Company: Whirlpool Corporation, KitchenAid Division

Programs: Merchandise

Program Types: Sales

Program Details: The audience KitchenAid targeted for this promotion included sales associates at retail appliance stores and KitchenAid account managers. Choosing the right incentive to appeal to this diverse group was a challenge. To reinforce the Western theme of "rounding up" sales, the awards included a choice of Omaha Steaks and a variety of "leather" products--shoes, luggage, briefcases, watches with leather bands, coats, etc. The Round Up campaign kicked off with an e-mail that announced the program. Realizing that sales associates had limited access to computers at work, the program rules, qualifications, and colorful images of the incentives were featured in a brochure that was sent to all potential participants. The brochure included a form to track sales and the redemption order form. Points, awarded for sales of KitchenAid appliances, were redeemed for the featured incentives. KitchenAid targeted specific products that they needed to push by giving them additional point value. Overall sales were maintained because points were awarded for sales of all items in the KitchenAid line. Receiving the brochure at the onset of the program enabled the participants to "aim high" and "earn big!" Associates set personal goals to earn specific awards featured in the brochure. A push-through component allowed Regional Managers to earn a merchandise bonus based on their region's sales volume, ensuring that they would encourage the participation of their sales force.

Objective: The KitchenAid Round Up is a clear example of how a company can use an incentive program to manage a mix of products as well as gain an overall increase in sales, which is precisely what KitchenAid wanted to do with their fourth-quarter sales incentive. To maximize participation in the program, KitchenAid designed the "Round Up" campaign to capture the participants' attention with a "call to action." Also key to the program's success was its clear structure and easy-to-understand rules.

Supplier: Design Incentives/Promotivators (Livonia, MI)

Sponsor Assocication: IMA

Results: 97% of the trade partners (retailers) answered the call to Round Up sales during the promotion period of October 1 through November 30. During that time, KitchenAid sold the desired mix of appliances and overall sales increased by 16% over the same period the prior year. The participants were very enthusiastic about the premiums offered as evidenced by the fact that award redemption was 25% higher than the previous year's program.

Award Type: CIRCLE OF EXCELLENCE

Award Date: 2002