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Your favorite brand is no longer on your local grocery store shelf?
What did you do about it?
Putting Yourself in the Consumer’s
Shoes…
“The brand is the contract between the company and the consumer with the
terms of that contract written in emotions”
“Brand Loyalty Starts and Ends with the Consumer”, Pam Danziger; www.refresher.com/!pdloyalty. 2003
We are the Complete Where-to-Buy Solution
Some large CPG companies get 250,000 or more “where-to-buy” calls per year.
We are the one place to which they can send a consumer looking for any product and have it delivered to their door!
Our job provide a where-to-buy solution that is efficient, head-ache free and outstanding for the CPG company’s consumers.
Legally a Separate, Unique Business Channel
We operate a blend of a service, retail and fulfillment models that is an extension of the CPG manufacturer’s consumer affairs department.
As a service the CPG company retains much control over:The items that we sell, the romance copy, cross-
sells and images. No Channel conflict:
Our policy is to charge above SRP.
We Are The Innovators Within the manufacturer’s system, our business
model has been designed to mimic as closely as possible, that of a retailer:We purchase the productsWe make our profit from the retail mark-up.Our volume is referral based – the consumers
are sent to us via the call center and the manufacturer’s Internet site
We sell products over the Internet and telephone.
PromotionalOpportunities
Where to Buy Service Packages
Website Branded Landing Page
Customizable header
Link to our site
Complete pricing and order info
Cross-merchandising
Product Description
copy
Nutritional Info
Call Center
An Extension of Customer Service
Why Isn’t Product On the Shelf?
Millions of Dollars are Spent on Marketing and Advertising Budgets
Every Year ….
??? ?
Competition at Shelf is High
Private Label Brands Slotting costs The sheer number of
items Existing Products New Products
Out of Stocks
…To Name a Few Reasons
High Number of Existing SKUs
In 2004, an estimated 970,000 CPG SKUs existed.1
The average grocery store stocks 45,000 items. 2
1 “New Product Trends 2004: How to Beat the Odds and Create Transformational Products, Information Resources, Inc., 2/05, copyright IRI 2004
2 Food Marketing Institute, fmi.org/facts_figs/superfact.htm, 2004
Why Can’t I Find My Favorite
Brand?
New brands drive the majority of category growth
70% Of Category Dollar Sales Growth based on Total Food, Drug, Mass
For 12 Weeks Ending 3/23/03 vs Year Ago.3
# of New CPG Brand Product Introductions.12
12. Marketing Intelligence Service’s ProductScan Online database, 12/23/03
547
749
851931
426
612670
821
0
100
200
300
400
500
600
700
800
900
1000
2002 2003 2004 2005
Total Food & BeverageTotal Non-Food
30,000 NEW SKUs per Year are Introduced
3 IRI InfoScan reviews, Supermaket outlet only, 12 weeks ending 3/23/03 vs. YAG, analysis 850 subcategories
Limited Store Shelf Space
Manufacturers compete for shelf space so in some markets, some items lose out.
Most manufacturers don’t sell directly to consumers.
Consumers want to buy in small quantities which is inefficient for manufacturers to fulfill.
Direct-to-consumer selling positions the CPG company as a competitor with their retailers.
The Story of Baggies
Baggies got thousands of consumer where-to-buy inquiries.
Competition for shelf space had driven Baggies national distribution to under 50% nationwide.
We were turning our backs on our brand-loyal Baggies consumers!
Hefty looked everywhere to find a company to help us with these brand-loyal consumers.
Just like every other CPG company, Hefty had three options:
The Problem
1. Turn the consumer away.
2. Sell the products through an in-house system (i.e. do it themselves).
3. Pay a call-center/fulfillment company to provide the service.
Home Trends agreed to stock our Baggies.We sent to Home Trends all of the
consumer referrals. They sold the items at a premium
price.
The Ah-Ha Moment!
As I watched their sales progress and realized that this had the
potential to be a business model.
Brand marketers know that consumer brand loyalty is stronger as the product is used closer to the mouth.
Imagine the brand-loyalty to items with traditionally higher levels of brand loyalty!
After All…THESE WERE PLASTIC BAGS!!!
In June of 2000 I began working on the plan to start My Brands.
The challenge was to solve the manufacturer and consumer problem PROFITABLY.
I had Identified a Market Opportunity
Today
My Brands and I are thriving Our company is successful, profitable and
stable Today we have grown to employ 13 people
and 2006 sales will well exceed $2 million.
Our financial success has enabled us to reinvest in new technology …
• This will take the manufacturer’s and consumer’s experience to a new level.
Launching Fall ’06
The Where-to-Buy Consumer is High Income
Affluent20%
Upper Middle32%
Wealthy26%
Lowest4%
Low9%
Middle9%
65% fall into the income brackets of Upper Middle, Affluent to Wealthy!!
Recipe Listing with “Buy Now” Product Link
Coupons
New Ways to Understand, Promote to and Communicate with Consumers including…
Newsletters
How did I know that I had a great idea?
I knew about the consumer’s level of passion for brands.
I knew that the manufacturer’s of these brands did not want to sell directly to the consumers.
I knew that the consumer would pay a premium for the brands that they couldn’t find.
I knew that no one else was focused on solving BOTH the manufacturer’s and consumer’s problem.