NAW Association Executives Council (AEC) Summer Meeting July 14 -16, 2014 Carlsbad, CA

1. NAW Association Executives Council (AEC) Summer Meeting July 14 -16, 2014 Carlsbad, CA Increasing Large Member Engagement

2. Mark S. Allen International Foodservice Distributors Association

3. International Foodservice Distributors Assoc. IFDA Members: • 155 broadline and systems distributors • $127 billion in collective annual revenue • 800+ distribution centers IFDA Members are: • 25 of the top 25 • 42 of the top 50

4. IFDA Distributor Membership: Highly Concentrated 10% 10% 31% 18% 31%

5. IFDA… • Protecting against costly government legislation and regulation • Lobbying • Grassroots • Advocacy • Coalitions • IFDAPAC • Thomas Jefferson Awards • Guidance Documents • Providing information and tools to help distributors run an exceptional business • Benchmarking • Original Research • Online Seminars • White Papers • Industry Information • Actionable Insights • Creating events to both educate • and strengthen relationships • Partners Executive Forum • Distribution Solutions Conf. • SMart Conference • Washington Insights Conf. • Presidents Conference • Truck Driving Champ. • Executive Education (UVA) Peer-to-Peer Sharing:Leadership Committees; Planning Councils; Functional Share Groups Communications: Daily and Quarterly Updates; ifdaonline.org; Member Communications Industry Leadership: GS1 Standards; Data Accuracy and Integrity

6. How we Define a “Large Member” • Size is important, but we also base it on how the company manages its business • Centralized • Decentralized

7. Vision 2010 • Created a culture of “Thought Leadership” • Thought Leaders influence others by creating, advancing and sharing ideas that help provide solutions and as a result are looked upon as a resource for insight and vision – they must “trust the brand” • Changed how our members view us - from within • Needed to change • Staff access to information and ideas • How our members viewed our capabilities and skills • How we identified and evaluated new opportunities • How our members viewed our contribution to their success

8. Member Intimacy • Member visits • A day to a day and a half • 90% is asking questions and listening – it’s about them • Set 45 minute meetings with • C-suite • Key executives • Functional heads • Have them review their strategy • Probe their challenges and opportunities • Review association activities where applicable – don’t assume they know what we do • Regular contact throughout the year

9. Changing How Large Companies Think About IFDA • Opportunities to lead • Military contracting • Congressional investigation • GPO’s – mitigating the risks of “price extendibility” • Customer demands – repeal of the RFS • Where we had to say NO • Vendor-specific issues • Competitive issues

10. Mark S. Allen International Foodservice Distributors Association

11. Smart Practices.Sustainable Solutions. Increasing Large Member Engagement NAW AEC Summer Meeting July 2014

12. Challenges • Association wants large member commitment and active participation. • What can we provide that they can’t do for themselves?

13. Challenges • Sometimes our advocacy goals don’t align. • Three manufacturers in each segment have 90% of market share, so they aren’t interested in statistics.

14. Possible Solution:VIP Member Category • Greater exposure to a high level audience • Social responsibility platform

15. IA Membership Categories & Dues

16. New Platinum Membership Category Manufacturer = $27,500; Distributor $20,000

17. New Platinum Membership Category

18. Other Unwritten Benefits • High level staff liaison • Board consideration • First sponsorship options • Article opportunities • Webinar hosts • VIP events, e.g., breakfast the keynote • Other volunteer placement

19. Pros and Cons + New revenue for the association + Large members love the exposure and VIP treatment – Only 10 companies are viable targets – Potential perception by small members that we are elitist.

20. Happy Smart Irrigation Month! www.smartirrigationmonth.org

21. Deborah Hamlin, CAE, FASAE Irrigation Association Chief Executive Officer deborahhamlin@irrigation.org

23. Electrical Council Manufacturers 130 Distributors 51 • Reps) • 49 82% 3% 15%

24. Distributors • Range • 1.5 Billion - Under 20 m. • Top 5 • represent about 80% of business. • Distributor fees • Over $30,000 to under $2000

25. Role of Association • Association is a member numbers game… the size and structure of your association is based on the membership numbers not on $$. Thousands of Members (nurses association) Newsletter Conference Trade show Education GR Affiliate programs (Insurance) Credit card programs Savings on items Web: Membership drive Couple of Members (soft drink association) GR Statistics Outreach to member customers Public PR Conference – meetings Web: No application for membership, no drive, just PR.

26. Large members • Conference – meeting opportunity - not part of a buying group • Statistics – market share is huge with large players, sales and growth can determine bonuses • Government relations – codes and standards, sustainability, compliance • Research that tells them something they don’t know • Employee training system • Any industry initiatives that involve cooperation – • E-commerce, one voice to manufacturers

27. Model Lots of small members • CEO that knows associations • One person per company • Committees tend to be main contacts • Focus on association work Few large members, • CEO that knows the industry • Go deep, rely on more than one person • Involve levels in project committees, larger database • Focus on industry issues