International Brands In U.S., Successes...*

(failures below)

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(49)*  International Brand Introduced in U.S.: $0 to $70 Million Year Sales in One Year – Just In Wal*Mart!  Got to 90% ACV Distribution in 3 days in Wal*Mart and in 5 days nationwide!

Manufacturer:  Fortune 25 HBC Manufacturer

Problem: Normal product launches were taking 8-10 weeks to get 90% ACV distribution.  In addition to delayed sales, slow launches waste TV ad dollars and waste inventory dollars because product is just sitting.  This was launch of new men’s body spray / cleansing gel line.  New product line had “no functional value – all about belief in self.” 

Solutions Notes:   Used little advertising – went to viral marketing instead.  Launched in Men’s Clothing department, near Skateboards, and near Computer Games.  Went to entirely new launch program based on quality improvement and other cycle time reduction techniques 

Category:  HBC  (PP)

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(106)*  International Brand Introduced in U.S.: $0 to $125 Million Year Sales in One Year.  Successful with U.S. Women, Not U.S. Men

Manufacturer:  European HBC Manufacturer

Problem: Normal problem of 70%+ failure rate for introduction of international brands in the U.S.

Solutions Notes:   Associate led team responsible for execution of marketing and in-store retail activities.  Key tasks included:

• Identifying and working with partners to create "high-end" Point of Purchase materials, Point of Sale materials and fixtures.  (Fixtures were injection molded plastic for displays and end caps.  Also included "shelf talkers").

• Define how product would be merchandised at multiple retailers

• Developed pricing strategy

• Advised on how to spend $30+ million launch budget in national advertising, trade development funds, fixtures and retail merchandising services. 

• Helped sales team create and execute sales plan focused on most profitable opportunities with retailers

Category:  HBC, Skin Care  (JF)

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(107)*  International Brand Introduced in U.S.: Estimate $0 to $100 Million Year Sales in One Year.  Succeeded After Failure Ten Years Earlier

Manufacturer:  European HBC Manufacturer

Problem:   Normal problem of 70%+ failure rate for introduction of international brands in the U.S., plus having failed a decade earlier.

Solutions Notes:   Did "nearly everything right" the second time around:

• Business plan based on core products where consumer awareness and trial could be accomplished inexpensively

• The product and display appearance in-store was attractive

• Significant trade funds were spent to get product placed on numerous end caps and "power wings"

• Extensive ad campaign and direct mail were timed with the product arriving in-store

• Sampling effort to Dermatologists was extremely effective (resulting in doctors giving patients a free sample) 

• Stayed focused on just skin care - did not try to extend to shampoo, acne preparation, etc. as previous failed effort had done

Category:  HBC, Skin Care  (JF)

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(112)*  International Brand Introduced in U.S.: $0 to $10 Million Year One, $75 Million+ by Year Three.  Accomplished With Less Than $10 Million Spent on Introduction

Manufacturer:  European HBC Manufacturer, Acquired by U.S. Manufacturer

Solutions Notes:   Associate assisted with product introduction in Northeast U.S.  Success keys included:

• Positioned product as "European / Hip"

• Slow, deliberate, methodical, inexpensive approach to gaining new retailers and new sales.  Sold product to CVS, Walgreen, and a Grocery retailer BEFORE APPROACHING WAL*MART

• Product was so successful that problems were in Supply, rather that sales (as is usually the case)

Category:  HBC, Cosmetics  (DK)

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(114)*  International Brand Introduced in U.S.: $0 to $150 Million+ Year One.   Success Achieved Through Enormous Advertising and New Product Introduction Spending

Manufacturer:  European HBC Manufacturer

Solution Notes:  Associate assisted with introduction in Northeast U.S..  Manufacturer "did everything right" PLUS "spends more money on advertising than Proctor & Gamble" (as percent of sales.)

Category:   HBC, Hair Color, Shampoo, Makeup  (DK)

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(402.1) Learned from International Success - How to Launch New Product For Less Than $10 Million - $0 to $180 Million in Three Years.  Manufacturer was losing money, losing share.  Needed help launching new product concept

Solution Notes:  Associate put together entire program:

• Slow, deliberate, methodical, inexpensive approach to gaining new retailers and new sales.

• Sales plan, marketing and merchandising plan to support launch.   

• Manufacturer could not afford slotting fee of $100,000 per SKU at the dominant retailer.  Solution was to surround retailer with product in competing retailers. 

• Three years later, Associate got product into dominant retailer for slotting fee of $5,000 per SKU.  Gained distribution at Wal*Mart, and multiple other retailers. 

• Owner then sold company for $185 million after successful launch

Category:  Similar to HBC (?) (DK)

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(126)* Increased U.S. sales from $14 million to $55 million+ in three years by gaining distribution in Mass Merchant Retailers.  Manufacturer was Japanese firm with total sales of $120 million world wide.  Product was being sold in Health food stores only in U.S., prior to Associate's assistance at increasing sales. 

Category:  HBC, Nutrition Supplement (BP)

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(127)* Increased U.S. sales from $0 to $7 million in three years with just 3 SKUs.  Achieved 80%+ distribution in major Drug retailers, distribution in all Mass Merchant retailers except one (minor) and 40%+ distribution in Grocery retailers.  Manufacturer was European chemical company. 

Category:  HBC, Skin Care (BP)

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(128)* Increased U.S. sales from $0 to $6 million in four years.  Manufacturer was European company experiencing many difficulties entering the U.S.. Manufacturer did not have pharmaceutical background and were not prepared for the size of the U.S. market. 

Category:  HBC, Skin Care (BP)

... and Failures* 

Due to the high failure rate, it is particularly important to understand reasons for failures.  Common mistakes include:

• Underestimating the geography and scale of U.S. retail sales

• Underestimating the cost of selling to U.S. geography, large number of retailers and diverse consumers

• Easy for sales and profit expectations to become unrealistic

• Sometimes it is possible to get some sales quickly, but this can limit future growth

• The assumption that U.S. consumers will behave and buy the same as European or other international consumers

(109)*  Failure:  International Brand Introduced in U.S.:  $50 Million+ Loss, Succeeded in Second Attempt Ten Years Later - See (107)

Manufacturer:  European HBC Manufacturer

Problem:   Normal problem of 70%+ failure rate for introduction of international brands in the U.S., plus having failed a decade earlier.  $50 million+ of product was sold to retailers, but failed to move off shelves.  Even after 50% discounting, product failed to move and was returned to the manufacturer.  Some key mistakes included:

• Bull-headed senior sales executive drove the effort without thinking through all facets

• Money was not effectively spent to produce initial trial use by consumer

• Too many SKU’s in too many categories.  Attempted to do too much - skin care plus shampoo

• Successes were not followed up on and expanded.  E.g. 100 stores had a partial end-cap that produced strong sales, but the program was not expanded.

Category:  HBC, Skin Care  (JF)

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(110)*  Failure:  International Shampoo Brand Successful in Europe, Failed in U.S.

Manufacturer:  Fortune 25 HBC Manufacturer

Problem:  Normal problem of 70%+ failure rate for introduction of international brands in the U.S..

Category:  HBC  (WV)

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(111)*  Failure:  International Food Brand Successful in Europe, Failed in U.S.

Manufacturer:  Fortune 25 HBC Manufacturer

Problem:  Normal problem of 70%+ failure rate for introduction of international brands in the U.S..  Now just "slapping the brand name on many products" - having no material effect

Category:  Grocery, Near HBC  (WV)

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(108)*  Partial Failure:  International Cosmetics Brand Quickly Achieves Initial $10 Million Sales In U.S., but Growth is Slow.

Manufacturer:  European HBC Manufacturer

Problem:  In order to get initial sales in U.S., the manufacturer agreed to a two year exclusive contract with one retailer.  This achieved strong initial growth but has limited additional growth for multiple years.  (Some merit to this approach - not clear whether a better outcome could have been achieved.) 

Category:   HBC, Skin Care  (DK)

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(113)*  Failure:  Normally Successful, Manufacturer Fails Big with Hair Color Introduction in U.S.

Manufacturer:  European HBC Manufacturer

Problem:  This manufacturer normally has a 50%+ success rate on new product introductions in the U.S.  Talk to Associate for details on why this effort failded. 

Category:   HBC, Hair Color  (DK)

*  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.