Go to Market – Sales/Channel & Marketing Plan I. Overview This formalized “Go-to-Market” Sales & Marketing Plan has been created to address the areas of Sales organization, Product Marketing and Opportunity Development requirements by XYZ Corporation to meet their stated financial objectives during the period of November, 2007 - December 2008: A. Sales Organization Development – With funding now available the first and most critical objective for XYZ is to establish the organization and processes to drive revenues within their stated costs structure. This is the identification, hiring, development and growth of the sales organization throughout the US. It is important to note, that the first three categories listed below have critical time requirements to ensure the sales process gains momentum going into Fiscal Year 2008. Phase I - Immediate 1. Job Titles/Description Finalization – Now that XYZ has established its revenue and expense requirements for the next 18 months, identification of the required resources needs to formalized and documented to begin the hiring process to include the desired experience, education and skill sets. 2. Salary & Compensation Plan – Understanding the existing marketplace and the desired resources stated above, XYZ must formalize a competitive salary and bonus/compensation structure that is commensurate with those requirements and takes “cost of living” into DRAFT consideration in the key areas targeted (e.g. Washington DC, NYC and LA). 3. Candidate Interviews & Hiring – Once job descriptions, resource requirements and salary plan has been finalized, the next critical step is to begin advertising these jobs in the designated target cities ASAP to begin the interviewing process. Phase II – Within 45 Days 1. Sales Territories – In tandem with completing the tasks within Phase I above, XYZ needs to assess it most immediate needs from a client/geographic standpoint to determine its priorities for sales and client opportunities to provide the fastest generation of revenues and establishment of client relationships. 2. Quota Assignments (2007-2008) – Once the Sales & Compensation plan has been determined XYZ must also create a short-term and long-term quota plan to meet financial objectives with a “ramp-up” for new sales people taken into consideration. 3. Initial Training – Equally important to the immediate hiring process is putting into effect a “crash course” training plan that can get new employees versed on XYZ and its products ASAP including the value add statements to assist in interviewing clients and assessing the best solution(s) to meet those needs. 4. Job Performance and Management Plan – Finally, it’s critical that XYZ has a process in place from “day one” to monitor and manage the sales process to ensure that sales resources are being given the best opportunities to be successful. This process needs to include the metrics, benchmarks, data capture, data entry and retrieval of relevant information for the SVP to manage the process on a real-time basis. Phase III – Within 60 Days 1. Long-term Training – Once new sales employees are in-place and begin the learning/sales process through real-time experience, a longer sales training program needs to be put into place to grow skills and knowledge to maximize their ability to drive revenues as well as enjoy a successful career at XYZ (retention). 2. Sales Support Process – As part of the sales process, the sales organization must have a support mechanism to help them assess sales opportunities, create appropriate materials, build lead lists, enter information in CRM, pull reports to manage success and ensure customer satisfaction throughout and after the sales process. 3. Sales Tracking Process – As a subset to the Job Performance tracking process is the ability to use information within CRM to track the sales process, cycle times and rates of success to build a stronger sales force and assess the needs of employees, the corporation and the client. B. Product Marketing – Defines the various activities required to create take XYZ Corporations products to market including Market Segment Description, Market Metrics, Competitive Analysis and Marketing Requirements which includes, client development, strategic pricing/proposal development, marketing programs (Traction) and Marketing Communications (MARCOM). 1. Market Segment Description – In tandem with the development of the sales organization it is imperative that XYZ develop formally define and document the market segment(s) it wishes to penetrate in the short-, medium-, and long-term to efficiently create training, job skills analysis, performance metrics and sales strategies and associated budgets to maximize ROI and minimize the sales cycle. Some of the key elements needed to identify the market are: a. General Description of the Target Market(s) b. Why this particular market(s) was chosen c. Who are they - complete profile (e.g., demographics, psychographics, behaviors) DRAFT d. What benefits do they seek (i.e., what points-of-pain or problems are being solved) e. What factors can affect their purchase or use decision f. What attitudes do they have about the products/services currently or not currently offered g. How is the product used h. Products and Services that appeal to the target market i. In general terms (not particular brands) what is currently appealing to this market j. If there are no current providers, what types of products/services may appeal to this market (i.e., what is used now to solve the problem). 2. Market Metrics – A key to development of market segment definition and penetration strategies is to determine critical metrics about the market to use for benchmarking, cycle tracking and performance analysis, e.g. size, scope, volume and competition. a. Size estimates (current and future) for: − Overall market − Current size − Potential size − Actual penetration of current products/service within the total market − Individual market segments − Current size − Potential size − Actual penetration of current products/service within the total market − Usage rates − Frequency of product purchases b. Growth estimates (current and future) for: − Overall market − Individual market segments 3. Competitive Analysis – One of the most important aspects of the product marketing process is to determine who XYZ’s main competitors are in which markets and what products are competing with XYZ products within those markets. Key information about the competition will include the following summary of Current Competitors: a. Listing by market share ranking (by each target market if possible) of Current Competitors - full analysis of top competitors including: − Products & Services (e.g., description, uniqueness, pricing, etc.) − Market share − Current customers − Positioning and promotion strategies − Partnerships/Alliances/Distributors − Recent news − SWOT Analysis - Strengths, Weaknesses, Opportunities & Threats b. Potential Competitors − Explanation (though not as detailed as Current Competitors) on who they are or maybe and why they are seen as potential competitors 4. Marketing Requirements – Once the information above has been formally defined and documented, XYZ must create internal sources of information, metrics, process and time frames in order meet the overall Roadmap to success. This includes 1) determining who the clients are and how to reach them, 2) what pricing will assist in making immediate sales based upon the competition, 3) the programs used to get immediate traction in the marketplace and the documentation needed to inform the sales organization, sales channels and the client. DRAFT a. Client Development/Market Share Growth – Defines the various activities required to build client lead lists, develop clients and new opportunities, grow existing client relationships and evolve existing XYZ products and services to meet the needs of clients today as well as in the future. b. Strategic Pricing/Proposal – One of the most important aspects of building a sales and opportunity development process is to create a centralized strategic pricing process that builds a control point into the way pricing and proposals are presented to clients to maintain fiscal responsibility and client consistency. ! Roles & Responsibilities – The first step within the strategic pricing process is identifying and documenting the roles and responsibilities of each member of the sales organization within the overall process of putting competitive pricing/proposals in front of the client. ! Custom Deal Process – Once the roles are established, the next step is to document a process that sets specific standards for pricing XYZ products/services/features and presenting them to client. This process must be designed to ensure consistency in terms of what information is given to clients from both the XYZ sales organization as well as the external sales channel. c. Marketing/Traction Programs – A critical element to delivering revenue quickly to the enterprise is to determine initial programs that can gain immediate “traction” within the marketplace to incentivize clients to make quick buy decisions. These programs and processes for determining information include: ! Traditional formats e.g. meetings, presentations and MARCOM – TBD ! Go to Market Tools and Processes – TBD d. Marketing Communications – To maximize XYZ’s initial traction program it is recommended that initial materials/documentation be created to assist the sales organization deliver information to the client to assist in the buying decision-making process. C. Business Opportunity Development – The final step to becoming operational is putting into place the means to find clients, develop opportunities, construct competitive proposals including features and pricing, delivering it to the clients in a fashion that emphasizes the value of the product and an ongoing relationship with XYZ, installing the product in a timely manner and then following up to ensure customer satisfaction to maintain long-term relationships. A subset of this process is developing the tools and metrics to monitor and analyze the process to ensure maximum success. 1. Sales Process – The first step in this area is to develop a consistent sales process that allows XYZ to uncover client needs to and put forth a competitive proposal that will capture the client’s interest and lead to a successful sale. The process needs to be documented and managed on a consistent basis to understand the overall “sales cycle” which allows XYZ to know the anticipated timelines and revenue outcomes of a typical successful sale. As time progresses this sales cycle becomes imperative to XYZ in terms of managing resources and financial expectations of the corporation and the Product House. 2. Business Tools – The second step in the area which goes hand-in-hand with the sales process is the development of business tools that assist the BDM do his/her job successfully while providing the intelligence to Sales and Corporate Management to manage the business and make adjustments real-time as needed. II. Operational Plan & Implementation The following are recommendations on how XYZ must move forward and in what order of priority to build a successful sales organization and ensure its ability to create a revenue stream and sales pipeline to hit January, 2008 at full stride. It is extremely important for XYZ to understand that it will take at least 90 days to get qualified people onboard and generating opportunities so it must act quickly in order to meet its 2008 sales/revenue goals. A. Sales Organization Development Roadmap – The most critical objective for XYZ to drive revenues identified in the Corporate Business Plan and Strategy. Based upon the following progression chart, in order for XYZ to show appreciable billed revenue opportunities by early to mid-January, the hiring process needs to begin ASAP. DRAFT DRAFT Note – Using the timeline above, starting the process on September 20, 2007 will put booking revenues into March, 2008. This is the identification, hiring, development and growth of the sales organization through the US including: Phase I 1. Job Titles/Description Finalization – Based upon the decision by XYZ to move forward with the recommended “Business Development Consultancy” model described above, the following positions should be formalized immediately to begin the hiring process: a. Business Development Associate – Sales support role designed to assist the sales team develop new business customer’s leads and information for business opportunities. Experience, education and skills required: − Entry Level Research & Sales Support position − College Degree − Identify/Research/Develop new client leads by geographic territory − Work with individual Sales Managers by territory to develop calling plans − Monthly Reporting - CRM − Billing/Collection issues − Lead generation ! General Job Description – The Business Development Associate is an entry-level Sales Support manager who works with each Business Development Manager to identify leads by industry/vertical and region and follows up with initial contact to (hunter role) key clients to begin the opportunity development process. In addition the, BDA assists the VP, Sales in running monthly reports to monitor business growth as well as the individual performance of each BDM. b. Business Development Manager – Experienced Business Development and Opportunity Manager with previous experience in assessing client needs and translating XYZs product line and core competencies towards creating a solution. Experience, education and skills required: − 5+ Years of Experience − College Degree (MBA Preferred) − Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis − Understanding Client Business Models − Identify/Research/Develop new client relationships − Opportunity Assessment (client business needs) − Opportunity Development (Proposals) − Lead generation − Fact finding/Meetings with clients and prospects − Understanding of Financials − Communication Skills − Writing Skills − Presentation Skills − Build/Maintain existing client relationships − Monthly Reporting - CRM − Consultancy Sales − Multiple-Industry Expertise ! General Job Description – The Business Development Manager is responsible for develop new business opportunities through lead development, client relationship building delivering timely and accurate proposals that meet specific client needs. Approximately 75% of the BDM’s time is spent cultivating new clients and business opportunities as well as partnering with the external XYZ Sales Channel to ensure a consistent price and product message is delivered to the client. The remaining 25% DRAFT is spent working with existing clients to ensure satisfaction and long-term business retention. c. Senior Business Development Manager – Experienced Business Development and Opportunity Manager with previous experience in assessing client needs and translating XYZs product line and core competencies towards creating a solution. Experience, education and skills required: − 7+ Years of Experience − College Degree (MBA Preferred) − Existing client lead list within preferred industry segments − Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis − Understanding Client Business Models − Identify/Research/Develop new client relationships − Opportunity Assessment (client business needs) − Opportunity Development (Proposals) − Lead generation − Fact finding/Meetings with clients and prospects − Understanding of Financials − Communication Skills − Writing Skills − Presentation Skills − Build/Maintain existing client relationships − Monthly Reporting - CRM − Consultancy Sales − Multiple-Industry Expertise ! General Job Description – The Senior Business Development Manager is responsible for develop new business opportunities through lead development, client relationship building delivering timely and accurate proposals that meet specific client needs. Approximately 50% of the BDM’s time is spent cultivating new clients and business opportunities as well as partnering with the external XYZ Sales Channel to ensure a consistent price and product message is delivered to the client. The remaining 59% is spent working with existing clients to ensure satisfaction and long-term business retention. d. Senior Business Manager – Experienced Business Manager with ability to craft and approve strategic pricing proposals for clients, serve as primary interface to external sales channel and prove real-time information to the Product House based upon the changing marketplace. Experience, education and skills required: − 10+ Years of Experience − College Degree (MBA Preferred) − Custom Deal Architecture & Strategic Pricing − Channel Sales Management − Product Marketing − Financial Tracking and Forecasting Responsibilities − Writing Skills − Multiple-Industry Expertise ! General Job Description – The Senior Business Manager is responsible for managing centralizing all price/proposals delivered to clients via the internal sales team and external sales channel. In addition, responsible for providing intelligence to the Product House based upon client input of price, contract terms and product/features. e. Vice President, Business Development – Experienced leader of Sales, Marketing and Business Development Managers with previous experience in assessing managing, coaching and motivating sales resources. Experience, education and skills required: − 10+ Years of Experience − College Degree (MBA Preferred) − Coaching, Mentoring and Motivating Sales Teams − Custom Deal Architecture & Strategic Pricing − Product Marketing − Financial Tracking and Forecasting Responsibilities − Communication Skills − Writing Skills − Presentation Skills − Multiple-Industry Expertise ! General Job Description – The VP Business Development is responsible for managing and driving the DRAFT sales organization to success through coaching, mentoring and motivation as well as all aspects of day-to- day operational management including financials, forecasting and training. In addition, VP has corporate fiscal responsibility within the strategic pricing and proposal process to ensure XYZ meets its financial objectives. VP also serves as the primary interface between the client and the Product House to ensure that XYZ products and features meet the objectives of the client and the existing marketplace. In addition to the experience and education levels listed above by title, the BDM should specific experience in Business Development, Strategic Planning or Solution Sales. Key skills and experiences should be in finding/generating leads, understanding the business models of their particular verticals, proposing customized solutions that can enhance those business models, the ability to present and communicate their solutions, seek out “C” level management (Key Decision Makers – KDMs) within those enterprises, client relationship building and the ability follow up and close. Other crucial skills include: − Ability to understand the business models of their respective clients/verticals − Ability to translate that knowledge and research to client-focused SWOT Analysis − Computer literacy in order to develop presentation materials, proposals and results tracking. − Ability to use the Internet to searchin for information and opportunities is also a critical skill. − The ability to work autonomously and in a Virtual Office environment with little managerial, marketing or IT support. Note – The ideal scenario is to have a Senior BDM and BDM paired up within the NYC and DC offices to provide team support and mentoring especially in a Virtual Office environment. Considerations should also be made to put a second BDM in Los Angeles to handle northern California as the western region becomes more cultivated. 2. Salary & Compensation Plan – Based upon the needs of XYZ to place qualified BDM’s in key and high “cost-of-living” markets like NYC, LA and Washington DC, it is recommended that management create a financial package that has three components, salary, compensation and bonus that is “top heavy” with regards to salary to attract the most experienced professionals as possible. a. Salary – In order to bring in experience and qualified candidates in high cost-of-living areas, it is recommended that XYZ pay a salary plan that rewards responsible managers who can work autonomously and demonstrates a professional maturity to find, cultivate and maintain long-term client relationships. To meet these requirements, the following ranges are recommended: Business Development Associate $50,000 - $65,000 Business Development Manager $70,000 - $85,000 Senior Business Development Manager $95,000 - $110,000 Note - This higher salary structure also resolves issues for new employees making little or no compensation for 1-4 months as they ramp up into their job and create a pipeline. b. Compensation – With more emphasis on hiring experienced and mature professionals through higher salaries, XYZ should create a minimum compensation plan that incentivizes the manager to meet or exceed their annual sales quotas but also recognizes that the manager is receiving 75% of their total annual earnings through salary. The way to motivate the manager however is to provide escalators once they “exceed plan” that makes it lucrative for them to excel beyond their quota. The following is a chart of shows the compensation paid per lead/sale up at 100% of quota and above: Lead/Sale Type @ 0-100% @ 100.1% @ 105.1% @ 110.1% Product 1 Leads $25 $30 $34 $38 Product 2 Leads $50 $60 $68 $75 Product 1 Sales $2,500 $3,000 $3,375 $3,750 Product 2 Sales $5,000 $6,000 $6,750 $7,500 Note – Key to the chart above is a lowered per sale compensation plan up to 100% of quota to balance out higher salaries. What the escalators do is incentivize each BDM to exceed 100% of quota where the plan now would pay at 110% of quota what the existing plan pays at 100%. It is very important to provide a “carrot” for the BDM to want to exceed quota. Flat payouts per sale will ultimately allow the BDM to give up during adversity seeing no advantage to excel! c. Bonus – Based on XYZs profitability/ROI model, a potential bonus 5% of base salary per annum based upon the BDM meeting 100% of objectives. The bonus can grow beyond 5% incrementally if the BDM surpasses DRAFT his/her personal, corporate and revenue targets. These bonuses should be paid in increments either once or twice per year based upon the needs of the business. Note – Each BDM can receive a portion of this bonus if they fall below 100% of their targets, but this will only apply to personal objectives and not revenue objectives as there should be no partial reward for failure to meet quota. Listed below are the salary, compensation and bonus ranges per title based upon meeting exactly 100% of all targets. Compensation BDA Base Salary @100% Bonus @100% Range Lowest $55,000 + $4,080 + $2,750 = $61,830 Middle $60,000 + $4,080 + $3,000 = $67,080 Highest $65,000 + $4,080 + $3,250 = $72,330 Compensation BDM Base Salary @100% Bonus @100% Range Lowest $70,000 + $21,000 + $3,500 = $94,500 Middle $77,500 + $21,000 + $3,875 = $102,375 Highest $85,000 + $21,000 + $4,250 = $110,250 Compensation SBDM Base Salary @100% Bonus @100% Range Lowest $90,000 + $30,000 + $4,500 = $124,500 Middle $97,500 + $30,000 + $4,875 = $132,375 Highest $105,000 + $30,000 + $5,250 = $140,250 Note – The above salary, compensation and bonus plan is suggested as a “Year 1” plan to both entice the best candidates immediately to ensure quicker sales revenue traction as well as promote a higher rate of retention. 3. Candidate Interviews & Hiring – Based upon the timeline above, the following steps should then be followed ASAP: a. Begin posting job ads nationally for BDM’s in NYC and Washington DC immediately with considerations towards bringing candidates in for Chicago, Atlanta and possibly Dallas by EOY 2007. b. Begin interviewing ASAP with the goal of having at least one NYC and DC candidate hired by mid-October, 2007. These two initial candidates should be senior managers and paid at the highest range to gain as much traction within the sales cycle before mid-December, 2007. It is critical that there be a viable pipeline of sales opportunities developed and ready for closure by late January, 2008. c. If possible, finding additional candidates in NYC, DC, Dallas and potentially Chicago and Atlanta by YE 2007 will be critical to meeting 2008 sales revenue objectives. Note – It is critical to the XYZ Corporation 2008 Business Plan to begin the hiring process immediately in order to have a sales pipeline robust enough to begin producing billed revenue in early January. Phase II 1. Sales Territories – In tandem with the hiring plan listed above, emphasis on bring candidates in to managed strategically identified geographic and industry verticals is extremely important to building a sales pipeline that will provide as many high Probability of Sales (POS) as possible in a short period of time. With this in mind, XYZ should focus it internal sales team in the verticals within the following geographic areas: a. New York City – Approximately 60% of all the Fortune 100/500 has HQ or Operational Centers within the New York, New Jersey and Connecticut tri-state area. In particular, the Financial, Entertainment, Telecommunications, Chemical, Pharmaceutical, Tobacco and Professional Sports verticals, all of which are primary candidates for both Product 2 and Product 1. DRAFT b. Washington DC – This should be a crucial location for XYZ for both products considering the high amount of Political, Information Technology (Dulles Corridor in Virginia), Hotels (Marriott), Trade Associations and Defense Contractors (270 Technology Corridor in Maryland). c. Dallas/Ft. Worth (or Houston) – Dallas is one of the top five cities in the US for corporate Headquarters as well as proximity to highly visible Petroleum Industry, Airlines and Hotels. Texas has also had several political scandals in recent years e.g. Tom DeLay. Also close proximity to Louisiana with several post-Katrina issues at every state, federal and corporate level as well as Wal-Mart. d. Los Angeles – Entertainment industry (Product 1 for improving images of companies and their stars as well as Product 2 for helping promote upcoming movies and albums). Another area for consideration would be the concentration of High Net-worth Individuals. Also has proximity to Las Vegas (Casinos, Hotels and Gaming) and Phoenix (American Express, America West, Copper Mining and Best Western Hotels. e. Atlanta (or Miami) – Delta Airlines (bankruptcy), Coca Cola (global expansion and PR issues), Bell South (merger with AT&T), CNN, Ted Turner (CNN and Philanthropic), WorldSpan, UPS, Home Depot (fierce competition with Lowes), Georgia-Pacific (environmental issues) and proximity to Miami (hotels and cruise industry). f. Chicago – Proximity to the “Rust Belt” throughout Michigan, Indiana, Ohio, Pennsylvania and Illinois (steel and automotive and parts manufacturers) e.g. GM, Ford, Bridgestone/Firestone, Daimler/Chrysler, Whirlpool and US Steel. Others include United Airlines (bankruptcy), Dow Chemical (environmental issues), KMart. Minneapolis contains several financial institutions including AMEX, MasterCard, Northwest Airlines, General Mills, Target, Radisson & Carlson Hotels and 3M. g. San Francisco – Proximity to a vast majority of the Information Technology Sector companies such as Oracle, Adobe Systems, Cisco Systems, eBay, Fujitsu, Hewlett-Packard, Hitachi, NEC, Siebel, SUN, WebEX as well as high visibility companies like Bechtel & Visa International, a vast majority of the US wine producers and a significant amount of Asia Pacific US Corporate Headquarters, especially Japanese companies. Note – The above list is not necessarily a recommendation for locations of BDM’s but instead a focus on major US cities that have a high degree of specific verticals. This list should however be used to make decisions going forward on where to locate BDM’s based upon the cost of hiring/locating a new BDM versus the cost of a BMD traveling on a regular basis from another location such as Seattle or Los Angeles. The following are suggested geographic/vertical territories: DRAFT 2. Quota Assignments (2007-2008) – This area will be addressed in 2Q 2008 after the sales organization has been put into place and the marketplace can be reassessed. The current quota appears to be realistic for the short-term based upon limited market data concerning both products, especially Product 2. 3. Initial Training – In order to get as much traction as possible by YE 2007 XYZ must develop a quick 2-3 day training session to get each new hire on board as quickly as possible with the basic knowledge, tools and materials to begin finding new opportunities and driving through the sales cycle process. The basic essentials for this training should include: a. Product Training – An in-depth look at both Product 1 and Product 2 products including features, pricing and benefits. b. Business Development/Sales Training – Along with Product Training, each BDM must learn how to find clients, develop opportunities, create proposals, present and close opportunities. This training requires value-add messaging from XYZ to allow each BDM to propose services and demonstrate the value/benefits it presents to each client. c. Support Materials – As part of sales training, XYZ must provide each BDM with access to materials that will assist them in presenting products to clients as well as creating and delivering proposals. d. System & Process Training – The last element of basic training is providing each BDM with the basic tools to perform their jobs from time reporting to CRM and pipeline management. As a part of this, BDM’s must learn how to submit requirements to the SBM to develop price proposals as well as the formalized escalation process within XYZ. 4. Job Performance and Management Plan – XYZ should create, document and incorporate specific metrics into evaluation process of each BDM to measure success and improvement or to identify issues and obstacles requiring corrective measures. Recommendations are detailed within the associated Performance Plan attached at the bottom of this document. a. Performance Objectives & Metrics – See attached Performance & Objectives Plan. Phase III 1. Long-term Training – Over the next 3-6 months XYZ needs to define a more intense training program to ensure their sales team has the best chances for success as well increasing their DRAFT personal skills for higher retention rates. A professional sales organization is key to XYZ’s long- term survival and perception by the client. Training program(s) include: a. Sales Skills b. Business Development Skills c. Computer Skills (e.g. Office, Database, Internet) d. Presentation Skills e. Writing Skills 2. Sales Support Process – This is another critical area to consider within the next 3-6 months which is how to best support the BDM in the field and virtual office environment. This includes the ability to create, receive and store marketing/pricing materials on a shared drive and a person to assist in uncovering leads, make phone calls, do research, record metrics and pull reports to track success. 3. Sales Tracking Process – This area will be discussed in more detail once the current CRM/SUGAR system has been reviewed. B. Product Marketing – A key to the development of the XYZ sales and product marketing strategy is to fully document the market(s) they wish to penetrate, frames, metrics for success, programs to get the product into the market quickly, information used by the sales team for training and present to the client as well as understanding who the competition is and the pricing needed to gain critical market in the first 90-120 days of product release. 1. Market Segment Description – The following is a general recommendation for the initial target markets XYZ should target its products towards to gain quick revenue/market share. The main reasons for these recommendations are the visibility of the markets and the ability to quickly repeat successful efforts with other clients within the same markets/verticals. a. General Description of the Target Market(s) – Markets/clients that have a high degree of visibility and traditionally carry negative public opinion due to their business and how the media portrays them including the following industries: − Tobacco, Pharmaceutical, Oil & Gas, Political Campaigns, Professional Sports & Entertainment b. Why this particular market(s) was chosen – High negatives associated with these industries c. Who are they - complete profile (e.g., demographics, psychographics, behaviors) – See the attached description of companies in the “Client Calling Plan.” d. What benefits do they seek (i.e., what points-of-pain or problems are being solved) – Traditionally have high marketing budgets to combat negative public opinion. These products are minimal investment within those budgets and can have immediate impact on their marketing efforts. e. What factors can affect their purchase or use decision – Small investment proportionally to their marketing budgets. Quick impact on public perception. Easily tracked. Can be used to proactively market new product releases. f. What attitudes do they have about the products/services currently or not currently offered – TBD g. How will the products be used – Change negative perception on website/blog searches. h. Products and Services that appeal to the target market – Both the Product 1 and 2 will assist in change public perceptions. i. In general terms (not particular brands) what is currently appealing to this market – TBD j. If there are no current providers, what types of products/services may appeal to this market (i.e., what is used now to solve the problem) – Traditional advertising agency practices e.g. client forums. 2. Market Metrics – The following metrics need to be determined by XYZ as soon as possible in order to incorporate into its marketing, sales strategy/organization development and marketing programs. a. Size estimates (current and future) for: – TBD − Overall market − Current size DRAFT b. − Potential size − Actual penetration of current products/service within the total market − Individual market segments − Current size – TBD − Potential size – TBD − Actual penetration of current products/service within the total market − Usage rates − Frequency of product purchases Growth estimates (current and future) for: – TBD − Overall market − Individual market segments 3. Competitive Analysis – There does not appear to be any products currently on the market that directly compete, feature-to-feature as XYZ’s Product 1 and Product 2. The major competitors however to XYZ in the space appear to be other companies within the SEO/SEM, Public Relations and Marketing companies such as Omnicom and smaller firms like Razorfish, Digitas, aQuantive and Agency.com. a. Listing by market share ranking (by each target market if possible) – TBD − Current Competitors - full analysis of top competitors including: − Products & Services (e.g., description, uniqueness, pricing, etc.) − Market share − Current customers − Positioning and promotion strategies − Partnerships/Alliances/Distributors − Recent news − SWOT Analysis - Strengths, Weaknesses, Opportunities & Threats b. Potential Competitors – TBD − Explanation (though not as detailed as Current Competitors) on who they are or maybe and why they are seen as potential competitors 4. Marketing Requirements – The following areas need to be addressed by XYZ immediately to create a “client approach process” in order to begin the sales and client development process and to drive revenues as quickly as possible. The key goal during this process is to understand the marketplace, clients and competition in order to provide the sales organization the appropriate amount of training, skills, tools, performance metrics, collateral and competitive pricing. A major factor within this overall process is to determine the sales cycle which is the time anticipated by XYZ from first client meeting to final service turn up and billing. Once this is established, the following information and processes can then be created to ensure that the cycle is a) met or exceed, b) can be escalated when appropriate, and c) measured for the purposes of revenue forecasting, performance management and the need for additional programs to grow interest. a. Client Development/Market Share Growth – This area will be discussed in more detail in a future version once an assessment has been done of the current XYZ marketplace, client contacts, Channel contacts and general interest in both Product 1 and Product 2 products. b. Strategic Pricing/Proposal – In order to streamline the sales process and ensuing sales cycle, XYZ should create a centralized process for crafting pricing, proposals, terms & conditions that will manage the internal and external sales processes as well as Product Marketing requirements back to Headquarters (Seattle). This process involves the redesign of roles within the process as well as the process itself. − Roles & Responsibilities – The key to managing this process is to centralize and control the sales and pricing process between the client, internal sales managers, external sales channel, the Product House and the CFO organization. To accomplish this, XYZ should create and/or fill a Senior Business Manager (SBM) position within the Sales Organization to serve four key functions within the overall sales process, Channel Single-Point-of-Contact (SPOC), Strategic Pricing & Product Marketing Management and Escalations. This DRAFT position would report directly to the VP, Sales as well as “dotted line” reporting into the CFO organization to ensure pricing and contract terms are in-line with corporate goals. i. Channel SPOC – In this role, the SBM is in direct control of all proposals and pricing delivered to clients via Channel partners to ensure that contract terms and post-sales support as well as pricing conforms to the XYZ business plan and model. This process is designed specifically to ensure consistency with regards to pricing as well as the terms of the design/proposal given to each client. ii. Strategic Pricing Management – Similar to role above, the SBM is also responsible for taking all data gathered from the sales team and crafting competitive deals in an expedient manner to ensure maximum use of XYZ resources as well as managing the sales cycle. In this role, the SBM in partnership with the SVP has the ability to make strategic pricing decisions and has the “Authority to Quote” as the representative to the CFO organization within XYZ. iii. Product Marketing Management – The within the strategic pricing and sales cycle management processes, the SBM is also in a unique position to understand what clients will/will not buy and the value they place on each product/feature in terms of making short-term purchase and long-term relationship decisions with XYZ. This intelligence can then be vocalized back to the Product House and CFO organization to drive the development of the product, features and strategic pricing. iv. Escalation Management – The final role the SBM would serve is to serve as an escalation point back to XYZ Senior leadership in areas where issues or price decisions are not enough to obtain business from key clients. This role can also utilize the Business Development Associate to perform post-sales follow- up to ensure a) services are installed on time, b) the clients objectives are being met, and c) overall client satisfaction to build long-term relationships. DRAFT − Custom Deal Process – Once the SBM has been put into place, the following process should be put into place: i. The Channel or Business Development Manager meets with a client and receives a “Request for Proposal” (RFP) to include an overview of the service(s), timeframes for installation, terms and conditions and strategic pricing to include: − Base price − Terms − Discounts ii. Channel/BDM fills out a basic online form to include size and scope of client needs to the Senior Business Manager to include: − Business Impact to XYZ Corporation − Total Revenue Opportunity − Probability of Sale (5) − Client timeline for making purchase iii. The SBM creates a competitive price based upon impact to XYZ (winning vs. losing business) within 3- 5 business days and returns to Channel/BDM. iv. Channel/BDM presents to client with SBM supporting via telephone if appropriate to assess situation and assist the VP of Sales, in closing sale. Based upon client feedback, the SBM and SVP can make further concessions if deemed appropriate within their P&L parameters designated by XYZ. If further concessions are required, SBM and SVP can appeal to CFO for assistance if deemed appropriate. v. SBM uses feedback from client to assess/re-assess pricing (to CFO) and products/features (to Product House) if required. Note – This process also serves the purpose of ensuring that Channel Sales involves XYZ with all client meetings and price proposals and that the appropriate XYZ BDM is in-the-loop on the opportunity for long- term relationship building and service continuity for the purposes of service retention c. Marketing/Traction Programs – Once the major first strike clients have been identified by XYZ, appropriate traction program should be created that will include: DRAFT − − − − − Advertising via trade magazines, the Internet, Email and mailers Initial pricing/discount plans for early adopters Sales/Channel training to present XYZ value-add and product silver bullets Customer awareness – Trade shows, brochures, presentations, WebEx conferences and meetings Go to Market Tools and Processes: ! Dynamic Content ! Business Podcasting "Studio in-a-box" ! Traffic Building ! Search engine optimization (SEO) ! Pay-per-click (PPC) advertising ! Pipeline Building ! Website monitoring ! Website chat and real time lead qualification d. Marketing Communications – Associated documentation and materials to be used for public consumption including white papers, brochures, presentations, pricing templates, competitive analysis and product silver bullets to be used by the sales/channel and the Marketing organization to inform clients. This material should be created by XYZ Corporation as soon as possible to maximize ROI and minimize the sales cycle to include the creation and growth of the Sales Pipeline via their CRM system. C. Business Opportunity Development – The final step to becoming operational is putting into place the means to find clients, develop opportunities, construct competitive proposals including features and pricing, delivering it to the clients in a fashion that emphasizes the value of the product and an ongoing relationship with XYZ, installing the product in a timely manner and then following up to ensure customer satisfaction to maintain long-term relationships. A subset of this process is developing the tools and metrics to monitor and analyze the process to ensure maximum success. 1. Sales Process – The first step in this area is to develop a consistent sales process that allows XYZ to uncover client needs to and put forth a competitive proposal that will capture the client’s interest and lead to a successful sale. The process needs to be documented and managed on a consistent basis to understand the overall “sales cycle” which allows XYZ to know the anticipated timelines and revenue outcomes of a typical successful sale. As time progresses this sales cycle becomes imperative to XYZ in terms of managing resources and financial expectations of the corporation and the Product House. 2. Business Tools – The second step in the area which goes hand-in-hand with the sales process is the development of business tools that assist the BDM do his/her job successfully while providing the intelligence to Sales and Corporate Management to manage the business and make adjustments real-time as needed. D. Business Opportunity Development – In order to gain as much traction as quickly as possible, XYZ should target 4-5 verticals immediately within the NYC, LA, Dallas and DC areas that are high visibility or have brand issues. Within the verticals, 3-4 clients for each should be selected based upon current affairs, existing relationships or existing clients within the same vertical. Each BDM must establish a “road map” to build a sales funnel from client identification to contact to meeting to follow up to close and track each component in Sugar with constant updates to ensure accuracy as well as build a complete profile of the client. 1. Sales Process – After the verticals and clients have been identified, KDMs need to be identified for contact. Based on that client’s business model, a SWOT analysis should be created and marketing materials customized for the vertical and client with a clear message depicting the value-add of XYZ and Product 1/Product 2. DRAFT 2. Business Tools – What is XYZ using now, Hoovers, D&B? a. CRM – To be filled in after a review of the current SUGAR system. III. Timeline The following are recommendations on which actions should take place over the next 1-6 months to develop a successful sales organization and begin creating short- and long-term sales opportunities in line with XYZ’s 2008 Business Plan. Mid-September – October, 2007 1. Sales Organization Development – The first and most essential task is to begin interviewing candidates for New York and Washington DC with the goal of finding an SBDM for each city to start, followed by a second BDM in each city. By finding a senior experienced manager, XYZ can start the opportunity development process almost immediately by hopefully tying into the new employee’s already expansive knowledge of the marketplace and key client contacts. Ideally the SBDM will also have gained enough momentum within the first 30 days to help coach and mentor the BDM hired soon thereafter. 2. Job Titles/Description Finalization – These need to be completed and ready for posting on the Internet by 9/21/07 if not sooner to follow the timeline created above. 3. Salary & Compensation Plan – These plans need to be finalized and approved before October 1st in order to discuss with top candidates during the hiring process. 4. Candidate Interviews & Hiring – Once these are posted (9/21/07) expect the process to take (at a minimum) 21 days to find top candidates. The best expectation is an offer can be made by October 1st and first day of employment on 10/8/07 however top candidates will most likely require at least 2 week’s notice at their current jobs making a more likely start date of 10/16/07. 5. Initial Training – A basic training course should be assembled immediately to allow for quick implementation once new candidates are onboard. Ideally, the training should be done with multiple BDM’s (at least the first two SBDM’s) to help create a team environment and allow for a support system as the two start through the process of developing new opportunities. Note – It is highly recommended that XYZ consider both SBM position ASAP and either hire the position externally or fill it internally (at least on an interim basis). The sooner this position is created, the faster both the internal and external sales resources will understand and follow the designated strategic pricing process to ensure consistency with clients and make necessary adjustments to pricing if needed based upon real-time market data. Although not recommended, this roll can be handled short-term by the SVP until such time as a full-time resource can be brought on board. November 1 – December 31, 2008 1. Custom Pricing/Proposal Process – This process itself needs to be agreed upon by XYZ ASAP and created early enough for new hires to learn and follow the process starting January 1st. Because there are already Agency representatives (Channel) proposing Product 1 and Product 2 services to their clients, the sooner it is implemented and delivered to the Channel, the sooner the process will be followed and XYZ can begin controlling the pricing information delivered to clients and expedite the Sales Cycle. 2. Sales Territories – This is not a critical requirement but should be resolved ASAP as new BDM’s come onboard to establish boundaries for each territory to ensure maximum efficiency. 3. Quota Assignments (2007-2008) – Same as the above since a quota system really not apply until January 1, 2008. Any sales made before then should not be expected as it will take at least DRAFT 30 days for new BDM’s to ramp-up putting them into December and the holiday season which is traditionally slow. It is however important valuable time for building lead lists and a sales pipeline to hit the road running in January. 4. Job Performance and Management Plan – Same scenario as Quotas. Needs to be determined by December and “socialized” with each BDM so they understand how they will be evaluated starting January 1st. 5. Sales Support Process – Although a lower priority, establishing this role and hiring before YE2007 will greatly enhance success factors for the BDM’s as of January 1st. 1st Quarter, 2008 1. Long-term Training – Key to long-term retention of top employees and customer satisfaction, a more formalized training program should be developed for 2008 to include instructor-led, online and self-paced courses to grow skills and knowledge. Note – This is an area that companies typical put a low priority on because of the cost and time it takes BDM’s out of the field however it is highly recommended that XYZ focus on this when considering the larger impact of losing employees after one-year due to career dissatisfaction.
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