Phil Pace Background Success Stories
Summary Background
- Senior Vice President, Fortune 25 HBC Firm, 35 years
Success Story #1:
Results: $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 Firm
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)
Success Story #2:
Results: Consolidating 45 SKUs to 12 and Regional / Seasonal Focus Results in Significant Sales Lift – 3 Times per Year!
Manufacturer: Fortune 25 HBC Firm
Problem: Lagging sales in Skin Care product line
Solutions Notes: Went from 45 SKUs down to 12. Reduced to just the fundamentals of what the end customers wanted. Went to a very strong balance between Headquarter Sales side and Retail Execution / Merchandising. Regional focus during the Sun Care Season
Category: Skin Care (PP)
Success Story #3:
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)
Success Story #4:
Results: 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
5. A Key Additional Benefit: Success or failure information is available in 2 Weeks – instead of 2 Months! Allows manufacturer to pull the plug, invest more or redirect immediately – rather than after million have been wasted
Manufacturer: Fortune 25 HBC Firm (PP)
Problem: Normal product launches were taking 8-10 weeks to get 85% ACV distribution. In addition to delayed sales, slow launches waste TV ad dollars and waste inventory dollars because product is just sitting.
Additional Results Notes: Benefits: Product selling immediately instead of sitting in the warehouse, Forecasting improves, Inventory and Return is substantially better. You know your product’s success or failure in 2 weeks. Two examples of success: Both a Specialty Toothpaste and a new Shampoo reached $100 Million plus in Year 1.
Solutions Notes: Since 2000, Associate has led approximately two dozen Major Product Launches which have reached 85% ACV distribution in two weeks (some in one week) versus the previous 8-10 weeks to get to 85% ACV distribution.
Category: HBC (PP)
Other Category Experience
- Hair Care
- Personal Care
- Soap
- Snacks
* Success stories are summaries and approximations only. See our web site for additional details on success stories.