Sales Management System Optimization

CONSUMER INDUSTRY
( TOTAL CHANNEL APPROACH )

“ IMMEDIATE PLANS FOR LONG TERM RESULTS “
• Develop More Distribution Area & Convert- Business Unit
• Assistance Programs- Business Unit Development
• Building Competitive Edge – Marketing & Sales
• System Application – Sales Management System
• Skills Enhancement Program
– Merchandising Principles & BCP.

GENERAL TRADE
( Distribution Account Group )

“ DISTRIBUTION AREAS TO BUSINESS UNIT“

• 35 BY THE YEAR END.
• STRUCTURED “ BOTTOM LINE” MANAGEMENT. (CCS )
• STRENGHTENING MARKET EXPANSION DRIVE
– ALIGNMENT OF KEY ACCOUNTS MANAGEMENT
– DOWNLINE OPERATION ON MULTI-LINE APPROACH
• TAILOR – FIT BUSINESS DEVELOPMENT PROGRAMS

GENERAL TRADE
(Distribution Account Group )


• ASSISTANCE PROGRAMS- Business Unit Development
- Public Market Saturation Drive
- Wholesalers Development Program
- HRI Development Program
- Truck Subsidy Programs
- ADM Supports Programs

GENERAL TRADE

– SKU Rationalization
– Product Fit Approach – Segmentation & RPS
– Customized Trade Marketing Programs
– Short Term to Long Duration – Deals or Discount ( Sales
Catalysts )
– Reinforced Merchandising : POS/POP Materials, Displays
– Localized Programs-Channel Focused

GENERAL TRADE

– Call Card – Transaction Based
– Computerized/Systematic Routing System
– Load Management
– Stock-Weight Selling
– Market Forces Analysis
– Productivity & Efficiency : Chillers, Gondolas, Merchandisers,
Calls/Visit/Productivity Analysis, Truck Load Factor

GENERAL TRADE

• SKILLS ENHANCEMENT PROGRAMS: ( Room & OJT)
– Back To Basic Approach
– BCP ( Booking & Ex-Truck )
– Merchandising Principles & BCP
– Channel Development Programming

GENERAL TRADE
BACK TO BASICS APPROACH

COMMON TERMINOLOGIES - USED

Definition of Common (FMCG) Industry Terminologies
NUMERIC DISTRIBUTION
RATIO OF NUMBERS OF OUTLETS COVERED/SERVICED vs TOTAL CENSUS.
IT IS EXPRESS IN PERCENTAGE ( % ) OR ABSOLUTE VALUE.

NUMERIC IN-STOCK
RATIO OR MEASUREMENT OF OUTLETS WITH AVAILABLE STOCKS DURING THE TIME
OF VISIT/SERVICING vs. TOTAL CENSUS OR ROUTE LISTED ACCOUNTS.

REACH
MEASURES OR RATIO OF OUTLETS COVERED vs. TOTAL OUTLETS IN UNIVERSE.

COVERAGE
MEASURES OR RATIO OF OUTLETS COVERED/SERVICED PENETRATED vs. TOTAL CENSUS.

BRAND PENETRATION
MEASURES OR RATIO OF OUTLETS PLACED WITH BRAND(S) vs. TOTAL ROUTE CENSUS.

CALL FREQUENCY
SERVICE RATIO OF SALES MEASURE IN TERMS OF NUMBER OF VISIT OR CALLS MADE W/IN THE CYCLE.

CALL RATE
MEASURES THE LEVEL OF DISCIPLINE & EFFICIENCY IN CONDUCTING THE SALES ROUTE IN
ACCORDANCE WITH ROUTE PLAN SCHEDULE.
ie. # of Sked Calls actually made in accordance w/ the Route during the period (cycle) versus No. of Sked Calls
in the Route for the Period ( Cycle ).

HIT RATE
MEASURES THE RATIO OF SUCCESSFUL SALES CALLS VERSUS ALL THE CALLS MADE.
ie… No. of successful Sales Call during the Period ( Cycle ) versus No. of Sales Calls actually made for the Period.


SALES FORCE MANAGEMENT SYSTEM
MANAGEMENT OF SALES BASED ON SEVERAL KPI'S RATHER THAN SALES TARGET DRIVE AS
IN SALES MANAGEMENT SYSTEM

STOCK COVER
QUANTITY OR LEVEL OF STOCKS IN TERMS OF WEEKS OR MONTHS VIS-A VIS OFF TAKE
AND INVENTORY LEVEL

STOCK WEIGHT
QUANTITY IN ABSOLUTE VALUE , SIMILAR OR RELATIVE TO OFF TAKE.

INVENTORY CONTROL OBJECTIVE ( ICO )
ADEQUATE STOCKING SYSTEM, SKEWING BASED ON OFFTAKE PER SKU RELATIVE TO SERVICING
MODE JUST IN TIME OR BASED ON SAFETY STOCKS LEVEL AS FOLLOWED BY OUTLETS.

ON - SHELF DISPLAY
BRAND(S) OR PRODUCTS ON FREE ENTREPRISE DISPLAYED ON REGULAR SHELF IN THE POINT OF
OF PURCHASE DISPLAY PROFITABILITY MERCHANDISING DICTATES THE SPACE, SIZE , FACINGS,
SHARE OF SHELF, POS - POINT OF SALES ( CHANNELS OR STORES ), POP-POINT OF PURCHASE
(SELLING AREA)

OFF- SHELF DISPLAY
BRANDS OR PRODUCTS ON EXCLUSIVE BASIS DISPLAYED IN ANOTHER STRATEGIC LOCATION USING
MODULAR OR GONDOLAS. IT CAN BE AT THE END OF SHELF AS END-GONDOLA OR FRONT OF SHELF
AS IN FRONT GONDOLAOR SPECIAL LOCATION AS IN ISLAND OR IN BETWEEN SHELVES OR ALONG AISLE.
DISPLAY WITH PAY OR RENTALS


CROSS MERCHANDISING
POSITIONING STRATEGY IN DISPLAYING ANY BRANDS OR PRODUCTS OUTSIDE OF
REGULAR SHELF-AREA AS A NICHE OUT OF CATEGORY MANAGEMENT
WHERE BRANDS CAN BE POSITIONED TO MATCH OTHER CATEGORY

FORWARD STOCKS
LEVEL OF DISPLAYS IN THE SELLING AREA(S) PLUS VOLUME DISPLAYED IN OTHER MODE OR AREAS.
IN THE STORE LEVEL AS IN CATMAN- FORWARD STOCKS SHALL BE EQUAL TO % SHARE IN MARKET.

CUT-CASE DISPLAYS
DISPLAYS USUALLY NOT IN THE REGULAR SHELVES AND CONSIDERED AS OFF AND ON HARD FILE
IN CASES AIM TO CALL TO ACTION VISIBILITY CAMPAIGN, CREATE IMPULSIVE & MASSIVE APPEARANCE.
TEMPORARY BASIS

CATEGORY MANAGEMENT
A MERCHANDISING CAMPAIGN BASED ON ; PRODUCT/BRAND CATEGORY, BRANDING, MARKET SHARE,
OFF-TAKE LOCAL OR IMPORTED OR QUALITY, USAGE, PACKAGING, (DPM) DISPLAY PROFITABILITY MERCH.
AND OTHERS

SPACE MANAGEMENT
STRATEGY TO MEET CONSUMER DEMAND FOR PRODUCTS BY HAVING THE RIGHT RANGE AND
STOCKS AVAILABLE FOR PURCHASE. FITTING THE RIGHT RANGE OF PRODUCTS INTO FIXED SPACE-
THE STORE, THE CATEGORY.

NESTLÉ WATERS PHILIPPINES, INC.

BACK TO BASICS

Chapter 1: Definition of Selling

Chapter 2: Definition of Selling Skills

Chapter 3: The Role of a Salesman

Chapter 4: Sales Force
Management Cycle
Chapter 5: Daily Routine

Chapter 6: Sales Call Procedure

DEFINITION OF SELLING
SELLING
Refers to persuading people to
make a favorable decision
relating to a product or a
service, that is perceived to be
profitable to both parties

SKILLS
SELLING SKILLS
Selling skills refer to the
ABILITIES involved in THE
PROCESS OF HELPING THE
CUSTOMER BUY as effective and
successful as possible for both
you and the customer.

THE ROLE OF THE
SALESMAN
The Ultimate Role of a
Salesman is to
INFLUENCE customers’
decision-making, thus
delivering the Company’s
Business Objectives.

SALES FORCE
Route Plan MANAGEMENT CYCLE
Call Cards
Category
Driven Channel
Sales Call Focused Sales
Management

Pro-Active Planning

Call Performance
Sales Performance
Sales Order Key
Reports
Account Offtake
Distribution Focus Reporting
(Management By Exception)

Service Performance Sales Order Processing Call Card
Reports Call Cards Data Entry

DAILY ROUTINE
SALES CALL
PROCEDURE

DAILY ROUTINE
Follow these steps in your daily routine
and the activities that take place.
START OF THE DAY

PREPARATION
TRADE COVERAGE
CLOSING OF THE DAY

** CYCLE PLANNING
** QUARTERLY PLANNING

(** A “MUST” ACTIVITY FOR EACH GROUP

END OF THE DAY

CLOSING OF THE DAY
• Complete Reports
• Reconcile Coll. / Deposits
• Review Performance
• Daily Plan for Next Day

TRADE COVERAGE
CYCLE PLANNING • First Call Coverage

QUARTERLY PLAN • Sales Call Management
• Store Check
PREPARATION
• Conduct Competitive Act
• Review Work Plans / Load for
END OF THE DAY
the Day
• Check Vehicle
START OF THE DAY
• Check Sales Tools
• Submit /Receive Call Cards
Invoice / Collections

SALES CALL PROCEDURE
1. PRE-CALL PLANNING
It is a MUST that Call Cards should be used at all times so you can check the ff: data
P Products you sold during your last call
(Invoices, Orders, Delivery)
R Recall what transpired during your last
conversation and/or transaction
O Opportunities to convince the customer to
carry additional products
B Best time to call the particular customer /
outlet so your call will not be wasted
I Initiate in making a sales plan to make
your presentation more organized
N New ideas should be explored to get the
customer’s interest and increase business
G Gather all selling, merchandising,
equipment, resale materials needed for the call

2. GREET CUSTOMER
Consider the following guidelines for this step :
G GREET customers warmly and with a
A firm handshake indicates your
enthusiasm.
U ULTIMATE motive is to get their attention
and interest on what you’re about to give
them. Note, don’t over-react. It should fit your
personality.
E ELIMINATE negative comments or
questions like “How’s Business?”; create a
positive atmosphere that’s appealing to
them.
S STATE your name, the co., and the products if
you’re new. If you’re familiar already give them
the Respect they deserved.
T TELL customer with enthusiasm that you are bringing a
very profitable business and great news to them.

3. STORE CHECK
The Store Check is essentially linked to inventory count/check. There will always
be opportunities to move products to the display area.
S SIZE & SKUs of products carried.
Distribution of brands and size must align
with the PLAN-O-GRAM
P PRICING Structure. Always check if your
products are properly priced. SRO must be
followed at all times. Also, check if your price
is competitive against leading brand.

E EXISITING shelf displays. Brands carried
must have a fair share of shelf space and
displayed as plan-o-grammed.
E EXISTING Off-Shelf Displays. Always
suggest enough buffer stocks to replenish shelf
displays. Compute for display turn-over
according to economy of scale.
D DISPLAY Opportunities. Always look for new display
areas/ space to further improve visibility & increase
awareness product off-take.

4. INVENTORY COUNT/CHECK
This is a vital step in every call. This is where you finalize your volume plan while
considering the following factors :

STOCK MOVEMENT
SPECIAL PROMOTIONAL EVENT
STOCKS-ON-HAND
STOCK EXPIRY DATES / F I F O
Your responsibilities vis-à-vis the importance of this step.

TO THE OUTLET- provide them with the service that will
enable them to save time in writing an order in line with their
requirements. To advice them on stock mgt., I.e. FIFO,
infestations, flooding, leaks & others to prevent damage / bad
stocks.
TO THE COMPANY- provide information about outlet’s stock
position level and offtake, balance promo packs, stocking level of
competitors and their activities in the store.

5. PLAN ORDER
What you need for an effective immediate,
one time planning
A ll you need is a review of your c us tomer call
c ards and all data needed for an effec tive,
immediate, one time planning are there.

A lways us e the C all C ards on
every c all,not at home after work.

Fill-up all pertinent data required in
acc omplis hing your daily call c ards .

6. PERSUASIVE SELLING PRESENTATION
5 Steps of Persuasive Selling Presentation:

Step 1. Summarize the Situation
Understanding the Outlet’s & Company’s Situation

Step 2. State the Idea. Give Practical Suggestions.

Step 3. Explain How It Works. Make the outlet
understand your suggestion.

Step 4. Reinforce Key Benefits. Make the outlet
realize the features and benefits.

Step 5. Close. Make the outlet easy to agree with your plan.

6.1. PERSUASIVE SELLING
PRESENTATION
What you need for an effective Presentation
UNDERSTANDING - the outlet’s & co’s situation & make them understand your
suggestion
PLANNED ORDER- make the dealer realize the benefits using a home
made / company supplied organizer
KNOWLEDGE- of the customer’s needs. Should have a S.M.A.R.T.
(Specific, Measurable Attainable, Realistic, Time-
bounded) suggestions
ANSWER- to possible questions for more information & to clarify issues
for better understanding & approval.
ABILITY TO:
A- Arouse their attention
I- Get their INTEREST
D- Stimulate DESIRE to buy and sell our products
A- make them ACT positively on your planned order
PERSISTENCY- the more persuasive you are, the more sales and
distribution you will make

CONFIDENCE/ FLUENCY- the greater amount of confidence and fluency
you have, the more convincing your presentation will be.

PRESENTATION
EFFECTIVE CLOSING TECHNIQUE- asking for customer’s approval on your
planned order. Present your sales plan/order with complete qty., pricing &
notations for their confirmation.
METHODS OF CLOSING:

ALTERNATIVE CLOSE- gives the buyer a choice of 2 positive situation, either one
should give you the order ex. “Let’s book 20 cases or better 30
cases so you don’t ran out-of-stocks”.
SIMILAR SITUATION CLOSE- refers to previous purchases made by the
customer on a particular product or situation ex. “Just like last
wk. You ordered 20 cases, this time let’s increase it to 30 cases to
avoid OOS.”
THIRD PARTY REFERENCE- refers to the other customer’s orders ex. “ All the
stores in this area have made an advance booking. Let’s place one now.”

OBJECTION CLOSE- after overcoming an objection, close the sale.

DROP DEAD CLOSE- bluff them that you placed their orders already and to be
shipped on a particular date ex. “ I took the liberty of placing your
order due to urgency of the situation.”

PRESENTATION
WHEN TO CLOSE:
CLOSE AS OFTEN AS POSSIBLE
WHENEVER YOU THINK THEY ARE READY TO BUY
AFTER STRONG POINTS IN YOUR PRESENTATION
AT THE END OF YOUR PRESENTATION

HANDLING OBJECTIONS:

SALES OBJECTIONS - these are not necessarily stumbling blocks but are signs
of interest. The key to handling objections successfully is,

KNOWLEDGE - of your products, of your promotional
opportunity, of the customer’s profile & personality , of yourself
(strengths / weaknesses)
*** COMMON ANSWERS TO OBJECTIONS CAN BE DERIVED FROM HIGLIGHTING THE
BENEFITS OR THE TESTIMONIALS OR YOUR NEXT COVERAGE

7. RECORDS & REPORTS
Accomplish the following records & reports during the call :

SALES ORDER FORM

CUSTOMER CALL CARDS

DAILY FIELD REPORTS

OTHERS AS NEEDED

When you summarize your sales transactions, make sure that the leader
understands RFM’s terms and let the dealer sign the sales oder / issue a PO
to confirm their order.

8. MERCHANDISING ACTIVITY
What is Merchandising?
It is the art of presenting RFM Branded Foods products in a
creative & innovative way to:
> Persuade the Outlets to purchase
> Attract the consumers to buy

PRIORITIES IN MERCHANDISING

RANGE - R
SPACE - S
VISIBILITY - V
PROMOTION - P

8.1. MERCHANDISING ACTIVITY
ACTIVITIES IN MERCHANDISING
DISPLAY - Characteristics of a good display
- it is in prominent or high traffic location
- it is attractive enough to command attention
- it includes a price & a reason to buy
SHELF SPACE & POSITION
- ensure that each of our brands, varieties & sizes carried by the outlet
has a reserved space on the shelf in a position where it is visible to consumer,
customer and helpers alike.
USE OF DISPLAY MATERIALS - 3 TYPES
- Promotional Materials
- Brand Materials
- Standard Materials
IMMEDIATE DISPLAY & RESALE WORK ON PROMOTED PACKS
- ensure that the price of the product displayed is clearly conveyed to the
consumer and the trade

8.2. MERCHANDISING ACTIVITY
GUIDES TO EFFICIENT MERCHANDISING
At every visit, check the shelf displays.
Always try to sell extra facing / additional SKU
Plan merchandising displays carefully
Remember the merchandising V I S A
V - Visibility
I - Impact
S - Stability
A - Appeal
Eye level is BUY Level
Make waiting time productive - MERCHANDISE
Act as merchandising consultants to our customers
Check stock positions so you can plan properly according to stock depth of your
display as well as warehouse / stock room buffer stocking.

9. DELIVERY & PAYMENT
It is of utmost importance that you always get the payments
before leaving the call. As much as possible, do not accept
personal checks unless you are allowed to extend term
payments and knew the customer for a long time.

REMEMBER!

“ A SALE IS NOT A SALE
unless COLLECTED”

10. TRADE RELATIONS
How to develop Goodwill in the trade :

Be HONEST, not just dealing with the money & goods but also in statements
and claims.

Be FAIR. Give all customers in similar circumstances, similar
considerations and treatments.

Show genuine concern for the outlet’s business by regular coverage, responsible
advice on pricing, proper handling of stocks and merchandising support in
proportion to his volume potential and by not overloading nor underselling.

TELL CUSTOMER NEXT COVERAGE.

• In this step, tell customer your next coverage before you leave the
call. This will enable the dealer to prepare a budget for purchasing of
stocks on your next call according to product turn-over.

11. POST-CALL ANALYSIS
As you move on the next call, analyze the outcome of the recently concluded call.
Ask yourself the following questions:
HOW AM I DOING?
WHY?

WHAT AM I GOING TO DO ABOUT IT?
If you were successful, determine the approach responsible for the success so you
can use it in other calls. Conversely, try to discover the reason for failure so you can
avoid it in the next call.

Take time to determine how best you can overcome your weakness and improve
your strong points; apply the lesson learned from each call to succeeding calls.

The selling cycle now begins again. Repeat the Sales Call Procedure for
your next call.

“The THING that COUNTS is not what we KNOW but
the ABILITY to use what we KNOW”

SALES CALL logical & progressive sequence :
These 11 steps must be followed in
PROCEDURE

POST-CALL GREET
ANALYSIS PRE-CALL CUSTOMER
PLANNING
DELIVERY & STORE CHECK
PAYMENT

INVENTORY COUNT/CHECK
TRADE RELATIONS

MERCHANDISING
ACTIVITY
PERSUASIVE SELLING
PRESENTATION PLAN ORDER
RECORDS &
REPORTS

These steps must be followed in logical and progressive sequence :
2. GREET CUSTOMER
3. STORE CHECK
4. INVENTORY COUNT / CHECK
5. PLAN ORDER

9. DELIVERY & PAYMENT
10. TRADE RELATIONS


THE END

VIC RAMIL H. RAMIL


BASIC CALL PROCEDURES FOR BOOKING ACCOUNTS


SELLING
Refers to persuading people to
make a favorable decision
relating to a product or a
service, that is perceived to be
profitable to both parties

SALES FORCE MANAGEMENT
Route Plan
Call Cards
CYCLE
Category
Driven Channel
Sales Call Focused Sales
Management

Pro-Active Planning

Call Performance
Sales Performance
Sales Order Key
Reports
Account Offtake
Distribution Focus Reporting
(Management By Exception)

Service Performance Sales Order Processing Call Card
Reports Call Cards Data Entry

DAILY ROUTINE
START OF THE DAY
PREPARATION
TRADE COVERAGE
CLOSING OF THE DAY

** CYCLE PLANNING
** QUARTERLY PLANNING

(** A “MUST” ACTIVITY FOR EACH GROUP)

END OF THE DAY

DAILY CLOSING OF THE DAY
• Complete Reports

ROUTINE • Reconcile Coll. / Deposits
•Submit /Receive Call Cards
Invoice/Collections
• Review Performance
• Daily Plan for Next Day TRADE COVERAGE

CYCLE PLANNING • First Call Coverage
• Sales Call Management
QUARTERLY PLAN
• Store Check
PREPARATION
• Conduct Competitive
END OF THE DAY • Review Work Plans / Load
Activity
for the day
•Review Objectives(Sales,
START OF THE DAY Distribution, Merchandising)
•Check Vehicle
•Check Sales Tools

3. STORE CHECK
The Store Check is essentially linked to inventory count/check. There will always
be opportunities to move products to the display area.
S SIZE & SKUs of products carried.
Distribution of brands and size must align
with the PLAN-O-GRAM
P PRICING Structure. Always check if your
products are properly priced. SRP must be
followed at all times. Also, check if your price
is competitive against leading brand.

E EXISITING shelf displays. Brands carried
must have a fair share of shelf space and
displayed as plan-o-grammed.
E EXISTING Off-Shelf Displays. Always
suggest enough buffer stocks to replenish shelf
displays. Compute for display turn-over
according to economy of scale.
D DISPLAY Opportunities. Always look for new display
areas/ space to further improve visibility & increase
awareness product off-take.

4. WAREHOUSE CHECK
This is a vital step in every call. This is where you finalize your volume plan while
considering the following factors :

STOCK MOVEMENT
SPECIAL PROMOTIONAL EVENT
STOCKS-ON-HAND
STOCK EXPIRY DATES / F I F O
Your responsibilities vis-à-vis the importance of this step.

TO THE OUTLET- provide them with the service that will
enable them to save time in writing an order in line with their
requirements. To advice them on stock mgt., i.e. FIFO,
infestations, flooding, leaks & others to prevent damage / bad
stocks.
TO THE COMPANY- provide information about outlet’s stock
position level and offtake, balance promo packs, stocking level of
competitors and their activities in the store.

5. PLAN ORDER
What you need for an effective immediate,
one time planning
A ll you need is a review of your c us tomer call
c ards and all data needed for an effec tive,
immediate, one time planning are there.

A lways us e the C all C ards on
every c all,not at home after work.

Fill-up all pertinent data required in
acc omplis hing your daily call c ards .

Us e S .O. Form with S ugges ted Order per S KU bas ed
on the s tore’s requirement.

6. COLLECTION
It is utmos t importanc e that you always follow-
up collec tion s tatus of your res pec tive outlets .
A lways c heck s tatus and make regular follow-
ups to fac ilitate immediate proc es s ing of
invoices . If problem/s exis ts , work your
way/initiate proper reconc iliation to avoid cas es
of “ HOLD ORDE RS ” .

Remember:

“ A S A LE IS NOT A S A LE
UNLE S S C OLLE C TE D”

7. PERSUASIVE SELLING
PRESENTATION
Review Call Objectives (Sales, Promotions,Merchandising,Pricing)
Talk to the decision maker

Present the following using the Persuasive
Selling Format
• Promotions, New Products, Sales Orders
Merchandising, Price Change and other pertinent
business
• Tell customer what he needs
• Highlight on the benefits
• Close the sale whenever possible

5 Steps of Persuasive Selling Presentation:
Step 1. Summarize the Situation
Understanding the Outlet’s & Company’s Situation
Step 2. State the Idea.
Give Practical Suggestions.
Step 3. Explain How It Works.
Make the outlet understand your suggestion.

Step 4. Reinforce Key Benefits.
Make the outlet realize the features and benefits.

Step 5. Close.
Make the outlet easy to agree with your plan.

Persuasive Sales
Presentation
S ale s Id e a: You r wife wants to vis it h e r p are nts tonigh t.
A m ovie you wante d to s e e is on its las t d ay in th e
th e atre . H ow d o you p e rs u ad e h e r to watch th e m ovie
Step 1: “I understand you want to see your parents tonight. But the
movie we’ve been planning to see is on its last night in the theatre.”
Step 2: “Why don’t we invite your parents to watch the movie
with us”.
Step 3: “You can tell them not to cook dinner for us. We’ll pick
them up at 5:30 p.m., watch the movie, then have dinner at
8:00 p.m. at the nearby restaurant.”
Sales 4:” This way we get to see your parents and we also get
to watch the movie! As for your parents they will surely be
delighted”
Step 5: “Why don’t you call them up to inform
them, here’s the phone.”

Persuasive Sales
Presentation
S ale s Id e a: S e ll in a ne w p rod u ct to a ne w cu s tom e r

Step 1: “Due to the consumer demand for such a product, our company
has researched and developed this new product.”
Step 2: “This product will give you more business”
Step 3: “For your initial purchase you will be given an off-
invoice 10% price discount. The display material will be
delivered to your store at the same time with the stocks...”
Sales 4:” Your customer will be excited with this introductory
promotion….…Product advertisement will boost demand…..”

Step 5: “You can place your order now!”

UNDERSTANDING - the outlet’s & co’s situation & make them understand your
suggestion
PLANNED ORDER- make the dealer realize the benefits using a home
made / company supplied organizer
KNOWLEDGE- of the customer’s needs. Should have a S.M.A.R.T.
(Specific, Measurable Attainable, Realistic, Time-
bounded) suggestions
ANSWER- to possible questions for more information & to clarify issues
for better understanding & approval.
ABILITY TO:
A- Arouse their attention
I- Get their INTEREST
D- Stimulate DESIRE to buy and sell our products
A- make them ACT positively on your planned order
PERSISTENCY- the more persuasive you are, the more sales and
distribution you will make

CONFIDENCE/ FLUENCY- the greater amount of confidence and fluency
you have, the more convincing your presentation will be.

7.PERSUASIVE SELLING PRESENTATION
EFFECTIVE CLOSING TECHNIQUE- asking for customer’s approval on your
planned order. Present your sales plan/order with complete qty., pricing &
notations for their confirmation.
METHODS OF CLOSING:

ALTERNATIVE CLOSE- gives the buyer a choice of 2 positive situation, either one
should give you the order ex. “Let’s book 20 cases or better 30
cases so you don’t ran out-of-stocks”.
SIMILAR SITUATION CLOSE- refers to previous purchases made by the
customer on a particular product or situation ex. “Just like last
wk. You ordered 20 cases, this time let’s increase it to 30 cases to
avoid OOS.”
THIRD PARTY REFERENCE- refers to the other customer’s orders ex. “ All the
stores in this area have made an advance booking. Let’s place one now.”

OBJECTION CLOSE- after overcoming an objection, close the sale.

DROP DEAD CLOSE- bluff them that you placed their orders already and to be
shipped on a particular date ex. “ I took the liberty of placing your
order due to urgency of the situation.”

WHEN TO CLOSE:
CLOSE AS OFTEN AS POSSIBLE
WHENEVER YOU THINK THEY ARE READY TO BUY
AFTER STRONG POINTS IN YOUR PRESENTATION
AT THE END OF YOUR PRESENTATION

HANDLING OBJECTIONS:

SALES OBJECTIONS - these are not necessarily stumbling blocks but are signs
of interest. The key to handling objections successfully is,

KNOWLEDGE - of your products, of your promotional
opportunity, of the customer’s profile & personality , of yourself
(strengths / weaknesses)
*** COMMON ANSWERS TO OBJECTIONS CAN BE DERIVED FROM HIGLIGHTING THE
BENEFITS OR THE TESTIMONIALS OR YOUR NEXT COVERAGE

Accomplish the following records & reports during the call :

SALES ORDER FORM

CUSTOMER CALL CARDS

DAILY FIELD REPORTS

OTHERS AS NEEDED

When you summarize your sales transactions, make sure that the leader
understands Distributor’s terms and let the dealer sign the sales order /
issue a PO to confirm their order.

9. MERCHANDISING
ACTIVITY
It is the art of presenting RFM Branded Foods products in a
creative & innovative way to:
Persuade the Outlets to purchase
Attract the consumers to buy

PRIORITIES IN MERCHANDISING

RANGE - R
SPACE - S
VISIBILITY - V
PROMOTION - P

9. MERCHANDISING
ACTIVITY
ACTIVITIES IN MERCHANDISING
DISPLAY - Characteristics of a good display
- it is in prominent or high traffic location
- it is attractive enough to command attention
- it includes a price & a reason to buy
SHELF SPACE & POSITION
- ensure that each of our brands, varieties & sizes carried by the outlet
has a reserved space on the shelf in a position where it is visible to consumer,
customer and helpers alike.
USE OF DISPLAY MATERIALS - 3 TYPES
- Promotional Materials
- Brand Materials
- Standard Materials
IMMEDIATE DISPLAY & RESALE WORK ON PROMOTED PACKS
- ensure that the price of the product displayed is clearly conveyed to the
consumer and the trade

9. MERCHANDISING
ACTIVITY
GUIDES TO EFFICIENT MERCHANDISING
At every visit, check the shelf displays.
Always try to sell extra facing / additional SKU
Plan merchandising displays carefully
Remember the merchandising V I S A
V - Visibility
I - Impact
S - Stability
A - Appeal
Eye level is BUY Level
Make waiting time productive - MERCHANDISE
Act as merchandising consultants to our customers
Check stock positions so you can plan properly according to stock depth of your
display as well as warehouse / stock room buffer stocking.

10. TRADE
RELATIONS
How to develop Goodwill in the trade :
Be HONEST, not just dealing with the money & goods but also in statements
and claims.

Be FAIR. Give all customers in similar circumstances, similar
considerations and treatments.

Show genuine concern for the outlet’s business by regular coverage, responsible
advice on pricing, proper handling of stocks and merchandising support in
proportion to his volume potential and by not overloading nor underselling.

TELL CUSTOMER NEXT COVERAGE.

• In this step, tell customer your next coverage before you leave the
call. This will enable the dealer to prepare a budget for purchasing of
stocks on your next call according to product turn-over.

SALES CALL logical & progressive sequence :
These 11 steps must be followed in
PROCEDURE
POST-CALL GREET
ANALYSIS CUSTOMER
PRE-CALL
PLANNING STORE CHECK

TRADE RELATIONS

WAREHOUSE CHECK

MERCHANDISING ACTIVITY

RECORDS &
REPORTS PRESENTATION COLLECTION PLAN ORDER

These steps must be followed in logical and progressive sequence :
2. GREET CUSTOMER
3. STORE CHECK
4. WAREHOUSE CHECK
5. PLAN ORDER
6. COLLECTION
7. PRESENTATION

10. TRADE RELATIONS

GENERAL MODEL
MODEL-CHANNEL DEVELOPMENT
% Class % Vol CHARACTERISTICS-UNIQUENESSMODE OF POSITIOING
Target Segment: Segments Contibution MARKET IMPORTANCE PLACEMENT
Strategically Located Matching & Flanking
High End Free Enterprise Channels Display-Off &On Shelves
ABC-LowerC 2% 37% Product Exposure-CatMan ICO Driven-DSA
S/mkets Impulsive Market-Battle Field Full Range-Massive
Upscale 1% 5% Specialty Outlets. Synergy Approach
Captive Market HB/PC/DS Captive Market Full Range-Massive
Retail to Wholesale Matching-Product Fit
Low End CDE 10% 28% Huge in population Pricing Srat/VFM
Grocery Market for CDE Promotional Placement
CDE Dynamic Market-Clustering Placement-Image Bldg.
Mixed/Dev'tal CVS 85% 26% High Potential vs Census Right SKU to Right Outlet
PMS/WS Revenue Driven Pricing Consideration
On Premise INSTL 2% 4% Initial Trials & Awareness - UAI Single to Group Usage
Hierarchy of Importance

PRODUCT POSITIONING

Strategy Concept and Principles:
• This aims to give consumer wide range of selection from all
available products or brands; giving consumers same
products or brands w/ varying size, price & variants (PLS)

• This is normally done by arranging or showcasing our
brands to occupy a clear, distinctive, competitive and
desirable place in the point of sale vs. Competition

• Serving all lifestyles and walks of life.

• Our Job is to develop a distinct competitive edge and create
awareness in the mind of consumers. Internally, it also gives
us opportunity to protect our turf & fast moving as catalyst for
slow moving.

• Creating a barrier for a new entrants in the market.

PRODUCT POSITIONING

Target Segment: Channel Home Care Confectionery Alcoholic Beverages Snack Choco Milk
Type H&B Beverages NAB Foods Drinks IFFO
High End S/Market Push & Pull Push & Pull Cross merchCross Merch
ABC-LowerC Class A Full Range Full Range Full Range Full Range Full Range Full Range Full Range
S/mkets Class B Full Range Full Range Full Range Full Range Full Range Full Range Full Range
AB-Upper C HB/PC Full Range Optional Optional Product Fit Product Fit Optional
Captive Market HB/PC/DS DS/Dept Str Full Range Optional OSPS Optional Optional Optional
Grocery Selective/FM Full Range Selective/FM Full Range Full Range Full Range Full Range
Low End CDE Mini Mart Selective/FM Full Range Selective/FM Sales Mix- Full Range Product Fit Full Range
Grocery Product Fit
CDE Conv'nce Str Selective/FM Full Range Full Range Sales Mix- Full Range Full Range Full Range
Mixed/Dev'tal CVS/PM Public Mkts Selective/FM Full Range-Sel. FM Size/Packs Popular Size Full Range Product Fit Full Range
WS/Inst'l Wsaler Selective/FM Selective/FM FM Size/Packs Full Range FM Size/Packs Fit Product Fit
Product
On Premise HORECA Optional FM Size/Packs Full Range Product Fit FM Size/Packs Fit Product Fit
Product

PROMOTION STRATEGY

Strategy Concept:
• Aim to drive Brand Equity Building-Create Brand Awareness,
top of mind consistent to selling activities & programs.
Develop brand switching.

• Supports like category cluster or promotional with premiums
as in pack banding, bundling, free goods, promo contest will
increase mileage and in line with value for money.

• Price-off is situational as it may not result to brand switching
but more on forward buying from current users. In store
programs, I.e. merchandising contest, off-shelf appearance,
store in house sell-out programs are temporary need
continuity.

• Strategy must develop and result to brand pull, product
preference and differentiation.

PROMOTION STRATEGY

Target Segment: Channel Home Care Confectionery Alcoholic Beverages Snack Choco Milk
Type H&B Beverages NAB Foods Drinks IFFO
High End S/Market Tactical Sell-In to Sell-Out Tactical Tactical Tactical Tactical Tactical
ABC-LowerC Class A Promo Girls Price Off Price Off Display Contest Price off Sell-In to Sell-Out Merch Contest
S/mkets Class B Promo Girls Bundling Promo Contest Lote Packing Bundling Bundling
AB-Upper C HB/PC Pack Banding Bundling Tactical Tactical Tactical Tactical
Captive Market HB/PC/DS DS/Dept Str Promo Contest Trade Disct Trade Disct
Grocery Lote Packing Sell-In to Sell-Out Sell-In to Sell-Out Sell-In to Sell-Out Lote Packing Price Off Price Off
Low End CDE Mini Mart Lote Packing Sell-In to Sell-Out Price Off Price Off In-Pack Band Bundling Bundling
Grocery Price Off Volume Incentive Promo Contest Bundling
CDE Conv'nce Str Bundling Bundling Bundling Lote Packing Bundling Bundling Bundling
Mixed/Dev'tal CVS/PM Public Mkts Lote Packing Volume Incentive Bundling Lote Packing Price Off Bundling Price Off
WS/Inst'l Wsaler Vol Incentive Volume Incentive Bundling Volume Incentive Lote Packing Bundling Volume Incentive
On Premise Horeca Price Off Price Off Price Off Price Off Price off Price Off Price Off

BEST FIT PROGRAMS
Channel Targeted Scope Durn. Objectives Best Fit Program Key Performance Index
Type Segments Expected Results
A. Suprmrkets Create Mass Appeal Price -Off
Upper Trade ABC Top Accts USL Increase off-take. Sell-out > bundling Sales Volume before vs post prog
1-mo Move out Inventory In-Case/Pack banding % Growth vs prior period.
Top Accts Incease stock depth/weight Volume discount Stock cover is 2X call freq.
Trade Dealer Incentive Shelf space inc by 20%.
Product Positioning- Tactical - Programs % Brand Penetration.
New & Existing Brands -Sampling, Push Girls Brand availability
1-Cyc Complete & Full Range Trade Dealer Incentive Sku listing indeces.
to Placement Trade Discount Ratio of total sku vs sku listed.
1QTR Special Credit Term
Salesforce Incentive
Brand Equity Bldg / Brand Image Merchandising Contest Massive on-shelf displays.
Develop top of mind awareness Disers Incentives Creation of additonal displays
Brand Pull Consumer Rebates Cross Merchandising.
Brand Switching Banding/Price Off/Rebates Off Take increase
Create Mass Appeal Sampling &Push Girls
Induce trials Promo Contest-Raffle
Lower Trade CDE Selective Long Outlet's Development-Support Wholesale Program Increase in wholesale volume
Durn in Wholesale. Peddlers Incentive sales by 50%
Bridging the Gaps-Dist'n & Pene Lote Packing Wider reach & penetration
Selective Increase off-take. Sell-out > bundling Sales Volume before vs post
Move out Inventory In-Case/Pack banding program % Growth vs prior pd.
Create Mass Appeal/TMAware Price -Off/consumer rebate Sales Volume before vs post
Move-out of Inventory Sell-out > bundling program % Growth vs prior pd.
Brand Equity Bldg / Brand Image Merchandising Contest Massive on-shelf displays.
Develop top of mind awareness Disers Incentives Creation of additonal displays
Brand Pull Consumer Rebates Cross Merchandising.
Cross Merchandising.

BEST FIT PROGRAMS


B. Specialty Stores ABCDE All 1-QTR Brand Penetration Tactical Display Rental % Brand Penetration vs prior pd.
Health & Beauty Teens/ Brand Positioning Modular Display Forward Stock higher than % MS.
Personal Care Yuppies Outlet's Push Drive TDI or Discount Volume Growth
All SKU Listing for New Categories Intro Discount Listed Brand/categories/sku's
Captive Market SKU Listing for Existing Sampling /In-store
Create Traffic-Awareness Tactical Programs
Salesforce Incentive
All Short Brand Equity Bldg Store's Staff Support Top of awareness
Term Brand Pull Consumer Rebates Consumers' Response/Fdbcks
All 1-Mo Brand Switching Banding/Price Off/Rebates Off Take increase
Sampling &Push Girls Sales Improvement by __%
Flyers Prog/ POSM's
Induce trials Promo Contest-Raffle

BEST FIT PROGRAMS
C.PopuLar Channel Selective 1-QTR Brand Penetration Salesforce Incentive % Variance in Brand pene vs prior
Grocery Type CDE Right SKU to Right Outlets Value for Money period.
Low-End Segment Curious
Popular Channel Buyers Increase Stock depth Volume Incentive 80:20 ratio for Fast to slow moving
Trials Lote Packing
D. Developmental Transient Increase Distribution Depth / Trade Dealer Incentive % Variance in selling outlets vs.
Trade Channel Yuppies Reach Alternative Dist'n Mode non-selling vs prior period.

Convenience Stores Switchers Selective Long Influence outlet's to push Wholesale/Peddlers Inctive % Growth in sales vs prior period.
Public Market Stalls Durn Lote Packing
Wholesalers Massive Display/Impulsive Tactical disers deployment Display-Power Block
appearance.

On Premise Accts :

High End Tourists All to Cyc Create Demand Price Off % Improvement vs SKU placement
AB Selective Brand Switching Promo Contest % Off Take Improvement
upper C Top Mind Awareness Special Events Support % Sales Growth
Off Take incentive Programs

Low End 80-20 15 dys Create Demand Promo Contest % Improvement vs SKU placement
CD Pareto 30 dys Brand Switching Dealer Aid % Off Take Improvement
Top Mind Awareness Incentive Scheme % Sales Growth
Motorists Off Take Price Off
Call To Action Visibility Campaign

CUSTOMER CONTRIBUTION
STATEMENT
SAMPLE FORMAT

CUSTOMER / CHANNEL / SALES AREA CONTRIBUTION STATEMENT
CUSTOMER: MAGIC
STORES
CATEGORY: BEVERAGES

CURRENT YEAR PLAN

% %
Amount NPS Amount NPS

(Mio (Mio
Euro) Euro)

GROSS PROCEEDS OF SALES 111 120
Less: General Price Reductions 11 12
100.0 100.0
NET PROCEEDS OF SALES 100 % 108 %

Less: Performance Trade Expenses
Space 0.5 0.5%
(of which) Listing Fees 0.1 0.1%
Trade Promotional Activities 3 3.0%
Specific Target Incentives
Total Performance Trade Expenses 3.6 3.6%

Non Performance Trade Expenses
Ad-Hoc Expenses 1 1.0%
On-going Expenses 2 2.0%

C USTOME R F OC US
C ONC E PT

GE NE RA L TRA DE
“ MOHIC A N “

RFM BRANDED FOOD
GROUP

C US TOME R F OC US
MOD U LE
VIC RAMIL H. RAMIL

A dapt ing Cust omer Focus
O b j ctive s :
e

To acknowle d ge th e im p ortance of you r work to a
s p e cific cu s tom e rs / s tom ize d .
cu
r To introd u ce focu s on th e cu s tom e r as th e d riving
p rincip le of cu s tom e r s e rvice .
t To s h are with you wh at cu s tom e rs re gard as
im p ortant, accou nt or ou tle t s p e cific.
n To introd u ce th e cu s tom e r inte raction cycle and
give you p ractice in u s ing its s u p p orting s kills .
VIC RAMIL H. RAMIL

C reating C us tomer Focus cont’d.

To h e lp you u nd e rs tand and e m p ath ize with
cu s tom e rs .
r To e m p h as ize th e im p ortance of te am work.
To s tre s s th e im p ortance of re cove ring from
m is take s .
p To b u ild you r confid e nce in h and ling cu s tom e rs .

VIC RAMIL H. RAMIL

WHAT IS CUSTOMER FOCUS?
Total Organization engaged in delivering to
customers the highest quality products and
service.

g Value is measured extent to whichTerms meet
the organization); the
in Customers’
you
(not
the organization); the extent to which you meet
the needs and expectations of Customers.

VIC RAMIL H. RAMIL

WHY IS CUSTOMER FOCUS
IMPORTANT?

F To maintain and build a competitive
edge & advantage.
. Do better in market place.
k Growth in profit margins.
To be leaders in the field or trade.

VIC RAMIL H. RAMIL

What do C ustomers C are A bout?

R eliability: ability to perform the promised service
dependably and accurately.
Assurance: knowledge and courtesy of employees
and their ability to convey trust and confidence.
T angibles: physical facilities, equipment, appearance
of personnel, reports, invoices, and so on.
E mpathy: caring, individualized attention.
R esponsiveness: willingness to help customers and
provide prompt service.

VIC RAMIL H. RAMIL

THE C USTOME R INTE RA C TION
C YC L E
Receiving
• Be Ready
• Welcome

Keeping Understanding
• Check for Satisfaction • Listen
• Thank • Ask
• Bridge
• Restate
• Follow up

Helping
• Offer information and Options
• Set expectations
• Set Agreement VIC RAMIL H. RAMIL

C USTOME R FOC US FOR C USTOME R
SA TISFA C TION
BUSINESS
BUILDING

BUILDING
COST EFFECTIVE
BUSINESS
PROGRAM
ALLIANCE

TAILOR-FIT
ACTIVITIES-PRACTICES
CUSTOMIZED
VIC RAMIL H. RAMIL

K E Y E L E M E N TS
Business Building
• Synergy of Activities
• Adapt Best Practices
• Support & Reinforce Plans / Programs,
• Introduce New Ideas, Ways & Means.
• Develop & Manage New Ways
• Develop Competitiveness
• Accounts, Outlets, Channel Specific.

VIC RAMIL H. RAMIL

Building Business Alliance
• Support move to cut down Cost of
Non-Conformances. (CONCS)
• Win-Win Programs Application
• Alignment of Plans & Programs
between Business Partnership
• Open Communication & Coordination

VIC RAMIL H. RAMIL

Tailor-Fit Activities / Dove Tail
• Performance Review / Analysis ( N. A.)
• Specify Facts & Apply Cause & Effect
• Resolve Critical Issues
• Plan Out Best Fit Programs
• Allocate Funding ( TM SUPPORTS ).
• Monitor Results Periodically.

VIC RAMIL H. RAMIL

Cost Effective-Efficient Programs
• Mutually Agreed Programs ( Scope & Duration)
• Maximization of Resources deployed for
Optimum Results.
• Brand Equity Building, Off-take generating or
Build Trade Confidence.
• Cost-Benefit Analysis.

VIC RAMIL H. RAMIL

B U S IN E S S
B U IL D IN G
SIGNIFICANT COMPONENTS:
• COMPARATIVE SALES ( Trending )
> Previous Periods,Per SKU/Per Month
• TRADE SUPPORT EXTENDED
• TRADE MKTG PROGRAMS APPLIED
• INCREMENTAL SALES AS DERIVATIVES
• SALES FORECAST ( Per SKU/Per Month )
• PLANNED SUPPORTS/PROGRAMS
• RATIO OF TTS vs. SALES RESULTS.

VIC RAMIL H. RAMIL

B u s in e s s P la n
TOTAL CATEGORY ( PESOS) S a m p le 0

YEAR 2005 ( PROJECTIONS )

TOTAL CATEGORY ( PESOS)

PROJECTED GROW TH
#DIV/0!

EXPENSES-YR 2005
TRADE PROMO ACTIVITIES
DISCOUNT ( LESS 10,LESS 5 ) 0
DEALS
FREE GOODS
TOTAL TRADE SPENDING
DISPLAY RENTAL-SPACE
MASS DISPLAY
SHELF RENTAL
ADDITIONAL DISPLAY

NON-PERFORMING TRADE EXPENSES
LISTING FEE
INTRODUCTION DISCOUNT/FEE
ANNIVERSARY SUPPORT
SPECIAL EVENTS
IN-STORE PROMOTIONAL ACTIVITIES
SELL-IN
SELL-OUT
SPECIFIC TARGET INCENTIVES
OTHERS: SPECIFY
TOTAL SELLING EXPENSES
COST TO SALES RATIO

EXPENSES-YR 2003
TRADE PROM O ACTIV ITIES
DISCOUNT
DE LS
A
FRE GOODS
E
DISPLA Y RENTA L-SP CE
A
M SS DISP
A LA Y VIC RAMIL H. RAMIL

B u s in e s s P la n
EXPENSES-YR 2003
S a m p le
TRADE PROMO ACTIVITIES
DISCOUNT
DEALS
FREE GOODS
DISPLAY RENTAL-SPACE
MASS DISPLAY
SHELF RENTAL
ADDITIONAL DISPLAY
CHILLER SPACE RENTAL
NWPI' CHILLER (UNITS) REQT'S
NWPI'S CHILLER
IN-HOUSE CHILLER
NON-PERFORMING TRADE EXPENSES
LISTING FEE
INTRODUCTION DISCOUNT/FEE
ANNIVERSARY SUPPORT
SPECIAL EVENTS
IN-STORE PROMOTIONAL ACTIVITIES
SELL-IN
SELL-OUT
SPECIFIC TARGET INCENTIVES
OTHERS: SPECIFY
TOTAL SELLING EXPENSES
COST TO SALES RATIO

VIC RAMIL H. RAMIL

E f f e c t iv e n e s s a s
ACCOUNTS /
TRADE NAME
E f f ic ie n c y
OUTLINES
NEGOTIATION
OF
KEY POINTS / HIGHLIGHTS
TIMING
DURATION
RANGE
PRICE POINT
PROMOTIONS
RUSTANS SELL-IN
SELL-OUT
IN-STORE SUPPORT
FACING / SPACE
MERCHANDISING
DISPLAY AREAS
COMMENTS :

ACCOUNTS / OUTLINES OF
TRADE NAME NEGOTIATION KEY POINTS / HIGHLIGHTS
RANGE
PRICE POINT
PROMOTIONS
SHOE MART SELL-IN
SELL-OUT
IN-STORE SUPPORT
FACING / SPACE
MERCHANDISING
DISPLAY AREAS
COMMENTS :

ACCOUNTS / OUTLINES OF
TRADE NAME NEGOTIATION KEY POINTS / HIGHLIGHTS
RANGE
PRICE POINT
PROMOTIONS
MAKRO SELL-IN
SELL-OUT
IN-STORE SUPPORT
FACING / SPACE
MERCHANDISING
DISPLAY AREAS
COMMENTS :
VIC H. RAMIL

Nestlé Waters Philippines, Inc.

TRAINING OBJECTIVES :

1. To provide our Merchandising Force with the
specific information on information on basic
merchandising standards, principles, and philosophies.

2. To provide our Merchandising Force with ample
knowledge about the brands, its competitiveness,
consumer acceptance & needs for trade push and pull
creation.

3. To give regular merchandisers a refresher course on
merchandising.

4. To know, learn and understand the Role, Task,
Responsibilities and Accountabilities of a
merchandiser.

EXPECTATIONS :

1. COC’S ( CHECK OUT COUNTERS DISPLAY, PAPAANO ?
2. PLAN O GRAM
3. MASS DISPLAY - WHY & TYPES.
4. SHARE OF SHELF
5. INCREASE- FACING OR SPACE
6. SUGGESTED ORDERING – OFF TAKE
7. MAXIMUM CAPACITY PER SHELF ?

First Part - Basic Merchandising
Skills:
Chapter 1 : Words of the Experience
Chapter 2 : What is Merchandising?
Chapter 3 : Display Arrangement & Building

Chapter 4 : Merchandising Objectives

Chapter 5 : Merchandising & Display Facts

Chapter 6 : What is Displaying?

Chapter 7 : What is a Good Display?

Chapter 8 : Communications in Selling

Chapter 9 : Merchandising Call Procedure
Chapter 10: Reports (Inventory, Offtake,
Planogram, Competitive)

Second Part - Consortium
Merchandising
Chapter 12 : Merchandisers Key Results Area

Chapter 13 : Merchandisers Responsibility

The Words of the Experience

“ The secret of my success is that I look at a
coin. On one side, it reminds me that without
sales, there is no merchandising. On the other
side, it reminds me that without a good and
proper merchandising job, there is no sales or
poor sales at my next call. So I realized that
SA L E S and ME RC HA NDISING are two sides
of the same coin.”

The Words of the Experience

 A display can give you a bigger sales increase that
any other marketing tool; more than promotion and
more than media.

 Display space and siting is difficult to obtain BUT
easy to loose. So, once you have got it, retain and
improve on it.

 It is easiest thing in this world to get a NO, however,
it makes much more fun to get a YES.


The ART of presenting RFM’s products in a CREATIVE
and INNOVATIVE way to :

 PERSUADE the outlets to purchase.
 ATTRACT consumers to buy.
 Call to Action

 Make products appear as MARKET LEADERS
 To display latest POINT OF SALE material and
remove outdated, faded or damaged material
 Create NEW DISTRIBUTION POINTS.


 GENERATE and MAINTAIN the largest
possible shelf space.

 Improve OFFTAKE for all products.

 STIMULATE and MOTIVATE placement of
orders.

 Ensure display at ABOVE STANDARD for
optimum sales and product appearance

Display Arrangement & Building

Display Types:

 On Shelf Display or Primary Shelf Display
These are products normally displayed on the
gondola shelf or shelves of the supermarket.
Products are normally grouped together
according to its category.
 Off Shelf Display
These are products displayed outside of the
gondola shelves. Some are displayed
massively, some are displayed using
promotional racks or tiers and still some on the
checkout counters.

 On Shelf Display or Primary Shelf Display

Types of Off Shelf Displays
1. Mass Display / Island Displays
2. Gondola End Displays
3. Promotional Displays
4. Check-out Counter Displays
5. Dump Bin Displays
6. Perimeter Wall / Front Window Displays

1. Mass Display / Island Displays
2. Gondola End Displays

3. Promotional Displays

4. Dump Bin Displays

5. Perimeter Wall / Front
Window Displays

6. Check-out Counter Display / Counter Top
Display

Merchandising Objectives

 AVAILABILITY

 ACCESSIBILITY

 VISIBILITY

 FRESHNESS

 AVAILABILITY
Achieve multiple distribution points in each
outlet

 ACCESSIBILITY
Enable consumers to see, reach, and touch our
products at the point of sale.

 VISIBILITY
 Make our product look dominant in each category.
 Achieve display dominance and / or fair share of
space.

 VISIBILITY
 Multiface “topsellers” whenever possible
 Group products together whenever possible.

 VISIBILITY
 Use shelf talkers / signs whenever possible
 Arrange products so that our brand name / logo face
consumers.

 FRESHNESS

 Ensure we have the right products in correct
quantities in the shelf at all times.

 Ensure First In-First Out basis.

Merchandising & Display Facts
 Offtake of consumers products react dramatically
to changes in shelf facings, locations & the use of
shelf signs / talkers.

+ 40%

-48%

-58%

What is DISPLAYING?

 Displaying refers to how products are presented
at points of sale.

 The quality of display is a direct result of the
merchandising work and is judged according to
location, type, product availability, accessibility,
visibility, and the use of supporting promotional
materials.

 More displays improve product offtake.

What is a GOOD DISPLAY?
 Eye Catcher
 Make product appear as market leader.
 Increases brand awareness / image create
impact.
 Maximizes Product Impact.
 Merchandisers products at eye level.
 Contains only clean products and properly
priced.
 Merchandise products in “BLOCK” position.

Communications in Selling

Sight - 85%

Taste, Touch, Smell - 10%

Hearing - 5%

MERCHANDISING CALL PROCEDURE
Why do we Merchandise?

 To build brand awareness / loyalty.
 To encourage trial consumption.
 To encourage repeat purchase

 To increase sales / profit of company & trade

 To give consumers value for money

 To make outlets accept new products.

 To ensure product, company and trade success.


1. PRE-CALL /
POST CALL
ANALSIS 2. GREET
7. TRADE RELATIONS CUSTOMER

3. CHECK INVENTORY &
6. EXECUTE ACTIVITIES /
MERCHANDISE
OBJECTIVES

5. PLAN 4. RECORDS
ACTIVITIES & REPORTS

1. PRE-CALL ANALYSIS
 Review Master Call Plan / Call Card
 No. of outlets to be visited for the day.
 Route Plan / schedule
 Call Card (distribution; OOS, facings,
promotions, competitive activities, others)
 Check the Merchandiser Kit
 Price labelers; label tapes
 Cutter / cutter blades
 Marking Pens; POSMs; POPs; scotch tapes, rugs

2. GREET CUSTOMER

G - Greet warmly with a smile.

U - Ultimate motive is to get his/her attention.

E - Eliminate negative comments like “How’s
business?”
S - State your name and the company you are
representing
T- Tell customer that you ready to render your
services

2. GREET CUSTOMER
3. CHECK INVENTORY & MERCHANDISE
Product availability - determine what products
available. Is it properly displayed?
Stocks Inventory - does the outlet have sufficient
stocks? What variants do I have to replenish?
Pricing- is the price correct? Is it clear?

 Distribution Points - replenish all shelves and off-
shelves displays.
 Merchandising Materials - Do I need to replace old
POSMs? What improvement to do.

2. GREET CUSTOMER
 Update inventory folders & inventory forms

Record out of stocks & notify salesman afterwards.

 Check competitive activities

 List down current facings.

 List down additional product distribution points.

2. GREET CUSTOMER
5. PLAN ACTIVITIES
 Time management is the most important tool in this
step. Make sure that you only plan what you can finish
within a call.
Facing Objectives BO accomplishment
 POSMs installation / Planogram
replacement
Clean display
Offshelf display

2. GREET CUSTOMER
5. PLAN ACTIVITIES
6. EXECUTE ACTIVITIES / OBJECTIVES

 Once you have listed your activities for a particular
call, execute them one by one with tact, care &
presence of mind.
 You should not sacrifice quality when executing an
activity or an objective.

2. GREET CUSTOMER
5. PLAN ACTIVITIES
7. TRADE RELATION & LEAVE CALL
 Be honest when dealing with store personnel.
 Show genuine concern for the outlet’s business by
working productively and providing important
feedback in operational issues / problems.
 Be courteous. Avoid unsolicited remarks about
other products and other people.

2. GREET CUSTOMER
5. PLAN ACTIVITIES
7. TRADE RELATION & LEAVE CALL

 As you go to your next call, analyze outcome of
your previous call and ask yourself… How am I doing?
Why? What am I going to do about it? How can I
improve my activities?

Merchandising Key Result Areas (KRAs)
KRAs PERFORMANCE PERFORMANCE
OBJECTIVES STANDARDS
1. Stock Availability  To ensure 100%  0 Stock out
replenishment of
all SKUs at all
times.
2. Share of Space  To maximize &  Depends on
expand product product standards
facings against (50:50 ratio is
competition ideal) > % MS.
3. Product Visibility  To install point of  100%
sale materials implementation
according to plan.
 To implement set  100%
planogram. implementation
 To attain display  100%
dominance. implementation


4. Freshness  No expired products  0 incidence of expiry
are on the shelves. products on display.
 Maintain new and clean  Timeliness of
POSMs & POPs all the POSMs & POPs
time. installation.
 Minimize bad order  Must be maintained
“BO” at <1.0% of sales
per outlet.
 Shelves and product  100% of the time
cleanliness. clean product &
display.
5. Pricing  To ensure correct and  100% of the time
legible pricing product pricing is
correct.


6. Trade  Establish good  0% complaints from
Relations relationship with outlets.
trade personnel
7. Management  Prepare & submit  100% accurate,
Reports reports as may be complete & up-to-
required by date submission of
management. reports.

MERCHANDISERS Major Responsibility

 The merchandiser is responsible for the activities
performed at the point of sale which ensure the
display of our products according to the company’s
rules which stimulate the placement of orders.

 The purposes are to: optimize product freshness
and to support sales through increasing consumer
awareness.

MERCHANDISERS Attitude
 Always keep a positive attitude.
 Be aggressive without being impolite.

 Be loyal and honest to your company and to the
product you represents.

 Be responsible and accountable in all the things
you do.
 Always strive to SUCCEED and NEVER GIVE UP!

“The THING that COUNTS is not what we KNOW but
the ABILITY to use what we KNOW”
KNOW

SALES DRIVERS

“ MIX AND MATCH “
AGGRESSIVE DISTRIBUTION
MODE

FILIPINAS WATER BOTTLING CO.,INC.
CHANNEL DRIVEN – TACTICAL MIX & MATCH

 SUPERMARKETS
 R-S-V-P + P ( HORIZONTAL – VERTICAL )
 GROCERY TYPE
 R-S-V + P ( HORIZONTAL – VERTICAL )
 HORECA
 TACTICAL SATURATION DRIVE
 TRADE MARGIN/REVENUE AS SELLING POINT
 HIGH TRAFFIC AREAS
 COMMANDO-TACTICAL : VISIBILITY & PRICING

 DOWNLINE CHANNELS:
 PENETRATION DRIVE : BREAK CASE SELLING
 ALTERNATIVE DIST’N MODE : SUB-D, JOBBING….
 PROFITABILITY APPROACH :
 APPLY “ LITER SELLING “
 OPPORTUNITY SELLING – K-I-L-L


Objectives

* PLACEMENT
* AVAILABILITY
* VISIBILITY

Key Strategies
• Aggressive pipelining
• Competitive Trade deals : 5
+ 1 DEAL
• LISTING FEE / or INTRO DISCOUNT
Supermarkets / Big Grocery/ Drug Store Chain

Objectives
* PLACEMENT
* AVAILABILITY
* VISIBILITY

Key Strategies
• Aggressive pipelining - Channel Focus :
• Supermarkets
• Grocery Types / Wholesalers
• Convenience Stores
• Drug Stores
• Other Downline Channels- Bakery, SSS,PMS,Canteen

Objectives

* PLACEMENT
* AVAILABILITY
330 ml
* VISIBILITY
600 ml 1.0 Gal
Key Strategies 1.5 Lit 1.5 Gal
• Full RANGE Placement: ( Vertical Distribution )
• Right SKU to the Right Outlet ( Product Fit Approach)
• DEPTH Driven Sell In :
• Stock Weight & Cover – ( Stock Pressuring )
• SPACE for Impulsive Display:
• In-Store Presence, Merchandising & POPs/POSM’s.

FULL RANGE & SKU’S :

330 ml
1.0 Liter 1.5 Gallons

600 ml 1 Gallon

OUR FULL PRODUCT RANGE :

5 GALLONS

Objectives

* PLACEMENT
* AVAILABILITY
* VISIBILITY

Key Strategies
• VISIBILITY(AGGRESSIVE BTL ACTIVITIES)
• STREET SELLING – High Traffic
• POP’S & POSM’S – Call To Action
• SPECIAL EVENT PARTICIPATION – Interfacing w/ BFG
• RESORT PROGRAM – Key Areas

PRICE POSITIONING – 330 ML

120
116
100 110 105 103 109
100
80 94
84
9.00
60 8.50 7.75
6.50
7.25 8.45
8.15
40 8.00

20

0
Wilkins Absolute Nature Spring Summit
Hidden Spring Viva NPL AQUA BLUE

PRICE POSITIONING ( 600 ML)
160 500 ML

140 154 500 ML

120
121 116 119
100 113
97 102 100
80
60
40
20
0

PRICE POSITIONING ( 1.5 lit )
140 1.0 LIT
136
120
116 113 116
100
97 103 100
80
60 74

40
20
0

RETAIL PERFORMANCE STANDARD :
Channel Type 330 ml 600 ml 1.5 lit 1.0 gal 1.5 gal 5 gal TCA QLP IDM Moo

Supermarkets X X X X X X X X X X

Grocery X X X X X X X X X X

CVS X X X X X X X X

SSS X X X X X

PMS X X X X X

Drug Stores X X X X X X X

Gas Station X X X X X X X

Canteen X X X X X

Sports Club X X

Bakery X X X optional X X X X

Wholesalers X X X X X X X

Bus Terminals X X X X X X

Street Vendors X X X

Institutional X X X X X

PRODUCT FIT APPROACH –”Right SKU to the Right Outlet”

Negosyo Mula Sa
330 ml
Aqua Blue……

600 ml

330 ml
ADDITIONAL INCOME :
Aqua Blue……

600 ml

SATURATION – VISIBILITY DRIVE
BORACAY ISLAND
DECEMBER 2004- APRIL 2005

FILIPINAS WATER BOTTLING CO.,INC..
Objectives
• Availability – Visibility Drive
– High Traffic Areas:
• Boracay Island

Key Strategies
• On Site Distribution Operation ( OSDO ).
• Saturation Drive
• Merchandising Blitz

FILIPINAS WATER BOTTLING CO,INC..
Objectives
• Boracay Island

Key Strategies
• SATURATION DRIVE :
– Outlet Penetration/Placement
» 2 Contractual Salesmen
– Delivery & Account Servicing
» Distributor’s Depot in Boracay

FILIPINAS WATER BOTTLING CO,INC.
Objectives
• Boracay Island

Key Strategies
• MERCHANDISING BLITZ :
– POP’S & POSM’S Installation
» 2 Contractual Salesmen cum Merchandisers
– Dealer Aid Support
» On-Premise & Volume Accounts

330 ml
5 + 1 deals P 157.50 ( 10% ) SRP  P 10.00

P 6.08/bot 6.56/bot
600 ml
5 + 1 deals P 157.50 ( 10% ) SRP  P 15.00

P 7.57/bot 8.33/bot

SUB-D’S/
CDAVS
JOBBERS
OUTLETS BIG - C

INCOME/REVENUE: 7% - 10% 52 % ( 330 ml )

80% ( 600 ml)

Distributors/Dealers Support:
• Trading Term :
– 5 + 2 Deals ( 301 cs +++)
– 2% on COD or 30 days Term
• Two ( 2 ) Salesmen cum Disers
• S/Men Incentive Scheme
• One unit Pedicab
Trade / Outlet Support :
• 5+1 Deals ( Pass On )
• Merchandising :
• POPM’s : Streamers, Posters, Bannerettes
• POSM’s :
On – Premise : Chillers ( 5)/ Ice Coolers, Coaster Pads,
Napkin Holder.
Off – Premise : POPM’s


Distributors/Dealers Support:
• Trading Term :
– 5 + 2 Deals ( 301 cs +++)
– 2% on COD or 30 days Term
• 5+1 Pass – On Support
• Merchandising Representative
• Chillers – 50 cases +++/month
• Electrical Assistance : P 200.00/mo
– 20 cs +++/ month
• Pedi-cab ( when needed)
• Ice Coolers & Vending Bags

FILIPINAS WATER BOTTLING CO.,INC
Projected Manpower Costs :
Basic Pay :
Salesman 1 : Php 250 X 26 days = PHP 6,500.00
Salesman 2 : Php 250 X 26 days = 6,500.00
Transportation/Meals:
Salesman 1 : PHP 35 X 26 days = 910.00
Salesman 2 : PHP 35 X 26 days = 910.00
Total ( fixed ) = PHP 14,820.00
Commission / Incentive :
Basis : Sales Volume : 2,000 cs
Outlets Opened/Retained : 400
Rate/Cs Comm: Php 1.00, = Php 2,000.00
Outlet Opened/retained : Php 3.00 = Php 1,200.00
Grand Total / Mo. = PHP 18,020.00
Grand Total ( 5 mos): = PHP 90,100.00
% Cost To Sales : 5%

FILIPINAS WATER BOTTLING CO.,INC

REGALO KO PARA NIMO :

P 2.00 / KADA KAHON

INCENTIVE
MAY – JUNE : SALE TO TRADE

JULY & ONWARDS  MORE SUPRISES

Sales Management System Optimization

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