On July 1 Lipic’s met with Emerson White-Rodgers management andthe following topics were discussed:1. Wholesaler Merchandising Events2. Channel Incentives3. Social Media/Social Influence MarketingBased on this discussion, Lipic’s has developed the following proposalto address these three key opportunities. Our recommendations aredesigned as modular, yet fully-integrated programs.
As we understand, the following are critical success factors insupport of EWRs FY ’11 sales and marketing goals:• Ensure product availability/visibility at 1,000 keyaccounts in the wholesale channel in FY ’11.• Development/implementation of a turnkey performance metrics/reporting system to monitor results and to makeadjustments on an ongoing basis.Lipic’s has identified appropriate resources to merchandisethese key accounts based on the following assumptions...
Timing: Client’s Fiscal Year 2011 (September – August)Locations: 1,000 Wholesale OutletsProduct/MerchandisingMaterials: 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.EventProductionSchedule: As part of our merchandising effort, an Event Production Schedule will be created tokeep wholesaler principals/staff and EWR management/sales force apprised of progress/logistics/specialrequirements/arrangements/etc.Reporting/Proof-of-Performance: Lipic’s will develop/implement/maintain an Online Reporting Microsite to capture allrelevant Wholesaler data/information from Merchandising Event Field Reps. The system will facilitate timely reports (i.e., wholesaler contact verification, time ofvisit, duration of visit, verbatim wholesaler comments/questions, digital photographicproof-of-performance, etc.) documenting the event.
Successful Wholesaler Merchandising Events are a criticalsuccess factor in the achievement of EWRs important businessgoals.Your Lipic’s team has a proven track record in executing eventsof this magnitude for many of America’s largest corporations.We are excited to begin work on this important project.
In our initial discussion, EWR requested recommendations on anincentive strategy to target each link in the sales channel:• EWR Account/Sales Management• Wholesaler Principal/Owner• Branch Manager• Counter/Sales StaffIn addition, EWR voiced concern over ROI metrics and reportingprocedures for current initiatives.Following are Lipic’s recommendations to address thesechallenges…
Building on the Wholesaler Merchandising Events outlined inOpportunity One, we will introduce an incentive initiativeentitled… “Changing the Channel”This incentive will address EWRs important business objectivesusing fresh, relevant marketing tools in a manner that isconsistent with EWRs corporate guidelines.
OverviewTheme: Changing the ChannelObjectives: Merchandising Establish/maintain a permanent presence of EWR product/marketing materials in1,000 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
Establishing A Baseline/Source of Funding• A national Wholesaler order/sales objective will be established for the Blue TouchscreenThermostat 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.
Defining Measurement CriteriaMeasurable 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 inthe previous section.MEASUREMENT CRITERIA:Following the initial merchandising event, beginning in Q2 each Wholesaler location will be Mystery Shoppeda total of three (3) times throughout the remainder of FY ’11 to ensure proper merchandising procedures arebeing 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 WholesalerMerchandising Events.
Defining Measurement CriteriaOBJECTIVE TWO: WIKI WISDOM (Wholesaler Team Score)To address this important objective, we will develop an educated/engaged wholesale channel at all levelsthrough ongoing dialog/interaction among:• Emerson White-Rodgers management• Wholesaler Principals• Wholesaler Branch Managers• Wholesaler Counter/Sales StaffBy providing an open forum for idea-sharing and discussion regarding best practices, product attributes, adhoc solutions, and customer feedback, the EWR Brand will be defined by the collective impressions ofeveryone involved in these discussions. In our new social world, the Brand truly is what our customer says itis.MEASUREMENT CRITERIA:As part of the Online Reporting Microsite, we will build-in a Wiki Wisdom social feature. Registeredparticipants 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.).
Defining Measurement CriteriaOBJECTIVE 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 productWILL sell. In fact, our understanding is that, at the Wholesaler level, the sale of three thermostat units fundsthe 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.
Program MechanicsANNOUNCEMENT/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 bedeveloped 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 programinformation.Complete Rules to be developed based on approval to proceed.
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