1 Selling Your Product EffectivelySales & Business Development Selling Your Product Effectively Presented by Gregory Connell, President & CEO Nurture Atlantic Inc., NS & NB
2 About Nurture AtlanticWho We Are Experienced professionals in consumer products Servicing food, beverage and health clients Working in various areas of supply chain in Atlantic Canada Offices in New Brunswick and Nova Scotia
3 About Nurture AtlanticWhat We Do Focus on Creating & Cultivating Consumer Products Offer Strategy & Advisory Services Business & Market Development Value & Product Development Design & Brand Development
4 Business Development Selling with StrategyDevelop an effective sales strategy Build relationships Determine the best sale channels Dollars & cents
5 Develop an Effective Sale StrategyCover all the Bases Define your target customers. Who are your ideal customers? Know your unique selling proposition (USP) What makes your product stand out from the competition? Analyze your territory Where do you currently sell? Do you have new targeted territories?
6 Develop an Effective Sale StrategyCover all the Bases Who is your competition? How well do you know them? Who else has the same or similar offerings? Where do they sell (i.e. online, retail, wholesale, direct)? Who are their key accounts (i.e. biggest customers)? Sales expectations? What are you growth expectations for the next months? Do you currently have the resources to sustain your growth targets?
7 Building RelationshipsSuppliers are Critical Pay on Time. Like you, your suppliers like to deal with organizations who are current with their payments Set clear and achievable goals for key areas, such as lead times for ordering. Provide adequate lead time Remember that they have other customers Learn what they need from you in order to meet your expectations Share relevant information about your organization with your suppliers Personalize the relationship
8 Building RelationshipsWholesalers are also very Critical Communicate often. Understand their business Understand their goals for key areas such as lead times for ordering. Ensure consistent supply Remember that they have other vendors Learn what you need to do in order to meet their expectations. Share relevant information about your organization with your wholesaler partners Personalize the relationship
9 Sales Channels Consider all OptionsType of product – If your product is perishable or is unstable, you will need a much faster, direct distribution method Market – If your market is consumers, retailers are an essential distribution method whereas business markets may need another approach Middlemen – Depending on your needs and demands on your time, a middleman can help distribute products quickly and efficiently What will work best for you? Look at your competitors. Examine costs and benefits. Rank your options
10 Sales Channels Various Options to Choose From Supplier WholesalerDistributer Broker Direct channel Electronic retailing Direct store distribution (DSD)
11 Sales Channels Supplier A party that supplies goods or servicesA supplier may be distinguished from a contractor or subcontractor, who commonly adds specialized input to deliverables Also called vendor Handout
12 Sales Channels WholesalerPerson or firm that buys large quantity of goods from various producers or vendors, warehouses them, and resells to retailers Wholesalers who carry only non-competing goods or lines are called distributors Handout
13 Sales Channels DistributorAn entity that buys noncompeting products or product lines, warehouses them, and resells them to retailers or direct to the end users or customers Most distributors provide strong manpower and cash support to the supplier or manufacturer's promotional efforts They usually also provide a range of services (such as product information, estimates, technical support, after-sales services, credit) to their customers Handout
14 Sales Channels Broker Person who serves as a trusted agent or intermediary in commercial negotiations or transactions Brokers are usually licensed professionals in fields where specialized knowledge is required, such as finance, insurance, and real estate Their rate of compensation (called brokerage or commission) is determined according to custom of the particular trade or by law, and is computed commonly either as a fixed percentage of the value of the transaction or on a sliding scale (higher the value, lower the percentage) Handout
15 Sales Channels Direct ChannelDistribution channel in which a producer supplies or serves directly to an ultimate user or consumer, without any middleman (agent, distributor, wholesaler, retailer) Handout
16 Sales Channels Electronic RetailingElectronic retailing is the sale of goods and services through the internet Electronic retailing, or e-tailing, can include business-to- business (B2B) and business-to-consumer (B2C) sales of products and services, through subscriptions to website content, or through advertising E-tailing requires businesses to tailor traditional business models to the rapidly changing face of the internet and its users Handout
17 Sales Channels Direct store distribution (DSD)Many consumer goods manufacturers are increasingly using a Direct-to-Store Delivery (DSD) delivery model as an alternative to traditional wholesaler and distributor networks A DSD model establishes a “closed loop” network from the consumer good manufacturer’s warehouse to various retail outlets, making multiple stops before returning to the point of origin Handout
18 Sales Channels Examples of Paths to Market Handout
19 Dollars & Cents Money in the BankExplore and analyze profitability scenarios when considering various sales channels High mark up with low volume? Low mark up with high volume? What is the cost of selling? What is the cost of goods (i.e. ingredients, packaging, shipping)? Expected return on investment? Prepare to invest in selling
20 Selling Your Product EffectivelySales & Business Development Selling Your Product Effectively Presented by Gregory Connell, President & CEO Nurture Atlantic Inc., NS & NB