Participants:

Distributor Salespeople -- Food Service

Situation Analysis:

Client markets food service products to over 600 distributors. These distributors were stocking a new, competitive product. Client felt an aggressive distributor incentive program would effectively combat competition in this category an increase market share.

Objectives:

Increase product sales by 15% over six-month period.

Motivate and encourage distributors to place extra selling emphasis on the client's products.

Further promote and develop long-term distributor loyalty.

Assist in increasing market share and the positive perception of the client.

Recommendations:

A distributor sales incentive program was introduced to reward specific product sales growth and achievements.

Each distributor was assigned a monthly product case purchase objective based on a calculation of previous year's purchasing data, monthly seasonality, and case conversion.

Distributors earned award points retroactive to first case purchased, once they had exceeded their monthly purchase objective.

To get the program off to a good start, a fast start bonus was paid out for case sales accomplishments during the first two months of the program. Distributors received award points and performance statements on a monthly basis.

Communication:

To announce the program, each distributor was given a distributor program guidebook. This guidebook was used by distributors to inform their salespeople about the program.

Each distributor also received a customized catalog, which contained over 600 merchandise awards.

Promotional copy and rules of the program were imprinted on the cover of the catalog, along with a colorful program theme.

Each month, distributors received performance statements highlighting how many award points they earned, as well as how many award points they had used to purchase merchandise items.

Distributors also received a quarterly newsletter promoting the program and featuring success stories.

Results: Sales revenue increased approximately 57% over the previous year.

Participants:

All Company Employees -- Manufacturing

Situation Analysis:

Client needed to develop new leaders from Corporate Headquarters' Department Heads.

Client wanted to increase the awareness of each individual and gain their collective input on corporate revenues and expenses.

Objectives:

Reduce costs and increase revenues.

To develop new leaders by identifying top performing team leaders and team members.

Enhance employee morale and increase employee commitment.

To utilize the knowledge, expertise, insights, and talents of their employees for decision-making and problem-solving.

Recommendations:

Developed and implemented an all-employee suggestion program. Created eight-member teams, with each team member coming from the same department. Team leaders were assigned to motivate fellow team members to generate suggestions.

Advisors provided feasibility about specific financial information. Review committee approved/disapproved suggestions. Implementation managers were responsible for implementation of approved suggestions.

Employees could earn award points worth 20% of one years savings/productivity improvement based on their approved suggestion. Award points were redeemable for valuable merchandise awards.

Communications:

To announce the program, each team leader received a program guide, award catalog, and stickers.

Posters were distributed and a video was designed to "kick-off' the program.

Every other week, employees received a promotional letter highlighting the program.

Results:

Number of employees enrolled: 306 (95%)

Number of teams: 31

Number of suggestions submitted: 178

Number of suggestions approved: 95 (53%)

Total value of approved suggestions: $1,226,545

Total program expense: $174,946

Program net gain: $1,051,599

Cost of incremental savings: 14.3%