2018 Distributor Support Fund Policy

Transcription

1 2018 Distributor Support Fund Policy Part Number A-1217 Supercedes A-1216 Effective Dates January 1, 2018 December 31, 2018 DISTRIBUTOR SUPPORT FUND OVERVIEW Advertising is one of the best methods to raise awareness, promote positioning of the YORK brand and support local dealer businesses. Co-marketing activity allows for the delivery of our brand message on a local level and helps to drive customer exposure to our brand. To ensure an effective presence in the marketplace, all YORK distributors will have two standard support funds and one Brand Marketing Fund for the 2018 program year. What s new in 2018? Inclusion of new products in fund accrual specifically for 19 SEER premium product Contact information and additional spend options under focus programs Allowance of catalogs, newsletters, literature or price sheets for reimbursement 60 day claiming deadline for submissions Auditing policy updates Distributor Support Fund (DSF) These funds are focused on distributor brand building activity. These funds can be used to drive local dealer advertising activity. Eligible activity is eligible for a 50% standard reimbursement. Source1 Parts Fund (S1) These funds are intended for the promotion of Source1 parts, accessories and products. Eligible activity is eligible for a 50% standard reimbursement. Brand Marketing Fund (BMF) These funds have been directed into the local markets to allow for dealer recruitment, consumer brand building and responding to competitive activity. No distributor financial match is required. Source1 funds may not be spent on DSF or BMF activity unless preapproved has been documented and secured from the YORK brand management team. STANDARD FUND DETERMINATION AND ACCRUALS Initial deposits will be made available on March 1 st. For DSF and S1, the initial co-op deposit made in the FAC will be based on half of the previous year s co-op accruals. Additional disbursements will be made in July based on actual sales from January to June, and then each month for the remainder of the year based on prior month sales. The amount you accrue per unit is determined by your distributor tier. The YORK brand of Johnson Controls International, PLC Johnson Controls International, PLC Page 1 of 8

2 2018 Distributor Support Fund Policy Page 2 of 8 STANDARD FUND DETERMINATION AND ACCRUALS (Cont.) Tier A Requirements Minimum annual purchase volume of $10 million from Unitary Products or a unitary market share of 7.5% or greater Brand exclusivity to YORK, no competing brands may be sold by the locations receiving funds Staff and support to administer programs Tier B Requirements Annual purchase volume less than $10 million from Unitary Products or a unitary market share less than 7.5% Brand exclusivity to YORK, no competing brands may be sold by the locations receiving funds Staff and support to administer programs Equipment Earnings per Unit Product Families AC Units Tier Tier Product Families A B A B Heat Pumps LX 13 SEER $13 $9 LX 14/15 SEER $25 $20 LX 14/15 SEER $15 $11 LX 16 SEER $25 $20 LX 17 SEER Mod $17 $13 Affinity 15 SEER $60 $50 Affinity 16 SEER $50 $40 Affinity 18 SEER $80 $60 Affinity 18/19 SEER $75 $60 Affinity 20 SEER $85 $65 Affinity 20 SEER $80 $70 Packaged Units Furnaces LX 14 SEER $20 $16 Latitude 80% $6 $5 LX 16 SEER $40 $35 Latitude 90% $8 $6 Coils LX 80% $8 $6 Affinity Coils $9 $7 LX 90% $12 $9 Affinity & LX Air Handlers $9 $7 Affinity 80% $30 $24 Coils $5 $4 Affinity 95% $55 $43 Source1 Parts All Source1 Purchases 3% 3%

3 2018 Distributor Support Fund Policy Page 3 of 8 STANDARD FUND SPEND GUIDELINES Use of the DSF and S1 fund require adherence to the guidelines outlined in this document. Additionally, distributors and dealers using these funds are expected to: Prominently display the YORK brand name and brand experience in the ad including the use of the correct brand logo Adhere to brand guidelines outlined in the Marketing Action Center. Do not misrepresent any price of any product. Do not misrepresent the mechanical features or benefits of any products. Do not misrepresent any warranty existing on any unit. Do not use language in advertising that may tend to offend, mislead, confuse or deceive the customer. The YORK Brand Management team and Unitary Products Marketing team retains the right to refuse any material if they do not represent our brand correctly or pose a notable risk to our collective organizations. FOCUS PROGRAMS AND PARTNERSHIPS Custom or locally produced creative materials are eligible for the standard funding as noted above. Funding for the following focus programs and preferred vendors are eligible for the following: Partnerships Activities supporting our Building Homes for Heroes sponsorship qualify for claims and may be paid out at up to 75%. Local sponsorship activity may be explored, but involvement and approval by the York Brand Management team must be attained. Focus Programs Local Pay Per Click (PPC) and online display campaigns managed by Web for Brand Networks (WBN) qualify for claims and will be paid out at 75%. Our dedicated team for PPC at YBN can be contacted via at wbnpremiumsupport@web.com. Dealer and distributor advertising activity on Angie s List, through our dedicated team at Angie s List quality for claims and will be paid out at 75%. Our dedicated team at Angie s List can be contacted via at yorkhvac@angieslist.com. Lead fees and regional advertising expenses from our dedicated support team at HomeAdvisor will be paid out at 75%. Our dedicated team at Home Advisor can be contacted via at yorkpros@homeadvisor.com. Preferred Vendors Creative advertising, identity, and promotional material created by York or York approved vendors (featured in the 2018 York Program Playbook and in the Marketing Action Center (MAC) are preferred. Expenses claimed from these preferred vendors will be paid out at up to 75%.

4 2018 Distributor Support Fund Policy Page 4 of 8 STANDARD APPROVED ADVERTISING AND PROMOTIONS Creative advertising, identity, and promotional materials created by YORK or YORK approved vendors (featured in the Dealer Program Playbook) are preferred. It is encouraged to consult with your Brand Manager prior to producing custom or locally produced creative materials to ensure approval. The following advertising, promotions and materials qualify for support fund reimbursement from the DSF and S1: Digital Advertising Search Engine Optimization or Search Engine Marketing advertising through Web for Brand Networks or other YORK approved vendors are eligible for reimbursement. Lead fees from HomeAdvisor and Advertising on Angie s List qualify under this category. Expenses from other online advertising vendors require preapproval from the Brand Manager. Meetings - Approved sales and training meetings, sales and training meeting kits, group meeting rooms and meals are chargeable. Dealer sales meetings must be sponsored by a distributor and have a YORK representative in attendance for reimbursement. Distributor Incentive Trips York brand must be promoted as trip sponsor and York brand representative must attend. Distributor incentive trips are reimbursable up to 50% of a distributor s previous year s DSF annual accrual. Tickets for Sports Teams/Sporting Events - Limited to 20% of the annual total DSF support fund The 20% figure is calculated based on the year end DSF amount. Mobile Tablets Tablet must have a 7 screen minimum and a minimum of 4G RAM. Newspaper Advertising - Space costs only in accredited daily, weekly and Sunday ABC (Audit Bureau of Circulations) papers. In general, advertisements, where the brand name occupies only a fraction of the space, acceptable support fund charges will be computed on that fraction of the cost. Consumer or Trade Print Advertisement - Space costs only for ads and creative development. Radio and Television - Spot announcement costs for 10, 15, 20, 30, and 60 second advertisements. Billboard and Transit Advertising - Space costs. Exhibits, Displays, and Fairs - Cost of exhibit space. When more than YORK products are displayed, only that portion of the display will be eligible for support funds. Local Consumer or Trade Direct Mail - Cost of postcards, mailing and mailing lists. Specialty Apparel and Ad Specialties - Items from the approved preferred vendors or locally produced apparel. Identification Signs YORK approved vendor-produced identification signs or locally produced signs. Vehicle Identification - Decals and other YORK approved vendor produced vehicle identification materials or locally produced decals. Sales Promotion Materials YORK approved vendor produced material, literature, computer software, videos and sales presentation material.

5 2018 Distributor Support Fund Policy Page 5 of 8 STANDARD APPROVED ADVERTISING AND PROMOTIONS (Cont.) The following advertising, promotions and materials qualify for support fund reimbursement from the DSF and S1: (Cont.) Uniforms and Apparel Authorized uniforms, and apparel sold through UP approved vendors. Software Software from Wrightsoft or other YORK designated software provider outlined on UPGNet. Other If Support funds are to be requested for any other advertising or sales promotion, advance written approval ( is sufficient) must be obtained from a YORK Brand Manager. The following media and materials don t qualify for support fund reimbursement from the DSF and S1: Advertising that displays competitive products or brands in ads or on promotional materials Liberties/Liberties Plus/CCE registration and program fees. Memberships in Trade Organizations. Political publications. Customer gifts, meals, etc. Computer software not supported by UP. Personal hotel rooms for meetings. Transportation costs to or from meetings. Travel expenses. Truck painting and/or repairs. Shipping, electrical, and labor charges for displays and exhibits, including telephone charges from exhibit. Federal, state and local sales and use taxes. Office supplies such as price lists, speed memos, purchase orders, service orders, labels and stationery (letterheads, envelopes, scratch pads, calling cards), etc. Cash debit or credit cards without documented Brand Manager preapproval and promotional documentation as outlined in the preapproval letter. The YORK Brand Management team retains the right to be the final authority in determining if an ad or other expense is chargeable to the support fund. Other expenses may be determined as ineligible if they pose a potential risk to the organization or misrepresent our brand.

6 2018 Distributor Support Fund Policy Page 6 of 8 STANDARD APPROVED ADVERTISING AND PROMOTIONS (Cont.) If the Support Fund account does not have sufficient funds to cover the amount of the claim, Channel Fusion will provide partial credit on the claim. The remaining claim amount will be placed in a pending status until sufficient funds are available at which time the remainder of the claim will be paid. They will also issue partial credit on any claims that do not meet the approval criteria and are authorized to reduce the amount of the claim. This will eliminate the need to re-submit the claim. In the event of a question or dispute, the distributor should contact their Brand Manager and provide details of the claim, the reason they feel the claim is valid and eligible for funding. The last date for claiming prior year s funds is January 31, BMF OVERVIEW Advertising is one of the best methods to raise awareness and promote positioning of the YORK brand and support local dealer businesses. Co-marketing activity delivers our brand message on a local level and helps to drive customer exposure to our brand. As in previous years, a charge will be assessed on YORK equipment purchased to increase our collective brand exposure. All residential products (single and three phase) are charged a 1% brand accrual fee. Guardian brand, Source 1 parts and accessories are not charged this fee. In 2017, all fees collected on residential products to the 1% brand accrual fund will be reallocated to the local marketplace. Each independent distributor and factory direct branch will receive what they have paid into the fund. Locations that have paid in less than $5 thousand into the fund or are part of a National Accounts partnership will not receive an allocation. Co-marketing and the BMF help to extend the national brand to a local level and rive dealer and brand exposure. By bringing the majority of the funds back to the locations, we will now be able to align our brand with the assets most effective for your customers and you. Your BMF allocation is determined by the amount charged and that you paid on residential products from October 2015 to September Eligible distributors will receive a BMF Campaign Intent form from the YORK brand management team with specific details about spend and accrual amount. BRAND GUIDELINES To ensure the effective promotion of our collective brands, all independent distributors, factory direct branches and independent dealers are expected to follow the YORK brand guidelines. You may find a complete outline of our guidelines on the Marketing Action Center. Use of the YORK logo and trademark requires a strict adherence to these rules by authorized parties whether or not there is reimbursement or spend by YORK. Some items that this applies to, but is not limited to, include social media, websites, apparel, brochures, presentations, stationary, exhibits and advertising (ie Radio, Digital, Billboard, Television).

7 2018 Distributor Support Fund Policy Page 7 of 8 ADMINISTRATION AND CLAIMS Channel Fusion administers the funds outlined in this document on behalf of the YORK brand. As such, they process all claims submitted by the distributor according to the guidelines outlined in this document. Distributor representatives responsible for the administration of the funds outlined in this document should have access to the Funds Action Center (FAC) on UPGNet. The co-op link within the FAC provides comprehensive details that include the claiming process, status and updates. Distributors may also find the credit memo numbers for their financial reconciliation. Those responsible for administering this program at the distributorship must have access to UPGNet. Permission and access to the FAC is managed by the distributor s UPGNet system administrator or cg-upgsystemadministrator@jci.com. All claims must be submitted within 60 days of being invoiced. Submitting a Claim for Support Funds Distributors can either submit claims via an online claim form, fax or by uploading through the FAC a copy of a claim form along with all invoices for the promotion, advertisement, or service rendered. Claim forms are located online at FAC. Use of the online claim form in the Funds Action Center is preferred. Mailing address Street address (Overnight shipment) YORK Co-op Advertising YORK Co-op Advertising c/o Channel Fusion c/o Channel Fusion PO Box N Center Point Road, Suite B Cedar Rapids, IA Cedar Rapids, IA Fax number Customer extranet UPGNet -> Marketing Center -> Funds Action Center Do not send your claims to any other location or individual. These claims will be returned to you and may delay payment. YORK BRAND MANAGEMENT TEAM The YORK brand management team is responsible for the effective, efficient and consistent implementation of these funds. Please leverage these resources to maximize your resources. You are encouraged work with us to help negotiate advertising buys, develop an annual or quarterly strategy and share best practices. As a team, we both support all of YORK independent distribution and factory direct branches for Unitary Products. Micah Ogé DJ Bowens Brand Manager Associate Brand Manager Milwaukee, WI Norman, OK micah.oge@jci.com donahue.l.bowens@jci.com

8 2018 Distributor Support Fund Policy Page 8 of 8 DISTRIBUTOR SUPPORT FUND EXCEPTIONS All marketing funds are provided at the discretion of the YORK Brand Management and Unitary Products Marketing team. Exceptions to the policies outlined in this document must be pre-approved and in-writing ( will suffice) from a Brand Manager. FEDERAL TRADE COMMISSION (FTC) GUIDELINES FOR PROMOTIONAL PROGRAMS The Robinson-Patman Act requires that distributors, who sell their product to buyers for resale, must treat these buyers on a proportionately equal basis with respect to any promotional or advertising allowances that are given such buyers in connection with the sale of a manufacturer s goods. The FTC requirements in this respect are not new. The law also makes the manufacturer responsible for its distributors promotional plans and advertising allowances. This is true whether the distributor pays for the entire program itself, or uses DSF fund money to pay for the program. In essence, the Supreme Court has stated that a distributor s customers (dealers) are the manufacturer s customers and, in connection with promotional and advertising allowances to the dealers, the distributor is acting as an agent for the manufacturer. Simply stated what the law requires is that those who grant promotional and advertising allowances treat their customers fairly and without discrimination by making allowance available to the customers on a proportionately equal basis. What this means is that buyer A, who buys five times as much as buyer B, gets five times the amount of services or allowances as buyer B. The manufacturer has often accomplished this by the use of a DSF plan. The requirements only apply to customers who purchase products for resale. There is no such legal obligation toward customers who purchase for their own use. The Robinson-Patman Act is intended to foster competition and, where there is no competition in the resale of products, Robinson-Patman does not apply. The law also permits different classes of customers to be treated differently, so long as all of those within a class are treated equally. If a distributor utilizes any sort of promotional plan or advertising allowance, one of the basic requirements of the law is that the plan be made available to all customers. Make available in this context, has been construed to mean the plan be published to the dealer. It is no defense to state that a customer would have received an allowance had he asked for it. AUDITING AND COMPLIANCE YORK reserves the right to audit all spend affecting the funds outlined in this document. Audits may occur at random intervals. Distributors selected for auditing will receive 30 days of notice. Distributors must provide easy access to all information related to support fund expenditures. If already reimbursed expenditures are tagged as ineligible and identified during an audit, the funds reimbursed for those claims must be paid back to YORK. Failure to comply with an audit or pay back reimbursements from ineligible claims may result in the denial of any pending or future support fund advertising claims.