History Channel Battle

In an ideal world, its key distributors could develop annual business plans of its product line and work closely with your distributor account managers to get the plans implemented. In fact, many manufacturers skip this planning effort altogether. Those that require distributor plans often struggle - either to persuade distributors to create quality plans or to ensure that the plans are followed.

To understand a typical planning process for the distributor, Smart Business spoke with Bob Segal, director of Frank Lynn & Associates.

Why would a manufacturer to require its distributors to create written plans?

Success depends Many manufacturers of the actions of dozens or even hundreds of independent distributors mostly small. However, each trader has different goals Customer, mixtures of different products, and sales and technical skills. Many lack the skills for strategic planning and marketing departments. As independent companies, which are free to do what they want.

A manufacturer can expect the best or dealer-use plans for greater control over their destiny distribution.

Is it realistic to expect or require each reseller plans?

No. Most manufacturers do not have the capacity to manage hundreds of individual plans. In addition, most manufacturers experience the 80:20 rule where 80 percent of its revenue comes from 20 percent of its channel partners. At a minimum, providers should require plans of key partners.

Not all manufacturers have the clout to demand distributors create a plan. A small company selling through Wal-Mart could face an uphill battle to get a detailed written plan. However, vendors must "think big retreat, "not unless they face an imbalance of bargaining right. Even in those cases, scale back the scope of the planning application rather than surrender completely.

What should be included in the plan of a dealer?
Obviously, these plans must be highly personalized content. However, the elements typical of a manufacturer should expect or even require, a distribution plan might include:

Business background - a declaration of short strategy, the review of market conditions, a summary of qualifications and a list of distributors of key financial, sales goals and technical

Product / Service Summary - a list of (existing or future) services the dealer offers and complementary product lines carried

The mix of clients - sales by market segment, a list of the main accounts of the main

Marketing Plan - a listing of specific marketing activities including start and end dates, people and resources allocated (the distributor and your company), covering trade shows, seminars, mailings, websites, publications, advertising, etc.

Personnel and training plan - a list of vendors that staff attend training sessions what (yours or others) over the next year, hiring plans that affect its product line

Sales Plan -- major key account activities, expectations of joint sales, telemarketing schemes

Logistics Plan - Storage Technology investment

Financial plan - an agreement on sales targets, forecasting frequency, etc.

How large of these plans to obtain?

First, it is often helpful for the manufacturer to create a template. It is much easier for a distributor to fill in a form formatted to create a plan from scratch. Furthermore, this ensures the manufacturer will get the type of information sought (in a consistent format).

For a major supplier, dealers often want to devote considerable time to create a comprehensive plan. Sometimes, the document becomes the overall strategic plan for the distributor. Regardless, most of the plans consist of two to three pages of text with five or six pages of tables or forms. Distributors often attach appendices with sales spreadsheets, forecasts, lists of trade fairs, etc.

What is the role of equipment manufacturer's sales channel in the process planning?

The channel managers should establish an annual planning calendar to the account of the annual plans ended in December; formal, two-way reviews each quarter and informal monthly updates.

Always with a template, distributors - managers do not count - you must write business plans. Account managers can add your company's commitments to the plan during the annual planning meeting.

The annual meeting will take place between the account manager and the owner or executive of the dealer. The actual meeting, to review the results of last year and revise the plan for the next year, probably will require two to four hours. In preparation, the account manager should review in detail the distributor's sales history, the local market trends and conditions, manufacturers fulfillment of previous commitments, plans for new products, etc.

About the Author:

Bob Segal is a Principal of Frank Lynn & Associates. He oversees the firm’s industrial and technology practice groups. He has 24 years experience and is a nationally recognized author and trainer.

Article Source: ArticlesBase.com - Successful Distributor Plans: How to Motivate Sales Channel Partners With a Formal Planning Process