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April 2011 Pre-sales Team. Standard Marketing Program for SUR40 (Surface 2). Agenda. 1. Introduction 2. Nature of Business 3. Recommended Subsidiary MKTG Program 4. Surface Partner Management 5. Surface Partner Recruitment 6. Product Exposure 7. Event and Sales Training

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april 2011 pre sales team
April 2011

Pre-sales Team

Standard Marketing Program

for SUR40 (Surface 2)

slide2

Agenda

1. Introduction

2. Nature of Business

3. Recommended Subsidiary MKTG Program

4. Surface Partner Management

5. Surface Partner Recruitment

6. Product Exposure

7. Event and Sales Training

8. Marketing Collaterals

9. PR strategy

goal background
Goal & Background
  • Goal:
    • Quick Sales Ramp-up
    • Establish Subsidiary sales Readiness
    • Gain sustainable/run-rate sales volume
  • Marketing Program Target:
    • Reseller (SI & SW developer)
    • End customer
  • Background:
  • Reseller specialized in vertical develops & installs SW for end user and deploys it. Thus Reseller and End customer are final decision makers.
  • ※ This standard marketing programis recommended by headquarters. However, subsidiary can adjust and perform its own way by fitting this into its particular business environment
things you must know
Things You must Know

1

This product can benefit end customer only when application s/w which meets the customer’s needs is installed and deployed

Thus just selling the h/w itself in Disty or reseller can’t occur sell-out

Therefore purchase order is not valid for actual production if needs/quantity/requested delivery date are not identified from the end customer

2

Generally the appropriate/effective channel for this product will be the s/w developer in Surface partner eco-system who buys h/w from SEC Disty and sells it to end customer with customized s/w application

Microsoft salesmen or developer evangelist can assist/contribute to establish effective channel and reseller eco-system

3

Display screen has to be refreshed (w/ moving picture or flashing) once within an hour to prevent image sticking problem. And this fact has to be noticed to s/w developer so that they can develop application appropriately

4

Standard target lead time from receiving PO to production

- 8 weeks

slide7

Margin Structure Comparison Info

  • At Surface v.1, s/w developer had 0% margin in selling H/W and only effective margin from s/w
  • However Surface v.2 provide s/w developer and reseller with 10% margin from h/w
  • In this case s/w developer and reseller who worked together can share 10% margin
  • However contribution level of reseller who doesn’t develop s/w application may be small

Surface v.2 (SUR40)

Surface v.1

Freight

Financing

Warehousing

Freight

Financing

Warehousing

Distributor

Distributor

~5% margin

~5% margin

Software Developer

Software Developer / Reseller

Hardware

Hardware

0~% margin

~10% margin

Software

Software

Revenue

Revenue

End Customers

End Customers

slide8

Standard Margin Structure of SUR40

- Same margin structure applies to other regions, too.

- Reseller makes margins mainly on S/W, AND can make ~10% Margin for H/W

- US Case -

Estimated Street Price varies according to Tax & Duty

MSRP w/o legs[$7,900 + X margin]

Estimated Street Price w/o legs$7,900

Channel Margin

$1,343

Dist’y + Reseller Margin

+

~ 5% Dist’y’s margin

17%of MSRP

(No special added value)

ExSub $6,557

+

~10% S/W developer’s margin

Sales Deduction (mgt plan)

~ 2% Room for subsidiary

Net Dealer Price

Subsidiary

Overhead (mgt plan)

+

SD & OH : Mgt plan for LFD

Room for Mktg 2%

+

2.0% room for marketing

Profit 2%

2.0% profit

Ex-Hub

Note: ~2% Room for Subsidiary from Margin Structure

  • If customer exposes Samsung Brand on the product, ~2% incentive to be offered
  • - If not, ~2% incentive is not offered
2 month bounty bonus program
2-Month-Bounty Bonus program

Basically all sample units are supposed to be purchased at normal price

  • Demo Unit Discount & Bounty Bonus
  • → If PO for main volume is received by Samsung within 2 months of purchase
  • of a first trial unit (demo unit), 5% of Estimated Street Price  for the first unit is paid back to s/w developer as 2-Month-Bounty Bonus
  • ※ PV sample unit to be provided to below strategic customers who commit volume
slide12

Surface Partner Management

1. Software Developer listto be shared by SEC HQ regular basis

2. Partner management by Subsidiary

3. Strategic Partner who commits large volume, has big pipeline or top-level reseller

→ Identify the partner’s specialty and expertise in vertical

→ Assign subsidiary Salesman

→ Visiting and managing End-customerwith the partner

→ Proposing solution to end customer together→ Recommend the partner if potential customer looks for

4. Small SI partner who subsidiary managing indirectly

→ Managing via Inside sales and Web

for customer where s w partner doesn t exist
For customer where s/w partner doesn’t exist
  • # of partner in each country is below
  • If customer not in below countries looking for buying the product and doesn’t have in-house capability to develop s/w, subsidiary is recommended to contact SEC HQ/Microsoft HQ to get Microsoft engage in obtaining appropriate new s/w partner in the country
slide15

Subsidiary Readiness for Partner Management

  • Samsung Local Subsidiary Training
    • Value Proposition and Sales positioning
    • Partner Materials that need to be delivered by Samsung
      • How to become a Samsung reseller
      • Identify and communicate distributors
      • How they can benefit from the value chain ( Margin and additional benefits)
        • Reseller Margin : 10%
      • Samsung Partner support and what partners can expect from Samsung
      • How to forecast and lead-time education
      • Pipeline management and Deal Registration process education
      • Post Sales process education (service, RMA process, and so on)
    • Provide Sales Tools (MSFT will provide vertical content)
      • Will include pitch decks
      • Sales Collateral
      • Case Studies
      • Available videos
slide16

New Market Road Show for Partner Recruitment

  • Goals
    • Build excitement
    • Raise awareness of GA and Samsung business model
    • Recruit Partners via Surface SDK and Developer Center on MSDN
    • Make connections between Samsung locally and
      • MS Field sales/Developer evangelism
      • Partners
      • Potential Customers
    • Operationalize Samsung Subsidiary to support SUR40
    • Microsoft will fund it
    • SEC HQ will support demo units
slide17

Agenda for New Market Road Show

  • Seoul, Korea (Wed, May 25) Singapore (Fri, May 27) / New Delhi, India (Tue, May 31)
slide18

Partner Recruitment for America & EMEA

  • Live meetings
    • since we already have a ecosystem
  • Local Subsidiary Readiness
  • Very Important to operationalize Samsung and Microsoft field teams
slide19

Product Exposure

  • Leveraging local Microsoft retail store
  • - Leveraging this as showcase
  • - 8 stores exist in the US (will be 12 ~ 15 in September)
  • - Product Price to Microsoft is 25% discount from the Estimated Street Price
  • - As a reseller Microsoft Retail team will Commit to sell product to
  • Business Partners and its store  SEA needs to do f/u
  • Exposure at Subsidiary
  • - Recommend at least 1 Demo unit at Show room or resting area at entrance
  • - If subsidiary makes investment on the demo unit for permanent exhibit,
  • HQ offers 50% discount from the Ex-hub price. In this case, subsidiary
  • has to inform HQ of information of Demo unit location and usage
  • - Sharing show room location with local Microsoft sales resource and
  • leveraging them when we have a meeting with client
slide20

Local Event & Salesmen Training

  • Putting unit on local trade show is strongly encouraged
  • This local exhibit to be determined by subsidiary
  • Subsidiary can invite and leverage local Microsoft team

Trade show to be held by SEC HQ and Microsoft HQ

  • 1. Samsung
    • - Infocomm
    • - IFA
  • 2. Microsoft
    • - MIX April 2010
    • - International Advertising Festival Cannes France
    • - Paris Air Show ( With Dassult)
    • Worldwide Partner Conference in July 10th through the 14th in LA
    • (15,000 Partners)

Salesmen training to be performed at local forum, local sales meeting,

PM meeting, regional pre-sales team meeting and so on

slide21

Marketing Collaterals

Key collaterals to be co-developed by SEC & MS to keep balanced perspective

  • Video, Case Study, Surface SW data sheet, Pitch Deck, Pinpoint to be provided
  • Key collaterals to be uploaded at Samsunglfd.com
  • Also uploading atLocal Web site is required
slide22

PR Strategy

  • Standard PR kit to be provided for subsidiaries
  • Local PR required to be performed by each subsidiary

- Joint PR with SI is possible when big/significant deal is won

- In this case, subsidiary can show that the SI is strategic partner collaborating Samsung

and Microsoft

  • Whenever subsidiary succeeds in selling the product to any customer,
  • make a success case and share with headquarters so that it can share with other
  • subsidiaries and perform active Press Release
slide23

Subsidiary Action Item

for 30/60/90 days

the next 30 days
The next 30 days
  • For PARTNERS
  • Finalize partner reseller model
  • Lock local distributors and communicate to partners
  • Understand the Surface partner ecosystem
  • Communicate the value prop and opportunity broadly to partners. They need specifics
  • INTERNAL
  • Lock product price.
  • Establish MSFT ordering process
  • Set Identify key contacts in Subsidiaries - train and communicate resources and tools
the next 60 90 days
The next 60-90 days
  • For PARTNERS
  • Establish relationships with the 24 strategic partners to understand their competencies, focus, etc.
  • Support MSFT on APAC recruiting events (Korea, SEIN, SEA(Singapore))
  • WITH MICROSOFT
  • Identify and communicate process to connect Samsung and MSFT in each subsidiaries
  • Live meetings with MSFT to local subs to give them a overview on tools and resources to support SUR40
  • Continue meeting local partners
  • Continue planning of GA launch events
  • RESOURCES
  • Build out the SUR40 web presence/resources
  • Continue to build collateral

Microsoft Confidential

a typical engagement
A typical engagement

Microsoft Confidential

opportunity process flow
Opportunity Process Flow

MS

Customer

Surface Partner

Samsung

Samsung Disti

Microsoft Confidential

the role of partners
The role of partners
  • It’s not a solution, without a partner
  • They are your frontline and extension of your sales force
  • Understand the product inside and out
  • Have been pitching the product for years. They know the value prop, the differentiation between competing products
  • They will be the ones to develop the app, so you need them
  • Need to maintain a level playing field as much as possible. Partners compete and they will look for opportunities to get preferential treatment…need to be careful and fair.

Microsoft Confidential

what partners need
What partners need
  • A standard deck that contains the value prop and next steps
    • Sales tools and collateral
  • Consistent information and support
  • Understanding of the ordering process - Forecasting
  • Lead time. Selling the solution and developing an app takes time
  • A volume scaled pricing model (pricing for 0-10, 10-50, 50-100 etc)
  • Mechanism for tracking the opportunity and providing forecasting to Samsung (e.g. CRM)
  • How and when to engage Samsung in the opportunity. Samsung should document when/if they would like to be engaged. For example strategic customer, large customer, large opportunity

Microsoft Confidential

how to position the product
How to position the product
  • Focus on the ROI such as brand impact and customer experience
    • Technology is important but don’t lead with it
  • Brings people together. Collaboration. Multi-touch. Multi-user. Recognizes physical and tagged objects (create unique experiences, unlike a traditional touch screen today)
  • Promote ease of development and flexibility of the platform. Familiar tools. Extensibility to other Windows 7 machines.
    • Keep in mind that the true cost will come in the development and app work
  • Highlight the rich MS Surface partner ecosystem. 350+ partners.
  • Play up the ROI that Harrah’s, Barclays, RBC have seen through their deployments.

Microsoft Confidential

use the available resources
Use the available resources
  • Samsung should develop sales tools and materials to help their field and partners
  • MICROSOFT RESOURCES that are available today:
  • (available on thumbdrive)
  • Videos (v1 & v2)
    • Partner apps
    • Surface experience
  • Case studies
  • Pitch decks
  • Surface software datasheet
  • SUR40 product datasheet
  • Website (surface.com)
  • Pinpoint. Partner showcase area to highlight apps

Microsoft Confidential