It’s natural to think that growth just happens. Except for a few rare cases, growth of a product line arises from positive measures taken. Here is an example of what the “process” looks like. It reveals why an up-front effort is necessary, but also how attractive numbers can be one day when the benefits of the early efforts start to materialize.
The setting: A chain store in a small city, one of a few hundred across the country. It is far away from our office and receives the benefit of no advertising.
The first stage of growth with that store was to secure the account in the first place. This means that the store has our product added their computer system and awaits the opening inventory as determined by their head office. That inventory eventually arrives and is placed on a shelf, high up, with one facing. Not exciting, but a foot in the door.
The next step was for us to send a representative to secure permission to install the mobile rack. Permission granted, rack sent.
The next step was to organize a live demonstration for consumers. When our rep returned to the store for the demo, the rack had not been set-up yet. In fact, it had to be found, buried in the “back” with other boxes in the receiving area. The demonstrator organized the placement of the rack in the proper position and placement of the store’s inventory on the rack. Up to that point, the store had sales of 4 X 909 mL bottles by the end of April, year to date, 2011. In other words, one bottle per month. Yet, on the day of the first consumer demonstration in that store, 27 bottles were sold of the 55 that were in stock.
In June, we followed-up, to see whether there was an “after effect” to the exercise. The store was down to 3 bottles of inventory, and was awaiting arrival of another 48 bottles.
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In August, a further follow-up revealed that the store had sold 75 bottles year-to-date, 55 in stock, and 4 sold that week alone.
Summary: A store that originally did not carry our product at all was brought into the system, began by selling an average of 1 bottle per month and was eventually helped to increase this to a bottle every three days, with the trendline still increasing. That store is now an example to others in the chain, with reproducable steps that can be taken elsewhere. Regional Managers notice such things, and word will spread within that organization. We will help this along by asking to be invited to their internal dealer show next spring
Winning Brands has not even stratched the surface of the potential of its retailers. We are taking a two step approach; steadily increasing exposure to new retailers, while following up in the background to create “hot spots” within existing retail groups to show what is possible through attention to detail at the local level. While such efforts are time consuming, the advantage of our business model is that our product is consumable. A certain percentage of customers will repurchase when they are satisfied and need to replenish. There are far more than 100,000 suitable locations in the USA where 1000+ Stain Remover could be sold. Every 1,000 stores that sell 3 standard size bottles per week delvers approximately $700,000 in revenue, annually.
That is the process by which 1000+ will broaden itself into the market and become a household name. It has less to do with luck and more to do with consistent effort to A) Develop and manufacture a terrific product; B) Expose the product to get your foot in the door with early adopters; C) Keep pounding away at the process, utilizing systems wherever possible to make results predictable; D) Begin to benefit from repeat sales, and E) Evenutally gain the business of “late” consumers (and retailers) who prefer to go with something that is already known and “approved” by other consumers/friends/family.
The huge advantage that Winning Brands has is that its business model is sensible and therefore easily understood. It is increasingly likely to succeed because it has survived the most difficult early days, and now has growing momentum with various interested parties.
