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Thought Center Go To Market Strategy Direct Store Delivery ModelJohn KiszDirector- CG Industry Solutions

Ivy Mobility Thought CenterConsumer Good Manufacturers Go To Market Strategy Direct Store Delivery Model Just what is Direct Store To the manufacturer Delivery (DSD) • Manage frequency of delivery to the Simply stating DSD is the physical storedelivery of manufactured product to a • Strict attention of merchandisingretailer by your representative. Generallythe delivery is made to a store in pattern on shelfaccordance receiving windows dictated by • Eliminates lack of rotation on productthe retailer, mostly thru a receiving door atthe back of the store.A DSD operator can (especially perishable)be a company employee or an independent • Manage shelf inventory on perishablecontractor or distributor (Benefits of each • Build positive relationships at store leveldiscussed later) • Sell additional display & shelf spaceNormally this delivery is made from avehicle, such as a car, van, Step- van, cube based on needtruck, utility trailer (pulled by a pick-up) • Consumer interaction with the distributor Choosing the type of DistributorThe type of vehicle in a company operation Company Employeeis a corporate decision, but a distributor • Standards are easier to manageshould have some latitude with the vehicle • Salary, benefits, uniformsas long as the vehicle will meet the needs of • Advancement opportunitiesthe business • Opportunity for daily or weeklyValue of DSD meetings • Adjust route alignment at willTo the retailer Independent Distributor/Contractor• Reduces warehouse cost of storing & • Allows for fixed Labor Cost • A distributor likes freedom of operation shipping to retail outlet • Inspired by the tag of Self-Employed• Generally will reduce out of stock time • Might already have an existing business • Can be a multi-truck operator frame in store • Must have a contract with designated• Eliminates labor cost for stocking territory, no infringement, either in or shelves & building displays out• Product available for sale prior to • Contract stipulates service standards (call frequency) payment (consignment), except alcohol….higher profit

Ivy Mobility Thought CenterDeveloping a Contract/ Financial Considerations forIndependent Contract Equity BusinessOperator (IO) • Does the Candidate have a soundPoints of consideration business acumen• Should be a legal document • Does the Candidate have a good credit• Should be defined by term length history, include spouse• Will the ICO build equity value in the • Collect data on Candidate living expense, will projected income meet business he/she develops…value to ICO current living standard, include spouse’s• Manufacturer retains the first right of income refusal on a new buyer • Is there medical insurance with spouse’s• Does the manufacturer assist in the job business loan process co-signs with bank • Is a warehouse needed, who pays lease• Manufacturer establishes Service Frequency Standards (perishable vs shelf Territory Descriptions stable)• IO must maintain a fresh and adequate • Pick a clearly defined starting point• supply of merchandise in all retail outlets • Write description in a consistent• IO must support and participate in all manner-like clockwise or counter• clockwise market promotional activity Store locations should not be a• boundary….stores close and move IO must adhere to a dress code and • down the block, but may be out of the• proper hygiene, Uniform? territory. New stores openings are a blessing to• Will the IC receive commissions on the IO• Using a given County may work, but• standard wholesale pricing or net boundaries can changed• Using a city as a boundary never• promotion pricing • works….always changing Area of service should be tightly Most accurate detail obtained by using streets or highways, but most complex controlled by boundaries to avoid • Include a map that is outlined according infringement either in or out of the to written description Make sure everything connects territory. • Written descriptions always take IC must maintain a vehicle sufficient in precedence (legal call) Utilize mapping software where possible size and in good mechanical condition to • service the business Selecting an IO is different than hiring • Find a pool of distributors both good and underperforming • Develop a series of questions, then rate • answers 1-10 Compile an average for each group • Bring on those that respond closest to higher score

Thought John KiszCenter Marketing Manager and Sales TrainerAuthor John Kisz brings 25 years of experience in the consumer goods industry at leading brands; Campbell’s/Pepperidge Farms and Shasta Beverages . Accomplished and innovative Sales & Business Development Manager, specializing in the CPG Industry. Extensive experience in sales management, recruiting, and building infrastructure within a DSD environment. Charismatic team-builder skilled at inspiring confidence and managing a 'beyond the objective' mindset.A solutions-driven strategist successful in delivering strong cost reductions, improved process & efficiencies and over-all customer satisfaction.A powerful mobile retail solution can instantly improve not only the productivityof the entire sales force, but enable the level of communication that every brandneeds to drive their strategic goals and attain success in the retail arena. Contact us