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2010 Sales Incentive Program Top Performers 2010 Go big, win big

2010 Sales Incentive Program Top Performers 2010 Go big, win big. I N T E R N A L P R E S E N T A T I O N. Richard Drion ( Richard.Drion@alcatel-lucent.com ) Carla Haag ( carla.haag@alcatel-lucent.com ) April 1, 2010. Sales Incentive Program 2010: Executive Summary. Content.

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2010 Sales Incentive Program Top Performers 2010 Go big, win big

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  1. 2010 Sales Incentive Program Top Performers 2010Go big, win big I N T E R N A L P R E S E N T A T I O N • Richard Drion (Richard.Drion@alcatel-lucent.com) • Carla Haag (carla.haag@alcatel-lucent.com) • April 1, 2010

  2. Sales Incentive Program 2010: Executive Summary

  3. Content • The value of a sales incentive programs • Structure of the Program • Logistics

  4. The value of a sales incentive programs 1 Why should we offer this program?

  5. The Value of Sales Incentive Programs Programs to retain and reward leading sales, marketing or customer service people can give a $40 million lift to a $1 billion business's bottom line. Andersen Consulting • Opportunity to grow the market for Business Partners, Service Providers and Value Added Distributors • Motivate the partner’s sales force to position Alcatel-Lucent over our competitors • Reward on sales • Create partner loyalty

  6. Program structure rationale Program Focus The 80-20 Rule: 20% of BPs make 80% of the sales and profits. The top 20% are already motivated. Focus on the next logical group to increase the business in a more cost efficient manner. Align Alcatel-Lucent business direction with reward criteria Align with the field teams Rewards Real and perceived value of trip Recognition amongst peers is a great motivator Program Success Program needs to be simple & attainable Education and promotion will ensure success • * Hawkeye, White Paper: Partner Segmentation, 2010

  7. Structure of the Program 2 How does the program work?

  8. Worldwide Sales Incentive Program 2010 • Alcatel-Lucent partners are encouraged to participate. • Regionally selected Genesys partners will be invited to participate • Alcatel-Lucent Sales/Marketing Managers per region: Those teams with the partners with the highest growth GOALS • Reward: our traditional top performers • Incent: our smaller and our growing partners • Based on revenue we will reward each type of partner (thus reaching smaller BPs) • Provide a special, discretionary reward for growth new • 83 varied ww partners winners + 10 varied ww Genesys partners (with their partners / spouses / colleagues) + ALU people = 200 pax approx

  9. Worldwide Sales Incentive Program 2010: APAC • Top Service Provider • Top Global Business Partner (if any) • Top Value-Added Distributor • VAD can invite 2 indirect resellers: top partner / greatest growth • VAD with greatest growth • VAD can invite 2 indirect resellers: top partner / greatest growth • Top Premium Business Partner per sub region • Top Expert Business Partner per sub region • Partner with the greatest growth per sub region SEATS: • 17 Partners = 34 people Region APAC • Australia / NZ / India • North Asia • South East Asia

  10. Worldwide Sales Incentive Program 2010: CALA • Top Service Provider • Top Global Business Partner (if any) • Top Value-Added Distributor • VAD can invite 2 indirect resellers: top partner / greatest growth • VAD with greatest growth • VAD can invite 2 indirect resellers: top partner / greatest growth • Top Premium Business Partner per sub region • Top Expert Business Partner per sub region • Partner with the greatest growth per sub region SEATS: • 17 Partners = 34 people Region CALA • CALA North • CALA South • Brazil

  11. Worldwide Sales Incentive Program 2010: EMEA • Top Service Provider • Top Global Business Partner (if any) • Top Value-Added Distributor • VAD can invite 2 indirect resellers: top partner / greatest growth • VAD with greatest growth • VAD can invite 2 indirect resellers: top partner / greatest growth • Top Premium Business Partner per sub region • Top Expert Business Partner per sub region • Partner with the greatest growth per sub region SEATS: • 38 Partners = 76 people Region EMEA • Benelux • Nordics & Baltics • UK & Ireland • Germany • France • Iberia • CCSE • Central Mediterranean Countries (CMC) • Middle East • Africa

  12. Worldwide Sales Incentive Program 2010: North America • Top Service Provider • Top Global Business Partner (if any) • Top Value-Added Distributor • VAD can invite 2 indirect resellers: top partner / greatest growth • VAD with greatest growth • VAD can invite 2 indirect resellers: top partner / greatest growth • Top Premium Business Partner • Top Expert Business Partner • Partner with the greatest growth SEATS: • 11 Partners = 22 people Region North America • US /Canada

  13. Worldwide Sales Incentive Program 2010: GENESYS • Top Genesys Partners SEATS: • 10 Partners = 20 people Region APAC • Australia / NZ / India • North Asia • South East Asia Region CALA • CALA North • CALA South • Brazil Region EMEA • Benelux • Nordics & Baltics • UK & Ireland • Germany • France • Iberia • CCSE • Central Mediterranean Countries (CMC) • Middle East • Africa Region North America • US /Canada

  14. Rewards • 3-4 day event of business and entertainment • Accommodation for two people per winning company. Winners to be named by the company (partners/spouses/colleagues are welcome) • Awards ceremony • Opportunity to meet Alcatel-Lucent Executives • Travel can be covered up to 100% with co-op, following program rules • Location to be confirmed

  15. Responsibilities • Central Channel Marketing Team • Provide legally approved guidelines • Organize Event • Fund event and accommodation for all winners • Launch and ongoing communications and promotion of the program to partners • Regular reporting to Alcatel-Lucent field teams • Create “microsite” within the GESD portal • Field Sales and Marketing Teams • Provide program feedback • Educate Partners • Promote Program • Validate and enroll Partners • Communicate with BP Management • Validate BP individual winners • Push marketing campaigns to generate demand and sales • Liaise with central team if communications need to be localized

  16. Communications plan • Program Proposal – E-mail to Alcatel-Lucent teams with presentation and proposed guidelines. Field Call. Input used to deliver final guidelines. • Launch of Program – Communication to all field teams with program guidelines. • Launch of Program - Communication to all eligible partners with program guidelines • Launch of Program - Communication template for partners to use with their sales force • GESD portal pages with information • Program Follow up: • Teasers for destination discovery / destination voting • End of quarter intermediate results • Games with immediate prize • Summary of available marketing tools for BPs to use to generate leads • End of Program – Reminder to all eligible partners • End of Program – Reminder template for partners to use with their sales force

  17. Graphics • This year’s theme: Go big, win big • Guidelines

  18. Logistics 3 How do we make it work?

  19. Steps to Implementation: Approvals • Obtain Approvals: • Funding approval for T&L and Marcom Materials • Regional buy-in • Overall Legal approval • Create list of eligible partners: Accredited or Undergoing accreditation • Central team provides complete list, regional teams remove ineligible partners: i.e. those that are FCPA-controlled (obligatory) and/or have great overdue accounts (discretionary) Completed

  20. Launch Steps • Obtain program & funding approval • Review with the field • Finalize Guidelines • Obtain legal approval • Develop program documents & Marcom tools • May 12 2010 • Confirm revenue reporting process • Communicate to partners • Create “microsite” and begin event planning • Partners may choose to communicate to their sales forces

  21. Terms & Conditions • Alcatel-Lucent will offer the reward to the Business Partner’s company. It is under the responsibility of the Business Partner’s management to nominate the individual winner(s) from within the company (e.g. general manager, sales, presales or marketing manager). Individual winners need to be approved by local Alcatel-Lucent management. • The winners are allowed to attend the event with one other person (wife, husband, partner or colleague) with whom they will share a double or twin room. • All winners’ accommodation and living costs will be paid by Alcatel-Lucent. Travel expenses can be reimbursed 100% with co-op funds, provided the Business Partner has enough funds and requests approval and reimbursement following the program guidelines. • If the contract between Alcatel-Lucent and the Business partner expires or is terminated, the partner’s participation in the program may be cancelled at the discretion of Alcatel-Lucent. • Alcatel-Lucent reserves the right to modify, cancel, interrupt or extend this program, and all decisions are final.

  22. Evaluate After program execution: • Review program reports • Evaluate program success • Did the Incentive Program achieve its objectives? • Were the participants motivated to change their behavior?

  23. www.alcatel-lucent.com

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