Outline of methodology for establishing a beachhead in the US market for a consumer products company.

1. US Market Entry
Discussion
Stefan Preston NZTE 2011

2. US Market
Landscape

3. Half the
World’s
Consumer
Economy

4. Every
significant
scaleable
brand is
represented
in the
market.

5. Low Cost
Share
Growth
Different
Here
Established
Competitors
Same Use Brand
and Scale
Here
Bad Good

6. Structured Business
Environment and Culture
Rules You Rules You
Can’t Break
vs. Must Break
?
- showroom location
- trade show booth
- US staff
- retail calendar
- correct tier distribution

7. The buyer’s 100’s brands no time
world efficiency
GMROI
budgeted sales
fun
sell through risk
limited space suppliers
need for newness
people to deal with
am I
going to
look
Short-cuts
good? - Brand
- US based
- Americans
- I like visiting
- Compelling Story

8. Finding a
Way In

9. Trade Show was
an Effective
Way In
Lingerie President of
Niki Sachs
Americas Lingerie Assoc

10. “Niki Sachs started Hanro (highly successful Swiss lingerie
brand) in the US and is regarded as a doyen of the industry” -
Dept Store Buyer
Local Company
Knowledge
and
Experience
+ Knowledge
and
Experience

11. Different +
Good
Pretty + Everyday

12. Design
Challenge
“What is the minimum effective
deployment to be credible and
scaleable in market?”

13. Need USD3M in
Sales to Break
Even Sales ? x 50%GP
-
Fixed Overhead $700k
-
Investment $500k Launch Promo $800k
=
Zero

14. 3 Days to get Bergdorf Goodman, Henri Bendell, Fred Seagal
$3M Neiman Marcus
Nordstrom, Bloomingdales
- Positioning Doors Marshall Fields,
- Volume Doors
Macy’s, Dillards
Target, Sears, JC Penney
Let the
Americans do Kmart
the talking... Walmart

15. Our Industry
Brand Story Staff
(Earnest Kiwi or Disruptive Player)
Victoria Vandagriff
Positioning Door Herbert Mines
Oprah Brands
- Performance
PR/ Adv Agency
Mario Sorrenti
Showroom Experience
Industry Press
Brand Materials Elle Macpherson

16. Playing both a short and
long term game...
Short Term (Tactical) Long Term (Strategic)
- Need for early volume - Get into the right volume accounts
- Keep home fire burning - Innovation in design
- Don’t under-deliver - Tune product range and comms
- Maintain confidence of board - Over deliver in positioning doors
- Take risks to gain attention
- Work on economics

17. Winning in
Bloomingdales 57th

19. Guerilla
Marketing

23. Trade
Show

24. Showroom

25. Buyer
Experience

26. Business
Story

27. Questions