Sales Presentation to Whole Foods Market Michael A. Tarchenski The following document is all the steps involved in selling Chicago’s Own Barbeque Sauce line to Whole Foods Market. DeVry University Online February 13, 2012 Sales Presentation to Whole Foods Page |1 Table of Contents PROSPECTING 2 PRE APPROACH 2 APPROACH 3 PRESENTATION 4 VARIETY OF THE PRODUCT LINE INNOVATIVE PACKAGE DESIGN CONNECTION TO THE CUSTOMER PAST SALES JAR DEPOSIT 5 5 6 7 8 HANDLING OBJECTIONS 8 CLOSING 9 FOLLOW-UP 10 CONCLUSION 10 WORKS CITED 11 Sales Presentation to Whole Foods Page |2 Sales Presentation to Whole Foods Market Prospecting Chicago’s Own BBQ Sauce is a line of homemade, organic sauces used for cooking, marinating, and dipping. Chicago’s Own is made with fruits and vegetables grown locally in the farmland that is outside the city area. They have already shown a following the in the area around the city at local farmers markets as well as participating in last years ‘Taste of Chicago’. Chicago’s Own prides itself on freshness, health, and creating opportunity for everyone involved in the franchise. These values are in direct alignment with Whole Foods Market. Whole Foods Market is a fastgrowing supermarket chain that provides consumers with a healthier option. Some of Whole Foods’ values include selling high quality natural products, satisfying their customers, caring about the environment, and creating on going win-win situations with their suppliers. (Whole Foods Market, 2012) A partnership between Whole Foods Market and Chicago’s Own BBQ will provide customers with a savory variety of cooking, marinating, and dipping sauces all while staying true to the values and quality standards that both organizations feel are important. Pre Approach To be a qualified prospect a potential customer must have at least three things: the need for a product, the authority to purchase a product, and the ability to pay for that product. Whole Foods Market meets all of these qualifications needs. Research has shown that Whole Foods Market is both a qualified prospect and in a position to purchase Chicago’s Own BBQ Sauces. Sales Presentation to Whole Foods Page |3 Whole Foods has a need for natural and organic products to meet their goals of offering healthy choices for their customers. It is not enough for a supermarket to offer one alternative to unhealthy foods. People that want to eat healthy also enjoy variety, like everyone else. This is why Whole Foods needs a variety of different choices for all their product lines. Chicago’s Own offers not only another line of sauces for customers to enjoy, but they also offer variety within the brand. Chicago’s Own offers five different varieties of sauces for customers to enjoy. The authority to purchase a product for Whole Foods lies in the product’s ability to match their strict natural and organic guidelines. Chicago’s Own uses all organic fruits and vegetables in their production process. They also don’t use pesticides and fertilizers that are deemed unhealthy or bad for the environment. These factors show that Chicago’s Own matches or exceeds all of these strict quality standards and Whole Foods absolutely has the authority to purchase the product. A quick look at Whole Foods’ income statement and balance sheet show that they are in a great position to invest in variety. In addition to opening new stores with cash on hand instead of taking on debt or selling stock, their sales per square foot in the new smaller stores was up 29%. (Andrejczak, 2012) With earnings per share being up 51% over the past year it shows investor’s confidence in Whole Foods’ future sales and expansion is high. (Andrejczak, 2012) Chicago’s Own has a competitively priced product line that fits well within Whole Foods Market’s budget while leaving room for a profit margin. Approach For Chicago’s Own to have a successful future with Whole Foods Market there has to be a shared interest in the things that will progress both companies. Bringing the following that Chicago’s Own has already established into Whole Foods’ stores will benefit both parties because it results in more sales for each. To show that they have Whole Foods best interests in mind in the sales Sales Presentation to Whole Foods Page |4 presentation the initial sales call will have two objectives: to get Whole Foods to agree to supply sales by shelf space information for the BBQ sauce section of the store, and for Whole Foods to give the information about who will be involved in the purchasing decision. It is important for Chicago’s Own to get a sale by space ratio from Whole Foods because if Chicago’s Own can provide a better ratio it shows that they have Whole Foods interests in mind. Whole Foods future goals include opening smaller more profitable stores. (Ryan, 2012) To make smaller stores without sacrificing variety, suppliers must be creative with package design as well as the products themselves. Products that can fit more of an item on the shelf require less work by Whole Foods employees in restocking and also leave room for customers to make more choices. This ratio will also verify that Chicago’s Own has the right idea about Whole Foods’ needs and want from suppliers. Finding out specifically who Chicago’s Own will be selling to is another very important aspect of the initial approach. Knowing who will be making the purchase decision helps Chicago’s Own when the sales presentation comes along. They will be able to relate directly to the purchasing parties and show that the relationship will be one based on mutual values, interests, and ideas. Presentation The sales presentation for Whole Foods Market will do five essential things: outline the product line, explain the benefits of Chicago’s Own package design, show how the product creates a connection with the consumer, relay the feelings of current customers, and demonstrate how Chicago’s Own acts environmentally responsible. Each step is broken down into how the information will be relayed to the buyers while also giving information salespeople can use as speaking points. Sales Presentation to Whole Foods Page |5 Variety of the Product Line The variety of the product line will be both displayed for the buyers and sampled by the buyers. This way they will be able to physically see the variety that is offered as well as taste the different flavors on different types of food. The types of food that will be paired with the sauces include fish, miniature hamburgers, grilled vegetables, French fries, and chicken wings. Chicago’s Own comes in a variety of flavors that are sure to satisfy all of Whole Food’s customers. Original is the flavor that started it all. Chicago’s Own first started at local farmers markets with the Original flavor and it became an overnight fan favorite. Original has a traditional barbeque flavor while also having a unique Chicago taste. Fans have described it as a smoky, complex, natural flavor that goes well in meatloaf, on grilled vegetables, for dipping your fries, or eating straight out of the jar. Chipotle was the first variety flavor and it has a rich complexity of savory while being subtly spicy. Mesquite flavor gives the customer a smoky flavor and it goes great on everything from burgers to fish. Buffalo BBQ is great for spicy hot wings and provides the customer with a twist on traditional hot wings or any form of chicken. The latest installment in the line of flavors offered by Chicago’s Own is Honey Barbeque. This last line was made possible by a partnership between Chicago’s Own and Homeland Honey, a local organic honey producer. Innovative Package Design Chicago’s Own packages are designed to allow for them to be stacked. Competitor’s brands do not. Sales Presentation to Whole Foods Page |6 Chicago’s Own has a package that is both recognizable and practical. The label and jar gives the consumer a homemade feel that they don’t receive form plastic squeeze bottles. Aside from the allure of the packages downhome image there is a more practical purpose to the jars. The jars are made from post-consumer recycled glass. This environmental approach taken by Chicago’s Own has benefited the community and consumer through the Jar Deposit Program. Chicago’s Own sauce varieties come in glass jars that are 18 ounces and can stack two high on a standard grocery shelf. This means that on a shelf in Whole Foods, Chicago’s Own could stock twice the variety while using half the space as competitors. Taking into account Whole Foods’ future growth plans of smaller stores, this innovative package design allows Whole Foods to pack their shelves with variety and not require more space. Chicago’s Own has created a package that appeals to the hearts and minds of consumers while at the same time requires less space on a packed grocer’s shelf. Connection to the Customer Chicago’s Own happily supports local farmers like Margaret Fischer. Margaret has been growing all natural, pesticide-free produce for Chicago’s Own Barbeque Sauces for the past three years. It is farmers like Margaret that give Chicago’s Own its unique and complex flavor. A flavor which can only come from handpicked herbs and spices, all natural produce, and a tradition of doing things the right way. Chicago’s Own puts love, time, and passion into every bottle sold so the customer is always delighted. Sales Presentation to Whole Foods Page |7 Chicago’s Own feels that, through their experience with Farmer’s Markets, customers are more likely to buy a product when they can relate that product to themselves. Putting a story about the production process on the Chicago’s Own Original label caused sales of the sauce to rise by 30% within six months. Chicago’s Own has since implemented this idea into their entire product line. Each different varieties label has a brief history and a story about the production process. Another way that Chicago’s Own plans to relate their product line to the consumer is with the “Make Your Own BBQ Sauce” packet. This is a new innovation that is planned to be sold exclusively at Whole Foods Market. This spice packet includes directions which teach a consumer how to use the fruits and vegetables they grow in their own garden to make their own version of Chicago’s Own Original BBQ Sauce. Past Sales $ Sales (in thousands) Chicago's Own Sales Data '07-'11 120 100 80 60 40 20 0 2007 Sales 2008 Sales 2009 Sales 2010 Sales 2011 Sales 22 45 61 83 101 27 44 67 Mesquite 35 49 Buffalo BBQ 41 68 Original Chipotle Honey BBQ 53 As one can see from the tables above Chicago’s Own has had growing sales for the past five years. As new products were introduced they each received a spike in sales due to past customer experiences with Chicago’s Own flavors. Chicago’s Own expects these sales to continue to grow and also experience the same spike in sales when the “Make Your Own” spice packet is introduced. A following Sales Presentation to Whole Foods Page |8 has already been established through Farmer’s Markets and at 2011’s Taste of Chicago. Chicago’s Own is looking for a retail partner so that consumers can purchase the products at a regular location. Jar Deposit Chicago’s Own, much like Whole Foods Market, is an environmentally conscious company. They rely on the environment so it is necessary to reduce waste, reuse packaging, and recycle. That is why Chicago’s Own has already adopted the Jar Deposit Program. When the customer buys any jar of Chicago’s Own BBQ Sauce they will pay a $1.00 deposit on that jar. When the customer returns the jar they receive their deposit back. This entices customers to return their jars and personally help in the recycling process. Empty jars are picked up when a new shipment of sauces comes in. The jars are then washed, sanitized, and refilled. Handling Objections Is the Chicago’s Own product line competitively priced? At $3.50 MSRP Chicago’s Own is comparatively priced with both organic options for BBQ sauce and non-organic options. If Whole Foods decided to charge the $3.50 suggested retail price they could potentially see very large profit margins. The consumer could purchase a jar of Chicago’s Own for $4.50 which includes the $1.00 jar deposit. A return customer would only be paying $3.50 for every bottle after that, when returning their previous jar. The “Make Your Own” spice packet would have a MSRP of $3.00. Is the Jar Deposit Program necessary? It is necessary to implement the Jar Deposit Program when selling Chicago’s Own varieties of barbeque sauce. Chicago’s Own and its current customers feel strongly about the benefits of the Sales Presentation to Whole Foods Page |9 program. Aside from the environmental benefits of the program Chicago’s Own has witnessed additional public relations benefits of the program. The program can be advertised by Whole Foods the same way that it is advertised by Chicago’s Own, as an easy way for everyone to do their part. Can Chicago’s Own break through the competition nationwide? While Chicago’s Own has its roots regionally, here in Chicago, they believe that people all over the world deserve variety in condiments without sacrificing their health. This is why Chicago’s Own believes that breaking through in other markets will be possible. With a globally recognizable city within its name Chicago’s Own will spark the curiosity of shoppers everywhere. Mostly everyone has heard of barbeque from Kansas City, the Carolinas, Memphis, and Texas. Chicago’s Own is here to put Chicago on the map. Closing To ask for a sale a Chicago’s Own representative should quickly outline the benefits of a mutual relationship between both Whole Foods Market and Chicago’s Own and ask for the sale. An example of this would be both quick and direct. “Chicago’s Own has a sales record that shows it has a following, packaging that helps a grocer’s shelves, and variety that gives consumers choices. Is Whole Foods Market interested in giving their customers variety through healthy choices? Chicago’s Own offers exactly that. How many Chicago’s Own varieties would Whole Foods like to stock in their stores? Chicago’s Own can provide each sauce variety at a price of $3.00 per jar to Whole Foods Market. With a MSRP of $3.50 that means that Whole Foods would have a profit margin of over 14% on Chicago’s Own sauce varieties. Chicago’s Own is asking for an order that would first stock the stores in the Chicagoland area. After the sales data comes in for the first two quarters, Whole Foods Market and Chicago’s Own can reassess the order to expand to areas further from the region. Sales Presentation to Whole Foods P a g e | 10 Follow-up A follow-up sales call should be done whether or not a sale is made to Whole Foods Market. If a sale is made on the initial presentation a follow-up call should be done when the product is supposed to arrive. The salesperson should ask if everything went smoothly, if there was anything that could be improved in future deliveries, and thank the buyer at Whole Foods Market again for their order. A follow-up call should be scheduled again every six to nine months to discuss current needs, future needs, and to stay relevant on Whole Foods’ situation. If a sale is not made to Whole Foods Market a follow-up sales call should be made within a year to try and secure a sale. The amount of time will depend on Whole Foods’ interest in the initial sales call, their past and current objections to the Chicago’s Own product line, and whether or not Chicago’s Own has obtained solutions to those objections. A sales call should be made, on the condition that all objections are met, every year after farmer’s market sales are tallied. Conclusion Whole Foods Market and Chicago’s Own Barbeque sauce can form a mutually beneficial relationship that provides consumers with a healthy option for their BBQ sauce needs. Chicago’s Own has quality standards much like those of Whole Foods Market and prides themselves on giving back to the community, providing healthy and tasty options for customers, and maintaining the environment. Through creative package design Chicago’s Own also provides a way for Whole Foods Market to shrink their stores while advancing the variety they are able to provide their customers. This presentation has outlined ways that a complementary relationship between these two parties would result in greater sales by providing the customers greater variety. This Sales growth will ultimately result in happier stakeholders, suppliers, and customers. Sales Presentation to Whole Foods P a g e | 11 Works Cited Andrejczak, M. (2012, February 9). Whole Foods: Smaller is more profitable. Retrieved February 12, 2012, from Market Watch: http://blogs.marketwatch.com/thetell/2012/02/09/whole-foodssmaller-is-more-profitable/ Ryan, T. (2012, February 13). Smaller Boxes Work for Whole Foods. Retrieved February 13, 2012, from Retail Wire: http://www.retailwire.com/news-article/15815/smaller-boxes-work-for-wholefoods Whole Foods Market. (2012). Values Overview. Retrieved 02 11, 2012, from Whole Foods Market: http://www.wholefoodsmarket.com