2021 GAMEBOOK - Mega Group Inc.

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2021 GAMEBOOK - Mega Group Inc.
2021 GAMEBOOK
2021 GAMEBOOK - Mega Group Inc.
TO REWORK
                   TO SHARE
          TO REKINDLE

                            TO RENEW
 TO INNOVATE
               TO REBUILD
         TO ENGAGE                      TO FOCUS

                TOGETHER
TO REIMAGINE                                       TO DELIVER
           TO LEARN
                        TO WIN
2021 GAMEBOOK - Mega Group Inc.
TO PARTICIPATE             TO PERFORM
                                  TO RELAUNCH
TO ACCELERATE

                                      TO EXECUTE
                                 TO REESTABLISH

                    TO GROW                       TO RECREATE

                  TO RETOOL           TO INSPIRE

   TO REINVENT
                                  TO COMMIT
                   TO SUCCEED

                                  FOR MEMBERS
2021 GAMEBOOK - Mega Group Inc.
02

     WHY
           For our Board of Directors and Mega team, our 2021
           Game Book theme of ‘All In’ is the battle cry and focus
           of our second Game Book. We know that our strength
           comes from our numbers and, with over 700 members,
           when we decide to go ‘All In’ not only are our members
           successful, so are our vendors and all stakeholders.

           One of our most recent examples of ‘All In’ is our
           partnership with AVB Marketing. Both organisations have
           committed fully to offering our members and vendors
           the tools and expertise that they need to successfully
           and confidently embrace the new, omni-channel retail
           reality. Together we will evolve member websites into
           high traffic e-commerce corridors that convert qualified
           leads into customers for life.

           Our goal is that all of our members, vendors, shareholders,
           and partners join us by committing to being ‘All In’ so
           that we can build on our success of 2020 and continue
           to be stronger together.

           When we go alone we can only go so far, but when we go
           “All In” together, we can go endlessly.

           Mega Group Leadership Team
2021 GAMEBOOK - Mega Group Inc.
03

”
THE STRENGTH
OF THE TEAM IS
EACH INDIVIDUAL
MEMBER. THE
STRENGTH OF
EACH MEMBER
IS THE TEAM.
2021 GAMEBOOK - Mega Group Inc.
04

           06                          18
CONTENTS

           ALL IN FOR MEMBERS          ALL IN TO REINVENT
           06 2020 ACHIEVEMENTS        18 MESSAGE FROM THE CHAIRMAN
           08 MEMBER CENTRICITY        19 LEADERSHIP COMMITTEES
           10 THE MEGA SELLING GROUP   20 MESSAGE FROM OUR CEO
           14 WHY MEGA                 21 ALL IN TO REINVENT
           16 OUR BELIEFS              22 THE 4 PILLARS OF SUCCESS
                                       23 OUR 4 KEY STRENGTHS
                                       24 MEGA LEADERSHIP PRINCIPLES
2021 GAMEBOOK - Mega Group Inc.
05

26                                    48
ALL IN TO COMMIT                      ALL IN TO EXECUTE
26 THE MEGA SEVEN                     48 ALIGNMENT GRID
27 FOUR KEY INITIATIVES               50 METRICS AND KPI’S
28 M1 GOALS GRID
30 M1 BRANDSOURCE & MEGA AFFILIATES
32 M2 GOALS GRID
34 M3 GOALS GRID
36 M3 ALTA ADVANTAGE
38 M4 GOALS GRID
40 M5 GOALS GRID
42 M6 GOALS GRID
44 M6 UNIQUE APPROACH TO CREDIT
46 M7 GOALS GRID
2021 GAMEBOOK - Mega Group Inc.
06

         2020
         ACHIEVEMENTS
                                           Re-engineered
                                           Motion Picture
                      New                  Marketing
                      Introducing          Calendar
                      BrandSource
        New           Outlet
        Introducing                                         Shareholder
        BrandSource                                         ROI target
        Sleep                                               exceeded by

                                                            30%

                                    Launched
                                    B2C e-mail
                                    program!

     Mega
     safely
     navigated                                         2 NEW
     through                                           Member
     C-19 with                                         communication
     no business                                       tools launched:
     interruptions
                                                       Mega Power
                                                       Hour and
                       Renovation                      BrandSource
                       project:                        Marketing
                       Groves' TV                      Sales Warrior
                       & Appliance                     Webinar
                       Centre
2021 GAMEBOOK - Mega Group Inc.
07

Launched
the first ever
Spirit Book
and Gamebook!                            Executed                       Net Growth
                    1
                    64
                                         B2BWave                        of 19 new
                                         solution                       Members
                                         for Virtual                    and 49 new
                                         Buy Fair
                                                                        storefronts
                         1st Edition

          OK
 SPIRIT BOOUP
 MEGA GR

                                               20+ E-commerce
                                               website launches                All Members
                                               Sold E-commerce                 successfully
                                               to 35 Members                   completed the
                                                                               C-19 Recovery
         GAMEBOOK                                                              phase

   Sold 8 new
   websites
   to reach
   a total of                          Re-launch                Executed
                                       of the POWER             Migration
   100+                                Merchandising            to Cloud for
   Members                             newsletter               Platform
   Websites                                                     employees!      Zero
                                                                                Members
                                                                                out of business
                                                                                due to C-19
                                                                                disruption;
                                                       Acquisition              Bad debts
                                                       of Boucherville
                                                       Office                   < $50,000
2021 GAMEBOOK - Mega Group Inc.
08

     MEMBER
     CENTRICITY
     When we align our interests
     with our Members, WE ALL
     WIN IN THE LONG-TERM!

     FOUR TENETS OF                    UNDERSTANDING
     MEMBER CENTRICITY:                MEMBER NEEDS:
     1 Not all Members have            1 Walk a mile in our
       the same need for Mega            best Members' shoes
       programs and services             and invent on their behalf.
       Competitive Advantage.

     2 Focus Mega’s efforts            2 Well designed programs,
       on those Members                  services and Member
       that will benefit most            service innovations
       and generate the greatest         align with Member needs
       growth and long-term value.       to reduce operating costs.

     3 Quantifying the value           3 Co-create with our
       of individual Members             best Members.
       and determine the appropriate
       spend to acquire and retain
       Members.
                                       4 Member needs are
     4 Member relationship               a moving target.
       management
       serving our Members better!
09

MEMBER CENTRICITY
STRATEGY:
1   Define and identify the ‘right’ Members.

2 Understand the greatest current and future needs.

3   Build services, programs, systems, processes
    and infrastructure to serve the ‘right’ Members.
4 Build sales and marketing strategies
    to attract and retain the ‘right’ Members.

5 Configure services and programs
    to serve Members.

6 Learn and fine-tune through Member interaction.

7   Build the metrics to support Member Centricity.

8   Reorient and fine-tune the Mega CRM
    (Customer Relationship Management) system.

9 Increase long-term profits:
    Member acquisition
    Member retention
    Member development
10

       THE MEGA SELLING GROUP
       Member-owned and Member-driven.
        Over 700 members coast to coast
        Over $2 billion in retail sales
        Canadian Chapter of Associated Volume Buyers (AVB Inc.)

     BRITISH
     COLUMBIA
        15 - 34
        44 - 62                   ALBERTA
                                       13 - 14
        53 - 62
                                       45 - 55
                                       46 - 47

                                                      PRAIRIES
                                                           13 - 15
                                                           69 - 75
                                                           39 - 50
11
 3 KEY CUSTOMER CHANNELS WITHIN MEGA GROUP:
     BrandSource
     Our most engaged Members benefit from complete marketing solutions and professional services
     while maintaining their local identity as an Independent Retailer: that’s what it means to be
     Powered by Brandsource.
     Affiliates
     Join a meaningful network of like-minded businesses using shared services to compete
     and grow in your respective retail segment.
     Groups
     Other groups also rely on Mega’s industry-leading central billing, finance and ancilliary services
     for their members.

                                                 2020                       2021 GOALS
            CHANNELS                   MEMBERS        STOREFRONTS        MEMBERS        STOREFRONTS

            BRANDSOURCE                  90              124                98              132
            AFFILIATES                  312             414                324              426
            GROUPS                      320             400                335              415
                                        722              938                757             973

ONTARIO
WEST
   11 - 11
                         QUEBEC
   55 - 82
                               17 - 25
   54 - 66
                               36 - 65                                              ATLANTIC
                                                                                          15 - 19
                               52 - 83
    ONTARIO
    EAST                                                                                  30 - 34
          6 - 6                                                                           34 - 45
          33 - 41
          42 - 47
12

     THE MEGA SELLING GROUP
     In business for over 55 years!

                          Canada's
                          premier
                          tool for
                          matching
                          vendors
                          to retailers.
13

We are laser-focused on the consumer’s home, including every product
category of the appliance, consumer electronics, floor covering, furniture and
mattress industries.
Our strategic partners are market-leading, globally recognized brands.
Our long-term relationships are supported by a proven track record of growth
and collaboration with the vendor community.

                     400
                   VENDORS
                                               +

                                        Proud key
                                        customer
                                        and strong
                                        supporter of
                                        Canadian
                                        manufacturing.

                                        State-of-the-art technology designed
                                        to customise billing and payment
                                        processes for Vendors and Members!
14

     WHY MEGA

      1                               2

           CENTRAL                         EXPERT
           BILLING                         ACCOUNTING

          Mega invests in                 A custom financial
          businesses not                  management solution
          inventory, and                  that improves your
          offers a complete               profitability while saving
          vendor solution.                you time and money.
                        BRANDSOURCE

      6                               7

                                           MARKETING

          BrandSource brings              Mega's Marketing
          its Members a full              Powerhouse uses
          suite of services,              a systematic, multi-
          all designed to                 faceted "Motion
          manufacture sales.              Picture" approach to
                                          connect with today's
                                          consumer.
15

                  All of Mega's Services are centred around accelerating Member
                  8P operational performance: Profitability, Process, Product,
                  Purchasing, Pricing, Presentation, People, and lastly, Promotion.
         S        These 8 Business drivers help propel your business success forward.

                                                                                MERCHANDISING
3                             4                               5

     CONSUMER                       BUSINESS
     FINANCE                        BASICS

    Better payment                 Core business                   Our category experts
    options to increase            service offering that           work for you to
    your average ticket            is accessible and               develop the best
    by as much as 20%.             affordable to all.              programs with our
                                                                   key vendors.

                                                                                FUNDAMENTALS
8                             9                              10

     WEBSITE                        STORE
     AND DIGITAL                    DESIGN
     SERVICES

    Our fully integrated           Mega's Store Design             Failing to plan is
    websites are powerful,         services help you               planning to fail.
    dynamic sales tools,           elevate your consumer’s         Mega's Fundamentals
    and in 2021, the               shopping experience.            provide you the
    Alta Advantage will                                            framework that will
    further enhance your                                           send your business to
                                                                   new heights!
    competitive edge.
16

     OUR BELIEFS

         B E L
        BUY LOCAL          E-COMMERCE          LEAD
        Our Members        The digital         As our world
        are anchors        acceleration of     changes, our
        in their           retail has made a   Members look
        communities        seamless omni-      to us to LEAD
        and have an        channel expansion   now more
        authentic, local   of brick & mortar   than ever. Our
        story to tell.     an essential part   philosophy
        The pandemic       of meeting the      of servant
        has accelerated    shifting needs      leadership
        the movement       and wants of        leads us to
        of consumers       today’s evolving    be all in to
        to live within     consumer. It is     help them as
        and support the    at the core of      they navigate
        communities        our Members’        through an
        they reside        marketing           ever-changing
        in, and our        strategy.           retail world.
        Members are
        ideally suited
        to meet the
        needs of these
        customers.
17

    I               E F S
INCLUSIVE          EASY AND          FOCUS           SELLING
Member-Vendor      DELIGHTFUL        Our FOCUS is    MINDSET
Centricity         We strive to      lasered in on   We believe
is central to      deliver an        developing      SELLING is
fulfilling our     EASY AND          the requisite   like breathing
mandate and        DELIGHTFUL        systems and     and SALES are
essential to       experience        tools that      the oxygen
Members as         by creating a     allow our       businesses
they meet their    seamless, fluid   Members         need to thrive.
most critical      channel between   to achieve      Our role as a
needs on the       Vendors and our   growth and      Selling Group is
road to success.   Members.          success.        to transfer this
                                                     mindset to our
                                                     Members so
                                                     that it becomes
                                                     deep-rooted in
                                                     their every day
                                                     actions.
18                                         Richard Wall

                                                 MESSAGE FROM
                                                 THE CHAIRMAN
                                 P hil Brewer

               Robert Coleman
                                                 Your Board is ‘All In’ together with our shareholders, members,
                                                 vendors, partners, and associates to drive Mega to new heights this
                                                 year!
                                                 When the global pandemic hit right after our successful Las Vegas
                                                 Summit in partnership with AVB, our teams combined with our
                                                 members and vendors had to immediately react. The Board would
                     Michel Gaudreau             like to recognize the courage and effort from everyone to get through
                                                 the survival phase of our plan. As a result of this outstanding effort,
                                                 we successfully met our promise of not leaving any members
               Jennifer Greene                   behind. Given many positive contributions, we moved into the
                                                 recovery phase in the middle of the year to realize unexpected sales
                                                 increases. With the success of 2020 we now can build our second
                                                 Game Book “All In”.
                                 Konrad Kozan    We are excited by our strategic partnership with AVB Marketing
                                                 and as our staff, members, and vendors go ‘All In’ together, we
Wayne Hambly                                     know that we will continue to gain market share. As the number
                                                 one selling group in Canada, this ‘All In’ together commitment will
                                                 continue the growth and success of the independent retailer. The
                                                 launch of our Alta Advantage website platform is the result of our
                                                 years of partnership and collaboration in supporting the success of
                        Denis Riel
                                                 independent retailers.
                                                 We know that by bringing all of our stakeholders together under
                                                 a powerful set of key initiatives for this year's Game Book, ‘All In’
                                                 together will deliver another successful year.
  Gerrard Stubbe                                 With the never-ending commitment of your Board of Directors
                                                 working together with the Mega team, we will execute this year's
                                                 Game Book at the highest level.

           Board Of Directors                    On behalf of your Board and all of us at Mega, be safe, and be well.
           Richard Wall                          Sincerely,
           Phil Brewer
           Robert Coleman
           Michel Gaudreau
                                                 Richard Wall
           Jennifer Greene
           H. Wayne Hambly

                                                                        ALL IN TOGETHER
           Konrad Kozan
           Denis Riel
           Gerrard Stubbe
19

LEADERSHIP COMMITTEES
AVB PARTNERSHIP                           BRANDSOURCE
                     BRANDSOURCE
   COMMITTEE                               COMMITTEE

     Kim Yost           Don Burnett          Don Burnett
    Kevin Leier           Kim Yost         Colin MacPherson
 Luc-André Cormier    Michael Vancura        Julie Hambly
   Jim Ristow            Lora Lihet       Shelly Gabriele Gale
   John White           Robin Brais           Robin Brais
  Dave Meekings      Luc-André Cormier       Jason Poulin
                                            Serge Prévost
                                                Jim Rice

   FINANCIAL         INFORMATION         MARKETING AND
    SERVICES         TECHNOLOGY          DIGITAL SERVICES

    Kevin Leier        Wayne Brecht       Luc-André Cormier
   Colleen Yeager        Kevin Leier           Kim Yost
                                           Michael Vancura
      Kim Yost            Kim Yost
                                             Don Burnett
  Michael Vancura     Michael Vancura      Michael Borecky
 Luc-André Cormier   Luc-André Cormier        Sylvie Troilo
    John Power          John Power            Jay Jensen
                      Michael Borecky      Katherine Kocur
                                           Jocelyn Turgeon
                                            Stephane Patry

                       PEOPLE &                SALES
MERCHANDISING        DEVELOPMENT

   Mike Vancura        Jenny Lewis           John Power
      Kim Yost           Kim Yost              Kim Yost
 Tatyana Ouvalieva      Kevin Leier       Chris Hetherington
   Isabelle Osmar     Chelsea Traves      Luc-André Cormier
                      Amber Gaudet         Michael Vancura
                      Nadine Genest         Neal Krawchuk
20

     MESSAGE FROM
     OUR CEO
     Ladies and Gentlemen,
     As we prepare to execute our second Game Book “All In” for 2021, we continue our
     focus on adding value to our members, vendors, partners, and stakeholders. We
     have maintained our core strategies with our pillars, strengths, and beliefs. Our four
     key initiatives for this year have been updated to reflect the importance of our digital
     acceleration and our member and vendor centricity. We will continue to execute
     on several of our key initiatives introduced in our previous Game Book. Examples
     of these initiatives are the growth of our web services, rolling out of BrandSource
     Outlet and Sleep departments, refresh of Appliances and the introduction of our
     Marketing Event calendar.
     Along with Jim Ristow, CEO of Associated Volume Buyers (AVB) in the US, I am
     so thrilled with our collaboration and reinvention with AVB Marketing to provide
     the ‘secret sauce’ and the ALTA Advantage that will bring an industry leading
     e-commerce solution to our Mega Selling Group and ultimately our members.
     This year's Game Book and our future Game Books will be driven with the mindset
     of constant reinvention. Companies fail for many reasons, but one of the most
     common – and easily avoidable – is the failure to reinvent. Change is inevitable,
     and we have decided to drive that change and not be driven away by it. We will
     disrupt, not be disrupted. By choosing to deliberately reimagine our own status
     quo, we will secure a strong future for Mega and our members, vendors, partners,
     and stakeholders.
     When it comes to reinvention, getting started is the hardest part of the task. We have
     started with our Game Books and our soon to be completed and communicated
     three-year revolving roadmap. The only way to ward off the decay of stagnation is
     to practice ongoing reinvention. We have embraced several of the most important
     principles of reinvention. Imagine the possibilities, reject limits, aim beyond, fuel
     passion and encourage courage are just a few of these principles.
     We would like to thank all of our stakeholders for their ongoing support and to you
     our valued team members, shareholders, members and vendors – get ready for a
     year of reinvention and continued success!
     Sincerely,

     Kim Yost

                                   ALL IN TO REINVENT
21
                                                          Anne Cooke

              Kim Yost

                              Kev inLeier                Micheal Vancura    Luc -André Cormier

     Senior Management Team
     Kim Yost
     Anne Cooke                             John Power
     Kevin Leier
     Michael Vancura
     Luc-André Cormier
     John Power
     Jenny Lewis                                              Jenny Lewis

       te n ti al
Our po
   a wa it s !

  RETOOL T REIMAGINE T REWORK
REBUILD T RECREATE T REESTABLISH

 RELAUNCHT REKINDLE T RENEW

                = REINVENT
22

         THE 4 PILLARS
         OF SUCCESS
                        1                                         2
      FINANCIAL SERVICES                         MEMBER CENTRICITY
         We don’t just grant credit,               We are truly committed to the
        we facilitate business for our              success of our Members and
        Members! Our streamlined billing           their businesses. We ensure that
        system is our primary service. What       our Members are well represented in
          stands us apart from within the         every decision we make. Each of our
        industry is our unending dedication        employees is focused on creating a
       to exceeding the expectations of our         positive and valuable experience
              Members and Vendors.                          for our Members..

                        3                                         4
         NATIONAL SCALE                                   INTEGRITY
          We are the gateway for the              We treat our customers honestly
       Independent Retail channel across          and respect the privacy, security
     the country, making it easier for more      and confidentiality of our Members.
       than 400 Vendors to transact with         We place a focus on trust and honesty,
      over 700 Members. We maximize the           always conducting business with the
     business potential of these relationships    highest level of transparency. Acting
     by identifying synergies and establishing    with respect and integrity has always
     mutually beneficial connections. We play    been one of our key values and remains
     matchmaker to help grow your business!       a fundamental part of our corporate
                                                             identity today.
23

                                                    OUR 4 KEY
                                                   STRENGTHS
          1                          2                            3                         4
RETAIL                    MARKETING                    VENDOR                      COLLABORATIVE
EXPERTISE                 POWERHOUSE                   PARTNERSHIPS                ADVANTAGE
For more than 55          Developed by our             Mega maintains              Mega represents more
years, Mega has been      passionate specialists       fruitful partnerships       than 700 Members
making independent        and strong partners,         with more than 400          from coast to coast,
retailers stronger.       Mega’s powerful systems      vendors, through            leveraging a combined
Our organizational        and tools have made us       established trust built     clout of $2 billion in
structure, hiring         the top home furnishings     on a 55 year perfect        retail sales. As
practices, and Mega       marketing services group     payment record. Our         we come together
                          for the Canadian Home        vendor partners are
University programs                                                                ‘All In’, we help
                          Furnishings industry. Mega   global, market-leading
are designed to attract                                                            retailers improve their
                          Group is strengthening       brands that understand
the best expertise and    its strategic alliance                                   return on investment
top skill sets across                                  the importance of the       in a variety of ways.
                          with AVB Marketing. By
the 8P’s Business                                      independent retailer.       We facilitate
                          transitioning its website
                                                       They support Mega as
Drivers of our Business   solution to AVB's holistic                               economies of scale
                                                       their essential service
Fundamentals. Mega’s      and fully integrated                                     that drive costs
                                                       provider and recognize
key strength is the       omnichannel retail                                       down. We provide
                          platform. Members will       our role as the key
integrated focus that                                                              programs, systems
                          be equipped with the         connection point
ensures every possible                                                             and tools that come
                          tools and expertise to       with the independent
area of value is being                                 channel. Our Vendor         with steep barriers to
                          confidently embrace the
leveraged to ensure                                    Selling Guide brings        entry for Independent
                          new retail reality. The
member centricity.                                     together our members        Retailers. We share
                          Alta Advantage promises
Making it happen          members online solutions     and vendors like an         our cumulative
in-store or online,       that are easy to deploy,     adult matchmaking           knowledge and
that’s what it means      maintain, and upgrade.       service for the benefit     expertise in support of
to be “Powered by         We operate an always-on      of both parties. These      independent retailers
BrandSource”.             strategic development        connections come            to help them reduce
                          process that relies on       with a proven track         demand on daily
                          data-driven market           record of performance       operations and grow
                          knowledge and consumer       and results. Today, we      their business.
                          insight to deliver hyper-    continue to build a
                          local marketing at scale.    unique symbiotic and
                          We craft brand stories       vendor centric role
                          with creativity and care,    that is beneficial to all
                          as if every dollar was our
                                                       parties in their efforts
                          own. We optimize the mix
                                                       to grow and thrive.
                          of traditional and digital
                          media with tools that
                          inform our decisions.
24

         MEGA 12 LEADERSHIP
         PRINCIPLES
     1   Bias for Action                             4   Earn Trust
         In a business world where “speed wins”,         Leaders are team players. They
         the ability to be agile is an advantage.        listen attentively, speak candidly,
         Leaders are quick to respond with a sense       and treat others respectfully.
         of urgency. They value calculated risks         They demonstrate the principles
         and seek diverse perspectives but rely on       of servant leadership and inspire
         strong judgement and good instincts.            others to do more.

     2   Deliver Results                             5   Focus on CANI
         Leaders focus on the key performance            Constant and Never-ending
         indicators for their business. Their            Improvement. Leaders demand
         maniacal focus on business drivers such         innovation and always find ways
         as sales delivers results. Sales is not         to improve. They are curious and
         part of the game; it IS the game!               open to new ideas.

     3   Dive Deep                                   6   Frugal
         Leaders operate at all levels, stay             Leaders can accomplish more with
         connected to the details, audit                 less, are creative, persistent, and
         frequently, and dig down to the                 view constraints as an opportunity
         root cause.                                     for resourcefulness, cost savings,
                                                         and invention.
25

7   Hire and Develop                         10 Ownership
    the Best                                      Leaders are owners. There is no
    Leaders recognise exceptional talent,         problem too big or too small. They are
    and willingly move them throughout            results driven. They take charge and
    the organisation. Leaders recognise           follow through, ensuring the results
    their impact in coaching others, and          they committed to are realised.
    always seek to improve themselves.

8   Member Obsession                         11   Speak Up
    Leaders start with the goal in mind           Leaders respectfully challenge decisions
    and work backwards, working                   when they disagree, even when doing
    vigorously to earn and keep customer          so is uncomfortable. They work to get
    trust. Our leaders pay attention to           consensus but do not compromise for the
    competitors, but they obsess over             sake of social cohesion. Once a decision is
    Members.                                      made, they commit fully.

9   Never Settle                             12 Think Big
    Leaders have relentlessly high                Thinking small is a self-fulfilling
    standards, continually raise the              prophecy. Leaders communicate their
    bar, driving their teams to deliver
                                                  vision for a bold direction that inspires
    high quality products, services, and
                                                  results. They take risks on great ideas
    processes. Leaders ensure that defects
    do not get sent down the line and that        with courage and conviction.
    problems are fixed so they stay fixed.
26

     THE MEGA SEVEN

     1   BRANDSOURCE &
         MEGA AFFILIATES
                             The Mega Seven aligns all
                            aspects of our business and
                            provides clarity and focus to

     2
                            our 4 key initiatives for 2021.
                                     These four initiatives:
         MERCHANDISING         (1) grow revenue, (2) accelerate
                                   digital transformation and

     3
                            e-commerce, (3) recognise the needs
                            and priorities of high value members
         MARKETING &          and vendors, and (4) successfully
         DIGITAL SERVICES     execute with constant and never-
                            ending improvement. Each aspect of

     4
                            our business will be given the utmost
                                      focus and attention.
                               Our four key initiatives are built
         SALES                 into our goals and performance
                                 incentives, ensuring that the

     5
                             leadership team is accountable for
                                          execution.
         INFORMATION
                             We eagerly share our business plan
         TECHNOLOGY
                            with all our stakeholders for two key
                            reasons. One, we value transparency

     6
                              and are proud of the initiatives we
                               are working on. Two, it holds us
         FINANCIAL
                             accountable for the results. Each of
         SERVICES
                             the M7 divisions will be developing
                               separate plans with their teams

     7
                               which will support our success.

         PEOPLE &
         DEVELOPMENT
27

THE 4 KEY INITIATIVES

                     1                                               2
        Grow Revenue                                Digital Acceleration
Selling Services and adding New Members          Mega delivers its promise of a cohesive
is the life blood of our organization. We will   retail sales strategy by helping our
continue to grow through clearly defined         members implement seamlessly integrated
objectives:                                      omni-channel paths to purchase. In 2021,
• Acquire new Members in BrandSource,            we will accelerate our development by
   Affiliate and Groups channels                 focusing on:
• Expand our base of approved vendors            • Migration to the Alta Advantage
   across high potential categories                as the best website an independent
• Increase same-store sales through                Member can buy
   higher program engagement                     • E-commerce adoption that drives sales
                                                 • Digital Marketing that reaches more
                                                   qualified shoppers

                     3                                               4
      Member-Vendor                                          Execution
        Centricity                               We believe simplicity beats complexity to
Strong relationships enable Mega to fulfill      accelerate results and innovation amidst a
its role as the key connection point between     changing marketplace. In 2021, Mega will
the independent retail channel and its           adopt a culture of Constant and Never-
vendors. We will heighten our position of        Ending Improvement (CANI) to achieve
strength if we:                                  performance excellence at the individual,
• Define and identify our high value partners    team and organizational levels. By doing
• Understand their greatest current              things right the first time, we can:
   and future needs                              • Build confidence in our ability to execute
• Design innovative programs and services        • Improve accountability
   that are aligned with those needs             • Deliver more value to consumers and
                                                   to stakeholders
30

               11                     BRANDSOURCE &
                                   BrandSource
                                                MEGA AFFILIATES
     Your consumer:
               BUSY JENNY                                                 MS. BOOMER
               Generation X Female aged 35 to 54 years                    Aged 55 years or more, she
               old. She represents 32% of customers who                   represents 40%+ of consumers in
               spent $2K or more on furniture last year.                  smaller markets (pop:
31

BRANDSOURCE +​                         Image​
                                      • Part of
Brand of the Future                  Community​
                                   • Built on Trust
Pyramid
                                       Vision​
                                   • Top of Mind
                                 • Store of Choice
                                        • #1

                                      Mission​
                               • Refocus and reimage
                                  to BrandSource +

                                 Pillars of Success
                               • Leadership price/value
                          • Dominant, tailored assortments
                         • Personalised/customised service
                    • Easy to shop/enjoyable store look and feel
                       • Hassle free integration of online and
                              in-store path to purchase
                 • Optimal mix of traditional and new social media
                “Unforgettable, personalised customer experience”

                                    Personality
               Outward expression of the​brand as if it were a person:
                          • Trustworthy • Down to earth
                    • Passionate • Forward focused • Spirited

                                     Character
                             Our purpose, beliefs, values:
                “Integrity in everything we do, at every touch point”

                              Idea We Want to Own
                               “Easy and Delightful”

New!
Website Optimisation: The New Alta Advantage
E-commerce Sales Growth
BrandSource Appliance re-launch
Showroom Category expansion

Continuing on with:
36

              3         THE ALTA
                        ADVANTAGE
      OUR #1 COMPETITIVE ADVANTAGE
     With more than 90% of consumer
     purchases beginning online, all roads
     lead to the internet.

     The Digital Services team’s priority is to bring our members the best website
     independent retailers can buy, and Alta is this website.

       A holistic and seamlessly integrated omni-channel retailing
       platform that connects with the consumer throughout her
       path to purchase from advertising, to website, to store.

     Powered by the Mega-AVB Marketing partnership, the Alta Advantage is
     more than a website. It tethers together the services that Mega offers and
     fine-tunes them to consistently drive, capture, and convert high volumes of
     qualified online leads into customers for life.
     From day one, a Canada-based team
     will work closely with members
     to quickly master Alta’s business
     management tools and extract the
     highest value from their investment.
37
ADVANCE YOUR GOALS.
SPEND LESS TIME DOING MORE WITH THE ALTA ADVANTAGE.

 SET IT & FORGET IT                                         MASTER ONLINE
 AUTOMATED PRICING UPDATES                                  MERCHANDISING
 • Promotional Pricing: Simply set your parameters          • Configure Custom Skus: Structure and scale
   in LINQ to automate promotional pricing and buy            your product references and synchronise
   back valuable time to run your price tags ahead of         inventory levels to streamline multichannel
   sales and promotions.                                      fulfillment.
 • Multi-Price Management: Maintain, review, and set        • Manage Product Catalogues: Manage
   multiple prices and LINQ will automat promotional          discontinued skus and end customer frustration.
   pricing updates at the stroke of midnight.               • Control Custom Catalogue Creation: Create
 • Automated Laundry Pair Pricing: New prices and             personalised catalogue and include your own
   promotions are accurately applied automatically            images, text, and custom skus.
   for your laundry pairs.                                  • Manage Product Views: Quickly configure
 • Seamless POS Integration: LINQ connects with               product views and highlight high-margin,
   your store’s POS, collects new product and pricing         on sale, or in-stock merchandise.
   information, and updates your website automatically.

FEATURES AND FUNCTIONALITY

     Mobile First Site                        Custom Content                     Product Catalog
         Design                           Your ALTA website conveys            Thousands of appliance,
    Seamless site formatting              your unique brand identity            furniture, mattress and
  and user-friendly experience            and displays your products.        electronics brands managed
        across devices.                                                                 for you.

   POS Integration and                     E-Commerce Ready                  Landing Page Design
    Managed Pricing                    Convenient one-page checkout,         Topic specific landing pages
 Set-it & forget-it MAP/PMAP            add-ons, and secure payment           increase impact of digital
 and competitive pricing rules.        gateways are mobile compatible             marketing efforts.
                                           for seamless customer
                                                 experience.

     Lead Generation                            Robust SEO                    Real Time Reporting
    Compelling content and                 Optimized content and                 Dashboards display
engagement tools generate high          catalogues capture top search         up-to-the-minute website
  volumes of qualified leads &          rankings and increase website           and digital marketing
  capture their contact details.                  entrances.                    performance metrics.

                                               ALL IN TO ACCELERATE
44

             6        A UNIQUE APPROACH
                      TO CREDIT

                 We invest in business,
                 not in inventory, offering a
                 COMPLETE BILLING AND
                 PAYMENT SOLUTION!

     Central billing is the heart of what we do, delivering
     a valuable centralised payables solution in a cost-
     effective way that will save your organisation time,
     money and effort. Timely and accurate invoice and
     payments processing is at the heart of a solid and
     successful cash flow management program.
     Three of the 8P’s business drivers – Profitability, Process, and
     Purchasing, can be dramatically altered using our service and
     can put meaningful dollars to your bottom line. Improving these
     drivers will lead to faster cash flow, optimized payment discounts
     and lower personnel costs.
     • Maximise your use of cash.
     • Leverage the group’s negotiating strength.
     • Instant credit worthiness to over 400 international vendors.
     • Realise efficiencies in payables management.
     • Support and monitoring of vendor claims on member behalf.
45

 Effective Inventory and                       In-Depth Analysis and
   Cash Management                                Timely Reporting
Inventory can be a company’s largest          Access a variety of real-time, secure
asset and, as such, requires a system and     reports online pertaining to all your
management plan. Our program helps            centrally billed vendors. Sales, Rebate
reduce your carrying costs and increase       and Credit reports along with timely
cash flow. We have centralised your           month end statements help you
payments and ordering so that you can         reconcile and keep your payables and
easily see exactly how much you owe           receivables current. Account balances
to what vendors. This enables you to          are all available on an aggregate basis
decide which vendors to pay and based         and give you the entire financial picture
on the best use of your cash and take full    of your cash flow at once, allowing for
advantage of Early Pay Discounts.             control and instant access.

  Outstanding Coaching                            Holistic Credit Line
     and Knowledge                                  for Flexibility
Our credit managers and industry              By offering a centralised credit line
experts average over 15 years of industry     that is not tied to specific inventory,
experience. We can help you manage            you are able to use as much or as little
and prepare for the seasonality and           as you wish with any of the approved
planning the business financial needs to      partner list that you deal with from our
ensure the continued long term success        over 400 vendors. This allows you to
of your business. This is what we do all      manage your product categories based
day every day.                                on current needs as well as consumer
                                              trends in product and supplier choices.

                                             ALL IN TO SUCCEED
d
50

         uccee         to rebuil
     To s                       d

         To win          to engage

                           to learn
          er for m
      To p
                     TO GROW
 To rei

                     r
       nven t
       all in
           To          innova
            mem bers         te
        for

           elerate        toge ther
     To acc
              To deliver
[ onstant
                                           51

        ith                c
     t w
S tar hy ?                 and
 your w                    ne ver-ending
     X                     improvemen t
    Everything we do will challenge
    the status quo. We will go to places
    we have never been before. As a
    result, we will never want to go
    back. Our vision and mission is to
    clearly differentiate ourselves from
    others, along with feeling the need
    to constantly and never-endingly
    improve. We strive to be smart,
    hungry, humble, and to live with
    purpose. We are obsessed with our
    members' success and strive to
    make a positive impact.

                         You mus
                                 t Know
                          our purp
                                   ose!
      s t  be o n
We mu     i on.
  a Mi s s
TO REWORK
                   TO SHARE
          TO REKINDLE

                            TO RENEW
 TO INNOVATE
               TO REBUILD
         TO ENGAGE                      TO FOCUS

                TOGETHER
TO REIMAGINE                                       TO DELIVER
           TO LEARN
                        TO WIN
TO PARTICIPATE             TO PERFORM
                                  TO RELAUNCH
TO ACCELERATE

                                      TO EXECUTE
                                 TO REESTABLISH

                    TO GROW                       TO RECREATE

                  TO RETOOL           TO INSPIRE

   TO REINVENT
                                  TO COMMIT
                   TO SUCCEED

                                  FOR MEMBERS
”
COMING TOGETHER
IS A BEGINNING.
STAYING TOGETHER
IS PROGRESS.
WORKING TOGETHER
IS SUCCESS.
          - Henry Ford
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