(72)*   Broker Audit Saves $2.5 Million.  Savings Used to Fund Improved Merchandising, On Shelf Availability, etc.

Results:  Approx. 10% cost savings by paying only for actual services provided.   Resulted in $2.5 Million savings which was reinvested in more productive programs.

1.     Manufacturer:  U.S. CPG Company

Problem: Traditional broker merchandising payment plan was based on “fees for services actually provided.”   Controls were not in place to monitor third party merchandising staffing levels.  Monthly payments were made without requiring services to be provided that justified the payment.

Solutions Notes: A system of controls and measures were implemented and integrated with Sales Operations to provide more clarity on actual services provided.  Broker payments that were not justified were accumulated and later invested in more productive programs (see other success stories by this Associate.)

Category:  HBC and Food / Grocery Categories  (WV)

(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)

(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) 

(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)

(403) Budget Launch of Big New Product:  $0 to $35 Million in 18 months, Friendly’s Ice Cream Cake. Ice Cream Cake was strong in restaurants, but not being sold in grocery stores.  Associate developed and executed sales and merchandising plan.  In 6 months, pulled together distribution data, cost data and executed merchandising at 100% distribution.  The product became so profitable that the manufacturer ultimately brought the HQ call selling in-house.  Product is currently the #1 brand of Ice cream Cake in North East. (DK) 

(1)*  Distribution Increased by an Average of 7%, Some Products Improved by 16.5% for Same Cost as Previous Year by Outsourcing Oversight of Merchandising. Freed Up 1800+ Hours of Manufacturer’s Time Per Year (approx.).  Allowed Manufacturer to Focus on Growth, Instead of Managing Merchandising*.  Associate firm saved manufacturer $150,000 on previous year’s budget of $1,000,000 (approximately).  Reinvested savings in better merchandising to achieve improvements in distribution, void reductions and out of stock reductions.  Other results included:

• Coordinated merchandising effectively with major TV ad campaign
• Used store volume and market data to create a store grading system to help spend merchandising dollars only in stores with the best payback
• Renegotiated merchandising service contracts for immediate cost savings and conducted RFP process to select new service providers
• Produced monthly stock level scorecard and list of worst stores to help manufacturer deal with problems and opportunities at retailers
• Created audit / mystery shopper program to confirm conditions in stores
• Helped manufacturer develop overall processes and disciplines for effectively managing merchandising

(MD CB)  Category:  Diabetic, Diagnostic, Medical

(13)*   22% Annual Increase In Diaper Sales For 56 Store Chain, Completely Displaced a Competitor in 3 Weeks!*  Associate’s team discovered extreme dissatisfaction with a diaper manufacturer.  Associate went to a competitive diaper manufacturer, jointly developed a new planogram, closed retailer and completed resets in three weeks, completely displacing the original diaper manufacturer.  (DK) "Success Story 16 Details" PowerPoint and Interview with DK - see page 14  Categories:  HBC

(14)*   Bundling Multiple Store Calls Together To Make Merchandising Affordable for Smaller Manufacturers,  Health and Beauty Category*:   Associate was able to negotiate an agreement with three manufacturers to make merchandising calls affordable for all.  Through careful scheduling and knowledge of local conditions, reps with right skills and field management structure that was able to execute, Associate’s team was able to  consolidate the work so that field rep got all the work done for three manufacturers in a single one hour call.  (DK)                            "Success Story 17 Details" PowerPoint and Interview with DK - see page 15   Category:  HBC

(15)*   Gained Approximately $11.1 Million in Incremental Cosmetics Sales for Manufacturers in One Year, 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.  (DK)               "Success Story 18 Details" PowerPoint and Interview with DK - see page 16  Categories:  HBC, Cosmetics

(17)*   Bundling Multiple Merchandising Calls, Coordinated 13 Manufacturers for Mass Merchandiser Cosmetics Resets*  42 feet of shelf space was reset at all stores.  Associate led team.  (JV)   Category:  Cosmetics

(21)*   $125 Million in Additional Sales for Manufacturer by Reducing Out Of Stocks by 5% (estimated),  $1 Million Cost Savings through Outsourcing of In-House Merchandising Team.*  Associate managed the team and its P&L.  Achieved approximately 5% reduction in Out of Stocks (key goal of the effort) and saved manufacturer $1 million per year in merchandising costs at the same time.  (Manufacturer’s sales are about $4.5 Billion.  We are assuming that a 5% reduction in out of stocks will result in additional sales of approximately $125 million.)  (PL)  Categories:  HBC, Feminine Hygiene, Paper, Diapers, Variety

(35)*   Distribution Increased From 80% to 96% In Five Months Through Data-Driven Merchandising Program*.  Confidential program, call for details.  (JS)   Category:  HBC, Medical, Small Appliance

(36)*   Distribution Increased From 94% to 99% In Five Months Through Data-Driven Merchandising Program*.  Confidential program, call for details.  (JS) Category:  HBC, Personal Care

(51)*   Results: Combined Three Sales Organizations, 1,000+ People, Reduced Headcount to 400, Brought Cost of Sales Down From 5% to 2.2%, Reduced Trade Funds (Promotion Expense) From 18% of Sales (Some Categories at 24%+) Down to 12% of Sales While Simultaneously Growing the Business 4.5% in Year One and 3% in Year Two.  (Market was growing at only 2%).

Manufacturer:  Fortune 25 HBC Firm

Problem: Merger of three organizations created redundancies, waste.  Promotions were consuming 80%+ of time and money, only producing 25% of the sales.

Solutions Notes: "Stopped the Promotion Madness".

Category:  HBC  (PP)

(69)*   Consolidated Two Field Sales Teams into Single Team,  Eliminated $5 Million in Redundant Costs, Increased Merchandising Productivity by 20%

Results: Consolidated two existing Field Sales Teams into a single team. Resulted in the reduction of non-selling time by 15%  and increased the number of stores visited by 5%.   Accomplished through a better store coverage model. 

Manufacturer:  US Division of Global Manufacturer

Problem:  Duplication of field sales people, inefficiency in territories / overlap, lack of criteria for store visits and priorities.

Solutions Notes:  Stores prioritized and criteria created for store visits (frequency, time and objectives.)  Also prioritized by geography and channel.  Resulted in more time spent “in store” and less “non-selling / drive time”.  Also added more total stores and higher priority stores.  Regional focus during the Sun Care season.

Category:  Multi Category – HBC/GM/Grocery/Perishable  (WV)

(85)*   Convenience Channel Team Is One of Only Two Units for Major Manufacturer Making its Goals for 2008

• Has increased distribution in by 8% for the year (vs. 5% target)

• Team sold new products into existing Convenience chains

• Team also penetrated multiple new and alternative channel retailers

• Applied effective techniques learned from Grocery industry

Category:  HBC, (DC - not an Associate, but a friend and important precedent)

(95)*  Headquarter Call Improvements Result in Sales Goals Met, 30 Years Out of 30, Executive Development.  Implemented selection, training and management program for 325 sales people through one major reorg and one major divestiture, achieved sales goals every year for 5 years.  Turnover reduced from 10% to 6%. Developed four people into senior sales management who continued to consistently achieve  sales goals.  . 

Category:  HBC, Prescription to Over the Counter, Prescription Drugs, Contact Lens / Eye Care Solutions, Gastro-Intestinal, Cough/Cold, Analgesics, Anti-Fungal (VM)

(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, not in sales (as is usually the case)

Category:  HBC, Cosmetics  (DK)

(115)*  Increased Profit By 4% (avg.) by Improving Planogram Effectiveness, SKU Mix And Product Placement.

Category:  HBC, Cosmetics (RG)

(116)*  Increased Profit By 11% In Year One And 13% In Year Two By Reducing Amount Of Stock Sold On Promotion at top five retailers plus some second-tier retailers.

Category:  HBC, Cosmetics (RG)

(117)*  $6 Million incremental sales in Two Years by enhancing promotional merchandising offerings, reducing returns , controlling markdowns and driving basic stock sales from the wall. 

Category:  HBC, Cosmetics (RG)

(118)*  $7 Million In Incremental Sales Through Improved Use Of Trade Funds. Accomplished by increasing sales lift approximately 20% for same cost as previous year.

Category:  HBC, Cosmetics (RG)

120)* Increased sales from $4 million to $10 million in 18 months at national grocery retailer.  Significant operations involvement, increased planogram space from 5 feet to 12 feet.  Persuaded retailer that profit opportunities existed through fact based selling and category management team. 

Category:  HBC, Cosmetics, Personal Care (GM)

(121)*  Increased sales from $3 million to $6 million in two years at national grocery retailer.  Increased SKUs carried from 5 to10 in personal care and doubled shelf space, going from average 1.5 foot planogram to 3 foot planogram in cosmetics. Persuaded retailer that profit opportunities existed through fact based selling and category management team. 

Category:  HBC, Cosmetics, Personal Care (GM)

(122)* Increased sales from $2.5 million to $7 million+ over three years at Southern regional grocery retailer.  Sold entire line, 1,000+ SKUs,  full program, distribution, secondary displays, Hispanic programs, significant trade funds, etc. 

Category:  HBC, Cosmetics (GM)

(123)*  Increased sales from $0 to $2 million in 12 months+ by penetrating a a new regional grocery retailer.  Sold in 16 cosmetics SKUs and 4 personal care SKUs.  Persuaded retailer that profit opportunities existed through fact based selling and category management team. 

Category:  HBC, Cosmetics, Personal Care (GM)

(124)*  Increased sales from $200,000 to $2 million in one year for national grocery retailer.  Became exclusive cosmetic implement line for retailer.    Significant increase in distribution.  (Ultimately lost to exclusive arrangement to strong competitor.) 

Category:  HBC, Cosmetics (GM)

(125)* Became exclusive budget cosmetic line and exclusive cosmetic implement line for Northeast regional grocery chain.  Persuaded retailer that profit opportunities existed through fact based selling and category management team. 

Category:  HBC, Cosmetics (GM)