DSRs

1. DSRs How the Foodservice Sales Force Is Changing…and the Impact on Marketing

2. afdr • Association for Foodservice Distributor Representatives

3. AFDR Facts • 4,000 members, 480 distribution houses • Started in May 2006 • Mission: Provide training that falls through the cracks • Product training • Real-life sales scenarios • Training primarily through DSRLive, DSRSmart, DSRMobile and DSRSmart, PTVideos on GradeAtv.com

4. AFDR Member Stats Foodservice sales experience 7.2 years Avg. annual sales $3.02 million DSRs avg. 30 operators each week 120 k Total sales of members $12 billion

5. DSR Job Description • 8,000-10,000 products in warehouse • Product expert • Business/operations consultant • General problem solver • Bill collector • Delivery person • Merchandising support • Acquires samples • Menu analyst • Market researcher • Sales person

6. ASK OPERATORS DSRs… Influence70%of purchase decision Considered business partner Yet, DSRs average $64,000 in pay

7. What are the key factors that most influence your customers’ loyalty to specific manufacturers/brands? (Choose up to three factors): Source: AFDR Members Survey 2010

8. Getting Out The BRANDMESSAGE

9. First Time in History! Veterans(1922-1945) Baby Boomers(1946-1964) • Rotary phone • Memo • 1 on 1 meetings • Touch tone phones • Call any time FourGenerations in One Workforce Gen Y(1981-2000) Gen X(1965-1980) • Cell phones • Fax it! • Call me only at work • Email • Internet • Smart phones • Email • Text

10. Mobile Phone/Smart Phone#1 DSR Communications Tool 84% Instant access to photos, videos & sell sheets will DEFINITELY or PROBABLY help increase my sales Fast, convenient, uncomplicated Marketing direct to operator Email sell sheets, watch videos AFDR Survey of 275 DSRs, Dec 2010

11. Digital Documents#2 DSR Communications Tool Mandatory by many colleges/universities Easy to email Very “Green” Reduces out-of-date info a.k.a. TRUNK TRASH

12. Product Training Videos (PTVs)#3 DSR Communications Tool • Fastest, easiest way for DSRs to learn about a product • Seeing is believing; reduces need for samples • Easy to repurpose everywhere! • Simple alternative to 2nd and 3rd line descriptions • Control your brand message…no room for interpretation! July 2010

13. SALES DRIVERS The Five PRIMARY

14. It’s All About Mindshare DSRs Sell What They Know If a DSR doesn’t have product knowledge they… Significant % of DSRs have less than 2½ years experience • Will sell on “price” or first-line descriptions which are very confusing at most distributors • Therefore you need a marketing plan for Veterans and Greenhorns Source: AFDR Survey 2009

15. 950 Products = 80% of Sales HELP! Average DSR sells $3 million Annually:Sell 4,400 DIFFERENT products Monthly: 1,500 SKUs

16. WHY? Should I care about your product among the10,000 in warehouse? Is your “new” product different than the other 18,000 introduced this year? Should I suggest to an operator to change a menu that’s working? Ultimately…Why should I spend my time thinking about your product or brand?

17. Primary Sales Drivers DSRs Sell What They Know! First line descriptions Is the product stocked in warehouse? SAMPLES-SAMPLES-SAMPLES Can the product be used in multiple operator’s menus?

18. Price… the only differentiator with greenhorns, what else do they have to go on? Vets learn in about 2.5 years.

19. 1st Line Product Descriptions 2nd, 3rd etc. line product descriptions could be why a product is really moving, or NOT!Have you checked on your product descriptions lately?

20. Summary: 1 + 1 + 1 = 5! DSRs sell what they know… not necessarily what is most lucrative Price-based incentives have limited long-term impact Incent forknowledge Provide online tools that give them an edge to influence DSRs Simple brief videos give brokers the edge over 90% of competition Expandbroker’s role Build your DSR VIP team… influence the 20% who influence the other 80% Invest in “greenhorns” economicallyvia training for long-term loyalty Start buildingbrand champions

21. Why DSRs Are Loyal Consistently delivers on quality Excellent support from broker / manufacturer rep Samples easy to get Source: AFDR Members Survey 2010

22. Support DSRs Desire Source: AFDR Members Survey 2010

23. Future DSRs Better information at their finger tips Will break down the boundaries that have always existed between the entire circle of business partners Future will be different because the industry will hear first hand, with surveys like those Technomic is doing with AFDR member DSRs, what’s needed to help keep their operator customers in business

24. Communications Barriers Disappearing Across All Links in Change Mfgr Rep Mfgrs. DSRs BSRs Brokers Distributors Re-distribution • Aggressive online marketers • Online ordering provides “captured audience” • Samples • Special orders 0PERATORS!

25. Results of the Technomic Study Shown Here Today • Reflect how most operators count on their DSR, and how they work together in a partnership week in and week out • That good DSRs will do whatever they need to do to find the right products for their customers, even if their DC does not stock it • And good DSRs will make sure the products their customers need are always stocked

26. A Fast Changing Piece of the Foodservice Industry Puzzle • Foodservice Broker world is changing faster than any other piece • Many DSRs are saying things like “Regional and National brokers don’t know their customers or their market” • So they figure they’ll have to do it themselves • DSRs feel they’ll have to find new ways to get samples

27. So Our Advice to the Brand Folks Listening It would be best to have a marketing plan that includes the DSR Find the top 5 DSRs at every distributor you sell, and build your VIP team ― DSRs of the future will sell the brands they know Start production on PTVs that’ll play on Mobile Apps for the top 10 selling &10 most profitable products in each category

28. afdr Association for Foodservice Distributor RepresentativesWe Are: 4,000 DSRs $12.1 billion in sales 480 distributor houses Serve 120,000 operators www.afdr.orginfo@afdr.org