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How to Efficiently Build Your Brand - 5 Ways to Grow BIG, While Spending Small

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Tammy Katz, CEO of Katz Marketing Solutions presents How to Efficiently Build Your Brand at the International Fancy Food Show

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How to Efficiently Build Your Brand - 5 Ways to Grow BIG, While Spending Small

  1. 1. How to Efficiently Build Your Brand 5 Ways to Grow BIG , While Spending Small
  2. 2. Session Goals <ul><li>Help You Unleash your Brand’s Potential </li></ul><ul><li>Review 5 Brand Building Best Practices </li></ul><ul><ul><li>Definitions and How To’s </li></ul></ul><ul><ul><li>Case Studies and Inspiration… </li></ul></ul>
  3. 3. Great Brands – Best Practices
  4. 4. Session Goals <ul><li>Help You Unleash your Brand’s Potential </li></ul><ul><li>Review 5 Brand Building Best Practices </li></ul><ul><ul><li>Definitions and How To’s </li></ul></ul><ul><ul><li>Case Studies and Inspiration </li></ul></ul><ul><ul><li>Work Sessions </li></ul></ul><ul><li>Brand Development Action Plans </li></ul>
  5. 5. 2009 Goals <ul><li>2009 “Dream” </li></ul><ul><li>1.___________________________________________________________________ </li></ul><ul><li>2.___________________________________________________________________ </li></ul><ul><li>3.___________________________________________________________________ </li></ul><ul><li>4.___________________________________________________________________ </li></ul><ul><li>2007 Projection </li></ul><ul><li>1.___________________________________________________________________ </li></ul><ul><li>2.___________________________________________________________________ </li></ul><ul><li>3.___________________________________________________________________ </li></ul><ul><li>4.___________________________________________________________________ </li></ul>
  6. 6. Making More… with Less X X
  7. 7. 5 Best Practices <ul><li>Winning product development and differentiation strategies </li></ul><ul><li>Effective Brand Positioning </li></ul><ul><li>Deliberate Distribution Strategies </li></ul><ul><li>Consumer Intimacy </li></ul><ul><li>Guerilla Marketing </li></ul>
  8. 8. Assessment 5. Guerilla Marketing 4. Consumer Intimacy 3. Deliberate Distribution Strategies 2. Effective Brand Positioning 1. Winning product development and differentiation strategies Need Gap (Importance – Skills) Our Skills (1-10) 10 is great Importance (1-10) 10 is critical Best Practice
  9. 9. 5 Best Practices <ul><li>Winning product development and differentiation strategies </li></ul><ul><li>Effective Brand Positioning </li></ul><ul><li>Deliberate Distribution Strategies </li></ul><ul><li>Consumer Intimacy </li></ul><ul><li>Guerilla Marketing </li></ul>
  10. 10. 5 Best Practices Start. Stop. Continue….
  11. 11. Winning Product Development and Differentiation Strategies <ul><li>Build true superiority and differentiation </li></ul><ul><ul><li>- Relevance! </li></ul></ul><ul><li>Clarify the Concept… </li></ul><ul><li>… . Deliver with a Killer Product </li></ul><ul><li>‘ Obsess’ about delighting the consumer </li></ul><ul><li>Educate the trade and consumer </li></ul><ul><li>Use a disciplined Product Development Process </li></ul><ul><li>Leverage being small and nimble </li></ul>
  12. 12. Build true superiority and differentiation <ul><li>Measurable win vs. competition on key attributes (ie taste, flavor, purchase interest) </li></ul><ul><li>Confirm real or perceived difference </li></ul><ul><li>Challenge/extend all concepts </li></ul><ul><li>Don’t “Gold Plate”: Ensure difference is consumer relevant </li></ul><ul><li>Track and maintain competitive superiority – performance vs. relevant competition </li></ul>
  13. 13. Clarify the Concept… <ul><li>Consumer understands </li></ul><ul><ul><li>what it is </li></ul></ul><ul><ul><li>why they need it </li></ul></ul><ul><ul><li>how to ‘use’ it </li></ul></ul>???!
  14. 14. Clarify the Concept… <ul><li>Product, packaging, distribution, in-store placement, and P.O.S. </li></ul><ul><li>5 words or less challenge! </li></ul><ul><li>Confirm consumer appeal </li></ul>
  15. 15. .. Deliver with a Killer Product <ul><li>“ Delicious!!” according to the Company’s lone silver palate not </li></ul><ul><li>consumers’ </li></ul><ul><li>Less than 50% definitely or probably would buy </li></ul><ul><li>Shallow repeat ‘because’….(and other fairy tales) </li></ul><ul><li>‘ We’re our own category’ </li></ul><ul><li>Superior to competition on key category attributes (e.g. taste and flavor) </li></ul><ul><li>+ 60% definitely or probably would buy </li></ul><ul><li>+50% repeat rate </li></ul><ul><li>Above average purchase cycle (# units per year) </li></ul>Killer Products are: And are not:
  16. 16. Obsess about Delighting the Consumer Two Company Cultures:
  17. 17. Obsess about Delighting the Consumer <ul><li>Identify, structure, and use consumer and trade feedback loops to improve </li></ul><ul><li>Know Thy Target; Know Thy Target’s Unmet Needs </li></ul><ul><ul><li>Maintain deep consumer expertise </li></ul></ul><ul><ul><li>Focus on Usage, not just Units </li></ul></ul><ul><li>Monitor, incorporate and anticipate consumer trends </li></ul><ul><li>Measure trend performance with consumer </li></ul>
  18. 18. Educate and Elevate <ul><li>Teach the trade and consumer about your product superiority </li></ul><ul><li>Simple, consistent message in their language </li></ul><ul><li>Identify and leverage communication touch points </li></ul><ul><li>Romance and passion </li></ul>
  19. 19. Use a Disciplined Product Development Process <ul><li>Set goals and P&L hurdles upfront </li></ul><ul><li>Evaluate alternatives! </li></ul><ul><li>Determine Project Leader and Management Sponsor </li></ul><ul><li>Constant collaboration… especially Marketing & R&D </li></ul><ul><li>Don’t proceed until you can delight consumers – internally or with external resources </li></ul>Launch Testing and Validation Development Viability Assessment Ideation
  20. 20. Disciplined Product Development Process Outcomes Key Issues Phase <ul><li>Performance tracking data </li></ul><ul><li>Plan refinements </li></ul><ul><li>- Refined business model </li></ul><ul><li>Go to market decisions </li></ul><ul><li>Launch strategy </li></ul><ul><li>Viable concept </li></ul><ul><li>Viable product </li></ul><ul><li>Product/ </li></ul><ul><li>concept fit </li></ul><ul><li>Ability to efficiently produce </li></ul><ul><li>Go/No Go/ Rework </li></ul><ul><li>Alternative Ideas </li></ul><ul><li>Prioritized potential ideas </li></ul><ul><li>Cross-functional coordination </li></ul><ul><li>Excellent execution </li></ul><ul><li>“ Over-com-munication” </li></ul><ul><li>Is there sufficient consumer appeal? </li></ul><ul><li>Is there sufficient market potential? </li></ul><ul><li>Are assumptions valid? </li></ul><ul><li>Is the concept viable and optimal? </li></ul><ul><li>What will the product be? </li></ul><ul><li>- Can ‘we’ execute it well? </li></ul><ul><li>What’s the market potential? </li></ul><ul><li>Is it lucrative? (Year 1 and Year 3 P&L) </li></ul>What’s possible? Is it on strategy? Does the consumer want it? Launch Testing and Validation Development Viability Assessment Ideation
  21. 21. Leverage being Small and Nimble <ul><li>Speed to market </li></ul><ul><li>Trade and consumer intimacy </li></ul><ul><li>Own your niche </li></ul><ul><li>Go where mega brands can’t </li></ul>
  22. 22. Case Study: Vosges Haut-Chocolat <ul><li>Luxury haut-chocolats with exotic worldly flavor influence </li></ul><ul><li>Highest quality global seasonings </li></ul><ul><li>‘ Chocolate visionary’ </li></ul><ul><li>Concepts: Each product tells a story about a culture and distinct personality; reinforced at POS </li></ul><ul><ul><li>Products with a soul </li></ul></ul><ul><li>Concept delivery: each batch QC’d by CEO </li></ul>
  23. 23. Case Study: Vosges Haut-Chocolat <ul><li>Ongoing product improvement </li></ul><ul><li>Results: </li></ul><ul><ul><li>Started in 1998 </li></ul></ul><ul><ul><li>2007 Sales projected at $15MM; +67% vs. last year </li></ul></ul>
  24. 24. Case Study: Mighty Leaf Tea Company <ul><li>Concept: make premium global tea in America portable </li></ul><ul><li>Developed proprietary Mighty Leaf Tea Pouches TM : silken pouches that deliver superior, whole leaf tea </li></ul><ul><li>Multi-sensory experience </li></ul><ul><li>Continuous innovation: biodegradable tea pouch in ‘06 </li></ul>
  25. 25. Case Study: Mighty Leaf Tea Company <ul><li>Packaging to educate and assist consumers </li></ul><ul><ul><li>Color coded to communicate energy level (caffeine) and daypart </li></ul></ul><ul><ul><li>Steeping instructions on each tea bag ‘which makes or breaks a tea experience’ </li></ul></ul><ul><li>Results: </li></ul><ul><ul><li>Founded in ‘95 </li></ul></ul><ul><ul><li>Inc. 500 in ’05, ’06: +400% 3-year growth rate </li></ul></ul><ul><ul><li>’ 06 Sales: $13.5MM </li></ul></ul>
  26. 26. Winning Product Development and Differentiation Strategies <ul><li>Build true superiority and differentiation </li></ul><ul><ul><li>- Relevance! </li></ul></ul><ul><li>Clarify the Concept… </li></ul><ul><li>… . Deliver with a Killer Product </li></ul><ul><li>‘ Obsess’ about delighting the consumer </li></ul><ul><li>Educate the trade and consumer </li></ul><ul><li>Use a disciplined Product Development Process </li></ul><ul><li>Leverage being small and nimble </li></ul>
  27. 27. 5 Best Practices <ul><li>Winning product development and differentiation strategies </li></ul><ul><li>Effective Brand Positioning </li></ul><ul><li>Deliberate Distribution Strategies </li></ul><ul><li>Consumer Intimacy </li></ul><ul><li>Guerilla Marketing </li></ul>
  28. 28. What is Positioning? <ul><li>Positioning - noun, verb </li></ul><ul><li>the way we want customers to perceive, think and feel about our brand versus competitive entries 1 ; </li></ul><ul><li>the brand’s perception in the prospect’s mind that takes into consideration not only its own strength and weaknesses, but those of its competitors as well 1 </li></ul>1 Trout & Ries
  29. 29. What is Positioning? <ul><li>Positioning - </li></ul><ul><li>The distinct intellectual location of your brand </li></ul>
  30. 30. Positioning - examples “ How we want our customers perceive us….”
  31. 31. Positioning - examples “… versus competition….”
  32. 32. Positioning - examples … and is distinct…
  33. 33. Benefits of Strategic Positioning <ul><li>Tool to build competitive advantage </li></ul><ul><ul><li>Ability to reposition competition </li></ul></ul>
  34. 35. Benefits of Strategic Positioning <ul><li>Tool to build competitive advantage </li></ul><ul><ul><li>Ability to reposition competition </li></ul></ul><ul><li>Enhanced profitability </li></ul>Perceived Superiority vs. Competition Pricing
  35. 36. Benefits of Strategic Positioning
  36. 37. Benefits of Strategic Positioning <ul><li>Tool to build competitive advantage </li></ul><ul><ul><li>Ability to reposition competition </li></ul></ul><ul><li>Enhanced profitability </li></ul><ul><li>Efficiency </li></ul><ul><ul><li>Consistency and synergy of business efforts </li></ul></ul><ul><ul><li>Precision </li></ul></ul><ul><ul><li>Focus </li></ul></ul>
  37. 38. Best Practices
  38. 39. Best Practices
  39. 40. Positioning – the Strategic Blueprint <ul><li>To __________ (Target)________________________________. </li></ul><ul><li>(Brand name) is the brand of (category frame of reference)____ </li></ul><ul><li>That (Benefit)_________________________________________ </li></ul><ul><li>Because (Reason(s) Why) 1)_____________________________, 2)_______ _________________3)_________________________. </li></ul><ul><li>  </li></ul><ul><li>The brand character is ___________________________________. </li></ul><ul><li>  </li></ul>
  40. 41. Positioning – the Strategic Blueprint Example: Orville Redenbacher’s Popcorn (at launch) <ul><li>To people who love popcorn, make it at home, and are frustrated about uneven results </li></ul><ul><li>Orville Redenbacher’s is the brand of popping corn </li></ul><ul><li>That makes the best popcorn </li></ul><ul><li>Because a) it uses the best hybrid popcorn kernel b) it pops up lighter and fluffier than ordinary popcorn c) it leaves fewer unpopped kernels and d) it was developed by a devoted popcorn farmer </li></ul><ul><li>The brand character is likeable, folksy, straightforward and honest. </li></ul>
  41. 42. Positioning – the Strategic Blueprint <ul><li>To __________ (Target)________________________________. </li></ul><ul><li>(Brand name) is the brand of (category frame of reference)________ </li></ul><ul><li>That (Benefit)_________________________________________ </li></ul><ul><li>Because (Reason(s) Why) 1)_____________________________, 2)_______ _________________3_________________________. </li></ul><ul><li>  </li></ul><ul><li>The brand character is ___________________________________. </li></ul><ul><li>  </li></ul><ul><li>Demographic target </li></ul><ul><li>Purchaser or user? </li></ul><ul><li>Usage profile </li></ul><ul><li>Need mindset </li></ul>
  42. 43. Positioning – the Strategic Blueprint <ul><li>To __________ (Target)________________________________. </li></ul><ul><li>(Brand name) is the brand of (category frame of reference)________ </li></ul><ul><li>That (Benefit)_________________________________________ </li></ul><ul><li>Because (Reason(s) Why) 1)_____________________________, 2)_______ _________________3_________________________. </li></ul><ul><li>  </li></ul><ul><li>The brand character is ___________________________________. </li></ul><ul><li>  </li></ul><ul><li>SOURCES: </li></ul><ul><li>Consumer research </li></ul><ul><li>Customer points of contact </li></ul><ul><li>Customer analysis </li></ul><ul><li>Industry research </li></ul><ul><li>Category unmet needs </li></ul>
  43. 44. Positioning – the Strategic Blueprint <ul><li>To __________ (Target)________________________________. </li></ul><ul><li>(Brand name) is the brand of (category frame of reference)________ </li></ul><ul><li>That (Benefit)_________________________________________ </li></ul><ul><li>Because (Reason(s) Why) 1)_____________________________, 2)_______ _________________3_________________________. </li></ul><ul><li>  </li></ul><ul><li>The brand character is ___________________________________. </li></ul><ul><li>  </li></ul><ul><li>Brand in consumer’s mind </li></ul><ul><li>Highest awareness brand name </li></ul><ul><li>Best brand name imagery </li></ul>
  44. 45. Positioning – the Strategic Blueprint <ul><li>To __________ (Target)________________________________. </li></ul><ul><li>(Brand name) is the brand of (category frame of reference)________ </li></ul><ul><li>That (Benefit)_________________________________________ </li></ul><ul><li>Because (Reason(s) Why) 1)_____________________________, 2)_______ _________________3_________________________. </li></ul><ul><li>  </li></ul><ul><li>The brand character is ___________________________________. </li></ul><ul><li>  </li></ul><ul><li>Industry or category </li></ul><ul><li>Array of substitute items </li></ul><ul><li>Competition for dollars spent </li></ul>
  45. 46. Positioning – the Strategic Blueprint <ul><li>To __________ (Target)________________________________. </li></ul><ul><li>(Brand name) is the brand of (category frame of reference)________ </li></ul><ul><li>That (Benefit)_________________________________________ </li></ul><ul><li>Because (Reason(s) Why) 1)_____________________________, 2)_______ _________________3_______________________. </li></ul><ul><li>  </li></ul><ul><li>The brand character is ___________________________________. </li></ul><ul><li>  </li></ul><ul><li>Real or perceived as proprietary </li></ul><ul><li>Primary advantageous outcome </li></ul><ul><li>Advantageous to the target </li></ul><ul><li>Functional or emotional </li></ul>
  46. 47. Positioning – the Strategic Blueprint <ul><li>To __________ (Target)________________________________. </li></ul><ul><li>(Brand name) is the brand of (category frame of reference)________ </li></ul><ul><li>That (Benefit)_________________________________________ </li></ul><ul><li>Because (Reason(s) Why) 1)_____________________________, 2)_______ _________________3_________________________. </li></ul><ul><li>  </li></ul><ul><li>The brand character is ___________________________________. </li></ul><ul><li>  </li></ul><ul><li>SOURCES: </li></ul><ul><li>Consumer feedback </li></ul><ul><ul><li>Probe for ultimate benefit </li></ul></ul><ul><li>Competitive analysis </li></ul><ul><li>Emotional or intellectual resonance </li></ul>
  47. 48. Positioning – the Strategic Blueprint <ul><li>To __________ (Target)________________________________. </li></ul><ul><li>(Brand name) is the brand of (category frame of reference)________ </li></ul><ul><li>That (Benefit)_________________________________________ </li></ul><ul><li>Because (Reason(s) Why) 1)_____________________________, 2)_______ _________________3_________________________. </li></ul><ul><li>  </li></ul><ul><li>The brand character is ___________________________________. </li></ul><ul><li>  </li></ul><ul><li>Features that support benefit </li></ul><ul><li>Proprietary or superior features </li></ul><ul><li>Product- or people-based </li></ul>
  48. 49. Positioning – the Strategic Blueprint <ul><li>To __________ (Target)________________________________. </li></ul><ul><li>(Brand name) is the brand of (category frame of reference)________ </li></ul><ul><li>That (Benefit)_________________________________________ </li></ul><ul><li>Because (Reason(s) Why) 1)_____________________________, 2)_______ _________________3_________________________. </li></ul><ul><li>  </li></ul><ul><li>The brand character is ___________________________________. </li></ul><ul><li>  </li></ul><ul><li>Brand described as a celebrity or distinct person </li></ul>
  49. 50. Positioning – the Strategic Blueprint <ul><li>To __________ (Target)________________________________. </li></ul><ul><li>(Brand name) is the brand of (category frame of reference)________ </li></ul><ul><li>That (Benefit)_________________________________________ </li></ul><ul><li>Because (Reason(s) Why) 1)_____________________________, 2)_______ _________________3_______________________. </li></ul><ul><li>  </li></ul><ul><li>The brand character is ___________________________________. </li></ul><ul><li>  </li></ul>SOURCES: Internal ideation Consumer research
  50. 51. Metromint Brand Positioning <ul><li>To people, primarily women, 25-45, who buy natural and specialty foods , and are heath-conscious, Metromint is brand of mintwater that gives you a unique cooling sensation because 1) it is made with pure water and real mint; 2) has a surprisingly vibrant taste .  </li></ul><ul><li>The brand character is healthy, sleek, active, cool, and unique. </li></ul><ul><li>  </li></ul>
  51. 52. Case Study: Metromint <ul><li>Distinct, simple concept: Mintwater that is uniquely refreshing </li></ul><ul><ul><li>Clearly communicated in product and packaging </li></ul></ul><ul><li>Polarizing initial concept responses – confirmed distinctiveness </li></ul><ul><li>Targeted launch to natural and specialty food retail channels </li></ul><ul><li>Launched at 2004 NASFT; rapid </li></ul><ul><li>authorization, expansion at Whole Foods </li></ul><ul><li>Results: </li></ul><ul><li>2006 Sales: +400% vs. YA </li></ul><ul><li> 2007 Sales: +300% vs. YA </li></ul><ul><li> Fastest growing Natural & Natural Flavored Water (SPINS) </li></ul>
  52. 53. Lesser Evil Brand Positioning <ul><li>To Baby Boomers, who want to snack healthier, without sacrificing taste, Lesser Evil is the brand of snacks, that is indulgent and healthier because </li></ul><ul><li>1) it tastes great, and 2) is made with the highest quality, natural (when possible) ingredients .  </li></ul><ul><li>The brand character is fun, honest, nostalgic, contemporary, and honest. </li></ul><ul><li>  </li></ul>
  53. 54. Case Study: Lesser Evil Snacks <ul><li>Positioning central to the business strategy </li></ul><ul><li>Clearly positioned as an indulgent, healthier snack </li></ul><ul><li>Capitalized on category need gap: healthier snacks that do not sacrifice taste </li></ul>
  54. 55. Case Study: Lesser Evil Snacks <ul><li>Positioning central to the business strategy </li></ul><ul><li>Clearly positioned as an Indulgent, healthier snack </li></ul><ul><li>Capitalized on category need gap: healthier snacks that did not sacrifice taste </li></ul><ul><li>Snacking without the guilt </li></ul><ul><li>Strategically ‘depositioning’ category leader </li></ul><ul><li>and other healthy snacks </li></ul><ul><li>Results: </li></ul><ul><ul><li>#1 movement in SPINS 18 months </li></ul></ul><ul><li>after launch (in ’04) </li></ul><ul><ul><li>2007 Sales Projecting at +100% vs. YA </li></ul></ul>
  55. 56. Case Study: Stirrings <ul><li>Capitalized on consumer unmet need for high quality mixers, compliment to high quality spirits </li></ul><ul><li>Benefits: </li></ul><ul><ul><li>Physical: fantastic, restaurant- quality mixed drink at home </li></ul></ul><ul><ul><li>Emotional: makes you a great ‘effortless’ entertainer </li></ul></ul>
  56. 57. Case Study: Stirrings <ul><li>To discriminating ‘foodies’, primarily women purchasers, 27-35 , who like to entertain and create a great impression, Stirrings is the brand of mixers that makes you a great entertainer because 1) you can easily make restaurant-quality cocktails 2) it is of comparable quality to your high quality liquor ; 3) it is made with real fruit juice, triple filtered water and cane sugar. </li></ul><ul><li>The brand character is sophisticated, innovative,   </li></ul><ul><li>and engaging . </li></ul>
  57. 58. Case Study: Stirrings <ul><li>Results: </li></ul><ul><li>- Launched in 2000 </li></ul><ul><li>- 2006 Sales: +60% vs. YA </li></ul><ul><li>- Attracted ‘arm’s length investment partnership’ with Diageo in ‘07 </li></ul><ul><li>- 2007 Sales: approaching $30 MM </li></ul><ul><li> </li></ul>
  58. 59. ___________ Brand Positioning <ul><li>To (Target)____________________ ________________________________ . </li></ul><ul><li>(Brand name) __________________________________ is the brand of (Category Frame of reference) ________________________________ t hat (Benefit) ________________________________________________ </li></ul><ul><li>because (Reason(s) Why) 1)__________________________________, 2)_______ _________________3)_________________________. </li></ul><ul><li>  </li></ul><ul><li>The brand character is ___________________________________. </li></ul><ul><li>  </li></ul>
  59. 60. How to Build and Leverage your Brand Positioning <ul><li>Prepare and analyze </li></ul><ul><li>Recruit core team </li></ul><ul><li>Collaborate and create </li></ul><ul><li>Communicate and proselytize </li></ul><ul><li>Integrate into all key plans: annual, strategic, cross-functional </li></ul><ul><li>Monitor, track, and refine </li></ul>
  60. 61. 5 Best Practices <ul><li>Winning product development and differentiation strategies </li></ul><ul><li>Effective Brand Positioning </li></ul><ul><li>Deliberate Distribution Strategies </li></ul><ul><li>Consumer Intimacy </li></ul><ul><li>Guerilla Marketing </li></ul>
  61. 62. Deliberate Distribution Strategies Definition: The plan to launch and expand your brand in channels that maximize your brand’s profit potential.
  62. 63. Deliberate Distribution Strategies <ul><li>Be Consistent with Brand Strategy </li></ul><ul><li>Keep Channel/per store profitability focus </li></ul><ul><li>Build Base Distribution Performance </li></ul><ul><li>Nail Your Movement Story </li></ul><ul><li>Explore Strategic Visibility </li></ul><ul><li>Pursue Partners and Alliances </li></ul><ul><li>Tell consumers where to buy you </li></ul>
  63. 64. Be Consistent with Brand Strategy <ul><li>Enhance or Detract? </li></ul><ul><ul><li>Does your target shop (consume) there? </li></ul></ul><ul><ul><li>Is that placement consistent with brand image? </li></ul></ul><ul><ul><li>Will your brand perform well there vs. competition? </li></ul></ul><ul><ul><li>Do you have sufficient channel/account power? </li></ul></ul><ul><ul><li>Can you execute well in this channel? </li></ul></ul><ul><li>“The medium is the message” </li></ul><ul><li>Maintain courage to say “No” </li></ul>
  64. 65. Keep Channel/per door profitability focus <ul><li>Comparative P & Ls </li></ul><ul><ul><li>Evaluate actual gross margins (sales – allowances – COGS) </li></ul></ul><ul><ul><li>Channel specific costs to serve: S, F, A&P, and G&A </li></ul></ul><ul><ul><li>Test vs. ongoing </li></ul></ul><ul><li>‘ Good’ vs. ‘Bad’ Channels </li></ul><ul><li>“ Go Where the Money Is… Go There Often” </li></ul><ul><ul><li>Willie Sutton, Bank Robber </li></ul></ul>
  65. 66. Build Base Distribution Performance <ul><li>‘Perfect the Model’ from your Core… and replicate profit/store best practices </li></ul><ul><li>- strongest stores </li></ul><ul><li>- strongest markets </li></ul><ul><li>- strongest channels </li></ul><ul><li>- strongest sku’s </li></ul><ul><li>Monitor consumer demand, </li></ul><ul><li>net of distribution gains! </li></ul>
  66. 67. Nail and Tell your Movement Story <ul><li>Show Trade Sales and Profit Impact </li></ul><ul><ul><li>Incremental Profit Trumps </li></ul></ul><ul><ul><li>‘Profit Calculator’ </li></ul></ul><ul><ul><ul><li>Sales </li></ul></ul></ul><ul><ul><ul><li>Gross margins </li></ul></ul></ul><ul><ul><ul><li>Turns </li></ul></ul></ul><ul><ul><ul><li>GMROI </li></ul></ul></ul>
  67. 68. Explore Strategic Visibility <ul><li>Brand credibility and prestige </li></ul><ul><ul><ul><li>Upscale retailers, gift stores, caterers, upscale restaurants and other fashion mavens </li></ul></ul></ul><ul><li>Brand awareness and trial </li></ul><ul><ul><ul><li>Foodservice, events, mass channels, quality sampling </li></ul></ul></ul>
  68. 69. Pursue Partners and Alliances <ul><li>Complimentary brands and businesses </li></ul><ul><li>Be creative! </li></ul><ul><ul><li>Who else is targeting my consumer? </li></ul></ul><ul><ul><ul><li>Who is already doing programs that we can join? </li></ul></ul></ul><ul><ul><li>Who else is targeting my target accounts? </li></ul></ul><ul><ul><li>What other items are my consumer buying when they need my brand? </li></ul></ul><ul><ul><li>When is the consumer in the right frame of mind to buy my brand? </li></ul></ul>
  69. 70. Tell Consumers Where to Buy You <ul><li>All external communication </li></ul><ul><li>Website – store locator, internet sales </li></ul><ul><li>In-store location, when possible </li></ul><ul><li>All sampling </li></ul>
  70. 71. Case Study: Dancing Deer Bakery <ul><li>Launched, then strategically </li></ul><ul><li>de-emphasized coffeehouses </li></ul><ul><li>Williams-Sonoma distribution: getting it right </li></ul><ul><li>Built strong Whole Foods regional performance, then expansion </li></ul><ul><li>No grocery or Big Box </li></ul><ul><li>Results: Launched in 1994, $10.5MM in 2007 (+35%) </li></ul>
  71. 72. Case Study – Sarabeth’s Kitchen <ul><li>Began with fruits and jams </li></ul><ul><li>Opened Sarabeth’s Restaurant – Manhattan sensation </li></ul><ul><li>Awarded the concession at the Whitney Museum (NYC) – ‘91 </li></ul><ul><li>Secured distribution at Williams- Sonoma, Balducci’s and Bloomingdale’s </li></ul>
  72. 73. Case Study – Sarabeth’s Kitchen <ul><li>Drove additional specialty, retail doors </li></ul><ul><li>Built web presence and mail order data </li></ul><ul><li>base since ’95 – now 60M names </li></ul><ul><li>Results: </li></ul><ul><li>2006 Sales: doubled vs. 2005 </li></ul><ul><li>2007 Sales: +50% vs. YA </li></ul>
  73. 74. Case Study: Crimson Cup <ul><li>Started in ’91 as a supplier to provide people with the best coffee </li></ul><ul><li>Evolved to provide complete system for coffeehouse and coffee movement </li></ul><ul><li>Comprehensive per store consultative support </li></ul>
  74. 75. Case Study: Crimson Cup <ul><li>Best practices and tools to maximize profit potential (e.g. location, product mix, pricing, merchandising, training) </li></ul><ul><ul><li>Steps to optimize marketing potential </li></ul></ul><ul><ul><li>Localizable tools </li></ul></ul><ul><li>Results: </li></ul><ul><ul><li>Same-store sales: +11.4% vs. YA </li></ul></ul><ul><ul><li>(3- 10x competition) </li></ul></ul><ul><ul><li>2007 Sales: $7MM (+25% vs. YA) </li></ul></ul>
  75. 76. 5 Best Practices <ul><li>Winning product development and differentiation strategies </li></ul><ul><li>Effective Brand Positioning </li></ul><ul><li>Deliberate Distribution Strategies </li></ul><ul><li>Consumer Intimacy </li></ul><ul><li>Guerilla Marketing </li></ul>
  76. 77. Consumer Intimacy <ul><li>Know your primary target </li></ul><ul><li>Structure listening and responding </li></ul><ul><ul><li>Maintain dialogue with heavy users </li></ul></ul><ul><li>Get objective, measurable consumer feedback </li></ul><ul><li>Prioritize positioning, usage, new products </li></ul><ul><li>Establish an Expert with a ‘seat at the table’ </li></ul><ul><li>Maintain as a process, not an event </li></ul>
  77. 78. Know your primary target <ul><li>Demographics </li></ul><ul><li>Usage </li></ul><ul><li>Needs and beliefs </li></ul><ul><li>Heavy users, vs. other users </li></ul><ul><li>Who, what, when, where and why they consume you </li></ul><ul><li>Know the group ; know the person </li></ul>
  78. 79. Case Study: Honest Tea <ul><ul><li>CEO is, and knows, his target and their soul: ‘cultural creatives’; environmentally/socially conscious consumers </li></ul></ul><ul><ul><li>Addressed consumer unmet need: thirst quenching beverage that is not overly sweet/sugary or too bland </li></ul></ul><ul><ul><li>Deliver on brand promise: </li></ul></ul><ul><ul><li>authentic, honest, and healthier </li></ul></ul><ul><ul><li>Active dialogue with consumers; </li></ul></ul><ul><ul><li>cultural commitment </li></ul></ul>
  79. 80. Case Study: Honest Tea <ul><ul><li>Consumer intimacy drives new products: </li></ul></ul><ul><ul><li>Target: ‘cultural creatives’; environmentally/socially conscious consumers </li></ul></ul><ul><ul><li>Addressed consumer unmet need: thirst quenching beverage that is not overly sweet/sugary; healthier </li></ul></ul><ul><ul><li>Confirmed with consumers </li></ul></ul>
  80. 81. Case Study: Honest Tea <ul><ul><li>Results: </li></ul></ul><ul><ul><li>Founded in 1998; first account: Fresh Fields (WFM) </li></ul></ul><ul><ul><li>2007 Sales projections: $25 MM; +50% vs. YA </li></ul></ul><ul><ul><li>25% market share of ready-to-drink market; 90% ACV (SPINS) </li></ul></ul>
  81. 82. Structure Listening and Responding <ul><ul><li>Maintain consumer feedback on your brand </li></ul></ul><ul><ul><li>Probe for and use trade and consumer feedback </li></ul></ul><ul><ul><li>Seek opportunities for feedback on key issues </li></ul></ul><ul><ul><li>“How are we doing?” “What can we do better?” </li></ul></ul><ul><ul><li>Leverage current assets! </li></ul></ul>
  82. 83. Maintain dialogue with heavy users <ul><li>Consumer database! </li></ul><ul><li>Consumer referrals </li></ul><ul><li>Website </li></ul><ul><li>Advisory council </li></ul>
  83. 84. Get Objective, Measurable Feedback <ul><ul><li>Key attributes </li></ul></ul><ul><ul><li>Measurable (e.g. 1-5 scale) </li></ul></ul><ul><ul><li>Vs. Competition </li></ul></ul><ul><ul><li>Likelihood of purchasing </li></ul></ul><ul><ul><li>Repeat to track progress </li></ul></ul><ul><ul><li>Prioritize positioning, usage, and new products - - only data you can and will act on! </li></ul></ul>
  84. 85. Case Study: RiceSelect <ul><li>Maintained and used a 600+ consumer database and </li></ul><ul><li>feedback loop since brand’s infancy </li></ul><ul><li>Capitalized on and drove consumers’ increasingly sophisticated rice palate </li></ul><ul><li>Enjoyed rapid brand growth via distribution and </li></ul><ul><li>approached a potential plateau </li></ul><ul><li>Commissioned a cornerstone Attitude & Usage </li></ul><ul><li>study to take $20+ million brand to next level </li></ul>
  85. 86. Case Study: RiceSelect <ul><li>Capitalized on key learnings: </li></ul><ul><ul><li>Redefined competition </li></ul></ul><ul><ul><li>Identified and targeted heavy users </li></ul></ul><ul><ul><li>Need to strengthen brand positioning </li></ul></ul><ul><ul><li>Clarified priority brand and product attributes </li></ul></ul><ul><ul><li>Pinpointed opportunity to increase repeat sales </li></ul></ul><ul><li>Results: 2007 Sales: +15% versus YA </li></ul>
  86. 87. Establish an Expert with a ‘seat at the table’… <ul><ul><li>“What does the consumer want?” </li></ul></ul><ul><ul><li>“How will our consumers respond?” </li></ul></ul><ul><li>… especially to support growth and strategic </li></ul><ul><li>initiatives </li></ul>
  87. 88. Maintain as a process, not an event <ul><li>Ongoing consumer dialogue </li></ul><ul><li>Track key metrics and trend </li></ul><ul><li>Objective measurement of productivity </li></ul><ul><li>Culture of listeners…. </li></ul>
  88. 89. SaltWorks’ Artisan Salt <ul><li>Started as a hobby in ‘01, grown to +$10MM </li></ul><ul><li>Leader in sea salt; great salt credentials </li></ul><ul><ul><li>Educate and elevate market via Salt Reference Guide </li></ul></ul><ul><li>eCommerce based business attracts highly targeted consumers </li></ul><ul><ul><li>Over 25M subscribers </li></ul></ul><ul><ul><li>Rich dialogue and responsiveness to consumer needs </li></ul></ul><ul><ul><li>Consumers provide global new product ideas </li></ul></ul><ul><ul><li>Leverage Search Engine Optimization </li></ul></ul><ul><li>Artisan Salt: respond to consumer demand for healthier, gourmet salt </li></ul>
  89. 90. SaltWorks’ Artisan Salt <ul><li>Retail brand launched in ’06 </li></ul><ul><ul><li>Consumer-based merchandising and product mix counsel </li></ul></ul><ul><li>Results: </li></ul><ul><li>SaltWorks 2007 sales: + 100% vs. YA </li></ul><ul><li>Artisan Salt line: rapid acceptance at Whole Foods and Kroger </li></ul>
  90. 91. 5 Best Practices <ul><li>Winning product development and differentiation strategies </li></ul><ul><li>Effective Brand Positioning </li></ul><ul><li>Deliberate Distribution Strategies </li></ul><ul><li>Consumer Intimacy </li></ul><ul><li>Guerilla Marketing </li></ul>
  91. 92. Guerilla Marketing <ul><li>Definition: </li></ul><ul><ul><li>unconventional marketing intended to get maximum results from minimal resources </li></ul></ul>
  92. 93. Guerilla Marketing <ul><li>Keep Marketing Programs On Strategy </li></ul><ul><li>or Cut </li></ul><ul><li>Diagnose Key Issue(s)… </li></ul><ul><li>… Use the Right Tools </li></ul><ul><li>Maximize each Investment </li></ul><ul><li>‘Perfect the Recipe’: </li></ul><ul><li>- Expand your best model! </li></ul>
  93. 94. Keep Marketing Programs On Strategy or Cut The 5-15% Thief <ul><li>Ensure 3-5 Marketing Strategies link to strategic and annual plan </li></ul><ul><li>Ensure Marketing Tactics support strategies or redirect the $$ </li></ul>
  94. 95. Keep Marketing Programs On Strategy or Cut
  95. 96. Diagnose Key Issues… <ul><li>Distribution </li></ul><ul><li>Awareness </li></ul><ul><li>Trial </li></ul><ul><li>Repeat </li></ul>
  96. 97. … and Use the Right Tools = /
  97. 98. Secure Distribution <ul><li>Support the Sales Team: </li></ul><ul><li>Compelling ($$) sell-in materials </li></ul><ul><li>Train and equip </li></ul><ul><li>Prioritize channels </li></ul><ul><li>Trade advertising and communication </li></ul>
  98. 99. Building Awareness <ul><li>Build and prioritize PUBLIC RELATIONS </li></ul><ul><li>Prioritize heavy user target </li></ul><ul><li>Target influencers, to drive word-of-mouth </li></ul><ul><li>High impact packaging, presentation and planogram </li></ul><ul><li>Think big: determine # aware’s to build marketing plan </li></ul>
  99. 100. Case Study: Brownie Points <ul><li>Public Relations Drives Brand Awareness </li></ul><ul><li>Started business in ’96 </li></ul><ul><li>Made their own “luck”: Customer thank you ‘evolves’ </li></ul><ul><li>to 4 minute Today Show interview in 1998 </li></ul><ul><ul><li>- Willingness to share her story </li></ul></ul><ul><ul><li>- Make story newsworthy </li></ul></ul><ul><ul><li>- Seize the opportunity </li></ul></ul><ul><ul><li>- ‘Editors are looking for stories’ </li></ul></ul>
  100. 101. Case Study: Brownie Points <ul><li>Subsequent features on CNBC, CNN, Entrepreneur, </li></ul><ul><li>The Food Network, and Rachel Ray </li></ul><ul><li>Leveraged PR credibility to land major accounts </li></ul><ul><li>Results: </li></ul><ul><li>Secured regional Kroger and Giant </li></ul><ul><li>Eagle distribution </li></ul><ul><li>2007 Sales: +110% vs. ’06 </li></ul>
  101. 102. Drive Trial <ul><li>Sample, sample, sample </li></ul><ul><ul><li>In-store </li></ul></ul><ul><ul><li>Out-of-store </li></ul></ul><ul><li>Maximize efficiency: </li></ul><ul><ul><li>$/sample </li></ul></ul><ul><ul><li>ROI </li></ul></ul><ul><ul><li>Consider partners </li></ul></ul><ul><ul><li>Make it an event! </li></ul></ul><ul><li>Maximize effectiveness: </li></ul><ul><ul><li>Tools to close the sale </li></ul></ul><ul><ul><li>Sample high opportunity targets </li></ul></ul><ul><ul><li>Sample with high aperture </li></ul></ul><ul><ul><li>Maximize trade participation </li></ul></ul>
  102. 103. Case Study: Metromint <ul><li>Sample, sample, sample </li></ul><ul><li>Founders initially </li></ul><ul><li>sampled in-store </li></ul><ul><li>Sample with big brand impact </li></ul><ul><li>Solicit sampling opportunities; </li></ul><ul><li>Make yourself ‘easy’ to sample </li></ul><ul><li>End-Run the ‘Big Event’ </li></ul>
  103. 104. Drive Repeat and Loyalty <ul><li>Improve product appeal </li></ul><ul><ul><li>Vs. competition </li></ul></ul><ul><li>Positioning, relevance </li></ul><ul><li>Pricing </li></ul><ul><li>In-, on-package, POS, and external communication to drive usage and use rate </li></ul><ul><ul><li>Focus on Heavy Users </li></ul></ul>
  104. 105. Case Study – Sarabeth’s Kitchen <ul><li>Develop, Retain and Expand Brand Fans </li></ul><ul><li>Early in their development, hired small agency to develop print campaign </li></ul><ul><li>Developed web presence in the 90’s ‘on a shoestring’ </li></ul><ul><li>Built and leveraged mailing list: </li></ul><ul><li>60M names </li></ul><ul><li>Selected as Oprah’s Favorite in 2000; several Oprah TV mentions since </li></ul>
  105. 106. Case Study: Vino De Milo <ul><li>Smart Strategic Basics </li></ul><ul><li>Distribution: </li></ul><ul><li>2003 launch in gourmet food stores; expanded to Wild Oats and Whole Foods </li></ul><ul><li>Rep ride-withs to educate on product and merchandising </li></ul><ul><li>Awareness: </li></ul><ul><li>Blind Taste Test events and stories (wins) for local food editors </li></ul>
  106. 107. Case Study: Vino De Milo <ul><li>Trial: </li></ul><ul><li>Make sampling events bigger: Founder presence, consumer sweepstakes, additional database names </li></ul><ul><li>Extensive in-store sampling; retailer support </li></ul><ul><li>Repeat: </li></ul><ul><li>New product news and specials to 3M database </li></ul><ul><li>Recipe suggestion POS </li></ul><ul><li>Results: </li></ul><ul><li>+100% yearly growth since ’03 launch </li></ul>
  107. 108. Maximize Each Investment <ul><li>1. What is the Program Objective? </li></ul><ul><li>What are the Options? </li></ul><ul><li>How can we be more efficient? </li></ul><ul><li>- Cost per X basis </li></ul><ul><li>How can we make this more effective? </li></ul><ul><li>What is the projected outcome? </li></ul><ul><li>Return on investment? </li></ul><ul><li>When will I measure and evaluate it to continue/expand? </li></ul><ul><li>6. … and ‘Use what you buy!’ </li></ul>
  108. 109. Case Study: Dancing Deer Creativity Maximizes Impact Creative Brand Awareness Electoral College Cookie Map at Faneuil Hall (’04 DNC Convention) Sampling Event as Mega-Event ‘ Break the Curse’ Cookie
  109. 110. ‘Perfect the Recipe’ <ul><li>Try multiple tactics, if manageable </li></ul><ul><li>Set measurable goals upfront </li></ul><ul><li>- Sales impact </li></ul><ul><li>- Cost (actual and ongoing) </li></ul><ul><li>- R.O.I </li></ul><ul><li>- Date to assess </li></ul><ul><li>Test, measure, repeat/refine </li></ul><ul><li>or redirect </li></ul><ul><li>Expand your best model! </li></ul>
  110. 111. Guerilla Marketing Worksheet <ul><li>Key Opportunity (ies)______________________________________ </li></ul><ul><li>Objective (goal):__________________________________________ </li></ul><ul><li>Strategy (how): __________________________________________ __________________________________________________________________________________________________________ </li></ul><ul><li>Tactics (3 options/best option) (what): </li></ul><ul><li>1.______________________________________________________________________________________ 2.______________________________________________________________________________________ </li></ul><ul><li>3.______________________________________________________________________________________ </li></ul><ul><li>Budget: ________________________________________________ </li></ul><ul><li>Projected Impact: ________________________________________ </li></ul><ul><li>Ways to Further Leverage Program___________________________ </li></ul><ul><li>_______________________________________________________ </li></ul>
  111. 112. Brand Development Action Plan <ul><li>Action Plan: </li></ul><ul><li>___________________________________________________________ </li></ul><ul><li>___________________________________________________________ </li></ul><ul><li>___________________________________________________________ </li></ul><ul><li>___________________________________________________________ </li></ul><ul><li>5. ___________________________________________________________ </li></ul><ul><li>Projected Impact Date </li></ul><ul><li>___________________________________________ __________ </li></ul><ul><li>___________________________________________ __________ </li></ul><ul><li>___________________________________________ __________ </li></ul><ul><li>___________________________________________ __________ </li></ul><ul><li>5. ___________________________________________ __________ </li></ul>
  112. 113. Questions and Answers
  113. 114. ‘Assignments’ 1. Market smart. 2. “High expectations are the key to everything.” - Sam Walton

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