Overview:

Generated Approximately $21 Million in Additional Sales for Manufacturer, Best out of 36 Teams at New Item Speed to Shelf, Three Years in A Row*:  For three years in a row, Associate's team conducted a total of 12 new item launches and finished first among 36 teams all three years.  Approximately $21 million in additional sales were attributable to Associate's team.  Sales increase was due to effectiveness of Associate's team at getting new items on shelves, highlighted by 100% attendance of Associate's people at every launch for three years in a row.

    Problems / Challenges Faced:

•         Merchandising organizations are usually treated like a "vendor" rather than a "partner"

•         Usually, merchandising companies do not find out about new item launches until it is too late to effectively plan, partner and manage all the details of an effective new item launch

•         Manufacturers will often complain (loudly) about the merchandising work done by broker organizations, but will not switch to using a 3rd party merchandising company because the broker is essential to headquarter selling, promotions and new item launches.

     Solution:

• Associate had worked for a large broker with a merchandising organization, so knew its strengths and weaknesses

• Key was insisting on being treated as a PARTNER

• Associate knew that Broker's people had the same problems of being treated like "vendors", not told about new item launches until too late, etc.

• Manufacturer was willing to measure both outside merchandising teams and the manufacturer's personnel on the same measurement system.  All involved had incentives to get new items on 85% of shelves in their territories within 8 weeks, as measured by IRI or Nielson.

• Associate insisted on a standard meeting schedule with the manufacturer which had to be kept.  These were 1/2 day meetings of all concerned at 12 weeks prior to first shipment, 8 weeks prior to first shipment, and 4 weeks prior to first shipment.

• Associate was aware that manufacturer's personnel would not want to allocate this much time, but he insisted on this as a condition of taking the assignment.

• Associate notes that "Execution is a given.  All competitors can execute.  How well you manage the communication process with the manufacturer, retailer and merchandising field organization is the key."

Results:

• Associate's team was #1 team in country out of 36 teams, three years in a row

• Associate's team got new items on 85% of shelves in their territory within 8 weeks, for 12 launches, three years in a row. 

• Manufacturer’s sales in 2006 were approximately $1.5 billion, which was an 11% increase over 2005.  Associate's territory was responsible for 39% of manufacturer’s sales in U.S..  The sales increase in  Associate's territory would be $1.5 billion * 11% * 39% = approximately $64 million.  Associate believes it is reasonable to attribute about 1/3 of this increase to the efforts of his team, for a total of approximately $21 million in incremental sales directly attributable to Associate's team.