Earlier this year we surveyed manufacturers about their 2009 sales and profit drivers. We had over 130 responses from more than 75 companies.
Manufacturers said:
- Their highest priority is new product introductions, albeit other questions in the survey inducate that this area continues to be a challenge for the industry (successful new product introductions is an industry challenge.)
- They are taking a laser-like focus on end-users and are adjusting their sales and marketing budgets accordingly.
- They are focused on becoming more productive and efficient in their operations, as evidenced in corporate reductions and continued expectation of their sales organization to focus on training adn the end-user. Essentially they need “the same or more with less resources.”
- Training distributor salespeople is important to them to enable them to benefit from the multiplier effect (more feet on the street who will promote their products). This is balanced by manufacturer comments that expressed frustration with distributor training adoption and distributor salesperson absorption of training information.
Interestingly, manfucturers expressed some dissatisfaction with their distribution coverage, ranking “expenading of distributors sell to” as their fourth highest priority.
The manufacturers’ top 10 priorities, based upon a scale of 1 to 10, were:
To achieve objectives, it is important for each element of the channel to understand the goals of their other channel partners, but more importantly, for plans to be developed, and implemented, to drive success.
Manufacturers … how are distributors delivering for you? Distributors, how are manufacturers acting upon their desires?
3 Comments
These are almost all tactics vs strategies. Some are mutually exclusive. For example, you can’t very easily train sales people, train distributors, train contractors and end users and go after small projects when you just cut back on your people. With lowered investment, new product introductions won’t be as plentiful.
In contrast, strategies all flow from the market-back. If you target different parts of the market, you will use different value, channel and market strategies which will also dictate your cost structure. If your market is maturing or in decline for your product, you will expand distribution. If you make these decisions as tactics, you could do damage to yourself long term.
Sounds like manufacturers need help with strategy.
I do think you can easily train sales people, distributors and end users if you have the right tools and processes in place.
It doesn’t happen overnight but technology can certainly help. We also know that we can provide print materials in supplement to the training and verify the right people have the knowledge they need to do their jobs well.
If manufacturers are willing to be creative in their approach, to invest in tools if not in people – I think they can be very effective. The progressive, well capitalized businesses seem to understand this and are working to put the pieces in place.
It requires strategy, tactics AND vision to get to the other side of the current economic conditions stronger than when you started.
We have found with our clients as they reduce their headcount it’s even more important to train both the distributors and the end users on how and when to use products. We have find that online give you the benefit of having them take courses when they want,you can also monitor and test them to make sure they get it and it’s cost effective.
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