Success Stories
Listed below are the stories from companies that RetailingWorks made Sam's Club and Wal-Mart suppliers.
Situation 1: Personal Care and Health Products
The Client had more than 25 patents on personal care and health related items. They attempted several times at producing and selling their products but never developed a strategy and plan.
RetailingWorks' Approach
A business plan was developed based upon a concise marketing plan utilizing the patents and organizing the products. This resulted in two groups of products directed at two distinct markets. The marketing plan consisted of a combination of retail merchandising, direct response, licensing and the professional market.
Result
The business plan was used to raise several million dollars in capital and launch the start-up company. One group of products retailed and licensed to a nationally recognized brand name bringing in a revenue stream. The other group of products is now being prepared for retail through DRTV as well as various other retail channels.
Situation 2: Houseware Brands to Sam's Club
Client is a major supplier of housewares to leading retailers utilizing licensing to brand their products. They use our services to help select, package, price, present and sell select brands to Sam's Club. Since Wal-Mart’s global procurement office in China handles all manufacturing, logistical communication and purchase order placement, this presents a true challenge.
RetailingWorks' Approach
We worked with them to design and develop a series of products to present to Sam's Club for a large advertised promotion as well as a regular line item. Particular attention was given to the price point, packaging and pallet presentation. We demonstrated our ability to handle the details of working with Wal-Mart's global procurement office in China to facilitate the logistics for on-time delivery.
Result
We were selected for a major promotion for fall '05. In addition, this promotion is a featured item in Sam's fall catalog. We are currently under serious consideration for regular line items in the clubs. This accomplishment occurred during two different buyer changes demonstrating our ability to maintain constant communications with the necessary personnel responsible for our program.
Situation 3: Major U.S. Manufactured Supplier
Client is a major U.S. manufactured supplier, under different brand names, to select mass merchandisers, electronic and hardware retailers as well as electronic distributors. This is a highly competitive category with constant innovation. While their products are positioned well for their major markets, they sought new management to direct their attention to both Wal-Mart and Sam's Club. Retail Works led the way.
RetailingWorks' Approach
We worked with our client to position the brand, and add features to the products that would make the products more value-oriented for both Wal-Mart and Sam's Club. Pricing was a key factor. Forecasting for additional volume was necessary to understand how the savings on this increased volume would impact the offered pricing. Product positioning included a group of products specifically targeted to the residential market for Wal-Mart and targeted to the key business and professional markets for Sam's Club. Packaging played a large part with PDQ case packs with high impact graphics for Wal-Mart and a more commercial and professional packaging approach for Sam's Club. A key component in the Sam's Club approach was a high impact display highlighting the assembled product and the major features and benefits.
Result
Success with both Wal-Mart and Sam's Club with basic items listed in record time. Initially, both chains started with limited store testing, but we worked with management to expand our tests. Within a year of being tested, we are currently in 80% of the Wal-Mart stores and 100% of the Sam's Clubs… and are positioned for additional growth.
Situation 4: Start-up Company with Aggressive Plan for Growth
Client is a developing a start-up company enjoying business with a select group of targeted retailers. All products are manufactured in China. They have an innovative line of products and an aggressive plan for additional products. They hired us to prepare their product(s) for Wal-Mart and Sam's Club.
RetailingWorks' Approach
We helped shape the packaging and pricing for presentation to Wal-Mart and Sam's Club. This required a complete orientation of the Wal-Mart systems and requirements to better prepare for these very unique retailers. The major challenge here was showing how these innovative products would offer the Wal-Mart customer more value and convenience.
Result
Wal-Mart immediately accepted the products for placement in its larger store modules. After a partial season, the mix was modified and the store selection was expanded. Currently, we are under consideration for expansion into other departments. Selected products are also being re-styled for the business and professional markets and preparations are being made for presentation to Sam's Club.
Situation 5: Mail Order Sells to Sam's Club
Client is a large supplier of multiple SKU's to the mail order industry. All products are manufactured in China. They selected us to help them market their products to Sam's Club. Because of the large markups in the mail order industry, this had to be handled very carefully so that they would not embarrass their major business segment.
RetailingWorks' Approach
We suggested focusing on a select group of products targeted to a very specific category. This allowed us to shift our offerings away from the most competitive of categories and concentrate on a category where we were virtually alone in our offerings. Rather than utilize existing products, we suggested adapting current products and present several different designs to the buyers for their input in developing the products. This would encourage the buyers to help with the design and allow them to consult with their management for the most current trends to present. This would distinguish and protect the products from the main revenue source of the company.
Result
The strategy was an immediate hit and began a continuous stream of original, volume promotional products. Some of these products were advertised in Sam's catalogs. This also created an "incremental" high profit item for Sam's Club in a very high volume, low margin category and it was an immediate boost for the buyers. All products were manufactured in China and we worked closely with their global procurement office. This also required us to travel to China frequently and work directly with the factories. |