Mindy Ouren Final Sales Presentation: Krush 11/1/11 Section 1: - - PDF document

Mindy Ouren Final Sales Presentation: Krush 11/1/11

Section 1: Prospect Definition My buyers name is Casey Smith. He is currently the Senior Buyer at Costco. He has held this position for two years. Smith’s responsibilities include managing a portfolio of over 120 products, developing the portfolio strategy, and negotiating yearly contracts with vendors. He is currently working towards his Master’s in Business Administration from Washington State

• University. He earned his BA in Construction Management from the University of Oregon in
• Portland. He enjoys fishing and socializing. He is a member of the WSU MBS Association and

the National Buyer Association. Some information about Costco is:

• Costco Wholesale Corporation operates an international chain of membership
• warehouses. In order to shop at Costco, one must be either a Business, Gold Star,
• r Executive member.
• Costco is a Washington corporation that holds one of the largest and most

exclusive product category selections to be found under one roof.

• Categories include a variety of top quality national and regional brands with

100% satisfaction guaranteed.

• Warehouse sizes range from 73,000 to 205,000 square feet.

Section 2: Sales Call Objective My goal is to introduce the two varieties of big packs (1 and 2) of the Caramel Goldmine into Costco by the end of this sales call. S: Introduce the two variety packs M: Packs 1 and 2 (Two kinds) A: Achievable, only two varieties, not too complex. R: This has been performed before. T: By the end of this sales call. Section 3: Key Needs of the Buyer There are three identifiable needs of Costco. One of them is increasing sales in the candy

• category. Another is obtaining a product that is unique and draws interest of the consumers. Also,

that the product is available in a large amount of packaging.

Mindy Ouren Sales Presentation Script Approach: M: Good Morning, Mr. Smith. It’s nice to see you! Thank you for meeting with me this morning. It was nice seeing you at the Make-A-Wish Fishing Fundraiser in mid-October. J: Hello, Ms. Ouren. It’s great to see you too. That certainly was a great event. M: Myself and others at Tons of Fun Candy are excited for this opportunity of discussing Caramel Goldmine with you today. J: I look forward to hearing what you have to say. M: Well now, Mr. Smith, if you don’t mind, I’m going to set my materials down on your table. Here’s my business card. Did you get a chance to review the information that I faxed over to your secretary? J: Unfortunately, I did not. M: I understand you are a very busy person Mr. Smith. I brought an extra copy of my materials for you to keep. Before I get started, is there anyone else that should be here in this meeting today? J: No, Ms. Ouren. I am the decision maker for any business that may come out of this meeting. M: Okay sounds great, well let me get started by explaining exactly why I am here. Myself and the other CPS sales representatives see great potential in reaching out to Costco. The company you run here is known for it’s high quality products at low prices, and we really value that in companies we work with. [Compliment Approach] Are Costco’s confection sales currently among your top three food categories? [Situation] J: Confection sales are not currently one of our top three food categories in sales. Our top three food categories are carbonated beverages, milk, and salty snacks. M: Okay, so confections sales are currently on the lower end? Have you noticed any changes in the confection department in your store? [Problem] J: Unfortunately, yes. We feel a lot of pressure to increase our sales in the candy category. Our problem is, we can not find anything unique to draw attention to our candy. M: So by not having a unique product to draw attention to your confection category, you’re experience a lull in sales as a result? [Implication] J: Yes, that is absolutely correct. M: So I’m hearing you state that Costco is looking for a unique way to draw interest to the confection department? Yet also I can imagine your store wishes to maintain large quantities of products at a reasonable price? Am I correct?

J: Yes. M: If I had a product available to you that will increase your confection sales and target new customers to the confection department, would you be interested? [Need Pay-off] J: Definitely! That sounds great! PRODUCT M: Okay, let me start explaining Caramel Goldmine to you. This gourmet chocolate bar is more convenient than typical gourmet chocolate [Feature]. Convenience is a quality that consumers everywhere are looking for, especially those in the Costco target market [Advantage]. Obviously, confections are quite convenient. However, you do not see gourmet chocolate as convenient as Caramel Goldmine. By providing gourmet chocolate in a bar form, consumers who are on-the-go will be able to enjoy a luxurious and delicious treat. This will in-turn draw many customers and increase your sales by 3% within one year. [Benefit] Would this convenience in a gourmet product support the uniqueness of a product you’re looking for? [Letting customer talk] J: Yes, that would be great to have in a product. M: As you can see on this graph, Caramel Goldmine scored 15% higher in taste tests with consumers than leading candy bars [Feature]. The advantage to you is that customers will prefer this product compared to other products [Advantage]. Therefore, this benefits Costco through the acquisition of new customers since Caramel Goldmine is a newer product [Benefit]. Does this align with your needs and wants for a new confectionary product? [Letting the customer talk] J: I understand that yes, I have already tasted the product before. But what about consumers who have no idea what this product offers, how will the marketing deliver the message of it’s great taste? [Objection] M: That is a great question, though many consumers may have never tasted it before, it’s definitely not going to prevent warehouses like yourself from purchasing this product and have it

• promoted. I will touch base on the promotion opportunities shortly. First I want to talk about the

amazing market share that Caramel Goldmine currently holds. Does this sound okay? J: Sure! M: Caramel Goldmine is among the leaders in the candy bar market share in Fargo, ND, holding an 18% market share [Feature]. This means that the gourmet candy bar is competing with top products such as Snicker’s and Milky Way [Advantage]. In turn, Caramel Goldmine will compete

• n your shelves alongside big-name brands and it will indeed generate additional sales to your

confection department by 3% in this next year.[Benefit]. How does this sound for your company? [Letting the customer talk] J: That is outstanding! If we can deliver that message to customers, or get the product out there, then this could be very successful! M: Great! Let’s take a look at these charts and see how successful Caramel Goldmine has been for others. [Demonstration]

M: In one year, Caramel Goldmine achieved significant gains on market leaders in the test market and actually became the third highest selling and second highest grossing item in the product category [Feature]. With an impact like this in one year, it is understood that this product indeed draws customers to try this product [Advantage]. The real benefit to you is that, with facts like this, you can understand that this product will indeed be successful and draw new and existing customers to purchase more confections [Benefit]. I can personally guarantee that through word

• f mouth and other marketing elements that I will talk about later, you will see an increase in

existing users [Value Bundle] Does this product sound like a solution to increase your sales in confection products? [Trial Close] J: I’m just a little worried about the pricing that this gourmet product has. [Price objection] M: I am glad you brought that up today, Mr. Smith. I will talk about the pricing here shortly, but first I would like to explain to you the marketing benefits that come with Caramel Goldmine. [Postpone objection technique] Knowing how successful this product will be for you. I want to touch base on what our company does for Marketing internally and externally. Is that okay? J: Most certainly. MARKETING PLAN M: To coincide with the launch of Caramel Goldmine, a nationwide marketing campaign will take place to increase brand recognition. The budget in this first year is $30 million dollars [Feature]. These ads include national TV ads, wed advertising, mobile marketing, print ads, and

• ther in-store items that will all directly market to Costco’s target market [Advantage]. Without

this additional cost of marketing by Costco, you will be able to benefit from the effects of nationwide marketing, which will result in more business, and in turn, more sales [Benefit]. Do these nationwide opportunities sound beneficial to your store? [Let the customer talk] J: Definitely! M: At Tons of Fun Candy, I can personally provide marketing support in the form of displays, couponing, prints, and online advertising [Feature]. This ongoing support influences in-store activity for Caramel Goldmine [Advantage]. These different forms of advertising at my disposal will prevent Costco from creating additional marketing expenses [Benefit]. I will personally provide information on how to use these marketing elements to their fullest potential [Value Bundle]. Does this sound like something you may be interested in? [Trial Close] J: It sounds great, besides the fact that Costco does not accept coupons. Wouldn’t this option hurt

• ur company by not accepting coupons? [Product Related Objection]

M: That is perfectly okay that Costco does not accept coupons, just like Kmart does not accept coupons [Simile]. The other marketing elements that I provide will indeed outweigh the drawbacks of not accepting coupons. In fact, Costco will still be able to benefit from coupons in the area because that is additional publicity and in-store visits. [Compensation] Are you still hesitant about the coupon offering? J: Nope, you addressed my concern wonderfully, thank you. M: I am happy to talk about this Mr. Smith. Another perk to the marketing plan is how we will integrate our strategic positioning research in to your store. By placing the product near the

register and in the candy section, Caramel Goldmine will reach to customers who don’t realize they are interested in confections. Caramel Goldmine will find consumers like a dog finds a bone! [metaphor]. Caramel Goldmine is available in bulk amounts which I will talk about here shortly. I understand I am throwing a lot of information at you today, do you have any questions up until this point? J: Yeah, it sounds great. But what about the package rates and group bundles? BUSINESS PROPOSITION M: I am very glad you asked that Mr. Smith. Let me first start with the pricing. A regular sized Caramel Goldmine bar is priced slightly higher than its competitors in the snack bar category. This is derived from both the taste and quality. As you can see, Caramel Goldmine cost to retailers is about $0.89 while a competitors price may be around $0.75. Understanding Costco’s 10% markup cost, Caramel Goldmine can still be sold within an affordable price of only $0.98. In addition to those prices lies our big pack options, which is what Costco is going to want to buy. The big pack 1 has 28 king size bars for only $27.90. The big pack 2 has 56 king size bars for

• nly $54.00. Do these prices seem reasonable for a product you’re looking for?

J: Definitely! They seem very reasonable. M: Great, let me talk about the different varieties we offer. As you can see on this visual, there are two different varieties of Caramel Goldmine available, milk and dark chocolate. We also five different size options [Feature]. By having many different options, you have the option of selecting which ones will thrive the best in Costco [Advantage]. The real benefit to you is that Caramel Goldmine can be purchased from consumers in a variety of forms, the options will lead to an increase in repeat purchases from satisfied consumers [Benefit]. When you invest in this product, you will have my personal commitment to ensure that implementation runs flawlessly [Value Bundle]. How does that align with your interests? [Trial Close] J: It seems to align very well. M: Mr. Smith, I want to tell you that doing business in confectionary items looks scary, but it is a very promising business. The average U.S. Consumer spent $91 on confectionary products in this current year. Over $51 of that has been spent on chocolate. If you want a product that is unique and possesses high quality. Then Caramel Goldmine is right for you. I would like to show you an example of what a store similar to yours has purchased before if that’s okay? [Trial Close] J: Sure, I’ll see what you’ve created. SUGGESTED ORDER M: I suggest you order 40 of each variety of packages. Both the milk and dark chocolate. I also suggest that you divide those orders of 40 even among the big pack sizes. That you would get 20

• f big pack 1 and 20 of big pack 2. This will allow you to observe the success of your first

months sales. J: Great, when will we be able to see the product? M: I can have it delivered on Monday, November 14th. I will fax a receipt over tomorrow and ensure delivery is in process by this Friday. You will have the product on your shelves at least by

Wednesday, November 16th. You have made a great decision with this gourmet product today, sir. Confection sales are high in demand for the Holiday season, and you will not be disappointed with the results. You run a great program for confectionary retail growth. With a 3% growth in current sales increase, warehouse clubs are rolling in more candy than dollar stores, supermarkets, and Wal-Mart’s. J: I am very excited to have this new business with you Ms. Ouren. I am confident that this product will surely meet Costco’s needs. M: Excellent, now if I can just have you sign right here? Thank you very much Mr. Smith. It’s been a pleasure visiting today and I look forward to checking in on Monday with your product’s delivery progress. I am always a resource regarding Caramel Goldmine if you ever have any additional questions. J: Wonderful, Thank you again, Ms. Ouren. Have a wonderful day. M: You as well, Mr. Smith. Talk to you soon.