TOM INGRAM AND ASSOCIATES, INC.
Health Beauty & Cosmetics Manufacturers:
Wal*Mart Success Stories
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Success Stories* by Our Associates (88)* Grew Wal*Mart Consumer Health from $890 million to $1 Billion+ in One Year Through "One Point of Responsibility" Program. Grew at Twice the Market Growth of 6%. Accomplished by leading a team of 28 sales people (across 4 business units and 25+ major brands) as single point of responsibility for promotions, new products, packaging, deliveries, etc. Resulted in multiple awards, including Wal*Mart supplier of the year. Wal*Mart requested that other manufacturers duplicate this model. CONTRAST THIS MODEL TO A MAJOR COMPETITOR WITH 230 AUTONOMOUS BUSINESS UNITS. Category: HBC, Prescription to Over the Counter, Prescription Drugs, Contact Lens / Eye Care Solutions, Gastro-Intestinal, Cough/Cold, Analgesics, Anti-Fungal (VM)
(401) $0 to $100 Million of Revenue in 3 Years: Private Label and Branded Water at Wal*Mart. Pulled together 11 different water manufacturers to supply private label and branded water on regional and national basis. (DK)
(402) Budget Launch of Big New Product - $0 to $180 Million in Three Years, Fruit2O Launch. Veryfine, (juice manufacturer) was losing money, losing share. Needed help launching concept of “flavored water”. Associate put together entire program including a sales plan, marketing and merchandising plan to launch. Manufacturer could not afford slotting fee of $100,000 per SKU at Stop & Shop. Solution was to surround Stop & Shop with product in competing channels. Three years later, Associate got product into Stop & Shop for slotting fee of $5,000 per SKU. Gained distribution at Wal*Mart, Kroger, Albertsons, Publix, Safeway and Wakefern. Owner then sold company to Kraft for $185 million after Fruit2O launch in 2004. (DK)
(59)* $100 Million+ Sales Gain, $1.7 Million Cost Savings over 10 Years
Category: HBC, Near-HBC Details: http://tomingraminc.sharepointsite.net/PublicWebSite/Shared%20Documents/NoOneSelleratWalMartv3.pdf
(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 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)
(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:
Category: HBC, Cosmetics (DK)
(7)* Consistent Planogram Compliance, New Item Speed to Shelf, during High SKU Count, Complex Reset Work (Cosmetics). Results Were So Strong, Program Was Repeated 8 Times. Key Was Getting It Right With Minimum of Manufacturer's Time*: Associate led programs for Planogram compliance for entire new marketing efforts for the manufacturer. Work involved extremely high sku count, complex racking, heavy resets, 20-24 hours per section. Included videos to train reps, practice sets, 5-6 month planning and coordination cycle and working side by side with manufacturer. · Chosen by Wal*Mart to coordinate all manufacturers for the changeover of an entire cosmetics department · Chosen by L'Oreal and Procter as exclusive merchandising company for 4 years running. · Consistently met seasonal deadlines. (LC) Category: Cosmetics
(22)* 20% Improvement in New Item Speed to Shelf. Shared Merchandising Teams (Broker Coverage) Not Getting Job Done. Established Dedicated Team Program for Fortune 500 Health and Beauty Manufacturer in Mass Merchandising (Wal*Mart) and Drug Channels*. Syndicated model being used was falling short in out of stocks, void fills and display compliance. Also provided greater flexibility for manufacturer's seasonal needs. New Item improvements were measured by ACV against non-covered stores. (PL) Categories: HBC, Suncare, Footcare, Over The Counter Drugs
(26)* Promotion Compliance: Developed Program at Wal*Mart for Auditing Stores for Compliance with Promotions*. Marketing department had no history or baseline to judge promotions from. Current effort is to establish the baseline. (PL) Category: Wal*Mart
(27)* Manufacturer Saves $10 Million, Compliance Improves 135% by Outsourcing In-House Merchandising Team. Immediate Savings Of 32% Per Visit. Employees Reduced from 400 to 40*. Associate led effort to reduce internal merchandising staff of 400, which called on 8,000 locations servicing high sku count products. The in-house team was not performing for a number of reasons, including the rep’s inability to be effective in two different chains at the same time. (E.g. Wal*mart and Macy’s.) (JF) Categories: HBC, Intimate Apparel
(33)* $1.7 Million+ Savings On Merchandising Work. 425,000 Hours of Merchandising Services Provided at 20%+ Cost Savings Through Data-Driven Merchandising. Demonstrated that targeted project work produced a better ROI for manufacturers and retailers than generic continuity work. Had to become good at dealing with a fluctuating work load, using part time work force.* Grew base of business from 72,340 hours per year to 425,531 hours per year over five years. Growth came by transitioning from continuity work to project work. Included Hair Care Resets for 6 years running, cosmetics resets at one mass merchandiser and becoming the preferred provider at another mass merchandiser. Discovered that Project work was often 20% to 25% more cost-efficient than continuity work because of significantly less drive time. Had to become good at dealing with a fluctuating work load. Transitioned to part time work force. (JV) Categories: HBC, Cosmetics
(55)* Helped Fortune 500 Manufacturer Penetrate Drug Channel and Mass Merchandising / Wal*Mart Channel. Manufacturer Had Been Unable to Penetrate On Their Own*. Associate led effort based on existing relationships, “fact based selling” and showing retailer how shelf space could be better used. (ML) Category: Drug, Wal*Mart
(60)* Outsourcing In-house Merchandising Team
(66.1)* Outsourcing Cost Savings – Where to Look
Details (DY MH) http://tomingraminc.sharepointsite.net/PublicWebSite/Shared%20Documents/OutsourcingCostSavingsWhereToLook.pdf
(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
Category: Near-HBC, (DY)
(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
(37) Distribution Increased From 72% to 98% In Five Months Through Data-Driven Merchandising Program*. Confidential program, call for details. (JS) Category: Grocery, Spice
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* Success stories, client quotes and payback estimates are provided as general illustrations of past performance and represent summaries of long term, complex efforts. They are often used to teach concepts and lessons learned, and may have been simplified considerably. Estimates of financial impact are estimates only, and not intended to convey exact financial information. Some have been altered to protect confidential information. We ask that prospective clients contact our references and request specific details of relevant success stories prior to any decision to use our services.