Ewr preso

Channel Marketing Planning

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.

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 performancemetrics/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...

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 ProductionSchedule: 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.

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.

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…

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.

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 WisdomDevelop an educated/engaged wholesale channel at all levels.

Orders/SalesIncrease 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 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.

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.

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.).

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.

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.

EXAMPLE

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.

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

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

Look who’s talking…

Customers…………..Stockholders ………….. Employees

Advocates …………………Competitors

From: Social Media Magic

Best Practices: 5-Steps to SuccessRegardless 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

Wholesaler Merchandising Events: $XXXX

Channel Incentives: $XXXX

Social Media/Social Influence Marketing: $XXXX