Presentation Transcript

1. Central Sales Meeting November 9 - 10, 2010
2. Agenda Tuesday, Nov 9th Morning 8:00-12:00, 30 minute break at 10:00 FP Goals, Q3 sales results, Q4 importance Fred Region performance & core brand sales Fred Q4 target review & discussion Fred Envelope and Digital strategy update Fred/Chris/Jeff Q&A All Lunch 12:00 – 1:00 Tuesday, Nov 9th Afternoon1:00 – 5:00, 30 minute break at 3:00 NP Sustainability platform review Kristen Conservation update/positioning/marketing Kristen Packaging update Fred Label training/review Jeff DSMP review Fred/All Dinner – Montgomery Inn Boathouse 6:30 Reservations Wednesday November 10th8:00 – 2:00, 30 minute break at 9:45 Territory Presentations/best practices Sales Team Cold calling, End User selling Fred & Gary Q&A All Spot 2, regional projects Chris 2011 EBB, SAP template Fred Q4 priorities alignment Fred
3. FP Goals Target $260,000,000 revenue 200 million lbs. GOAL $275,000,000 210 million lbs.
4. FP Results * Included a $17.6MM charge for closure of Ripon mill
5. Central Region Performance How did we do in MRQ? Are we on track? YTD Sep: Volume @ 72% of target; up 2.2% compared to p/y. Revenue @ 78% of target; up 2.6% versus p/y.
6. Region Performance Rolling 8 Quarters Improving ASP Q4 Target – other Qtrs are actual
7. Q4 2010 Sales Targets Q4 revenue represents a 4% growth over Q4 2009 Finish Strong!
8. Q4 Objectives – How will we do it? Envelope program Target $250,000 ($8000 per rep) Goal $500,000 ($16,000 per rep) SUPER Goal $750,000 ($24,000 per rep) Digital strategy 50,000 lbs. per region (10,000 lbs. orders x 5 locations) How are we doing? Packaging and Label Strategy 15% growth vs. P/Y Merchant sales presentations and targeted accounts Conservation Continue to work with merchant sales to target business Position the grade properly – lead with Environment, then Sundance and lastly Conservation Neenah Color Copy Spicer’s Paper in MSP, KC and STL Any opportunities for private label business? Strategic Account Plans Sales plans performance vs. goals DSMP Scorecards – SAP, Service, Conservation, Growth Incentive
9. Region Performance Are we all marching to the same drum beat in Q4? Do you know your specific objectives and plans to impact Q4 results? Do we have a common view of priorities? Are we personally committed to success?
10. Our top focus needs to be… Revenue! Revenue! Revenue!
11. Company Baseline, Domestic Merchant Business
12. Region vs. Company Performance (Domestic Merchant)
13. Territory vs. Company Performance (Domestic Merchant)
14. Territory vs. Company Performance (Domestic Merchant)
15. Territory vs. Company Performance (Domestic Merchant)
16. Territory vs. Company Performance (Domestic Merchant)
17. Territory vs. Company Performance (Domestic Merchant)
18. Territory vs. Company Performance (Domestic Merchant)
19. Territory vs. Company Performance (Domestic Merchant)
20. So how will we get there?(Opportunities) Leading with Core Brands at every sales call Digital Products Expansion Addressing local market product availability Are you presenting the stocking options? Envelope Availability What is needed to get support from our merchants in key markets? Drive home the availability and providing a competitive solution and alternative option
21. Challenges Attracting new profitable volume in a sluggish economy USA Today Report Recovering non repeat volume 1.8MM lbs of Comet in Q4 2009 Expect about 600-700,000 pounds in Q410 Kohl Department Store Holiday Card – 150,000 pounds Branded Identified lost volume with several end users
22. Digital Stocking Program
23. Gold Plan Stocking Recommendations 70+ Sku’s (15k lbs approx.) Using the stocking recommendation spreadsheet , these items can be modified based on the market location.  Exchange Options After 9 months slow movers can be exchanged for quicker moving digital items. (100% Digital items) After 12 months slow moving digital items can be exchanged for quicker moving digital items or non digital items ( 50% Digital, 50% Offset) After 18 months slow moving digital items can be exchanged for any item (100% non digital)  Personalized Marketing Collateral 10,000 digital sell sheets personalized with the Merchant info  SPOT 2 Analysis Would begin around month 8 Eligible for “Neenah Digital Quick Ship” guarantee option - customer pays nothing, Neenah picks up the cost of 2 day shipment.
24. Silver Plan Stocking Recommendations 40 – 70 Sku’s (8-10k lbs approx.) Using the stocking recommendation spreadsheet, these items can be modified based on the market location.  Exchange Options After 9 months slow movers can be exchanged for quicker moving digital items. (100% Digital items) After 12 months slow moving digital items can be exchanged for quicker moving digital items or non digital items ( 50% Digital, 50% Offset) After 18 months slow moving digital items can be exchanged for any item (100% non digital)  Personalized Marketing Collateral 5,000 digital sell sheets personalized with the Merchant info  Eligible for “Neenah Digital Quick Ship” guarantee, customer pays 50% Neenah will split the cost of 2nd day shipment with the customer.
25. Bronze Plan Stocking Recommendations Minimum 20 up to 40 sku’s (5k lbs approx.) Using the stocking recommendation spreadsheet these items can be modified based on the market location.  Exchange Options After 9 months slow movers can be exchanged for quicker moving digital items (100% Digital items) After 12 months slow moving digital items can be exchanged for quicker moving digital items or non digital items ( 50% Digital, 50% Offset) After 18 months slow moving digital items can be exchanged for any item (100% non digital)  Personalized Marketing Collateral 2,500 digital sell sheets personalized with the Merchant info  Eligible for “Neenah Digital Quick Ship” guarantee option, customer pays 100% Customer pays 100% of the 2nd shipment
26. Terms and Conditions Quick ship items ordered by 6PM EST will ship for second day delivery. Maximum quick ship order is 6 cartons. Maximum of 2 orders per quarter for the same item, after which that item must be stocked or is no longer eligible for quick ship Delivery will be within business hours, the second business day in most markets. Neenah Paper is not responsible for unforeseen transportation delays outside our control. All returned paper must arrive damage free and in saleable condition in full cartons
27. Digital Targets Status update Unisource Xpedx Midland Paper Lewis Paper Ris Paper Millcraft Paper Shaughnessy Paper Plans to secure business
28. Envelope SalesMonth of October
29. Envelope Sales thru November 4
30. Envelope Progress through Nov 5th
31. Envelope Targets Status update Unisource Xpedx Lewis Paper Midland Paper Ris Paper Millcraft Paper Shaughnessy Paper Plans to secure business
32. Area Sales Meeting Central RegionNovember 2010 Sustainability Platform Review
33. Water Usage FSC Fiber & Label Changes Renewable Energy Carbon Emissions Conservation Projects – Carbon Neutral Plus Policy Update
34. Water Usage Through state-of-the-art treatment plants, water is returned to the rivers with zero net impact. Waste Water Treatment Plants (WWTP) – Neenah Mill won 2008 Pulp and Paper Energy Efficiency Award Water released to the Fox River often is cleaner than when we brought it in for usage Once water has passed through treatment system, portion is brought back and recycled into the mill as process water – reduces amount of water needed. 10% Reduction in Water Use (from 2005 baseline levels) = Over 600 millions of gallons saved New capital investment system enhancements at Neenah mill should help reduce water consumption Reduces size of wet end, utilizes less water during cycle between color changes. Whole system will use less water Effluent color meter trial at Neenah mill will recycle water more frequently More opportunity to save water in system rather than flushing out.
35. FSC Fiber/Label Changes Fine Paper’s wood pulp is purchased from FSC controlled wood or FSC credit. FSC has new label standards that will be active by 1/1/2011. All certified entities will now have a new certification code (FSC® C011397) for on product labeling and the original Chain of Custody Code (SW-COC-000885) for off product labeling. Running change – both labels will be in the marketplace for several months as we run through inventory
36. FSC New Label Standard FSC RECYCLED RE-1 Present FSC Labels (FSC-STD-40-201) FSC MIXED MS-1 FSC MIXED MS-3 FSC MIXED – 30% recycled symbol FSC MIXED - no recycled symbol FSC MIXED – 80% recycled symbol FSC RECYCLED – 100% recycled symbol New FSC Labels (FSC-STD-50-001) Full Mini (Only White and UBW Environment)
37. Renewable Energy All mills send sludge to Fox Valley Energy Center – converted to steam to run FVEC. 2,400+ dry tons were sent to FVEC in 2009 0% landfilling of manufacturing waste Whiting mill takes steam from boilers – uses energy from steam to run PM #6 Energy from steam is used to dry paper on all of the PMs Hydro Power – Appleton mill generates up to 33% of their electrical needs from non-polluting hydro power from the river Wind Power – All three FP mills purchase wind-generated electricity. RECs are purchased through NextEra. (NextEra is the country’s largest producer of wind and solar power.) German mills – use heat recovery system that recycles the exhaust air back into the process Reduced CO2 emissions Munising mill – generates 90%+ of its electricity from steam now BIOMASS Project update: investigating plans to generate power from wood residue, selling the power to a mine and use green steam to power Munising Mill through the existing turbine generating green e and green steam to dry the paper .
38. Renewable Energy
39. Carbon Emissions Purchased RECs offset electrical emissions. Annual Emissions Do actual emissions meet the limits? No Yes Sell Carbon Allowances (Credits) On ICE/CCX “Bank” Carbon Credits Purchase Exchange Allowances known as Carbon Financial Instruments (CFI’s) on ICE/CCX Plan: to use revenue generated to fund restoration projects for Carbon Neutral Plus designation.* “Retire” our Credits for Carbon Neutrality Claims (Classics, Environment, Starwhite) Annual Emission Reduction Limits established by CCX: 1% per Year. NPI Commits to a 1%, or greater, reduction in CO2 emissions per year for 6 years from the baseline of 2005. *Restoration projects have been funded out of budgets as carbon credit value has deteriorated during recession.
40. Conservation Projects – Carbon Neutral Plus Partnered with WI NRF in 2007 to work on long term conservation efforts: Neenah made 3-year commitment to support the Foundation’s land management and conservation program which puts college grads in field and supports the Chiwaukee Prairie State Natural Area near Kenosha. Appleton Mill donated prairie grassland , additional property (which is part of the Fox Cities Greenways project), and property adjacent to the mill for public green space. Whiting Mill owns a 100+ acre island in WI River and maintains it as preservation property – with rich biodiversity. Reforestation project on the Osa Peninsula in Costa Rica with WI NRF and Friends of the Osa. Provides a safe habitat for 54 bird species indigenous to WI that migrate each year to this stretch of land. Competitive Advantage: Our Carbon Neutral Plus program stands out among our primary competitors including Mohawk.
41. Policy Update Cap & Trade Bill (Waxman-Markey Bill) stalled in Senate and is essentially considered a dead bill. Kerry-Lieberman-Graham Bill dead. Scaled down bill focuses on utilities only. FTC proposing stricter guidelines for marketers to reduce “green washing” Limits on labels for “green energy” More details on which type of renewable energy is used and how much of product is made with it. Will affect how recycled fiber is labeled as well. Green-e has launched “Re: Print Program”: Green-e certifies printers and paper lines that use renewable energy from natural sources like solar, wind, and low-impact hydropower facilities.
42. Conservation Business Review 2010
43. Conservation Sales – October & YTD
44. Conservation Sales YTD by Region
45. Conservation Sales by SalespersonCentral Region
46. Conservation Brand Portfolio Review – Forecast for 2010 = 1MM Lbs Profitability – VCM YTD 18% Sku Volume Breakdown:
47. Conservation Average Selling Price - $0.89 Competitive Positioning – Can compete in quality with 100% Loop, Via, Rolland. Priced more competitively (20%-40% cheaper) than Loop/Via.
48. Conservation Process to evaluate SKU additions Annual Volume Potential Stocking potential with major merchants Marketing to evaluate market opportunity and competitive positioning Measure results Marketing Support Reprints Advertising support in 2011

49. Label TrainingNov 9, 2010

50. Largest opportunity for success is in Wine, Beverage, and Food labeling
51. Market Opportunity Wine label opportunity includes all types of wines. Current market share for wine is 80% or about 8 million lbs Objective to maintain and grow by an additional 1 million lbs. Beverage includes micro-brews, bottled water, spirits, and organic beverages. Current market share is small, less than 1%. Objective to capture as much market share as possible. Food/Condiment includes packaging with indirect food contact such and bottled or canned products. Current market share is small, less than 1%. Objective to capture as much market share as possible.
52. Label growth will come from sources other than Wine Wine label 80% market share Consumer beverage Food Condiments Health and Beauty products
53. Two main ways labels are applied Pressure Sensitive (PSA) Elevate Printing Refinement Reduces order quantities economically Increase print colors economically Add brand security elements Add personalization elements Reduce eco-footprint Eliminate surprises via proofing/prototyping Mostly rolls Glue Applied A wide range of looks from premium wine stock to high gloss metalized film Excellent graphics reproduction and on-product durability Dependable high speed application A cost effective choice for high volume applications with few change A variety of performance characteristics from standard paper to full wet strength paper Always sheetfed
54. Cost Comparison PSA VS. Glue Applied
55. Glue Applied Technologies
56. Glue Labelers Mainly of the rotary type for high-speed applications, and the straight-through type for moderate speeds. Krones labelers, made in a vast variety of sizes, models and configurations, are the standard by which all are measured.  Glue labelers require change parts to run different bottles and/or labels. Machines are usually factory equipped to apply a body or full wrap label and optionally, neck and/or back labels. Users should chose a machines with the maximum capabilities they expect to use, as retrofitting to add neck labels on a body-only machine is costly and seldom practical.
57. What is a PSA label?
58. PSA Label make up
59. Liner Function
60. Typical label application
61. PSA Labelers Pressure Sensitive Labelers are mainly used on slower lines. The self-stick labels are fed into the machine off a spool and applied to the bottle. Machines with wrap around label capability have a wrap station to roll the label onto the bottle to assure adhesion. Getting pressure sensitive labels to adhere properly to bottles that have been filled (and are therefore cold and wet with condensation) can be a big challenge, so many operators label before the bottles are filled. Generally, 50-60 BPM is a high speed for pressure sensitive label applications.   
62. End Use Application
63. Application by label type
64. Printing technologies changing rapidly
65. NA digital install history
66. Estate clearly the market leader
67. Premium Label Paper Offering Brands Multiple weights Finishes: Vellum Laid Smooth Felt Embossed Colors: White Natural Kraft Black Attributes: No wet-strength Classic Wine Label 60# basis weight Finishes: Smooth Linen Laid Felt Colors: Solar White Solar White Recycled Classic Natural White Attributes: Non wet-strength FSC certified Estate Label 60# basis weights Finishes: Vellum Laid Smooth Felt Colors: White Natural Cream Bright White Attributes: Wet-strength
68. Terminology
69. Terminology MSI – Abbreviation for one thousand square inches. This is a unit of measurement that label material is purchased and sold in. (1,000 S.I.) PSA – Pressure sensitive adhesive Glue Applied – Refers to the process of how the label is applied to the container Lineal Feet – Distance in feet Mils - Describes thickness Wet-strength – does not mean waterproof, provides strength when wet. Litho Label – Usually refers to coated 1 side label. Ice bucket test – Subjective test where bottle is soaked in water. Cobb - Measures paper's water absorption rate and is expressed as the amount of water pick-up per unit surface area of paper by Tappi method T441. Width Diameter Width Diameter
70. Math Labelers talk in term of MSI (Thousand square inches) Weight of Roll/ (Basis Weight ÷ [Area of Basic Size]) × 2  = MS Lineal feet – feet in a straight line Roll Weight × [Area of Basic Size]) × 500 / (Basis Weight × Roll Width) × 12 = Linear Feet MSI = Weight/ (basis weight/ basic size) X2 Example 10,000 lbs of 60 lb text MSI = 10,000/ (60/ 950) x2 MSI = 79,239 $ Per MSI = Cost of paper/MSI Example = 10,000@ 1.30 cwt = $13,000 $MSI = $13,000/79,239 = $0.164 msi $ per Lft = Cost of the paper /Lft 10,000#’s 61in roll 60# text LF= 108,151 Example = 10,000@ 1.30 cwt = $13,000 $Lft - $13,000/lf = $0.1202 lf

71. Label tools, more to come..

    Estate label swatch Wine label papers folder Labels of the world Sample labels Mock label samples
72. Sales Performance Measurement at NP

    Brought to you by the letters…

    N Sales Performance Management Neenah Paper
73. How does DSMP relate to my business? What is the main focus area for the sales team? Show me the green, baby! REVENUE! How do I get revenue? Volume Realized Price What are the contributing factors?
74. Sales Performance Measurement
75. What do we mean by “Distribution”? NO! Do we mean “distribution” customers? NO! Do we mean transportation and distribution costs? For measuring sales performance we mean “Points of Distribution,” or POD
76. What is POD and how does this impact sales performance? What is POD? POD is a measurement that shows what percentage of our top selling SKU’s are resident in a given market 1 POD = 1 Fast Turning SKU per Customer How does POD relate to revenue? POD points out where there is a gap between market demand and supply—filling the demand will grow revenue! How do I improve POD? Identify disconnects in what is being stocked vs. strong selling SKU’s and recommend changes Collect data from customers and check local stock positions—do they have enough of the top-selling SKU’s?
77. Sales Performance Measurement
78. What do we mean by “Share”? NO! Do we mean letting people have some of our cookies? NO! Do we mean an ownership interest in a condo on the beach? For measuring sales performance, we mean Market Share!
79. What is share and how does this impact sales performance? What is share? Share is a measurement that shows Neenah Paper’s percentage of the overall Writing, Text, and Cover business in a market What is the source of this information? NP’s Market Share ~41% Volume ~45% Revenue Total WTC Market Customers provide as part of their 2010 incentive program Market insights provided by sales team How do I improve share? Identify areas where Neenah Paper is under-represented and work with the customers to improve our position This perspective is confidential and represents our best view of the market; this should not be shared in the marketplace without consultation with your ASD
80. How do we calculate share? We derive: Their total WTC purchases The total market Their market share Customer gives us our % share of their purchases Finally, we derive our share of the entire market
81. What’s next for D and S?
82. Sales Performance Measurement
83. What do we mean by “mix”? NO! Are we talking about what the Swedish Chef does to batter? NO! Are we talking about what DJ Jazzy Judy does in the club with her old vinyl records? For measuring sales performance, we mean Product Mix!
84. What is mix and how does this impact sales performance? What is mix? Mix is a measurement of how much of one product type you sell relative to all of your sales Why does mix matter? Not all pounds are created equal! How do I improve mix? Focus on the brands, baby! Understand mix and look for opportunities to influence with customers
85. Not all pounds are created equal = Profit per pound Non-Branded WTC Branded WTC Non-WTC
86. Breakdown of NP’s business Sales Focus Volume Revenue Profit Branded WTC Non-Branded WTC Non-WTC Studies have shown that there is a strong correlation between profit generated from your territoryand branded revenue sales I don’t know what he said, but I think he said to focus on branded revenue!
87. Sales Performance Measurement
88. What do we mean by “price” NO! Ah,ah,ah As in Vincent, the horror genius and the Count’s good friend…. NO! Ah,ah,ah As in “The ___ is Right”? For measuring sales performance, we mean Realized Price of our product!
89. What is price and how does this impact sales performance? What is price? Price is a measurement of how effectively we are managing the cost of our product to our customers Why is price important All about the Benjamin's, baby! Brand positioning Sets customer expectations on quality, service, and uniqueness What do you want—volume or price? Both. As Bonnie Lind would say, “we need to sell more things at a higher price to more people”…..but it’s a delicate balance How can I influence Price? Quoting Proactively manage contracts
90. Impact of Deviations List Price $100/CWT $85/CWT Price deviations means we need to sell more to attain the same amount of profit…or vice versa
91. Volume and price…a marriage made in heaven…. Volume Price
92. A Workshop for the Three New Tools Territory Scorecard with Metrics End User Report Contract Management tool (coming soon!) Oh, oh…tell me more! I can start using these to manage my business!
93. Territory Scorecard with Metrics New scorecards have been built to help you see Mix and Price, along with other important details about your territory Scorecards will be distributed quarterly Keep in mind that YOU will be measured against YOU—there is no “right” answer except perpetual improvement! Focus on two primary metrics for mix and price % Branded Revenue Price per pound Don’t forget volume—it’s all a balancing act! So, how do I read this thing….
94. “M” and “P” Scorecard Workshop % of revenue that is branded (green line)—use the axis on the right Bridge chart that shows why/how your overall territory price changed Illustration of the change in price of key brands—blue is current year, red is prior year Green dots show the change in revenue for these brands (use axis on right) Detail by category of volume, revenue, and price for this year and last Change in volume in Mlbs and % Brand/category % of overall territory Calculation that shows how the brand/category changed compared to last year by volume, price, and mix Brand categories and marketing groupings Bridge chart on how you get from your revenue in your territory last year to this year Total revenue by month for branded (blue) and non-branded (red) Summary of the change in the territory by cause (e.g. vol, price, mix) Impact of the change in brand mix within the territory
95. End User Report End user with brands that they have purchased Volume performance by varying periods to help you identify what you’ve landed and what you can work on landing in the future
96. Conclusion…this is not a destination, but a beginning…. Goal of DSMP is to help find opportunities for revenue growth
97. CLM Update SPOT 2 Top 100 Guarantee Envelope Progress 2011 CLM Objectives
98. SPOT 2 Healthy Tools Distribution Analysis Sales Trending
99. SPOT 2 Healthy Tools Michigan Conservation All Category Volume
100. SPOT 2 Tools at the Vet Hot SPOT Sales Trending
101. Top 100 Guarantee Guarantee movement of the top 100 Power SKUs Regional volume ranked by market success Buy-in of 40,000 – 120,000 lbs Returns a possibility, often a 3:1 or 4:1 ratio Proven success: Unisource LA – up 400,000 lbs on these items in 2010! Unisource Atlanta – up 17% after first quarter of program! Next up: Unisource – MPL; Millcraft – Cleveland Develop pecking order for other large Central customers
102. Envelope Progress through Nov 5th
103. 2011 CLM Objectives Develop and implement Neenah IPO, a custom tool providing stocking insights to customers via web portal Provide RDC solutions and support for both domestic and international business Work with sales, marketing and supply chain to build framework for SPOT 3, incorporating direct and international business Assist in rolling out Cost to Serve Bring a new innovative supply chain solution to market Developing supply chain solutions and logistical relationships to support 15% growth in international markets.
104. Territory Presentations 15 minute overview of territory opportunities, challenges Concept is to create a brainstorming environment with best practices from around the region
105. Q4 Priorities Alignment Clear understanding of Q4 targets Clear understanding of priorities Clear plan of action Final Q&A