NAW Association Executives Council (AEC) Summer Meeting July 14 -16, 2014 Carlsbad, CA Increasing Large Member Engagement 1 Mark S. Allen International Foodservice Distributors Association International Foodservice Distributors Assoc. IFDA Members: 155 broadline and systems distributors $127 billion in collective annual revenue 800+ distribution centers IFDA Members are: 25 of the top 25 42 of the top 50 3 IFDA Distributor Membership: Highly Concentrated Annual Sales (2013) Top 10 members are 88% of total member volume 11% 10% 10% 11% 31% 34% 16% up to 50M 50M+ to 100M 100+ to 250M 18% 28% 31% 250+ to 1B 1B+ 4 IFDA… Protecting against costly government legislation and regulation Providing information and tools to help distributors run an exceptional business Creating events to both educate and strengthen relationships Lobbying Benchmarking Partners Executive Forum Grassroots Original Research Distribution Solutions Conf. Advocacy Online Seminars SMart Conference Coalitions White Papers Washington Insights Conf. IFDAPAC Industry Information Presidents Conference Thomas Jefferson Awards Actionable Insights Truck Driving Champ. Guidance Documents Executive Education (UVA) Peer-to-Peer Sharing: Leadership Committees; Planning Councils; Functional Share Groups Communications: Daily and Quarterly Updates; ifdaonline.org; Member Communications Industry Leadership: GS1 Standards; Data Accuracy and Integrity How we Define a “Large Member” Size is important, but we also base it on how the company manages its business 6 Centralized Decentralized Vision 2010 Created a culture of “Thought Leadership” Thought Leaders influence others by creating, advancing and sharing ideas that help provide solutions and as a result are looked upon as a resource for insight and vision – they must “trust the brand” Changed how our members view us - from within Needed to change 7 Staff access to information and ideas How our members viewed our capabilities and skills How we identified and evaluated new opportunities How our members viewed our contribution to their success Member Intimacy Member visits A day to a day and a half 90% is asking questions and listening – it’s about them Set 45 minute meetings with C-suite Key executives Functional heads Have them review their strategy Probe their challenges and opportunities Review association activities where applicable – don’t assume they know what we do Regular contact throughout the year 8 Changing How Large Companies Think About IFDA Opportunities to lead Military contracting Congressional investigation GPO’s – mitigating the risks of “price extendibility” Customer demands – repeal of the RFS Where we had to say NO 9 Vendor-specific issues Competitive issues Mark S. Allen International Foodservice Distributors Association Smart Practices. Sustainable Solutions. Increasing Large Member Engagement NAW AEC Summer Meeting July 2014 Challenges • Association wants large member commitment and active participation. • What can we provide that they can’t do for themselves? Challenges • Sometimes our advocacy goals don’t align. • Three manufacturers in each segment have 90% of market share, so they aren’t interested in statistics. Possible Solution: VIP Member Category • Greater exposure to a high level audience • Social responsibility platform IA Membership Categories & Dues New Platinum Membership Category Manufacturer = $27,500; Distributor $20,000 New Platinum Membership Category Other Unwritten Benefits • • • • • • • High level staff liaison Board consideration First sponsorship options Article opportunities Webinar hosts VIP events, e.g., breakfast the keynote Other volunteer placement Pros and Cons + New revenue for the association + Large members love the exposure and VIP treatment – Only 10 companies are viable targets – Potential perception by small members that we are elitist. Happy Smart Irrigation Month! www.smartirrigationmonth.org Deborah Hamlin, CAE, FASAE Irrigation Association Chief Executive Officer deborahhamlin@irrigation.org Electro-Federation Canada Electrical Council Manufacturers 130 82% Distributors 51 15% Reps) 49 3% Distributors • Range – 1.5 Billion - Under 20 m. • Top 5 – represent about 80% of business. • Distributor fees – Over $30,000 to under $2000 Role of Association • Association is a member numbers game… the size and structure of your association is based on the membership numbers not on $$. Thousands of Members (nurses association) Newsletter Conference Trade show Education GR Affiliate programs (Insurance) Credit card programs Savings on items Web: Membership drive Couple of Members (soft drink association) GR Statistics Outreach to member customers Public PR Conference – meetings Web: No application for membership, no drive, just PR. Large members • Conference – meeting opportunity - not part of a buying group • Statistics – market share is huge with large players, sales and growth can determine bonuses • Government relations – codes and standards, sustainability, compliance • Research that tells them something they don’t know • Employee training system • Any industry initiatives that involve cooperation – – E-commerce, one voice to manufacturers Model Lots of small members • CEO that knows associations • One person per company • Committees tend to be main contacts • Focus on association work Few large members, • CEO that knows the industry • Go deep, rely on more than one person • Involve levels in project committees, larger database • Focus on industry issues