It is difficult for a consumer product manufacturer to know exactly where its product is sold. In our case, this is due to the following reasons:
- Distributors, who are “intermediaries” in the supply chain that buy from the manufacturer and sell to independent retailers, do not usually provide the names of their accounts to manufacturers. This is because distributors worry that a manufacturer will bypass the distributor in order to sell directly to their retail account. In the case of Winning Brands, sufficient trust has been earned that this information is now increasingly provided by request, but not always.
- When distributors do provide this information, it is not an automatic, nor recurring, event. We must request it, and must sometimes work hard to obtain it. When it arrives from several sources it is in different formats. Therefore, reporting periods covered by the distributors, and details, are not identical.
- Retail chains have the right to determine which of their stores, within their banner, have inventory at any given point in time. It has happened several times that a larger retailer will provide the distributor with their list, at our request, and will state that the product will be availale in their locations in due course, but not necessarily everywhere immediately due to a roll out schedule that is not disclosed. In those locations, the product can still be ordered by consumers who walk into the store asking for it because the product is in the database of available SKU’s.
- Some retail banners have outlets that are managed by their corporate headquarters, while others are franchised, or a mix.
- Some distributors have minimum order requirements, causing small retailers to remain out-of-stock until the minimum threshold is achieved by combining an order of Winning Colours with other paint accessories.
- There are stores that do carry Winning Colours that have never been reported to us.
- There are stores that have purchased from a distributor initially, but may not have reordered for any number of reasons, including the fact that they do not deal with the distributor any more.
- Store change hands and alter their product lines.
- Stores go out of business.
In other words, the Store Locator function serves as a convenient tool for consumers. It approximates to the best of our ability the distribution of consumer “points of purchase” across the map. If this tool were not available, there would be no method for website visitors to learn about possible outlets near the consumer’s residence. It is highly beneficial for the consumer, and therefore for Winning Brands and its shareholders, that some mechanism exist for this purpose. Most consumer product brands do not even attempt to maintain such a record because of the challenge that this process represents. Retailers themselves only show their own locations on their websites; that would be of no value to visitors to www.WinningColours.com or www.WinningBrands.com.
Accordingly, it is a model that works well and serves an important need. I am proud of the work that our team does in maintaining this database.
Like all models that deal with large data streams that are originated manually, there is a certain statistical margin for error, therefore it is the general trend that matters from a shareholder perspective. We have developed a protocol to begin tracking numbers to reveal these trends.
As of today, the point of purchase locations in principal markets are as follows:
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The list above does not include locations internationally where tests are being carried out, nor our Ambassador’s locations. Please note that these numbers may go through short term dips from month to month. This arises from our culling the database periodically to adjust obsolete information.
The business goal is to increase the velocity, or turnover, of inventory in these locations. There are many factors affecting this. A number of techniques are being considered to foster enhanced efficiency in this regard. Some things are very basic, such as requesting better shelf locations (to avoid being placed up too high or down to low, or to increase the number of “facings” from one to two or three – perhaps even a merchandising display unit. Other initiatives can include co-op advertising, in-store demonstrations, conventional media support, etc.
Several things set Winning Colours apart from a simple product idea that either flies or flops within a short time. Firstly, the culture that governs Winning Brands relationships is one of long term planning and perseverance. People who deal with us understand that we are not a “here today, gone tomorrow” half hearted line extension. We are passionate about Winning Colours Stain Remover and it shows. Therefore, generally speaking, retailers are willing to work with us through the early formative period as we build up the in-store turnover.
Furthermore, Winning Colours Stain Remover is a terrific product. We produce and offer something really worth having in the home. As people discover what Winning Colours can do for them, the number of product fans grows. This happens within store staff groups too, and eventually advocacy for Winning Colours can be found within the stores themselves.
Additionally, the problems that Winning Colours solve, a myriad of spills and messes, occur in a large and constant quantity. What we do is not a “fad”. Society is not going to stop preferring “clean” to “grungy” any time soon. This means that we have a number of fundamental positives working for us as we strive to increase awareness amongst retailers and their consumers of the World’s Most Versatile Cleaning Solution.
We are confident that the store count will increase in 2011, that our consumer base will increase, that our production will increase, that our sales will increase and that by all measures that indicate a going concern, Winning Brands will become an increasingly attractive and successful company.
