Establishing Differentiation Through a Distributor Sales Force

Industry:

Global Recreational Products Manufacturer

Situation:

This renowned recreational product manufacturer distributes its products nationwide through an independent third-party sales force. This network of independent businesses represents the manufacturer’s retail products (along with others) and sells directly to retail stores.

The Vice President of Sales recognized that although they were currently the market leader in their product line, heavy competition was looming and product differentiation was narrowing. A strategy of implementing sales excellence at the retail buyer interface was selected as the way to continue differentiation.

In order to do this, two goals were set:

  • Keep the mind share of the distribution sales force.
  • Develop distributor salespeople and managers in the manufacturer’s sales process and required selling skills.

Analysis:

Business Efficacy interviewed the distribution network’s highest sales performers to identify the key activities done when selling the manufacturer’s products. The findings indicated salespeople needed to provide exceptional value at every customer interface. This was achieved by consistent use of a customized sales process and proactive problem solving that created noticeable differentiation.

Execution:

A custom sales work flow was developed which included each of the key steps and corresponding skills needed for providing exceptional value to retail store product buyers. This sales process, along with the practical skills and tools to put it into action, was packaged into a two-day, current-situation application training course. Business Efficacy worked closely with the manufacturer and key distributors to create a development experience that used case studies and application exercises that drove every point home, from and to, the distributors’ real world.

Over an 18-month period, every sales manager and sales representative attended the two-day training course. The managers also attended an additional one-day session. The session was designed to ensure managers understood the sales process and skills, as well as how to coach and develop salespeople in these new, required competencies. Over 100 people were involved, representing 100 percent participation.

Impact:

  • Market share was retained while additional competition entered the market place, and others lowered prices.
  • Feedback from retailers indicated this sales force had a more professional approach than the competition.
  • The sales representatives demonstrated additional loyalty to the manufacturer because of the development investment made in them - ultimately achieving more of their mind share.
  • Business Efficacy continued to receive calls from the distribution network sales managers for reinforcement coaching, indicating the desire to fully utilize the sales process and skills with their representatives.