1. 2019
2019 Advantage Meeting

2. Advantage Distributors have achieved 16% CAGR over the past 5 years
+17%
+1%
+10%
+ 20%
+20%
+3%

3. The Right Environment
The Right Environment allows people to be more productive, more comfortable, and just happier in the places they live and work.
Spaces should adapt over time, changing your needs — putting the human experience first.
Smart lighting control solutions continue to grow while the need to take a human centric approach to lighting is increasing in importance.
Lutron helps your contractors meet the demand for smart lighting control while also providing human centric lighting.
Lutron offers a variety of options for commercial and residential markets — solutions for those markets applications, budgets, and needs.

4. How Lutron Helps Create the Right Environment
Provides smart, intuitive technology
Connected homes deliver ambiance and peace of mind, commercial solutions improve productivity while providing more comfortable work environments
Offers a variety of solutions
Wired and wireless systems, automated shades, and solutions to control various light sources, including tunable white fixtures
Delivers design excellence
Our approach to design challenges our teams to ensure that every solution we manufacture is not only beautiful, but easy to use and reliable
Offers exceptional service and support
Our customers always have, and always will, come first. We stand by our 24/7 global tech support and offer resources to help you with your projects, such as our LED Center of Excellence and portfolio of design tools.

5. Portfolio of Commercial Solutions
Enterprise Vue
Manage data and operations for multiple
solutions
Limelight
Wireless outdoor lighting control solution
Quantum
Wired and wireless lighting and shade control for total light management
Vive
Simple, scalable, wireless
Quantum and Vive solutions control any OEM fixture regardless
of dimming protocol, allowing for superior fixture flexibility:
EcoSystem | DALI | 0-10V | Forward-/Reverse-Phase

6. Portfolio of Residential Solutions
Sivoia QS Shades 2M
HomeWorks QS
WEALTHY 8M
RadioRA 2
Upper Income
RA2 Select
34M
How we educate contractors and create farmers with distributors and contractors
Triathlon Shades
Upper Middle Income
Caséta
43M
Wallbox
Middle Income

7. Stock and Flow Categories
Remember the categories the channel can influence day in and day out
Take the correct actions to drive growth in sales and profits for you and your distribution customers
Merchandise our solutions
Train the channel
Train the channel’s customers
End user sales calls
Promotion and Marketing

8. Business Development Leader

9. Business Development Leader
NEW!
Business Development Leader
Opportunity to elevate a key person within distribution to drive:
Responsibility- your organization should give this person the authority and responsibility to expand the lighting control category across your company not just at a branch level
Merchandising- Identify and execute company wide
Training- Execute a comprehensive training plan for staff and customers
MDF- ensure that organization is using MDF to drive sales
Promotions- Develop a continuous strategy around driving promotions
Marketing and Advertising- Ensure that lighting controls are being promoted internally and externally.

10. Business Development Role
Business Development Leader
Controls Specialists
Outside Sales
Inside Sales
Branches 1 2 1 2 3 4 5 1 2 3 4 5 6 7 8 1 2 3 4 5
Lutron PRO, VIP, Merchandising, Promotions,
Data Deep Dives, Training, MDF Usage

11. Business Development Leader
NEW!
Business Development Leader
This individual would ideally be in a cross functional role that touches many parts of the business while focusing on these key categories:
Identify Key Commercial and or Residential contractors that they are looking to convert or grow their business with in 2019
Get contractors into the Lutron PRO or VIP program
Identify Key builders to help drive product specification
Identify Key commercial end users within their Geography
Develop and execute a new product launch plan within the organization that includes training, merchandising, promoting and marketing both internally and externally.
BDL should be leveraging the content located in the Commercial App
Detail of BDL

12. Business Development Training
NEW!
Business Development Training
Training will be conducted an at Lutron training for designated Business Development leaders given by the Product team, Area Leaders and the Channel Marketing team
In the training the following topics will be covered
Account development
Merchandising
MDF Strategies
Training best practices
Contractor Training
Staff training
Best practice sharing

13. Training Update

14. Training Best Practices
Prework
Set meeting with Distribution KDMs to set development goals as well as selling goals
Identify location for training
Utilize MDF to enhance training
Giveaways for engagement
New Demos
Personally invite key contractors to the event
Promote via , in store and social to all customers
At Training
LOG THE ATTENDEES SO WE CAN MARKET TO THEM
Focus on selling and elevating our contractors into wireless controls
Clearly Communicate the Lutron Advantage

15. Training Best Practices
Follow up
Task the business development leader with follow up from training events
Send product literature for all categories covered in PDF form
Work to sample key contractors/ end users
Develop internal campaign to keep contractors aware of key product launches
Over communicate any show specials or promotions around the event
Measuring results by account

16. Programs to Support Your Contractors

17. Core Advantage Materials
Sales Growth Program
Market trends, customer/vertical information, and program details
Show, Tell, Sell Merch Guide
All of Lutron’s merchandising opportunities including displays, demos, and literature
Planning Guide with tear-sheets
Account planning worksheet with tear-pads for easy planning with accounts in their branches

18. Find a PRO

19. Launch Find a PRO What- WHY-
A webpage where we will direct consumers to that are looking for a professional installer
These installers must be a member of the Lutron PRO program and confirmed that they would like to be listed as well as they are licensed and insured
WHY-
Lutron continues to create demand through consumer advertising
Radio
Digital TV
Print
Social Influencers
DIFM segment is growing exponentially
DIFM segment is looking for a professional to install the “connected home” for them

20. Launch Find a PRO 2018 Integrated Marketing Campaign
Out of Town
Home from Dinner
Pre-Roll Video click thru rate 64% above benchmark
2018 Integrated Marketing Campaign
Millions of dollars invested in marketing in (Caséta’s largest spend ever) to generate homeowner demand.
New website homepage improved conversion rate by 2.5x
Instagram stories average 20% website conversion rate to date
Publisher Integration
Social
Radio &
Podcast
Targeted Mobile / Digital
PR Pilot
Always on Digital
Over 130 placements in Philly and National outlets
61MM Impressions planned by end of campaign
Tap to Map Rate 2x’s the benchmark

21. Find a PRO- Current Coverage
Look into this more deeply, zero in more deeply by thirds, show US, but then go to respective regions, could show A, B, or C markets with no dots.

22. Find a PRO sign ups

23. Retrained their top 60 Lutron PRO’s
Identified (2) Distributors with marketing departments to drive a Lutron PRO relaunch
Retrained their top 60 Lutron PRO’s
Signed up 60 out of 80 Lutron PRO’s for Find a PRO
Doubled Caseta sales at both distributors
Sold 10 kits a piece at (3) events
Held several one on one meetings with ECs to discuss larger opportunities
Distributors continue to use Marketing funds and Lutron provided materials to tell the connected home story

24. Production Builder Opportunities

25. Local High Volume Builders
Historically success has been localized, winning a single community from a National builder or all homes from a regional builder. The “connected home” package was created locally, requiring us to compete against every brand on every project at every location.
Alden Homes homes/year
Traditions of America homes/year
Taylor Morrison home/year
Brookfield Residential homes/year
EYA Homes home community
And many more of this scope…

26. National High Volume Builders
Due to inconsistency in reliability of locally sourced connected home solutions production builder’s are creating the packages at the HQ level and mandating division use if moving forward with a connected home solution.
The opportunity is now exponentially greater *a partial list of builder’s CB is working with
Lennar single family homes ,000 homes/yr. standard
Lennar Multifamily (rental) ,200 units/yr. standard (Caseta & shades) – and growing est. 4,000 units/yr.
Toll Brothers homes/yr. standard (3) divisions – pre rollout; 7,000 home/yr. opportunity
Irving Company ,100 home standard
Brookfield Residential homes/yr. standard (2) divisions – pre-rollout; 1,800 home/yr. opportunity
Tri Pointe Group homes/yr. standard – pre-rollout; 5,000/yr. opportunity
Taylor Morrison homes/yr. standard – pre-rollout; 10,000/yr. opportunity
David Weekley homes/yr. standard – pre-rollout; 4,300/yr. opportunity

27. Pre-Close Selling Opportunity
Purchase & install of devices during construction to meet permit, code and closing requirements; e.g. in-wall sensors, dimmers & Pico’s required for multi- location applications.
Pre-Close
Step 1
Step 2
Step 3
Builder agrees to a specific discount on Lutron product e.g. 31% off list.
Discount becomes “not to exceed (NTE)” price builder is willing to pay for Lutron product from the electrical contractor.
*labor & other materials not included.
Present opportunity to distributor’s & uncover who is willing to work with the builder NTE pricing.
Distributor sells product to installing electrical contractor (EC)
*No special pricing discounts for builder sales
EC installs product.
EC invoices builder; showing NTE pricing on Lutron products

28. Post-Close (after move-in)
Post Close Selling Opportunity
Post-close
Purchase, install & activation of “loose” products that would “walk” during construction process; e.g. plug-in lamp dimmers, bridges & Pico’s on pedestals or car visor clips.
Post-Close (after move-in)
Step 1
Step 2
Step 3
Present opportunity to distributor’s & uncover who is willing to work with the builder NTE pricing.
Distributor sells product to contractor. Generally A/V or security type company that can “activate” multiple categories; networks, cameras, HVAC, Lutron…
*No special pricing discounts for builder sales
Activation contractor sets up appointment with homeowner.
Installs
Activates entire system
Educates homeowner
Contractor invoices builder; showing “not to exceed” (NTE) pricing on Lutron hardware
Labor, activation charges and time overages are pre-negotiated with builder

29. Production Builder Opportunity
Average per home opportunity
Pre-close during construction
(1) Maestro in-wall sensor switch $ ASD
(3) Caseta in-wall dimmers $ ASD
(1) Pico $ ASD
(1) Pico Adaptor; multi-location $ ASD
Total: $ ASD – per home
Post-close
(1) Caseta Pro-Bridge $ ASD
(1) Single pedestal for Pico $ ASD
Total: $ ASD – per home
74,200 home opportunity at $230 ASD = $17M/yr. not including add-on product

30. eCommerce

31. eCommerce Profile Form
Due now to be Enrolled in Advantage Program!