentives based off of margin growth
•Have random daily margin incentives to offer all reps
•Create a program where reps are given a yearly incentive for
overall territory margins of 18.5% or greater. Added bonus for
overall company brand margin of 22% or greater.
(This plan is in line with the new CA ISR commission plan)

–Offer customer promotions and/or incentives
that incorporate a margin growth component.
•Work with Regional Managers and Director of Inside Sales to
develop mutually beneficial customer promotions with built in
margin growth components
•Survey our customers through the relationships established by our
reps to see what it is they actually desire in regards to premiums,
trip packages, etc.
•Offer creative and unique promotions
•Redeem all customer promotions in a timely and
professional manner

–Do not pay out any incentives that we personally
fund unless we hit our goal as a company.
•Train sales reps to make our customer base understand that we have
to hit our goal before a payout can happen
•If we do not hit goal for whatever reason make the reps accountable
for contacting customers to explain why we fell short
•Work with Regional Managers to develop a plan on how reps should
execute all exclusive promotions given to them
•Make reps and managers accountable if we do not hit our company
goal
•Provide a method to communicate sales updates to the reps in a
timely fashion such that they can easily be held accountable.

Objective 2 Increase Company Brand Awareness
*Trademark
– Launch two new products that will generate $250k in sales
– Offer strategically planned training sessions to sales force
on all company brand skus.
– Offer lunch–n-learns to strategically picked customers to
educate them on our entire company brand line.
– Create sampling program for outside sales representatives.
– Re-launch specific existing skus that possess a lot of
market potential that just need a re-focused effort.

Objective: Increase Company Brand Awareness
–Launch two new products that will generate $250k
in sales.
•Find two key products that would create demand in the companion
animal business environment.
•Research the following key areas prior to launch:
» Sales
» Penetration
» Market Share
» Price
» Competitive Positioning
» Distribution
» Sales Direction
•Create packaging and POS that draws attention.

–Offer strategically planned training sessions to
sales force on all company brand skus.
•Create sales training model via the intranet for DVMR’s current sales reps.
•Create a separate sales training model via the intranet for new reps of
DVMR. This model would include product detail, sales training, and
testing.
•Create cross selling comparison charts vs. branded items.
•Create a DVM University that incorporates company branded training.
•Randomly offer quizzes and reward reps for exceptional performance.
•Work with the Director of Inside Sales and the Regional Managers to
create scripts when referring to company branded products.

–Offer lunch–n-learns to strategically picked
customers to educate them on our entire company
brand line.
•Work with Regional Sales Managers and Director of Inside Sales to
create a program where customers can earn Free “RXV Lunch-n-
Learns”.
•Promote the new “RXV Lunch-n-Learn in our Industry Update
•Create incentive package for reps based off of incremental business
gained after a “RXV Lunch-n-Learn” takes place.

–Create sampling program for outside sales
representatives.
•Work with Regional Sales Managers to create a sampling program
where reps can earn free samples.
•Budget multiple samples per rep for Company branded product
launches.
•Create open house RXV product packages.
•Create an ISR Sample day. ISR would educate then offer sample of
product to client to use and review.

–Re-launch specific existing skus that possess a lot
of market potential that just need a re-focused
effort.
•Review and evaluate past sales of entire company branded line (RXV)
•Determine which products have market potential and need a re-focus
•Work with Regional Managers to determine best way to re-launch
certain products
•Coordinate re-launch of product with it’s particular focus month

– Educate customer on a monthly basis based off of the
focus for the month.
– Give customers tips on how to increase certain
efficiencies within their vet practices.
– Create “Customer Appreciation Day” incentive and
“Customer of the Year” campaign for sales reps.
– Survey our customers.
– Create unique customer promotions that drive sales and
show the customer our appreciation.
Objective 3 Maximize Customer Retention

Objective: Maximize Customer Retention
– Educate customer on a monthly basis based off of the
focus for the month.
•Work with the Director of Inside Sales and the Regional Sales
Managers to determine which RXV product or group of products will be
focused on each month
•Communicate the focused company brand product or group of
products to our customers in the following ways:
– E-mail communication to all E-commerce or VIBE accounts with
existing email addresses
– Statement stuffers
– Customized POS
– Have a quarterly RXV focus page in our Industry Update
– “RXV Lunch-n-Learns”

– Give customers tips on how to increase certain
efficiencies within their vet practices.
•Work with Roger Cummings to develop a monthly schedule of key
topics that will educate our customer
•Create tools based off of the above chosen topics for sales reps to
leave behind in clinics
•Create an ad campaign utilizing our Industry Update, tradeshows and
statement stuffers centered around “Rogers Corner” showing the
customer that we care about their business.

– Create “Customer Appreciation Day” incentive and
“Customer of the Year” campaign for sales reps.
•Work with Regional Sales Managers and Director of Inside Sales to
develop a mutually beneficial “Customer Appreciation Day” incentive
where customers can be rewarded for meeting certain pre-determined
criteria.
•Create a “Customer of the Year” campaign where a top customer can
win a trip to our National Sales Meeting to be recognized publicly by
top executives.

– Survey our customers.
•Survey a random selection of our customer base on a quarterly basis
•Reward reps with positive feedback from customers in regards to their
performance
•Give customers a FREE RXV product by participating in a survey
•Ask for customer testimonials
•Notify customers when certain complaints have been resolved

– Create unique customer promotions that drive sales and
show the customer our appreciation.
•Work with Regional Managers and Director of Inside Sales to develop
mutually beneficial customer promotions.
•Survey our customers through the relationships established by our reps
to see what it is they actually desire in regards to premiums, trip
packages, etc.
•Offer creative and unique promotions that drive incremental business.
•Redeem all customer promotions in a timely and professional manner.

Objective 4
– Feature a rep of the month to all Walco employees.
– Survey reps.
– Provide sales reps with monthly tips on how to become a
more effective sales rep.
– Create a customer-rep testimonial program.
– Create incentives that highlight and reward sales reps for
exceptional performance.
*Trademark
Build rapport amongst sales force

Objective: Build rapport amongst sales force
– Feature a rep of the month to all Walco employees.
•Create a criteria of how to qualify as a rep of the month
•Both inside and outside sales representatives can qualify
•Create a nomination system in which customers or peers can nominate
a sales rep for going above and beyond their normal job duties
•Feature chosen rep of the month in our Industry Update, on our web
page, and special e-mail communication to all existing customers with
email addresses on file
•Create a wall at corporate honoring all of the chosen sales reps of the
month

– Survey reps
•Ask reps what additional training they feel they need to become a
more successful rep and then develop a sales training model based
off of the feedback.
•Ask reps if they are aware of the existing tools they currently have
access to
•Ask reps in their opinion what is working in their markets
•Ask reps to give advise or tips in their area of expertise and how they
utilize it to better their sales
•Ask reps if they need more product training for certain
vendors

– Provide sales reps with monthly tips on how to become a
more effective sales rep
•Have Roger Cummings send out monthly hot sheets giving sales reps
tips and techniques.
•Put together a binder of all monthly tips to distribute to all reps
especially new hires.
•Have reps send in suggestions on topics they would like covered.
•Incorporate monthly tips in addition to other topics into sales training
sessions in all Regional sales meetings.

– Create a customer-rep testimonial program
•Create customer-rep testimonial forms.
•Educate customers through email communication, statement stuffers
as well as the Industry Update on how they can give a testimonial on a
rep.
•Feature certain testimonials at the National Sales Meeting.
•Send out testimonials to all employees.
•Put all testimonials into a drawing for a certain prize to be awarded at
the National Sales Meeting.

– Create incentives that highlight and reward sales reps for
exceptional performance
•Work with Regional Managers and Director of Inside Sales to
develop highly motivating incentives that encourages all reps to
participate.
•Create a Companion Animal Ring of Honor with criteria to be agreed
upon by all management.
•Recognize top 10 Companion Animal Inside and Outside reps at the
National Sales Meeting and reward them accordingly.

R&D Development
•In 2005, research and development expenditures for pet and animal
health care products increased by 11.2% to $824 million.
•Investments for the search for the new products accounted for
approximately 86.5% of total research and development
expenditures in 2005, while the remaining 13.5% of spending went
toward ensuring the longevity of existing products.
•In 2010, expenditures should total $1.29 billion, with the search for
new products continuing to account for the majority of spending.

Mkt plan-Veterinary CA

Recommended

Recommended

More Related Content

What's hot

What's hot (17)

Viewers also liked

Viewers also liked (15)

Similar to Mkt plan-Veterinary CA

Similar to Mkt plan-Veterinary CA (20)

Mkt plan-Veterinary CA