Assignment Assessment Report

Campus: Level: Module Name: Students Name: LUCKNOW Year/semester ACL-II Assignment Type Sales Assessors Name SATYA PRAKASH Reqd Submission Date Satya.prakash.wlc.lucknow@gmail.com Actual Submission Date e-mail id & Mob No 7860873299 Stream Marketing Submitted to : Certificate by the Student: Plagiarism is a serious College offence. I certify that this is my own work. I have referenced all relevant materials. Expected Outcomes Assessment Criteria Grade based on D,M,P,R system 1 year 2 sem A MR. SANJEEV SRIVASTAVA
st nd

SATYA PRAKASH (Students Name/Signatures) Feedback

General Parameters
Clarity of Concepts Analytical ThinkingAccuracy in calculationsFormatting & PresentationClear understanding of the various concepts of financial services industry Ability to analyze the problem realistically Accuracy in solving the problems Concise& clear thinking along with presentation

Subject Specific Parameters

Research Analytical Skill Market / Online Research Conducted to collect and analyse information. Analysis of Company & Product details to formulate Sales Plan.

Grades P M D

Grade Descriptors A Pass grade is achieved by meeting all the requirements defined. Identify & apply strategies/techniques to find appropriate solutions Demonstrate convergent, lateral and creative thinking.

Achieved Yes/No (Y / N)

Assignment Grading Summary (To be filled by the Assessor)

OVERALL ASSESSMENT GRADE: TUTORS COMMENTS ON ASSIGNMENT: SUGGESTED MAKE UP PLAN (applicable in case the student is asked to re-do the assignment) REVISED ASSESSMENT GRADE TUTORS COMMENT ON REVISED WORK (IF ANY) Date: Assessors Name / Signatures:

MOBILE CONNECTIVITY AND COMPUTING THE DAWN OF A NEW ERA The tablet is a mobile device, positioned to satisfy the mobile Internet and computing needs of a user. It is a slate or can be converted into a slate form factor, larger than 5-inch screen size, touch screen as primary input method and uses either a mobile network like GSM/CDMA/WiMAX/LTE or WiFi or, both for enabling internet connectivity. In addition to this a tablet may also include a detachable keyboard and voice capability as in mobile phones. A tablet may run on a specially designed Operating System (OS) such as Android 3.0 (Honeycomb) or RIMs QNx or, a PC/Smartphone OS like Windows 7/8, Android 2.2 (Froyo) and iOS 4, which may be modified. Tablets provide touch based user experience with a screen size convenient enough for web surfing, content consumption and entertainment. Moreover, portability, ease of use and wireless connectivity 'on-the-go' all combine to make the tablet an even more attractive buy. Assignment Brief: The assignment involves studying the local Tablet PC market from the perspective of a new company who intends to enter this market with a competitive product with similar features and in the same price band as the existing players. 1. Carry out a market research to collect data and information of the top three brands from : a) Channel partners (MBO outlets for Tablet PCs) b) Sales / Marketing personnel of top 3 companies c) Consumers of the top three Brands 2. a) b) c) d) e) f) g) h) i) j) k) l) The information collected should include details about: Brands and Models Sales Volumes and Sales Revenue Features, Advantages and Benefits Brand Equity Customer Profile demographics and psychographics Price, Discounts and Promotions Quality of product and service Warranty, Guarantees and Upgrades Logistics and Supply Chain Dealer benefits and company support Payment terms, demand and supply constraints, billing and MIS to dealers Stock Turnover, ROI and Profit for dealers

3. Work out a Sales Plan which should include how to create a distribution network with channel partners, the sales Budget and the promotion plans.

Note: The assignment should be based on real market scenario in your city and should not exceed 6 pages
(2500 words).

1. a) Channel partners (MBO outlets for Tablet PCs) Erich G. Ohngemach Profile: Professional executive business manager with over twenty years of successful channel sales and business management experience in the IT industry. Extensive knowledge of federal and state and local government market(s), associated contracting requirements, GSA, and contract program management. Proven track record and ability to develop and build a winning sales and business development organization.

Professional Experience: DLT Solutions, Inc., Herndon, Virginia Director, Enterprise Data Management Division 2/2010 10/1/2011 Hired by the Senior Vice President of Corporate Sales and Strategy to build a government focused field sales organization and lead business division focused on providing data management, data security solutions, and professional services to Public Sector clients. DLT Solutions is a $800M per annum public sector value added reseller of software, hardware solutions and professional services. General management of $140M per annum business unit focused on the sales of data management, security software solutions and professional services to the public sector market. Total PL management responsibilities including; financial assumptions, operating income and margin management, forecasting and pertinent SGA components. Thirty-five direct reports. Management of strategic vendor partner relationships, including; NetApp, Symantec, BMC, Clearwell and Quantum. Responsible for managing professional services organization delivering client site consulting and engineering services, as well as 24x7 tech support call center. Identification and qualification of enterprise sales initiatives and agreements. Significant clients include; DIA, NGA, NSA, NASA, HHS, DHS, Ohio, Virginia, Maryland and Pennsylvania. Zebra Technologies, Inc., Vernon Hills, Illinois (Leesburg, VA) Business Development Manager, Government 8/2008 2/2010 Hired by the Director of Government Sales to further develop government channel strategy and federal, state and local government markets for the company. Zebra Technologies is a $1B per annum manufacturer of tabletop, desktop, mobile bar-code printers, secure access card printers, and RFID printing and encoding solutions.

Development of Federal market, primary account focus; Veterans Administration, USMC, SPAWAR, Navy, Army, Air Force, Department of Defense Logistics, Military Healthcare, Department of Homeland

Security. Management of Government Integrator and Channel partners; Northrop Grumman, Unisys Federal, General Dynamics, Intelligent Decisions, Red River, etc. Responsible for identification and management of government contracts, partner contracts, terms and conditions, pricing, RFP/LOS process, and contract negotiations. This would include SEWP IV, RFID III, PRFID, AIT IV and GSA. Motion Computing, Inc., Austin, Texas (Leesburg, VA) Manager, Government Channels 4/2007 6/2008 Hired by the Vice President of Channel Sales to develop government channel strategy and federal, state, and local government markets for the company. Motion Computing is a $120M per annum manufacturer of tablet PCs, mobile clinical tablets, and semi-rugged tablet PCs. Management of Government Channel partners; GTSI, ePlus, Red River Computer, Intelligent Decisions, GovConnection, etc. Responsible for identification and management of government contracts, partner contracts, terms and conditions, pricing, RFP/LOS process, and contract negotiations. Partner contracts include; GSA, SEWP IV, ECS III, ITES, US Courts, US Communities. Development of sales and marketing initiatives associated with DMR government business; GovConnection, CDWG, Insight. Recruitment and development of new channel partners. Tech Data Corporation, Clearwater, Florida (Leesburg, VA) Director, Southeastern and Government Field Sales 3/1999 10/2006 Hired by the Vice President of Strategic Business Development in 1999 to build government focused field sales organization in WDC region, increasing strategic vendor market share for the company in this vertical market. During my tenure at Tech Data, my role expanded, with responsibility for management of the entire Southeast Region as well. Tech Data is a $16B per annum worldwide distributor of IT products and logistics services. Management of $825M per annum business unit. Eight direct reports PL management responsibility for the division. Includes ABC cost control management, client operating profit management, margin management and design of client contracts. Management of commercial clients associated with Southeast Region; Lockheed Martin, Bell South, McKesson, America Online, Northrop Grumman. Grew government VAR sales division business from $98M to $425M in first two years with company. Significant channel partner contract wins include; GTSI, Lockheed Martin, ePlus, SAIC. Responsible for managing two of the companies Top Five clients. Engagement of Government DMR clients; CDWG, Insight, PC Mall, PC Connection, etc.

Responsible for executive relationship management of strategic vendor partners such as HP, Cisco, IBM, Fujitsu, etc. Successfully recruited Government field sales organization. Alliance Systems, Inc., Plano, Texas Director, Federal Sales (Management Consultant) 5/1998 11/1998 Hired by the President of the company to build and develop a federal and state and local government sales and marketing program, as well as manage the government sales effort domestically for the company. Alliance Systems is a distributor and integrator of computer telephony products and server system platforms, specializing in call center, VoIP gateway and PC-PBX system solutions. Developed Alliances Computer Telephony build to order server system(s) offering on GSA contract. Designed GSA Agent and Letter of Supply program(s) for strategic business partners. Established strategic relationships with new clients such as Hughes Network Systems, Bell Atlantic, Williams Communications and GTE Government Systems. Developed Master Reseller Agreement for the company, which included Co-op and MDF accrual program for government VARs and resellers. Won $1.5M sub-contracting opportunity with GTE Government Systems for the Bureau of Prisons IT-2 contract to deliver Dialogic voice processing call center platform to the Department of Justice. Coordinated executive response to several RFP (FBI, Bell Atlantic) opportunities that resulted in incremental $5M per annum in business for the company. Global-InSync, Inc., Springfield, VA Vice President of Sales and Marketing 3/1997 4/1998 Hired by the Board of Directors of parent company, Global-Intelicom, to redesign the companys sales and marketing strategies and turn the sales organization around. Global-InSync is a build to order service provider and manufacturer of personal computers, workstations and mid-range servers. Direct and manage all sales and marketing efforts for the company. This includes profit and loss responsibility, identifying markets and competition, producing financial assumptions, revenue and product forecasting. Fifty direct reports, included inside and field sales, product marketing and middle management personnel. Grew company revenue in first six months from $4.2M per quarter to $10.5M per quarter. Increased GSA Contract sales 150% through the development of VAR Agent Program. Managed sales and business development team to $10M US Postal Service contract win with Lockheed Martin Corporation.

Developed Private Label and OEM channel sales programs increasing indirect channel sales from $1M to $8M.

GBC/Globelle Technologies, Inc., Vienna, VA Director of Sales, Federal Sales Division 8/1995 3/1997 Hired by the Senior Vice President of Sales to grow Federal market share for the company. GBC/Globelle was an $800M per annum national distributor of computer, peripheral and networking products to the VAR, reseller and system integrator channel. Direct and manage all sales and marketing efforts for the companys Federal sales division. Twenty direct reports, included inside and field sales, GSA bid and proposal desk, and contract/project management personnel. Grew Federal sales division revenue from $36M to $60M per annum in fourteen month period. Enhanced overall gross profit margin from 5.5% to 8.2% during this same period. Mountain Network Solutions, Inc., Scotts Valley, CA (Manassas, VA) Director, US Distribution Sales 8/1990 8/1995 Hired by the Director of Dealer and Corporate Sales in 1990 to grow Fortune 1000 sales in Eastern Region. Mountain was an $80M per annum manufacturer of tape backup and data storage devices. Throughout my tenure at Mountain, I consistently exceeded revenue, account and business objectives, being promoted three times, my final position with the company as Director of Distribution Sales. Management of domestic US Distribution sales effort. ($80M per annum) Management of distribution inside and field sales teams. (10) Accounts included Tech Data, Ingram Micro, Merisel, Gates/Arrow, GBC/Vitek and Comstor. Eastern Regional Sales Manager o Management of government sales and federal distribution sales effort. o Eastern US and Canada territory responsibility. District Sales Manager o Account management of Northeastern territory for Fortune 1000. Corporate Account Representative o Management of Eastern territory for major corporate accounts such as UPS, AT&T, Coca-Cola, Delta, Chase Manhattan, Price Waterhouse, Gillette, Exxon. MicroAmerica, Marlborough, MA (Chantilly, VA) Systems Engineer/Novell Instructor 9/1987 8/1990 Hired by Technical Support Manager at Chantilly, VA sales office to provide help desk support, and pre and post sales support for networking proposals and products. After being with company for 12 months

in this capacity, I became a Certified Instructor for Novell Netware (CNI) and taught certification courses across the U.S. to VARs and resellers to achieve Novell Gold and Platinum status. MicroAmerica was a $300M national distributor of IT products. Education: Management Studies: Harvard Business School Management Studies Dr. David Upton Harvard Business School Management Studies Dr. France X. Frei Corporate Executive Board Sales Executive Council Situational Leadership Ken Blanchard Building World Class Sales Organizations Target Marketing International Target Account Selling Target Market International American Management Association Federal Learning Institute Management Supervisory Skills Time Management Executive Presentation Skills Computer Learning Center, Paramus, NJ (Honor Graduate) Electrical Engineering AET (1984 1986)

b) Sales / Marketing personnel of top 3 companies

Some companies have the luxury of developing training programs and strong internal career paths for young up starts that they bring onto their sales team. But in this day in age there are many companies, particularly small and medium businesses, that have a very difficult time creating an environment for growth that manages the development of their people. In fact, all companies today are squeezed on margins and have a hard time creating enough infrastructure to provide full time sales training programs, mentoring, and other types of developmental activities for their sales people.

If your company is thinking about making or buying, one of the key considerations as to whether or not you buy the best or grow from within really comes down to resources. If you are a small or medium company, perform an assessment of what it is you can do to help grow your sales people. Write down a list of all the activities that ideally you'd be able to perform as a sales manager to mentor and grow new hires into your company. When you come up with that list, figure out whether or not those tasks are things that you can perform internally. If you cant perform internally, then the next question is, is there a way to outsource these activities to make sure that they are getting done by somebody? Often times a sales consulting firm can help you with some of those activities that are not ongoing but require specific specialist inputs from time to time.

Sometimes it's easier to buy in the best talent by bringing outsides sales consultants, but other times it makes a lot of sense to just go ahead and hire a sales resource that can help you from the outside. If your company is going through a make or buy decision as to whether or not to grow from within or to hire the best, consider using a recruiting firm that can help you get the best people. Those people require less training and less time to develop in order to get to your overall sales growth objectives. This is why it's so critical to be clear with yourself as to what you are capable of doing as it comes to hiring people.

If your company has a well developed sales infrastructure, training programs, incentive motivation schemes, mentoring, coaching, and those kinds of capabilities, then you could very well go it alone and hire people of less experience hoping to bring them along, but if you are like most companies who are struggling to get all of these tasks done while continuing to focus on the day to day business, it's better for you to either bring in a outside sales consultant or hire a recruiter that can help you go find the talent you need.

If your company has an entrenched sales force with an average tenure of 3 to 5 years, now is a great time for you to perform an assessment of your team using new tools that are available online and which can be easily deployed to perform an objective evaluation of each of your sales team member individual selling skills as well as on overall team performance assessment. These tools are readily available and easy to access, even if you don't want to deploy a sales consultant to do the work. One tool that we use, represent, and work with is the evaluation tool from Objective Management. The objective management sales team evaluation process is an easy one to perform and one that any sales manager can use to come up with actionable information that can be turned into making decisions on performance management, termination, and/or team upgrading. It's very easy to use these tools and it doesn't take a lot of time or effort. The output of a team evaluation is an individual report that you can use with each of your sales team members so that you can have a clear discussion to figure out what they can do to improve their overall productivity and enhance their value to your company. If you are thinking about 2007 and how to get more revenue from your existing sales team, use this kind of tool to make such an assessment. They're easy to access, easy to set up, and easy to interpret. The next step is establishing a sales forecasting process. If you're like most sales managers, one of your jobs is to regularly scrutinize the sales forecast and look into the pipeline to see what's dead and what's actually moving forward. The job of your sales people is to advance the sale as much as possible but also to be clear when an opportunity is dead in the water and not moving. Your job as a sales manager is to scrutinize those entries that look like they've been languishing for a long time in your forecast and get them to either move forward or to move them out of the forecast and kill those opportunities that are dead. To often we find sales managers who are taking at face value what their sales people are saying about a given opportunity. Indeed, I have a situation right now where one of my sales people is actually

continuously updating old pipeline entries which are really dead opportunities. She is in the process of wishing and hoping they'll turn into a sale, but the fact is that she is really in denial that they will not close. My job as a sale manager is to call those entries to her attention and make sure that she comes to clarity about the fact that those opportunities are no longer worth keeping in the sales pipeline. If you have a modern CRM system, it's easy to manage the sales pipeline, scrutinize the activity, and talk through those issues with your sales people. If you are using salesforce.com you probably have a dashboard that allows you to quickly look at activity related to specific pipeline entries and to call your sales people's bluff when those sales entries are not advancing. The best way to get your sales people back on the track to prospecting, qualifying, and closing new business, is to make sure that their sales forecast isn't filled with opportunities that are in fact dead. The faster that you can get a sales person to clarity about what's not going to happen, then faster that you can get them working on new opportunities and creating new opportunities that will actually turn into sales. A lot of sales people like to keep old pipeline entries active thinking that they'll eventually turn into sales when in fact they're not going to. So make sure that on a regular basis you are reviewing your old CRM entries and opportunities and killing the ones that are not going to happen. It'll save you a lot of time and energy talking through the same old deals over and over with your sales representatives so that you can get on to the subject of finding out what they're doing to create new ones. That's the role of the sales manager.

c) Consumers of the top three Brands What is the secret to creating more meaningful relationships with consumers and experiencing significantly higher growth as a result? According to a recent Stengel Study of Business Growth, the answer is no more complicated than this: develop a strong brand promise. Using Milward Brown's Optimor technique (explained in the box at the end of this discussion), the Stengel analysis was performed over a ten-year period spanning 31 countries and 28 categories. The top 50 brands--that is, those that outpaced their competition in brand value over the past decade and formed unusually strong connections with consumers are listed alphabetically in the following chart. The so-called the Stengel 50 grew three times faster in financial terms during the period studied than their competitors and the overall universe of brands. The Stengel 50 reveals quite a disparity in brand categories, ranging from luxury brands like Herms, Louis Vuitton, Mot et Chandon, Hennessy and Mercedes-Benz to e-commerce brands like Amazon.com and Zappos to consumer goods brands like Coca-Cola, Sensodyne, and Red Bull. Among these brands we see some of the usual suspects, ones that have been identified in other analyses, particularly engagementdb's social media engagement study of the top global brands (which compared Business Week's top 100 global brands according to number of channels and depth of engagement), as well as assessments of company's performance on Facebook and Twitter. Albeit with differences. For example, the top three brands that emerged from the engagementdb analysis were Starbucks, Dell, and eBay. The top three Stengel brands were Apple, Google and Pampers, growing as much as 10 times faster

than average company growth between 2001 to 2011. Both studies found that connecting with consumers was associated with financial growth. Looking a little more closely at the Stengel study, however, the basic question is what exactly does it mean to 'develop a strong brand promise' or identity? Insight into this question is provided by the study's director, Jim Stengel, former CMO of P&G. According to Stengel the high ranking brands were built around a central ideal that clarified their core purpose, such as IBM's goal to 'create a smarter planet' and Jack Daniel's 'maverick independence.' In marketing jargon we call these central ideals 'brand essence' - the essential and intrinsic nature of the brand; its spirit and soul; a single thought that captures that soul. The man behind the research high profile US marketer and former CMO of Procter & Gamble, Jim Stengel suggested all of the high ranking brands were built around a central ideal that fostered a tight focus on their core purpose. As described in his book Grow. How Ideals Power Growth and Profit at the World's Greatest Companies, Stengel elaborates on brand ideals:

A brand ideal is not social responsibility or altruism but a programme for profit and growth based on improving peoples lives. Maximum growth and high ideals are not incompatible. Theyre inseparable.
As an example, Stengel points to Pampers, a brand that lost sight of its core ideal by focusing too narrowly on the dryness of diapers. Market share continued to drop until Pampers successfully redefined its brand ideal as helping mothers care for their babies and toddlers healthy, happy development. Anybody can talk about dry diapers, but helping mothers care for their newborns is a message that helps distinguish a winning brand from the also-rans. The best-performing businesses, according to Stengel, are driven by ideals that touch on one of five human values: eliciting joy, enabling connection, inspiring exploration, evoking pride or having an impact on society.

2. The mobile internet user first appeared only a few years ago, but already this new users behavior is hanging the technology landscape. We believe that we are in the early innings of the mobile computing cycle the largest in the history of computing. By the end of 2020, we predict that 10 billion mobile internet devices will be in use, up from 2 billion today. Within this larger trend, we are seeing a fragmentation of computing devices, and 2011 may be the year of the tablet a computing product whose adoption, we expect, will ramp faster than any previous mobile device (exhibit 1). Through the aggregating of data from more than 8,000 global consumers and 50 US CIOs, we have garnered unique insights into the tablet market and usage patterns of tablet users. Our data include AlphaWise consumer surveys performed in the US, UK, France, Germany, Japan, and China in October 2010. Based on these surveys, we believe that the tablet market could be bigger and more disruptive than investors appreciate. In particular, three potential upside surprises highlighted by our research could boost 2012 tablet shipments to our 100-million bull-case scenario: First, enterprise adoption could be more widespread than expected. Two-thirds of the 50 CIOs in our January 2011 survey expect either

to purchase tablets for some of their employees or allow employee-owned tablets onto their networks within one year up from 29% currently (exhibit 2). While it is difficult to know how large the deployments will be, what the use cases are for the tablet deployments, and how they might affect corporate PC expenditure, this is some of the first-hand evidence we have of enterpise tablet adoption. Any meaningful uptake of tablets in the enterprise opens up opportunities for application, security, virtualization, and management software vendors. Second, international demand could be materially higher than some expect. While consensus views the tablet market as largely a US consumer phenomenon, the international consumer survey data surprised us. Demand came in higher than in the US in every large developed international market the UK, Germany, France, Japan and significantly higher in China (exhibit 3). While we base our current tablet shipment forecast on data from US consumers, there appears to be a clear upward demand bias in international markets. Third, increasingly, tablets may be viewed as contentcreation devices. Today, the primary use of tablets is to consume content through activities like web browsing, social networking, and watching video. However, 20% of tablet owners also use the device to create or edit files regularly. While this figure is below the 34% of netbook owners and 56% of notebook owners that regularly use these devices to create or edit files, we believe the rate of introduction of new mobile applications and faster processors could increase these figures over time. Exhibit 1

Exhibit 2

Exhibit 3

As a global technology, media and telecommunications equipment team, we investigated the nvestment debates for tablets across 10 industries, both within the tablet supply chain and adjacent industries, and now present our conclusions in this Blue Paper. In some cases our conclusions are clear and conviction is high. In other cases, admittedly, our team members themselves hold differing opinions. Because we are only in year two of what we think will be a 10-year technology shift, we expect that it will take time to build consensus. Below we highlight our key investment conclusions (exhibit 4). Like smartphones over the past two years, tablet growth is likely to surprise to the upside, in our view, pulling with it market leaders and challenging legacy technology. Importantly, while some tablets will eat into other markets, like PCs, e-readers, and gaming handhelds, more than half of prospective tablet buyers in the US and more than one-third globally view a tablet as an additive devicea bullish signal for the broader technology market. We view Apple and Samsung Electronics as the most likely near-term tablet market leaders in both our base- and bull-case scenarios.

Memory-based storage is the best way to play the bull case. We view component vendors as the armsealers that support tablet growth, and memory-based storage (NAND) is the most likely beneficiary if our bull case scenario plays out. SanDisk is best positioned here, with 60% earnings exposure to memory in mobile devices. We also see upside to ARM Holdings, in light of its leadership position in low-powerusage processors, and Broadcom, a provider of connectivity and touch controller semiconductors. The impact of tablets on pages printed is the most underappreciated cannibalization story. CIOs in the enterprise space already expect to cut spending on printer supplies in 2011. As the installed base of tabletsa digital document viewer that reduces the need to print both standard black and white documents and expensive color presentationsgrows, we expect printed page volumes to shrink. Whats more, 90% of iPad users already believe they would print less with access to work documents on their tablets. Given high earnings exposure to sales of printers and related supplies, we highlight Lexmark and Ricoh as potentially challenged due to rising tablet adoption. Large-cap technology stocks face limited earnings risk. Large-cap tech stocks bore the brunt of tablet-related Valuation compression over the last year. Even so, they face relatively small earnings risk because of their more diversified business models. In our base case, we see less than $0.05 of EPS downside for large-cap technology stocks like Hewlett- Packard, Intel, and Microsoft. While these companies need to more effectively communicate their strategy and execute on tablets, they are somewhat protected by the greater diversity of their businesses. We see more downside for companies with higher earnings exposure to PCs and printers. Please see page 6 for a summary of key takeaways by industry. Exhibit 4

Hardware Tablets are disruptive to the PC market, reducing units by 5%, on average, through 2013. Tablets increase the TAM, but traditional PC vendors will likely struggle to capture incremental demand. Smartphone vendors better positioned, particularly those that own a platform.

Best positioned: Apple, Samsung Electronics, Motorola Mobility, HTC, Research in Motion, Hon Hai Precision. Potentially challenged: Hewlett-Packard, Dell, Acer, Asustek Computer, Lenovo, Toshiba, Sony. Semiconductors Tablets are the latest x86 versus ARM battleground ARM wins round one. Near term, ARM should continue to dominate as OEMs prioritize low power consumption over performance. Longer term, success depends on: 1) usage model 2) manufacturing muscle and 3) Windows 8 success. Tablets are accretive to most semi companies; EPS risk for Intel and AMD is 1% and 4%, respectively. Best positioned: ARM Holdings, Broadcom, Qualcomm, Nvidia, Texas Instruments, Marvell Technology Group. Potentially challenged: Advanced Micro Devices, Intel. HDD Surprisingly, tablets are not too disruptive to the hard disk drive market but other important threats linger. Tablets reduce HDD shipments by 2-3%, on average, through 2013 in our base case. Shift to centralized storage only provides a modest offset to tablet cannibalization. Other threats include desktop virtualization, PC solid-state drives and cloud streaming services. Potentially challenged: Western Digital, Seagate, TDK, Nidec. Memory NAND is the best way to play the tablet bull case. NAND market remains tight due to rising adoption of tablets and smartphones. Tablet bull case could disrupt the NAND supply demand balance, leading to supply constraints. DRAM impact is only a slight negative in the near term but neutral to additive by 2012. Best positioned: Samsung Electronics, Toshiba, SanDisk. TFT-LCD High-end displays and touch panels are strategic components and clear tablet beneficiaries. Tablets are driving a meaningful expansion in the touch panel market. While the overall TFT-LCD industry impact is modest, providers of high-end displays will benefit. Best positioned: Young Fast, Chimei Innolux. Printing Tablet impact on pages printed is the most underappreciated cannibalization story. Printing behavior is structurally changing; we expect a reduction in enterprise and commercial printing. The majority of iPad owners are printing less in the office and many are cancelling print subscriptions. We expect a 2-5% reduction in printer supplies revenue in developed markets by 2012. Potentially challenged: Lexmark, Hewlett-Packard, Ricoh. Software Opportunities in management, applications and security; near-term Microsoft impact limited. We only see a $0.02-0.03 EPS impact while Microsoft calibrates tablet strategy with Windows 8 in 2012. Tablets offer opportunities for systems management, applications and security software vendors. Best positioned: VMware, Citrix Systems, Intuit, SuccessFactors, Salesforce.com. Potentially challenged: Microsoft, Adobe. Gaming Tablets poised to cannibalize gaming hardware. Tablets could reduce gaming hardware shipments by 6-8% over the next two years.

While cannibalization will focus on the handheld market, product cycles could reduce near term pressure. Tablets provide a new gaming software platform but is offset by cannibalization and lower pricing. Potentially challenged: Nintendo, Sony. Cable/Satellite Enhanced video experience and rising broadband consumption. Tablets offer a platform to improve video search and navigation, benefitting cable and satellite. Rising broadband consumption in the home driven by tablets will benefit cable. Media A game changer for content owners. Larger audience creates additional advertising opportunities for TV networks. Potential to drive incremental rental activity for movie studios. Ability to recreate a true layout with interactive content offers opportunity for magazines. 3. Work out a Sales Plan which should include how to create a distribution network with channel partners, the sales Budget and the promotion plans.

Distribution is one of the classic 4 Ps of marketing (product, promotion, price, placement a.k.a. distribution). Its a key element in your entire marketing strategy it helps you expand your reach and grow revenue. B2B and B2C companies can sell through a single channel or through multiple channels that may include: Wholesaler/Distributor Direct/Internet Direct/Catalog Direct/Sales Team Value-Added Reseller (VAR) Consultant Dealer

Retail Sales Agent/Manufacturers Rep

Here are three distribution examples: DIRECT TO END USERS You have a sales team that sells directly to Fortune 100 companies. You have a second product line for small businesses. Instead of using your sales team, you sell this line directly to end-users through your website and marketing campaigns. You have two markets and two distribution channels. SELL THROUGH A DEALER NETWORK SELL THROUGH A VAR (VALUEADDED RESELLER) You sell a product to a company who bundles it with services or other products and resells it. That company is called a Value Added Reseller (VAR) because it adds value to your product. A VAR may work with an enduser to determine the right products and configurations, and then implement a system that includes your product.

You sell a product through a geographical network of dealers who sell to end-users in their areas. The dealers may service the product as well. Your dealers are essentially your customers, and you have a strong program to train and support them with marketing campaigns and materials.

To create a good distribution program, focus on the needs of your end-users. If users need personalized service, you can utilize a local dealer network or reseller program to provide that service. If your users prefer to buy online, you can create an e-commerce website and fulfillment system and sell direct; you can also sell to another online retailer or distributor that can offer your product on their own sites. You can build your own specialized sales team to prospect and close deals directly with customers.

Wholesalers, resellers, retailers, consultants and agents already have resources and relationships to quickly bring your product to market. If you sell through these groups instead of (or in addition to) selling direct, treat the entire channel as a group of customers and they are, since theyre buying your product and reselling it. Understand their needs and deliver strong marketing programs; youll maximize everyones revenue in the process.

Best Case

Neutral Case

Worst Case You probably arent hitting your revenue goals because your distribution strategy is in trouble. With your current system, you may not be effectively reaching your end-users; your prospects probably arent getting the information and service they need to buy your product. Your current system may also be difficult to manage. For example, channel members may not sell at your suggested price; they dont follow up on leads you deliver; they dont service the product very well and youre taking calls from angry customers.

Youve used one or more distribution channels to grow your revenue and market share more quickly than you would have otherwise. Your end-users get the information and service they need before and after the sale. If you reach your end-user through wholesalers, VARs or other channel partners, youve created many successful marketing programs to drive revenue through your channel and youre committed to their success.

Youre using one or more distribution channels with average success. You may not have as many channel partners as youd like, but your current system is working moderately well. You devote resources to the program, but you wonder whether youd be better off building an alternative distribution method one that could help you grow more aggressively than you are growing now.

Distribution Channels Key Concepts & Steps

Before you begin
You can evaluate a new distribution channel or improve your channel marketing / management at any time. Its especially important to think about distribution when youre going after a new customer segment, releasing a new product, or looking for ways to aggressively grow your business.

Evaluate how your end-users need to buy

Your distribution strategy should deliver the information and service your prospects need. For each customer segment, consider: How and where they prefer to buy Whether they need personalized education and training Whether they need additional products or services to be used along with yours Whether your product needs to be customized or installed Whether your product needs to be serviced

Match end-user needs to a distribution strategy

If your end-users need a great deal of information and service, your company can deliver it directly through a sales force. You can also build a channel of qualified resellers or consultants. The size of the market and your price will probably dictate which scenario is best. If the buying process is fairly straightforward, you can sell direct via a website/catalog or perhaps through a wholesale/retail structure. You may also use an inbound telemarketing group or a field sales team. If you need complete control over your products delivery and service, adding a channel probably isnt right for you.

Identify natural partners

If you want to grow beyond the direct model, look for companies that have relationships with your endusers. If consultants, wholesalers or retailers already reach your customer base, theyre natural partners.

Build your distribution channel

If youre setting up a distribution channel with one or more partners, treat it as a sales process: Approach the potential channel partner and sell the value of the partnership. Establish goals, service requirements and reporting requirements. Deliver inventory (if necessary) and sales/support materials. Train the partner. Run promotions and programs to support the partner and help them increase sales.

Minimize pricing conflicts

If you use multiple channels, carefully map out the price for each step in your channel and include a fair profit for each type of partner. Then compare the price that the end-user will pay; if a customer can buy from one channel at a lower price than from another, your partners will rightfully have concerns. Pricing conflict is common, and it can jeopardize your entire strategy, so do your best to map out the price at each step and develop the best solution possible.

Drive revenue through the channel

Service your channel partners as youd service your best customers and work with them to drive revenue. For example, provide them with marketing funds or materials to promote your products; run campaigns to generate leads and forward them to your partners.

After Distribution Channels

As youre creating a new channel youll need a pricing strategy and a sales process. When your channel is up and running, you can start launching marketing campaigns to channel partners and end-users.