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Atlee Valentine Pope, President and CEO of Blue Canyon Partners, addressed an audience of nearly 200 wholesalers at a national wholesaler conference this month. Atlee’s presentation challenged wholesalers to look at their market today and asked two key questions: has the market changed, and what are your customer needs?
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© 2014 Blue Canyon Partners, Inc.
Overcoming Your Growth Challenge
© 2014 Blue Canyon Partners, Inc.
Market Challenges
Ecommerce
Advanced Technologies
© 2014 Blue Canyon Partners, Inc.
Today’s Discussion
Changes in
Markets
Case Studies
Customer Needs
Growth Challenge Checklist
© 2014 Blue Canyon Partners, Inc.
Tide went out
and left a
new beach
Shrinking opportunities
Retrenchment
Risk avoidance
Profitability
Cash is king
Yesterday…
2008 2009 2010 2011 2012
The Great Recession
Previously
“all boats rose
with the tide”
© 2014 Blue Canyon Partners, Inc.
Slow growth…
“New Norm”
Get under
the hood and
tune up the
engine
...Today
“Recovery”
2013 2014 and beyond…
Rebound –
but not to
pre-downturn
levels
© 2014 Blue Canyon Partners, Inc.
Growth Segments
Commercial vs. industrial vs.institutional vs. residential
New construction vs. aftermarket
Top cities vs. second cities
East vs. South vs. West vs. Midwest
Consolidation
Suppliers
Channel partners
End customers
1. Has the Market Changed?
ContractorSuppliers Wholesaler End Customer
Converging Roles
Packagers to system integrators
Component suppliers to equipment suppliers
Distributors to value-added resellers
New Entrants
Low-cost Asian suppliers
Big Box retailers
eCommerce channel players
© 2014 Blue Canyon Partners, Inc.
Decreased headcount
Sales teams focused on
what they did best
Shift to large projects; abandoned
small-medium projects
Case Study: Shifting Growth Segments
“When you elephant hunt, you risk leaving behind the segments that
today offer broad-based sustainable growth.”
Electrical Distribution
Outcome:
Decrease in 2.4 share points
© 2014 Blue Canyon Partners, Inc.
Security Solutions
New construction dried up
Repair, replacement, remodelingwas the only game in town
Attracted new construction playersinto the aftermarket
Little territory integrity
eCommerce entrants
Case Study: Converging Roles & New Entrants
“It’s a hot mess, and you can’t putthe genie back in the bottle.”
Outcome:
Competitive intensity fueled price pressures…
© 2014 Blue Canyon Partners, Inc.
2. What Are Your Customers’ Needs?
• Focused on your products/services
• Minimal distraction from other suppliers
Share of Wallet
• Requires wholesaler’s value-added support
• Order processing, credit, logisticsCapabilities
• Operates in a growth market
• Sells to non-price sensitive end customers
Segment
• Strong, viable, well-positioned
• Succession management and plansSustainability
• Embraces strategic supplier relationships
• Willing to invest in Better or Best offer
Loyalty
© 2014 Blue Canyon Partners, Inc.
Dealers
From selling hardwareto servicing advanced technology
Shortage of technical talent
Succession management
Lack of financial acumen
Farmers
Maximize yield output
Precision planting and routing
Optimize equipment run time
Assess:
▫ Weather simulations
▫ Soil analysis
▫ Seed sensors
▫ Chemical applications
Case Study: End Customer Needs
Agriculture Equipment
© 2014 Blue Canyon Partners, Inc.
Challenges
EfficientService Drives
Profits
Call Backs Drain
Profits
New Entrants Customer
Experience
Recruiting, Training &
Succession
“Finding, recruiting, and training skilled guys
is the name of the game, keeping these folks
involves a good, balanced incentives program.
The business is all about people and who will
eventually take my place.
“If I can get each of my trucks to complete just one
more call per day that can be a huge profit to my
bottom line. Scheduling the service calls so there
is less time on the road & more sites to cover
matters.”
“Call backs are a killer.
When we have to go back
to the site because the
installation was faulty or
the replacement part
was incorrect, this is a
true waste.”
“For independent C-stores, buying
groups are starting to emerge a
regional basis, serving local stores.
They are getting into many products,
from refrigeration to prepared foods.
They provide training to these store
owners principally to improve
profitability and efficiency
for store owners.”
“The temperature in the restaurant
can go up ten or more degrees in
an hour on a hot day when they get
a packed house at dinner time and
cooking is going full blast.
The restaurant wants to avoid
negative customer experiences
and this is when we get calls
for help.”
Source: External Interviews, Blue Canyon
Analysis
Messages from HVAC Contractors
© 2014 Blue Canyon Partners, Inc.
Challenges
EfficientService Drives
Profits
Call Backs Drain
Profits
New Entrants Customer
Experience
Recruiting, Training &
Succession
“Finding, recruiting, and training skilled guys
is the name of the game, keeping these folks
involves a good, balanced incentives program.
The business is all about people and who will
eventually take my place.
“If I can get each of my trucks to complete just one
more call per day that can be a huge profit to my
bottom line. Scheduling the service calls so there
is less time on the road & more sites to cover
matters.”
“Call backs are a killer.
When we have to go back
to the site because the
installation was faulty or
the replacement part
was incorrect, this is a
true waste.”
“For independent C-stores, buying
groups are starting to emerge a
regional basis, serving local stores.
They are getting into many products,
from refrigeration to prepared foods.
They provide training to these store
owners principally to improve
profitability and efficiency
for store owners.”
“The temperature in the restaurant
can go up ten or more degrees in
an hour on a hot day when they get
a packed house at dinner time and
cooking is going full blast.
The restaurant wants to avoid
negative customer experiences
and this is when we get calls
for help.”
Source: External Interviews, Blue Canyon
Analysis
Messages from HVAC Contractors
© 2014 Blue Canyon Partners, Inc.
Theme Red Flag Green Light Recommendation
Segmentation
Is your company unintentionally
focused on end customers who
today operate in stagnant
or declining markets?
Can your sales growth be attributed
to specific customer groups that
help you win your fair share?
Segment based on meaningful
factors to help you identify today’s
growth segments.
Converging Roles
Are suppliers/competitors moving
into unconventional roles that
diminish the value you bring
to customers?
Do you utilize technology and
innovative approaches to help you
and your business partners solve
your customers’ challenges?
Stay abreast of changes and keep
your customers’ problems
in your sights.
New Entrants
Are powerful new players
entering your space, offering
lower prices and gaining
customers’ attention?
Are new players helping you add customer value at a lower cost
to serve?
Promote your services, nurture your customer relationships, be attentive.
Customer Needs
Are you facing price pressures
because your products and
services are believed to
be the same?
Are products faster and easier to
install? Do they provide better
availability from companies that are
easy-to-do-business-with?
Partner with your suppliers to
conduct research and develop
customer insights.
Growth Challenge Checklist
© 2014 Blue Canyon Partners, Inc.
Atlee Valentine Pope, President and CEO
Atlee Valentine Pope
Current Responsibilities
Atlee Valentine Pope is president and chief executive officer of Blue Canyon Partners, Inc., and the co-
author of the growth strategy book CoDestiny: Overcome Your Growth Challenges By Helping Your
Customers Overcome Theirs. In addition to overseeing Blue Canyon’s operations, Atlee works directly
with a number of clients to produce market-driven answers and actions plans that foster profitable
growth. More recently, Atlee’s work has included helping clients in areas such as channel management,
strategy implementation, pricing strategies and adjacencies.
PRESIDENT AND CEO
T (847) 967-0288
E
Experience
Atlee’s work has covered numerous business-to-business issues across myriad industries.
A representative sample of Atlee’s deep experience includes:
Identifying global growth opportunities for multiple U.S. manufacturers
Advising clients on how to solve pressing growth problems in their toughest, most competitive markets
Bringing new business models to clients uncertain about how to use data analytics to create value for
their customers
Helping clients understand how to motivate their customers to focus on value rather than price
Before building Blue Canyon, Atlee served in leadership roles in several start-up ventures and was a vice
president in global corporate finance with First Chicago.
Education and Affiliations
Atlee earned a BA from the University of the South in Sewanee, Tennessee, and an MBA from
Northwestern University’s Kellogg Graduate School of Management.
Thought Leadership
In addition to CoDestiny, Atlee has co-authored more than 40 papers and has been a guest speaker and
lecturer at numerous business events and university courses on topics ranging from market-driven
strategy, best-in-class strategy implementation practices, business-to-business growth, and many more.
© 2014 Blue Canyon Partners, Inc.
Overcoming Your Growth Challenge