Meat Industry Summit San Antonio, TX April 18, 2018
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1 Meat Industry Summit San Antonio, TX April 18, 2018
2 Considerations For Improving Customer Engagement and Customer Results The Johnsonville Story Customer Engagement & Company Culture Diagnose Before Prescribe Question Asking: A Forgotten Skill Considerations & Takeaways
3 HISTORY & HERITAGE
4 1945 Our story begins Ralph F. & Alice Stayer opened a butcher shop and named it after their tiny hometown of Johnsonville, Wisconsin. The sausage came from an old family recipe, originating in 19 th century Austria and passed down through the generations. Illustration of the original butcher shop Johnsonville Founder Ralph F. Stayer
5 Here we grow! 1950s Johnsonville sausage was in high demand and the Stayers expanded sales into nearby communities 1960s Johnsonville expands to three meat stores 1970s Trucks took to the road, delivering Johnsonville sausage to stores throughout Wisconsin
6 Charlie murphy s cooking Johnsonville brats! 1980s TV advertising begins with the debut of Charlie Murphy. In the mid-1980s, sales increased 20-fold from a decade earlier, and distribution of Johnsonville products expands to 47 states.
7 1990s Global expansion & goodwill Johnsonville goes global with product introductions in Japan, Canada, Russia and Hong Kong. To celebrate our 50 th anniversary, Johnsonville debuts the Big Taste Grill, which tours the country raising money for local non-profit groups.
8 Johnsonville today! We remain a private, family-owned company. Our members take pride and ownership in everything we do. Thanks to them, Johnsonville is the No. 1 brand of sausage in the U.S., available in all 50 states, 40+ countries and enjoyed in dozens of stadiums and arenas!
9 Unique culture We call our culture The Johnsonville Way. These different puzzle pieces make up The Johnsonville Way. Overall, it guides how we work together and make decisions.
10 The Johnsonville Way Our Mission Together, we will create an environment that requires each of us to fully develop our Godgiven talents and help others do the same. We ll achieve this by living The Johnsonville Way. Our Vision To become the best company in the world.
11 The Johnsonville Way Statement We at Johnsonville have a moral responsibility to become the Best Company in the World. We will accomplish this as each one of us becomes better than anyone else at defining, and then serving, the best interests of all those who have a stake in our success. We will succeed by setting near-term objectives and long-term goals that will require personal growth and superlative performance by each of us. We will change any objectives or goals that no longer require personal growth and superlative performance to ones that do. As an individual, I understand The Johnsonville Way is about my performance and my accountability to the team. My commitment to stretch, grow and excel is an unending one. This is The Johnsonville Way and I am committed to it.
12 Guiding principles & supporting values
13 Beyond Brats: Company Culture Recognized Johnsonville s culture is recognized by business leaders and publications around the country Harvard Business Review How I Learned to Let My Workers Lead Fortune Magazine Who Needs a Boss Inc. Magazine Managing the Journey Wall Street Journal HR Magazine 50 Best Companies Flight of the Buffalo: Soaring to Excellence, Learning to Let Employees Lead
14 Steady Sales Growth Percentage of 2007 Net Sales
15 HICS Core Customer Approach By being the best at driving our customers sales and profits (Highest Impact on Customers Success: HICS) through noticeably better products and services.
16 HICS Core Customer Approach Our job is to find out what opportunities to present or what problems to solve that will make our Customers more successful The process to finding out what actions you should take help ensure you re working on the right stuff
17 Diagnose Before Prescribe (Listen to the Customer tell before you start to sell ). Hardest approach for sales members to understand What s important to some customers is indifference to others Sales incentive programs can be misaligned Customer communication and messaging is critical
18 Japan: A Hard Lesson & Silver Lining Homework was done and confidence high Early success in select test markets New markets and new problems We sold before we understood what was required. We simply underestimated the product quality standards which Japanese customers require.
19 Japan: A Hard Lesson & Silver Lining Every Customer and Market is Different Every Customer gets to define their success Never underestimate the ability of a Customer to make you better. You should view demanding Customers as a means to improve your company capabilities.
20 Diagnose before Prescribe Prepare Overview of the Customer What are the current hot topics of the customer? How are industry trends affecting the customer? Prepare Review of Current State of the Business Include Insights Prepare a SWOT Analysis of Our Business as it Relates to the Customer Create Hypothesis of Customer s Strategic Imperatives Determine potential initiatives that will create HICS Prepare Initial Set of Strategic Questions
21 Question Asking: A Forgotten Skill What are your company s strategic imperatives? What are the 2 or 3 most important things your company has to accomplish in the next 2-3 years? If you could wave a magic wand, what one thing would you change right now? What changes have occurred to your strategic imperatives over the last year? Why? Will there be any changes to your strategic imperatives over the next year or two? Which will be the hardest to achieve? The easiest? Why?
22 Strategic Question Examples (cont d) What Initiatives are in place to achieve the imperatives? (This will help you understand how you can contribute, either by helping with one of the initiatives or by creating an initiative that will help them) What initiatives are you undertaking to achieve your strategy? Are they adequate? What is your level of confidence that they will get you there? How will you know that you are succeeding? Do you have the necessary resources to execute these initiatives? What is missing? How can we help?
23 Which of the Customer s Strategic Initiatives are the most Important to them? Which of your company s initiatives is the most important to you? To your department? Why? Make sure you align and compare Customer messaging with internal members. Did everyone hear the same message? Listen, calibrate and confirm. You want to solve the right problems and uncover new opportunities
24 Topics Well Beyond Selling Sausage Food Safety challenge in my Deli Department Sanitary design issues with my equipment Counterfeit issue with a product line Supply Issue with an ingredient Consumer demographics and insights Membership engagement and company culture
25 Strategic Initiatives Customer s Strategic Initiatives Johnsonville s Strategic Initiatives 1) 2) 3) 4) 5) Initiatives that will Create HICS (Main Points for Strategic Conversation) 1) 2) 3) 4) 5)
26 Customer s Strategy What does the customer want to achieve? JVL Strategy What do we want to achieve? Corporate Strategy Design/Develop Experience 6 point plan 1. Grow Food and Beverage 2. Expand Assortment 3. Build Private Label Brands a. High Value Premium Product 4. Connect and Transact Digitally 5. Improve Store Base 6. Simplify Store Execution. 7. First to market on new products and to partner with suppliers on proprietary product. Fresh Food Strategy Grow business with AM and Snacking day-part. Customer s Major Challenge(s) List any business problems that we can try to help solve Store Execution/Franchise model Employee s Leaving Company Social Media Execution Launching new products for Hot Food (Hot Food and Roller Grill) that drives sustainable consumer purchases. Food taste and flavor -22.3% and Food Quality -20.2% vs. Competition Current Products & Retail Price Upcoming LTOs & Opportunities Customer s Target Audience Promotional Support Requested & Budget Social Media, PR, Giveaways, Big Taste Grill, Shopper Marketing (Mobile App), Custom POP, etc.
27 Current Volume Potential Volume Number of Stores Active Social Media Platforms Mobile App/Rewards (if applicable) Charity Name (if applicable) 8500 Facebook, Twitter and Instagram St. Jude s Actions/Progress Owner(s) Need by Date
28 Maturity Curve of Relationships Strategic: Value Centric Trusted Preferred Transactional: Cost
29 Relationship Maturity Transactional Relationships (15%) Generally newer relationship (1-2 years) Limited history and performance Limited opportunity to impact results Limited face time and company exposure Transactional: Cost
30 Relationship Maturity Preferred Relationship (30%) Some history (2-3 years) Proven performance and service Deeper relationships-multiple functions Preferred
31 Relationship Maturity Trusted Relationship (40%) Longevity established (3-5 years) Exceptional performance, service and value Trusted Innovation discussions underway Multi-level relationships: Handled a challenge or issue together
32 Strategic Relationship (15%) Relationship Maturity Longevity well established Strategic planning and innovation successes Extension of company and teams Strategic: Value Centric
33 Maturity Curve of Relationships How to Move Up the Ladder??
34 Special Considerations Scorecards: Many Customers Have Them Don t Wait to be Told How You Are Doing Are We Helping You Reach Your Goals? Engage Customers on New Products and Services Early Learning Opportunity to Modify and Make Better
35 Closing Thoughts In the best of all worlds, what does great performance look like for your Customers? Customers don t have the same strategies so you shouldn t use the same solutions Consider what you have learned and how you can improve your company capabilities and performance
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