Selling into New Channels of Distribution can incrementally increase sales because the overhead associated with getting them is much lower

1. Quick Marketing Plan for PMI
By: Kip Klopp, MBA
For: Mike Bross, V.P. of Sales, PMI
Neil Burch, V.P. of Marketing, PMI
Last Date Adjusted: 1/15/2009
Market: After the purchase of Aladdin and Stanley, PMI has focused on the distribution through
Starbucks and Target, perhaps this (looking at NEW CHANNELS) is a LOW COST / IMMEDIATE IMPACT
method for expanding sales. These should be incremental sales so the overhead associated with getting
them is much lower and should bring more money to PMI’s bottom line. All the design, sourcing,
warehousing, systems, and overhead already exist and can easily be amortized over a wider sales base.
Industry Trends: A recession is expected to take place over the next five (5) quarters through the U.S.
Selectively, PMI clearly has some opportunities that it could exploit to overcome these general
economic trends. One of these is the GROCERY and DRUG STORE chains. In these outlets, which are
being impacted by both the recession and very low grocery gross margins (in some cases 2-3%) there is a
trend for the retailers to look at giving shelf space to Non-Food items with larger margins. PMI’s 45%
margin would be warmly welcomed by the retailers and fit nicely into the existing shift towards non-
food items.
Another opportunity to exploit is the OUTDOOR MARKET. This in essence, would be a new market for
PMI and would provide additional incremental sales. Generally, the outdoor market is holding up better
than the recession battered general market. The theory being that outdoors provides low cost vacations
and outdoor products give GREAT VALUE for the money to consumers. Fortunately, pursuing this market
does not have to be an expensive front loaded huge program to be successful. Rather, there are two
avenues to pursue that in combination have proven to be very effective in the outdoor market and can
be implemented quickly and at relatively LOW COST. (1) TARGET KEY TRENDSETTING RETAILERS who
influence the rest of the market and let the results trickle down to the other retailers who naturally
follow suit, (2) Use and “in-house” salesman (NW REP) to KEY ACCOUNTS (or at least a subset of those
key influencing retailers.
Needs and Wants: Currently, PMI does not have a NW Marketing Rep. I am suggesting a combination of
a sales rep and a marketing representative. My understanding is that you want to consider expanding
into the Outdoor Market. My experience is that your assumptions are correct (that Outdoor retailers are
more stable in their buying and might not be as price conscious), and my belief is that this is a good
strategy for you.
Goals:
1. I (Kip Klopp) would initiate sales in the NW throughout the NW representing PMI, to expand
sales while simultaneously learning more about your brands (Aladdin and Stanley); the
company and products.
2. I (Kip Klopp)would initiate calls and EFFECT a SALES program with companies in two new
channels (the Grocery Trade and the Outdoor Market)
(a) GROCERY. I would oversee and manage Comer and Hanby Federated Wholesalers.
(b) OUTDOOR. I would directly sell a limited number of the outdoor stores, some of the
trendsetting smaller outdoor retail chains who influence the rest of the market.
Fortunately, there are a few geographically diverse OPINION LEADING RETAILERS that can
easily be reached (because they loosely collaborate on buying.) Smaller retailers that have 3
to 8 stores (Hudson Trail Outfitters 7 stores in Mid-Atlantic; High Country Outfitters 3 stores
in Atlanta area; Blue Ridge Mountain Sports 13 stores from N.C. to Washington; Backwoods
7 stores in Kansas.)
1. There are some sizeable outdoor companies that are located in the Northwest who I
could also easily sell and service (REI, Joes, Eddie Bauer, Mountain Gear-Spokane…)

2. PAGE 2 ( Quick Marketing Plan for PMI)
2. You can put together a program for Worldwide to enhance their image within their
buying group.
3. Put together a program for Worldwide buying group (show /February 2009)
Strategies:
1. (Lower cost) Focus on contacts in the Northwest.
2. (Immediate Impact) Put a program together for Comer & Hanby
3. To ENSURE THE COST EFFECTIVENESS of this strategy, I propose that for one year you hire me
with a relatively lower base ($40 – 50,000) with an override on sales (2% or…) Then as needed,
we would engage independent reps/sales agencies to work for me and augment my efforts. I
would propose they are paid on a commission only basis to make most of the costs variable.
Alternatively, you could hire me at a reasonable base and then establish a considerable bonus
for me at year end when certain MUTUALLY AGREED milestones are met. Upon the conclusion
of the successful first year, we could then follow the same compensation formula or adjust to
maximize the results for future years.
My strengths:
1. Personal contacts within the New Channels that PMI can exploit.
2. Demonstrated success in both personal sales (B2B)and sales management.
3. A highly motivated achiever with unparalleled energy and enthusiasm.
I am eager to effect these strategies and generate these sales and would love to work for PMI. I will
follow up with a direct call to you to move this forward or alternately, you can reach me at the
above numbers.
Sincerely,
Edward (Kip) Klopp