distributor management

Sales And Trade Marketing Specialist

Moderator Handbook

Distributor Management

3 – Days

18 – 20 May 2010

2

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Learning Objectives

Provide delegates with the knowledge, skills and processes to effectively manage Distributors with the ultimate aim to develop FrieslandCampina market position to its potential

Delegates will understand:– How to use the tools and processes needed to identify

what FrieslandCampina & Distributor should engage in– Specifically understand the roles and responsibilities of

the Distributor and Distributor Manager based upon the Maturity Matrix model

– How Distributors manage their business from a financial point of view and how FrieslandCampina propositions impact their financial position

– How to develop/ maintain motivated Distributors by assisting the Distributor maintaining/ enhancing the financial position through increased effectiveness and efficiencies

– How to develop an opportunity based Distributor business plan by understanding the importance of gathering and keeping information on key data sources

– How to develop KPIs to track the results – The various techniques and tools to motivate Distributor

Sales Teams to ensure the right “share of voice” during their Customer visits

– How to recognize “early warning signs” enabling the Distributor Manager to react in a pro-active manner

– How to prepare for and how to conduct the various types of Distributor meetings

– How to maintain and develop the relationship with Distributors

– How to conduct a Distributor “Health Check” to prioritize and deal with critical issues effectively and timely

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Pre-work

Delegates will be sent an invitation providing them with:

The logistical information – date time and venue Brief for the pre work for the course as follows:

– Meeting with direct manager to discuss personal learning objectives

– Don’t forget to bring your lap top, calculator and Distributor files / plans

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Moderator Toolkit

Section Item Quantity

Computer, and power cable (and adaptor if overseas)

1

LCD projector 1

Flipcharts, 2 for the facilitator, 1 for each delegate table

Blue-TakMarker PensPost-its

Name badges1 per person

Delegate hand book1 per person

CD rom with CBP Tool and Distributor Evaluation Tool

1 per person

Print out of the latest FF P&L (global website )

1 per person

Thomas Killmann documents2 sets per participant

General

Room Dressing

Pictorial Agenda Poster 2

Adding Value Poster 1

Driving Top Performance Poster 1

Partnership Poster 1

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Room Set Up

Wall posters Natural light Plenty of water Ensure there is plenty of empty floor space for

exercises Computer / power cable (and adaptor if overseas) Light projector if not available in room Energizer file Whistle, horn or bell for time keeper Talking ball to throw to delegates to invite comment

Screen

Observers

Flipchart

Flipchart

Flipchart Tra

ine

r Ta

ble

Overall venue set up One main room set

up as per example Four small break out rooms/ areas adjacent to the main room or as part of main room

LCD

Flipchart Flipchart

Flipchart

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Agenda(For Moderator Eyes Only – Use Pictorial Agenda on a Poster Throughout)

Day 1: Setting The Scene

Day 2 Setting The Direction

Section Duration Start Time

Setup, Introductions And Icebreaker 60 08.30

Distributor Roles And Responsibilities 60 09.30

Morning Break 15 10.30

The Role, Responsibilities And Competencies Of A Distributor Manager

75 10.45

Lunch 60 12.00

Distributor Financials 150 13.00

Distributor Business Model

Key Financial Reports

Distributor Expenses

Afternoon Break 15 15.30

Distributor Financials ctd. 45 15.45

Inventory Management

Distributor Sales Team Fundamentals 60 16.30

Close 17.30

Section Duration Start Time

Review Day 1 30 08.30

The Distributor Plan 90 09.00

Gathering Insights

Needs Hierarchy


The Distributor Plan ctd. 105 10.45

Developing SMART Objectives And Strategic Options

Lunch 45 12.30

The Distributor Plan ctd. 60 13.15

Developing A Financial Plan And Annual Activity Plan

Distributor Performance Management , 60 14.15

Developing KPI’s And Tracking Systems


Motivating Distributors 60 15.30

Evening Work Briefing 15 16.30

Close 16.45

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Agenda(For Moderator Eyes Only – Use Pictorial Agenda on a Poster Throughout)

Day 3 Developing The Relationship

Section DurationStart Time

“Top Line” Distributor Plans Review 60 08.30

Early Warning Signs 45 09.30


Managing Distributor Meetings 105

The Sales Team Meeting

The Distributor Review Meeting

The Business Development Meeting

The Annual Business Planning Meeting

Lunch 45 12.00

Managing Distributor Relationships 90 12.45

Distributor Health Check 45 14.15


Distributor Health Check ctd. 60 15.15

Action Planning 45 16.15

Close 17.00

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Pictorial Agenda


Setting The Direction

DistributorBusiness Planning

ManagingDistributor

Performance

Developing TheRelationship

DistributorHealth Check

Introductions

FF & Distributor

Expectations

Roles & Responsibilities DistributorFinancials

Inventory Management

ManagingDistributorPersonnel

Early Warning Signs

ManagingDistributorMeetings

DistributorRelationshipBehaviours

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INTRODUCTION Key outputs you should look for:

– All delegates are motivated and energised to participate– All delegates have had an opportunity to speak and understand what they will learn during this

workshop Slide 5: List the expectations on a poster and let participants know what is in scope and what is not in scope

and that we will revisit this poster at the end of day 3 to check if we all of the “in scope” objectives Slide 8: “ There are three types of people that attend a workshop; The Prisoner, The Passenger and The

Participant! Do we have any Prisoners or Passengers in the room?” Slide 9: “What would be a good penalty if somebody brakes one of the rules?”

DISTRIBUTOR ROLES AND RESPONSIBILITIES The objective of this module is to discuss the added value of distributors and how to assess what a

distributors’ role is given the specific market circumstances as specified in the “Maturity Matrix”

ROLE OF THE DISTRIBUTOR MANAGER To discuss the role of the DM from different angles; what does FF expect from a DM what can and should a

Distributor may expect from the DM Next is to explore the difficulties a DM currently faces when trying to achieve all the expectations Finally we explore the capabilities needed by a DM to be able to do a good job Main conclusion: IT IS A BIG JOB!

UNDERSTANDING DISTRIBUTOR FINANCIALS Introduce this module by setting the scene through discussing the following:

– Since a Distributor is a partner and not a Customer, it is vital that we are doing everything we can to ensure the Distributor has a sustainable business model

– A Distributor Manager should understand the impact of his proposals on the Distributors’ financial position

– A DM should be able to evaluate the various financial reports to gauge the Distributors’ financial health and to decide the best corrective action if the sustainability level too low

Explain to the delegates that we will explore the three core key financial reports including some key financial ratios that can be calculated from these reports we then move on and explore how Distributors try to improve their financial position and what measures they use.

For the activity on slide 39 & 40 please use the cash/credit spreadsheet to review their answers as well as working different scenarios given to you by the delegates

DISTRIBUTOR PLANNING This module will last more than a half day illustrating the importance of developing annual plans for our

Distributors, at least for the key Distributors The process is the same as Friesland Campina is using for Key Customers. We will review all the steps in the

business planning process and introduce the planning toolkit NOTE this is an introduction to DBP we will not have a finished business plan for each Distributor at the end

of the session Invest some time on Distributor knowledge, SWOT and SMART objective setting do the workshops

DISTRIBUTOR PERFORMANCE MANAGEMENT After having developed a business plan for the Distributor it is important to develop Key Performance

Indicators (KPI’s) to measure progress and compliance to the Distributor contract and Distributor plan It is imperative that all Distributor Manager are using the same calculation formula this aids the

consolidation of information and meaningful benchmarking Measuring alone doesn’t make it happen! Acting when of course and “prescribing the right medicine” is

important. The last section of this module examines possible causes for KPI being of track. THIS COULD BE DONE IN A BRAINSTORM SESSION OR BY GIVING EACH TEAM AN KPI TO BRAINSTORM

SEVERAL CAUSES

MOTIVATING DISTRIBUTORS Start this module by saying that motivation is the “Holy Grail” in business and that there is no perfect “One

Size Fits All” solution but a better understanding of motivators and hygiene factors can guide us to choose and apply the appropriate motivational techniques

FEATURES AND BENEFITS Key output a solid understanding of the difference between a Feature and a Benefit. And the awareness that

in the past we used too many features and left it to the Customer to figure out how it could help him. Linking Benefits with Needs dramatically increase the persuasiveness of a proposition.

Slide 2: Ask everybody to stand up and give you one benefit of their mobile phone, after they answered they may sit down. Don’t comment on their answer flip the page and start discussing what makes Volvo safe Slide 3

Slide 3 and 4 shows an interesting fact: sometimes one feature can have many benefits and sometimes many features cover only one benefit

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EARLY WARNING SIGNS

A nice start for this module is, if there is one, to refer to a real life situation in which a problem existed but at first it was too small and went by unnoticed only to be dealt with when it was a big problem. Which made solving it more difficult and most likely more expensive. If a real example is used ask participants what would be early warning signs that something is of course, which is sometimes in not on the KPI dashboard.

Key learning here is that a DM should always be alert and receptive for these signs in order to take corrective action when problems are still small and manageable.

DISTRIBUTOR MEETINGS Start this module by asking around how often they participate/organize a Distributor meeting.

What type of meeting is it? Activity on slide 4 should reveal gaps in preparation, no separation of meeting types, wrong

audiences etc. This activity will set the stage for the remainder of the module.

MANAGING DISTRIBUTOR RELATIONSHIP? Before presenting ask participants to describe what a good Distributor relationship looks like.

Often there is a great relationship on a personal level but not such a solid one on business level. Ask what they think is more important and why it is that that relationship is weak After the introduction slides flipchart the JOHARI window principle.

– The JOHARI window illustrates how well two people relate to each other

– Use the slide show to explain the four different boxes

– The size and the shape of the public arena depicts how well two people relate to each other; slide 4 shows two possible “Public Arena” shapes1: The presenter, will most likely not ask many questions and start selling after the “small talk” is done

2: The interrogator a person that will ask many questions, but fails to use that knew knowledge in changed behaviour or in presentations

– Slide 5 shows a balanced implementation in which new knowledge is used in presentations etc. When the public arena keeps on expanding it will cross over into the “unknown” box and this is what we call the 5th dimension a situation where opportunities develop which either side never would have thought of by themselves.

– Check if everybody understands this concept and do the activity on slide 6 and review in detail, listing possible solutions on the flipchart ( to refer back to when you discuss the various relationship building behaviours)

Slide 16: before commencing with the presentation ask participants to fill out the Thomas Killman questionnaire for themselves and one for their main Distributor (Hand out the 30 questions only!) After presenting slide 25 draw the conflict model on the flipchart and ask them to what they think there most dominant style is write their names in the appropriate box.Hand out the two scoring pages and ask the participants to score themselves first by following the instructions when finished go around to check if their earlier guess was correct or not. Now score your Distributor and discuss at your tables the implications when these two styles are in conflict.Who wins, who will start the conversation, etc. After 10 minutes review some of the responses.

Review some of the solutions of the workshop on slide 30 and finish the last two slides

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DISTRIBUTOR HEALTHCHECK This is a spreadsheet based toolkit to evaluate a

Distributor in key business areas we will use this analysis together with all our learnings from the last couple of days to develop a personal action plan for the next 100 days

– Open the spreadsheet on the main screen and click on the Distributor criteria set up tab.Ask each team to review the criteria per section and agree upon a weighted importance persub criteria for instance 5 sub criteria in Management and Leadership. The total for each section should be a 100% which is automatically calculated in cell B5, B50 etc. The team also need to weigh the importance of each section in relationship to each other to be recorded in C5, C50 etc.

– After the teams are done you need to facilitate to arrive at a set of numbers that everybody agrees upon and will use in their health check

– On your PC record the final outcomes of this discussion for reference.

– Now ask the team to evaluate their Distributors on the evaluation sheet by giving each sub criteria a value between 1 -10. (A filled out example is in the training material)

– When all numbers are entered an overall distributor score is calculated in cell E 5

– Compare the scores of the various participants– Mention that this toolkit can also be used to select

the best possible Distributor

ACTION PLANNING This is the final activity of the workshop, participants

have to develop a “next 100 days” action plan describing 4 -5 initiatives they would like to deploy with their respective Distributors.

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Trainer Notes

You have half a day paid time to prepare yourself for delivering this course

This half day should include a telephone conversation with the FrieslandCampina local relevant senior manager – probably Sales Director

If this is your first time delivering this module the suggested process is as follows

Familiarise yourself with the material & approach – Sue Scheide will have sent you the complete trainer pack

Following the conversation with the local senior manager, check whether you want to edit the material or approach to meet the particular local needs

Plan your delivery

If you see ways that the module and the trainer pack can be easily improved please feed it back via Sue Scheide

distributor management

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