Scott Forristall

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Fact Based Selling
Scott Forristall
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Two Types of Selling

• Emotional Selling appealing to the emotions of
  the buyer.
• Fact Based Selling providing information to
  support the need
  for product.

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Fact Based Selling

• Key Areas
• What are the objectives
• Knowing your customers
• Understanding your markets
• Your product/company strengths
• Your product/company weaknesses
• Competitors strengths/weaknesses
• Identifying the opportunities
• GAP analysis Actual vs. Opportunity
• Develop the strategies to maximize the
  opportunities

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Fact Based Selling

• Decide the facts that need to be presented to
  help the buyer make the right decision.
• Gather the data needed to support the facts.

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Resources

• Industry SGMA, Leisure Trends, Sports Trend
• Manufacturing Lines
• Watch process, learn what is unique, different.
  
• Manufacturing technology different?
• Research development department
• What are they working on?
• Test your product against competitions.
• Marketing Department
• Provide market insight, end user profiles,
  promotional plans, ideas.
• Information from warranty cards.
• Telephone calls to customers - both consumers
  and dealers.

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Account A 2002 Objectives

• Johnson Outdoors Watersports

• Increase sales by 53
• Increase profit by 59
• Make Account A a Destination Location for
  Paddle Sports.

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Industry Data
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Market Share - TotalRolling 12-month
June 1999 - May 2000
June 2000 May 2001
June 2001 May 2002
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Kayak Break Down

• Customer A has opportunity to better align
  product mix with existing industry sales
  trends.
• White Water and Sea Touring are thought to be
  outside Customer A target market for
  Watercraft.

Customer A Recommended Assortment
Industry Sales
Kayak Type 20 Entry Level 20 Recreational
Touring 20 Sit on Top 15 Sea Touring 15 White
Water 10 Lite Touring - fastest growing segment
Kayak Type 25 Entry Level 35 Recreational
Touring 25 Lite Touring 20 Sit on Top
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CATEGORY SEASONALITY

• Season Starts in March/April. Important to Set
  Retail Early to Let Consumers Know Customer A is
  a Destination Location for Paddlesports.
• Kayaks Sell well in December. Potential for
  Holiday Gift Promotion

Canoes
Kayaks
Total Canoe Consumer Sales Dollar Volume by Month
Annual Dollar Sales by Month
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Bass Boat season extends into 3rd and 4th
Quarter in SE US
Annual Dollar Sales by Month
Source Sports Trend POS data CY 2000
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Consumer Data
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Consumer demographics vary slightly across
categories

• Bass Boats, Canoes
• Middle age, middle income males with families,
  who have at least some post high school
  education
• Pedal Boats
• Late middle age males with families, and some
  empty nesters own waterfront property
• Kayaks
• Early middle age males with families, college
  educated
• Electric Deck Boats
• Older, empty nesters, middle income, waterfront
  owners

Source Product Registration Cards, Sail
Magazine Survey for Escape data
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Boat purchasing is a long considered process,
often multiple years for many households

• Phase 1 - thinking about buying category
• Seeing products on the water, talking to owners
  is very common, Casual shopping, reading
  magazines, internet
• Purchases are easily postponed
• Phase 2 Active shopping / purchase product
• Most are first time buyers, so information to
  sort alternatives is key
• May be triggered by an even - current boat
  broken, a dealer promotion, the discovery of a
  great value e.g. at a club
• Brand names do not play a major role for most

Source LL Qualitative Research - June, 2001
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Product Comparison
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Leisure Life Pedal Boats Today Lead in Key
Factors

• Comfort
• Efficiency
• Durability
• Consumer Appeal

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Leisure Life Pedal Boats Leaders in Seating
Comfort
Seat / pedals are aligned on the Leisure Life Boat
Pelican Riptide offset pedaling position
Leisure Life ASL natural pedaling position
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Leisure Life Pedal Boats Leaders in Pedal
Efficiency
Time to complete 150 course Leisure Life ASL -
47 seconds Pelican Riptide - 75
seconds Explanation Center of Gravity
Pelican is front weighted Pedal Design 5th
paddle blade pushes against water when three
people are in the front
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Leisure Life Canoe Leads in Stability

• Coleman canoe flipped with only 103 pounds of
  weight at the gunwale
• Rogue River canoe did not flip with more than 160
  lbs. at the gunwale
• Rogue River is 42 wide, no canoe is wider

Rogue River brand 15.7 By Leisure Life, 160
at gunwale
Coleman brand 16.6 by Pelican Flipped over with
103 at gunwale
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Leisure Life Canoe Leads in Weight Capacity
Rogue River has 20 greater weight
capacity Rogue River Coleman Weight
Capacity 1,520 lbs. 1,212 lbs.
Coleman brand 16.6 by Pelican
Rogue River brand 15.7 By Leisure Life
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Leisure Life Pedal Boats Leads in Durability
Leisure Life Rogue River Canoe hull is nearly
50 thicker Rogue Rive Coleman
Hull thickness at keel .240 .160
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Account D GAP Sales Analysis

• Account D Is Significantly Under Developed Versus
  Top Competition
• Account D Not Experiencing Growth with Old Town
  in Line withmost Top Competitors
• Opportunity Gap of 600m if Account D were to
  Equal Competitor A in Average Sales Per Outlet.

Old Town Sales/Outlet Through June 01
00 Sales 01 Sales Outlet Outlet
or -
Account A 56,376 93,000 66 Account
B 46,349 64,000 39 Account C 10,291 53,000
430 Account D 28,177 42,000 48.9
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Pull Through Programs

• Owning Retail
• Make sure the right product is in the right
  place at the right time at the right price.
• Merchandising
• In store signage
• Packaging/POP material
• Planograming - maximizing sales per square
  foot
• Display programs

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Pull Through Programs

• Owning Retail
• Ad/Promotional Plans
• Customer specific
• National
• Creating customer events
• Training
• In store clinics
• Manuals

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Category Management

• Managing product categories for your customers
• Key Areas
• What are the objectives
• Grow business ___
• Increase margin ___
• Retail Sales
• Understand how your product and your
  competitors products are selling.
• Create assortments that maximize the objectives

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Category Management

• Develop strategies to maximize sales and profits
• Ad/promotions
• Merchandising
• Inventory Goals
• Turns
• GM ROI
• Communicate
• Progress - make changes when needed
• Changing objectives

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Customer A Recommended Kayaks

• 2002 General Recreation Touring

Vendor Model Colors Class Cost Retail Margin Minim
um Target Ad. Pricing
Old Town Otter Yellow Green Entry 178.48 299.9
9 40.3 ----- ----- Perception Swifty ----- Entry
----- 349.99 ----- ----- ----- Old Town Loon
100 Yellow Green Rec. Touring 269.56 449.99 40
----- ----- Old Town Loon 111 Green Red Rec.
Touring 299.00 499.99 40 449.00 ----- Old
Town Loon 138 Green Red Rec. Touring 335.80 55
9.99 40 499.00 ----- Old Town Twin Otter Green
Red Rec. Touring 394.68 649.99 39.2 ----- ---
-- Old Town Sebago Yellow Red Touring 359.72 5
99.00 40 599.00 Old Town Castaway Yellow
Red Touring 325.00 499.99 35 ----- 499.00 Old
Town Adventure XL Green Red Touring 427.80 719
.00 39 719.00 -----

Old Town Castine Yellow Red Touring 386.40 649
.99 40.5 649.00 ----- Old Town Nantucket Yellow
Red Touring 460.00 775.00 40.5 775.00 -----
Perception Acadia ----- Touring ----- 569.00 ----
- ----- ----- Perception Carolina ----- Touring --
--- 799.00 ----- ----- -----
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Thinking Outside of the Box

• Looking for Opportunities
• Categories
• Promotions
• Merchandising
• Utilizing Resources
• Marketing
• RD
• Etc.

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Thinking Outside of the Box

• Grass Roots Marketing
• Competitors - What is working
• Other industries - What is working
• Creativity
• Merchandising
• Market Research
• Finding new ways to get the job done