Welcome to Kinnarps!

Our company Kinnarps

Background of Sales Force Excellence

Sales Vision 2010

Kinnarps Sales Process

Achievements so far - Battles to win

I would like to talk about

Agenda

Our company

A strong interior solutionspartner for the future

> Family driven Swedish companyestablished 65 years ago

> No 1 in Scandinavia, Europe’s No 3.Represented in 36 countries, some200 showrooms all over Europe,turnover 400 million Euro

> Full control over complete chain;from production to installation

The Kinnarps star…our capabilities - your benefits

> Our business philosophy that permeates everyday work

> Our method for continuous development of services and products

> Your guarantee for the best solution at best value

Business philosophy

solutions

economy

competence

quality

environment

ergonomics

design

innovation

High quality brands witha variety of expressions

+ network of approved partners

Brands

better at work

ideas materialized timeless elegance scandinavian sense

Why change?

Why change?

> Customers are getting more international

> Customers are getting more professional

> One stop shopping

> Customers demand solutions – not products

> From transactions to projects

> Double pressure from top to bottom

> Space planning/Ergonomics/Environment

Background – the customers

Denmark

Jesper Office

Scan Office

Kinnarps

CJC

Daarbæk

Duba/B8

EFG

Ergoteam

Martela

Paustian

Products Solutions

Bud

get

E

xclu

sive

Background – the competition

Total market €130 millionMarket share 15%

> Shift from production focus to sales and customer focus.

> Develop the offer to complete interior solutions.

> Substantial growth potential in Europe.

> Maximise impact with uniform international marketing.

> Take full advantage of the competence in our international network.

> Take control of our most valuable asset: the Kinnarps brand.

Background – Our own business strategy

International growth plan

Background - Business strategy

concept

coordination

cooperation

establishing

work

MORE INTERNATIONAL

The keys to success

Background – Business Strategy

Present way of working

All markets work in their own way with sales – no synergies

Sales people too quick to present and quote

A NO to business is very rare

No common CRM-system

Not enough preparations before meeting the customer

No cooperation between Sales and Marketing

Increase quality in sales – better control

Increase profitability

TOGETHER!!!!

Background – Why change?

Why change?

Win more Opportunities – increase hitrate

Decrease sales cycle – increase productivity

Increase quality in sales – better control

Increase profitability

TOGETHER!!!!

Challenges – Why change?

Our new way of working

SALES

=

Number of cases x Value x Winrate

Essentially, opportunities that we

do NOT win are characterised as

waste

“Lean” is about eliminating waste

Validation

Implementation

Solution

Final agreement

Need analysis

Qualification

Res

ourc

es in

vest

ed

The earlier you abandon an

opportunity that you can not win, the less waste you generate

Lean is about eliminating waste

Validation

Implementation

Solution

Final agreement

Need analysis

Qualification

Validation

Implementation

Solution

Final agreement

Need analysis

Qualification

100 125

The no 1 reason for waste in sales

0% 100%

0% 100%

0% 100%

0% 100%

0% 100%

0% 100%

Reason: Misalignment with customers buying processReason: Misalignment with customers buying process

Buying Process versus Sales Process

DETERMINENEEDS

EVALUATEALTERNATIVES

EVALUATE RISK

Buying Process versus Sales Process

Needs

Needs

DETERMINENEEDS

EVALUATEALTERNATIVES

EVALUATE RISK

Buying Process versus Sales Process

Needs

Cost

Needs

Price

DETERMINENEEDS

EVALUATEALTERNATIVES

EVALUATE RISK

Buying Process versus Sales Process

Solution

Solution

DETERMINENEEDS

EVALUATEALTERNATIVES

EVALUATE RISK

Buying Process versus Sales Process

Risk

DETERMINENEEDS

EVALUATEALTERNATIVES

EVALUATE RISK

Buying Process versus Sales Process

Cost Price

Risk

DETERMINENEEDS

EVALUATEALTERNATIVES

EVALUATE RISK

Buying Process versus Sales Process

Needs

Cost

Solution

Risk

Needs

Price

Solution

Risk

DETERMINENEEDS

EVALUATEALTERNATIVES

EVALUATE RISK

Need analysis Solution / Validation Final agreement

Kinnarps Sales Process

Inspiration/market awareness

Leadidentifica-

tion

1 2 3 4 5 6 7 8

Pain is activated

Pain definition& analysis

Estab-lishing vision ofsolution

Contact supplier

Evalua-tion and order

Fulfil-ment

Evalua-tion/

review

Leadqualifica-

tion

Pain analysis

Vision creation

Propose solution

Contract close

Delivery of

total solution

After Sales

Buyer’s process

SALES FORCEEXCELLENCE

2. Diagnostics of AS-ISIdentification of existing sales process, activities, sales tools, pipeline management and customer relationships.

1. Creation of Sales VisionSales Vision Workshop, interviews at local businesses, Sales goals defined. International Sales Forum initiated

3. Design of Sales ProcessGeneral Kinnarps Sales Process with customized local versions. Sales Tools built. SALSA re-engineering. KAM-organisation structured.

4. Implementation of Sales ExcellenceSales Management and Role Model Sales Training. Local Business Roll-out.

5. ReinforcementLocal Implementation Café Buddy co-visits, Local definition of ”Must win Battles”, opportunity coaching. Module 2 Sales Training. Regular HQ audit.

KINNARPS SALES VISION

Sales Force Excellence – project idea

“Excellence in selling workspace interior solutions by truly understanding the needs of our customers and create value for them”

>Aggressive goals for growth in sales per sales representative

>Improvement in productivity per sales representative

>Selling workspace interior solutions – maximise number of product categories and services for defined customers

>Fair share of sales with key accounts (share customer budget)

SALESVISION

SALESMISSION

1 2 3 4

SALES GOALS

Sales Vision 2010

Achievements so far

Sales Management committed to SFE on all markets

Common Kinnarps Sales Process

Common CRM-system used by all

Common sales language

Sales and Marketing working together

HR, Product development, IT integrated in the SFE work

Pipeline management – improved prognosis

Sales Force Excellence

Sales Force Excellence

Battles to win

Follow-up of all markets is a MUST. Encouragement needed

Coaching level of sales management need to be identified

Use of CRM system must be encouraged

Continuos efforts to create new strong sales tools – update of existing tools

Market plan made by Sales and Marketing together

Improved customer segmentation on all markets

A clear Value proposition identified and accepted by all within the internal organisation – communicated to the customers in a unified way

KINNARPS WINNING FORMULA

Kinnarps’ salesforce shall be able to

analyse and really understand the deep needs of the customers

relate the needs of the customers to Kinnarps’ solutions and

create solutions with a clear customer value

In this way Hitrate will be increased

Productivity will be increased

Control will be improved

Profitability will be increased

TOGETHER!!!!

Sales Force Excellence

Making life better at work

Benefits

minimised facility costs

improved space planning

better workspaceflexibility

new ways of working

improved ergonomicsfor healthier employees

increased efficiencyall day

more adaptable furniture

Many thanks for listening!

Cost-efficient, flexibleinterior solutions

> One supplier for the whole project facilitates the entire process efficiently

> Superior control over budgetand timetable

> Own unique production and logistics give best value for money

Business philosophy

solutions

economy