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Reseller Development Training Fastener Asia Pacific Division Prepared by Deba Prasad April, 2009 Bangalore,India

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Topics <ul><li>Reseller’s Value </li></ul><ul><li>Ideal Resellers </li></ul><ul><li>Avery’s Value </li></ul><ul><li>Reseller’s Benefits </li></ul><ul><li>Avery’s Benefits </li></ul><ul><li>Reseller’s Concerns </li></ul><ul><li>Avery’s Concerns </li></ul><ul><li>Reseller’s commitment </li></ul><ul><li>Channel & Territory Management </li></ul><ul><li>Avery’s Supports and Commitment </li></ul><ul><li>Reseller Development </li></ul><ul><li>Current Resellers Overview </li></ul><ul><li>Priority </li></ul><ul><li>Internal Supports </li></ul>

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Reseller’s Value <ul><li>Generate incremental sales </li></ul><ul><li>Effective channel to reach our target customers </li></ul><ul><li>Effective logistics and services supports for our customers </li></ul><ul><li>Strong sales force to expand business geographically </li></ul><ul><li>High level of sales activities </li></ul><ul><li>High level of flexibility in dealing with customers </li></ul><ul><li>Strong technical and services supports for customers </li></ul><ul><li>Solution or service selling, not price fighter </li></ul>

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Ideal Resellers <ul><li>Values described in the previous page </li></ul><ul><li>Sound financial status </li></ul><ul><li>Good infrastructure </li></ul><ul><li>Abilities and willingness to expand and manage business </li></ul><ul><li>Good credibility and integrity </li></ul><ul><li>We could have over 20% of their sales and profit </li></ul><ul><li>Good customers relationship </li></ul>

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Avery Value <ul><li>Innovative products </li></ul><ul><li>Avery brand </li></ul><ul><li>Better margin </li></ul><ul><li>Sales supports </li></ul><ul><li>Marketing supports </li></ul><ul><li>Technical supports </li></ul><ul><li>Management supports </li></ul><ul><li>Good channel Management </li></ul><ul><li>Better credit terms </li></ul><ul><li>Fast delivery </li></ul>

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Reseller Benefits <ul><li>Sales and profit growth via cross selling </li></ul><ul><li>Strategic products to </li></ul><ul><ul><li>expand customer base </li></ul></ul><ul><ul><li>reduce price pressure for core products </li></ul></ul><ul><ul><li>Improve market share </li></ul></ul><ul><ul><li>increase influence to customers </li></ul></ul><ul><li>Diversify sales portfolio by penetrate to a new market </li></ul><ul><li>Improve sales management </li></ul><ul><li>Company exposure </li></ul><ul><li>Avery relationship / distributorship </li></ul><ul><li>Sales leads from Avery </li></ul><ul><li>Marketing supports from Avery </li></ul>

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Avery Benefits <ul><li>Incremental sales </li></ul><ul><li>Customer base expansion </li></ul><ul><li>Dynamic sales activities level </li></ul><ul><li>Market exposure </li></ul><ul><li>Speed to all core markets </li></ul><ul><li>Reduce working capital </li></ul><ul><li>Reduce running cost </li></ul><ul><li>Strengthen indirectly customer relationship </li></ul><ul><li>Improve flexibilities via resellers </li></ul>

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Reseller Concerns <ul><li>Margin </li></ul><ul><li>Price stability </li></ul><ul><li>Management stability </li></ul><ul><li>Avery strategy </li></ul><ul><li>Channel conflict </li></ul><ul><li>Avery Direct </li></ul><ul><li>Products reliability </li></ul><ul><li>Inventory </li></ul><ul><li>Services </li></ul><ul><li>Focus dilution </li></ul><ul><li>Cash flow </li></ul><ul><li>Warehouse </li></ul><ul><li>Logistic cost </li></ul>

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Avery Concerns <ul><li>Channel conflict across territories </li></ul><ul><li>Price war </li></ul><ul><li>Trade secret </li></ul><ul><li>Reseller’s commitment </li></ul><ul><li>Reseller sales people commitment </li></ul>

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Reseller Commitment <ul><li>Incremental sales </li></ul><ul><li>Activities level </li></ul><ul><li>Pricing </li></ul><ul><li>Territory agreement </li></ul><ul><li>No direct competitor products </li></ul><ul><li>Payment </li></ul><ul><li>Inventory </li></ul><ul><li>Sales force and territory expansion </li></ul><ul><li>Marketing and promotion </li></ul>

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Avery Supports and Commitment <ul><li>Marketing and promotion supports </li></ul><ul><ul><li>Sales leads </li></ul></ul><ul><ul><li>Close-to-market execution </li></ul></ul><ul><ul><li>Special offer for project </li></ul></ul><ul><ul><li>Demo unit </li></ul></ul><ul><li>CRM </li></ul><ul><li>Price stability </li></ul><ul><li>Margin stability </li></ul><ul><li>Channel management – selected resellers </li></ul><ul><li>High level services </li></ul><ul><ul><li>Inventory </li></ul></ul><ul><ul><li>Responsiveness </li></ul></ul><ul><ul><li>Complaint </li></ul></ul><ul><ul><li>Replacement </li></ul></ul><ul><ul><li>Machine service </li></ul></ul>

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Channel & Conflict Management <ul><li>Develop comfort zone </li></ul><ul><li>Streamline resellers when necessary </li></ul><ul><li>Effective pricing structure </li></ul><ul><li>Reseller agreement execution </li></ul>

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Reseller Development <ul><li>Key account development and reinforcement </li></ul><ul><li>New resellers prospecting </li></ul><ul><ul><li>Trade show </li></ul></ul><ul><ul><li>Web search </li></ul></ul><ul><ul><li>Garment & apparel accessories </li></ul></ul><ul><ul><li>Garment & apparel equipment </li></ul></ul>

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Priority <ul><li>Prioritize your tasks </li></ul><ul><ul><li>Evaluate your current resellers’ value </li></ul></ul><ul><ul><li>Evaluate your value </li></ul></ul><ul><ul><li>Identify improvement and action plan </li></ul></ul><ul><ul><li>Your direct sales and support </li></ul></ul><ul><ul><li>Your targets </li></ul></ul><ul><li>Time management </li></ul><ul><li>Identify time killer and solution </li></ul><ul><li>Resources </li></ul>

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Channel management <ul><li>Questions to be considered </li></ul><ul><li>Reseller </li></ul><ul><ul><li>Who are the key players in your market? </li></ul></ul><ul><ul><li>How many types of Reseller in the industry? </li></ul></ul><ul><ul><li>What types of Reseller are we currently using and their value for us? </li></ul></ul><ul><ul><li>What types of ideal reseller do we actually need? </li></ul></ul><ul><ul><li>How to “streamline” & “reinforce” our Reseller network? </li></ul></ul><ul><ul><li>Any overlapped customers with Direct Sales? </li></ul></ul><ul><ul><li>Any incremental sales are being generated by current Reseller? </li></ul></ul><ul><ul><li>Any other new Reseller could bring incremental sales for us? </li></ul></ul><ul><ul><li>Positive/Negative impact brought by each reseller? </li></ul></ul><ul><ul><li>Risk & opportunity </li></ul></ul><ul><ul><li>Resellers’ concern & interest </li></ul></ul>

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Internal Supports <ul><li>HK </li></ul><ul><ul><li>Management </li></ul></ul><ul><ul><li>Finance </li></ul></ul><ul><ul><li>Logistics </li></ul></ul><ul><ul><li>Customer service </li></ul></ul><ul><ul><li>Operation </li></ul></ul><ul><ul><li>Marketing </li></ul></ul><ul><li>USA </li></ul>

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Organizing Time <ul><li>Effective & convenient tools </li></ul><ul><li>Time killers </li></ul><ul><ul><li>Transportation </li></ul></ul><ul><ul><li>Calls too long </li></ul></ul><ul><ul><li>Too much reading </li></ul></ul><ul><ul><li>Too much paper works </li></ul></ul><ul><ul><li>Insufficient preparation </li></ul></ul><ul><ul><li>Too much meeting </li></ul></ul><ul><ul><li>Not decisive </li></ul></ul><ul><ul><li>Too many cases </li></ul></ul><ul><ul><li>Inefficient counterparts </li></ul></ul><ul><ul><li>No delegation </li></ul></ul><ul><ul><li>Dare not to say “NO” </li></ul></ul><ul><li>Solutions </li></ul><ul><ul><li>Route planning </li></ul></ul><ul><ul><li>Email before calling </li></ul></ul><ul><ul><li>Select key points / ask </li></ul></ul><ul><ul><li>Automation/delegate </li></ul></ul><ul><ul><li>Check other people’s done </li></ul></ul><ul><ul><li>Eliminate/email/report </li></ul></ul><ul><ul><li>Ask supervisor/just do it with anticipation </li></ul></ul><ul><ul><li>Prioritize/automation/delegate </li></ul></ul><ul><ul><li>Ask supervisor / request overtime </li></ul></ul><ul><ul><li>Delegation plan </li></ul></ul><ul><ul><li>Don’t over commit </li></ul></ul>

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Achieve Sales Target <ul><li>High Sales Revenue = S ales /C alls * P eople * B ackup * L ocation </li></ul><ul><li>How to increase the absolute value for S </li></ul><ul><li>How to increase the absolute value of C </li></ul><ul><li>How to make S/C close to 1 </li></ul><ul><li>How to identify and justify C </li></ul><ul><li>How to identify and justify P </li></ul><ul><li>How to identify and justify B </li></ul><ul><li>How to identify and justify L </li></ul><ul><li>What are the key factors for each of the above </li></ul>

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Quality Performance Factors <ul><li>Quality = </li></ul>Time x Preparation x Commitment x Experience Quantity

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From Funnel to Cone Y X Time Control Gaps Quality > > > > >