1
Consumer Package Goods Consumer Durables
2060 Queensbury Drive
Acworth, GA 30102
770-514-9363
rick@globalbrandguy.com
Ri...
2
Rick SteinbrennerRick Steinbrenner
The “Global Brand Guy”
Profit & Loss Responsibility, New Product Development, Marketi...
3
Case Studies Table Of Contents
Case Study Business Slide #
Consumer segmentation leading to breakthrough new branding an...
4
Consumer Segmentation Leading To Breakthrough
New Branding / Product Strategies
Developing A $30MM Business From Zero
& ...
5
Garment Care Business Situation
 Business and profit erosion: $140MM to $80MM topline sales; operating
income from +$15...
6
There’s a BIG difference between what consumers say
and how they think
“Who I
Am”
“What I
Say”
“How I
Act”
“What I
Feel”...
7
Garment Care Actions
Uninvolved/Low End Ironers
 Working couples on the go
 Time pressed
 Hate ironing
Appearance Dri...
8
 This was how we communicated our new product line strategies to the trade/consumers
 Team obtained $18MM in capital t...
9
Maximum Steam Performance:Maximum Steam Performance:
No other premium iron steams more
Professional Pressing Results at ...
10
 ProFinish premium irons became a $30MM franchise from zero. Exceeded
all expectations and paid out original capital i...
11
Developing A Brand New Product Idea / Category
In Household Cleaning Tools
“The Buster” Family Of Cleaning Tools
Dustbu...
12
 Black & Decker invented the Dustbuster franchise in 1979.
 Dustbusters had eroded from $100M to only $35MM by 1996.
...
13
Consumer lifestyle shifts were driving changes in traditional
household cleaning behaviors.
Key Consumer Trends:Key Con...
14
Consumer Household Cleaning Tasks/Markets
VacuumVacuum Manual Wet MopsManual Wet Mops
Sweep/Dry MopSweep/Dry Mop
Dustin...
15
Cleaning Category Consumer Segmentation
 Consumer attitudinal segmentation showed both an emotional and rational need ...
16
 Scumbuster invented the “wet cleaning” category –
$60MM business – single largest $ SKU in Black &
Decker’s 100 year ...
17
Women’s Haircare Business
Differentiation Marketing In Commoditized Categories
18
 Background: Victor Kiam of Remington bought the Clairol women’s haircare
business in the mid 90’s (without the Clairo...
19
Haircare Business Actions
Consumer
Segment
Frustrated/Skeptical
Users
46% of Users
Appearance Driven
Users
29% of Users...
20
Women’s Haircare Business Actions
Consumer Problem:
 Conventional 1875W dryers blew hair everywhere leaving “problem h...
21
 The Vortex became the #1 hair dryer for two years in a row in the single
largest category in Haircare (over 400 SKU’s...
22
Business Expansion Through Unlocking
Brand Equity
23
Quickie Business Situation
 Quickie - #1 manufacturer of hand cleaning tools* - invented the butterfly
sponge mop and ...
24
Quickie Business Actions
 Need to expand scope of business beyond hand cleaning tools – move into more
“integrated” cl...
25
 Launched JetSweep - the first spray water powred push broom that swept dirt
away in one pass - 15,000 retail outlets ...
26
Marketing Leadership Via Brand Equity Building
27
Tenneco NAAM Business Situation
1. Exhaust systems & shocks/struts have
relatively low service interval rates:
#3/#6 ra...
28
Tenneco NAAM Business Actions #1
Dirt and Mud
have a hard time
sticking – for a
clean/shine that
really last  Black wa...
29
Tenneco NAAM Business Actions #2
Brakes Parts – attractive category
 #2 service item behind engine tune-ups
 Very lar...
30
Tenneco NAAM Business Actions #2
PREMIUM PRICE POINT
 Part Numbers: 642
 Applications: Mid 60’s - 2010; Pass Car, Lt....
Post Launch - Brake Packaging Structure & Line Graphic Change
Before: After:
1) Original Packaging Design:
 1000+ SKU’s s...
32
Tenneco NAAM Business Results
DuPont Car Care:
 Introduced 17 new products that generated over $5MM+ in annualized sal...
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Rick Steinbrenner - The Global Brand Guy - Consolidated Business Case Studies

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This is a compilation of 5 separate case studies on businesses at Quickie Manufacturing, Remington Products, Black & Decker and Tenneco/Monroe Auto Parts. It discusses how Rick Steinbrenner -the Global Brand Guy - saw the problem, developed an effective action plan and the results.

Rick Steinbrenner - The Global Brand Guy

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Rick Steinbrenner - The Global Brand Guy - Consolidated Business Case Studies

  1. 1. 1 Consumer Package Goods Consumer Durables 2060 Queensbury Drive Acworth, GA 30102 770-514-9363 rick@globalbrandguy.com Rick Steinbrenner The Global “Brand Guy”The Global “Brand Guy” Business Case Studies
  2. 2. 2 Rick SteinbrennerRick Steinbrenner The “Global Brand Guy” Profit & Loss Responsibility, New Product Development, Marketing Communications Consumer Package Goods; Consumer Durables, B2B Industrials Consumer focused brand marketer driving business-building initiatives & new product innovations; delivering breakthrough results for challenged global brands.  Returns profitability for declining consumer businesses in commoditized categories. Increased operating income/EBITDA by $25MM.  Discovers unique brand marketing communications leading to increased brand equity and sales. Identified and launched 17 TV commercials/infomercials/QVC, print, digital.  Innovate, patent and market new consumer products from inception through launch - broadening market penetration - marrying consumer insights & new functional technologies.  Developed and launched 20 new products generating over $200MM in sales.
  3. 3. 3 Case Studies Table Of Contents Case Study Business Slide # Consumer segmentation leading to breakthrough new branding and product strategies Black & Decker’s Garment Care Business 4 Developing a brand new product idea / category in household cleaning tools Black & Decker’s Cleaning Business 11 Differentiation marketing in commoditized categories Remington’s Women’s Haircare Business 17 Business expansion through unlocking your brand equity Quickie Manufacturing 22 Marketing leadership via brand equity building Tenneco/Monroe Auto Parts 26
  4. 4. 4 Consumer Segmentation Leading To Breakthrough New Branding / Product Strategies Developing A $30MM Business From Zero & Turning Around A Consumer Business
  5. 5. 5 Garment Care Business Situation  Business and profit erosion: $140MM to $80MM topline sales; operating income from +$15MM to losing cumulatively -$13MM in 1993-5.  Market share drop from 50% to 30% with Hamilton Beach & Rowenta taking the most of the share.  Premium iron product design/performance lapped by competition and over 20 years old.  Failed on four other occasions to develop a successful premium iron product.  Iron consumer purchase behavior not well understood; Previous research results were focused on entire market vs. understand potential segments.
  6. 6. 6 There’s a BIG difference between what consumers say and how they think “Who I Am” “What I Say” “How I Act” “What I Feel” “How I Think” High HighLow PotentialMarketShareImpact Consumer Behavior Understanding Demographics and other traditional segmentation methods Product usage via informal surveys and other qualitative methods Observing actual usage behaviors In-depth discussions on emotions/attitudes Consumer values via cluster analysis To substantially impact market share one must need to move the consumer understanding chain through quantitative analysis focused on consumer values.
  7. 7. 7 Garment Care Actions Uninvolved/Low End Ironers  Working couples on the go  Time pressed  Hate ironing Appearance Driven/High End Ironers  Family’s appearance is key  “One Pass” ironing  Likes to iron ATTITUDINAL CLUSTERS “NEED GAPS” IRON FEATURES Performance Made Simple Professional Pressing Results  Lightweight  Sure steam system  Auto-clean valve  Maximum steam performance  Superior glidability  In-use comfort Instead of focusing on ALL iron users, we learned consumer attitudes/habits about ironing drove usage/purchase behavior  Key learning: appearance driven users were the heavy users – 20% of users, but 40% of ironing activity (Uninvolved ironers were 60% of users, but only accounted for 40% of ironing activity)  This study proved consumer attitudes can drive purchase behavior vs. just what consumers say or do. Source: 1995 B&D A&U Study
  8. 8. 8  This was how we communicated our new product line strategies to the trade/consumers  Team obtained $18MM in capital to re-tool and launch this new product line strategy Garment Care Actions
  9. 9. 9 Maximum Steam Performance:Maximum Steam Performance: No other premium iron steams more Professional Pressing Results at Home - just like a dry cleaner!!Professional Pressing Results at Home - just like a dry cleaner!! Superior Non-Stick Glide:Superior Non-Stick Glide: New “space age” soleplate coating Comfortably Designed:Comfortably Designed: Comfort Grips & Unique Control Design (New feature for the category) Garment Care Actions  ProFinish had 21 utility and design patents, the first iron to launch “comfort grips” into the market  Voted a Consumer Digest “best buy” in 1998, achieved 100% distribution in all retail channels Developed and Launched New Premium Iron in the >$30 price point segment
  10. 10. 10  ProFinish premium irons became a $30MM franchise from zero. Exceeded all expectations and paid out original capital investment.  Total Garment Care was “right-sized” in 1998 to $90MM with $7MM of operating income – a $20MM operating income swing.  B&D total iron share moved up from 30% to ~40%  Eliminated/consolidated over 60 sku’s enhancing product cost and working capital efficiencies.  Today, Garment Care is a $100MM business for Spectrum Brands. (the subsequent owner of Garment Care after B&D divestiture/Applica).  The consumer segmentation study is still quoted in trade publications as how consumer really buy irons. Garment Care Results
  11. 11. 11 Developing A Brand New Product Idea / Category In Household Cleaning Tools “The Buster” Family Of Cleaning Tools Dustbuster, Scumbuster, Floorbuster
  12. 12. 12  Black & Decker invented the Dustbuster franchise in 1979.  Dustbusters had eroded from $100M to only $35MM by 1996.  Handheld vac competition – (Royal, Hoover, Eureka, China imports) was mainly responsible.  Moreover, there had not been any real innovation in handheld vacs for years. i.e. corded or cordless , amps and accessories.  Strategic Imperatives:  Re-vitalize Dustbusters  Expand into new “non-served” adjacent product categories exploiting “need gaps”. Cleaning Tools Business Situation
  13. 13. 13 Consumer lifestyle shifts were driving changes in traditional household cleaning behaviors. Key Consumer Trends:Key Consumer Trends: Help consumers clean faster & better with less time & effort Speed Bumps Speed Bumps Cleaning Business Actions  Working parents & single parent householdsWorking parents & single parent households  Time constraintsTime constraints  Casual living attitudes & priorities - “I can live with some dirtCasual living attitudes & priorities - “I can live with some dirt””
  14. 14. 14 Consumer Household Cleaning Tasks/Markets VacuumVacuum Manual Wet MopsManual Wet Mops Sweep/Dry MopSweep/Dry Mop DustingDusting Wet CleanWet Clean  Upholstered furniture  Wall-to-wall carpeting  Area rugs  Major/small kitchen appliances  Heater, radiator  Window coverings  Woodwork  Electronic equipment  Light fixtures/ceiling fans  Hardwood floors  Tile floors  Linoleum  Entry way/ mud room  Major/small kitchen appliances  Sink, toilet, tub& tile walls  Windows  Kitchen countertops  Glass/wood tops  Shower doors  Sliding glass doors  Fireplace/hearth  Hardwood floors  Tile floors  Cement floors OutdoorOutdoor  Deck and patio  Outdoor furniture  BBQ  Siding  Gutters  Fences  Driveways/sidewalks Source: 1994 B&D Cleaning A&U Study Cleaning Business Actions These tasks were already being addressed by current products Opportunities existed to “Invent & Market” In Adjacent Categories Traditional Served Cleaning Markets Unserved, Adjacent Markets
  15. 15. 15 Cleaning Category Consumer Segmentation  Consumer attitudinal segmentation showed both an emotional and rational need for new cleaning solutions beyond handheld vacs.  Convenient hard surface floor and wet cleaning needs were not being addressed. Source: 1994 Cleaning A&U Study Sweeping/ Dry Mop Sweeping/ Dry Mop Corded/Cordless Handheld Vacs Corded/Cordless Handheld Vacs Wet Cleaning Tools Wet Cleaning Tools Dirt/Messes are important to clean up - emotional Thecleaningtaskitselfisannoying-rational Low High High Anti-CleanersAnti-Cleaners CleaningCleaning FanaticsFanatics TolerantTolerant CleanersCleaners DiligentDiligent CleanersCleaners Cleaning Business Actions
  16. 16. 16  Scumbuster invented the “wet cleaning” category – $60MM business – single largest $ SKU in Black & Decker’s 100 year history.  Unique product design/manufacturing process resulted in a waterproof product up to 3 feet in water – competition couldn’t duplicate it. First to market.  Scumbuster was the first Black & Decker product on QVC – result $1MM of sales in one day  Floorbuster was the first cordless stick vac using the patented versapack rechargeable battery technology and new bagless technologies before Dyson vacs. - $5MM business  Achieved highest profitability return in history of the business - $100MM with >20% ROS. Cleaning Business Results
  17. 17. 17 Women’s Haircare Business Differentiation Marketing In Commoditized Categories
  18. 18. 18  Background: Victor Kiam of Remington bought the Clairol women’s haircare business in the mid 90’s (without the Clairol brand)  Haircare business eroded from ~$40MM to <$25MM (1998) (post-Clairol acquisition)  Market ranking: # 5 player - #5 player in hair dryers, #2 player in hot rollers, no presence at all in curling irons (source: NPD).  Conair and Helen of Troy (#1 and #2) had 100% distribution due to full line of haircare products and strong brand equity.  Remington products were essentially “me-too” with the exception of some key sku’s in Hot Rollers. Could only compete on price.  Consumer understanding of haircare purchase behavior not well understood – by Remington or the competition. Women’s Haircare Business Situation
  19. 19. 19 Haircare Business Actions Consumer Segment Frustrated/Skeptical Users 46% of Users Appearance Driven Users 29% of Users Self-Reliant Users 25% of Users Consumer Profile  Problem hair  Not confident about getting salon-style results  Haircare appliances rarely “work”  Willing to get it right, but easily frustrated  Hair enthusiast  Invests lots of time styling  Will pay premiums for new ideas/solutions  Changes hair style to match latest trends  Uninvolved – low fuss  Low maintenance styling  No time for styling  Looking for good value  Doesn’t change hair style much Positioning Tools for Problem Hair Tools for Today’s Hair Styles Tools for Style N’ Go Hair Salon-style results despite problem hair Professional salon results at home Get fast stylesConsumer Benefit: Haircare Market Segmentation Source: 2000 Haircare A&U Study  Women had differing attitudes about their hair and how much time/effort they were willing to spend to get the results they wanted.  Most competitive products focused on appearance driven users – only1/3 of the market.
  20. 20. 20 Women’s Haircare Business Actions Consumer Problem:  Conventional 1875W dryers blew hair everywhere leaving “problem hair”.  Result:  Takes a much longer time to dry  Potentially damages hair due to overheating The Vortex Jet Speed Dryer solved this problem:  Patented cyclonic airflow technology lifted up hair at the roots and dried it from the “inside-out” vs. blowing from the “outside-in”.  Result:  Dried hair in ½ the time  Made hair more manageable  Protected hair from overheating/damage
  21. 21. 21  The Vortex became the #1 hair dryer for two years in a row in the single largest category in Haircare (over 400 SKU’s).  The Vortex forced the exit of Applica, Inc. from Haircare.  Doubled sales/profits (15% ROS, 10% $ share) to $45M restored Remington to Clairol pre-acquisition sales levels.  Moved overall Remington haircare share from #5 in the category to #3.  Haircare study also resulted in new insights in other new products and merchandising.  New planogram consistent with study was tested at Wal-Mart for potential rollout nationwide. Women’s Haircare Business Results
  22. 22. 22 Business Expansion Through Unlocking Brand Equity
  23. 23. 23 Quickie Business Situation  Quickie - #1 manufacturer of hand cleaning tools* - invented the butterfly sponge mop and other mop/broom/brush innovations. * Source: IRI 52 weeks ending 4/20/’03  However, other companies encroaching on Quickie’s core business – cannibalizing core butterfly sponge mop sales -33% vs. year ago. Orange Glo  Hand cleaning tools – including Quickie - started to take on “commodity” status – retailers driving down retail and acquisition pricing. Floor Mate
  24. 24. 24 Quickie Business Actions  Need to expand scope of business beyond hand cleaning tools – move into more “integrated” cleaning solutions.  Invent new product innovation and technology – meeting consumer “needs” not addressed by competition.  Move into higher retail price points beyond $20-$50 but not avoid traditional corded vacs and sweepers Identify various combinations of hand tools, chemicals and power Inside the “Cleaning Triangle” Hand Tools Cleaning Chemicals Electrical/ Hydro Power Strategy:Strategy: surround the consumersurround the consumer with “total” cleaningwith “total” cleaning solutionssolutions
  25. 25. 25  Launched JetSweep - the first spray water powred push broom that swept dirt away in one pass - 15,000 retail outlets distribution, $1.2MM in year one sales.  Developed Quickie Quick Mop with Spic and Span Household Cleaner – first quick cleaning mop with scrubber feature plus branded disinfectant cleaner - $11MM annualized opportunity.  Developed a brand new cleaning tool line exclusively for Target – a major distribution void. Result 25 store test in Q2 ’03, Annualized opportunity - $8MM. Quickie Business Results
  26. 26. 26 Marketing Leadership Via Brand Equity Building
  27. 27. 27 Tenneco NAAM Business Situation 1. Exhaust systems & shocks/struts have relatively low service interval rates: #3/#6 rank Source: AAIA 1) Engine tune-ups – 33.5% 2) Brake jobs – 21.7% 3) Exhaust system job – 6.6% 4) Radiator/Cooling Flush – 5.1% 5) Ignition Wire – 4.6% 6) Shocks & Struts – 3.6% 7) Fuel Injection – 2.2% 2. Shock/Strut market stagnant/declining due to better quality original equipment driving lower service replacement rates for aftermarket shocks. Source: IMR 3. Exhaust market declining due to better quality original equipment – i.e. aluminum to stainless steel exhaust systems. Source: IMR North American Aftermarket Business Profile: • Sales: ~$500MM • Core businesses: Ride Control & Emission Control - #1 brands • Brands: Monroe Shocks & Struts, Walker Exhaust • 15% of total corporate revenue, balance – original equipment parts 3.3% 2.8% 2.9% 2.5% 2.6% 2.4% 2.6% 2.4% 2.2% 2.1% 2.0% 1.8% 1.7% 1.6% 1.4% 1.3% 1.2% 1.0% 1.0% 0.9% 1.2% 1.2% 1.2% 1.3% 1.4% 1.6% 1.8% 2.1% 0.0% 1.0% 2.0% 3.0% 4.0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Shock Absorbers (actual) Struts (actual) 6.06.6 7.4 8.0 9.2 10.7 11.8 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 2000 2001 2002 2003 2004 2005 2006 UnitsinMillions
  28. 28. 28 Tenneco NAAM Business Actions #1 Dirt and Mud have a hard time sticking – for a clean/shine that really last  Black waxes highly rated by Consumer Reports  Black Waxes were “best sellers” at key customers  Ion Car Polish – next generation polish – repels dirt/mud  Non-greasy shine  Unique 2-sided wipe  Tire Shine – No sling vs. competition  Wheel Cleaner – Spray On, Hose Off  “Best Sellers” at key customers Protect and coats critical engine parts for better gas mileage  Fuel Cleaners help improve fuel flow efficiency  Engine Treatment help protect critical engine parts  Spray on, wipe off  Formula similar to wheel clr.  Carpet Clr. was best seller  Spot Free Shine  Helps keep car cleaner longer  “Best Sellers” at key customers Licensed Product Opportunity with DuPont & Motorsports  DuPont wanted a new licensee to help re-enter Car Care market adjacent to their paint line.  NASCAR “Free” access to Jeff Gordon & 24 Car as an endorser in marketing communications  Tenneco had independently developed new “best in class” formulations in a water-based format  Identified/developed new “wear shield” friction modifier for performance chemical products
  29. 29. 29 Tenneco NAAM Business Actions #2 Brakes Parts – attractive category  #2 service item behind engine tune-ups  Very large/growing market – Friction: $1.1B++  All brake components (i.e. rotors, calipers) - $2.2B Source: IMR/Frost & Sullivan  Market not heavily concentrated – top 3 brands only account for 60% of sales  Top 3 brands at the time were weak: - Wagner: owned by Federal Mogul: No innovation - Raybestos: Sold by Dana to Affinia – restructuring - Bendix: Owned by Honeywell – tried to sell business to Wagner. No investment.  Monroe equity extension beyond Shocks - logical and easy to understand 1. 2. 3. Brakes Pads/Shoes 64 62 57 61 62 65 63 62 63 $938 $939 $865 $950 $969 $1,029 $1,130$1,123$1,126 0 10 20 30 40 50 60 70 80 2000 2001 2002 2003 2004 2005 2006P 2007P 2008P MMUnits $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $MM's New Category Opportunity: Brakes
  30. 30. 30 Tenneco NAAM Business Actions #2 PREMIUM PRICE POINT  Part Numbers: 642  Applications: Mid 60’s - 2010; Pass Car, Lt. Truck SUV, Med-Duty, some heavy duty  Formulation Type: Semi Metallic  Attributes: Hardware in box (e.g. Wire Wear Sensors, Noise Reduction Kits, Rubber coated shims, Lube)  Part Numbers: 391  Applications: Mid 60’s - 2010; Pass Car, Lt. Truck, SUV  Formulation Type: Ceramic/Non Asbestos Organic blends  Attributes: Hardware in box (e.g. Wire Wear Sensors, Noise Reduction Kits, Rubber coated shims, Lube) Monroe premium brake pads were first OE replacement application - engineered product – including all the hardware in box to do job right
  31. 31. Post Launch - Brake Packaging Structure & Line Graphic Change Before: After: 1) Original Packaging Design:  1000+ SKU’s spread among two friction types – Semi Metallic (DX) & Ceramics (CX)  Product packed in very expensive and non-customer friendly vacuum form “skin tight” configuration 2) Packout & Design Changes:  Shifted to easy to remove and simpler shrink wrap design  Consolidated dual friction type design into one product line look – similar to competitive packaging designs  Savings: ~$300M/yr. Tenneco NAAM Business Actions #2
  32. 32. 32 Tenneco NAAM Business Results DuPont Car Care:  Introduced 17 new products that generated over $5MM+ in annualized sales.  Obtained distribution in 15,000+ retail outlets: Mass Merchants/Home Centers & Automotive retailers.  Sold Tenneco/DuPont into brand new customers: Wal-Mart, Wal-Mart-Mexico, Lowe’s, Target and Auto-Zone.  Spray Wax, Tire Shine & Wheel Cleaner – top 10 best selling SKU’s in NPD; Wax received #5 rating out of 28 total waxes tested in 6/’06 Consumer Reports test. Monroe Brakes:  Achieved $20MM in sales with 100+ new customers against entrenched competitors.  Developed “best practice” new product development process resulting in $500M in new brake pad SKU’s including a new brake shoe line in just two years.  Grew margins and supply chain effectiveness – in house manufacturing program vs. third party suppliers. Reduced product cost by 25% and increased margin % by +8.3 ppts.
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