A real life example of Sales Force Efficacy for the Central & Eastern Europe region

1. Sales Force Efficacy Analysis
CEVA Sante Animale Romania for
CENTRAL EUROPE SEMINAR
PRAGUE, SEPT. 2006
by Sorin CIUCIUC

2. Considerations
The Sales Force Efficacy lays in our Product Portfolio
efficient use in front of our Customers
General Overview
The Trigger
We can analyze our efficacy through our management
of:
Territory
Customers
Product Portfolio
We can increase our efficacy by increasing:
The Retention Rate of our Products within the Customer’s Portfolio
The Profitability in front of our Customers
The Penetration within the Territory
2

3. Considerations
The Sales Force Efficacy lays in our Product Portfolio
efficient use in front of our Customers
General Overview
The Trigger
We can analyze our efficacy through our management
of:
Territory
Customers
Product Portfolio
We can increase our efficacy by increasing:
The Retention Rate of our Products within the Customer’s Portfolio
The Profitability in front of our Customers
The Penetration within the Territory
3

4. General Overview
Nice TURNOVER evolution since January, 2005
350.000
300.000 > 275kE
Turnover Value in EURO
250.000
200.000
175kE-225kE
150.000
100.000
50.000
0
g
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5. General Overview
Significant growth in %GM
350.000 100%
90%
300.000
80%
Turnover Value in EURO
250.000 65,40% 70%
62,99%
58,52% 59,60% 60,31%
% Gross Margin
60%
200.000
57,68% 59,74%
56,09% 50%
150.000
40%
100.000 30%
20%
50.000
10%
0 0%
N
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6. General Overview
AVIAN
Manageable Number of Customers INFLUENZA
70
STRIKES
66
64
Number of Invoiced Customer (monthly)
60 58 57 58 58 58
53 52
50 50 51
48
46 46 46
42 42 41
40 38
30
20
10
0
N
N
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05

7. General Overview
Value Growth per Areas
60.000
50.000
40.000
30.000
20.000
10.000
2005 mn.
0 average
a
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a
2006 mn.
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Ar
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A
.A
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average7
T.
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8. Considerations
The Sales Force Efficacy lays in our Product Portfolio
efficient use in front of our Customers
General Overview
The Trigger
We can analyze our efficacy through our management
of:
Territory
Customers
Product Portfolio
We can increase our efficacy by increasing:
The Retention Rate of our Products within the Customer’s Portfolio
The Profitability in front of our Customers
The Penetration within the Territory
8

9. Trigger → Analysis → Actions
The TRIGGER for this analysis was an
INCONSISTENCY OF SALES spotted for some of our
customers
We’ve DEEPEN our ANALYSIS:
In-depth Sales Analysis
Products Shifting within Customers’ Portfolio
Logistic Issues: Special Product Categories to Follow
Customers Shifting within the Areas
Considering this ANALYSIS and the MARKET
EVOLUTIONS we’ve decided a set of ACTIONS:
New Set of Tools for Customers’ Management
Territory Adjustments
9

10. Trigger → Analysis → Actions
We’ve analyzed 17 consecutive months of sales
between Jan, 2005 – May, 2006
We’ve excluded new started customers and those closed
10

11. Trigger → Analysis → Actions
We’ve split the figures per areas:
Potential Monthly
Total TO Loses Loses
Jan 2005 – May 2006 Jan 2005 – May 2006 Jan 2005 – May 2006
OVERALL
Country CONFIDENTIAL
Jan 2005 – May 2006 2.472.665 651.729 38.337
TOTAL Transilvania Area 508.211 94.601 5.565
TOTAL Center Area 329.327 82.433 4.849
TOTAL Timis Area 238.657 76.698 4.512
TOTAL Moldova Area 259.410 185.481 10.911
TOTAL South-East Area 565.629 100.658 5.921
TOTAL South-West Area 571.431 111.858 6.580
► We’ve touched the market potential, but we couldn’t
keep it within our portfolio for certain reasons…
11

12. Trigger → Analysis → Actions
The TRIGGER for this analysis was an
INCONSISTENCY OF SALES spotted for some of our
customers
We’ve DEEPEN our ANALYSIS:
In-depth Sales Analysis
Products Shifting within Customers’ Portfolio
Logistic Issues: Special Product Categories to Follow
Customers Shifting within the Areas
Considering this ANALYSIS and the MARKET
EVOLUTIONS we’ve decided a set of ACTIONS:
New Set of Tools for Customers’ Management
Territory Adjustments
12

13. Products Shifting within Customers’ Portfolio
Customer A: “The SHOTS Customer Type”
13000 VETRIGENT 5 100ML
Commercially Hard to Get VERMITAN 10% 1L
12000
Driven and Keep a UNICOCCIN 1L
11000
Customer New Product NEOSTOMOSAN 1L
10000 INTRAMICIN 100ML
Total Monthly TO (EURO)
FP DILUENT
9000 10ML+1/2SCAR
FLUMIQUIL(FLUQUICK)
8000 50% 1KG
COGLAVAX 500ML
7000 COGLAVAX 100ML
CEVASOL AD3E+C 5L
6000
CEVAMUNE 1TB
5000 CEVAMEC 1% 50ML
4000 CEVAC VITAPEST L
2000DS
CEVAC VITAPEST L
3000 1000DS
CEVAC NEW L 5000DS
2000 CEVAC NEW L 1000DS
1000 CEVAC ND-IB-EDS K
500ML
CEVAC IBD L 2500DS
0
CEVAC IBD L 1000DS
-1000 CEVAC FP L 1000D
N
N
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14. Products Shifting within Customers’ Portfolio
Customer B: “The CONSTANT TO Customer Type”
2200 VETRIMOXIN LA 100ML
Constant Shifting VETRIFLOX 100 PULVIS 1KG
Products Portfolio TIACLOR PX 25KG
SUPRAVITAMINOL SOL 1L
1700
Total monthly TO (EURO)
SPECTAM SCOUR HALT
100ML
SPECTAM INJ 100ML
NEOSTOMOSAN 1L
1200
NEGEROL 210ML
MYCOTOX 25KG
FLUMIXAN 5% 12KG
700
FERVETRIN 20% 100ML
COLIVET SOL 5L
COLIVET SOL 1L
200
COLIVET PULVIS 20KG
CEVASOL AD3E+C 5L
AMPISUR 100ML
-300
N
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15. Products Shifting within Customers’ Portfolio
Customer C: “The SHARP Customer Type”
12000 Sharp TIAMVET 800 25KG
11000 Increases and
10000 Decreases MIXOLIGO PLUS 20L
Total Monthly TO (EURO)
9000
8000 COLIVET SOL 5L
7000
COLIVET SOL 1L
6000
5000 CEVASOL AD3E+C 5L
4000
CEVASOL AD3E+C 1L
3000
2000 CEVAMUNE 1TB
1000
0 CEVAC NEW L 5000DS
-1000
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05

16. Trigger → Analysis → Actions
The TRIGGER for this analysis was an
INCONSISTENCY OF SALES spotted for some of our
customers
We’ve DEEPEN our ANALYSIS:
In-depth Sales Analysis
Products Shifting within Customers’ Portfolio
Logistic Issues: Special Product Categories to Follow
Customers Shifting within the Areas
Considering this ANALYSIS and the MARKET
EVOLUTIONS we’ve decided a set of ACTIONS:
New Set of Tools for Customers’ Management
Territory Adjustments
16

17. Special Product Categories to Follow
Products to be Pushed With an
Aggressive
140000
Offer TIAMVET 800 25KG
120000 We’ve TIACLOR PX 25KG
Increase
Total Monthly TO (EURO)
Based on TH4+ 60L
100000 the TO
a Demonstrated TH4+ 25L
Potential QUINOEX 10 1L
80000
QUINOCOL 1L
60000 FLUMIXAN 5% 12KG
DOXYVIT 100 PULVIS 1KG
40000
DOXYVIT 100 PULVIS 10KG
20000 DOXYVIT 100 PREMIX 10KG
CEVAMUNE 1TB
0
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06

18. Special Product Categories to Follow
Products to be Killed Received a
9000 Products dedicated short-term
8000 showing a constant effort VETRIPEN DEPOT 100ML
decrease
7000 VETRIFLOX 200 SOL 1L
Total Monthly TO (EURO)
6000 VETRAMOX 80% WSP 1KG
5000 UNICOCCIN 1L
4000
GALLIMYCIN WS 20% 1KG
3000
CEVASOL AD3E+C 5L
2000
ABANTEL 260MG 20 BOLURI
1000
ABANTEL 260MG
0
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05

19. Special Product Categories to Follow
Received a
Products to be Recovered STRONG support
80000 in front of the
Important VETRIGENT 5 100ML
Customers
70000 Products in Terms TETRAVET LA 250ML
of Turnover Waving
TETRAVET LA 100ML
60000 into the Market
Monthly TO (EURO)
SUPRAVITAMINOL SOL 1L
50000 SPECTAM INJ 100ML
NEOSTOMOSAN 1L
40000
MYCOTOX 25KG
30000 MIXODIL 20L
MIXODIL 10L
20000
INTRAMICIN 250ML
10000
INTRAMICIN 100ML
0 AMPISUR 100ML
m r
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m
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/
05

20. Trigger → Analysis → Actions
The TRIGGER for this analysis was an
INCONSISTENCY OF SALES spotted for some of our
customers
We’ve DEEPEN our ANALYSIS:
In-depth Sales Analysis
Products Shifting within Customers’ Portfolio
Logistic Issues: Special Product Categories to Follow
Customers Shifting within the Areas
Considering this ANALYSIS and the MARKET
EVOLUTIONS we’ve decided a set of ACTIONS:
New Set of Tools for Customers’ Management
Territory Adjustments
20

21. Customers Shifting within the Areas
Gained
Area 1: Steady Growth and Grown
55000
Customers ZIMOVET S.R.L.
VETEXPERT S.R.L.
Still Shifting TRANSAVIA S.A.
50000 Customers SILVAUR IMPEX S.R.L.
SERVICII PUBLICE SA
45000 Lost SC PETVET SRL
RODO DENT SRL
40000 Customers PROD-VET COM S.R.L.
Customers TO (EURO)
PIG BAND S.R.L.
35000 OPREA AVI COM SRL
NUTRISAM S.A.
30000 MUFLONUL SRL
MINI ZOO SERV SRL
25000 MCM SANITFARM VET S.R.L.
MARAVET SRL
20000 LIVENTIS IMPEX 2000 COMPANY SRL
ITUL S.R.L.
15000 INCUBA S.R.L.
HORATIU SRL
10000 FRAMO ROMANIA SRL
EXPERT 2001 S.R.L.
5000 CHICK SRL
CARMOLIMP S.R.L.
0 CAMPEANU PETRU
AVIS 3000 S.A.
-5000 AVICOLA BUC.-SALISTEA CLUJ
AVIAGRO SRL
AVIA ITUL SRL
AN
AN
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AVE IMPEX S.R.L.
/J
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05
ASENA SRL
APICOLA-BIHOR

22. Customers Shifting within the Areas
Gained
Area 2: Sustained Growth and Grown
Many Steady Customers VETPHARM SRL
80000 VEGETAL TRADING S.R.L.
VANBET S.R.L.
Customers UNIVERS SA
70000 Small to Count on THETIS COM SRL
TCE 3 BRAZI SRL
60000
Customers SUINTEST GALATI S.R.L.
Customers TO (EURO)
SAFIR S.R.L.
Lost ROTSIN VITA S.R.L.
ROM TRADING COMPANY SRL
50000 ROEMI COM S.R.L.
R.A.B. SRL
PRACTIC COMERT SRL
40000
PIGCOM SA
PHYLAXIA PHARMAROM SRL
30000 MESESAN DAN A.F.
INTER AGRO ALIMENT S.R.L.
HELMI -VET SRL
20000 GUYOMARC'H ROMANIA SRL
FEREMAN SRL
FAUNA S.R.L.
10000 FARM-IMPEX S.R.L.
EXPERT 2001 S.R.L.
ELA GENERAL COM S.R.L.
0 CONDOR S.A.
COMPLEX PORCI S.A.
g
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CARNIPROD S.A.
m
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/
BEST VET COMPANY SRL
05
AVI-TOP S.A.
AVICOLA IASI

23. Trigger → Analysis → Actions
The TRIGGER for this analysis was an inconsistency of
sales spotted for some of our customers
We’ve DEEPEN our ANALYSIS:
General Overview
Products Shifting within Customers’ Portfolio
Logistic Issues: Special Product Categories to Follow
Customers Shifting within the Areas
Considering this ANALYSIS and the MARKET
EVOLUTIONS we’ve decided a set of ACTIONS:
New Set of Tools for Customer’s Management
Territory Adjustments
23

24. New Set of Tools for Customer Management
Actively follow the Profitability per Customer
Number of Actively Invoiced % Gross Margin/Customer
Customers
31 (27%) over 70%
62 (55%) 55% - 70%
20 (18%) below 55%
24

25. New Set of Tools for Customer Management
New Indexes to follow our efficacy in front of the
Customers:
The Absolute Penetration within the Territory: new customers with
relevant turnover gained for each area
The Retention Rate of our Customers: % of regularly invoiced
customers
The Retention Rate of our Products within the Customer’s Portfolio:
% of regularly invoiced products toward a certain customer
In order to support the efforts of our sales team we’ve put
in-place a customized Training Program to increase our
success rate in front of the customers
25

26. Territory Adjustments
New Division and Allocation of HR for better Beginning of
management of the Territory 2007
More Focus
to the Customer
A Specialized
Approach per Species
for the largely
Industrial Areas
PIG
POULTRY
26

27. Trigger → Analysis → Actions
The TRIGGER for this analysis was an inconsistency of
sales spotted for some of our customers
We’ve DEEPEN our ANALYSIS:
General Overview
Products Shifting within Customers’ Portfolio
Logistic Issues: Special Product Categories to Follow
Customers Shifting within the Areas
Considering this ANALYSIS and the MARKET
EVOLUTIONS we’ve decided a set of ACTIONS:
New Set of Tools for Customer’s Management
Territory Adjustments
27

28. Transformed our Considerations …
The Sales Force Efficacy lays in our Product Portfolio
efficient use in front of our Customers
General Overview
The Trigger
We can analyze our efficacy through our management
of:
Territory
Customers
Product Portfolio
We can increase our efficacy by increasing:
The Retention Rate of our Products within the Customer’s Portfolio
The Profitability in front of our Customers
The Penetration within the Territory
28

29. … into a set of Conclusions
We can increase our Sales Force Efficacy through an
increase Product Portfolio Usage in front of our
Customers
We can increase our Sales Force Efficacy through a
better Management of our Customers
We can increase our Sales Force Efficacy through a
better Territory Management
29

30. Your Questions
Thank You for Your Attention,
Yours,
Sorin CIUCIUC
CEVA Sante Animale Romania
30