90 Day HBC Sales Gain Success Stories* 

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(105)*  90 Day Sales Gain of $132 Million, New Item Speed to Shelf went from 85 % ACV in 12 weeks to 85% ACV in 8 weeks.  Sales of "Display Shippers" and Distribution Improved Significantly.  Great Example of “Take Back the Shelf” Program.  Extremely large scale effort involving all retail stores for a Fortune 25 manufacturer.  Demonstrated a large HBC manufacturer can significantly improve its performance Without Capital Expenditure.

Problem and Solution Notes:  Nearly identical to Success Story 103.  The only difference was that one large broker had responsibility for Retail Merchandising – and this “Example” was the birth of the Dedicated Retail Merchandising Team.  Through analysis, Associate knew what broker was doing (and not doing) in-store.  Associate's team established an entirely new Retail Call Procedure, based on hand-held sales force automation hardware and software.  

Note on the Value of the "Gray Haired Types":  This result was achieved even though many technically capable analysts and younger managers did not see the need or opportunity.  Associate and other "gray haired types" got this result accomplished anyway.  Associates report that younger managers, especially those that have not spent significant personal time "in-store, resolving problems" often overlook these needs and opportunities.

Category:  HBC Categories, Grocery  (WV)

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(104)*  90 Day Sales Gain of $36 Million, Out of Stocks Cut by 50%, Voids Eliminated in Test of 1100 Stores.  Sales gain verified by POS data from test stores, exceeding same store sales from two control groups. 

Manufacturer:  U.S. CPG Company

Problem: Retail merchandising "conditions in-store" reports were over-stating actual in-store conditions.   Shelf sections were poor, out of stocks significant.  Broker reports were always positive, and POS based reports were supporting what appeared to be a 98% "on-shelf" level.  (This was actually an inferred observation based on 98% of items selling and scanning, but it significantly understated the opportunity to improve sales.)

Solutions Notes:   Used existing retail merchandising force and created an entirely new ‘Retail Call Procedure” for a set of test stores.  Trained – implemented – monitored, in ruthless detail on results and progress.  Measured sales performance in stores on coverage by existing Retail Force and also stores with no merchandising coverage at all.  For this test, there was little done to “match test stores with comparable sister stores of same attributes”.

Test Stores:  Every SKU was “touched” and documentation was made of:  SKU’s on shelf and tagged,  SKU’s that had tags up but were out of stock,  SKU’s that were authorized for the store/POG but were not tagged and on shelf.  All results documented and the data used as the Baseline for the Test Stores Performance.  Upon completion of the Distribution documentation, remedial action was taken to correct:  SKU’s out of stock – look for back room inventory, inventory in other locations, check order status and book inventory status, inform manager and validate that the item is on order, and if not get it ordered and fix inventory figure if necessary.  SKU’s authorized but non tagged on shelf – contact manager, and validate ‘authorized status and place on POG’ and order product , get tag made, put tag on shelf and return when appropriate to ensure that the item is cut in on shelf.   Did this for 13 weeks.

Control Stores and Non Covered Stores:  Simply tracked by POS reports.  In the Control Stores where the Field Force was covering and working the stores, they continued "business as usual".  In the non-covered stores there was no activity at all.

Monitoring:  POS for all stores were monitored, POS for each store group (test, control, non-covered) were monitored.

Category:  HBC Categories, Grocery  (WV) 

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(76)  Ultimately, $400 Million Profit Improvement Through Series of 100 Day Projects

10% Sales Gain With Top 30 Customers in a Few Months

Category:  HBC, Specialty Paper  (RHSA)

Details:  http://www.tomingraminc.com/HBCMfrsIncreaseSalesReduceCosts.htm#(76)

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(74)*   $50 Million Sales Gain in Year One, $50 Million More in Year Two Proves Markets Not Saturated, Higher Margins Possible

Sales Gains Extended to Europe, Latin America, Asia, Australia, India and South Africa

All Accomplished with Series of 100 Day Projects

Results: 

• $50 million in incremental annual sales in year one

• On track additional $50 million of incremental annual sales in year two

• Proved that primary markets were not saturated.  Found ways to grow revenue even in mature markets

• Specialty tape division secured a commitment for a $2 million sale

• Secured letters of intent for two other large customers within 100 days

• No significant cost for consultants or capital expenditure

• Closed a sale in 50 days that was originally scheduled to take 12 to 15 months to close

• Proved it was possible to close sales at substantially higher profit margin, challenged assumption that only commodity margins were possible

• Doubled sales from key customer by integrating multiple suppliers

• Doubled the yield of a mothballed machine by making a slight modification to the product produced

• Sales increased in Europe, Latin America, Asia, Australia, India and South Africa through same 100 day process

• Changed culture from "sales as only contact with customer" to broad contact with customer from all parts of the company

• Improved relationship between sales force and rest of the company. The sales team developed a deeper appreciation of what it takes to get the job done for the customer across the entire company

Problem: 

• Company was profitable, had grown less than 10 percent in past two years, even though growth was a management primary goal. 

• Discovered that all growth efforts were focused on long-term (e.g. developing new technologies and new products which took 2 to 3 years)

Solution Notes: 

• Three divisions, including 14 growth opportunity targets were identified.  The goal for all 14 teams was to generate at least a proposal to a qualified customer within 100 days.

• Team members were required to keep their regular jobs going at the same time

• The 60 employees who participated were wildly enthusiastic about the experience

• Spent very little time and money on formal training. Accomplished training, skill development and culture change while producing the results

• Required the projects push participants out of their comfort zones

• As of 2003, 550 teams were at work involving more than 2300 employees

• Tight deadlines motivated people to overcome obstacles, take some risks and get things done without going to management for help

• Challenged the assumption that the only way to get significant new things done was to spend forever doing a long study. Replaced this idea with the primary approach of the small-scale, 100 day efforts producing real data, rather than theory and opinion

• Senior management remained involved. One or more senior executives participated in nearly all of the 50 and 100 day project reviews all over the world

   

Manufacturer:  Avery Dennison

Category:  HBC, Specialty Paper Products  (RHSA)

Details:  http://www.tomingraminc.com/AveryDennisonSuccessRHSA.pdf

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(93.5)* 90 Day Sales Gain for Private Label Allergy Brand.  $0 to $50 Million in Year One.  Improved from 60% ACV Distribution in 12 weeks to 60% ACV in 4 weeks, Without Spending Big $$$ on Launch. Category A Launch, but without the traditional big launch spending.

Category:  HBC, Allergy  (VM)

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(15)*   Gained Approximately $11.1 Million in Incremental Cosmetics Sales for Manufacturers in One Year, In Less Than 90 Days, Took 30% of Shelf Space Away From “No-Show” Competitors.  Bundling Multiple Store Calls*.  Associate discovered that a competitor’s merchandising team did not show up for a 210 store cosmetics reset.  Associate’s team was able to convert 30% of competitor’s shelf space to their manufacturer.  See discussion of clustering in health and beauty success story. 

Categories:  HBC, Cosmetics  (DK)

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(101)*  55% Sales Gain in 90 Days (6 Store Test).  Test Done to Validate Potential in $550 Million Category that has Grown Double Digits for Last Three Years.  Device for aging baby boomers - sales increased significantly through new fixtures, fresh approach, new program and push, including effective merchandising of product.  (Product displays get disheveled quickly - must be merchandised more frequently and correctly - beyond what store personnel will do.)

Category:  HBC Device for Aging Population (LR)

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(84)  17% increase in sales over the past 4 weeks in WalMart [4th Qtr]

Mature Product Increases from 40% Share to 57% Share in 4 Weeks

Details:  http://www.tomingraminc.com/HBCMfrsIncreaseSalesReduceCosts.htm#(84)

Category:  Near-HBC (DY)

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(88.3)*  90 Day Sales Gain of 16% for Adult Cough Cold Brand, (while market growing at 6%), through  "Never Out of Stock" Program.  Results occurred during peak cough-cold season in 2006.  Program continues to this day.  Keys were:

• Isolated 20% of skus generating 80% of sales

• e.g. 7 skus total in category, but 3 skus accounted for 80% of sales

• Identified top producing and under producing stores

• Increased "weeks of inventory on hand" for top selling selling stores, reduced for under selling stores

• Coordinate with merchandisers / brokers

Category:  HBC, Adult Cough Cold (VM)

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(13)  22% Annual Increase In Diaper Sales For 56 Store Chain

Completely Displaced a Competitor in 3 Weeks

Category:  HBC (DK)

Details:  http://www.tomingraminc.com/HBCMfrsIncreaseSalesReduceCosts.htm#(13)

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(88.5)*  90 Day Sales Gain of 16% for Pediatric Cough Cold Brand, (while market growing at 6%), through  "Never Out of Stock" Program.  Results occurred during peak cough-cold season in 2007.  Program continues to this day.  Keys were:

• Isolated 20% of skus generating 80% of sales

• e.g. 7 skus total in category, but 3 skus accounted for 80% of sales

• Identified top producing and under producing stores

• Increased "weeks of inventory on hand" for top selling selling stores, reduced for under selling stores

• Coordinate with merchandisers / brokers

Category:  HBC, Pediatric Cough Cold (VM)

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(92)*  Big Progress in 90 Days - Ultimately $400 Million in Sales:  Brought Strategic Sales Account Management Disciplines to New Group, Included  Significant Participation by Retailer Senior Executives.  Rapid progress, ultimately resulting in $400 Million of Sales with just Three Retailers.

Category:  HBC  (VM)

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(52)  New Major Product Launches Achieving 85% ACV Distribution In Two Weeks Instead Of The Normal  8-10 Weeks

1.    Toothpaste launch - $0 to over $100 million in one year

2.    Shampoo launch - $0 to over $100 million in one year

3.    4+ other product launches - $0 to over $100 million in one year

4.    8+ product launches from $0 to between $20 million and $100 million in one year

Category:  HBC  (PP)

Details:  http://www.tomingraminc.com/HBCMfrsIncreaseSalesReduceCosts.htm#(52)

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(70)  New Product Speed to Shelf Results in $12 Million Sales Gain

New Product Speed to shelf improved from an average of 85% on shelf in 12 weeks to 85% on shelf in 4 weeks, generating an incremental resulting in sales gain of $12 Million (10%).

Category:  Near-HBC, Grocery (WV)

Details:  http://www.tomingraminc.com/HBCMfrsIncreaseSalesReduceCosts.htm#(70)

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(49) $0 to $70 Million Year Sales in One Year – Just In Wal*Mart

90% ACV Distribution in 3 days in Wal*Mart

90% ACV Distribution  in 5 days nationwide

Category:  HBC  (PP)

Details:  http://www.tomingraminc.com/HBCMfrsIncreaseSalesReduceCosts.htm#(49)

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(83)  Colgate Total Launch:  Outsold every retailer in the US during launch!

- Prepared for launch for 18 months

- Achieved 100% ACV distribution in two days!

Category:  HBC (BC)

Details:  http://www.tomingraminc.com/HBCMfrsIncreaseSalesReduceCosts.htm#(83)

*  Success stories and client quotes are provided as general illustrations of past performance, and are not intended to convey exact financial information, circumstances or dialog.  No representation is made that a particular prospective client will achieve a particular result.  Details on the specifics of each success story are available upon request.