Detroit is a tough town for business these days, but Frito-Lay’s sales team there is doing its part to show its commitment to the city through a program it launched nearly two years ago, Motown Magic.
As anyone who pays attention to the news knows, Detroit took a hit over the last couple of years because of the decline of the domestic auto industry. One dramatic example of the effects of that decline is that today, no major supermarket chain is doing business in the city, as reported recently by CNNMoney.com. For Frito-Lay, this meant a gradual decline in our sales in Detroit, since a good percentage of our business comes from large grocery retailers.
Personally, this is unsettling news because I lived in Detroit when I was a young adult. The 1960s and ‘70s were exciting times, with the energy and passion surrounding the Vietnam War, the Civil Rights movement and Woodstock. I have fond memories of attending law school at Wayne State University, working at the Detroit Free Press, Ford Motor Co. and a local law firm, and spending many late nights discussing the issues of the day with great friends. (That’s me in the picture at left in 1970 in Detroit -- with a full head of hair -- sadly long gone.)
So, when Sam Lteif took over as Vice President of Sales for Frito-Lay’s Mid-America region in late 2006 –- which includes Michigan, Indiana and Ohio -- he and his team faced a tough choice: Accept the economic downturn and continue business as usual in Detroit or take a radical new approach to revitalize the Frito-Lay business and help rebuild the city. In true Frito-Lay spirit -- and with the support and leadership of Metro Market Director Fred Gongola and Region Finance Director (and former Zones Sales Leader) Kathy Cole -- they chose the latter option.
"We have an enthusiastic team (pictured at right) that was energized, had faith in Detroit and was confident we could restore our business," Sam told me. "But we needed to make big changes to big things. So we developed a three-step program and branded it ‘Motown Magic.’”
Sam explained the three-step approach to me: "First, we realigned our sales routes to focus on selling single-serve snacks in ‘up-and-down-the-street’ stores (independent convenience stores, mom-and-pop shops, etc.), where most Detroit residents today buy their food. To really be successful with this approach, we had to align all of our sales people working in the city with the common goal. They quickly got on board, because they could see the program’s potential.
"Second, we hired account development managers (pictured at left) to supplement the route sales positions. These managers focused on building eye-catching displays full of Frito-Lay products in stores we serviced and identifying new stores where we could sell Frito-Lay snacks.
"And third, we invested in superior merchandising equipment so our snacks were well represented and easy to find in stores, which made a very positive statement to retailers and consumers. In fact, a number of store owners told us that our commitment and confidence is infectious, and they’ve started investing more in their own stores to make the whole place look as good as the Frito-Lay section."
Today, the investment in Detroit has paid off. Frito-Lay has seen a resurgence of its business there, including increased sales, and Sam and his team remain committed to Detroit. They plan to expand the number of Frito-Lay sales routes in Detroit and add jobs to support these routes; and they are active volunteers in the Detroit community. The Motown Magic program also earned Sam and his team a PepsiCo Chairman's Award -– the company’s highest internal honor for teams that have distinguished themselves as truly extraordinary.
Hopefully, Sam and his team will serve as an example for other companies doing business in Detroit, helping the city reclaim the vitality it had back when I lived there. Do you think Detroit will bounce back and reclaim its spirit?
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