395 Summit Point Dr., Ste. 1 Henrietta, New York 14467 888-281-6400 Suzanne Clarridge President/CEO.

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395 Summit Point Dr., Ste. 1 Henrietta, New York 14467 888-281-6400 Suzanne Clarridge President/CEO

Transcript of 395 Summit Point Dr., Ste. 1 Henrietta, New York 14467 888-281-6400 Suzanne Clarridge President/CEO.

395 Summit Point Dr., Ste. 1Henrietta, New York 14467888-281-6400

Suzanne ClarridgePresident/CEO

Are you committed?

Perhaps you should be!

1. It’s hard

2. Do your homework

Answer the questions…

all of them!

The Toughest Question

How long can you go without a paycheck?

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

Ken Arnold

Blackhawk Pilot Afghanistan

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

Bill ShastaEvent Manager

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.

We didn’t like any of these options so we tried something else!

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!!!

The Rolling Stones

Business Manager

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

Angel Investors Reaction in 2000

June 1, 2001

The first order – a case of Baggies went out the door.

January 31, 2002

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.

Enthusiastically Recommended and Endorsed

Charlene Bernard

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!!

Amanda Hogue

24 Cans for $38.64

+ Shipping

:$157.85

$198.49

=

Twice!!!

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.

I Answered the Questions

I am committed.

The Toughest Question

How long can you go without a paycheck?

Five years and three months!!(Thank you, Tom!)