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Americas Sales Business Plan
Americas Sales Business Plan2001
Table of Contents
I. Executive Summary ……………………………………………………………………………………..
4
II. Organizat ion…………………………………………………………………………………………………
5
A. Segment Overview…………………………………………………………….……………………….
5
B. U.S Channel……………………………………………………………………………………………….
5
C. Inside Sales / Sales Operations…………………………………………………………………….
6
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Americas Sales Business Plan
D. U.S.
OEM……………………………………………………………………………………………………
6
E. Latin America……………………………………………………………………………………………..
7
F. Canada……………………………………………………………………………………………………
… 7
III. Market Analysis…………………………………………………………………………………………….
8
A. Overview…………………………………………………………….
………………………………………. 8
B. Product Mix/Price Points………………………………………………………………………………..
9
IV. Sales: Strategic Overview…….……………………………………………………………………….
11
A. Strategic Overview…………………………………………………………….………………………….
11
B. U.S. Channel ………………………………………….
…………………………………………………… 12
C. U.S.
OEM……………………………………………………………………………………………………..
14
D. Latin America……………………………………………………………………………………………….
15
E. Canada……………………………………………………………………………………………………
….. 16
F. Inside Sales ………………………………………………………………………………………………..
20
V. Sales: Operations…….…………………………………………………………………………………...
21
A. Overview…………………………………………………………………………………………………….
. 21
B. Sales
Cycle…………………………………………………………………………………………………..
21
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Americas Sales Business Plan
C. Forecasting…………………………………………………………………………………………………
.. 24
VI. Programs….
………………………………………………………………………………………………….. 26
A. National Accounts (Platinum)………………………………………………………………………..
26
B. Alliance Partners………………………………………………………………………………………….
27
C. International………………………………………………………….……………………………………
28
VII. Telecommunications Init iat ive……………………………………………………………..………
29
A. Overview………………………………………………………….……………………………….
………… 29
B. Business Description………………………………………………………….………………………….
29
C. Broadband Market Analysis……………………………………….…………………………………..
30
D. Account Categories………………………………………………………….……………………………
30
E. Customer Profile………………………………………………………….……………………………….
31
F. Target Accounts………………………………………………………….……………………………….
31
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Americas Sales Business Plan
Table of Contents
VIII. National Account Profi les (U.S.)……………………………………………………..……………
32
A. Distribution..………………………………………………………………………………..………………
32
1. Ingram.…………………………………………………………………………………………………
32
2. Tech Data.…………………………………………………………………………………………….
33
3. D&H.
……………………………………………………………………………………………………..
34
4. Gates/Arrow.………………………………………………………………………………………….
35
5. Synnex.…………………………………………………………………………………………………
36
B. Retail………………………………………………………………………………………………………
….. 37
1. Best Buy………………………………………………………………………………………………..
37
2. Circuit City…………………………………………………………………………………………..…
38
3. CompUSA…………………………………………………………………………………………….
… 39
4. MicroCenter……………………………………………………………………………………………
40
5. Office Depot……………………………………………………………………………………………
41
6. Sam’s Club…………………………………………………………………………………………..…
42
7. Staples………………………………………………………………………………………………..
… 43
8. Wal-Mart……………………………………………………………………………………………..…
44
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Americas Sales Business Plan
C. Direct Mail………………………………………………………………………………………………..
…. 45
1. CDW……………………………………………………………………………………………………
… 45
2. Insight…………………………………………………………………………………………………
… 46
3. MicroWarehouse………………………………………………………………………………..……
47
4. PC Connection……………………………………………………………………………………
48
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Americas Sales Business Plan
I. Executive Summary
Introduction
The vision for the new U.S. Robotics can be summed up in three words: Leadership, Innovation, and Agility.
With analog modem products that are first-in-class as the cornerstone, we are structuring an aggressive
and inventive plan focused on strong customer relationships and streamlined processes.
As U.S. Robotics continues to increase its already dominant market share in the modem space, we will add to
that momentum by introducing exciting new Wireless and Broadband solutions. Our strong U.S. Channel
presence provides a pipeline through which we can develop these new opportunities.
Ultimately, we will work smart, take care of our customers, and remain on the leading edge of Analog, Wireless,
and Broadband connectivity solutions. As the U.S. Robotics brand has remained synonymous with quality
modems and market leadership, the new U.S. Robotics and its Sales Force will build on a tradition of
excellence.
Sales Overview
The responsibility for Worldwide Sales is shared by Brian W. Babcock, VP of Americas Sales , and Lars
Ole Hansen, VP Europe, Asia and Pacific Rim Sales (EMEA/APR).
On average, company sales break out as follows:
Key highlights of the Americas Sales Plan are:
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US Robotics Sales Mix
Americas65%
EMEA30%
APR5%
Americas Sales Business Plan
• The majority of Sales in the Americas come from the U.S. Channel segment.
• Key customer relationships with National Distribution, Retail, and Direct Mail Partners are the
cornerstone of our dominant market presence.• In January, USR held a 61.5% unit share and a 72.5% revenue share in Distribution, as well as a
31.8% unit share and 50.6% revenue share in Retail.
II. Organization
A. Segment Overview
The following chart provides an overview of each functional area of the sales organization. There are a total of
40 people in the organization. Strategic overviews of each segment are detailed in Section IV of the Plan.
Additional organizational detail, including specific roles and responsibilities, is included within each of the
following segment overviews.
B. U.S. Channel Sales
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R o b i n M c S u r l e yD i r e c t o r , U . S . C h a n n e l S a l e s
C h r i s B a z h a wU . S . O E M ( A c t i n g D i r e c t o r )
F e r n a n d o R o d r i g u e zD i r e c t o r , L a t i n A m e r i c a
B r o c k E v a n sD i r e c t o r , C a n a d a
B r a d H a r g r a v eD i r e c t o r
S a l e s O p e r a t i o n s / I n s i d e S a l e s
R i c k E r i c k s o nD i r e c t o r , R e t a i l P r o g r a m s
B r i a n W . B a b c o c kV P S a l e s , A m e r i c a s
Americas Sales Business Plan
II. Organization
C. Sales Operations / Inside Sales
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H o l l y O x f o r dW e s t e r n R e g i o n a l D i r e c t o r
P e g g y J a c k s o nC e n t r a l R e g i o n a l D i r e c t o r
J o e P e n n i n oE a s t e r n R e g i o n a l D i r e c t o r
J i l l e n e M c C a r t yM a n a g e r , T e l c o
R o b i n M c S u r l e yD i r e c t o r , U . S . C h a n n e l S a l e s
B r i a n W . B a b c o c kV P S a l e s , A m e r i c a s
M a r k H e r n a n d e zN a t i o n a l A c c o u n t s , W e s t
J o h n P o t o m i sN a t i o n a l A c c o u n t s , C e n t r a l
K i m b e r l y J o h n s o nN a t i o n a l A c c o u n t s , E a s t
F r a n c e s D a v i sI n s i d e S a l e s M a n a g e r
B r a d H a r g r a v eD i r e c t o r
S a l e s O p e r a t i o n s / I n s i d e S a l e s
J o h n n i e W h e e l e rA l l i a n c e P a r t n e r s , W e s t
T i a D i v i n eA l l i a n c e P a r t n e r s , C e n t r a l
L a T i a J o n e sA l l i a n c e P a r t n e r s , E a s t
D a v i d L o p e zP r e - S a l e s , W e s t
M e l i s s a A d u c c iP r e - S a l e s , E a s t
Americas Sales Business Plan
D. U.S. OEM Sales
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A n g e l a B a r r e t tA c c o u n t M a n a g e r
N i c k S c h e p o n i c kE a s t e r n R e g i o n a l M a n a g e r
D a n H o p p e rA c c o u n t M a n a g e r
R o b e r t C h e c h iS a l e s E n g i n e e r ( E a s t )
M a r k W i l l i a m sS a l e s E n g i n e e r ( W e s t )
C h r i s B a z h a wW e s t e r n R e g i o n a l M a n a g e r
( A c t i n g O E M D i r e c t o r )
B r i a n W . B a b c o c kV P S a l e s , A m e r i c a s
Americas Sales Business Plan
II. Organization
E. Latin America
F. Canada
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M a r i s o l D i a zS a l e s S u p p o r t S p e c i a l i s t
D a n i e l P e l l i g r i n iL A T M k t g . / B u s i n e s s D v l p .
J e n n i f e r M a r t i n e zD i s t r i b u t i o n M a n a g e r
A l e j a n d r o H e r e r aC h a n n e l D e v e l o p m e n t
I g n a c i o G a l l e g oC o u n t r y M a n a g e r
M e x i c o
I n g r i d M o n r o yC h a n n e l D e v e l o p m e n t
L i l i a n a G r i s a l e sC o u n t r y M a n a g e r
C e n t r a l A m e r i c a & A n d e a n R e g i o n
C r i s t i a n e S a n t o sM a r k e t i n g M a n a g e r
F e r n a n d o M u n h o zC o u n t r y M a n a g e r
B r a z i l
H e c t o r G o n z a l e zC h a n n e l D e v e l o p m e n t
G u i l l e r m o Z e i t l inC o u n t r y M a n a g e r
A r g e n t i n a , P a r a g u a y , U r u g u a y , C h i l e
F e r n a n d o R o d r i g u e zD i r e c t o r , L a t i n A m e r i c a
B r i a n W . B a b c o c kV P S a l e s , A m e r i c a s
K e a t i n g a n d A s s o c i a t e sC a n d i a n C h a n n e l R e p F i r m
( 4 ) U S R F i e l d A c c o u n t M a n a g e r s
B r o c k E v a n sD i r e c t o r , C a n a d a
B r i a n W . B a b c o c kV P S a l e s , A m e r i c a s
Americas Sales Business Plan
III. Market Analysis
For the purposes of this Plan, the Market Analysis will center around U.S. Robotics Core Products (analog
modems).
A. Market Overview
The following information provides a snapshot of the overall U.S. market for Analog Modems.
Analog ModemsU.S. Consumer Channel
January 2001 Sell-Through Summary
• Total U.S. sales of analog modems: unit sales total 415 Thousand units and $25 Million in sell-
through for January.
• Top 3:
Vendors in January were:
1. U.S. Robotics with $12.47 million in sales and a 50% dollar share
2. Zoom with $3.12 million in sales and a 12% dollar share
3. Creative with $2.85 million in sales and an 11% dollar share
Vendors year-to-date were:
Same as January
Products in January were:
1. 56K U.S. Robotics V.90 Faxmodem Ext PC with $3.7 million in sales
2. U.S. Robotics 56K V.90 PCI Faxmodem Int with $1.9 million in sales
3. U.S. Robotics 56K Performance Pro V.90 Int PCI with $1.52 million in sales
Products year-to-date were:
Same as January
• Market share trend for U.S. Robotics:
• YTD U.S. Robotics unit market share has increased to a highpoint of 33% (highest share
since March of ‘00)
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Americas Sales Business Plan
• YTD U.S. Robotics dollar market share has increased to 50%, a share not seen since May
of ‘00.
As reported by Levin Consulting. Source: PC Data – Reston, VA
III. Market Analysis
B. Product Mix / Price Points
The following outlines the top USR products by sales channel. Percentages shown indicate the average
percentage each product represents of overall sales
U.S. Channel
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Americas Sales Business Plan
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1
568656K External
27%$94.45
2
3CP5699A56K Internal PCI
25%$39.95
3
3CP5610A56K Performance Pro
14%$79.95
4
3CXM756-US56K Mobile
6%$196
5
3CP00305756K Performance Pro
5%$79.99
6
OTHERRemaining20+ SKU’s
27%
Americas Sales Business Plan
III. Market Analysis
U.S. OEM
OEM products are typically internal modems built into our customers PC’s and Laptops, therefor, no pictures are
included below with our top OEM SKU’s.
Latin America
Canada
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SKU ASP Description %1 USR325686D $109.00 56K External 29%2 3CP325699A $31.28 56K Internal PCI 20%3 USR325695 $78.20 Internet Call Modem 14%4 3CP325610A $62.56 56K Performance Pro 12%5 3CP325687C $78.40 Internal ISA 7%
Other 18%
SKU ASP Description %1 3CP263595-OEM-50 $19.79 56K Win Modem Dat/Fax 27%2 3CP263594-OEM-50 $24.00 56K Win Modem Dat/Fax/Voice 21%3 215686-03 $84.00 56K External 13%4 3CP2976-OEM-50 $46.00 56K PCI Internal Data/Fax/Voice 10%5 3CP2977-OEM-50 $38.00 56K PCI Internal Data/Fax 8%6 3CP215699A $39.74 56K Internal PCI 5%7 3CP1787E-OEM $40.00 56K ISA Internal 4%8 215686-C3 $74.80 220v 56k External 4%
Other 8%
SKU ASP Description %1 3CP3298-DEL $39.90 56K Controller PCI Data/Fax/Voice Internal V.90 28%2 3CN3BM1556-100-D $16.95 56K Mini PCI Internal V.90 18%3 3CP263595-OEM $22.00 56K WinModem PCI Data/Fax Internal V.90 14%4 3CP2977-OEM $40.00 56K Controller PCI Data/Fax Internal V.90 14%5 3CP2976-OEM $50.00 56K Controller PCI Data/Fax/Voice Internal V.90 11%6 3CP263594-OEM $24.00 56K WinModem PCI Data/Fax/Voice Internal V.90 12%7 Other 3%
Americas Sales Business Plan
IV. Sales: Strategic Overview
A. Strategic Overview
The US Robotics Americas sales organization is inclusive of the U.S., Canada, Mexico, and Latin America. The
sales team has been organized to grow and support the Americas four primary sales channels:
1) U.S. Channel 2) U.S. OEM 3) Latin America 4) Canada.
The sales organization strategy is based upon a focused plan of action, which include three key areas of
responsibility:
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Americas Sales Mix
Canada6% LAT
15%
US58%
U.S. OEM21%
Americas Sales Business Plan
1. Customer Relationships – Deep relationships at the senior executive level and down with a
defined group of key retailers, resellers, distributors, and OEM manufacturers. Beyond
sales, these customers provide valuable insight into the needs, demand, and issues of the
SMB and Consumer market spaces.
2. Business Planning – Sales management and field sales representatives are required to
maintain a current business plan for their respective areas of responsibility. This process is
critical in understand product demand, specific trends, and the overall health of the
business.
3. Forecasting – Through customer relationships and business planning, the sales
organization is able to accurately forecast by product and customer the anticipated demand
of each SKU. This detailed monthly process is linked closely and communicated with both
the Supply Chain & Product Management organizations to insure the correct ratios of
product scheduling and manufacturing.
By staying focused on these three areas, the sales organization is better able to understand the true demand
and anticipate the direction of the market. The processes are in place to track and manage the business so that
inventories, budgets, and supply are all in line with the overall company objectives.
IV. Sales: Strategic Overview
B. U.S. Channel
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U.S. RoboticsU.S. Robotics
DistributorDistributor
RetailRetail VARVAR
Direct MailDirect Mail
EnduserEnduser
Americas Sales Business Plan
U.S. Channel Sales is a field organization managed by Robin McSurley, Director of Channel Sales . A
Regional Director divides channel Sales into three regions each managed.
*Denotes Distributor
Each Regional Director manages 3-4 senior-level Account Managers who are responsible for the day-to-day
management and sales growth of these targeted top-tier accounts. The Regional Directors are also focused on
strengthening relationships with senior management at each of these accounts. These relationships are critical
as we partner with them to drive marketing and demand creation programs to pull product through the channel
to the enduser.
The Channel represents both the majority of current sales as well as the area of greatest growth opportunity.
Our strong relationships coupled with the market agility of key Channel partners also allows us to greatly
influence this dynamic area of the business. The Channel consists of Value Added Resellers (VAR), Retailers,
Direct Mail and Distributors.
Channel Overview and Definitions
A VAR is typically focused on a given business segment such as
Small/Medium Business (SMB), Corporate, Enterprise, or
Government/Education. The “Value Add” of a VAR usually includes IT
service and support on top of the hardware and/or software being sold to
the customer, also known as the enduser.
Retailers , such as CompUSA and Best Buy primarily sell to Consumers,
but also may overlap in the SMB space somewhat.
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Holly Oxford West
Holly Oxford West Peggy Jackson
CentralPeggy Jackson
Central
Joe Pennino East
Joe Pennino East
Top Customers:Ingram Micro*
InsightFry’s
Buy.com
Top Cust omers:Ingram Micro*
InsightFry’s
Buy.com
Top Cust omers:CompUSABest Buy
MicroCenterCDWDell
Top Cust omers:CompUSABest Buy
MicroCenterCDWDell
Top Customers:Tech Data*
D&H*Circuit City
StaplesOffice Depot
PC Connection
Top Cust omers:Tech Data*
D&H*Circuit City
StaplesOffice Depot
PC Connection
Americas Sales Business Plan
Direct Mail resellers, such as CDW and Insight, are focused primarily on the SMB space. They also act as
resellers, but do not provide IT services
Distributors act as the warehousing and logistics arm and serve as the fulfillment mechanism VAR’s, Direct
Mail, and Retailers. The distributor also adds value to the manufacturer by providing a strong marketing
infrastructure specifically designed to drive sales through the Channel. Although USR utilizes 5 distributors,
Ingram Micro (Santa Anna, CA) and Tech Data (Clearwater, FL) are the primary distribution customers.
IV. Sales: Strategic Overview
Key channel partners include:
Distributors: Ingram Micro, Tech Data, D&H, Synnex
Retailers: CompUSA, Best Buy, Circuit City, Staples, Office Depot, MicroCenter
Direct Mail: CDW, Insight, PC Connection, MicroWarehouse
Tier-2 Resellers: 3,000+ VAR’s, Resellers, and Small/Regional Retailers
Relationships with both the distributors and the Retailers, VARS, and Direct Mail who all purchase through
distribution are key to creating pull-demand in the SMB and Consumer market space.
Roughly 30% of the channel business is through the small and medium VARS purchasing through distribution.
As a result, a compelling VAR program is also in place to help grow this segment of the business and provide
sales with market intelligence in this space as well. The VAR program is supported by a subset in the Inside
Sales group.
Channel Growth
The focus of the Sales strategy for the U.S. Channel in an effort aimed at increasing the size of our
available pipelines in Retail, Mail Order, and the Reseller community.
The sales organization has been successful in significantly increasing our pipeline in the following areas:
1. Total number of National Partners.
2. Number of available Sales Outlets.
3. Average number of Product SKU’s per outlet.
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Americas Sales Business Plan
4. Addition of new product lines.
IV. Sales: Strategic Overview
C. U.S. OEM
OEM (Original Equipment Manufacturer) is a sales unit designed to capitalize on the market in which USR acts
a supplier of components to other major manufacturers. As an example, Dell and Gateway may integrate U.S.
Robotics modems into a given percentage of their PC offerings.
The OEM group is focused on strategic opportunities with large computer manufacturers (Tier-1) as well as
supporting smaller customers (Tier-2) who may be regional or lower-volume manufacturers. Today, the OEM
group is primarily focused on our core Analog and PC Card business. As we move forward, we are moving
swiftly into additional emerging markets such as Wireless and Soft-Modems.
Current Tier-1 Customers include:
Dell, Micron, Gateway, IBM, Hewlett Packard, Sun, and Compaq.
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3
1,424
6
ProductLine
Plat inumCust omers
SalesOut let s
AVG SKU’sper Out let
Market s
V.90 ModemsPC Card Modems
OEM
V.90 ModemsPC Card Modems
OEMV.92 ModemsCable Modem
DSLWireless
Q3/ Q4 ‘00 Q1/ Q2 ‘01
Ingram,Tech Data,CompUSA, Best Buy,Staples (US Only), CDW
Ingram,Tech Data, CompUSA, BestBuy, CDW, Circui t City , St aples(Canada) , I nsight, Fry ’s,MicroCent er, Sam ’s, Walmart
5
5,793
12
Consumer, SMB, OEM Consumer, SMB, OEM, Telco,VAR Program
Americas Sales Business Plan
In addition to high-volume core analog business, we also have significant opportunity in bringing additional
products to market by partnering with our own OEM suppliers, such as Broadcom and Conexant. By leveraging
the USR brand with new cutting-edge technology, USR is able to enter new markets, such as Soft-Modems
Broadband, Cable, and Wireless quickly and efficiently.
NOTE: Please see Section V.B. for more detailed information on the OEM Sales Cycle.
Last Revision 3/5/01 Page 21
Americas Sales Business Plan
IV. Sales: Strategic Overview
D. Latin America
Overview
The Latin America group includes sales to Mexico, Central America, Brazil, Argentina, Paraguay, Uruguay, and
Chili. The Latin American organization sells through resellers, distributors, and OEM relationships in the region.
Key Latin American customers include:
OEM Acer Mexico
Distribution Ingram Mexico, Intcomex, Tech Data Argentina
Resellers Acron, Vast Holdings, MPS Mexico, CHS Mexico, SED International
Key Objectives
• Local Support:
- RMA / DOA
- Call Center pre & post sales support
- End users warranty
• Launch and develop broadband products.
• Establish local subsidiary.
Sales Region Overviews
Below is a breakout of forecasted revenue for the Latin American region.
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Region 2001 ForecastArgentina $10,000,000Mexico $9,000,000Brazil $9,000,000Miami Operations $7,000,000Andean Region $4,000,000
$39,000,000
Americas Sales Business Plan
IV. Sales: Strategic Overview
Competit ion – Latin America
• AOpen launching Controller modems.
• Very aggressive price for new Genius retail internal modem ($ 39 street price).
• OEM Motorola’s PC chips still under $ 18.
• External D-Link w/chipset Rockwell $ 82.
• Retail PCI Internal D-Link $ 46.
• External C-Net 56K v.90 retail modem $ 58.
• OEM Internal C-Net w/chipset Lucent $ 16 !!!
Note: Please refer to the more comprehensive Latin American Sales Plan for more detail.
E. Canada
Canadian Channel Overview
U.S. Robotics (Canada) Corporation (formal entity realized January 1, 2001) began its Canadian operation September 5, 2000. In February 2001, U.S. Robotics elected to outsource its sales and marketing functions in Canada to Keating Technologies Inc.
Keating is a leading branch outsourcing service to the microcomputer and consumer electronics industry in Canada. They have expertise in developing and penetrating markets with over thirteen years of growth and
Last Revision 3/5/01 Page 23
Argentina26%
Mexico 23%
Brazil23%
Miami Operations18%
Andean Region10%
Americas Sales Business Plan
success in the Canadian market. They have offices in strategic locations across Canada in Vancouver, Toronto, Montreal and Halifax. This relationship allows U.S. Robotics to accelerate our go to market strategy while reducing the cost of sales by leveraging Keating’s scale and scope of operations.
Brock Evans, our Director of Canada manages the Keating relationship. The Keating account coverage model has allowed U.S. Robotics to go from a sales force of four to eleven. In addition, we will be leveraging their relationship with OEM accounts in Canada. This will allow us to incrementally grow the Canadian revenue by about $4M.
The structure of the Canadian Channel is similar to the channel structure in the United States. We have four distribution partners: Ingram, Merisel, MultiMicro and Tech Data. Last year the sales for Distribution were $16.9M.
Canadian Distribution Sales Mix
IV. Sales: Strategic Overview
Our distribution partners provide USR products to our Retail, Catalog and VAR customers. In Canada our top ten channel customers include:
Rank Customer Type 2000 Revenue 2001 Forecast
1 Future Shop Retail $1.6M $2.2M2 Business Depot Retail $1.3 $2.0M3 G.E. Capital Integrator $700k $500k4 London Drugs Retail $400k $500k5 EDS Integrator $390k $400k6 Dell Canada Catalog/Corp $380k $400k7 Insight Catalog $220k $2708 MicroWarehouse Catalog $200k $2609 Telus NSP/Telco $178k $24010 Misco Catalog $155k $240
Top ISP and Telco Accounts (Prospect)
• AOL • UUNet • Bell Canada
• Sprint • AT&T/Netcom • Telus
Last Revision 3/5/01 Page 24
Ingram35%
Merisel34%
Tech Data24%
MultiMicro7%
Americas Sales Business Plan
• Bell Mobility • Internet Direct • Rogers Cable
• Cantel • IDirect • MT&T
• Manitoba Tel
• Shaw
• SaskTel
• Cogeco
•
OEM Accounts
• Supercom • Northern Micro • Cybernetique
• Mind Computer • Elco • to name a few
Sales Demand
• Pricing for the Canadian market does not hit the price points needed for optimal sales. • Canadian Price Points required to move product: $49, $99, $149, $199, $249, $299 and on in $50
increments (Canadian dollars).
Growth Plans
End-Users
Corporate End-user (HOW WE WILL SELL TO THEM)
Leverage Keating’s 14 year database of over 350K customer contact records. 40% of these records are true
corporate customers, the others being consumer and SMB. This market segment would be telemarketed by
Keating’s inside sales team to generate demand for U.S. Robotics’ products. This inside sales team would work
in concert with NRO/VAR sales reps to maximize the conversion of leads to sales the corporate space for this
level of reseller.
IV. Sales: Strategic Overview
Retail Segment
Gold Retail Accounts (t ier one)
• Tier 1 accounts represent approximately 25% of total channel sales – Top 15 accounts
• Increase share of shelf, floor stacks, end caps and out of aisle programs
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• Growth programs at all accounts
• Consistent MDF/Co-Op based on ROI
• Soft bundles, special promos, sales contests, vendor days
Silver Retai l Accounts (t ier two)
• 100 accounts
• Reseller Advisory Council
• Growth programs at top 25 accounts with marketing resources
• End Caps, soft bundles, special promotions
• Inside Sales coverage
Bronze Retail Accounts (t ier three)
• 3000+ accounts
• Reseller Advisory Council
• National marketing promotions
• Inside Sales coverage
Distribution
• Increase mind share on the sales floor and with executives
• Maximize revenue
• Competitive Analysis to understand the market conditions
• Maximize USR MDF dollars available to increase brand
• Growth programs (increase customer breadth, manage VIR goals, etc.)
• Focus activities beyond Platinum retailers
• Target marketing activities through measurable ROI analysis
• Promote improved partnerships:
• Manage inventory on hand to ensure the right product mix
• Joint profit objectives
• Consistent sell in/sell out strategies each quarter
• Dedicated Distribution Account Manager
Channel VARs
NRO/Tier 1 VARs
• Increase penetration of the VAR channel
• Focus on top Tier 1 accounts (20 accounts) – approximately 25% of channel sales
• Internal sales/marketing promotions at the top Tier 1 accounts
• The VAR segment will be led with a new VAR Pack pricing model.
• Growth program to the VARs through a “Platinum Partner Program”
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Tier 2 and Tier 3 VARs
• Reach programs for the top Tier 2 and Tier 3 VARs (400 VARS)
• Evaluation, Seed, Dealer Demo, Employee Purchase Programs
IV. Sales: Strategic Overview
OEM/SI– approximately 20% of channel sales
• Our real challenge here is to identify the primary focus of each customer and create a multi-tiered
product/pricing strategy that will ensure channel integrity.
• White box represents over 45% of CPU sales in Canada
• Leverage current Keating relationships
• Target top 10 accounts
• Pricing and product strategy
• Co-marketing incentive program for OEM partners to install “USR Inside” campaign
Education
• Education as a segment includes K-12, Post Secondary (Universities and Colleges) and Institutional
(research facilities, grants).
• Identify pricing, product and segment strategy
• Leverage existing VAR/Campus Retail channel
• Campus Retail Canada (CRC) is a collective of 34 university and college campus stores across Canada
and serves one million students and 100,000 teaching and support staff with technology solutions.
Together, this consortium represented CDN$120 million in IT sales in 1999, of which 60% were
institutional purchases (research labs, administrative and facilities equipment) and 40% student
purchases.
• Penetrate the post secondary education market with a formal Education Program administered through
distribution to the educational resellers.
Government
• Includes government business, namely municipal, provincial and government funded organizations such
as hospitals and crown corporations
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• Leverage NRO’s, VARs and synergy partners
• Targeted events
• Bids and Tenders
ISPs
• We will develop a list of target accounts for new business and sales promotions to end-users. Focus on
DSL/Cable and other high-speed broadband technologies.
• Leverage the @Home cable consortium and retail outlets to increase the USR brand as a technology
leader in the analog and digital market.
• Leverage the Bell Canada and Telus Canada DSL store fronts to introduce USR as a world leader in
high speed internet connectivity.
• Establish USR as the “standard product offering” for new subscribers in the cable and DSL space.
IV. Sales: Strategic Overview
F. Inside Sales
The Inside Sales organization is currently in the process of being reorganized as outlined in this section of the
Plan. Inside Sales, as a unit, is primarily responsible for the following items:
• Inbound / Pre-Sales phone traffic, averaging 3,000 calls per month.
• Outbound sales and support phone calls to 300+ National and Alliance Partner accounts.
• Outbound / Inbound calls and opportunities to an undetermined number of Corporate accounts.
• Database management: Tracking account activity and capturing Inbound customer contact
information.
• Leads: Managing, disbursing, and following up leads passed to key channel partners
There are three job-levels that make up the overall direction and focus for Inside Sales:
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1. Inside Sales, National Accounts – Responsible for supporting named National accounts as well as
larger Corporate Accounts.
2. Inside Sales, Alliance Partners – Responsible for managing sales relationships with Alliance
Partners (Tier-2 Resellers) as well as small to medium business accounts. Will also handle overflow
Pre-Sales inbound phone calls.
3. Inside Sales, Pre-Sales – Primarily responsible for fielding Pre-Sales phone calls, capturing
customer information from Pre-Sales calls, and properly routing calls as appropriate.
National Account Support
National Account relationships will be managed by the Field Sales Team and supported by the Inside Sales
National Account reps. National Accounts Named National Accounts are as follows:
Distribution Retail Direct Mail
Ingram Best Buy CDW
Tech Data CompUSA Insight
D&H Circuit City PC Connection
Synnex Office Depot MicroWarehouse
Gates Arrow Staples
Sam’s
Walmart
Alliance Partners
Alliance Partners are all Tier-2 Resellers and Retailers outside of the named National Account list. Alliance Reps
will be responsible for primary account management of these 3,000+ accounts.
Pre-Sales
Pre-Sales accounts may be a mix of Consumers, Resellers, and Corporate accounts calling in for general
information or looking to engage with U.S. Robotics.
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V. Sales Operations
A. Overview
The Sales Operations role is designed to provide input into the overall sales strategy as well as manage the
infrastructure and processes necessary to execute upon the strategy. Sales Operations works closely with the
Sales Organization, Supply Chain, and Product Marketing to insure communication as it relates to the forecast
and build of products. The Director of Sales Operations works closely with the VP of Sales on developing and
executing and overall Sales business plan.
Sales Operations also tracks and analyzes key sales figures to determine market trends. Product run rates and
price points are also closely monitored, which is key to managing sales-out and inventory levels.
In addition, this role is responsible for the design and management of VAR and Retail marketing programs and
MDF budgeting.
B. Sales Cycles
The sales cycle for current U.S. Robotics products varies by Market Segment. The following summarizes the
average sales cycle and key steps within each primary segment. The information outlines below is focused on
U.S. Robotics Core Products (Analog modem line: External, Internal, WinModem, Softmodem, and Mobile
products).
1. U.S. Channel
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FinishedGoods
Distribution
DirectRetailer
VAR/Reseller
Direct Mail
Retail Consumer
SMB, Corporate
SMB, Corporate,Enterprise
12 3
4
1
Americas Sales Business Plan
Chart Detail:
1. The first step in the U.S. Channel sales cycle involves selling finished product into either a distributor, or to a
Direct Retailer (currently, only 2 retailers purchase direct from USR.) The U.S. Channel is focused on the
Sportster product line, which makes up approximately 96% of Channel Sales. Typically, USR builds to and
houses 3-4 weeks of Sportster inventory for the Channel.
2. Distribution, on average, purchases enough product to mirror the USR inventory model and maintain 3-4
weeks of inventory for each SKU. Each SKU is tracked weekly to assess changes in run rates.
3. The majority of VAR’s and Resellers do not maintain an inventory of product and purchase as need as
business is won from their respective clients. The sales cycle to an SMB or Corporate customer ranges from
2-6 weeks for smaller companies, up to 8-12 weeks for Enterprise clients. Steps include 1) Defining
Requirements 2) Evaluation 3) Testing 4) Requisition 5) Purchase.
4. Retailers target maintaining tighter inventories at 2-3 weeks on hand. Sales to consumers are primarily
driven by a combination of Price Point and brand recognition. Therefor, the sales cycle, driven by demand,
ranges from 4-8 weeks from Step 1 to Step 4.
V. Sales Operations
2. U.S. OEM
Tier-1 Customers: (National-level partners such as Dell and Compaq)
Chart Detail:
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FinishedGoods
QualificationProcess
1
Procurement
Approve/Disapprove
HubOperations
Purchase toDemand
2 3 4
New Customers: 6-8 Month CycleExisting Customer/New Product: 3-4 Month Cycle
ContractReview
Label Process/Changes
Americas Sales Business Plan
1. The sales process for Tier-1 OEM’s begins with a Qualification Phase in which they perform all the
required compatibility and quality-assurance testing. This phase typically lasts 90-180 days.
During this time, the Contract Review process also begins. Based on qualification result
assumptions, both parties begin to formulate contract points and potential volume commitments.
The Contract Review may take 45-60 days.
2. Once the Qualification Process is complete, the customer either approves or disapproves of the
basic product design and specs. If approved, the Procurement cycle begins. This includes custom
labels required to scan and track product as well as any changes to builds and materials needed.
This overall process can take 30-45 days.
3. After procurement and labeling is well under way, new Hub Operations must be set up or existing
Hubs must be prepared to handle the incoming product. A Hub is a physical point of distribution in
which OEM product is housed for the OEM customer to pull from as production levels require. This
segment of the cycle may take 30-60 days. Typically, the goal is to maintain no more than 2
weeks inventory at the hubs.
4. OEM Customers may purchase to demand levels once these processes are complete. This is the
actual point of sale in the OEM process, and USR invoices the OEM customer.
V. Sales Operations
Tier-2 Customers: (Smaller or Regional customers)
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FinishedGoods
QualificationProcess
1
Procurement
Approve/Disapprove
Purchase toDemand
2 3
New Customers: 30-60 Day CycleExisting Customer/New Product: Less than 60-day Cycle
ContractReview
Americas Sales Business Plan
Chart Detail:
1. The sales process for Tier-2 OEM’s, in comparison, is simpler and much short than Tier-1. The
Qualification phase normally takes less than 30 days. Requirements for Tier-2 OEM’s are not as
stringent as Tier-1 customers. Contract review is not as time-consuming, as very few modifications
are required.
2. Materials are procured by USR to build based on customer demand forecasts for product. No Hub
Operations are required for Tier-2. Typically this phase may take up to 30 days, but can be
much shorter.
3. Tier-2 customers purchase to demand directly from USR. USR works to maintain a minimal 2 week
or less inventory and build product on an as-need basis (Just-in-time inventory)
V. Sales Operations
C. Forecasting
Process Overview
The following outlines the basic overview of the Sales forecasting process. The final product will mirror the
overall company forecast template.
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Each of the three regions will be responsible for reporting their numbers as a rolling 12-month forecast. Although
the final forecast will be a simple monthly number by SKU, the detail behind it will allow us to analyze the data
by Tier-1 & Tier-2 customers as well as the percentage flowing through each distributor.
Tier-1 customers are defined as identified National Channel accounts (32 Customers). Tier-2 are all remaining
VAR’s. Retailers, and other distribution customers outside the Tier-1 category.
Forecasting Schedule
The forecast will be due to from each region to Robin McSurley on the 2nd Monday of each month and starts
with the following month.
For 2001, the due dates are:
January 8 July 9
February 12 August 13
March 12 September 10
April 9 October 8
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MasterList
Includes each Tier-1 Customer + Tier-2 category
I ngram TechDat a
D & H Arrow
OEM Lat inAmerica
Canada
Synnex
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May 14 November 12
June 11 December 10
V. Sales Operations
Process Detail
A set of 12-month forecast templates will be distributed to each Regional Director to disseminate among the
sales team as needed.
The above graphic is a sample of the forecasting template. Normally, the only column the Sales Rep will need to
fill in is the QTY (Quantity) column. The other columns will be filled in ahead of time on the template.
The columns are defined as follows:
Segment –Denotes one of the 4 sales segments, US, OEM, Latin America, or Canada.
Distributor – Simply denotes which distributor this segment of the forecast is for.
Customer – Will denote each of the Tier-1 customers individually, each with it’s set of SKU’s to forecast. This
allows us to track the percentage of any given product that a Tier-1 purchases though any given distributor. All
Tier-2 business will be combined into the single Tier-2 category.
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The remaining columns are self-explanatory.
This spreadsheet will be combined each month to form a database from which the data can be summarized in
any of several different formats, including the company standard template utilized for
Forecasting Rationale
Supporting the numbers must be the market intelligence that leads to the forecast. A combination of historical
data and subjective market data will help to validate the overall forecast.
Some basic questions to keep in mind for forecasting assumptions are:
• When a number is lower or higher than expected, why? What specific factors affect it?
• Price point analysis – What spec/street prices make up the volumes?
• Competitive factors.
• Other key issues affecting sales.
• Proposed actions or solutions.
VI. Programs
A. National Accounts (Platinum)
North America Channel Sales is currently focused on targeting specific national Retail and Direct Mail accounts, through field appointments, for the dual purpose of enhancing customer relationships and implementing new Channel sales programs. These key national accounts are enlisted in U.S. Robotic’s Platinum Partners Program.
The primary Platinum Partners targeted are listed below:
AccountBest BuyCDWCompUSACircuit CityInsightMicroWarehouseOffice DepotPC ConnectionSam’sStaples
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Wal-Mart
The Platinum Partners Program is based on the terms and conditions as outlined by Levin Consulting for Retail and Direct Mail programs. With the 2001 Americas MDF budget now in place, Sales has outlined the specific accruals and percentages for the accounts listed below. Sales is also in the process of finalizing and delivering programs to Sam’s, Wal-Mart, and PC Connection.
Account Ad Funds
MDF VIR Total
Best Buy 3.0% 2.0% 1.5% 6.5%CDW 3.5% 0.0% 0.0% 3.5%
Circuit City 6.0% 0.0% 3.0% 9.0%
CompUSA 6.0% 0.0% 3.0% 9.0%
Insight 3.5% 0.0% 0.0% 3.5%
MicroWarehouse 3.0% 0.0% 0.0% 3.0%
Office Depot 4.0% 2.0% 1.0% 7.0%
Sam's 2.0% 0.0% 0.0% 2.0%
Staples 4.0% 1.0% 1.5% 6.5%
Walmart 2.0% 0.0% 0.0% 2.0%
Category Descriptions:
Ad Funds – Core advertising dollars accrued based on Sales-Out.MDF – Discretionary funds accrued and utilized, at USR’s discretion, for specific programs.Max VIR – Represents the maximum percentage exposure if the top is attained. Volume Incentive Rebates will be assigned to each account with 2-3 bar levels (sales-out goals) and a corresponding rebate percentage. VIR’s will be assessed on a quarterly basis.
VI. Programs
Platinum Program Components
In addition to the ad funding, MDF, and VIR’s put in place to further drive business and increase market share,
the Platinum Program allows us to support these partners in others areas as listed below:
1. Inside Sales Support – Dedicated USR Inside Sales team members support Platinum Partners in
the following areas:
• Product support, information, and roadmaps.
• Special pricing requests.
• Outbound, regular communication.
• Lead generation.
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2. Product and Market Training – USR provides field-level training though a third-party
organization. USR supports Retail partners with in-store training and demos, as well as participation in
vendor floor days at key Direct Mail partners.
3. Special Pricing Bid Desk – Platinum Partners receive 2-4 hour priority response on competitive
and volume pricing opportunities.
4. Partners Web Sight – USR is currently developing a password-protected websight to be used as
an additional resource for our partners to download product information and access other USR
resources such as product images, logos, and technical support.
B. Alliance Partners
The U.S. Robotics Alliance Partner program is targeted at increasing our reach into the Small/Medium VAR and
Reseller community. Tier-2 VAR’s (The top 300 VAR’s outside of named National Accounts) represent roughly
30% of North American Channel sales.
The Alliance program centers around the USR Inside Sales team who maintain the primary responsibility for
proactively managing and growing relationships with the top 300 of our 3,000 VAR’s who purchase through
distribution. They are also available as needed for the remaining Tier-3 VAR’s.
This program is currently in the process of designing process and implementation with a Targeted rollout for the
first part of Q2, 2001.
The Alliance Program includes the following components:
• Inside Sales Support
• Marketing Support & Communication
• “Partners Place” Web Sight
• Certification and Training
• Evaluation & NFR Units
• Special Bid Programs
• Co-Marketing Programs (only available to Resellers with $50,000+ annual revenue)
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VI. Programs
C. International
Currently, Latin America has a program in place known as Direct Connection aimed at increasing VAR sales
and participation.
WEB SIGHT: www.usrdirect.com
U.S. Robotics Direct Connection is a sales incentive program dedicated to rewarding loyal Reseller customers. Resellers can earn prizes for selling U.S Robotics' products. The program is facilitated through a web-based registration and point redemption system.
U.S. Robotics Direct Connection allows Resellers to earn points in two different ways:• Based on the revenue of purchases of U.S. Robotics products- earn 1 point in the program
for every $500(U.S. Currency) spent. • Based on the frequency of U.S. Robotics purchases- receive points depending on the
amount of consecutive months that you purchase U.S. Robotics products in the quarter.
Program Rules
• U.S. Robotics products purchased between January 1, 2001 and December 31, 2001 are eligible for the
program
• Only registered resellers will be eligible to win prizes with U.S. Robotics Direct Connection.
• U.S. Robotics Direct Connection only applies to resellers in Mexico, Central America, South America,
and the Caribbean.
• All purchases must be made from authorized distributors of U.S. Robotics. A list of registered resellers
will be found on our website at the end of June. In order to remain in the program resellers must abide
by the frequency and revenue requirements of their respective U.S. Robotics Direct Connection
category level. Those who don't meet their requirements will be eliminated from the program.
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VII. Telecommunications Init iative
A. Overview
Note: The Telecommunications Initiative was recently started with the hire of Jillene McCarty, Manager of Telco Sales, January 3, 2001.
The fast-paced, exciting world of Digital Subscriber Line (DSL) and High Speed Broadband Connectivity
(Internet Cable,) has opened up a monumental opportunity for the suppliers and manufacturers of the transport
equipment necessary to facilitate this technology.
U.S. Robotics is in a unique position that enables the company to utilize its name recognition, it’s commitment to
quality, its existing relationships and sales channels and the development of its telecommunications modems.
The following sales plan will outline the initial scope of the project. It will support the premise that the market
demand is optimal and will outline the key personnel and target accounts that will make this endeavor
successful.
Identification of the following portions of the business model is included in this plan. The basic summary outline
follows:
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• Description of the business of high-speed connectivity and it’s two related technologies
• A summary of US Robotics history and it’s involvement in the current endeavor
• A general overview of management and how it will relate to this plan
• The basic description of the products and services
• A detailed listing of the organizational structure and it’s team members
• General market information
• Target market and account category information
• Initial target account list.
Additionally, price-point information, competitive analysis, as well as forecast information will be the next step in
the evolution of this working document.
At this point, the current project forecast numbers will remain the same. However, the current target dates to
meet those deadlines will need to be adjusted to reflect both production/development schedules and the typical
90 – 240 day lead time in the sales cycle, currently experienced in the telecommunications market.
As the growing family of high-speed connectivity technologies emerges, along with, already, enormous
bandwidth demand increasing, the future success of this venture is to be taken on with the spirit of excitement.
At the same time US Robotics, Telecommunications division must and will work fervently to stake our claim in
this market, that while continuing to grow, is well under-way.
B. Business Description
Digital Subscriber Line and Internet connectivity via broadband are simply Internet connections piped into the
business or home via a phone line in the case of DSL and via coaxial cable installed for cable television.
Neither DSL (ADSL) or Broadband access to the Internet, actually refer to a line, but to modems that convert a
standard transport mechanism into a high-speed digital pipe.
It is the mission of the Telecommunications Division of US Robotics to become the market leader, supplying
DSL and Cable modems throughout North America.
US Robotics has proven to be an industry leader in the design, manufacturing and sales of analog modems.
However, with the advances in telecommunications, coupled with market demand, US Robotics is striking out in
a new direction to directly service the telecommunications industry with two new products.
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VII. Telecommunications Init iative
US Robotics will offer a DSL Modem and a Cable Modem to be supplied to meet the demand of high-speed
Internet connectivity.
While there are other products on the market, there is clearly no competition when factors of quality, reputation
and longevity in the modem business are examined.
In addition, the following information is in its evolutionary stage and will be reported when applicable:
• Product and Service Uniqueness
• Product and Service Descriptions
• Competitive Comparisons
• Current Plant Production and Capacity
• Production Issues
C. Broadband Market Analysis
Today, about 44 million homes in the U.S. and Canada – 40% of those nations’ households with cable television
– are equipped for service. Thousands of homes are being upgraded every day and are being upgraded for the
purpose of offering broadband services.
The worldwide DSL subscriber installed base jumped 447 percent in 1999 and is expected to explode from 4.5
million in 2000 to 66.4 million by 2004. The United States currently represents more than half of the worldwide
DSL lines installed. With approximately ten million households currently subscribing to DSL, in the US alone,
the market potential is evident.
In reviewing the demand for
D. Account Categories
1. EMERGER'S AND TIER 2 & 3 CARRIERS
A. CABLE
B. DSL
2. MAJORS AND TIER 1 CARRIERS
A. CABLE MSO’s
B. DSL
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3. STOCKING DISTRIBUTORS – VARS AND TURNKEY SOLUTION PROVIDERS
A. CABLE
B. DSL
4. OEM’s
A. CABLE
B. DSL
VII. Telecommunications Init iative
E. Customer Profile
The basic premise of the customer profile identification is to determine where the purchasing power lies within
the intricate network of service providers, carriers and partnerships.
The trend that we see in the cable industry is that of the large MSO’s teaming with large ISP’s to offer service.
Ultimately, the hardware decisions and the maintenance of the network typically fall on the shoulders of the
MSO. However, it is important to assess exactly where the decisions are being made.
An example of this is the teaming of AT&T and @Home. AT&T Broadband formed an alliance with @Home,
with the resulting product being high-speed connectivity marketed as AT&T@Home.
In the case of DSL, the market shows the same trend, but not to the same degree. There are many more
players in the DSL arena due to the abundance of CLEC’s and the new fiber optic networks that have been
installed since 1996.
One of the first goals will be to assign these accounts to teams, communicate information already gathered
regarding the account and set objectives to gain knowledge and market share within the account.
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F. Target Accounts Columns= 1 Account 2 Type
@Link CLECA Novo Broadband(Cable Link)
MSO
ADC OEM’sAdelphia Communications Corp
Turnkey
AllTelll ISPAllTell CLECAeerie CLECAlopa Networks MSO America On Line ISPAmeritech CLECAT&T LECAvista Communications CLECBirch Telecommunications CLECBlack Hills Fiber Com MSOBlueStar Communications CLECBroadslate CLECCablevision MSOCentruy Tel Communications
CLEC
Chazy and Westport Telephone Co.
CLEC
Choice One CLECCoManage Turnkey SolutionComdisco Turnkey/FinanceCommunications ISP ISPConvergent Communications
CLEC
Cooperative Communications
CLEC
CoServ Communications CLEC/MSOCovad CLECCox Communications MSODell Computers OEM’sDenver Online ISPDevelopOnline MSODSL.Net CLECE Link MSOEarth Link Inc. ISPEspire CLECGCI CLECGenuity CLECGlobal Metro Networks MSOHickory Tech CLECHuxley Cooperative MSOIntermedia CLECIonex Telecommunications CLECLightstripTelecom CLECMaxcess CLECMcLeod Communications CLECMid Continent Cable MSOMpower Communications CLECNarad Networks MSONAS-Corp CLECNational Access Solutions CLECNew Express ISPNetsurfer Inc. Turnkey/Alliance
Network Access Solutions CLECNetworks Inc. ISPNew Edge Networks CLECNew Path CLECNew South CLECNorigen Communications CLECNtelos CLECPacific Bell CLECPolaris Venture Cap. Finance/VCQwest LECRCN MSORhythms CLECRidgeRun Inc MSORio Mesa Utility Services MSORoadrunner ISPRoseville Telephone Co. CA CLECSBC CLECSommera ResellerSprint LECTelocity CLECTess Communications CLECTime Warner MSOUS Link CLECValue Links (Rhythms) CLECVectris CLECVerizon CLECWilliams Communications CLEC
VIII. National Account Profiles
Included in this section are brief overviews for each of the 16 top U.S. National Accounts. This section is
intended to provide insight into our sales volumes, top selling products, and depth of professional relationship
with key contacts at each account.
A. Distribution
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Account: Ingram Micro
Industry Segment: Distribution
Annual Revenue: $30.7 Billion
Headquarters: Santa Ana, CA
Main Phone: 800-456-8000
Internet: www.ingrammicro.com
Stock Symbol: IM
Locations: Ingram Micro operates in 36 countries and has seven
distribution centers located in Fullerton, CA; Carol Stream, IL;
export Sales in Miami, FL; Newark, CA; Carrollton, TX;
Jonestown, PA; Millington, TN; an assembly/integration center
in Memphis, TN; and a returns warehouse in Santa Ana, CA.
Business Description:
Ingram Micro Inc. is the largest global wholesale provider of technology solutions, products and services. Ingram
Micro’s global regions provide the distribution of technology products and services, marketing development and
supply chain management services to more than 175,000 technology solution providers and 1,700
manufacturers. The company is focused on maximizing shareowner value and achieving customer satisfaction
through innovation in the information technology supply chain. .
USR Annual Sales: $135,607,000
Top 3 Selling Sku’s:
1. 5686 32%
2. 5699A 16%
3. 5610A 12%
Professional Relationships
Name Title Length of Working Relationship
Jodi Honore Sr. VP of Networking Products 6 years
Lanay Cerilli Director Storage and Components Division 4 years
Chris Digma Sr. Product Manager 4 years
Nicole Boling Product Manager 1 year
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VIII. National Account Profiles
Account: Tech Data
Industry Segment: Distribution
Annual Revenue: $19.9 billion
Headquarters: 5350 Tech Data Drive, Tampa, FL
Main Phone: 727-539-7429
Internet: www.techdata.com
Stock Symbol: TECD
Locations: Miami, Fla. Suwannee, Ga. Swedesboro, N.J. Fort Worth, Texas Fontana, Calif. South Bend, Ind.
Business Description:
Tech Data Corporation (NASDAQ/NMS: TECD), founded in 1974, is a leading global provider of IT products,
logistics management and other value-added services. The Fortune 500 Company and its subsidiaries serve
more than 100,000 technology resellers in the United States, Canada, the Caribbean, Latin America, Europe
and the Middle East. Tech Data's extensive service offering includes pre- and post-sale training and technical
support, financing options, configuration and assembly services as well as a full range of award-winning
electronic commerce solutions. The company generated sales of $19.9 billion for the past four quarters reported,
which ended October 31, 2000.
USR Annual Sales: $67M (June 2000 – January 2001)
Top 3 Selling Sku’s:
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1. 5686 31%
2. 5699A 19%
3. 5610A 10%
Professional Relationships
Name Title Length of Working Relationship
Tim Curran Sr. VP Sales 13 Years
Elio Levy Sr. VP Marketing 3 Years
Dan O’Brien VP Marketing Peripherals 17 Years
Roy Appelbaum VP Marketing Networking 1 Year
Wendy Rausch Director Marketing Peripherals 3 Years
Monte White Director Marketing Peripherals 1 Year
Tim Orselli Manager of Strategic Sales 6 Years
Sean Haggerty Marketing Manager Software 8 Years
Barbara Heck Sr. Product Manager 4 Years
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VIII. National Account Profiles
Account: D&H
Industry Segment: Distribution
Annual Revenue: $700M
Headquarters: Harrisburg, PA
Main Phone: 800-877-1200
Internet: www.dandh.com
Stock Symbol: Privately Held Company
Locations: 7 with 6 Warehouses located in Harrisburg,PA; Randolph, MA;
Ft. Lauderdale, FL; Chicago, IL; Visalia, CA; Dallas, TX
Business Description:
A full line, multi-divisional national distributor. D&H's divisions include the Computer Products Division, Home
Entertainment Division, Educational Division, Security Products Division, Government Services Division and an
eD&H eCommerce Division.
USR Annual Sales: $350K YTD ‘01
Top 3 Selling Sku’s:
1. 3CP5699A 30%
2. 5686 28%
3. 5610A 23%
Professional Relationships
Name Title Length of Working Relationship
Izzy Schwab CEO 14 Years
Gary Brothers President 14 years
Jeff Davis VP Sales 14 Years
Tina Fisher Product Manager 9 Years
Jennifer Tarbet Assistant Buyer 6 months
Last Revision 3/5/01 Page 48
Americas Sales Business Plan
VIII. National Account Profiles
Account: Gates/Arrow
Industry Segment: Distribution
Annual Revenue: $2.1B
Headquarters: Greenville, SC
Main Phone: 800-332-2222
Internet: www.gatesarrow.com
Stock Symbol: ARW
Locations: Memphis, TN (Main Warehouse)
Dayton, NJ
Sparks, NV
Business Description:
Gates/Arrow, a division of Arrow Electronics, Inc., is a full-line technical distributor of computer systems,
peripherals, and software to value-added resellers in North America. They offer product availability across the
widest range of computing platforms, from desktop systems to enterprise computing environments.
Last Revision 3/5/01 Page 49
Americas Sales Business Plan
USR Annual Sales: $4M ( Fiscal 2000)
Top 3 Selling Sku’s:
1. 5686 60%
2. 2806 22%
3. 3453 7 %
Professional Relationships
Name Title Length of Working Relationship
Dave Casella Sr. VP Marketing 2 Years
Mimi Anderson VP marketing 3 years
Jon Berry Sr. Product manager 7 Years
Dena Mensch Business Manager New
Arrow NACP (North American Computer Products) has several companies we can address through our
relationship with Gates/Arrow. They are as follows:
a.) Wyle Electronics
b.) Gates
c.) Consan
d.) Support Net
e.) SBM
f.) Mocha
VIII. National Account Profiles
Last Revision 3/5/01 Page 50
Americas Sales Business Plan
Account: SYNNEX Information Technologies
Industry Segment: Distribution and Contract Manufacturing
Annual Revenue: $4 Billion
Headquarters: Fremont, CA
Main Phone: (800) 756-9888
Internet: www.synnex.com
Stock Symbol: Private
Locations: US Sales- Fremont and Greenville. Warehouses in Chicago,
NJ, Fremont and Memphis
Business Description:
SYNNEX Information Technologies, Inc., founded in 1980, is an information technology (IT) design-to-
distribution services company which provides a comprehensive range of offerings to original equipment
manufacturers (OEMs) and value-added resellers (VARs). Design-to-distribution services include design,
engineering and manufacturing services, IT distribution, marketing, logistics and customer support services, and
information technology support services.
USR Annual Sales: $5.2MM
Top 3 Selling Sku’s (in Units):
1. 5686 50%
2. 5610A 26%
3. 5699A 11%
Professional Relationships
Name Title Length of Working Relationship
Peter Larocque Sr. VP Sales of Product Management 3 mos.
Wayne Kendrick VP of Emerging Technologies 6 mos.
Ron Sakurai Sr. Product Manager- Networking 6 mos.
Jeanna Chambers Sr. Marketing Manager 6 mos.
Maria Magtalas Product Manager 6 mos.
Suzanne Lipscomb Marketing Manager 6 mos.
Last Revision 3/5/01 Page 51
Americas Sales Business Plan
VIII. National Account Profiles
B. Retail
Account: Best Buy
Industry Segment: Retail
Annual Revenue: $10.2B
Headquarters: Eden Prairie, MN
Main Phone: 952-947-2000
Internet: www.bestbuy.com
Stock Symbol: BBY
Locations: 473
Business Description:
The largest volume specialty retailer of consumer electronics, personal computers, entertainment software and
appliances.
USR Annual Sales: $19M
Top 3 Selling Sku’s:
1. 5699A 50%
2. 5686 35%
Last Revision 3/5/01 Page 52
Americas Sales Business Plan
3. 5610A 15%
Professional Relationships
Name Title Length of Working Relationship
Wayne Inouwye Sr. VP Computer Merchandising 10 Years
Bob Davidson Sr. Merchandising Manager - Computer 7 Years
Arnel deJesus Merchandise Manager - bestbuy.com 7 Years
John Maskel Merchandise Manager - Musicland 5 Years
Scott Herkelman Senior Buyer 1 Year
Brian Cherchenko Buyer 2 Years
VIII. National Account Profiles
Account: Circuit City
Industry Segment: Office Superstore
Annual Revenue: $12.6 Billion
Headquarters: 9950 Mayland Dr, Richmond, VA 23233-1463
Main Phone: 804-527-4000
Internet: www.circuitcity.com
Stock Symbol: CC
Last Revision 3/5/01 Page 53
Americas Sales Business Plan
Locations: 590 Superstores
Business Description:
Circuit City is a leading national retailer of brand-name consumer electronics, personal computers and
entertainment software. On January 5, 2001, Circuit City operated 590 Superstores and 39 Circuit City Express
mall stores in more than 155 markets. The Circuit City Group also includes a retained interest in the equity value
of the CarMax Group.
USR Annual Sales: New Account – opening order of $2.8M, March 2001.
Top 3 Selling Sku’s:
N/A
Professional Relationships
Name Title Length of Working Relationship
Mike Ryan VP Merchandising 8 Years
Andy Shivak Sr. Buyer 3 Years
Last Revision 3/5/01 Page 54
Americas Sales Business Plan
VIII. National Account Profiles
Account: CompUSA
Industry Segment: Retail
Annual Revenue: Privately held
Headquarters: Dallas, TX
Main Phone: 972-982-4000
Internet: www.compusa.com
Stock Symbol: Privately held
Locations: 218
Business Description:
Nation’s leading retailer and reseller of personal computer related products and services. These Superstores
serve retail, corporate, government, and education customers, and include technical service departments.
USR Annual Sales: $24M
Top 3 Selling Sku’s:
1. 5686 35%
2. 5699A 45%
3. 5610A 20%
Professional Relationships
Name Title Length of Working Relationship
John Lostroscio Sr. VP 10 Years
Ross Garner Sr. Buyer 10 years
Last Revision 3/5/01 Page 55
Americas Sales Business Plan
VIII. National Account Profiles
Account: Micro Center
Industry Segment: Retail
Annual Revenue: Privately Held
Headquarters: Hilliard, OH
Main Phone: 614-850-3000
Internet: www.microcenter.com
Stock Symbol: Privately Held
Locations: 18
Business Description:
Last Revision 3/5/01 Page 56
Americas Sales Business Plan
Micro Center began in 1979 and has steadily grown into one of the largest computer retail companies in the
United States. They are known as “The Computer Department Store” with a highly trained sales staff, superior
customer service and technical support personnel.
USR Annual Sales: $3,000,000
Top 3 Selling Sku’s:
1. 5686 40%
2. 5610A 30%
3. 5699A 15%
Professional Relationships
Name Title Length of Working Relationship
Kevin Jones Merchandise Manager 1 Year
Jack McPeek Merchandise Manager 1 Year
Last Revision 3/5/01 Page 57
Americas Sales Business Plan
VIII. National Account Profiles
Account: Office Depot
Industry Segment: Office Superstore
Annual Revenue: $11.6 Billion
Headquarters: 2200 Old Germantown Road, Delray Beach, FL 33445
Main Phone: 800-937-3600
Internet: www.officedepot.com
Stock Symbol: ODP
Locations: 1,020 Office Depot stores operating in 9 countries
Business Description:
Office Depot, Inc., founded in 1986, is the world’s largest seller of office products and an industry leader in every
distribution channel, including stores, direct mail, contract delivery, the Internet and business-to-business
electronic commerce.
USR Annual Sales: $10.1M
Top 3 Selling Sku’s:
1. 5686 48%
2. 3056 29%
3. 3CP5699A 10%
Professional Relationships
Name Title Length of Working Relationship
Jeff Haymen Marketing Manager 7 Years
Bryan O’Connell Divisional Merchandise Manager 3 Months
Shawn Erdek Buyer 3 Months
Last Revision 3/5/01 Page 58
Americas Sales Business Plan
VIII. National Account Profiles
Account: Sam’s Club
Industry Segment: Retail-Mass Merchant
Annual Revenue: See Wal-Mart
Headquarters: Bentonville, AR
Main Phone: 501-277-7630
Internet: www.samsclub.com
Stock Symbol: See Wal-Mart
Locations: 480
Business Description:
Sam’s Club is the nation’s leading members-only warehouse. They offer 39 million menbers exceptional value
on name-brand merchandise at “members only” prices for both business and personal use.
Last Revision 3/5/01 Page 59
Americas Sales Business Plan
USR Annual Sales: New Account – Opening order $1M, March 2001
Top 3 Selling Sku’s:
1. NEW – 5699A
Professional Relationships
Name Title Length of Working Relationship
Robby Lopez Buyer 5 Years
John Cowgur Assistant Buyer 5 Years
VIII. National Account Profiles
Last Revision 3/5/01 Page 60
Americas Sales Business Plan
Account: Staples
Industry Segment: Office Superstore
Annual Revenue: $9 Billion
Headquarters: 500 Staples Drive, Framingham, MA 01702
Main Phone: 508-253-5000
Internet: www.staples.com
Stock Symbol: SPLS
Locations: 1,100 Office Superstores across US
Business Description:
Staples Inc. is a $9 billion retailer of office supplies, furniture and technology to consumers and businesses from
home-based businesses to Fortune 500 companies in the United States, Canada, the United Kingdom,
Germany, the Netherlands and Portugal.
USR Annual Sales: $9.4M
Top 3 Selling Sku’s:
1. 5686 43%
2. 5687 30%
3. 3CP5699A 13%
Professional Relationships
Name Title Length of Working Relationship
Philo Pappas Sr. VP Merchandising 7 Years
Peter Scala VP Merchandising 7 Years
Bruce Bressler Director of Merchandising 3 Months
Gaurav Bahl Product Manager - Merchandising 7 Years
Susan Townsend Product Manager 3 Months
Last Revision 3/5/01 Page 61
Americas Sales Business Plan
VIII. National Account Profiles
Account: Wal-Mart
Industry Segment: Retail
Annual Revenue: ($M) 191,329.00
Headquarters: Bentonville, AR
Main Phone: 501-273-4000
Internet: www.wal-mart.com
Stock Symbol: WMT
Locations: 2700
Business Description:
Operates numerous discount stores and Supercenters throughout the United States and several other markets
world-wide. Principally engaged in mass-merchandising, offering customers discounted goods and services
through innovative marketing strategies.
USR Annual Sales: New Account – Launching March 2001
Top 3 Selling Sku’s:
1. 5699A
2. 5686D
Last Revision 3/5/01 Page 62
Americas Sales Business Plan
3. 5610A
Professional Relationships
Name Title Length of Working Relationship
Alan Henry Sr. Marketing Manager 6 Years
John Kooy Sr. Buyer 1 Year
VIII. National Account Profiles
C. Direct Mail
Account: CDW
Industry Segment: Direct Solutions Provider
Annual Revenue: $3.8 Billion
Last Revision 3/5/01 Page 63
Americas Sales Business Plan
Headquarters: Vernon Hills, IL
Main Phone: 800-830-4239
Internet: www.cdw.com
Stock Symbol: CDWC
Locations: 1 Warehouse located Vernon Hills, IL along with headquarters.
Sales locations: Chicago, Buffalo Grove, Lincolnshire, &
Vernon Hills, IL. CDW Government, Inc. (CDW-G), subsidiary
of CDW, has 2 locations: Chantilly, VA (outside reps) and
Lincolnshire, IL (inside reps). June 2001, they will combine
Vernon Hills, Buffalo Grove, & Lincolnshire to a new location –
Metawa, IL.
2 Retail showrooms: Vernon Hills and Chicago, IL.
Business Description:
CDW is the country's leading direct solutions provider, offering complete, customized computing solutions for
businesses and consumers nationwide. With competitive prices on a selection of thousands of computer
products, CDW is the No. 1 authorized direct source of many top name brands. Their direct model specializes
in serving small and medium-sized businesses. Offering one-on-one relationships with highly trained,
knowledgeable account managers
USR Annual Sales: $20M
Top 3 Selling Sku’s:
In 2001:
1. 5686 36%
2. 5610A 12%
3. 3CXM756 8%
Professional Relationships
Name Title Length of Working Relationship
Michael Krasny Chairman & Director 9 Years
Greg Zeman Vice-Chairman & Director 9 Years
Paul Kozak Sr. VP of Purchasing 9 Years
Dan Kass Sr. VP of Sales 7 Years
Last Revision 3/5/01 Page 64
Americas Sales Business Plan
Joe Kramer VP of Marketing 3 Years
VIII. National Account Profiles
Account: Insight
Industry Segment: Direct Marketing
Annual Revenue: $2.04 Billion
Headquarters: Tempe, AZ
Main Phone: 800-INSIGHT
Internet: www.insight.com
Stock Symbol: NSIT
Locations: US Sales- Tempe and Montreal. Offices in the U.K. and
Germany. 1 Warehouse in Indianapolis
Business Description:
Insight Direct Worldwide, Inc. is a leading global direct marketer of computers, hardware and software, offering a
broad line of more than 110,000 brand name products primarily to businesses in the United States, Canada, the
United Kingdom and Germany. Insight sells products via the Internet and by a staff of customer-dedicated
account executives utilizing proactive outbound telephone-based sales, electronic commerce and electronic
marketing.
USR Annual Sales: $6.76MM
Top 3 Selling Sku’s (in Units):
1. 5686 48%
2. 5610A 13%
3. 5699A 10%
Last Revision 3/5/01 Page 65
Americas Sales Business Plan
Professional Relationships
Name Title Length of Working Relationship
Tim Crown Chairman 7 Years
Mike Gumbert President and COO, Insight Worldwide 7 Years
Rob Brinkman Sr. VP 7 Years
Brian Hicks VP of Product Management 2 Years
Scott DeTota Director Product Management – CPU’s 5 Years
VIII. National Account Profiles
Account: MicroWarehouse
Industry Segment: Mail-Order
Annual Revenue: $2.8 Billion
Headquarters: Norwalk, CT
Main Phone: 800-9273468
Internet: www.warehouse.com
Stock Symbol: Privately-Held Company
Locations: 3 US Locations (Norwalk, CT; Lakewood, NJ; Gibbsboro, NJ)
Last Revision 3/5/01 Page 66
Americas Sales Business Plan
With 1 Warehouse (Columbus, OH) and 6 International
Locations (UK, Canada, France, Germany, Sweeden, and the
Netherlands)
Business Description:
MicroWarehouse, Inc. is a multi-billion dollar specialty catalog and online retailer and direct marketer of brand
name personal computers, computer software, accessories, peripheral and networking products to commercial,
education, government, and consumer customers.
USR Annual Sales: $6.2 Million
Top 3 Selling Sku’s:
1. 5686 40%
2. 5610A 15%
3. 5689 10%
Professional Relationships
Name Title Length of Working Relationship
Jeff Gentile Sr. VP of Merchandising 5 Years
Greg Stinsa Vice President of Outbound Sales 7 Years
Peter Scharfglass Vice President of Sales; E-Business 4 Years
Justin Carmichael Director, Advertising 2 Years
Chris Roth Senior, Merchandising Manager 3 ½ Years
Mary Jo Powlishen Senior, Modem Buyer 6 Years
Rick Vertula Product Marketing Manager 1 ½ Years
Last Revision 3/5/01 Page 67
Americas Sales Business Plan
VIII. National Account Profiles
Account: PC Connection
Industry Segment: Mail-Order
Annual Revenue: $1.6 Billion
Headquarters: Merrimack, NH
Main Phone: 603-423-2163
Internet: www.pcconnection.com
Stock Symbol: PCCC
Locations: 4 Locations (Merrimack, NH; Marlboro, MA; Dover, NH;
and Keene, NH) with 1 Warehouse in Columbus, OH
Business Description:
PC Connection, Inc., through its subsidiaries, is a leading direct marketer of business computing solutions to
small and medium-sized businesses, educational and government institutions, and individual consumers
USR Annual Sales: $3.7 Million (Year 2000)
Top 3 Selling Sku’s:
1. 5686 31%
2. 5699A 15%
3. 5610A 12%
Professional Relationships
Name Title Length of Working Relationship
Wayne Wilson President 7 Years
Bob Wilkins Executive Vice President 7 Years
Larry Laine Director of Networking 1 ½ Years
Peter Szydlik Product Marketing Manager 1 Year
Last Revision 3/5/01 Page 68
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