Corning CAH GOLD Connections Meeting 22 January 2019 David Moser - - PowerPoint PPT Presentation

Corning CAH GOLD Connections Meeting

22 January 2019 David Moser CAH Account Manager Eric Dvorak PLM, C&A Hien Nguyen CAH Account Manager

Information Security

This presentation contains Corning Restricted information and is intended solely for those with a need to know. It may not be distributed, in whole or part, in any form by any means, or by any person or organization without authorization from Corning Incorporated.

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Welcome and Introductions

GOLD CAH CORNING BS Cable Company Kevin Mooney PLM, C&A Eric Dvorak C Enterprises Steve Yamasaki Technology/C&A Eddie Parkman Lynn / GCS Mike Boulanger Account Manager (CAH) David Moser Lynn / GCS Scott Lewis Account Manager (CAH) Hien Nguyen CP Technologies Rick Hsu Application Engineer Spencer Greer Netsource Kevin Ladabouche Netsource Phil Morin Zero Connect Steve Rockwell Zero Connect Jeff Van Polen

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Agenda

Start Time End Time Duration Description 12:00 12:10 10 min Introductions 12:10 12:20 10 min Marketing Updates / Logo 12:20 12:35 15 min Market Update 12:35 1:05 30 min GOLD Program Refresh Update 1:05 1:15 10 min BREAK 1:15 1:45 30 min GOLD Program 2019 Focus 1:45 2:00 15 min Q & A

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OEM Sales Organization

New organization in place to support the growth

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Assemblies and Components Product Line Mgmt

Current organization expanding to support the growth

Global Cable Assemblies Global Connectors & Adapters

Marketing Updates

David Moser

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Marketing

Change to Logo

• Corning changed CAH Connections GOLD Program Logo on 01.01.19
• New logo should be used going forward and changed on electronic documents

by end of 1Q’19.

• Use of current logo permitted on hard goods marketing can be used until

exhausted.

• Logo should be used in accordance to Corning’s standard requirements*.

* Note: Corning Logo Requirements will be provided via email

Market Updates

David Moser / Eric Dvorak

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Market Drivers

Network Operators need fiber, and more of it

IP Traffic 20% CAGR Crossing E-O Chasm Fiber Rich Networks

In 2021 80% Video 27B Connected Deices 60% Mobile Networks are stressed Fiber is needed …and more of it.

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Market Size

Third part market size estimates for 2018 1&2F Jumpers

Customer segment Telecom Datacenters LAN Network elements Last mile Enterprise Hyperscale Total NA EMEA APAC ROW Market size by geography $195M $102M $294M $551M $213M $96M $53M $49M $76M $10M $42M $20M $93M $114M $38M $47M $25M $119M $334M $154M $10M $4M $33M $27M $12M

LAN

• Jumpers supporting local area networks for enterprises

Datacenters

• Server connectivity and switch to router within data centers

Telecom

• FTTx, hubsites, towers, and PoP sites

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Market Size

Opportunity to grow lies outside of Corning’s 22% Share

Corning Gold CAH Corning

1&2 F jumpers NAFTA EN

Corning Branded Generic

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Competitive Total Cost

• Enable Corning to

focus on standard & high volume products Advantaged Customer Access

• Increases access

& maintains Corning Specs Differentiated Optical Solutions

• Custom &

Quick turn capabilities

Corning Gold CAH Program

Gold Program aligns to Corning Strategy for Growth

`17 `18 `19 `20 `21 `22

• Our vision, is to say yes to every single
• pportunity for cable assemblies
• To Protect, Service and Grow

the Corning brand within the cable assemblies market

• Corning strives every day to have the

best level of service, customer specifications, at the lowest cost

• Corning’s big and complex operations

have limitations

• Maintain control of buying process
• Partners for agility and customization

CAH Partnership Revenue Growth

Gold Program Value and Refresh

Eric Dvorak / David Moser / Hien Nguyen

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Corning Gold CAH Program

CAH Connections Program Value Proposition

• Formidable voice in

the market that creates “groundswell” to reinforce Corning spec

• GOLD salesforces

call distributors everyday asking for business Corning is unable to fulfil

Force Multiplier

• Same day to 72 hour

turns to meet low volume, customization customer needs

• Standard and

customized assemblies from low to high fiber count … all connector options

Quick-turn Capabilities

• No other Corning

competitor offers this SERVICE to its customers

• GOLDs work

exclusively through distribution to provide high quality quick turn, Corning assemblies when Corning is unable

STRATEGIC Competitive Advantage

• GOLDs lead with

Corning to mitigate exposure to competitive

• fferings
• Ensures when

customer asks for Corning they receive Corning

Defend Corning Spec

• Due to high margins
• n Corning
• pportunities, GOLDs

drive Corning spec at customers not currently using Corning products

Drive Corning Spec

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Corning Gold CAH Program

Leverage each other's strengths to protect Corning spec

• Fast Ship program ~ 3 days
• Quick turn requires

babysitting, pick our battles

• Say YES to any Cable

assembly opportunity

• Arm sales force with tools to

deliver upon commitments

• Path to lowest cost drives

standardization

• 5 day workflow for new quotes
• Custom Hyperscale project
• Special labeling business
• Tail Management (i.e MTRJ,

Composite)

Lead Time Customization

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Corning Gold CAH Program

Opportunities Identified

• Feedback received on concerns on:

– Pricing – Distribution/Sales not supporting the program – Concerns about the future of the program

• Lack of onboarding tool for new SE to show program’s value
• Stopped supporting audit program and product evaluation

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Corning Gold CAH Program Refresh

Refreshing and Changing the program for future success

Improvements to CAH Gold program:

Better Control of buying process Strengthen Corning Sales relationship Protect the Golds Reinstate Audit program Support for Non-Corning business (AFOP service and price)

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Corning Gold CAH Program Refresh

Refreshing and Changing the program for future success

Improvements to CAH Gold program:

Better Control of buying process Strengthen Corning Sales relationship Protect the Golds Reinstate Audit program Support for Non-Corning business (AFOP service and price)

COMPLETE

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Better Control of buying process

Golds complement CAB to protect Corning Spec

Corning Driven Opportunities Protects and Grows Corning brand

CAB Golds To say YES to all opportunities, Partnership needs to be an efficient machine

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Better Control of buying process

If Corning cannot deliver, distributor keeps control

Customer

Current State:

1) COC Sales drives demand 2) Customer reaches distribution 3) Distribution contacts Corning to fulfill 4) If Corning can’t fulfill, distribution goes elsewhere

???

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Better Control of buying process

Corning to direct opportunities to Golds

Customer

Future State:

1) COC Sales drives demand 4) If Corning can’t fulfill – Hand off to CAH via SE and Distribution collaboration 5) CAH provides product to distributor 2) Customer reaches distribution 3) Distribution contacts Corning to fulfill

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Corning Gold CAH Program Refresh

Refreshing and Changing the program for future success

Improvements to CAH Gold program:

Better Control of buying process Strengthen Corning Sales relationship Protect the Golds Reinstate Audit program Support for Non-Corning business (AFOP service and price)

COMPLETE COMPLETE

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Strengthen Corning’s Sales relationship

Relentless commitment to Gold Value Message

Exposure to GOLD Program

• National Sales Call

> 100 ppl

• ES University

> 150 ppl

• Customer Care

> 45 ppl

• New Sales On-Boarding > 25 ppl
• Regional Sales Calls

> 75 ppl

• Increase Interactions w Regional

Managers re: GOLD value 7 ppl

• Tighter Engagement w Local Sales

and GOLDs (small wins) 13 ppl Examples:

• SE RSM and FSE met with GOLD and agreed to filter all their business Corning

is unable to service through the single GOLD … GOLDs being more proactive!!

• FSE w GOLDs in their territory are becoming more aggressive in promoting

GOLDs … helping others figure out how work with and the benefits of the GOLDs

• GOLDs growing relationships with Corning functions … CAB, PnP

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Strengthen Corning’s Sales relationship

Repeated trainings and support tools drive Gold Message

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Corning Gold CAH Program Refresh

Refreshing and Changing the program for future success

Improvements to CAH Gold program:

Better Control of buying process Strengthen Corning Sales relationship Protect the Golds Reinstate Audit program Support for Non-Corning business (AFOP service and price)

COMPLETE COMPLETE On Target END 1Q’19

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Protect the Gold’s

“Plus Corning” will only be offered to our Gold CAH’s

PLUS

Distribution/OEM/ Non-Gold CAH

Channel Brand Timing Corning: Today AFOP (SV): Today Corning: Q1 AFOP (SV): Today Corning: Q2 24 Hr Shipping Corning: Q1

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Protect the Gold’s

We have no intent on expanding in North America

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Corning Gold CAH Program Refresh

Refreshing and Changing the program for future success

Improvements to CAH Gold program:

Better Control of buying process Strengthen Corning Sales relationship Protect the Golds Reinstate Audit program Support for Non-Corning business (AFOP service and price)

COMPLETE COMPLETE COMPLETE On Target END 1Q’19

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Reinstate Audit Program

We are refreshing and reinstating the AE Audit Program

• Validate Corning processes

are followed

• Provide feedback and

recommendations

• Provide on-site expertise to

support you

• Random sampling of Gold

Assembly products

– Packaging – Ferrule Inspection – Geometry test – IL/BR – Cross section

On Site Visits Product Audit

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• Very positive audit results
• GOLDs continue to invest in

technology and growth

– Obtaining new capabilities to broaden GOLD CAHs portfolios Reinstate Audit Program

AE Audit Program has Resumed

• 7 Audit completed
• Positive, candid conversations
• n issues hindering GOLD

growth

– Project Pricing

• Market condition discussions

– Growth in adjacent markets – Spikey demand at lower rates – Demand for Off-Shore and Generic continue to grow

On Site Visits Results

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Corning Gold CAH Program Refresh

Refreshing and Changing the program for future success

Improvements to CAH Gold program:

Better Control of buying process Strengthen Corning Sales relationship Protect the Golds Reinstate Audit program Support for Non-Corning business (AFOP service and price)

COMPLETE COMPLETE On Target END 1Q’19 COMPLETE COMPLETE

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Support for Non-Corning business

Faster and more competitive AFOP components

• Fully integrating AFOP Components
• AFOP connector line to be Corning’s standard BOP
• Pricing to be more in line with market pricing

Benefits exclusive for Golds:

• Add Components into 24 hr ship program
• Preferred pricing for Day to Day use

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Corning Gold CAH Program Refresh

Refreshing and Changing the program for future success

Improvements to CAH Gold program:

Better Control of buying process Strengthen Corning Sales relationship Protect the Golds Reinstate Audit program Support for Non-Corning business (AFOP service and price)

COMPLETE COMPLETE COMPLETE COMPLETE On Target END 1Q’19

Gold Program Value and Refresh

2019 Focus Areas

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Opportunities Targeted in 2019:

Quarterly Meetings w Distributors (Corp.) Capitalize on small wins to build “Champions” for the GOLD Program Facilitate greater interaction with STRAN and Gilbert … additional products into GOLD Program. Project Quote for each territory to make GOLDs competitive w Corning CAB Project Pricing Driving AFOP opportunities to GOLDs

Corning Gold CAH Program Refresh

2019 brings Exciting Opportunities

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Corning Gold CAH Program Refresh

Face-to-Face meetings drive Partnership and Alignment

Opportunities Targeted in 2019 :

Quarterly Meetings w Distributors (Corp.)

Alignment of Strategies Corning / GOLD Cable Assembly Strategy Distribution Cable Assembly Strategy Agreed Upon Expectations Use of Project Pricing Policing of Project Pricing Holding Corning Spec Sharing of Information Market Dynamics Pricing Competition Products

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Opportunities Targeted in 2019 :

Quarterly Meetings w Distributors (Corp.) Capitalize on small wins to build “Champions” for the GOLD Program Facilitate greater interaction with STRAN and Gilbert … additional products into GOLD Program. Project Quote for each territory to make GOLDs competitive w Corning CAB Project Pricing Driving AFOP opportunities to GOLDs Drive Corning CAB/CAH strategy to position GOLDs

Corning Gold CAH Program Refresh

2019 brings Exciting Opportunities

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Opportunities Targeted in 2019:

Capitalize on small wins to build “Champions” for the GOLD Program

Daryll Kerns Todd Dameron CarrolCannon Bill Patterson Terri Schiavello Ken Depalo Rick Ruiz Dave Sramek Ashley Kelly Brett Burch Shane Leary Nancy Du Carolyn Hollway 13 Known Referrals to GOLDS Since June

Corning Gold CAH Program Refresh

Seize Momentum built in 2018 by “word of mouth”, Promotion

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Opportunities Targeted in 2019:

Quarterly Meetings w Distributors (Corp.) Capitalize on small wins to build “Champions” for the GOLD Program Facilitate greater interaction with STRAN and Gilbert … additional products into GOLD Program. Project Quote for each territory to make GOLDs competitive w Corning CAB Project Pricing Driving AFOP opportunities to GOLDs Drive Corning CAB/CAH strategy to position GOLDs

Corning Gold CAH Program Refresh

2019 brings Exciting Opportunities

More and more FSE working w GOLDs

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Opportunities Targeted in 2019:

Facilitate greater interaction with STRAN and Gilbert … additional products into GOLD Program.

Corning Gold CAH Program Refresh

Corning can support GOLDs’ moves into Adjacent Markets

Military / Aerospace  Military Tact, Naval Shipboard Oil & Gas  Rig Automation, Top Drive Controls,

Communication Networks

Commercial / Industrial  Broadcast, Cyber Security, Wind

Energy, Mining

CORNING Gilbert

Broadband Drop Conn & Acc Broadband Trunk & Distribution Connectors & Adaptors RF Microwave Connectivity

STRAN and Gilbert Product will not be covered by GOLD Warranty at this point

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Opportunities Targeted in 2019:

Quarterly Meetings w Distributors (Corp.) Capitalize on small wins to build “Champions” for the GOLD Program Facilitate greater interaction with STRAN and Gilbert … additional products into GOLD Program. Project Quote for each territory to make GOLDs competitive w Corning CAB Project Pricing Driving AFOP opportunities to GOLDs Drive Corning CAB/CAH strategy to position GOLDs

Corning Gold CAH Program Refresh

2019 brings Exciting Opportunities

More and more FSE working w GOLDs Offer GOLDs broader scope of products

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Opportunities Targeted in 2019:

Corning Gold CAH Program Refresh

Streamline Project Pricing and Allocate Sales Credit

Project Quote for each territory to make GOLDs competitive w Corning CAB Project Pricing 1. Corning develops pricing where GOLDs would be more competitive in Project Pricing opportunities* Benefits:

• Engages Corning Sales
• Polices Distributions’ use of Project

Pricing

• RSM authorizes which enables

them to allocate credit.

• Streamlines pricing decisions

2. A Regional Quote is issued to each RSM. 3. When GOLD is in situation to need pricing it contacts local FSE. 4. Local FSE assesses situation and escalates to RSM for approval.

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Opportunities Targeted in 2019:

Quarterly Meetings w Distributors (Corp.) Capitalize on small wins to build “Champions” for the GOLD Program Facilitate greater interaction with STRAN and Gilbert … additional products into GOLD Program. Project Quote for each territory to bring GOLD prices in-line w Corning CAB Project Pricing Driving AFOP opportunities to GOLDs Drive Corning CAB/CAH strategy to position GOLDs

Corning Gold CAH Program Refresh

2019 brings Exciting Opportunities

More and more FSE working w GOLDs Offer GOLDs broader scope of products Must be authorized by RSM and FSE

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Opportunities Targeted in 2019:

Quarterly Meetings w Distributors (Corp.) Capitalize on small wins to build “Champions” for the GOLD Program Facilitate greater interaction with STRAN and Gilbert … additional products into GOLD Program. Project Quote for each territory to bring GOLD prices in-line w Corning CAB Project Pricing Driving AFOP opportunities to GOLDs Drive Corning CAB/CAH strategy to position GOLDs

Corning Gold CAH Program Refresh

2019 brings Exciting Opportunities

More and more FSE working w GOLDs Offer GOLDs broader scope of products Must be authorized by RSM and FSE Corning identify price driven oppty and position AFOP

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Points of Contact for support and questions

General Questions contact: CAH GOLD - David Moser: david.moser@corning.com AFOP – Hien Nguyen: Hien.Nguyen@Corning.com Technical Questions contact: CAB - Greg Shields: ShieldsGM@Corning.com CAB - Pahnou Vue: VueP@corning.com C&A - Eric Dvorak: DvorakED@corning.com Cable - Marisa Bazemore: BazemoreMK@corning.com

Q&A