PLACE It mum ”Xbmllbmm you: record. TO AVOID FINES Mum on or bdoroduto duo. DATE DUE DATE DUE DATE DUE MR 7‘ 9 1995 Q MSU IsAn Affinnativo Adm/Equal Opportunity Institution Wyn-m 44*aa AN INVESTIGATION OF SALESMANSHIP AS PEPTATNING TO THE SUPEPMAPKET BUYTNG FUNCTION by Potert Brammer Elten Submitted to the College of Business and Public Service of Michigan State University of Agriculture and Applied Science in partial fulfillment of the requirements for the degree of Department of Peneral Business Curriculum in Food Distribution 1958 Approved:(//;% (:7f’1/'g;j:-€_)KflvQ; pry-‘A ‘nu. A‘. o-. ““‘F -~ ... 1, r? 'Vfigy .~_. ' - 'Vq- -. ‘ 5‘,‘-I nu“, - AT“ IT‘Y‘A-’ " - A ""-J-_,. . u‘ i -.3 ’:. r t 4“. V“ -I flyfi‘argl-rl .. . ‘v‘.-". ‘I \lfiAfi‘ -‘ -‘ \ ‘s.v‘v ~- 3". ‘J ' '..-FI hr -J.__‘ S,” -_‘r-.‘._ L- ‘ f-n -.va ~ ’ y. -., -. ‘ ‘Vfiw..‘_ §‘¥~d _' -.“A. s,~ ‘_ A‘ ”n-“\ r? V“ L. . Q's-§-’ "'AJ' R?- ‘d‘un "a“ \ 4.; ‘., ‘ ‘_d' U V ‘ ‘ - n5: “M‘r U. . 9‘. av ‘VV . 2 ROBERT BRAMMER ILTEN ABSTRACT Statement of Problem The art of selling and of buying merchandise in the food industry today, has become very complex due to the introduction on the market of thousands of new products annually. In view of this increased competitive situation, the problem exists for the food manufacturer to better equip and train his sales staffs with the tools and sales knowledge needed to do an effective selling Job. The buying organization of the large supermarket operations presents a problem to the manufacturer in that the buying committee is the "decision-making” body in this organization, and the manufacturer is not able to make direct sales contact with this important committee. The manufacturer or seller needs to know more about the oper- ation and importance of the buying committee in the super- market buying function.. In light of the findings of an investigation of the supermarket buying function, the seller should tailor his sales presentations to the "buyer‘s interest." Sales pres- entations should not be "canned" but should possess individ- uality to conform to the needs of the customer being sold. The problem is to determine what constitutes an effective sales presentation. 3 ROBERT BRAMMER ILTEN ABSTRACT Procedure The bulk of the data for this thesis was obtained by personal interview either by the writer or by the 1957-1958 class of Food Distribution students at Michigan State University. This data were supplemented by personal cor- respondence and information from the many trade Journals and publications which serve the food industry. A An investigation of the supermarket buying function has been conducted as pertaining to the duties of the grocery buyer, grocery merchandiser, and the buying com- mittee. An analysis has been made on the interrelationship between these three integral parts of the supermarket buying function as it affects the salesman. Case studies have been presented on three types of buying organizations; chain, voluntary, and cooperative. This material has been designed to familiarize the salesmen with the buying procedures of these organizations so that they can better plan and prepare more effective sales presentations. Selected portions of a tape recording of a buying committee in action have been presented and analyzed in terms of what criteria the committee uses in determining the acceptance or rejection of a product. Material has been presented on the type of salesman that is needed today in the food industry. The importance, and how to achieve, good buyer-salesman relations have been 14 ROBERT BRAMMER ILTEN ABSTRACT discussed primarily in terms of what the buyer expects of the salesman. The seller's sales presentation has been analyzed in terms of its content, style, and ability to effeCtively communicate to the buying committee. Summary_of Findings and Conclusion The investigation has shown that the buying committee, as used by the majority of the large chains, has one dis- tinct advantage serving the best interest of the chain, in that the committee acts as an impartial body when weighing the relative advantages or disadvantages of a product. One distinct disadvantage of the buying committee is that the committee may be very cumbersome as respects quick decisions. . The findings disclosedtfluuzthere is a tendenby towards the smaller committee and that the primary reason for the existence of the buying committee is to relieve the sales pressure which is exerted on the buyer. Products which stand the best chance of winning buying committee approval are those that are presented with a properly completed new product form and a supplementary data sheet which is short, simple, and concise. The investigation has shown that although the buying committee may be the "decision-making” body in most instances, the salesman should never underestimate the E. / ROBERT BRAMMER ILTEN ABSTRACT 'importance of the buyer as the buyer is the dominant personage on most buying committees. Interviews have revealed that salesmen should recog- nize the fact that customers are not alike and that they should be sold as individuals; sales tools and methods should be tailored accordingly. "The Food Distribution program at Michigan State University is under the sponsorship of the National Association of Food Chains." AN INVESTIGATION OF SALESMANSHIP AS PERTAINING TO THE SUPERMARKET BUYING FUNCTION by Robert Brammer Ilten Submitted to the College of Business and Public Service of Michigan State University of Agriculture and Applied Science in partial fulfillment of the requirements for the degree of MASTER OF ARTS Department of General Business Curriculum in Food Distribution 1958 7 ,’/-é. ND \) L.) ACKNOWLEDGMENTS The writer wishes to express his sincere appreciation to Dr. E. A. Brand, Director of the Food Distribution Cur- riculum, for his interest, supervision, and helpful sug— gestions in the preparation of this thesis. Special recognition is due to Elroy F. Ihlenfeld of Boundy‘s, Incorporated; B. E. Browne, Jr., of the Godfrey Company; H. w. Larson, of National Food Stores, Incorporated; -and F. D. Dixon of the Great Atlantic & Pacific Tea Company, for the information given to the writer by way of personal interviews. Gratitude is also due to the members of the research department of the J; Walter Thompson Advertising Agency, Chicago, Illinois, for making available certain materials recorded herein. The writer is especially indebted to Liboy, McNeill & Libby for making possible the opportunity to do graduate work in Food Distribution at Michigan State University. A very special vote of thanks is reserved for the writer's wife, Pat, and our four children, Mark, Marsha, Joel, and Joan. This thesis is dedicated to this wonderful family for the "quiet hours" they so generously provided during the past year. TABLE OF CONTENTS CHAPTER ‘ _ PAGE I. INTRODUCTORY MATERIAL. . . . . . . . . 1 The problem and need for solution. . . . 1 Purpose of thesis . . . . . . . . . A kn Method and scope of study II. THE BUYING FUNCTION . . . . . . . . . 7 - The grocery buyer 7 General information . . . . . . . 8 Product information forms . . . . . 12 The buyer and his decision . . . . . 16 Discontinuing items . . . . . . . 24 The grocery merchandiser. . . . . . . 26 General information . .‘ . . . . . 26 Scope of duties. . . . . . . . . 27 The merchandiser and the buying committee 29 The buying committee . . . . . . . . 31 General information . . . . . . . 32 Why buying committees exist. . . t . 3A Composition of buying committee . . . 37 Buying committee procedure . . . . . A2 Test stores . . . . . . . . . . AM Advertising and the buying committee. . AA iv CHAPTER ‘ PAGE Transcript of a buying committee session . 46 Introduction. . . . . . . . . . #6 Analysis of committee action . . . . A7 11:. CASE STUDIES or BUYING ORGANIZATIONS. . . . A9 General information A. . . . . . . . 49 Chain buying organization . . . . . . 51 Voluntary buying organization . . . . . 55 Cooperative buying organization . . . . 61 Product presentation—~product accepted . 62 Screening process . . . . . . . . 67 Buying’committee--composition . . . . 73 Communication of buying committee decision . . . . . . . . . . 73 Product presentation—-product rejected . 74 General information . . . . . . . 75 IV. SALESMANSHIP. . . . . . . . . . . . 77 Introduction. . . . . . . . . . . 77 The professional salesman . . . . . . 79 Basic requirements for a professional salesman . . . . . . . . . . 79 Motivations of the professional salesman 83 Motivation and emotional maturity. . . 85 Prescription for a well balanced life . 86 The buyer-~salesman relationship . . . . 89 The sales call . . . . . . . . . 89 ~What the buyer expects of the salesman . 93 CHAPTER PAGE ' v. SUMMARY AND CONCL SION . . . . . . . . 95 BIBLIOGRAPHY . . . a . . . . . . . . . . lOO APPENDICES . . . . . . . . . . . . . . . iou APPENDIX A--Product Information Forms . . . . . 135 APPENDIX B--Transcript of Buying Committee Session. 116 CHART I4 XI. XII. LIST OF CHARTS Hours Spent Buying. Salesmen and Brokers Seen During Average Week. Time Buyer Gives Average Salesman. Criteria Used In Initial Screening Buyer‘s Evaluation Procedure at the Jewel Tea Company. Reasons for Discontinuing Items What Merchandisers Do (By Size of Company). The Merchandiser and the Buying Committee What Does the Buying Committee Do. Buying Committee Composition--SMM Survey Composition of Grocery Buying Committees Growth of Affiliated Independent Retailers. CHAPTER I INTRODUCTORY MATERIAL The Problem and Need for Solution Food manufacturers and processors have found it . increasingly difficult to sell their new products to food retailers, yet this is a task that must be accomplished if the manufacturer or processor is to succeed. The manufac- turer, realizing that new products have a profound impor- tance to his company, is very concerned with this problem, in fact, he knows that new products can actually realign the standings of giant companies in the food industry. Surveys show that the median number of grocery items stocked in supermarkets today is approximately 5,000. If a chain or supermarket organization accepted all the new products offered to them each year, they would acquire a number almost equal to the complete stock of the average supermarket.l Under these conditions, shelf space is at a premium and the food manufacturer is forced to adjust his selling methods if he is to realize his fair share of the market. This can be done by a better understanding of the supermarket buying function as it exists today. lAn address by Mr. John A. Logan, President of the National Association of Food Chains, to the annual convention of the Grocers Manufacturers of America, Inc., November 12, 1957 - . ‘ Chain and supermarket buyers are constantly on the alert for profitable new lines, but they are mighty se- lective in choosing them. To accomodate the promising new products, a constant weeding out process is necessary and the slow movers in current stocks are eliminated. Along with his regular duties, the grocery buyer is faced with the handling of a never-ending parade of new items, more than 6,000 new products annually, which he has to analyze and either accept or reject.2 For this reason, the sales- man finds that he can no longer take up the buyer's time with social visits, or calls to merely check on the progress of an item which had been previously submitted. The buyer‘s tight schedule demands that sales calls be short and to the point, consequently, the manufacturer and his salesmen are faced with the problem of how to effectively utilize the short time they are allotted for sales presentation. The road to marketing a new product is recognized by ‘ the processor to be long and arduous, and most are well prepared to assume the neCessary risks to begin the new product on the road to success. The controllable factors are well known and when experimentation, marketing research, and sales management functions have been planned and executed, the product enters the uncontrollable stage of Inarketing--the realm of another owner of the product. All Ibid. effort is wasted if the new product is barred from this marketing phase and in most retail food companies a "Buying Committee" or a "Buyer" is the "keeper of the keys." The buying committee can be considered a logical result of the "fight for sheIf space" which is being waged with ever—increasing intensity by food manufacturers and processors. The buying committee was created as an aid to the buyer and along with the buyer and the merchandiser, constitutes the supermarket buying function in most of the large retail food organizations. Special emphasis and study will be given to theruying committeegas this phase of the buying function is relatively new in the food field. In studying the buying committee there exists the problem of differences in regulation and organization of the committees among the various retail food companies, to the extent that no two committees are alike. This pre- sents a more difficult sales Job to the manufacturer and processor as they are keenly aware that the key people to reach-~the "decision makers"--are to be found in these buying committees, consequently, they know that emphasis Imust be placed in the training of their salesmen to ef- fectively communicate their sales presentations to the buyer .in such a way, that these communications will reach through to the buying committee. New products have played an important part in the Etxpansion of supermarkets; they also are the life-blood of the food manufacturer. According to Mr. Paul S. Willis, President of Grocers Manufacturers of America, Incorporated, approximately thirty to forty per cent of grocery manu- facturer's present sales are from products that were not found on the market ten years ago. He feels that if this rate continues through the next ten years, more than fifty per cent of grocery product sales will be realized from 3 Obviously, products that are unknown on the present market. new product competition will be extremely keen, and for food manufacturers to "stay alive" their sales staffs will have to be equipped and trained with the tools and sales knowledge required to do a better than average selling Job. The super— market buying function has become very complex and it is hoped that this investigation will not only aid the manu- facturer in selling his products, but also will help him to better understand the food retailers‘ distribution problems. Purpose of Thesis This thesis is directed primarily to the manufacturer and broker salesmen in the food industry, so that they may better recognize the buying problems of the various super- :market operations and consequently, through a better under- Standing of buying procedures, to do a more effective 3"Three Factors Held Necessary For New Products." fiupermarket News, Vol. 6, No. 42 (October 21, 1957), 57. 5 . selling Job. Although it will be impossible to determine a sales technique which would be effective for any given sit- uation, this investigation is designed to help salesmen by attempting to answer such questions as: What are the duties of the buyer and the buying committee? How does the buying committee function? Who are the committee members and what are their Jobs? Are buying decisions made by the group or by an individual? Who makes the decisions as to adding or discontinuing items? Does the buyer serve as a front to the buying com- committee? What are the prerequisites of a professional salesman? What factors are necessary for a good buyer-salesman relationship? In an attempt to answer these questions, information will be presented outlining the buying procedures of leading food distributors in the United States. There is a definite need for co-operation between the manufacturer and the retailer in the food industry. This investigation will aid the manufacturer in achieving this co-operativeness through the use of better sales methods which are in harmony with the individual retailer's buying methods. Iflethod and Scope of Study The bulk of the data for this thesiswwnxaobtained and VV111 be presented by the case method. The case studies contained herein were conducted by personal interview either by the writer or by the Food Distribution students at Michigan State University. This datawere supplemented by personal correspondence and information from the many trade Journals and publications which serve the food industry. The presentation of this material should not be con- strued as an attempt by the writer to evaluate any one buying organization in terms of superiority. The material is presented for comparison purposes only, and is used in an attempt to formulate better sales methods for the grocery manufacturer. The scope of this study includes an investigation of the buying function of Chain, voluntary, and cooperative retail food organizations as pertaining to grocery products. CHAPTER II THE BUYING FUNCTION The first step in the investigation of the buying function will be that area which concerns the grocery buyer. In some organizations, the buying function is performed entirely by the buyer(s), but this is the exception rather than the rule. According to a depth survey of 209 retail food companies conducted by the research department of Sepeg Market Merchandising, sixty-nine per cent made use of buying committees. This same sixty-nine per cent controlled eighty- eight per cent of the stores, indicating that the use of buying committees is more prevalent in the larger companiesf‘ Regardless of whether or not the buyer has a buying com- mittee to aid him, he is still the "key” man in the buying function. The Grocery Buyer There is an old saying among food retailers that "goods well bought are half sold.” Certainly there is much truth in this saying, and the food retailer who neglects to give ‘the buying function the attention it requires, operates under a severe handicap : k “"Inside the Buying Committee," Super Market Merchan- ciising, Vol. 22, No. 2 (February, 1957), 66. 8 General information. The duties of the grocery buyer have drastically changed in recent years. He is now respon- sible for the purchase of thousands of different items, ap— proximately twice the amount handled a Short ten years ago. Automation has come to the rescue of the buyer, however, which frees him from the routine of too much interviewing and too much ordering. :Ashdescribed by Herbert M. Cleaves, Vice-President of General Foods, "The old-time buyer is gone. In his place is--the distribution specialist.“5 How does this transition affect the buyer—salesman relationship? It means the salesman as an "order taker" is finished. By studying the E§§§§.Of the buyer-—the”dis- tribution specialist"7-the salesman can and must assume a new role—-a "merchandising consultant."6 The buyer must devote more time than he did in the past in studying the factors which are responsible for moving the merchandise he buys; such factors as customer behavior, display tech- niques, store lay-out, and methods of stocking merchandise are the more important ones.; Manufacturers and their salesmen have tough compe- tition in the'"merchanical buyer,‘ the International 5Speech by Herbert M. Cleaves, Vice-President of <3eneral Foods, before the 1957 Mid-year meeting of the (}rocery Manufacturers of America, Inc. 6Ibid. “ Business Machines Corporation (IBM) systems and other mechanical methods which automatically place orders based on turnover of stock. The IBM systems are accurate, of course, as far as the data which is fed into the machines is accurate. The problem is, that the machine will order on past records in estimating what mey be sold in the next ten days to two weeks. This "mechanical buyer" cannot take into account the predictable elements in ordering, such as promotional activity, price and market changes, et cetera. If the "mechanical buyer" is not properly controlled, there will be a loss in sales for both the retailer and manu- facturer due to out—of-stock conditions. A lot of buying is simply a matter of ordering or arithmetic in that an item is bought once--the first time. This attitude, and practice, saves much time by avoiding repeat interviews, granting them instead only to those salesmen with new items or promotions. This practice can be termed automatic buying and works best for individual items. About half or more of the buyer's inventory would fall under this classification. A manufacturer's line, such as cereals or baby food, still must be ordered; and because of this many leading manufacturers_now provide order forms to simplify the buyer's work. Automatic ordering has been an important factor in reducing "outs" to a minimum while simultaneously increasing turnover. 10 Just how does the buyer spend his time? To obtain a better idea, Super Marketing Merchandising made a study of the private and public lives of 3A7 buyers. These buyers represent 13,700 stores from the small independent organ— 7 The ization right up to the largest corporate chain. Charts on page eleven show how many hours per week he spends buying, how many salesmen and brokers he sees during an average week, and on page thirteen how much time he gives the average salesman. Chart I indicates that the buyer spends an average of Sixteen to twenty hours each week in actual buying time. What does he do with the balance of his time? To begin with, the word "buyer" in many cases is actually a misnomer. The buyer is also a salesman as he is constantly selling his ideas to his associates and to the manufacturer's repre- sentatives. He may also be doubling as a merchandiser, advertising manager, general manager, supervisor, et cetera, which would account for some of his time. He may spend con- siderable time pricing, checking invoices, issuing bulletins, handling correspondence, training assistants, sampling canned goods, checking competition, and numerous other duties. The larger the organization, the more specific and limited the duties tend to be. In any event, the buyer is a very busy man. 7"Portrait of the Buyer," Super Market Merchandising Vol. 22, No. 1 (January, 1957), h5.r 11 MR. BUYER AS HE LOOKS 1N CHARTSl CMART'T HOURS SPENT BUYING No. of Hours thanLIiS [7— 9.9 <_I Per Cent of Buyers 13-15 [ 21.6 ] 16-23 [ 22.5 median j 21-33 L__ 17.7 ] 31-A3 [_ 13.5 ] Ai—EL [’ 8:1 1 Over 50 [A 6.7 ] CHART II SALESMEN AND BROKERS SEEN DURING AVERAGE WEEK No. of Hours thanLees L 10.1 1 Per Cent of Buyers 13-2: L 22. :. I 21-33 I 26.5 J 31-53 [_ 2u.u 1 Over 50 [ 17.0 1 1"Portrait of the Buyer," Super Market Merchandising Vol. 22, No. 1 (January, 1957), 52. 12 Chart IT indicates that the buyer will see approxi— mately thirty salesmen during the average week. This limited number presents quite a problem to both buyer and salesman. Buying appointments for salesmen are at such a premium with a number of the larger chain organizations, that buyers are severely critical of those salesmen using appointments for "good will" purposes, thereby depriving sales time for those who have a real and needed sales message which will be of benefit to both retailer and manufacturer. The prudent salesman will efficiently utilize the buyer's time. As indicated by Chart III, the average salesman re- ceives fifteen minutes to make his presentation to the buyer. This is the time the saleman sits in the chair by the buyer's desk, it is £22 actual selling time. For the most part, buyers are interrupted by telephone calls or by fellow workers; in some instances the salesman is lucky if he receives five minutes actual selling time. Fortunately for the salesman,,there are a few buyers who will not accept calls during buying hours.. This shortage of selling time necessitates effective sales presentations. This is done in part by supplying the buyer all the pertinent data concerning the product on product information forms. Product information forms. Product information forms are furnished by both manufacturer and retailer. Salesmen should always use the forms provided by the customer instead of his own or his company's forms. By doing this, the 13 CHART III TIME BUYER GIVES AVERAGE SALESMANl Amount of time' in minutes 5 Per Cent of Buyers 1:1 [ 16A 1 15 Le 33.1 median 7] 20 L_A 22.6 T fifi % 25 | 7.6 | 33 [_ 12.8 1 Over 30 1"Portrait of the Buyer," Super Market Merchandising Vol. 22, No. 1 (January, 1957), 52. salesman eliminates the possibility that the buyer will think that the only questions placed on the form are those which can be answered to the manufacturer's advantage. There are a number of retail food firms where the use of their new item form is mandatory. In the event the customer does not furnish a new item form, the grocery buyer welcomes the salesman's use of the manufacturer's form such as the first form shown in Appendix A. The more complete the new item form is, the faster and the more efficiently the grocery buyer and the buying committee-can make a decision. Neither the manufacturer's nor the retail food firm's product information forms are as complete as they should be. Of the total new product case 1A studies made by the Food Distribution students at Michigan State University, the data indicated that ninety-five per cent of the salesmen making new product presentations, supplemented the regular product information form with additional data and materials. '_‘_- - 5“»...— The buying department of the H. C. Bohack Company, an Eastern chain, uses a‘forty-four page question form, and to gain a more thorough understanding of the product, they ask the following sixteen questions of the salesman or broker when they present the new item: Is the item completely new and non-competitive? Or is it an existing product with some improvements made? If.so, what are these improvements? Who will benefit from it? How much will the average family consume in a month? What are the financial and ethical responsibilities of the sponsoring company? Have they [the company] had any experience in the field of distribution and product competition? If the item replaces an existing product, will demand for the product be increased? What is its margin of profit? Will it be consistently advertised? Has it been successfully market-tested? Is the packages' label self-selling? Can it be easily marked, and how is the case packed? Does it possess originality and have a sales and use message? Will it be a ”full—time" or a "mass” item? Is the product to be offered to a limited or a general area? t—‘t—‘l—Ji—Jl-J JS‘LAJIUl—‘LIKO (I) \1 mm JI‘UU [UH r—J H O\\.n 8New product caaa studies conducted by the Food Dis- tribution students of Michigan State University, Winter term, 1957-1958. 9"60 Questions A Chain Store Buyer Asks About New Products," Food Business, Vol. A, No. 2 (February, 1956), ll. \ A good salesman knows ell_about his product and a good buyer wants to know all about any product he places under consideration. The data requested in product infor- mation forms may vary to a certain degree from one company to another. Even within a company there issuiabsence of uniformity with regard to usage and content of product information forms. The Great Atlantic & Pacific Tea Company (A & P) Detroit branch, for example, uses a form as shown on pageIMTFOf Appendix A, while the A & P Milwaukee branch does not furnish nor require a form for product information. The Milwaukee branch feels that the manufacturer is in a better position to design product information forms; that since the product will be accepted or rejected on its own merit, the manufacturer should have the opportunity to present all the information that they feel is essential in selling the product.13 \ '\ Product information forms for other firms in the food industry are Shown in Appendix A. To illustrate a compar- ison of forms within one company, pagesljfiiandljxashow the forms in current use by the Detroit and Milwaukee branches of the National Tea Company. The Milwaukee unit maintains a permanent record of all forms presented on items accepted and rejected. Their forms are pre-punched so that they can lQPersonal interview with F. D. Dixon, Grocery Buyer, A&P Tea Company, Milwaukee, Wisconsin, March 21, 1958. 16 be conveniently placed in loose leaf binders. Also included in the Appendix are copies of the forms used at The Kroger Co., Pittsburgh branch; Bettendorf‘s, St. Louis, Missouri, a subsidiary of ACF-Wrigley Stores, Incorporated; the Des Moines, Iowa branch of Super Valu Stores, Incorporated; and the Godfrey Company, Milwaukee, Wisconsin. The buyer and his decision. After the salesman has made his presentation, the fate of the "new" product rests in the buyer's hands. The term "new” product as used in this thesis, denotes that the product is not being presently stocked by the firm considering the item. The buyer receives presentations on deals, promotions, et cetera, but the bulk of the sales presentations are concerned with new products. The groCery buyer has to be a shrewd judge to properly evaluate new products. He knows that many new products are failures due to improper marketing by the manufacturer, or failure in the product itself to satisfy a consumer need. The practice of some manufacturers to introduce items just to keep their name Circulating, must also be taken into con- sideration by the buyer. On what basis an item is accepted for consideration by the buyer is not clear. The buyer in industrial pur- chasing is guided by production control which indicates specifically what is to be purchased. There are no rules .or standards established to guide the supermarket buyer in making his decisions. The combination of experience and l7 judgment are probably the two most important factors with which the buyer makes his evaluations. This answer may be less than satisfying to those who wish to construct a "science" of decision—making, but the inability of buyers to make a decision usually stems from lack of experience and good judgment. An article in a business magazine points up this in- ability of executives to account for the decisions that they make in terms of logical steps or processes. Some of the executives interviewed even stated that they believed decision-making of the executive variety was a matter of intuition, and that rational processes account for only a part of the process. The author of the study concludes that "In the new era of decisions, as in the past, the executive must find the problems and the alternatives. The combination of these creative acts together with the act of judgment, still defines and probably always will define the prime fUnction of the business executive."11 The grocery buyer will probably be the first to admit that he is forced to rely on intuition to a greater degree than good business practices warrant. Buyers do have certain criteria which they use for the initial screening of new products.' Chart IV shows the criteria used in initial screening by the buyers of llJOhn McDonald, "How Businessmen Make Decisions," Eggfigfle, Vol. 52 (August, 1955), 137. CHART IV 18 CRITERIA USED IN INITIAL SCREENINGl Criteria Used By 31 Buyers x - Denotes Usage by Buyer Interviewed Kn ll. 12. 'Does Is the item a substitute for one presently carried? Is it a duplication? Is the quality good? Is the price right? Will it show an adequate profit at competitive prices? Suggested retail price too high it perform a real service? Does it enlarge the market for that category? Does it carry cooperative adver- tising allowance and cash discount Local and/or national advertising? Will it sell? Any special promotions, demon- strations, coupons, etc.? Is the manufacturer or broker a reputable concern? Are they experienced? How much profit compared to similar items? Will company policy allow handling the item? What competition presently handling item? What are their sales result on item? xxxxxxxxxxxxxxxxxxxx xxxxxxxx 28 xxxxxxxxxxxxxxxxxxxx xxxxx 25 xxxxxxxxxxxxxxxxxxxx xxxxx 25 xxxxxxxxxxxxxxxxxxxx xx 22 XX XXXXXXXXXXXXXXXXXX _ x . 21 xxxxxxxxxxxxxxxxxx18 xxxxxxxxxxxxxxxxx l7 xxxxxxxxxxxxxxx 15 xxxxxxxxxxxx 12 xxxxxxxxx 9 xxxxxxxxx 9 xxxxxxxx 8 lNew product case studies conducted by the Food Distribution students of Michigan State University, Winter term, 1957-1958. CHART IV (Continued) 19 Criteria Used By 31 Buyers x - Denotes Usage by Buyer Interviewed 13. 1A. l6. 17. 18. 19. 21. How does the item compare in. potential sales to similar items presently handled? How much advertising by buyer will be needed to properly introduce product? Is the size of the package adaptable to stock--both warehouse and retail? Are there local warehouse stocks carried? Is the label attractive and functional? - Is there a guaranteed sale on the item? Is the package designed for easy price marking? Do the stores have enough shelf space to stock the item? Is the product a Special one- shot item? xxxxxxx 7 xxxxxx 6 xxxxx 5 xxxx A xxxx A xxx 3 xx 2 xx 2 x l thirty-one different chain units which were studied by Michigan State UniverSity Food Distribution students. The criteria are summarized for all the branches and are ranked according to their importance to the group as a whole. ESalesmen would do well to prepare their presentations in “light of these criteria. 23 The Jewel Tea Company, Incorporated, Chicago, Illinois, has a practice which is very well received by salesmen. They periodically distribute a pamphlet which indicates the various buyers by name and the items each is responsible for as purchaser. This pamphlet illustrates by means of a chart the evaluating process used by the buyer in reaching a decision. This chart is reproduced as Chart V on the following page. Jewel Tea has no buying committee and each buyer is directly responsible for the commodities he buys. As is the case in many other chain operations, to further aid the buyer in making his evaluation of a new product, the Jewel buyer may test any item he feels has a Laotential, in stores assigned to him for this purpose. The buyer should not allow bias to influence his cxpinion or decision regarding a new item. The fact that he Cices not personally like the product or the salesman should rlcat influence his evaluation. Unfortunately for the sales- rnean and the manufacturer, the attainment of this degree of CDtsjectivity by any buyer, is rare indeed. Not to have some Cieagree of bias is against human nature. Some salesmen are rlaturally gifted in the art of selling both the item and 13k1emselves to the buyer, while others may have a much better IDI’oduct but are not as qualified or lack the personality to l2Salesmen's Guide 3e Buyers (Chicago, Illinois: ‘Ieawel Tea Company, Inc., February 15, 1957), p. 2.[Pamphlet] CHART V BUYER'S EVALUATION PROCEDURE AT THE JEWEL TEA COMPANYl Product X New Product Duplicate Product I I Does‘it perform Is the Will it Will it a new service service enlarge replace or give a worth the the a new taste price market? competitive thrill? asked? item? Wh ? Is the quality good? What is its sales potential? Is the firm responsible? Aggressive? Financial Do they High Pressure? condition support Conservative? sound? their Consistent? Doubtful? ,product? lSalesmen's Guide 22 Buyers (Chicago, Illinois: Jewel Tea Company, Inc., February 15, 1957), p. 2. [Pamphlet] 22 win the buyer's approval. Buyers should remember that they are evaluating the product not the salesman on the ability to bring profit and customers to their stores. Grocery buyers, as well as the retail food industry as‘a whole, should maintain an "open door" policy for new products. As Robert A. Magowan, President of Safeway Stores, Incorporated, recently explained this policy, Everyone with a product to sell deserves a hearing. With the tremendous expansion of items of supply, no retailer can handle all lines. However, no food management can afford to Close their eyes to new products. Unfortunately for national brand manufacturers, buyers are not always free to consider items that are in compe- tition to company branded items. The buyer is usually governed by company policy with regard to brand selection and his initial screening takes this into consideration. Mr. Magowan feels that a product should be considered regardless of brand, if that product has quality, consumer acceptance, price, or any combination of these factors. He further states that "Every item must sell on its own merits, whether it is the company's brand or an outside brand.”14 In those organizations where a buying committee func- tions, of particular interest to the salesman is the number .H l3"Safeway-~Major Processor, MaJ9P Customer, F008 Processing, Vol. 19, No. 1 (January, 1958), 30. lL‘lhid. 23 of items that are screened out by the buyer before presen- tation to the committee. Out of the thirty-one case studies conducted by the Michigan State University Food Distribution students, twenty-four buyers indicated to what extent they screened their items. Based on the number of new items presented to them per month, the buyers‘ estimates ranged from thirty per cent to ninety per cent on items screened out. The seven remaining buyers either could not make an estimate or declined to comment.15 The average screen outs for the twenty-four buyers was approximately seventy-five per cent. Although these estimations are primarily guess- work by the buyer, it is indicative to the extent that the salesman can expect only one item out of every four he presents to reach the buying committee for consideration. The studies also showed that a product that has been screened out, as well as those rejected by the buying com- mittee, can be submitted again for consideration if one of the following changes takes place: 1. Development of a stronger market for that product. 2. A change in nature and scope of promotion and advertising. - 3. A new package design, label Change, etc. A. Change in price structure. 5. In general, apg significant change from original presentation. 15New product case studies, op. cit. Ibid. 2A To briefly summarize this important phase of the buying function, the decision of the buyer to consider a product is decided in terms of that product's sales poten- tiality. To consolidate the decision-making criteria of the buyer, for a product to be worthy of consideration it needs the following: QUALITY-~More important today than ever before. UNIFORMITY--For continued consumer franchise and customer assurance. COMPETITIVE PRICING-—Combination Of.X§lE§ e3 e ngiee is a must. - ATTRACTIVE LABEL OR PACKAGE--First impression is visual. ADVERTISING AND MERCHANDISING--Must be effective. Discontinuing items. William Applebaum and Richard Moulton came up with some interesting data in their 1956 study of eight supermarket Chains. It is one thing for a manufacturer to gain placement of their product on the supermarket's shelf, but it is quite another to retain that placement. The records of these chains showed that for every 100 new items added, eighty—seven old ones were banished. Their study reveals the reasons why these chains discontinued items (see Chart VI). When a salesman is notified that one of his products is being discontinued, he immediately anflus the buyer the reason for this action. Invariably the answer is that the CHART VI REASONS FOR DISCONTINUING lTEMSl 1 1 Percentage of Items Dis- Reasons continued for this Reason Insufficient volume and profit (slow movement) A2% Did not fulfill expectations 22 Replaced by superior item (quality, 15 brand, price, private label, acceptance) Due to manufacturer's action 11 (change in size, pack, package, label, price, discontinued) Consolidation of lines 3 lWilliam Applebaum and Richard H. Moulton,'"An Explor- ation into the Reasons Why Supermarkets Add and Discontinue Items," Weekly Digest, Vol. 58, No. 18 (November 2, 1957),3. item does not move. Lack of movement, or proper rate of turnover, is easily recognized by the buyer upon frequent analysis of his buying records. A good buyer knows what rate of turn each item should obtain; these "yardsticks" are established for every product. The buyer's job is to discontinue the Slow movers providing they are not classed as essential items. To be competitive today, the buyer -must obtain his money out of these slow movers as fast as possible and invest these funds on merchandise that sells. 26 The Grocery Merchandiser General information. The relative importance of the grocery merchandiser to the buying function will be consid- ered in this portion of the text. The merchandiser may be the buyer in the smaller organization, while in the larger firm his duties are separate and distinct from that of the buyer; it is within the latter organizational framework in which the merchandiser will be considered. The merchandiser is the promoter of the supermarket firm and as such his impact on the buying function is very powerful. As in the case with the buyer, the job title of the merchandiser may vary from that of head buyer to merchan- dise manager. The merchandiser's contact with salesmen is usually very limited and restricted to discussion concerning promotional events, point-of-purchase material, display techniques, demonstrations, et cetera. Products must be first presented to the buyer, but it is to the salesman's advantage to "diplomatically" call the merchandiser's attention to the presentation made to the buyer. The merchandiser holds a high position in most organ- izational structures. He is a step above the buyer and wields influence accordingly. According to a survey of supermarket buyers, their next job preference would be that of merchandising manager, which indicates the relative importance of these two positions.17 17"Portrait of the Buyer," 02- _C.__it-: 9' “9- 27 Scope of duties. Although we are interested in the merchandiser as to his influence on buying procedures, a closer look at the many duties of the merchandiser will give a better understanding of his ability as a "decision— maker." Chart VII lists the merchandiser's more important activities. This data was obtained in a study of fifty- eight companies which operate 2,0A5 supermarkets.18 Of major importance, is the high percentage of merchandiser's who indicate that their duties include the supervision of buying. This would seem to indicate that the buyer is a "pawn" of the merchandiser in most of the large supermarket organizations. In some instances, the buyer initiates a sales inter- view at the request of the merchandiser. This zege sit- uation (from the salesman's viewpoint), develops when the merchandiser needs an item of a certain type and price for promotional purposes. Such product presentations represent tremendous volume to the manufacturer as well as the retailer. The aggressive salesman plans his promotion and then promotes his plan to the merchandiser--this is the key to real sales volume. New items which are advanced and sold primarily through the merchandiser are ususally "one-shot" items, items that are not carried as regular stock. l8"The Merchandiser. . . Wizard of Promotion," Super Market Merchandising, Vol. 23, No. 1 (January, 1958), H5. 28 CHART'VII WHAT MERCHANDISERS D01 (By size of company) i Small Medium Large 1-9 10-29 30 Stores Duties Stores Stores and Over Buy merchandise . 71% 62% 50% Supervise buying _ 87 75 93 Keep informed on market, prices, trends 100 100 100 Determine lines, kinds, and variety of products on display 77 88 78 Determine quantities of products to be bought 6A 75 78 , Develop displays and display ~methods ' 68 62 86 Decide on use of display materials from suppliers 68 50 78 Decide which promotions to accept from suppliers, 8A 75 78 Control use of point-of-sale materials - 6A 62 71 Determine items to be featured in advertising ' 93 100 78 Develop special displays for holidays,seasons, and promotion 74 (5 57 Study turnover 8A 88 93 Decide which items to discontinue 87 88 78 Decide which items to use as replacements 77 73 71 Control inventories to aid turnover 8O 75 71 Adjust amounts to be bought 71 37 57 Adjust selling prices 8A 88 78 Change store-ordering procedures when necessary 87 88 71 Determine allocation to stores 67 '37 5O Establish retail prices 77 62 78 Relay market information to others 7A 88 78 Head up discussions on merchandising ' 71 88 93 Advise others on merchandising plans 80 62 86 Decide what is to be delivered to stores and What to warehouse 71 5O 57 1"The Merchandiser. . .Wizard of Promotion," Su er Market Merchandising, Vol. 23, No. 1 (January, 1958 , 0-47. CHART VII (Continued) Small Medium Large 1-9 10-29 30 Stores Duties Stores Stores and Over Visit stores to follow up on merchandise 81 75 71 Suggest corrections in stores 7A 62 6A Visit competitor stores 84 88 93 Help in store layouts 7A 62 6A Plan advertising budget 71 62 43 Select men for promotion 51 62 71 Set sales quotas A5 50 50 Work on training program 38 12 50 Write merchandising bulletins 38 88 71 Study and advise on handling of items with respect to temper- ature, etc. 64 37 35 The merchandiser and Ehe buying committee. Of major interest to the salesman is "Who makes the crucial decisions on adding products, promotions, and discontinuing items--the merchandiser or the buying committee?" The data shown in Chart VIII indicates how these decisions are divided between merchandising managers and buying committees. The merchandiser is cast in the role of coordinator in that he is responsible for proper coordination between the buying and merchandising departments. The merchandiser is undoubtedly one of the key links between the manufacturer and the supermarket. Obviously, from the data presented, the salesman should make every effort to acquaint himself .with the merchandiser, if an effective selling job is to be realized. CHART VIII THE MERCHANDISER AND THE BUYING COMMITTEEl Who makes the crucial decisions ee adding products? Major product decisions (those involving relatively big sales) are divided between merchandising managers and buying committees. The same applies with regard to minor products. Major Products Minor Products (by size of Co.) (by Size of Co.) '30 or 30 or 1-9 10-29 more 1-9 10-29 more Units Units Units Units Units Units Merchandiser A5% 30% 23% A8% 36% 31% Buying Committee 35 50 A7 28 5A 54 Both 20 20 30 2A 10 15 Who makes the crucial decisions ee promotions? There is a surprising area of independence exercised by the merchandising director in selecting promotions. As companies get larger, he shares more of this authority with the buying committee--with respect to major pro- motions. The reverse seems to be true with regard to the hundreds of minor promotions offered. Here, he tends to share fewer of his decisions with others. Major Promotions Minor Promotions (by size of Co.) (by size of Co.) 30 or 30 or 1-9 10-29 more 1-9 10-29 more Units Units Units Units Units Units Merchandiser- 58% 9% 23% AA% 27% 31% Buying Committee 19 36 46 3A 5A 5A Both 23 55 31 22 19 15 1"The Merchandiser. . .Wizard of Promotion," Super Market MerchandisingJ Vol. 23, No. 1 (January, 1958), 59-50. 31 CHART VIII (Continued) Who makes the crucial decisions ea discontinuing items? The smaller the company, the more the merchandiser has to be the one to decide on discontinuing items, all by him- self. However, the buying committee assumes more of this function as the companies get bigger. It‘s all part of the specialization the industry is going through. By Size of Company 1-9 10-29 30 or Units Units more Units Merchandiser 43% 25& 30% Buying Committee 31 55 A0 Both 26 18 3O The Buying Committee The salesman is familiar with the buyer and his part in the buying function because of the personal contact and, to a lesser degree, the same is true with the merchan- diser. However, the salesman is usually not familiar with the members of the supermarket buying committee. For this reason, special emphasis will be given to the buying com— mittee and its relationship to the buying function. The buying committee and its function in supermarket organi- zations remained relatively incognito until the past year, when several studies were undertaken and published. These studies were prompted by the keen desire of people in the food industry, to find out what meaning the buying committee has for those who live by the food business. 32 General information. An indication of whether or not buying committees are performing a useful service, might be shown in the trend in number of such committees. A more recent survey by Super Market Merchandising, reveals that the trend is up over last year. The results were as fol- lows, in answer to the question "Do you have a buying 19 committee?": Size of Company. by Markets "Yes" 1-9 55% 10-29 91 30 or over 86 Although the size of the sample was different in the two instances cited, both surveys represent a cross-section of the supermarket industry, and the results are accurate enough to show a definite increase in the creation of buying committees in the span of one year. The buyer-salesman relationship will be discussed at greater length in Chapter IV, however, brief mention should be made as to the influence of the buying committee on this relationship, as this is particularly disturbing to the seller. There is no mystery regarding the proper approach to the buying committee--the approach is through the buyer. The buyer should have in concise form all the facts necessary 19"The Merchandiser. . .Wizard of Promotion," ep, cit., p. “9. 33 to make the proper presentation to the committee. If this information is lacking, or not organized in proper form, it is usually the seller who suffers. The majority of buying committees meet at least once a week. To meet more than this would prove to be unecon- omical, and to meet less than once a week would handicap that firm's competitive position by not being current with the market. Of the thirty-one chain units interviewed by Michigan State University Food Distribution students, the twenty—nine that reported having buying committees also stated that these committees meet on a weekly basis.20 Buying committees perform many other duties than just ~deciding On whether to accept or reject products. The Super Market Merchandising survey reveals that the following three duties are the primary functions of the buying com- mittee--this data is shown in Chart IX by companies and by the stores theSe companies control. CHART IX WHAT DOES THE BUYING COMMITTEE DOl Duties By Companies By Stores Selects new products and promotions . 9A% 99% Decides store displays 59 57 Decides on special sales 79 80 I 1"Inside the Buying Committee,‘ Super Market Merchan- dising, Vol. 22, No. 2 (February, 1957), 7A. 20New product case studies, op. Cit. Why buying_committees exist. Buying committees are created to pass judgment on new food products, non-food products, dairy products, and drugs; they also reconsider products once handled but discontinued, and items previously turned down. One committee may make the decisions on all - product groups or an entirely different committee may be formed for certain product categories. There is no set pattern on this matter, but the indications are that the larger the organization, the greater the tendency to have more than one committee, or at least a change in some of 21 the personnel on the committee. ”duh” I ' V_Are buying committees really necessary? This ques- tion is often posed by salesmen who are frustrated in their attempts to secure placement of their products. Salesmen sometimes have the attitude that if only they had the buyer to deal with, they could show better sales results; that it is difficult to sell to a group of individuals through a middleman. The very existence of buying committees is proof in itself as to their necessity. To help the salesman and other interested parties to better understand why buying committees exist, the following reasons may be helpful. These reasons are listed in their order of importance as seen by the writer. 21"Inside the Buying Committee," op. cit., p. 74. UL) U1 .4- ,-1. As a result of the formation of the buying com- mittee, final authority in decision-making has been trans- ferred from the buyer to the buying committee. This relieves the buyer of a considerable amount of sales pres- sure which is constantly exerted by the seller. By removing the buying decision from a situation where personal rela- tionships and feelings interfere with good business prac- tices, both seller and buyer benefit. The buyer can relax and be objective in his work, and the seller can do a better job on his sales presentations, knowing that he no longer has to win the popularity contest with the buyer to gain favorable recognition. Both parties can agree on the fact that a better decision can be reached by a committee than by an individual. ,1 J.‘2. A buying committee represents combined thinking. The abilities of trained and experienced personnel are utilized to aid the buyer. Although not always true, it is generally conceded that “two heads are better than one." 3.) As indicated by the composition of some buying committees, they are used as training grounds for store and supervisory personnel. Sitting in on buying committee sessions provides an excellent opportunity for these men to learn how the buying function operates, and will also help these men to more fully realize the need for cooperation between the buying operation at headquarters, and the field operation handled by the store and supervisory personnel. 36 With the tremendous growth of food store operations in recent years, supermarket openators are faced with the acute problem of obtaining top-level managerial staffs. A solution to this problem is so urgently needed, that 125 midwest supermarket operators recently met in Chicago to discuss this matter. While no definite solution was offered, the operators generally agreed that the Circulation of key per- sonnel in the various phases of the business, was essential in order to equip them for more responsible positions. Ex- perience on a buying committee was rated as a vital part of any training program. Although the buying and merchandising of products is the primary function of the buying committee, . operators feel that the training received by committee mem- bers is also of prime importance}:2 This phase of a training program provides for the orderly continuity of the buying operation and the perpetuation of a well-trained, experi— enced buying staff. Mr. Kane, the Los Angeles divisional manager of the second largest food retailer in the industry, Safeway Stores, Incorporated, has this to say in justification for the existence of buying committees: Our committee, which is made up of the supply managers, merchandising manager, division manager, retail oper- ations manager, price maker, advertising manager, and selected district and store managers, makes the deci- sions on whether we sell a product. At Safeway we 22Don Baines, "Getting Top Staff Poses Challenge," Supermarket News, Vol. 7, No. 16 (April 21, 1958), 1. believe it is our primary obligation, as retailers, to give the customer what she wants, not what she thinks she wants. We try to accomplish this Objective through the buying committee. ' Should any controversy develop over the desirability of a particular item, the opinions of the retail oper- ations manager, district managers and store managers prevail. And we give greatest consideration to the opinions ofsiore managers, because they are in the best position to know what the customer wants. I believe this system provides us with an objective appraisal Of each item Offered and permits us to select those items which best fit into our basic policy of service—~quality--price. We have found that any attempt to Circumgent these three basic ingredients results in disaster.‘ As far as Safeway Stores, Incorporated, is concerned, buying committees do not present a handicap when a quick decision is needed on a new item or on a "good deal;" Mr. Kane states that if necessary, their buying organization 24 Such can reach a quick decision in ten minutes, or less. a procedure, if utilized by all supermarket buying operations, would eliminate the main disadvantage of buying committees as seen by salesmen--the inability of the buying committee to act qUickly on an important decision. Composition of buying committees. No two committees are alike in their composition. This statement is supported by the findings of several surveys. The most extensive research in this area was that conducted by Sgper Market Merchandising. This study, among 209 supermarket firms, 23D. B. Kane, "Why Safeway Uses the Buying Committee," Chain Store Age, Vol. 3A, No. 2 (February, 1958), 7A. 2“Ibid. 38 indicates that there is no uniform policy in regards to the composition of buying committees. Personal qualifications of the individual members is of more importance than job titles in determining the committee. The one criterion that is readily apparent, is that these men all hold responsible positions. Chart X shows the results of this survey. . CHART X BUYING COMMITTEE COMPOSITION--SMM SURVEYl Members By Stores Merchandising manager 59% Advertising manager AA Sales manager 30 Branch or division head 23 Purchasing director 21 Over-all department supervisor 21 Over—all department merchandising manager 20 Store supervisor or district manager 20 General or operating manager 17 Executive officer Sales promotion manager Warehouse or transportation superintendent Store manager Accountant Personnel director HMMUOUUQ 1"Inside the Buying Committee," Super Market Merchan— dising, Vol. 22, No. 2 (February, 1957), 7A. The information shown in Chart X1 is based on the 'case studies conducted by the 1957-1958 class of Food Dis- tribution students at Michigan State University. Although the data identifies the firm, the identity of the branch or unit is withheld in respecting the wishes of those surveyed. KL) \0 This survey covers ten leading food Chains and represents thirty-one different branch or unit operations. CHART XI COMPOSITION OF GROCERY BUYING COMMITTEESl Company T2 A B C D E F G H Kroger Unit 1 15 l 1 2 - 1 1 3 6 Unit 2 5 1 - - l l - - 2 Unit 3 5 l 1- l 1 1 - ' - Unit A 8 - 1 l - 1 - 4 1 Unit 5 5 - 1 3 - l - - - Unit 6 A — 1 l - l - - 1 Unit 7 A - l l 1 l - - - Unit 8 A - 1 l - l - - 1 Unit 9 3 - 1 1 - 1 - - - Food Fair Unit 1 6 - 1 5 - - - - - Unit 2 2 - 1 - - l - - - Unit 3 2 - 1- - - l - - - Colonial Stores Unit 1 A - 1 3 - - - - - Unit 2 9 - 1 5 l 1 l - - Unit 3 9 - 1 5 l 1 l - - Unit A 8 1 1 3 - 1 - - 2 Grand Union Unit 1 8 -. 1 1 1 - l l 3 Unit 2 5 l 1 l l - - - l 1New product case studies conducted by the Food Dis- tributionsmudents of Michigan State University, Winter term, 1957-19580 . . 2Key to Code: T--Total members; A--Vice President or Branch Manager; B--Grocery Buyer; C--Assistant Grocery Buyer; D--Merchandising Manager; E--Grocery Merchandiser; F--Advertising Manager; G--Sales Supervisor and/Or District Sales Managers; H--All others. This group includes Assistant Grocery Merchandiser (3), Meat Merchandiser (3), Product Merchandiser (3), Personnel Manager (2), Warehouse Superinten— dent (2), Real Estate Manager (l), Accountant (1), Frozen Food Buyer (1), Dairy Merchandiser 1). CHART XI (Continued) Company T A B C D E F G H Jewel Tea Unit 1 l - l - — - — - - National Tea Unit 1 7 l - l 1 l — 3 - Unit 2 6 l l l l — 1 l - Unit 3 6 - 3 - 1 - - 2 - Unit A 5 l 2 - l - — 1 - First National Unit 1 l - l — - - - - - Safeway Unit 1 6 l l - l - l 2 - Unit 2 6 l l — l l 1 1 - Unit 3 5 1 1 1 - - 1 l - American Stores , Unit 1 5 1 1 1 1 — - l - Unit 2 5 - 1 — 1 - - 3 - Unit 3 A - l 1 l l - - - Stop & Shop Unit 1 9 - 2 A) 1 - - .: - 31 Units Total 172 12 33 A3 17 17 8 25 17 The results of this study Shows that 172 persons who sit on these committees have the following titles or func- tions, listed in order of their occurrence: Assistant Grocery Buyer (A3), Grocery Buyer (33), Sales Supervisor and/or District Sales Managers @5), Merchandising Manager (17), Grocery Merchandiser (17), Vice President or Branch Manager (12), Advertising Manager (8), and All Others (17 41 as indicated on chart). Approximately 5.5 persons would make up the average buying committee for these thirty-one branch operations. Certain trends are apparent as respects the size of buying committees. For example, The Kroger Company decen- tralized their operations in 1956, and as a result many of The Kroger Company branches have discontinued the use of a large buying committee. Of the nine Kroger Company branches shown in Chart XI, only two of the branches are larger than the median size‘for the group as a whole. The reasons for not continuing with the large committee are primarily the cost involved and the relative inefficiency in comparison to the smaller Committee. Smaller committees free key per- sonnel for performance of their primary duties. The smaller committee operates quickly, informally, and more efficiently than the larger buying committee. Since the grocery mer- chandiser and the grocery buyer are directly responsible for the turnover of their merchandise, the majority of The Kroger Company Division Vice Presidents feel that these men and their assistants should be the only members of the grocery buying committee.t’ Each company has what it considers the most economical and efficient type of buying committee. This is due in part to a difference in job assignments, nomenclature, size 25 . New proouct case studies, op. cit. A2 of division, et cetera. Indicative of the desire of super- market and chain store companies to please the customer, so far as their severely limited shelf space allows, is the fact that a majority of the committees have store super- visors, district managers, and in some cases store personnel sit as members Of the buying committee. Buying committee procedure. There have been numerous critical-~and oftentimes amusing--speculations concerning how new products are actually presented to the buying com- mittee. For example, in one recent virulent attack, the food chains were accused of erecting "a Chinese buying wall" around the "mysterious, shadowy, star Chamber" buying com— mittee.26 There is really nothing very mysterious about the manner in which new products are considered; the procedure was virtually the same in all the buying committees which were surveyed by the Michigan State University students.57 After due consideration of the product a democratic vote is taken, and if the majority of the committee members approve, the product is accepted. The procedure is almost as simple as that, although what is meant by ”due consideration" should be clarified. 26Speech by William C. Nigut, resident of the W. C. Nigut Company, Chicago, 111., to the Grocers Manufacturers of America, Inc., convention, November 12, 1957. 2(New products case study, op. cit. '43 The procedure and "due consideration" transpires in this manner. Samples of the new products are passed among the committee members along with such basic information as its cost, selling price, per cent profit, advertising or promotional allowance, deal terms, how packed, competition handling it and in what volume, comparable products-—if any-- presently handled by the chain. This information is obtained from the product information forms which are filled out by the salesman. All the committees in the Michigan State University survey utilized the product information form, consequently, the importance of proper completion and attention to this form by the salesman is readily apparent, if he wishes to effectively communicate to the buying com- mittee. In considering the new product, thorough tests are made either by the committee or by the company home econ- omists. The product is compared for quality, color, appe- tite appeal, consistency, et cetera, side by side with competitive products. Those companies who make use of home economists, will have this department run actual use-tests on certain products such as cake mixes. The product is prepared according to the directions on the package to determine its convenience, ease—offuse and finished quality. The findings are then given to the buying committee and the f\ ’J8 .— data will aid the members in arriving at their decision. 28Ibid. * AA Test stores. Oftentimes a new item, which lacked approval by the majority of the committee members, still has an opportunity of being selected. This situation occurs when certain members have strong convictions concerning the merits of the product, and even though they are in the minority, their faith sways the committee into agreeing to test the product in a limited number of stores. The type of test stores used varies from company to company. The Michigan State University survey indicated that eighty per cent of the committees studied, made use of test stores to some degree. Some companies have designated a test store group where product tests are regularly con- ducted, while in other companies, the buying committees select the stores at the time they agree CH1 the test.29 Advertising and the buying committee. How do the buying committees react to the advertising deta which is presented in support of the new product ‘Mr. William Nigut, Marketing and Trade Relations Counsel, recently sat in on buying committee meetings of twelve important chain store and supermarket companies. From his observations, Mr. Nigut feels that for food manufacturers to be reasonably assured that their product advertising is favorably considered by buying committees, the product advertising should be pre- 3 I sented in terms of the buyer's interest.3// J, 291bid. 33Frank Cogan, "Buying Committees..., Vol. 6, NO. A (April, 1958), 2A. " Food Business, Mr. Nigut continues by saying, Far too many product "pitches" are built entirely around product advertising. Buyers have become immune and indifferent to such presentations. Since advertising agencies [who Paul Willis, President, Grocers Manufacturers of America, Inc., has Charged with being "too glib and patronizing toward the grocery trade"] have the greatest stake in selling advertising, manufacturers might well urge their agencies to turn their motivational researchers loose to get some bench marks for the more effective interpretation and under- standing of advertising.31 In the twelve committee meetings audited by Mr. Nigut, A96 products were considered, and of this number there were only forty-four products about which the committee asked questions concerning the advertising support. By actual count, product advertising campaigns were primarily respon- sible for favorable decisions on only seventeen products.32 I The real problem for the manufacturer in utilizing advertising dollars is to effectively translate their adver- tising programs into the buyer‘s self interest. Too many 1 sales pitches are "canned' in that the advertising program is not presented on an individual basis. The manufacturer tends to place too much emphasis on the number of dollars spent and not enough emphasis on gee they are spent in terms of the individual customer. Buying committees believe in the power of advertising to sell merchandise and they want manufacturers to back their products with effective adver- tising dollars-~effective as concerns their own particular 31Ibid., p. 25. 3ESpeech by William C. Nigut, op. cit. A6 operation. One of the greatest challenges and needs which faces the manufacturers of today, is to increase the pro- ductivity of their advertising dollar in such a way as to improve their batting average with buying committees. Transcript of a Buying Committee Session Introduction. To help assess the phenomenon of the buying committee, a tape recording was obtained of a typical Chain store buying Committee in action. This recording was made by the J. Walter Thompson Advertising Agency of Chicago, Illinois, for the purposes of aiding their clients to better analyze the chain store buying committee.33 This particular chain store committee is large, con- sisting of the following executives: Branch Manager, Merchandise Manager, Advertising Manager, Chief Accountant, Personnel Manager,and four District Managers. The transcript of the tape recording was presented in its entirety in a bound volume of ninety-eight type- written pages, by the advertising agency to its Clients. For purposes of this thesis, only part of this recording will be presented and because of the length of this material, the information has been placed in Appendix B. The tape recording of this buying session was made on June 12, 1957, at the headquarters of the chain. Permission 33Retail Grocery Chain Buying Committee Deliberations (Chicago, Illinois: J. Walter Thompson Advertising Agency, Research Department, October, 1957). A7 to record this session was granted the J. Walter Thompson Agency upon agreement that anonymity of the chain would be maintained. Accordingly, all references to the chain, the area in which it operates, and to the brand names of the items under discussion, have been deleted from the trans- cript. In spite of this minor limitation, the basic thoughts and ideas of the committee are readily under- standable. .The actual "workings" of this committee in action are valuable, in that the outsider can better vis- ualize buying committee procedure; can better ascertain what type of information is of interest to the committee members. Thirteen new items were presented at this buying committee meeting. Seven items were accepted and six items were rejected by the committee. During the course of the meeting, six items were discontinued which resulted in a net gain of one item that this chain would be handling in their stores. The recordings chosen for inclusion in Appendix B are two items which were accepted (a cheese item and a prune Juice item), and two items which were rejected (a liquid detergent and a candy item). Analysis of committee action. Why did this committee act as they did in arriving at their decisions on these four products? The transcript, as shown in Appendix B, indicates that the followingfactors were of prime importance to the committee in forming their decisions on these items. 48 Cheese item—~accepted. Favorable factors were: .a. Manufacturer will furnish demonstrators and samples.. b. Product sale guaranteed 133 per cent. c. Cheese in cubed form-~new convenience item. d. New merchandisifmggimmicks-toothpicks in package. e. Excellent quality of product. Prune Juice item-~accepted. Favorable factors were: a. A new size of container. b. More than average markup on product. Liquid detergent item--rejected. Factors unfavorable were: a. Advertising effectiveness not clear to committee. b. Product container not reliable. c. Nothing to discontinue in present line to make room for an additional detergent. d. Incomplete advertising program. Only part of chain territory would be covered. e. Poor past performance on similar type product. Root beer candy item--rejected. Factors unfavorable were: a. Item would have to sell on its own merit--no advertising or promotional support by manu- facturer. b. Item did not fill a need for the majority of the stores. CHAPTER III CASE STUDIES OF BUYING OPGANIZATIONS General Information The material presented in this chapter is based on case studies of three different types of buying organi- zations, namely, chain, voluntary, and cooperative buying organizations. The relative importance of these three groups in terms of total grocery store sales, is shown in ‘ Chart XII. Since the voluntary and cooperative groups combined represent the most important single bloc in United States food retailing today, the case studies of these two groups are of special interest. The information presented herein, was obtained by personal interview between the writer and the officials of the three food companies being interviewed. In each case, the mechanics of the buying function will be presented in terms of what happens to a new product from the time the item has been presented to the buyer, and concluding with the notification to the salesman of the acceptance or re- Jection of the item. The purpose in presenting these case studies is to obtain a first hand knowledge of buying procedure, whereby salesmen can better plan effective sales presentations. \n L) CHART XII GROWTH OF AFFILIATEDl INDEPENDENT RETAILERS2 Per Cent of Total United States Grocery Store Sales Chains 37%. 36% 36% 37% 38% Un-Affiliated 25% 19% 18% Independents 3“% 31% AA” AA Affiliated _ y 39% p - % Independents 29% 33” 19u7 1950 1953 1956 1957 1Members of voluntary and cooperative groups. 2Robert W. Mueller, ”1957 Grocery Store Sales. . ., Progressive Grocer, Vol. 37, No. A (April, 1958), 71. By knowing how these three different types of retail food organizations operate their buying departments, sales efforts can be tailored to meet the needs of the type of firm being solicited. The three retail food firms interviewed are head- quartered in Milwaukee, Wisconsin and operate or supply stores in principally the same area. According to the Milwaukee Journal's 1958 Consumer Analysis, these three firms, National Foods Stores, Godfrey Company (I.G.A. Stores and Sentry Food Stores), and Roundy's (Kohl's and Red Bell Stores), enjoy approximately the same degree of consumer acceptance or preference of the people in the Greater Milwaukee market.3u These operations are similar in size and volume, consequently they are suitable for com- parison purposes as outlined. Chain Buying Organization National Food Stores, Inc., Milwaukee, Wisconsin, is a branch unit of the National Tea Company, operating sixty— five stores in the State of Wisconsin. The following infor- mation was obtained by personal interview with Mr. Howard Larson.35 National Food Stores, Inc., provides their own product information forms for use by the salesmen, a copy of which is shown in Appendix A. This form is pre-punched for filing in a loose leaf binder which the buyer maintains as a per- manent record; this is done regardless of whether the item is accepted or rejected. The importance of the salesman in preparing a ”good" product information presentation was stressed by Mr. Larson. Oftentimes, National Food Stores, Inc., will reject an item because of lack of data con- cerning the product. u 3 The 1958 Milwaukee Journal Consumer Analysis of the Greater Milwaukee Market, Thirtyéfifth Annual Report (Milwaukee, Wisconsin: -The Journal Company, 1958), p. 21. 35Personal interview with Mr. H. W. Larson, Head Buyer for National Food Stores, Inc., Milwaukee, Wisconsin, March 22,1958. 52 Buying appointments are made with the individual buyers at National Fgod Stores, Inc., on a ”first come-- first in" basis, on the designated buying days. (Buying days at National Food Stores, Inc., are established for all day Tuesdays and Thursdays and for Wednesday forenoon.) On arrival at the buying headquarters the salesman completes a sales call slip, which helps the buyer to expedite the sales interviews. This method of announcement is very ef- fective in that the salesman must list the reason for his sales call; this eliminates a considerable amount of unnecessary sales calls. A copy of this sales slip is shown below. NATIONAL FOOD STORES, INC. Calling Date Time of Arrival Callers Name Representing Would like to see For the following reason No time limit is set for the sales interview, although Mr. Larson estimated that the average sales call consumed fifteen minutes. The salesman usually presents samples, advertising brochures, success stories, et cetera, to 53 supplement the product information form. Mr. Larson stressed that such material should be as concise as possible and above all relevant to their operation. After the product has been presented, the normal procedure is for the new item to be presented at the buying committee meeting which is held every Friday morning. Exceptions to this procedure are made in the event that a time element is a factor in procuring a cer- tain item. When this occurs, the buyer handling the product calls an informal buying committee session and an immediate decision can-be made on whether or not to handle the product. Mr. Larson estimated that less than twenty-five per cent of the items presented to him are screened before reaching the buying committee. This is an extremely low percentage compared to the seventy-five per cent of initial screen outs conducted by the average buyer as indicated in a previous chapter. The philosophy of this buying unit is ‘ consequently, their that "two heads are better than one,‘ policy is for their buying committee to review as many items as practical. There is only one buying committee in this unit of the National Tea Company. This committee considers all new items including frozen foods, groceries, and dairy pro- ducts. The items are usually presented to the committee by the buyer who received the initial presentation from the salesman. The buyer's presentation to the committee is a shorter version of the salesman's presentation, plus SA -additional information which was obtained by the buyer regarding movement of similar products, past sales records, et cetera. When asked what information the buying committee desires in considering a new item, Mr. Larson answered that they depend primarily on the product information form and the supplementary information provided by the buyer. He states that the following factors were of major importance to the buying committee in arriving at a decision regarding the handling of a new item: cost, gross profit, suggested retail price, what type of allowances, distribution in the market, guaranteed sale, price guarantee, like items already in stock, movement of these items, and advertising plans. Mr. Larson stated that he used these same criteria in his initial screenings. Most items that are accepted by the buying committee of National Food Stores, Inc., are placed on a probationary basis in that the item must "earn its shelf space." National prefers this procedure rather than the extensive use of test stores to prove the merit of a product. At present, they feel that nothing short of branch-wide distribution can give a fair test to a new product. In communicating the decision of the buying committee to the salesman, the procedure at National Food Stores, Inc. has been for the buyer to call the salesman immediately after the buying committee meeting. Arrangements are then 55 made for a subsequent meeting between the buyer and sales- man at which time the salesman obtains tflwe required pur- chase order number, amount of the order, and the necessary shipping instructions. Out of town sales representatives are usually notified by mail of the acceptance of a product. Salesmen are not notified of items that are rejected. Voluntary Buying Organization I The Godfrey Company of Milwaukee, Wisconsin, is a member of the Independent Grocers' Alliance, and as such, sponsors a group of retailers operating within a one hundred mile radius of Milwaukee. The following information was obtained by personal interview with Mr. B. E. Browne, Jr.36 The Godfrey Company operation is unique in that it carries over some of the mechanical functions of the old- line wholesale grocer, but concentrates on research and development at the retail level. They have expanded lines to include all products sold in modern, one-stop supermarkets, with the exception of fluid milk and a few less-important lines. . As a group sponsor, the Godfrey Company has gained prestige for its retailer services. The company is dedi- cated to growth through sponsorship of a voluntary group of \ 36Personal interview with Mr. R. E. Browne, Jr., Assistant Grocery Buyer for the Godfrey Company, Milwaukee, Wisconsin, March 21, 1958. 56 qualified retailers and through the development of its sub- sidiary, Sentry Markets, Incorporated. At present, Godfrey supplies seven Sentry markets plus approximately 100 Inde- pendent Grocers' Alliance (I.G.A.) members. Although product information forms are supplied by the Godfrey Company (see copy in Exhibit A), they will accept the manufacturer's new item form providing the information is complete. The buying hours at the Godfrey Company are all day Tuesday and Wednesday, and Thursday forenoon--there are no exceptions. Salesmen are expected to respect the established buying hours and in return the salesmen are accorded ample selling time during their sales interview. The Godfrey Company system in interviewing sales- men is unique in that on arrival at the buying office, each salesman procures a number from a centrally located board which lists the name of each buyer. There are a series of numbers-under each buyer's name, color coded so that they can be easily recognized and kept in proper sequence by the receptionist who maintains the "sales interview control board." The Godfrey Company buyers request that salesmen present only the product information form and the necessary samples. Mr. Browne stressed the importance of providing sufficient samples, as they conduct several "cuttings" of the merchandise during the buying process. The Godfrey Company maintains a sample and cutting room adjacent to the buying offices which affords the salesman an excellent opportunity to visually show the buyer the quality of his product. The importance of the salesman in knowing how to "cut" merchandise is readily apparent; Mr. Browne stated that the inability of many salesmen to master this technique resulted in their product not being accepted. Mr. Browne stated that the individual buyers screened out approximately eighty per cent of the product presen- tations. The policy at the Godfrey Company is that the individual buyer is better capable than anyone else in con- sidering the merits of products with which he is in every "con— day contact. The buying committee acts more as a firming" body rather than a "decision-making" body. This does not intimate that a product which reaches the buying committee is assured of acceptance but that the product does have better than a "50—53 chance” in being accepted and thereby gaining valuable warehouse space. The criteria used in screening new products by Mr. Browne are very definite and are always used in gauging the merits of a new product. Every product accepted does not necessarily have to meet all of these qualifications, as any given product may have a few strong qualities which will offset its weaker points in other categories. The criteria used by Mr. Browne are as follows: l.~ Need for the new product at the retail level. Is the market crowded with comparable items? \T] 13. ll" 58 Profit. The new product must yield a profit equal to similar items. Quality of the new product. This must be unques- tionably good. Package. The product must sell itself and be easy to handle on retail shelving. Case Pack. This must reflect a reasonable case quantity for rapid retail turnover. Efficient Casing. Cases with poor identification -markings and weak structure complicate warehousing. Promotion and Advertising. These must appear adequate to make an impact on the consumer. Special Discounts and Allowances. These should be available to pass on to the retailers to pay for pioneering the new product. Retail Price Bracket. The item must be compe- titive to similar products and represent a good yalug to the consumer. Evaluation. The supplier's ability to sell the new product must be evaluated. The integrity and reputation of the vendor are important factors. Guaranteed Sale: This is required on many items which are of a seasonable nature. The Godfrey Company has very limited warehouse space and can- not afford to carry an item from one season to the next. 59 A new product rejected by the Godfrey Company will not be reconsidered for at least sixty days. However, if there is a change in product or price, or a new promotion or advertising program is arranged, the product may be im- mediately represented. The buying committee of the Godfrey Company consists of three persons, namely, the Head Buyer (Director of Grocery Purchasing), the Assistant Grocery Buyer, and the Merchandising Director. These three individuals do all the buying at the Godfrey Company, and each man is responsible for presenting at the buying committee meeting the items he has initially approved. Samples are again ”cut" at the buying committee meeting and the buyer making the presen- tation "acts" the part of the salesman. The buying committee does not discontinue any item that is currently being stocked. This responsibility rests with the buyer and the decision to discontinue an item is his alone. Mr. Browne estimates that for every ten items they accept, eight items are discontinued. All items are constantly reviewed in light of the established criteria and their performance record; items are not discontinued merely because new items are being added-~these processes are separate functions at the Godfrey Company. Since this is a voluntary group organization, there is no forced distribution on new items as is the usual procedure in chain operations, consequently, merely 60 (Dbtaining placement of the item in the warehouse does not eassure distribution of the product to the member stores. A lgist of new items is mailed each week by the grocery depart- rneant to every retailer, and if the item is of particular jJnIportance, notification will be made in the weekly mer- c:P1andising bulletin as an advertising suggestion. Under the voluntary type of food distribution, retail sseales effort by manufacturers representatives is essential j;r1 obtaining initial placement of the new product. Even tzrlough the item is placed in the wholesaler's catalogue or E>Ire-printed order form, retail sales effort is needed to t>xringtflmeproduct to the attention of the retailer. The C}c>dfrey Company prefers that salesmen restrict their calls car) their member stores to introducing new products, and to IDI‘omotional effort on items currently carried by the ware- 11c>use. They do not like to have new items presented to triem through retail members, although they do consider items triat are requested by their member stores. New items pre- Seented by this procedure must represent a consumer demand fcpr the product and not merely an attempt by a salesman to Seacure placement through the "back door," in this instance, a-lnember store. Formal communication on buying decisions is made to sEilesmen by use of a form letter which indicates acceptance or~ rejection on every item presented. Committee action is inunediately communicated to the salesmen after the buying cOrmmittee meeting which is held every Friday afternoon. 61 Mr. Browne indicated that the Godfrey Company welcomes any suggestions whereby sales relations can be improved. The officials of the Godfrey Company frequently attend C}1?ocers Manufacturers' Representative (GMR) meetings in 'Milwaukee which further enhances the excellent supplier relations that they enjoy. Each year during the Christmas kic>liday season, the Godfrey Company has an “open house" V-IhiCh includes cocktails and buffet dinner for all sales- men and brokers in the Milwaukee market. Salesmen look forward to their invitation to this event; Mr. Browne feels that the Godfrey Company has greatly strengthened their trade relations by staging this annual social event. _Ooperative Buying Organization This case study is drawn from one of the leading Cooperatives in the country; Roundy's, Inc., Milwaukee, Wisconsin. In addition to supplying 1433 member stores in Southern Wisconsin, this wholesaler also supplies two strong local chains in metropolitan Milwaukee (Kohl's and Halan's). The material for this study was obtained through a personal interview with Mr. E. F. Ihlenfeld, Marketing Vice- President of Roundy's, Inc. This study will be more detailed than the previous two cases in that data was Obtained on actual sales presentations of a product which was accepted, and on a product which was rejected.37 \ 37Personal interview with Mr. E. F. Ihlenfeld, Vice- firesident in charge of Marketing for Roundy‘s, Inc., 1lwaukee, Wisconsin, December 21, 1957. Product presentation-:product accepted. On the fYDllowing page is the product information form used by .Fhsundy's, Inc. The item under consideration, as presented CDII the form, is Proctor & Gamble's Zest Deodorant Beauty I321r. The use of Roundy's, Inc., product information form 1.53 mandatory for all salesmen; items will not be considered 'Llrjless so presented—-manufacturers' new item forms are not Eiczceptable. There are three buyers at Roundy's, Inc.; the Zest rbzresentation was made to the buyer handling this type of nieerchandise. All sales calls are made by appointment only t>§7 notifying the receptionist at least one day prior to the eag>pointment. Each salesman is allotted fifteen minutes to Hialke his presentation. Several samples of both sizes of ZZeast soap were left with the buyer. Brochures were shown of the scheduled promotional axztivity on Zest soap which included reprints of advertising tkiat had already been run and of ads that were yet to break. TYiese one-half page black and white ads were appearing in tlie Milwaugee Journal's Thursday Food Section. A series of lell page color ads were scheduled to appear in Parade, tflle Sunday supplement of the Milwaukee Journal. In addition, the promotional plans included a heavy Cillt‘ect mail sampling of Zest soap to the consumers home. TIME free samples would carry a coupon entitling the house? wiJFe to a discount of eight cents on her purchase of two 63 PRODUCT INFORMATION PORNl EEO ALL SALES REPRESENTATIVES: This form is made available to you so that you may provide us vmith the complete details Concerning your product. Use a :seaparate form for each product. Make sure all information is complete and accurate. :L - NAME OF PRODUCT ZEST DEODORANT BEAUTY BAR 22 - MFG'D BY Proctor & Gamble Distri Co. ':3.. ADDRESS 303 NET Building City & State . Milwaukee, Wisc. A+.. REPRESENTED BY J. E. Lyons & L. E. Madson 55.. ADDRESS 2732 N. Teutonia Ave., Milw. 6, Wisc. City and State‘ MILWAUKEE,_WISC. 6 - TELEPHONE SUnset 6—55814 V '7 - PACK & SIZE 103 Bath & 1AA Complexion fl 8» - PRICE per doz. 99- PRICE List 17.63 per case. 12>. TRADE DISCOUNT "'None *1 11.. CASH DISCOUNT. “2% 13 days 122. WEIGHT 6A# ' per case 13.. F.O.B. POINT Freight prepaid 1L1. FREIGHT COST per case 15. FREIGHT RATE fi_ 16. PRICE PROTECTION POLICY Yes Reg. No Bath-a/AI 17- SUGGESTED RETAIL PRICE Complexion- a/29 18¢ ‘ FAIR TRADED? V Yes No x a, \ fl a 1Copy of original; however, original was contained on one page . £19. £21.. 2222. 2223. 224+ 263 27' 6A SALE GUARANTEED? YES NO x FREE GOODS No Cooperative ADVERTISING ALLOWANCE Standard P&G-2o¢zgs. LABEL ALLOWANCE Reg. SWELL ALLOWANCE SPECIAL PROMOTIONS Yes X NO A. Newspapers 1/2 page black & white le. Jr. B. Radio' C. Television All P&G TV Programs PRESENT DISTRIBUTION IN THIS AREA A & P, Halans, IGA, Sentry National Tea, Krambo, Kohl's RETAIL COVERAGE Will cover all accounts ’PRODUCT LIABILITY INSURANCE? Yes “QESNERAL INFORMATION: Saturation TV Advertising in all P&G programs. 1/2 page black & white ads in Milw. Journal--print attached. Full page color ad to appear in Parade as per attached Free samples to consumers home-~8 E off coupon offer in each bar. A% more profit than regular items Retail coverage to all customers 65 ROUNDY'S--—REVERSE SIDE OF PRODUCT INFORMATION FORM ATTENTION SALES REPRESENTATIVE: PLEASE DO NOT FILL IN INFORMATION ON THIS PAGE! Av.Monthly Item Presented Pack Size Cost Retail Disc, Allow. Case ' Movement Comparable Items COMMITTEE ACTION DECISION: Approved Disapproved Hold 66 bars of Zest soap. All of the regular Proctor & Gamble television programs were to carry a saturation schedule on Zest soap. Special emphasis was made by the salesman in his product presentation as to the per cent of profit which Zest soap was currently returning at retail level. Zest soaps, at the current retail selling prices, were returning four per cent more profit on selling price than the regular soap items. The salesman also said that Zest soap had become the number one soap in other markets where the product had been introduced under similar conditions. Presentation was made on both the bath and complexion sizes of Zest soap. Accompanying the regular Proctor & Gamble salesman on thesales call, was his regional manager, and both men participated in the actual presentation. This is a common practice when major promotions, which involve a considerable local investment by the manufacturer, are being introduced to key customers. Special emphasis was also given by the salesmen to the distribution of Zest in the Milwaukee market. Roundy's, Inc., seldom takes on a new item unless that product already has distribution and proven sales in their market. Careful analysis of distribution is very important to the buyer and should be stressed in every presentation. Analysis should be accurate as distribution is always checked by field supervisors before a decision is made to accept an 67 item. Since this organization does not have salesmen calling on the trade to introduce new items, they rely on the item to sell itself coupled with the aid of the manufacturers' sales staff and promotions. Screening process. Roundy's, Inc., buyers accept sales calls on Tuesdays and Thursdays from 9:00 A.M. to 4:00 P.M., and on Wednesdays from 9:00 A.M. until 12 Noon. On Friday of the week of the sales presentations, the buyer performs his initial screening of the items presented. The buyer's first step is to have his secretary complete the reverse side of the sales presentation form (see page 65). This data gives the buyer all the information on comparable items currently in stock, if any, to better help him in his initial screening. The buyer's next step is to compile a list of all the items that have passed his initial screening. This list is incorporated with similar lists from the other buying offices, and consolidated into a master list. A copy of one of these master lists, whichvas considered at a recent Roundy's, Inc., buying committee meeting, is found on the following page. Results of committee action are registered on this list in columns marked'"Accept, Refused, or Recon- sider." At the close of business on Friday, the master list is mailed to the members of the buying committee so that they will have an opportunitytn analyze and consider 68 NEW ITEMS--MERCHANDISING MEETING1 =4 m m . ACCEPT REFUSED RECONSIDER Kaiser Aluminum Foil, 2A/2o', 7" wide XX 24/25', Standard XX 24/25',.Economy,Heavy Duty» XX zu/l-l/u 1b. No-Trik Cleaner xx AS/BO count Northern Colored Luncheon Napkins XX 2A/A oz. Beechnut Orange Juice-- Apple Juice XX zu/A-l/A oz. Heinz Juices--App1e, Apple-Apricot,App1e Pineapple, Apple-Grape, Apple-Prune XX 2A/7-l/2 oz. Heinz Strained Vegetables & Ham XX 24/7-1/2 oz. Heinz Junior Vegetables & Ham XX A8/3 oz. Kool-Sip Lemon Drink XX 2A/6 ozl Butternut Instant Coffee--15¢ Intro. offer XX 24/2 oz. Butternut Instant Coffee--5¢ Intro. offer XX 48/8 oz. Comstock Applesauce XX 96/6 oz. Hunt's Tomato Paste XX ‘— 12/1 lb. Buster Cashew Tidbits- Splits XX 12/1 lb.(Twin Pack) Buster Split Virginia Peanuts XX 12/8 oz. Kraft Low-Calorie Dressing XX 12/12 oz. Milani '1890' Dressing xx 12/12 oz. Milani Italian Dressing XX 12/8 oz. Doxsee Clam Juice XX 12/8 oz; Doxsee Whole Clams XX ( 1Copy of original; however, original was contained on one page. 69 NEW ITEMS--MERCHANDISING MEETING (Continued) c . m: ACCEPT REFUSED RECONSIDER 24/8 oz. Italian Chef Pizza Sauce XX 24/15 oz. Oval Sardines in Tomato Sauce-~Maine Will order Calif.Sardines XX 12/8 oz. Beechnut Baby Cereals-— 5 items in 8 oz.cartons XX 12/16 oz. Swansdown Lemon Chip Angel Food Cake Mix 6% off deal - XX 6/2-pack Pillsbury Loaf Size Cake Mix-~3 flavors XX 12/A oz. Betty Crocker Meringue Mix XX the new items in light of their own retail operations. The following Monday, the buying committee meets at the main office to discuss the items under consideration. The criteria used by the buyer in the initial screening are for the most part of a general nature. Roundy's, Inc., feels that for every new item added, an item must be dis- continued; consequently, the new item must have strong Lnitial merchandising potential to be able to displace a competitive item. Quality is of 233mg importance to the buyer, as Roundy's, Inc., feels that this criteria is more important today than ever before. They seldom buy '"price" merchandise. Other important criteria used are competitive pricing, attractive packaging, advertising and merchandising 70 support. Merchandising is especially important to Roundy's, Inc., as they want to know exactly how much sales effort the manufacturer or broker salesmen will.put behind the new product in actual retail calls to their member stores. If an item does not pass the initial screening, the buyer informs the salesman on his next call, or he is notified by the buyer's secretary. This is done by tele- phone, if the salesman has a local address. If the new item passes the initial screening, he is notified by form letter what action was taken-by the buying committee. This form letter is shown on the following page, the contents of which indicate to the salesman whether the item was accepted, rejected, or action postponed. An item that has been rejected, either initially or by the buying committee, can be presented again at a later date providing the presentation has been modified. The most common changes in this situation are in the market distribution of the product, advertising, or merchandising plans, and special added incentive promotions. Buying committee—-composition. At the present time, Roundy's, Inc., has only one buying committee, although in the near future they plan on having separate buying com- mittees for produce and for meats. The present committee consists of five retail supermarket operators, headquarters' buyers, and merchandising managers. At present, there are four buyers and three merchandising managers which makes a total of twelve men on the Roundy's, Inc., buying committee. 71 Wisconsin's First Family of Fo ds ROUNDY'S, INC. Mailing Address 11300VL Burleigh St. P.O.Box A73 Wauwatosa 10, Wis. Milwaukee 1, Wis. Phone GL.3-82OO Dear Sir: At our last merchandising meeting, we considered your submitted items: The item was accepted and an order will be forthcoming. The item was rejected. We will reconsider this item within the next... 30 days. 60 days. We appreciate the submission of the samples and expect that you will continue to keep us appraised of items which you feel will be of value to our member stores. Yours very truly, ROUNDY'S, INC. C.E.Johnson/s/ C. E. Johnson CEJ;m5f Director of Purchases OWNED BY WISCONSIN'S LEADING FOOD MERCHANTS 72 The five retail supermarket operators serve on the committee for a period of approximately one year. Two of these members usually repeat for another year so that this portion of the buying committee is not entirely new each year. Those operators who have a stronger financial inter- est in the company, are usually the members on the committee. The merchandising managers on the committee are from the advertising, promotion, and marketing departments. In the opinion of Mr. Ihlenfeld, the Roundy's, Inc., buying com- mittee is well balanced from the standpoint of retail merchant representation and headquarter personnel. The buying committee meets every Monday afternoon for approximately three hours.. In addition to considering new items, this committee also determines acceptable retail prices on their private label merchandise. The buyer who received the original presentation by the salesman, intro- duces the product to the buying committee. According to Mr. Ihlenfeld, an item that is properly conceived, properly tested, and properly marketed in the consumer's interest, will be accepted by this committee. These are the general points which come under critical analysis by the committee members. Since the master list of new products under consid- eration was analyzed by each committeeman prior to the meeting, he already has some fairly fixed ideas concerning the merit of the product. This shortens considerably the 73 discussion on each item and also tends to diminish the degree of bias which may be present in the buyer's presen- tation to the committee. Zest was accepted primarily because of the powerful promotional activity behind the product. The item was profitable to handle at present retail market prices, and promised a high rate of turnover. These facts were checked prior to the meeting by a member of the merchandising staff, who also conducted a survey on distribution and shelf space allotment devoted to this product by other retailers in the market. Communication of buyinggcommittee decision. A formal letter of acceptance, as shown on page 71, was mailed to the salesman who made the Zest presentation. The letter, in this instance, was only by way of confirmation as the salesman was notified by telephone the following day. The buying committee felt an urgency to have the order placed as soon as possible. Initial communication to the member stores of the addition of this new item to the pre-printed order form, was announced through Roundy's Reporter. Members stores of the cooperative receive this publication monthly, which ‘_outlines the merchandising plans for the month, items to be discontinued, and new items to be warehoused. In announcing the addition of Zest to the member stores, labels of both sizes of Zest soap were included in the 7A Reporter. This is the usual procedure when the labels are made available by the manufacturer and is a very effective method in calling the retailer's attention to the new pro- duct. - The member stores are, of course, free to order what merchandise they desire, in this instance, they may or may not order Zest. Outside of the monthly Roundy's Reporter, and the weekly order form and price change bulletin which is mailed to each customer, there is no "selling" by head- quarters to member stores. Roundy's, Inc., has five retail supervisors who act in a service and merchandising capacity only. Under this type of retail supervision, a new item may succeed or fail depending on the retail effort by the manufacturer or broker salesmen. Once the seller has succeeded in placing a new item with the Roundy's, Inc., organization, their big job is to personally secure place- ment with the cooperative member{ Proctor & Gamble salesmen followed closely on this promotion and succeeded in obtaining almost a 100 per cent placement with Roundy's, Inc., cooperative stores. This insured permanent stocking of Zest by Roundy's, Inc., as long as favorable stock turnover was maintained. Product presentation-sproduct rejected. A recent item considered by the Roundy's, Inc., buying committee, was a package deal on Comstock Apple Thins. Data was not Obtainable on this presentation other than that which was actually presented at the buying committee meeting. 75 The buyer presented the product, just as in the case of the item accepted, from the new product form prepared by the salesman. This item was packed 24/16 oz. at a delivered cost of 30.4 cents per unit. The buyer pointed out that a thirty-nine cent retail would return a markup of 22.1 per cent. The package deal included a can of apples, crumb topping, and crust, enclosed in a free baking pan. Along with the presentation, the buyer produced a pie ready to eat, made from the pie deal. Four of the members of the committee definitely did not like the taste of the pie, while not one of the members admitted that they liked the product. On taste appeal alone this product would have been rejected, also several members of the committee felt that the pie was too small. Another reason forthe rejection of this particular item, was the lack of advertising and sales promotion behind the product. The only sales promotion gimmick was the free pan enclosed with the deal,'and the committee felt that this would not be enough to promote the item as this gimmick had been used before. General information. Roundy's, Inc., arranges, in some instances, to check a new item in a limited number of test stores, prior to a final decision by the buying com- mittee. These stores are usually selected from the stores which are operated by the retail members of the buying com- mittee. 76 Almost all items are initially presented by the vendor, although occasionally the buyer may call the vendor con- cerning a certain item. Member stores also request certain items but such requests are not given too much heed unless they become numerous. A record is kept of store requests of new items by the buying office--if the records show con- tinued requests for a certain item, the product will be considered. Roundy's, Inc., buyers are offered approximately 100 new items every month. Approximately forty of these items are screened out by the buyers before they reach the buying committee. An average of ten items are accepted each month while fifty items are rejected by the buying committee. For every item accepted, Roundy's Inc., attempts to have an item discontinued. This would mean an average of ten items per month would be discontinued. In actual practice, how- ever, Mr. Ihlenfeld states that they have discontinued from five to ten items per month but that it is their intention to match each item accepted with an item discontinued. New products are compared with known quality items that Roundy's, Inc., is already handling as one method of quality control. Periodically, samples are "cut" to insure that manufacturers are shipping the quality of merchandise as originally sold. These precautions are taken primarily with packers who are not regular suppliers of Roundy's, Inc. CHAPTER IV SALESMANSHIP Introduction What prompts an executive of a leading food chain to state, "The art of salesmanship is nine parts dead, and the science of advertising and promotion is coasting on gim- micks and giveaways to a point where good merchandising and marketing tactics are too often forgotten”?38 This man is speaking from experience and his statement should cause manufacturers to review the efficiency and techniques of their sales and marketing departments. This chapter will be devoted to the art of salesman- ship and its application in dealing with the modern super- market buying function. An attempt will be made to answer such questions as: What are the basic requirements needed for successful salesmanship? What type of salesmanship is needed to achieve a satisfactory buyer-salesman relation- ship? Does the existence of the buying committee reduce the sales call to a mechanical operation, an operation where the quality and finesse of salesmanship is no longer essential? 38Don Parsons, "Determine the Basic Desires of Cus- tomers and Then Meet Them," Weekly Digest, Vol. 59, No. 20 (May 17, 1958), lo. 78 Sales managers are recognizing that high pressure salesmanship has about ended in the distributing of food. This is due in part to the advent of the buying committee and to the realization that inducing a retailer to buy a new food product, or stock another non—food line, is wasted effort unleSs that item moves in a profitable volume to the consumer. The successful salesmen of packers and manufacturers are those who have developed the confidence among buyers that what they offer will sell. ‘The successful territorial brokers are those who have established similar standing with chains, voluntary chains, retailer-coperatives and supermarkets where their merchandising men are working. Too many food processdrs are using "easy selling" methods. The most prevalent form is "buying business" with large promotional allowances, without following through to see that this money is actually used in promoting the larger sales that will be mutually profitable. Anybody can do the simplest form of "easy Selling"--cutting prices to obtain prompt shipping orders. Rather than relying on "easy selling" methods, the manufacturer should place emphasis on obtaining, training, and maintaining a competent and qualified sales force. In trying to better understand the goals of the modern salesman, Norman Wade, sales management consultant, makes the statement, 79 Today's sales recruit is of a new generation, and the emphasis should be put on the word new. His ideals are new, in the sense of being diffEFEnt; he will be loyal to an ideal Only after he is convinced of the value to him of the ideal.39 Salesmen used to emphasize wealth, fame, and success, whereas, today security and adjustment are primary goals. What type of salesmen should management strive to obtain? If the goals of the new salesmen are security and adjustment,-how can they be accomplished and at the same time a Satisfactory service be rendered to the employer? The answer is--to achieve the status of a professional salesman. The Professional Salesman Basic requirements for a professional salesman. We often hear of a person having a ”professional attitude" or "professional conduct." These terms are used in reference to the characteristics of the individual-—a list of these can be outlined for the salesman in helping to define his true professional status. There is no place for the "peddler" in the sales field today. He should think of himself as a professional and also act like a professional. Here are some of the characteristics of the professional salesman.)4O 39C. Norman Wade, "Why Today's Sales Recruits Are Different," Sales Management, Vol. 79, No. 8 (September 20, 1957), 120. quaterial based on notes taken by the writer at an advanced sales training course‘conducted by E.A.Allen, Per- sonnel Director, Libby, McNeill & Libby, Chicago, Illinois, April 15-27, 1957. 80 l. The professional salesman does not require close supervision or direction. He plans his own activities and directsrimself. Costs run high when salesmen have to be constantly supervised. 2. The professional salesman does not regard himself as an employee. He does not consider himself to be working for a boss. He regards his supervisors as fellow profes- sional workers, and they regard him in the same manner. 3. The professional salesman does not work by the hour. He does notexpect to adhere to a strict time schedule. He adjusts his working hours to meet the necessities and responsibilities of his job, without thought to overtime or standard work week. 4. The professional salesman does not expect to be paid by the hour. He expects to obtain the amount for which he has agreed to perform his duties. This sum may be based on the responsibilities required and the sales service rendered; this cannot be measured in hours. For the young man starting in the sales field, this characteristic is the most difficult to rationalize. 5. The profesSional salesman takes full responsibi- lity for the results of his efforts and actions. He makes his own decisions and acts on them. He may seek advice and counsel, but he does not attempt to transfer responsibility for his own mistakes to others. There is no "passing the -buck" or taking credit where credit is not due. This latter point has ruined many a good salesman. 81 6. The professional salesman continuously seeks selfél improvement. He takes advantage of every opportunity to improve his skills, knowledge, and understanding. _7. The professional salesman contributes to the skill and knowledge of his profession. He develops new ideas, new plans, new approaches, and shares them with his fellow salesmen. 8. The professional salesman respects the confidence of others. Those whom he serves often require that infor- mation remain confidential. He never violates this confi- dence. Needless to say, this is the "acid" test of the true professional salesman. 9. The professional salesman is loyal to his fellow salesmen. He never gossips about them nor about his super- visor and management. 10. The professional salesman avoids rumor and hear- say. He does not listen to the grapevine. He obtains his information directly from those authorized to release it. 11. The professional salesman adjusts his grievances through proper channels. He discusses them directly and privately with those authorized to make adjustments. He refrains from complaining and grumbling. 12. The professional salesman meets his professional obligations. He fulfills all agreements entered into with others, whether they are legal or moral obligations. ~13. The professional salesman is sensitive to the 82 problems of his supervisor and management. He always con- siders the effect of his actions on the welfare of others. 14. The professional salesman does not advance him- self at the expense of others. He strives for promotion and advancement only on the basis of superior performance and personal merit. 15. The ppofessional salesman is proud of his Job. He always reflects pride and satisfaction in his work. 16. The professional salesman's chief desire is to render a service. Professional salesmen exemplify the "service principle" to the highest degree. There are many more characteristics the professional salesman should have, but these are the major ones. The professional salesman also has these basic qualities: knowledge; the capacity and willingnessto work; the ability to sell himself, enthusiasm, honesty, confidence, imagin- ation and resourcefulness, tact, personal appearance, health, loyalty, sense of humor, good speech, and a pleasing voice. Captain Eddie Rickenbacker, now President of Eastern Airlines, made the following statement regarding the kind of salesman any type of enterprise strives to obtain. He bases his description on what he has learned from leaders in many enterprises and from his own experience. I want a man with faith, honesty, belief in the freedom to work; one who is benevolent and charitable, thrifty, and loving of his country, his family, his job, and himself. I wamza man with mental ability, 83 who is stable and industrious, who will stick with it regardless of the headaches and heartaches, who is loyal, self-reliant, and able to get along with others. I want a man who is a leader, who has attained a real degree of maturity, and who has goals which will carry him to the top. 1 Now that the professional salesman has been identi- fied, what actually motivates this man to obtain and main- tain these high standards? Motivations of the professional salesman. Twelve basic motives which spell out SALESMANSHIP as presented by Mr. Kenneth B. Haas, are as follows: VS! elf-preservation, the desire for security, to satisfy our fear, caution,- A cquisitiveness, the desire to have things, to own things, to possess things we need, like and want, I ove of others, our love of our own dear ones, or our desire to help and make others happy, comfortable and provided for, go, or pride, our craving for prestige, importance, recognition, power, authority and position, ex or romance, our desire to be with and to please the opposite sex, oney (making or gaining), to get more, or to protect what we now have, ‘ pproval of others, social approval, the need for commendation and recognition, eeds, physical pleasure and comfort, desire for the finer things in life, elf—approval, our own personal sanction of what we do, critical self-examination, ealth, long life, vigor and vitality, freedom from pain, illness, accidents, etc., mitation, keeping up with the Joneses, keeping in the social whirl, lay orrecreation,rwflfides, games, sports, amusements, rest, etc. . .g F4 :2 on :2 :> :3 U) tn ulAn address by Captain Eddie Rickenbacker, President of Eastern Airlines,to the Grocers Manufacturers of America, Inc., Annual Meeting, November, 1952. ugLecture by Mr. Kenneth B. Haas, Chairman of the 84 Salesmen, like those in other professions, work to achieve certain goals. Although there are others, the general motives for success are security, opportunity, and recognition.“3 Security is of prime importance to the average sales- man. Companies realize that too much security can result in lack of motiviation andtxx>little security can result in poor morale. A large portion of the security of a salesman is determined by the personnel policies of the salesmans company. A salesman that is not worth training in view of promotion is not worth hiring. Every salesman should have "equal opportunity" to increase his position with the com- pany commensurate with his increased abilities. Material wealth is probably the greatest single factor in motivating the salesman. Clear cut wage and incentive plans should be established and thorOughly explained to the sales organi- zation. Recognition is a motivating force that is too often forgotten in the rush to do business in these greatly accelerated times. Recognition cannot always be given to Department of Marketing, Loyola University of Chicago, at a Salesman's Clinic, Madison, Wisconsin, Summer, 1952. u3James H. Davis, Handbook pf Sales Training (New York: Prentice-Hall, Inc., 1953), p. 349. 85 the individual in dollars and cents, but should never be neglected even if the acknowledgment is only a pat on the back. Motivation and emotional maturity. Motivation is the total sum of all the needs, drives, and urges which causes an individual to act as he does. Many human needs, drives, and urges may be satisfied by the type of work done. Management must determine whether the salesman's principal job motivation will spur him to work sufficiently hard, to perform his duties conscientiously, and to remain on the job a reasonable period. There are three basic reasons why motivations differ from one individual to another; differences in basic or physio energy levels, differences in level of aspiration, and differences in ability to withstand frustration.u4 Some salesmen have mOre drive and energy than others. They can overcome greater obstacles and endure greater hardships, have greater stamina and are more persevering than others. Aspiration is determined by the level and nature of the goal which the individual sets for himself. He may be in- fluenced by environment--home, schools, individuals, et cetera. Difficulty in obtaining some goals may result in some frustration which serves to intensify and reinforce uuFrank LaClave, Basic Problems pf Sales Management (New York: McGraw-Hill Book Company, Inc., I9457, p. 27. 86 unsatisfied drives. Continued frustration may result in exaggerated needs or in the salesman channeling efforts towards substitute or partially satisfying goals. Prescription for a well balanced life. There are many unfortunate salesmen who are exposed to bad living habits, poor control over their'health,eanotional frus- trations, and fatigue. Some salesmen have learned to con- duct themselves so that they do not suffer from these hazards. Salesmen are subject to these hazards due to the nature of their work. A good analysis of this situation and how to correct and control the causal factors, was presented by Dr. E. J. Kepler to the Grocers Manufacturers Representatives Organization.in Milwaukee, Wisconsin.“5 In the form of a diagram, Dr. Kepler explained the proper relationship needed for the four component parts, love, work, worship, and play, to lead a normal life. Diagram A shows the proper balance of these four components while the other diagrams show improper balance and the persons that tend to be in this situation. A A--Normal Life for Work Everyone Love . Worship Li I __.__.__ Play __l “SAn address by Dr. E. J. Kepler of the Mayo Clinic, to the Grocers Manufacturers Representatives, Milwaukee, Wisconsin, August, 1955. 87 - .C ._—.B Work r7 Work _ Worship _ Love Worship Love I I - L_J ._aL Play Play B--Spinsters, school teachers, C--Some tired businessmen missionaries, librarians, and too many wives and social workers, some mothers. Some husbands. parents. Many salesmen. . C Mork LOve Worship Play C~-Socialites, Playboys, Debutantes, Parasites, Some Students His prescription for that ”beat-up" feeling, poor health, lack of vitality, poor morale, and high fatigue, was not a prescription for any kind of drug, tonic, or vitamin as you may expect but a prescription for a normal, full, well—balanced life through the proper balance of love, work, worship, and play. Dr. Kepler defines work as that 88 kind that satisfies the instinct to enjoy one's life, not merely monotonous drudgery. Play should be relaxation and not dissipation. L332 implies a happy married life, a home, and children. Worship does nOt necessarily mean only church- going, but also sincere devotion to something that is bigger than oneself. Dr. Kepler pictured most salesmen as being long on love and work and short on play and worship (see Diagram C). The four arms of the crosses should be reasonably equal, and if they are not, the salesman will feel "beat-up," tired, irritable, unbalanced, and unfit. This lack of energy and good health is not the tired feeling that one has after a strenuous game of bowling or tennis, but more like a Chronic state of feeling tired and useless even when one gets eight hours of sleep every night. This tired and "beat-up" beeling is the result of frus- tration, fear, anxiety, and apprehension and may be banished, barringany disease, if the salesman will revamp his way of living and his point of View. In understanding the motivations and attitudes of salesmen, these factors should be taken into consideration. A good salesman, the professional salesman, will recognize his weaknesses and will try to maintain a well-balanced life. 89 The Buyer--Salesman Relationship The salesman who has chosen to render his services in the food industry, will be calling on buyers who are respon- sible either directly or indirectly for the purchase of millions of dollars in merchandise annually. With such a -responsibility on their shoulders, buyers have a right to expect qualified and well trained salesmen to call on them, in other words, a professiOnal salesman. The best way for a saleSman to enjoy good relations with a buyer, is to be sure that every sales call is purposeful and beneficial in aiding the buyer to favorably perform his duties. If this concept is put into practice, not only the buyer but also the salesman will benefit in the long run. The sales call. The salesman, at best, has fifteen minutes to present his sales' "pitch" to the buyer. Fifteen minUtes is not a very long time when considering the secre— tary interruptions, phone calls, et cetera, which generally take place during the interview. Consequently, the suc- cessful sales interview is one that is well planned, which bears out the old saying, "Plap_your work, then wppk your plan." The preceding chapters have pointedzmxtthe importance of the written product presentation and that the buyer is the saIesman's representative before the buying committee. A good oral presentation may be effective on the buyer at the time of the sales call, but by the time the buyer has 90 listened to numerous other sales "pitches” and finally repeats your presentation to the buying committee, the effectiveness is lost. Emphasis should be placed on the written presentation as the buyer relies on what he reads and not on what he thinks he heard. The oral should sup- plement, not dominate the written presentation. Based on the material presented in the preceding chapters, the salesman should plan his sales presentations according to the following format. First, when the salesman is facing a buyer for the purpose of: l. Securing placement of product, 2. Introducing a new item, 3. Arranging a store sale or promotion--the following points are foremost in his mind. How the salesman presents and proves his story will determine the results. 1. Is the item a duplication or is it an exclusive? 2. Does it perform a new service, give a new taste thrill or sensation? Is it better advertised? J—‘UO Is it worth the price? Does it enlarge the market? \TI 6. Will it replace a competitive item we are now stocking? 7. Is the quality good? 8. What is the estimated sales potential? 12. 13. 14. 15. 91 Is it an A, B, C, D, or E item? Is the firm responsible? What is the manufacturer's financial condition? Is it sound or is it doubtful? Does manufacturer support product in an aggressive way? With high pressure? With conservative methods? Is the support consistent? Is an advertising allowance available? Will the product produce sufficient turnover and profit to justify placement? Secondly, as much of this information as possible should be included in the written presentation. A workable check list for the written forms for the salesman to follow would be: 1. 2. \n Write clearly and legibly, typewrite if possible; No misspelled or misused words, no smudges, or erasures; Express yourself in simple, short, and concise statements; Be specific-~no general rambling statements of little importance; Make your points, do not crowd words, leave it easy to read; Use