"Strategic Account Management in Practice - common mistakes and critical success factors" - Το Key Account Management στην πράξη

1. Strategic Account Management in practice Common mistakes and critical success factors Bart Logghe - Philips Sales Management Forum - September 21 2007 - Athens

4. The development of Strategic Account relations Strategic intention customer Strategic intention Philips transaction cooperation partnership integration WASTE RISK Strategic Account Management

5. Today Philips is structured in two dimensions Europe Middle East & Africa North America Latin America Asia Pacific Regions (Aligned by geography) Lighting Consumer Electronics DAP Medical Systems PD’s (Aligned by products)

6. We have many Multi-PD, Multi-Region Customers              ’                

9. We have segmented our retail accounts according to global, international and local reach Partnership Performance Wal-Mart Carrefour Tesco Costco Metro DSG Best Buy Ahold Casas Bahia KESA Auchan Target Home Depot EDA Casino Circuit City Euronics Sears Expert Regional Key Account Management Global Key Account Management N D E B D E M G Local Key Account Management High High Low Low EP Amazon.com

10. The importance of Philips top 20 accounts continues to rise 32% 43% Source: Management Ventures Inc/Philips Market Intelligence

11. Philips is showing continuous and profitable growth with its top global and international accounts Results: 2006 YTD December – per PD International Key Accounts Global Key Accounts +15% +28% +16% +9% +9% -2% +15% +10%

12. Through which we have received significant recognition US CE recognized as Vendor of the year at SAM’s USA – 2005 and 2006 Carrefour Best supplier of Masse de Marge – Spain- DAP-2006 One Philips Award –Gold and employee vote for One Philips Wal*Mart Approach- 2006 Best Buy Bravo Award (CE)- 2005 Comet Awards (CE UK) - 2005 Carrefour – Best Supplier 2007 (CE) Wal*Mart – One Billion Dollar Supplier 2006

15. Common Mistake # 1 Strategic Account Management is regarded as part of the Sales Function

16. Common Mistake # 2 Strategic Account Managers have no P&L responsibility

17. Common Mistake # 3 Strategic Account Management is not discussed in the Board room

18. Common Mistake # 4 Strategic Account Management equals Relationship Management

19. Critical Success factor # 1 Strategic Account Managers need focus and dedication

20. Critical Success factor # 2 Strategic Account Plans focus on strategic alignment How to align the customer’s strategy with our strategy? Strategy comes before action planning!

21. Critical Success factor # 3 A comprehensive SAM Program is required

22. Critical Success factor # 4 Communication is integrated in the key account management system