1. FNDI La giornata del Distributore 2015
L´organizzazione e la politica di vendita del produttore
Gian Paolo Arosio
Head of Sales Management Region Europe
Senior Vice President
Monza, 16 Ottobre 2015

2. Think global, act local Automation and Didactic
Factory and process automation
300,000 customers
Turnover (Group): EUR 2.3 billion in 2014
16,935 employees in 176 countries
• R&D budget: more than 7 % of sales
Learning company
1.5 % of sales invested in staff training
People: our no. 1 success factor

3. Customer’ choice of multiple channel based on needs
Direct Festo Sales Channels
Distributors Channels
Field Sales
Logistical orientation
Value for me?
Telephone Sales
Technical orientation
Customer
E-Business
Online (catalogue) orientation

4. Which are the sales channels of Festo?
market / customer
KAM / industry sales
Area sales
Distance sales
Online shop / eCommerce
distribution

5. Balanced management of sales channels
Effectiveness
Direct Sales of
Efficiency
Indirect Sales
Successful
Channel
Management

6. increase market share by ... increase profitability by ...
Why do we use distribution as a sales channel?
increase market share by ...
... getting market access through distributors
... meeting demands of customer to use distributors
... using distributors to multiply resource on customer site
... having official partner for customer acquisition
increase profitability by ...
... having a balanced channel management
... reducing direct cost and risk
... getting a better cost-efficient coverage in the market
... having official partner for customer acquisition

7. Full landscape of different types of distributors
deliver
advice
support
Radius
Local Store
Logistic Distributor
Inter-/ National Distributor
Technical Distributor
Service Partner
System Integrator
Representation
Non-official stockist
solve
Components
Solutions
Local
Regional/ National
Inter- national
Catalogue Distributor
Added-Value

8. Main types of distributors
Local Distributor
National Distributor
Local
National
International
Catalogue Distributor
International Distributor
digital
physical
Added
Value
Reach
logistical
strength
technical

9. What main selection criteria help in selecting distribution partners?
Local Distributor: loyalty, technical expertise
National Distributor: market position, logistical expertise, technical expertise
International Distributor: internationality, market position, logistical expertise, tech. expertise
Catalogue Distributor: market position, quality of online shop and logistics

10. When does a distributor become an official partner for Festo?
Prerequisites to become an official distributor
Signed contract based on Festo standards (code of conduct, terms and conditions)
Min. 75% of orders through Festo OLS
Provide market transparency as defined per contract (point of Sales Report)
Regular training on Festo products for internal and external sales staff
Size of stock accordingly to agreed values in contract
Joined objectives fixed in an account plan with quarterly review

11. What does an official distributor gets in return?
Benefits to be an official distributor
Participation on regular distributor sales conventions of Festo
Access to Festo's promotion material (according to marketing media overview)
Allowed to use Festo’s official partner logo
Access to distributor partner portal (download area)
Visibility on local Web-Site of Festo
Getting support by an dedicated Festo sales engineer distribution
Getting basic discount level in order to meet the market price by having a sufficient margin
Getting a numbered and signed certificate being an Official Partner of Festo

12. Distributor Business Development - Signage
As a seal of proven quality the official distributor is allowed to use Festo’s official partner logo:
This logo is an important part of effective communication of the distributor into the market with which the official partnership is announced and visible.
For Festo it is a big advantage that by using this logo the Festo Brand is immediately visible and the distributor benefits by association with our brand

13. Trend in distribution_Consolidation
Logistical path expanding reach and portfolio
Technical path expanding knowledge and added value
national Distributor with logistical strength
Local Distributor with technical strength
acquisition
expand
reach
added value
international Distributor with logistical strength
national Distributor with technical strength
Systemintegrator
Hybrid Customer Needs

14. Adapting to market trends – Current Sales Patterns
Transactional Selling
Distribution, Distance Sales,
eCom
Consultative
Selling
Added Value Selling (Complex Selling)
Sales methodology that requires a higher level of customer knowledge as well as his business processes and challenges in order to adapt your solutions to their targets long-term targets.
Key Aspects
Became an strategic partner.
Real differentiation
Ex. AMI business, High End IT solutions, etc..
Traditional selling based on advising the customer during the buying process.
Key Aspects
Win customer trust by fulfilling customer needs.
Deep understanding of purchase motivations
High product knowledge
Ex. Car selling, insurances, etc..
Key Targets
Efficiency
Organizational costs vs. business turnover
Capillarity
Be close to all your possible customers
Convenience
To the customer

15. Adapting to market trends – Development of Sales Patterns
Transactional Selling
Consultative
Selling
Added Value Selling (Complex Selling)
Trend
Web-based and indirect selling is very fast winning share to the classical “Consultative Selling”.
Ex. Internet supply us with all needed information before buying a car o getting an Insurance.
Trend:
Consultative selling organizations are losing share due to a lack of efficiency vs. transactional and higher specialization vs. Value Selling
Trend
Customers and business are getting more complex due to global competitive situation, so Added Value Selling is winning share to consultative due to better global understanding of customer business.
2015
18% of Total Turnover
2020
Target %
2015
10% of Total Turnover
2020
Target %
2015
70%
2020
40-50%