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Distribution Tips for Development When inserting content keep:

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Presentation on theme: "Distribution Tips for Development When inserting content keep:"— Presentation transcript:

1 Distribution Tips for Development When inserting content keep:
font consistent (type, text title size, text body size) text on screen minimal (i.e., 3-4 point, 1-2 sentences) self-study interactive through using activities and animation (identified where to throughout the self-study) animation basic to avoid it being a distraction to the learning (don’t go overboard)

2 Introduction Description
Distribution is a key measure for growing your business and achieving your KPIs. Instructions Use the ENTER key to navigate through this session Follow the instructions on the activity screens to test your knowledge Tips for Development: Description Provide learners with a description of the topic and what they will be learning in this self-study.

3 Learning Objectives By the end of this session, you will be able to:
Define Distribution Recognize the importance of Distribution Recognize the rules of calculating Distribution List key points to use when selling new Distribution to customers Identify how beer is segmented Tips for Development: Note: if you would like to add additional content please let us know and 5P will write the LOs as applicable.

4 Recap – What is Distribution
It is making brands/skus available for purchase in POCs (points of connection) Distribution is required in order to have: visibility quality rate-of-sale Tips for Development: Provide 3-4 key points that describe what Distribution is

5 Distribution Let’s start by thinking about why Distribution is important in our business. Take a minute to think about it. Click enter to see if you’re thinking what we’re thinking. Consumers are influenced by what is available – availability drives trial and consumption 2) Listings (points of distribution) allow the company and the M1 to grow volume and share Tips for Development: At this point you should provide the learner with an ‘experience’ around Distribution, make the learner think about why Distribution is important. See on screen activity for an example (the three key points can be animated to allow the learner to first ‘think’ about the benefits). Another activity could be a fill in the blank using the mission statement/winning at the point of connection (DVQ-Ros) on slide 1 of the Distribution Presentation. 3) Improved distribution achievement by an M1 increases ability to hit KPIs (MACO/POCE/Distribution) and increase variable comp payout

6 Distribution Calculation Rules - Atlantic
Targets based on historical monthly distribution, as well as programming/tools timing for the year vs last year Monthly target will be a LISTINGS target, not a % target Targets will be at the brand level, which means that package/draught can offset each other, and Combo/Agency/Regular LCBO stores can offset each other An on-premise Listing is defined as a POC that has a survey completed in the last 3 months that indicates the SKU is available An import Retail Listing is defined as a POC that sells a SKU to a consumer in the calendar month A domestic Retail Listing is defined as a POC that orders a SKU in the calendar month Surveys will drop off after 3 months – this is to account for vacations, sick days, training, etc. For each POC visited in the month, a survey needs to be complete – if there is a discrepancy between the # of POCs visited in the month and the # of POCs that have a survey for the month, there will be no payout for the distribution KPI Example: Complete an in-store visit for 40 different accounts in March Must have a POC survey completed for 40 different POCs in order to qualify for payout on distribution KPI Tips for Development: Communicate how Distribution is calculated for on-premise and retails accounts Provide the rules for each POC type (e.g. monthly target set by DSM, calculated through POC evaluation, draught can offset pkg, evaluations hold for three months, surveys are mandatory (without a survey results are 0) Insert rules into chart and animate so all points are revealed at once. Add instructions to slide so learner knows they need to click in order to reveal rules.

7 Distribution Calculation Rules BC & Prairies
Monthly target will be a LISTINGS target, not a % target packaged can offset draught at on-premise, and one brand SKU can offset another at retail Listing is defined as a POC whose most recent survey completed in the last 3 months indicates the SKU is available Surveys will drop off after 3 months – this is to account for vacations, sick days, training, etc. For each POC visited in the month, a survey needs to be complete. Example: Rep completes an in-store visit for 40 different accounts in March Must have a POC survey completed for 40 different POCs in order to qualify for payout on distribution KPI Tips for Development: Communicate how Distribution is calculated for on-premise and retails accounts Provide the rules for each POC type (e.g. monthly target set by DSM, calculated through POC evaluation, draught can offset pkg, evaluations hold for three months, surveys are mandatory (without a survey results are 0) Insert rules into chart and animate so all points are revealed at once. Add instructions to slide so learner knows they need to click in order to reveal rules.

8 Distribution Calculation Rules Ontario
Targets based on historical monthly distribution, as well as programming/tools timing for current year vs. last year Monthly target will be a LISTINGS target, not a % target Targets will be at the brand level, which means that package/draught can offset each other, and Combo/Agency/Regular LCBO stores can offset each other On-Premise Listing is defined as a POC that orders a SKU in the calendar month Retail Listing is defined as a POC that sells a SKU to a consumer in the calendar month The POC must have net positive volume on that SKU for the month for the listing to count (cannot return more product than what was ordered in the month) Example: if the POC orders 10 cases of Bud Light in the month, but returns 15 cases, it will not count as a distribution point Tips for Development: Communicate how Distribution is calculated for on-premise and retails accounts Provide the rules for each POC type (e.g. monthly target set by DSM, calculated through POC evaluation, draught can offset pkg, evaluations hold for three months, surveys are mandatory (without a survey results are 0) Insert rules into chart and animate so all points are revealed at once. Add instructions to slide so learner knows they need to click in order to reveal rules.

9 Distribution Calculation Rules
Reps and DSMs will only have a target and be measured on listings in called-on POCs Telesales agents will have a target based on the POCs that they call, both called-on and non called-on Monthly target will be a LISTINGS target, not a % target The POC must have net positive volume on that SKU for the month for the listing to count (cannot return more product than what was ordered in the month) Example: if the POC orders 10 cases of Bud Light in the month, but returns 15 cases, it will not count as a distribution point Tips for Development: Communicate how Distribution is calculated for on-premise and retails accounts Provide the rules for each POC type (e.g. monthly target set by DSM, calculated through POC evaluation, draught can offset pkg, evaluations hold for three months, surveys are mandatory (without a survey results are 0) Insert rules into chart and animate so all points are revealed at once. Add instructions to slide so learner knows they need to click in order to reveal rules.

10 Pop Quiz #1 Which Distribution Calculation Rule applies to each region? Click the screen to reveal the answers. A domestic Retail Listing is defined as a POC that orders a SKU in the calendar month BC & Prairies Packaged can offset draught at on-premise, and one brand SKU can offset another at retail Atlantic Tips for Development: This is a good activity to test which Distribution calculation rules apply to On-Premise or Retails accounts (or both!) Ensure to match the account type with the rules that apply to that account type. Animate each arrow to appear once the screen has been clicked Retail Listing is defined as a POC that sells a SKU to a consumer in the calendar month Ontario

11 Distribution Gap 005 Report
Purpose of this report Allows you to identify listing gaps for each of your POCs Allows you to see when the brand/sku was last available in the past 3 months Tips for Development: Communicate the purpose of the report Inform learners that they will learn more about the Gap Report in their Key Reports session Refer to slide 5 of the Distribution Presentation

12 Distribution Gap 005 Report
Brands both Package and Draught Tips for Development: Communicate the purpose of the report Inform learners that they will learn more about the Gap Report in their Key Reports session Refer to slide 5 of the Distribution Presentation POCS

13 Distribution Gap 005 Report
What does this Report Show you? This report shows you where your gaps are for every store and every GA brand How can you Leverage this Report? Look at your gap report before every call to make sure that you know what your opportunities are, make sure you are always including Distribution in your SMASH objectives Tips for Development: Use content from Distribution presentation slide 6

14 Selling Distribution to Customers
Challenges you will face: Past relationships with Labatt Corporate stores need approval from upper management Owner has a strong relationship with competition Storage/display space issues Previous experience - tried in the past and didn’t sell Tips for Development: Include why selling Distribution can be challenging and what key points to communicate Refer to content on slide 3 in Distribution Presentation

15 Selling Distribution to Customers
Key points to reference when speaking to customers: Brand Performance Media Support Category management Profitability Three Tier Pricing Industry Trends Category Trends Customer Demand Brand Heath Tips for Development: Include why selling Distribution can be challenging and what key points to communicate Refer to content on slide 3 in Distribution Presentation

16 Where possible use fact based selling
Pop Quiz #2 Scenario: Your POC is currently carrying Stella Artois 6 packs but not the 12 packs. The POC is also carrying Heineken 6 packs as well as 12 packs. What can you say, to the customer, to sell in Stella 12 packs as well to stay competitive? Click the Answer button to see the correct answer(s) Stella Artois 12 packs are currently on LTO this month Your Stella Artois 6 packs sell more than your Heineken 6 packs do, therefore if you bring in the 12 packs, they should increase your sales even more then the Heineken 12 packs are Tips for Development: Here is where you can insert an activity to test the learners knowledge. Multiple choice is a good activity or you could also use a fill in the blank activity. Make sure to use a variety of activity types to keep the learners engaged. Insert a ‘real life’ example of a TM selling Distribution to a customer. What points would the TM communicate? Note: If using this activity have the checkmarks appear next to the correct answer on a click. There can be multiple answers. You offer a lot of 12 packs, so I really think you should offer Stella Artois 12 packs. What do you think? Answer Where possible use fact based selling to gain listings

17 Beer Segments We have a number of different beer segments:
Those products produced outside of Canada, and priced higher than Premium brands. Import Specialty Those products produced in Canada, and priced higher than Premium brands. In the Atlantic Alexander Keith’s is a Premium brand. Domestic Specialty Those products produced in Canada, and sold at prices on par with Budweiser and Labatt Blue Premium Tips for Development: Introduce Beer Segments Insert Beer Segments and their descriptors. Table format might work best. Use the information from slide 7 in the Distribution Presentation Those products priced lower than Premium brands. They can be produced anywhere. Discount

18 Pop Quiz #4 Can you match each brand to their segment?
Click the screen to reveal the answers. Stella Artois Discount Budweiser Import Specialty Tips for Development: Here is an example of an activity you can use to test the learner on Beer Segment knowledge Note: If you are going to use this activity animate each arrow, so the learner will need to click on the screen four times to reveal each answer. Premium Busch Domestic Specialty Keith's IPA in BC

19 Summary Consumers can’t buy it if it isn’t available
Distribution listings are key to growing volume and share in your territory Distribution should always be a part of SMASH objectives Tips for Development: Insert 3-4 summary points based on the content provided in this self-study. Use messaging from slide 4 in Distribution Presentation to reinforce the importance of Distribution .

20 Next Steps Complete the Distribution Quiz
Reach out to your DSM/Line Manager with any questions regarding Tips for Development: Insert next steps regarding the Distribution quiz


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