sustaining customer excellence: reinforcement sessions (on-premise)

Sustaining Customer Excellence:Reinforcement Sessions(On-Premise)

Sustaining Customer Excellence:Reinforcement Sessions(On-Premise)

2

Brian RadleOP Sales Manager

Colleen HirnerDSM - STL

Ron HittDSM – JAC/DUQ

Erik DolieslagerDSM – SPR/QCY

Aaron WheelerDSM - STL

Michelle MonceyBDM - STL

Jill GuentherADM - STL

Larry JonesADM - STL

Nathan HonzalekADM - STL

Charron FowlerADM - STL

Sarah MitchellADM - STL

Rob WesolichADM - STL

Melissa MillerBDM - STL

Amy FordBDM - STL

Mary Patricia DorseyADM - STL

Darron NorradADM - STL

Juan BuitronADM - STL

James RobinsonADM - STL

Stephanie BrooksBDM – SPR/QCY

Susan MarcacciADM - SPR

Sarah HaganADM - SPR

Jasa TaylorADM - SPR

Karissa HamADM - QCY

Nick BrownBDM – JAC/DUQ

Mark MartinADM – JAC

Clent PullenADM - FRM

Chad CrossADM - DUQ

Kathleen TurnerADM - DUQ

Stephanie MangusADM - DUQ

-Open-ADM - STL

STLMU On Premise Agenda – April 23

9:00 Opening & Introductions

9:30 CE Reinforcement Module 1 – Overview of Selling Process

10:30 10 Minute Break

10:40 CE Reinforcement Module 2 – Brand & Package Mix

11:40 Lunch (30 min)

12:10 CE Reinforcement Module 3 – Cost to Serve

1:10 10 Minute Break

1:20 ADM BOSS Review / BDM Breakout

2:30 Questions / Comments

3:00 Adjourn

4Classified Confidential – Highly Restricted

OBJECTIVES FOR THE REINFORCEMENT TRAINING

Understand the selling process of “Prepare, Sell, Follow-up” and the activities performed in each step

Be comfortable using the tools to diagnose, identify, and track OI-improvement opportunities in each outlet

Have the ability to apply selling tips and tactics to “sell” the customer on OI-improvement actions

At the end of the 6 week curriculum, the entire sales team should


THIS IS THE BEGINNING OF A 6-WEEK PROGRAM TO ACCOMPLISH THESE OBJECTIVES

• Understanding the selling process: Prepare, Sell, Follow-up• Review of the tools introduced during Customer Excellence launch

– Reading the different sections of the OPR– 5 categories of selling opportunities– Using BOSS

Week 1• Overview

• Deep dive on the selling opportunities in Mix (M) category– How to identify opportunities using the OPR– How to identify/confirm opportunities through store walk-through– How to sell-in and execute identified opportunities

Week 2• Mix

• Deep dive on the selling opportunities in cost-to-serve (C) category– How to identify opportunities using the OPR– How to identify/confirm opportunities through store walk-through– How to sell-in and execute identified opportunities

Week 3• Cost-to-serve

• Deep dive on the selling opportunities in Merchandising/Space Quality (MS) category– How to identify opportunities using the OPR– How to identify/confirm opportunities through store walk-through– How to sell-in and execute identified opportunities

Week 4• Merchandising /

space quality

• Developing skills to help deliver the sell-in story to the customer• Review of 7-step call process including: prepare for the call, provide opening

statement, question and listen, explore customer needs, present solutions, handle objections, close and conclude

Week 6• CCE Selling

Topic Details

• Deep dive on the selling opportunities in Programs and Initiatives (PI) and Price (P) categories– How to identify opportunities using the OPR– How to identify/confirm opportunities through store walk-through– How to sell-in and execute identified opportunities

Week 5• Programs and

Initiatives• Price


Retail Price

CCE Net Revenue (DNNSI)

Retailer margin, taxes, and other deductions

$1.19

$0.55

$0.64

Cost of goods sold (COGS)

DNGP (Gross Profit) Current success measure

$0.23

$0.41

Operating income (OI)

Selling and order taking costs

Depreciation (equipment capital expense)

Equipment service costs

General and administrative costs

The new success measure

Delivery and warehousing costs

Merchandising costs$0.05$0.01$0.04

$0.02

$0.10

$0.03

$0.16

Total operating expenses = $0.25, just as large asCost of Goods Sold!

BREAKDOWN OF CCE OPERATING INCOME FOR ONE 20 OZ. BOTTLE

REVIEW FROM CUSTOMER EXCELLENCE LAUNCH

What is the new success measure for CCE?

What are some of the action steps that we can take to improve this metric?

Do these action steps include items beyond incremental sales?


Support tools

Follow-upAfter you leave

SellIn the outlet

PrepareBefore you go

Steps 2 3

Activities A. Review outlet profitability report (OPR) and consider selling opportunities

B. Develop recommendations and record using BOSS

C. Set up call (if necessary)

A. Confirm opportunities through outlet walk-around

B. Provide opening statementC. Question and listen D. Explore customer needsE. Present solutionsF. Handle objectionsG. Close and conclude

A. Record call/visit results using BOSS

B. Implement recommendationsC. Follow-up with customer (if

necessary)

1

Description How you will get it

Outlet Profitability Report • Report by outlet showing profitability indicators and brand / package mix

• Updated through BOSS monthly

Call tree • List of key contact points for getting things done

• Distributed by your DSM

Selling Opportunities • Categorized list of ideas to help improve OI in each outlet (includes sell-in story for each opportunity)

• Accessible through BOSS

Channel Guides • Profile for each channel including key messages for the customer and package/brand recommendations

• Accessible through BOSS

BOSS • Online system to access selling tools • N/A

THE SELLING PROCESS

This standard, simple selling process will allow us to diagnose, identify, track, and execute OI-improvement opportunities in the outlets.

(This page available on your Day 1 readiness card distributed at the launch meeting)


A.Review outlet profitability report (OPR) and consider selling opportunities

B.Develop recommendations and record using BOSS

C.Set up call (if necessary)

1


PREPARATION: RECALL THE 5 SELLING OPPORTUNITY CATEGORIES

• What does each one of these categories mean?

• How could levers in each one of these categories positively affect operating income?


• The outlet profitability report should be utilized to plan for every sales call

• These reports are extremely confidential and should not be shared with the customer or left in the outlet

• Your DSM will be your go-to resource for questions about how to use and interpret this report

GUIDELINES FOR USING THE OUTLET PROFITABILITY REPORT


THE OUTLET LEVEL PROFITABILITY REPORT PROVIDES LOTS OF DETAILED OUTLET INFORMATION . . .

This box gives a rank of this outlet’s OI in the channel

See how your pack pricing

compares to the channel

How much of your volume came from

each package

Which brands are most popular at

this outlet?

See how this outlet’s OI stacks up against other stores of similar

size

See how this outlet’s cost to

serve compare to other stores

Make notes here about opportunities in

this outlet

See your equipment count

by asset type

Find your OI bottom line

See details on this outlet

Rough estimate of how much OI could improve

SMALL STORE EXAMPLE


. . . WHICH CAN BE USED TO IDENTIFY OPPORTUNITIES TO INCREASE OI BY LOOKING AT PACKAGE MIX . . .

Other packages include: 10 oz,

11.5 oz, 1.5L, 32 oz, and 64 oz

Indicates the % of volume from each package type for this outlet (e.g.

91.6% from BIB)

1 liter12 oz16 oz bottle2 liter20 oz wide20 oz24 oz500 ML8 oz cans32 ozPostmix BIBOther can (ie. Energy)

Other packagesTOTAL

Package

8.6% 10.3% 12.7% 11.6% 10.5% 10.1%29.7% 39.9% 32.2% 26.8% 37.5% 42.5%0.0% 3.0% 3.3% 3.7% 3.1% 3.0%

27.5% 7.9% 5.0% 9.4% 8.9% 7.4%0.0% 0.9% 1.0% 1.6% 1.1% 0.7%

23.0% 25.6% 34.9% 33.3% 27.4% 23.9%0.0% 0.0% 0.1% 0.0% 0.0% 0.0%0.5% 1.0% 0.5% 0.5% 0.5% 1.3%0.5% 0.1% 0.1% 0.2% 0.2% 0.1%0.0% 2.1% 1.4% 4.0% 1.7% 2.0%0.0% 3.1% 3.2% 2.5% 2.9% 3.3%1.4% 4.2% 4.0% 4.0% 4.1% 4.3%9.0% 1.8% 1.7% 2.4% 2.1% 1.5%100% 100% 100% 100% 100% 100%

YOUChannel

Avg

Channel Avg

Small

Channel Avg

Medium

Channel Avg

Large

M1. YOUR PACK MIX vs. OTHER STORES

Channel Top

Ten%

Green shading highlights an opportunity to improve

outlet profitability by changing package mix (i.e. shift mix from 2 L to 20 oz)

Indicates the average volume

breakdown for the channel

Indicates the average volume breakdown for

the top 10% most profitable outlets in the

channelIndicates the average volume breakdown for

small, medium, and large outlets in the channel (size is determined by volume)


11.5 oz, 1.5L, 64 oz, cups, lids


23.0% from 20oz)

From the data shown,what is the average volumebreakdown of 12 oz cans

in the channel?

SMALL STORE EXAMPLE


. . . THE BRAND/CATEGORY MIX . . .

Indicates the % of volume from each brand type for this

outlet (e.g. 37.1% for regular CSD)





channel

Green shading highlights an opportunity to improve outlet profitability by addressing a gap in key emphasis brands

(e.g. water or energy)

Indicates volume breakdown

between carb / non-carb

Indicates the relative profitability of brands

for this outlet; OI margin = operating

income / DNNSI

Includes Bravo and Seagram’s







channel







income / DNNSI



channel









income / DNNSI



channel











income / DNNSI



channel





Includes Sprite, Barqs, Fanta, Fresca, Mello

Yello






Yello



CSD - Regular 130 58.6% 45.5% 44.0% 8.9%CSD - Diet 39 17.6% 16.5% 16.0% 20.5%Sprite/Barqs/Flavors 42 18.9% 14.6% 14.7% 21.4%Energy 3 1.4% 4.3% 4.1% 19.3%Sports - 0.0% 4.1% 4.3%Water 6 2.7% 8.8% 10.8% 5.3%Juice Drink - 0.0% 3.8% 4.1%Tea 2 0.9% 2.2% 1.9% 34.8%Other brands - 0.0% 0.1% 0.1%Total CSD 214 96.4% 80.9% 74.7%Total NCB 8 3.6% 19.1% 21.2%

M2. YOUR BRAND MIX

Channel Top

Ten%

OI Margin %

Brand Vol YouChannel

Avg





(i.e. increase energy and water)



income / DNNSI



channel




Yello



From the data shown,what is the channel

average for % of NCB in this channel?

SMALL STORE EXAMPLE


. . . COST-TO-SERVE METRICS FOR THE OUTLET . . .

YOU (Medium)Channel AverageChannel Top Ten%Channel Avg SmallChannel Avg MediumChannel Avg Large

0.9 19 221 2.15$ 1.03$ -$ -$ 1.10$ -$ 0.9%0.8 35 439 1.18$ 0.55$ 0.12$ 51$ 0.12$ -$ 1.5%0.8 43 617 0.84$ 0.43$ 0.02$ 20$ 0.06$ -$ 1.1%0.4 16 243 2.22$ 1.17$ 0.36$ 40$ 0.45$ -$ 3.9%0.8 28 365 1.58$ 0.74$ 0.18$ 50$ 0.18$ -$ 2.1%0.8 68 823 0.89$ 0.39$ 0.07$ 64$ 0.06$ -$ 1.0%

C. YOUR COST TO SERVE vs CHANNEL

Order cost / case

EQSV cost / case

EQSV cost / asset

# of Deliv / week

Avg. Drop Size Volume

Avg. Drop Size

DNNSI

Asset cost / case

Merch cost / case

Returns / BD&L %

Del cost / case

Indicates the relative size of

your outlet in the channel

Delivery cost per case; reduce by increasing

volume per delivery or reducing delivery

frequency

Average number of deliveries per week for outlet

Average volume per delivery (larger

is better)

Average DNNSI per delivery (larger

is better)

Order-taking cost per case; reduce by decreasing order

frequency or switching outlet to CDC

Equipment service cost per case and per asset; reduce by decreasing

equipment service calls Depreciation cost per case; reduce by increasing volume

sold per asset

Merchandising cost per case; reduce by ensuring

that merchandising service is aligned with demand and not over-

servicing account

Returns / BD&L hurt OI

From the data shown,How big is the average drop size in the largest stores in this channel?

SMALL STORE EXAMPLE


. . . AND THE PACKAGE PRICING AND PROFITABILITY INFORMATION FOR THE OUTLET

Indicates the DNNSI / case for

this outlet

Indicates the average DNNSI /

case for this channel

1 liter 19 9.84$ 11.17$ -10.1%12 oz 66 7.18$ 6.67$ -2.8%16 oz bottle - 21.65$ 2 liter 61 9.75$ 9.33$ -9.0%20 oz wide - 15.91$ 20 oz 51 19.49$ 18.07$ 41.5%24 oz - 17.38$ 500 ML 1 17.00$ 10.51$ -9.0%8 oz cans 1 15.50$ 13.90$ 46.6%Postmix BIB - 45.15$ 32 oz - 11.25$ Other can (ie. Energy) 3 25.67$ 25.05$ -0.4%Other packages 20 14.60$ 12.83$ 41.7%TOTAL 222 11.95$ 12.67$ 14.2%

Package VolDNNSI

$ / Case

Avg DNNSI /

case Channel

OI Margin %

P. YOUR PACK PRICING / PROFITABILITY

Indicates the relative profitability of packages


income / DNNSI

Opportunities could exist where the average DNNSI / case in

the channel exceeds the DNNSI / case for this outlet

Indicates the DNNSI / case for

this outlet

Indicates the average DNNSI /

case for this channel

From the data shown,what is the OI margin for

20 oz. bottles in this outlet?

SMALL STORE EXAMPLE


ACTIVITY: PRACTICE USING THE TOOLS TO PREPARE FOR A VISIT (PART A)

Instructions:

With a partner, use the following process to prepare for a visit:

1. Review the categories of selling opportunities and give one example of a specific action step within each category

2. Analyze one of your outlet’s OPR to identify opportunity areas

3. For the OPR that you analyzed earlier, develop specific action steps using the selling opportunities

4. Record recommended action steps using BOSS

5. Choose one high-priority opportunity and develop a sell-in story to present to the customer

Time: 10 minutes


SO NOW WHAT?

Let’s develop action steps to address these OI-improvement areas that you have identified using the OPR. . .

To do this, let’s dig deeper into the selling opportunities . . .


PREPARATION STEP B: IDENTIFY SPECIFIC SELLING OPPORTUNITY TO ADDRESS IMPROVEMENT AREAS

Once the opportunity is identified, think about specific action steps to take to address the opportunity


0.0% 0.0% 0.0% 0.0% 0.0% 0.0%0.0% 14.9% 0.0% 9.5% 11.5% 15.8%0.0% 0.5% 0.0% 2.7% 2.5% 0.0%0.0% 0.0% 0.0% 0.0% 0.0% 0.0%0.0% 0.1% 0.0% 0.0% 0.5% 0.0%0.0% 18.5% 90.9% 16.2% 3.7% 21.5%0.0% 0.0% 0.0% 0.0% 0.0% 0.0%0.0% 0.1% 0.0% 0.0% 0.5% 0.0%0.0% 0.7% 0.0% 0.0% 0.0% 0.8%

100.0% 55.0% 9.1% 66.2% 81.1% 49.4%0.0% 0.1% 0.0% 5.4% 0.0% 0.0%0.0% 0.0% 0.0% 0.0% 0.0% 0.0%0.0% 10.2% 0.0% 0.0% 0.0% 12.5%100% 100% 100% 100% 100% 100%

Channel Top

Ten%

Channel Avg

Large

1A. YOUR PACK MIX vs. OTHER STORES

YOUChannel

Avg

Channel Avg

Small

Channel Avg

Medium

Description Sell-in story to customer Implementation steps

• Increasing bottle / can penetration in eat / drink serves the need of on-the-go occasions, particularly in the QSR channel

• Your customers prefer beverages in bottles for their on-the-go needs

• By adding the 20 oz package, ~6% more of your customers will purchase a beverage (according to our Eat/Drink channel survey), increasing your overall profits

EXAMPLE OPPORTUNITY FROM PACKAGE MIX: INCREASE BOTTLE / CAN PENETRATION IN EAT / DRINK

1 liter12 oz16 oz bottle2 liter20 oz wide20 oz24 oz500 ML8 oz cansPostmix BIBPremixOther can (ie. Energy)

Other packagesTOTAL

Package

Example analysis: Universal Grill – QSR Hamburger

• This outlet currently sells 100% of volume in Postmix

• The most profitable outlets in this channel, sell 91% in 20 oz instead

• This is an opportunity to add 20 oz availability

• Confirm the opportunity with the customer

• Arrange for placement of the cooler with Red Desk

• For CDC outlets: Use BOSS to notify the CDC of the change

• For F2F: call the F2F order-taker for the outlet to change order mix

How will executing this opportunity improve

operating income?


PREPARATION STEP B: DOCUMENT YOUR RECOMMENDATIONS USING BOSS

• In your BOSS training, you have learned how to track the opportunities that you have identified

• As part of your preparation process, you should take time to use this feature to help stay organized and focuses, as well as let the CDC know which opportunities you are currently looking to address in each outlet


ACTIVITY: PRACTICE USING THE TOOLS TO PREPARE FOR A VISIT (PART B)

Instructions:

With a partner, use the following process to prepare for a visit:

1. Review the categories of selling opportunities and give one example of a specific action step within each category

2. Analyze one of your outlet’s OPR to identify opportunity areas

3. For the OPR that you analyzed earlier, develop specific action steps using the selling opportunities

4. Record recommended action steps using BOSS

5. Choose one high-priority opportunity and develop a sell-in story to present to the customer

Time: 10 minutes


ACTIVITY DEBRIEF

Questions:

1. What specific opportunities were you able to identify? Which ones do you think are the highest priority?

2. What specific element of OI will be impacted with these action steps?

3. How will you make time to prepare for these visits by reviewing your OPRs and using BOSS to track your actions?


1. Drive improved operating income in your outlets through this standardized selling process

2. Apply the opportunity framework every time you plan for an outlet visit

• Mix• Cost-to-serve• Programs / initiatives• Merchandising / space quality• Price

3. Learn and utilize the selling tools available to you • Outlet profitability report• Selling opportunities• BOSS

KEY TAKEAWAYS ON PREPARING


PUT THIS LEARNING INTO PRACTICE!

Next steps:

1. Take time this week to analyze the OPR, develop specific action steps, and use BOSS to plan for at least 10 of your accounts.

2. With your identified opportunities and sell-in stories, start to talk to your customers about executing.

10 Minute Break10 Minute Break

Sustaining Customer Excellence:Reinforcement Session Two(On-Premise)

Sustaining Customer Excellence:Reinforcement Session Two(On-Premise)


THIS IS THE BEGINNING OF A 6-WEEK PROGRAM TO ACCOMPLISH THESE OBJECTIVES



Week 1• Overview


Week 2• Mix





space quality




Topic Details





THIS WEEK’S FOCUS IS THE MIX CATEGORY

• What are four specific action steps in the mix category?

III


DEEP DIVE ON MIX SELLING OPPORTUNITIESIII

Mix

Potential action steps

M

A. Match package mix to channel best practice

B. Increase 20 oz availability (in place of cans or 2L)

C. Increase bottle/can availability in Eat/Drink channels

Package1

Brand/category A. Match brand/category mix to consumer profile of outlet

B. Optimize brand assortment/facings to match demand

C. Increase availability of key emphasis and new brands where appropriate (Vault, Coke Zero, Dasani, PowerAde, Energy)

2

For each of the these opportunities:

• Describe specifically how you could execute each action step

• When is it appropriate to execute each action step in an outlet?

• How will you identify when each action step is applicable? Which tools can you use?


BEFORE YOU GO: REVIEW OPR FOR PACKAGE MIX


11.5 oz, 1.5L, 32 oz, and 64 oz


91.6% from BIB)

1 liter12 oz16 oz bottle2 liter20 oz wide20 oz24 oz500 ML8 oz cans32 ozPostmix BIBOther can (ie. Energy)

Other packagesTOTAL

Package

8.6% 10.3% 12.7% 11.6% 10.5% 10.1%29.7% 39.9% 32.2% 26.8% 37.5% 42.5%0.0% 3.0% 3.3% 3.7% 3.1% 3.0%

27.5% 7.9% 5.0% 9.4% 8.9% 7.4%0.0% 0.9% 1.0% 1.6% 1.1% 0.7%

23.0% 25.6% 34.9% 33.3% 27.4% 23.9%0.0% 0.0% 0.1% 0.0% 0.0% 0.0%0.5% 1.0% 0.5% 0.5% 0.5% 1.3%0.5% 0.1% 0.1% 0.2% 0.2% 0.1%0.0% 2.1% 1.4% 4.0% 1.7% 2.0%0.0% 3.1% 3.2% 2.5% 2.9% 3.3%1.4% 4.2% 4.0% 4.0% 4.1% 4.3%9.0% 1.8% 1.7% 2.4% 2.1% 1.5%100% 100% 100% 100% 100% 100%

YOUChannel

Avg

Channel Avg

Small

Channel Avg

Medium

Channel Avg

Large

M1. YOUR PACK MIX vs. OTHER STORES

Channel Top

Ten%

Green shading highlights an opportunity to improve

outlet profitability by changing package mix (i.e. shift mix from 2 L to 20 oz)





channelIndicates the average volume breakdown for

small, medium, and large outlets in the channel (size is determined by volume)


11.5 oz, 1.5L, 64 oz, cups, lids


23.0% from 20oz)

III


BEFORE YOU GO: REVIEW OPR FOR BRAND/CATEGORY MIX







channel







income / DNNSI








channel







income / DNNSI



channel









income / DNNSI



channel











income / DNNSI



channel






Yello






Yello



CSD - Regular 130 58.6% 45.5% 44.0% 8.9%CSD - Diet 39 17.6% 16.5% 16.0% 20.5%Sprite/Barqs/Flavors 42 18.9% 14.6% 14.7% 21.4%Energy 3 1.4% 4.3% 4.1% 19.3%Sports - 0.0% 4.1% 4.3%Water 6 2.7% 8.8% 10.8% 5.3%Juice Drink - 0.0% 3.8% 4.1%Tea 2 0.9% 2.2% 1.9% 34.8%Other brands - 0.0% 0.1% 0.1%Total CSD 214 96.4% 80.9% 74.7%Total NCB 8 3.6% 19.1% 21.2%

M2. YOUR BRAND MIX

Channel Top

Ten%

OI Margin %

Brand Vol YouChannel

Avg





(i.e. increase energy and water)



income / DNNSI



channel




Yello



III


IN THE OUTLET: KEY QUESTIONS TO IDENTIFY MIX OPPORTUNITIES DURING THE WALK-THROUGH

While walking the store

Mix

• Do I have the right products and packages to meet the occasion needs of these consumers (e.g. at home, on the go)?

• Is my SKU mix balancing profit and volume? Are there ways to introduce more high-OI packages into the mix?

• What packages/brands are out-of-stock? Which packages/brands sell down the quickest?

• Are all key emphasis and new brands available at this outlet?

MImplications

• M1A, M2A: Add or remove the packages or brands from outlet

• M1B, M1C: Shift emphasis away from low-profitability packages such as cans or 2L, increase bottle/can penetration

• M2B: Adjust the space to sales to better match the demand of the consumer

• M2C: Authorization permitting, introduce brand (may mean removing a low emphasis brand from the mix)

III


ACTIVITY A: IDENTIFYING MIX OPPORTUNITIES IN YOUR OUTLETS

Instructions:

With a partner, discuss two of your outlets and identify mix action steps. Be sure to address the following questions for each outlet:

1. What is the area of opportunity (brand and package)?

2. How did you identify this opportunity?

3. What specific action step will you use to address this area?

(If possible, choose outlets so that all multiple specific action steps are discussed in each group)

Time: 10 minutes

IV


BUT KNOWING WHAT TO PRESENT IS ONLY HALF OF THE EQUATION

Science Art

• Knowing how to use the tools to identify OI-improvement opportunities

• Understanding what to present to the customer

• Applying skills, such as listening and questioning, to more effectively communicate

• Understanding how to present to the customer

Selling is both a science and an art…

+

V


STANDARD 6-STEP SELL PROCESS ALLOWS FOR EFFECTIVE CUSTOMER COMMUNICATION

This week, let’s focus on opening our conversations

with a bang!

V

SellIn the outlet

2

A.Confirm opportunities through outlet walk-around

B.Provide opening statementC.Question and listen D.Explore customer needsE.Present solutionsF.Handle objectionsG.Close and conclude


OPENING STATEMENTS LAY THE FOUNDATION FOR PRODUCTIVE CONVERSATIONS

The importance of an effective opening statement

The three parts of an opening statement

• Aligns expectations

• Gains the customer’s approval for the purpose of the call

• Shows that you are organized

• Shows concern for using customer’s time wisely

• Opens up communication

• Increases customer’s ownership of interaction

• Demonstrates customer focus; builds trust

• Helps you earn right to advance

• Purpose– Informs the customer of why you

are there

• Benefit– States the value the customer

will receive

• Check– Asks if the customer agrees on

the purpose of the discussion and is willing to go ahead

Opening Statements are designed to do all of the above. It helps you to be more productive by engaging the customer from the start.

V


ACTIVITY B: PRESENTING POWERFUL SELL-IN STORIES TO YOUR CUSTOMERS

Instructions:

• For one of the opportunities you identified in Activity A, prepare a sell-in story– Ensure that you and your partner have not chosen the same

opportunity

• Take time to develop a powerful opening statement

• With a partner, role-play your customer interaction to sell-in the action step– Each partner will be the customer once - 2 role plays in total – As a customer, be sure to test the ADM (some potential

objections are listed on the next slide)

Time: 15 minutes

VI


• “I can’t commit to that space.”

• “I don’t see why consumers would want a bottled drink rather than out of the fountain.”

• “Adding another dump bin is going to disrupt the flow of traffic in my store.”

• “What’s in it for me?”

• “I’ve already given you everything that’s in the CMA agreement.”

ROLE PLAY OBJECTIONS/QUESTIONS TO CONSIDER

• “This doesn’t match the planogram.”

• “But my customers love that brand, we need to keep them happy.”

• “That stuff doesn’t sell! We can’t replace anything in the cooler with that.”

• “Why are you reducing my availability?”

• “No, I can’t give you more space, it wouldn’t be fair to the other vendors.”

• “Why are you putting that package on display, it isn’t on the ad?”

• “Those stacks in the aisle make it look cluttered.”

• “No one buys that energy stuff.”

• “My customer won’t be able to access the 2L when you put those 8 oz cans in front.”

• “People won’t buy that. I’ve heard it doesn’t taste good.”

• “In this neighborhood, energy won’t sell.”

• “I already have 4 other kinds of waters.”

• “How will this product make me more money?”

PACKAGE MIX

BRAND/CATEGORY MIX

VI


ACTIVITY DEBRIEF

Questions:

1. How did you present “win-win” cases for each of the action steps?

2. What specific element of OI will be impacted with these action steps?

3. What were some of the most common objections? How were you able to address these issues?

4. How were the opening statements from the customer perspective? What are creative ways to provide a powerful opening statement?

VI


1. Apply the selling opportunities every time you plan for an outlet visit and make a visit

• In Mix specifically, ask if you have the right package and brand/category mix in each outlet

2. Store walk-throughs needed to confirm opportunity areas identified during preparation

• While the outlet profitability report reveals where opportunity areas exists, familiarity with the store is necessary to plan specific, tangible action steps

3. Selling is both science and art• Understanding how to talk to customers is just as

important as knowing what to say to customers

KEY TAKEAWAYS ON MIX



Next steps:

1. Focus on the selling opportunities in the mix category this week. While preparing for your visits and walking the stores, identify action steps that will positively impact operating income.

2. With your identified opportunities, develop sell-in stories and share them with your customers, paying close attention to practice your opening statements.

30 Minute Lunch30 Minute Lunch


REVIEW FROM WEEKS 1-2

1. What are the three steps of the selling process?

2. What are the five categories of selling opportunities?

3. Fill in the blank: in the mix category, opportunities deal with both

_______________ mix ______________________ mix.

4. What are some benefits of a strong opening statement?

Cost-to-Serve

Programs and Initiatives

PriceMerchandising / space quality

Mix

II

Package Brand/Category

• Aligns expectations

• Gains the customer’s approval for the purpose of the call

• Shows that you are organized

• Shows concern for using customer’s time wisely

• Opens up communication

• Increases customer’s ownership of interaction

• Demonstrates customer focus; builds trust

• Helps you earn right to advance

Follow-upAfter you leave

SellIn the outlet


2 31

Sustaining Customer Excellence:Reinforcement Session Three(On-Premise)

Sustaining Customer Excellence:Reinforcement Session Three(On-Premise)


THIS IS PART OF A 6-WEEK PROGRAM TO ACCOMPLISH THESE OBJECTIVES



Week 1• Overview


Week 2• Mix





space quality




Topic Details





THIS WEEK’S FOCUS IS THE COST-TO-SERVE CATEGORYIII

• What are the two subcategories to consider in the cost-to-serve category?


DEEP DIVE ON COST-TO-SERVE SELLING OPPORTUNITIESIII

For each of the opportunities:

• Describe specifically how you could execute each action step

• When is it appropriate to execute each action step in an outlet?

• How will you identify when each action step is applicable? Which tools can you use?

Potential action steps

Cost-to-serveC

Delivery A. Reduce delivery frequency by increasing back-stock

B. Increase back-stock for low volume SKUs to reduce miss-deliveries from out-of-stocks

C. Reduce returns / BD&L by replacing low performing SKUs with higher performing SKUs

D. Enforce the minimum order quantity

1

Equipment A. Optimize equipment location to higher traffic areas or to first position in shared outlets

B. Add equipment in high traffic areas when it will pay back

C. Assess equipment type for product volume

2


BEFORE YOU GO: REVIEW COST-TO-SERVE METRICS FOR THE OUTLET III

YOU (Medium)Channel AverageChannel Top Ten%Channel Avg SmallChannel Avg MediumChannel Avg Large

0.9 19 221 2.15$ 1.03$ -$ -$ 1.10$ -$ 0.9%0.8 35 439 1.18$ 0.55$ 0.12$ 51$ 0.12$ -$ 1.5%0.8 43 617 0.84$ 0.43$ 0.02$ 20$ 0.06$ -$ 1.1%0.4 16 243 2.22$ 1.17$ 0.36$ 40$ 0.45$ -$ 3.9%0.8 28 365 1.58$ 0.74$ 0.18$ 50$ 0.18$ -$ 2.1%0.8 68 823 0.89$ 0.39$ 0.07$ 64$ 0.06$ -$ 1.0%

C. YOUR COST TO SERVE vs CHANNEL

Order cost / case

EQSV cost / case

EQSV cost / asset

# of Deliv / week

Avg. Drop Size Volume

Avg. Drop Size

DNNSI

Asset cost / case

Merch cost / case

Returns / BD&L %

Del cost / case

Indicates the relative size of

your outlet in the channel

Delivery cost per case; reduce by increasing

volume per delivery or reducing delivery

frequency

Average number of deliveries per week for outlet

Average volume per delivery (larger

is better)

Average DNNSI per delivery (larger

is better)

Order-taking cost per case; reduce by decreasing order

frequency or switching outlet to CDC

Equipment service cost per case and per asset; reduce by decreasing

equipment service calls Depreciation cost per case; reduce by increasing volume

sold per asset

Merchandising cost per case; reduce by ensuring

that merchandising service is aligned with demand and not over-

servicing account

Returns / BD&L hurt OI


IN OUTLET: QUESTIONS TO IDENTIFY COST-TO-SERVE OPPORTUNITIES DURING THE WALK-THROUGH

While walking the store Implications

• C2A: optimize equipment location to higher traffic areas

• C2B: When it makes sense (i.e. when it will earn a positive return on investment), introduce new equipment

• C1C: Eliminate number of facings of low-performing SKUs

• C1B: Adjust order writing to better match store needs, reducing off-day deliveries

• C1A: Optimize delivery frequency, ensuring right product at the right time

• C2C: Assess equipment type for product volume

• C1D: Enforce MOQ to reduce the number of deliveries

III

Cost-to-serve

• How are my locations/positions in this store? Are they 1st position? How would the consumer walk the outlet?

• Are there opportunities to profitably place new equipment?

• Do I consistently have out-of-date product that needs to be returned?

• Do I have the right products in the backroom? Are orders accurate?

• Does this store really need X deliveries each week?

• Is this the right piece of equipment for the amount of volume that it sells?

• Is the store receiving deliveries that are smaller than the minimum order quantity?

C


ACTIVITY A: IDENTIFYING COST-TO-SERVE OPPORTUNITIES IN YOUR OUTLETS

Instructions:

With a partner, discuss two of your outlets and identify cost action steps. Be sure to address the following questions for each outlet:

1. What is the area of opportunity (delivery, equipment, returns)?

2. How did you identify this opportunity?

3. What specific action step will you use to address this area?

(If possible, choose outlets so that specific action steps are discussed only once in each group)

Time: 10 minutes

IV


NOW THAT YOU’VE IDENTIFIED THE OPPORTUNITIES, LET’S COMMUNICATE TO THE CUSTOMERV

EXAMPLEDetailed selling opportunity pages (available for some opportunities) include tips to develop sell-in stories


STANDARD 6-STEP SELL PROCESS ALLOWS FOR EFFECTIVE CUSTOMER COMMUNICATION

This week, let’s focus on understanding customer needs

through questioning and listening

SellIn the outlet

2

A.Confirm opportunities through outlet walk-around

B.Provide opening statementC.Question and listen D.Explore customer needsE.Present solutionsF.Handle objectionsG.Close and conclude

V


EFFECTIVE QUESTIONING AND LISTENING CRITICAL TO UNDERSTANDING NEEDS AND BUILDING TRUSTV

Questioning

• There are three types of questions…– Closed-ended questions

• Can be answered with a few words• Used to confirm info, encourage a decision,

ensure that customer is paying attention– Open-ended questions

• Require a more lengthy response• Used to obtain information and encourage

customer to talk– High-gain questions

• Require a thoughtful answer• Used to uncover and pinpoint needs,

problems, and priorities• Examples: “What concerns you most in this

situation?” “If you could make one significant improvement, what would it be?”

• Benefits of effective questioning– Better understanding of customer’s needs– You show that you are truly interested – Creates immediate value for customers– Strengthens relationship with the customer– Reveals information that competitors may not

know

Listening

• Listening techniques to help you…– Accurately interpret what the customer is saying

• Listen without judgment• Pay attention to body language

– Ensure customers talk and feel “heard”• Use an interested tone of voice• Keep a pleasant expression on your face• Maintain eye contact

– Ensure mutual understanding• Confirm the customer’s facts and feelings

• Some roadblocks to effective listening– Thinking only about your own needs– Dismissing a topic prematurely– Yielding too easily to distractions

• Benefits of effective listening– Enables you to build rapport and trust– Allows you to gain info about a customer’s needs– Attunes you to the customer’s feelings– Shows customers that you care– Helps you align your expectations with your

customer’s– Shows that you respect the customer’s time


ACTIVITY B: PRESENTING POWERFUL SELL-IN STORIES TO YOUR CUSTOMERS

Instructions:

• For one of the opportunities you identified in Activity A, prepare a sell-in story– Ensure that you and your partner have not chosen the same

opportunity

• Take time to develop an opening statement • Think about 3-4 questions you can ask to help uncover the

customer’s needs and practice listening effectively

• With a partner, role-play your customer interaction to sell-in the action step– Each partner will be the customer once - 2 role plays in total – As a customer, be sure to test the ADM (some potential

objections are listed on the next slide)

Time: 15 minutes

VI


• “My backroom is not an extension of your warehouse.”

• “I’m not giving you extra space so that you can reduce deliveries.”

• “All vendors have the same amount of space in the backroom, it wouldn’t be fair to give you more.”

• “Less deliveries is going to mean more out-of-stocks.”

• “What’s this minimum order quantity? I’ve never even heard of this before.”


ROLE PLAY OBJECTIONS/QUESTIONS TO CONSIDER

• “I can’t commit to that space.”

• “I don’t see why consumers would choose a beverage in that location.”

• “I think the cooler is just fine where it is right now. I don’t think it makes sense to move it.”


• “It’s unfair to give you 1st position.”

• “I’ve already given you everything that’s in the CMA agreement.”

DELIVERY EQUIPMENT

VI

• “This doesn’t match the planogram.”

• “But my customers love that brand, we need to keep them happy.”

• “Why are you reducing my availability?”

• “No, I can’t give you more space, it wouldn’t be fair to the other vendors.”

• (Small store) “We don’t have the time to organize the backroom or rotate product for you.”

• “I need to have everything in the backroom in case something runs out on the floor.”

• “We don’t have the room to bring in all this volume at once.”

OTHER


ACTIVITY DEBRIEF

Questions:

1. How did you present “win-win” cases for each of the action steps?

2. What specific element of OI will be impacted by implementing the recommended action steps?

3. What were some of the most common objections? How were you able to address these issues?

4. What information did you obtain from effectively questioning and listening?

5. What questions were most effective in helping you understand the customer’s needs?

VI


1. Apply the selling opportunities every time you plan for an outlet visit and make a visit

• Ask if you have opportunities to improve cost-to-serve by considering the number of deliveries and equipment in the outlet

2. Store walk-throughs needed to confirm opportunity areas identified during preparation

• While the outlet profitability report reveals where opportunity areas exists, familiarity with the store is necessary to plan specific, tangible action steps

3. Effective questioning and listening goes a long way• Knowing how to engage the customer is critical to

understanding customer needs and building trust

KEY TAKEAWAYS ON COST-TO-SERVE



Next steps:

1. Focus on the selling opportunities in the cost-to-serve category this week. While preparing for your visits and walking the stores, identify action steps that will positively impact operating income.

2. With your identified opportunities, develop sell-in stories and share them with your customers, paying close attention to practice asking high-gain questions and listening effectively.

10 Minute Break10 Minute Break

sustaining customer excellence: reinforcement sessions (on-premise)

Documents

amclassified confidential

sourceworking draft

adjournunit of measure

selling tips

ce reinforcement module

new success measure

launch meetingunit of

simple selling process