Retail Trade | The Barefoot Spirit

Positive Company Culture is critical to Growth and Survival – Part 2

Michael Houlihan & Bonnie Harvey — Fri, 23 Dec 2011 20:19:28 +0000

A company survives and grows due to sales and the loyalty of customers and staff. Sales are based on price, value, dependability, integrity, availability and perception. The basis of perception is image, networking, and more recently, the transparency of the producer.

Transparency is what the brand stands for, its authenticity, its identification with higher values, and the actions it takes to demonstrate those values.

When companies subscribe to a higher order of value, beyond the products they sell, they have an advantage in today’s marketplace. Employees excel, and tend to stay with these companies, providing long-term relationships with retail buyers, customers and complementary organizations.

The Culture of Customer Service

At the time Barefoot Wine was founded, the business model was considered radical. The founders viewed it as more of a “service” rather than merely a product. At Barefoot’s price point, which we termed the “velocity price point”, it was clear that it could not survive without becoming “America’s Personal House Wine”. From the beginning, it was understood that it had to sell massive quantities to stay in business.

“Personal House Wine” was defined as the wine one serves in one’s own house as a staple: “Tuesday night wine, picnic wine, beach wine”. It was the wine to always keep on hand. It was the brand you discovered that consistently delivered the quality and value you had come to expect from your own “personal house wine”.

The company knew that customers (“foot fans”) would be loyal to the brand as long as the price remained stable (at the velocity price point), the taste profile was consistent (delicious), and it was available and easy to buy (in stock).

The original Barefoot culture wa based on the most comprehensive definition of customer service. Imagine a company that, through worthy cause promotions, encouraged customers to go into specific retail establishments to buy their brand. Imagine a company that viewed its displays as retail entertainment, adding color, fun, and theme sets for the enjoyment of its customers! This is the ultimate in customer service to your retailer, your end-user, and to your community.

The Culture of Acknowledgement

People are motivated by goal achievement, but also by public recognition. It not only validates their creativity, but it send a message to the rest of the troops that this type of behavior is not only appreciated, but also identified and exemplified.

Appreciation goes a long way toward building team spirit and encouraging everyone on the team to be creative in a productive and fun way. They know that top management and their teammates will recognize their achievement and are not afraid to speak up about it. They are encouraged to create imaginative promotions and fun events.

Public acknowledgement, especially in written form, circulated to all staff, is validation. Employees want to know that they are contributing, and that their efforts are being appreciated. Third party validation from managers, peers, customers, associates and non-profits builds confidence to go out and do more of the same, or better! It also give your people an appreciation of what their team mates are doing to improve everybody’s circumstances.

Positive company culture is the foundation of company success. It reduces turnover, improves morale, cooperation and overall team spirit, all of which result in increased imagination and productivity. Next time we will examine the culture of Common Causes.

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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Distribution: The Distance between a Great Product and a Sale – Part 4

Michael Houlihan & Bonnie Harvey — Tue, 15 Nov 2011 19:11:12 +0000

In the previous three posts we have given just a few examples of the importance of Channel Distribution Management in product design. Here we will examine two of the most important factors in product distribution through conventional channels:

14. Stack it! It is great to get your product on the retail shelf, but getting it stacked on the floor is infinitely more valuable. When your product or brand is new, there is no better way to announce its arrival than a colorful floor display. Floor displays are at the option of the retailer, but retailers are more likely to grant you the coveted floor space if they believe they can move your product quickly. This may require special pricing, local promotion, merchandising assistance, special signage, and months of preparation and scheduling. Retailers want to floor display products that have a demonstrated record of brisk sales, a real Catch 22 for new producers with no track record. However, a strategic plan that starts small and demonstrates brisk sales with adjacent retailers will give you and your product credibility.

15. Reorders are more important than orders! Without the reorder, all your work to get your product to the retailer is lost. This is why eternal vigilance at the retail level is essential. There are many reasons why retailers don’t reorder besides the obvious, “The price was too high,” or “The quality was too low.” Here are some examples:

Your product sold out and the retailer forgot to reorder because he was not used to reordering it.
The retailer’s distributer that supplies your product did not deliver.
The distributer delivered the wrong product.
The distributer’s sales person loaded the retailer up last month with products that have yet to sell and now the retailer doesn’t want to order anything from that sales person, including your product.
Your product is still in the back room and never made it to the shelf.
The invoice was wrong and the price was wrong.
Your distributer’s sales person simply did not ask for a reorder.
Your products UPC number was incorrectly entered at the back door and was refused.
Your product UPC number was incorrectly entered on the scanner at the check out.
Your product’s shelf reorder ticket was lost or removed.
None of your Point of Sale signage was up.

If you don’t have your own representative in that city, visiting that store on a regular basis, your product could be easily discontinued for any of the reasons above, and more. And everyone will tell you, “It just didn’t sell”.

There are many more distribution factors to consider before launching any product. The most successful products treat distribution as more important than the product itself.

In most chain stores, you get only one chance…forever! The good news is that your product can’t be discontinued if it isn’t there yet. Do your research. Start small and slow.

There are warehouses full of great products that never made it to the shelf. There are shelves full of many products that are less than great … but they have great distribution. Customers buy what’s there, and they can’t buy what isn’t.

Your product is only new once. So take the time to build the distribution requirements into your product and your budget. Hit a home run at your first and only time at bat!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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How To Get Your Product To The Market

Michael Houlihan & Bonnie Harvey — Mon, 09 May 2011 08:59:33 +0000

You may have a great product at a great price, and people may really want it, but that doesn’t mean you can get it to them. If your product is sold in retail stores, like most consumer goods, it probably has to go through conventional distribution channels. In order to get to the end-user, you must customize your pitch to everyone along the way. You must make all of the seven sales. They are:

Your Own Staff. Both your sales and office staff have to be proud to represent your product. They also need to know what it takes to keep the quality up, the cost down, and the pipeline filled. Help them understand how their compensation ties directly to customer service and profitability, and show them how they fit in and how their skills contribute to the company’s success. We communicated this effectively using a detailed money flow chart that started with the end-user and ended with their paycheck.
Your Distributor or Jobber’s Ownership. Make sure they realize there are a variety of reasons they want to carry your product, and that they may differ from market to market. Remind them that beyond profitability, your product may fill a void in their book of product offerings, or that it may be something they want to keep away from their competition. Let them know that buying your product could increase their business with an important retailer in their territory.
Your Distributors’ Sales Managers. Help them understand they may want it because it’s easy to sell, or because you will support it with program dollars. If you have a representative in their territory, remind them it will help their sales staff meet their numbers.
Your Distributors’ Sales Persons. Make sure they know you will help sell it for them into new accounts in their territory, and remind them when there is a bonus in it for them. If your product moves quickly, let them know their retailers will appreciate them for introducing it and keeping it in stock. Sales people are motivated by anything that makes their jobs easier and puts more money in their pockets.
Your Distributors’ Retail Buyers. They will be more eager to buy your product when you tell them you will support it with effective point-of-sale marketing signs. If it got a great write-up or review somewhere, make sure to get it to them. Your product may be attractive because it’s value-priced in a smaller category. Let them know your company rep may come to their store, do demonstrations, and help sell it for them. Make sure they know you will refer customers to them.
The Retail Buyers’ Managers or Clerks. This is where the rubber meets the road. They talk directly to the end-users daily. They can recommend your product. They will “buy” it if you give them personal attention and recognize their value to your success. Your appreciation may be why they keep it in stock and on the shelf on a regular basis.
And finally, if you’re diligent enough to get this far, the General Public. They will buy your product first because it’s in stock and on the shelf. Value, price, packaging, and dependability are the qualities they look for. Good shelf position will catch their eye, as well as informative and compelling third-party endorsements. They will buy your product if they like what your brand stands for. This is how you build brand loyalty.

Everyone in the channel buys for a different reason. Understand and address each reason. Your success depends on mastering all of the seven sales.

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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