WHAT THEY NEEDED | A BETTER UNDERSTANDING OF THEIR DISTRIBUTORS

Motorola had a distributor network of 335 dealers carrying two-way radios. After a thorough examination of the dealers, it was determined that not all dealers were working within the parameters of the agreement. The agreement called for the dealer to have a specific amount of inventory at all times.

The Numbers:

> 60 dealers were working within the parameters of the agreement.

> 80 dealers had only minimal Motorola inventory.

> 195 dealers had no Motorola inventory but were taking advantage of Motorola’s advertising by selling competing products to customers who came to the store looking for a Motorola unit.

WHAT PHOENIX AGENCY DID

Phoenix Agency created the Motorola Max loyalty campaign to solve this issue. The campaign would encourage dealers to minimize the number of brands they carried and rewarded them for both sales and for maintaining inventory levels as per the agreement.

Marketing Strategy

A direct mail initiative introducing the Motorola Max loyalty program was created and sent to each of the dealers.

> The 60 dealers already working within the Motorola’s parameters received a different package than the others. These dealers were rewarded for their support and received extra bonus points.

> Sales associates were also rewarded for their sales. Overall, their points were added to the principals of the company, encouraging management to share the points versus keeping them all for themselves.

> 65 dealers were let go from the program as they did not meet the requirements outlined.

The Results

The program was a tremendous success.

> 78% of the dealer network (270) participated in the loyalty program and maintained Motorola inventory as per the agreement.

> The program filled the gap between actual dealer inventory levels and those agreed upon in the contract, generating over $4,000,000 in sales for Motorola.

> The biggest overall factor that contributed to the success of the program was that Motorola provided leads to the dealers that were generated from the advertising.