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TOM INGRAM AND ASSOCIATES, INC.

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Merchandising Services Companies: 

How to Increase Sales and Reduce Costs

(300)  Cosmetics Success Stories Summary

(302) Outsourcing of In-House Merchandising Summary of Success Stories

(303)  Data Driven Success Stories

(304)  HBC Merchandising Success Stories Summary

Merchandising Success Stories* by Our Associates

(1)  Distribution Increased by an Average of 7%, Some Products Improved by 16.5% for Same Cost as Previous Year by Outsourcing Oversight of Merchandising. Freed Up 1800+ Hours of Manufacturer’s Time Per Year (approx.).  Allowed Manufacturer to Focus on Growth, Instead of Managing Merchandising*.  Associate firm saved manufacturer $150,000 on previous year’s budget of $1,000,000 (approximately).  Reinvested savings in better merchandising to achieve improvements in distribution, void reductions and out of stock reductions.  Other results included:

  • Coordinated merchandising effectively with major TV ad campaign
  • Used store volume and market data to create a store grading system to help spend merchandising dollars only in stores with the best payback
  • Renegotiated merchandising service contracts for immediate cost savings and conducted RFP process to select new service providers
  • Produced monthly stock level scorecard and list of worst stores to help manufacturer deal with problems and opportunities at retailers
  • Created audit / mystery shopper program to confirm conditions in stores
  • Helped manufacturer develop overall processes and disciplines for effectively managing merchandising

Click here for success story details (MD CB)  Category:  Diabetic, Diagnostic, Medical

(2)  $272,000 Savings on Merchandising Budget of $1,000,000 through Outsourcing Oversight of Merchandising Services.  Savings Reinvested. Out of Stocks Reduced from a High of 23.7% to as Low As 3.7% (Across Multiple Chains).  Discovered Product Was “On Shelf for Customer” in Only 2000 Stores, Not 3,500 Stores*.  Freed Up 1800+ Hours of Manufacturer’s Time Per Year (approx.). Discovered that facings, new items and promotions had only 60% compliance.  Associate firm made significant improvement in all identified problems, produced savings and freed up significant manufacturer time.  Provided consistent reports on store conditions and what merchandising services the manufacturer was receiving for money spent.  (MD CB)  Category:  Film, Camera

(3)  CASE STUDY: Freed Up 63,000 Sales and Support Hours Per Year, Cost Reduction, Solid Processes and Execution*:  Associate led effort for one of the three largest merchandising organizations in the U.S.  Resulted in $2.5 million per year in labor savings, a nation-wide set of standard processes and removal of 250,000 potential errors per year.  Click link for details. No31cSalesProcessImprovementSuccessStoryShortV2.pdf  Category:  Headquarter Call, Merchandising Process Improvement

(4)  Manufacturer Outsources Merchandising Work, Improves Execution from 90% to 98%, Saves $750,000 to $1,250,000 (estimated*):  Associate led team that took over $25 million in merchandising work for the manufacturer.   Associate conducted analysis that showed that manufacturer was overlooking significant costs.  Salary and benefits for 1,200 reps were reduced by 20%+ (estimated.)  Entire program was deployed in 90 days.  Manufacturer was confident enough in the Associate's team that it provided up-front cash to fund the initiative.  Goal was to provide the same or greater levels of service at a reduced cost.  Program continued successfully for many years.    Success Story Details                                                              Short Video on Success Story (CS)  Category:  Pharmaceutical, Drug, OTC, Convenience

(5)  Streamlined, Consistent Communication, Created Separate Dedicated Team Support where possible, Execution Improved as Merchandising Organization Grows from $8 Million to $70 Million*:  Associate led the effort that created numerous improvements for manufacturers:

  • "One Stop Shop" for all national service

  • One national service manager responsible for all communication to the manufacturer

  • One standard agreement, one legal review process

  • Consistent communication with all:

    • Work schedule

    • Change orders, schedule changes

    • Instructions, training and supporting materials to reps

    • Completion reporting

    • Work Load Over / Under Forecast  (CS)  Category:  Merchandising Leadership

(6)  Execution Improved from 87% to 98%, Operating Profit Increased from 10.5% to 15%, Converted 300 Reps from Full Time to Part Time.*  Associate provided a 90 day assessment of an existing $50 million retail service company that led to significant improvements in execution and profits.    This occurred as one of the Big Three Service Agencies was going through a national consolidation.  Keys included experience necessary to evaluate all operational areas, specific position assessments and mentoring to assist management through the transition.  (CS)  Category:  Merchandising Leadership

(7)  Consistent Planogram Compliance, New Item Speed to Shelf, during High SKU Count, Complex Reset Work (Cosmetics).  Results Were So Strong, Program Was Repeated 8 Times.  Key Was Getting It Right With Minimum of Manufacturer's Time*Associate led programs for Planogram compliance for entire new marketing efforts for the manufacturer.  Work involved extremely high sku count, complex racking, heavy resets, 20-24 hours per section.   Included videos to train reps, practice sets, 5-6 month planning and coordination cycle and working side by side with manufacturer. 

·         Chosen by Wal*Mart to coordinate all manufacturers for the changeover of an entire cosmetics department

·         Chosen by L'Oreal and Procter as exclusive merchandising company for 4 years running.

·         Consistently met seasonal deadlines.  (LC)  Category:  Cosmetics

(8)  New Item Speed to Shelf:  New Item on Shelves in 20,000 Stores in Two Weeks!  Effort was So Successful, it was Repeated 5 More Times.*  As president, associate led multiple new item launches where a prescription drug was being converted to "over the counter."  These launches required 20,000+ stores to be merchandised in two weeks, a 5-6 month planning and coordination cycle and working side by side with manufacturer.  Associate's firm did several additional launches for the same manufacturer and others, totaling 6 major launches.  Extremely difficult work to execute in so short a time frame.  (LC)  Success Story Details  Category:  Pharmaceutical, Drug, OTC,

(9)  Bundling Multiple Store Calls Together To Make Merchandising Affordable for Smaller ManufacturersConsumer Electronics / Office Superstore, High SKU Count, High Complexity, Required In-store Sales Training, Manufacturers Were So Pleased With the Work that They Sponsored Entry Into New Retail Chains*.    Associate led effort to build this niche from scratch over three years.  In year 3, Associate's team was invited to submit RFP's for Microsoft and HP.   Keys were being ready when the work came, starting with a small win and building from there (instead of trying to service the entire universe from day one).  Note that it is important to use the right service company for the work to be done.  Not all can do this work.  (LC)     Category:  Consumer Electronics   

(10)  Bundling Multiple Store Calls Together To Make Merchandising Affordable for Smaller Manufacturers*:  Associate bundled together merchandising calls from several  manufacturers to make effort affordable for all.   Resulted in e.g. a blitz effort for a major personal hygiene manufacturer.    (TE)  Category:  HBC, Drug

(11)  New Item Speed to Shelf, Taking Over Where Other Merchandising Organization Failed, Warehouse Sold Out in One Week!*:  Associate led effort for a major pharmaceutical manufacturer to complete a new item introduction after failure by  previous merchandising organization.  After one week of execution on the launch, manufacturer called to say that inventories were depleted in their warehouses due to the surge in sales.  Manufacturer credited the sales surge solely to the speed to shelf execution.  (TE) Category:  Drug

(12)  Generated Approximately $21 Million in Additional Sales for Manufacturer, Best out of 36 Teams at New Item Speed to Shelf, Three Years in A Row*:  For three years in a row, Associate's team conducted a total of 12 new item launches and finished first among 36 teams all three years.  Approximately $21 million in additional sales were attributable to Associate's team.  Sales increase was due to effectiveness of Associate's team at getting new items on shelves, highlighted by 100% attendance of Associate's people at every launch for three years in a row.  (DK) Success Story Details   Category:  Dairy, Yogurt                                                           

(13)  22% Annual Increase In Diaper Sales For 56 Store Chain, Completely Displaced a Competitor in 3 Weeks! Associate’s team discovered extreme dissatisfaction with a diaper manufacturer.  Associate went to a competitive diaper manufacturer, jointly developed a new planogram, closed retailer and completed resets in three weeks, completely displacing the original diaper manufacturer.  (DK) "Success Story 16 Details" PowerPoint and Interview with DK - see page 14  Categories:  HBC

(14)  Bundling Multiple Store Calls Together To Make Merchandising Affordable for Smaller Manufacturers,  Health and Beauty Category*:   Associate was able to negotiate an agreement with three manufacturers to make merchandising calls affordable for all.  Through careful scheduling and knowledge of local conditions, reps with right skills and field management structure that was able to execute, Associate’s team was able to  consolidate the work so that field rep got all the work done for three manufacturers in a single one hour call.  (DK)                            "Success Story 17 Details" PowerPoint and Interview with DK - see page 15   Category:  HBC

(15)  Gained Approximately $11.1 Million in Incremental Cosmetics Sales for Manufacturers in One Year, Took 30% of Shelf Space Away From “No-Show” Competitors.  Bundling Multiple Store Calls* Associate discovered that a competitor’s merchandising team did not show up for a 210 store cosmetics reset.  Associate’s team was able to convert 30% of competitor’s shelf space to their manufacturer.  See discussion of clustering in health and beauty success story.  (DK)               "Success Story 18 Details" PowerPoint and Interview with DK - see page 16  Categories:  HBC, Cosmetics

(16)  Displaced a Major Competitor of Associate's Manufacturer by Servicing Rural Stores*.  By effectively servicing 140 rural stores, Associate was able to aid his manufacturer in significantly displacing a major competitor.  (DK)                  "Success Story 21 Details" PowerPoint and Interview with DK - see page 19   Category:  Rural Stores, Grocery

(17)  Bundling Multiple Merchandising Calls, Coordinated 13 Manufacturers for Mass Merchandiser Cosmetics Resets*  42 feet of shelf space was reset at all stores.  Associate led team.  (JV)   Category:  Cosmetics

(18)  Increased Sales by 5.1% for 1,400 Participating SKU’s in a 3 Month Test.  Program was for for Prevention of Out of Stocks at Midwest Chain*.  160 test stores, 10 stores kept as control.  Sold program to 9 manufacturers in multiple grocery categories.  Participating sku’s realized a 5.1% increase in sales vs. control group (verified by ACNielsen data.)  (JV)   Category:  Grocery, ???

(19)  Proof That Effective Project Work Produces Better ROI for Manufacturers Than Generic Continuity Work.  Project work was often 20% to 25% more cost-efficient than continuity work because of significantly less drive time.*  Grew merchandising hours from 72,340 to 425,531 hours per year over five years by transitioning continuity work to project work.  Included Hair Care Resets for 6 years running, cosmetics resets at one mass merchandiser and becoming the preferred provider at another mass merchandiser.    Had to become good at dealing with a fluctuating work load.  Transitioned to a part time work force.  (JV)  Category:  HBC

(20)  Top 5% On All Speed-To-Shelf New Item Introductions Among 36 Teams.*  Success came from building a process where manufacturer, retailer and merchandiser all coordinated on new item introductions.  (Planning – 90 days out, prep - 60 days out, ready for launch - 30 days out, measurement during launch, etc.)  (JV) Category:  Dairy, Yogurt

(21)  $125 Million in Additional Sales for Manufacturer by Reducing Out Of Stocks by 5% (estimated),  $1 Million Cost Savings through Outsourcing of In-House Merchandising Team.*  Associate managed the team and its P&L.  Achieved approximately 5% reduction in Out of Stocks (key goal of the effort) and saved manufacturer $1 million per year in merchandising costs at the same time.  (Manufacturer’s sales are about $4.5 Billion.  We are assuming that a 5% reduction in out of stocks will result in additional sales of approximately $125 million.)  (PL)  Categories:  HBC, Feminine Hygiene, Paper, Diapers, Variety

(22)  20% Improvement in New Item Speed to Shelf.  Shared Merchandising Teams (Broker Coverage) Not Getting Job Done.  Established Dedicated Team Program for Fortune 500 Health and Beauty Manufacturer in Mass Merchandising (Wal*Mart) and Drug Channels*.  Syndicated model being used was falling short in out of stocks, void fills and display compliance.  Also provided greater flexibility for manufacturer's seasonal needs.  New Item improvements were measured by ACV against non-covered stores.  (PL)  Categories:  HBC, Suncare, Footcare, Over The Counter Drugs

(23)  $4,307,000 Sales Increase Through Out of Stock Reductions. Established Dedicated Team Program for Fortune 500 Paper Goods Manufacturer.*  Specific Goal Was Out of Stock Reductions.  In-stock percentages grew from 99.23% to 99.67%.   Ultimately added promotion compliance and store level selling to the program.  (PL)  Categories:  HBC, Feminine Hygiene, Paper, Diapers, Variety HBC

(24)  Market Share in Category Increased from 6% to 22% in Five Years.*  Dedicated team program focused on heavy secondary displays, out of stocks, display compliance.   Category:  Consumer Electronics  (PL)

(25)  Helped Manufacturer Sell a Program to Major Mass Merchant Retailer for Product Knowledge Training for Electronics Products*.  Program also included out of stock reductions, POP placement, promotion compliance and direct to consumer selling.

  • Unit sales increased 300%

  • 47.2% mores sales than closest competitor

  • 70% increase in equipment efficiency

  • 16,000 associates trained

  • Provided Training / Support at 24 Spring Regional meetings (PL)   Category:  Consumer Electronics, Wal*Mart

(26)  Promotion Compliance:  Developed Program at Wal*Mart for  Auditing Stores for Compliance with Promotions*.  Marketing department had no history or baseline to judge promotions from.  Current effort is to establish the baseline.    (PL)   Category:  Wal*Mart

(27)  Manufacturer Saves $10 Million, Compliance Improves 135% by Outsourcing In-House Merchandising Team.  Immediate Savings Of 32% Per Visit. Employees Reduced from 400 to 40*.  Associate led effort to reduce internal merchandising staff of 400, which called on 8,000 locations servicing high sku count products.  The in-house team was not performing for a number of reasons, including the rep’s inability to be effective in two different chains at the same time.  (E.g. Wal*mart and Macy’s.)  (JF)  Categories:  HBC, Intimate Apparel

(28) Manufacturer Saves $2.5 Million over 5 Years, Improves Distribution 4%, Reduces  New Item Speed to Shelf by 30 Days, Increases Displays Sold by 17%, through Outsourcing of In-House Merchandising Team (estimated).*  Associate led effort that outsourced the work of 250 full-time people to a 3rd party.  65% of the manufacturer’s employees accepted positions at the 3rd party at a reduced salary.  Reporting capabilities for account management team also were improved.  (PL)   Category:  Cosmetics

(29) Manufacturer Saves $20 Million, Increased Sales $225 Million (30%) Over Five Years by Outsourcing In-House Merchandising Team*.  Associate led effort to outsource struggling in-house merchandising team, including disposing of fleet and using multiple external services.  In-house team was struggling due to rapid growth of brand and distribution.  (JF)  Categories:  HBC, Intimate Apparel

(30)  4% Increase in Dedicated Team Sales Test In Texas vs. Other Tests*.  Associate led team that sold, implemented and delivered the project.  (PL)  Categories:  HBC, Smoking Cessation, Over The Counter Drugs, Lip Care

(31)  $59 Million Incremental Sales for European Grocery Broker In One Year by  Reducing Out Of Stocks and Voids through Data-Driven Merchandising.  Should Increase for Next Several Years*.  Distributor had been using data to identify problems in retail stores for years (voids, out of stocks, new items, promotion compliance.)  Problem was that the distributor’s manufacturers, retailers, brokers and merchandising companies “owned” responsibility for resolving the problems (and the job was not getting done.)   Goal for first year of program was a 2% improvement ($80 million.)  Achieved $59 million improvement due to the data-driven merchandising solution (quote from distributor.)  Note that these are hard dollars of increased sales from products that are authorized to be on shelves, but are not there.  Associate sold project and designed approach that produced results.  (DK)   Category:  Merchandising Leadership, Grocery, International

(32)  Increased Sales by 5.1% for 1,400 Participating SKU’s in a 3 Month Test at No Incremental Cost to the Retailer.  Program was Data-Driven Prevention of Out of Stocks for  Midwest Chain.*  160 test stores, 10 stores kept as control.  Sold program to retailer, then sold program to 9 manufacturers in multiple grocery categories.  Participating sku’s realized a 5.1% increase in sales vs. control group (verified by ACNielsen data.)  (JV)   Category:  Grocery

(33)  $1.7 Million+ Savings On Merchandising Work.  425,000 Hours of Merchandising Services Provided at 20%+ Cost Savings Through Data-Driven Merchandising.   Demonstrated that targeted project work produced a better ROI for manufacturers and retailers than generic continuity work.  Had to become good at dealing with a fluctuating work load, using part time work force.*  Grew base of business from 72,340 hours per year to 425,531 hours per year over five years.  Growth came by transitioning from continuity work to project work.  Included Hair Care Resets for 6 years running, cosmetics resets at one mass merchandiser and becoming the preferred provider at another mass merchandiser.  Discovered that Project work was often 20% to 25% more cost-efficient than continuity work because of significantly less drive time.  Had to become good at dealing with a fluctuating work load.  Transitioned to part time work force.  (JV)  Categories:  HBC, Cosmetics

(34)  Data-Driven Out of Stock Reduction Program Results in Merchandising Company Becoming Preferred Provider at Top 10 Grocery Chain*.  Accomplished by selling the automated “out of stock prevention” program.  Performed well on  initial work and earned preferred provider status. (JV) Category:  Grocery

(35)  Distribution Increased From 80% to 96% In Five Months Through Data-Driven Merchandising Program*.  Confidential program, call for details.  (JS)   Category:  HBC, Medical, Small Appliance

(36)  Distribution Increased From 94% to 99% In Five Months Through Data-Driven Merchandising Program*.  Confidential program, call for details.  (JS) Category:  HBC, Personal Care

(37)  Distribution Increased From 72% to 98% In Five Months Through Data-Driven Merchandising Program*.  Confidential program, call for details.  (JS) Category:  Grocery, Spice

(38)  Results: $80 Million Increase in Sales in One Year.  (From 2% annual Sales Gain over Comparable Stores on $3 Billion in Sales)  Received multiple comments / emails from customer crediting this program for most of the sales gain.

Retailer:  Large Retail Technology Firm

Problem: Sarbanes-Oxley compliance, loss prevention, sales, operations, sales training all needed improvement after stores had been up and running for many years

Sales Cycle Notes:  Told “no” repeatedly by senior management.  Persevered and got program sold.

Solutions Notes: Designed program for a 3 hour audit every month in 5000 corporate stores, plus 1 hour per week in 1800 franchise stores.  Auditing store for customer experience, store clean, presentable, product knowledge, internal paperwork, returns, transfers, etc.

Category:  Electronics  (PG)

(39)  $3.2 million Sale of Specialized Merchandising Services to Assist New Chain Owner in:

1.    Identifying Inventories, Fixtures, Square Footage, Layouts Of Newly Acquired Stores

2.    Designing Marketing and Merchandising Programs to Best Use New Stores

Retailer:  Large Drug Store Chain

Problem: The Drug Store Chain had acquired a number of other Chain Stores.  The new owners did not know inventories, fixtures, square footage, layouts, aisle widths, etc.

Sales Cycle Notes:  Associate was introduced to prospect by his service company, led the proposal and presentation efforts, multiple meetings, instrumental in closing the sale due to his experience and specialty skills

Solutions Notes: Solution was a systematic store by store program to survey all stores and collect and organize the needed information.  The solution included training and a software system.  Project was approved and started in August 2007. 

Category:  Drug  (PG)

(40)  Results:  Closed $200,000 Sale for Specialty Merchandising Services as Test for $36 Million Global Project

Retailer:  Major Mass Merchant

Problem: Retailer needed to identify store layouts, merchandising footages and fixture types in all global stores.   In addition, retailer purchased significant number of international stores and needed to create up to date store layout, merchandising and fixture files.

Sales Cycle Notes:  Second Sale After Success in Large Drug Store Chain  

Solutions Notes: Solution was a systematic store by store program to survey all stores and collect and organize the needed information.  The solution included training and a software system. 

Category:  Mass Merchandising  (PG)

(41)  Results: Distribution Increased by 5% in Manhattan Alone! – Estimated $2.5 Million Sales Increase

Manufacturer:  National Soft Drink Manufacturer

Problem: Manufacturer needed to know Distribution, Where their products were, Who their competitors were, How much Shelf Space they had and What the pricing was. [This was focused in Downtown Manhattan only.]

Sales Cycle Notes:  Associate got lead through networking, followed up, closed the work, $100,000 worth of Merchandising Work. 

Solutions Notes: Audit / survey program similar to Associate’s other successes

Category:  Beverage  (PG)

(42)  Results: Penetrated New Strategic Manufacturer and Became Preferred Provider After Losing Initial Bid

Manufacturer:  National Candy Manufacturer

Problem: Manufacturer could not get effective service from a National Merchandising Company in Montana and Wyoming.

Sales Cycle Notes:  Three months after losing initial bid on national program, went back to buyer and sold them on chance to solve regional  problem.  Earned Preferred Provider Status and Endorsement on Website.  Initial Sale was very small dollars. 

Solutions Notes: Solution was effective coverage in rural areas, of such high quality that it earned preferred provider status

Category:  Food  (PG)

(43)  Results:  $100,000 in Merchandising Services Sold to Support Stores in Puerto Rico

Retailer:  DVD Distributor

Problem: Could not get service in Puerto Rico.

Sales Cycle Notes:   Former customer called and asked for help implementing program in Puerto Rico.  Not only was solution provided, but client awarded a profitable program to company.

Solutions Notes: Created program for effective service in 50 Large Discount Retailer stores in Puerto Rico

Category:  Video  (PG)

(44)  Results:  (A)  $125,000 In Merchandising Services Sold, Resulting In 95% Service Level and Approved Service Provider Status At Difficult Grocery Chain. 

(B)  Sold And Created A Replenishment Service For High End Sunglasses At A Second Grocery Chain.

Manufacturer:  Sunglasses Manufacturer

Problem: Needed good Merchandising in two different Grocery Store Chains.  Previous Merchandising company was having problems delivering.

Sales Cycle Notes:   Former customer called and asked for assistance in developing Electronic Data Interchange (EDI) system to service stores.

Solutions Notes:  Provided an EDI solution and process to accommodate client needs.  Process ensured 95% service level.

Category:  Sunglasses, Accessories  (PG)

(45)  Results:  Closed initial sale of $25,000, Penetrated New Strategic Account, Earned Preferred Provider Status

Manufacturer:  National Brewing Company

Problem: Needed in-store customer surveys and research on new segment of beer for three major markets.

Sales Cycle Notes:  Lead from former associate.  Provided process and  assistance to client.

Solutions Notes: Went to stores, gathered information.  In-store customer interviews and reporting results.  Associate did the work in one of the stores himself!  Merchandising company earned prefeered provider status after completion of program in assigned geographic areas.

Category:  Beverage  (PG)

(46)  Results:  $200,000 in Merchandising Services Sold (at $57 per Hour) To Solve Problem of Inconsistent Cell Phone and Service Plan Pricing and Terms

Manufacturer:  Wireless Telephone Service Provider

Problem: Could not accurately collect Cell Phone and Plan Sales Information (because plans change monthly.)  Needed Industry-Wide Monthly Reporting

Sales Cycle Notes: Lead came to Associate after Senior Management rejected the client.  Associate created program and sold it at $57/hour. 

Solutions Notes: Complex Data Gathering at Consumer, Electronic, Cell phone stores and Mass Merchants – approximately 125 stores.

Category:  Electronics  (PG)

(47)  Results:  Helped Create “In Store Demo” Program for International Home Improvement Retailer.  Named One of Only Five Providers For the Program. Continues to be an account for the Merchandising Company. 

Retailer:  International Home Improvement Chain

Problem: Needed to set up ““In Store Demo” program to refer manufacturers to Services Companies and pay a percent of service fees to Retailer.  .  Retailer was new to the “Store Demo” service and needed national experienced provider to assist in development and execution of program.

Sales Cycle Notes: After retailer senior executive told Associate that it was not possible for Associate’s  company to be on the preferred provider list, Associate chased the senior executive for six months and met with him three times.  Associate persuaded the senior executive to visit the merchandising company headquarters, presented to the senior executive and closed the deal

Category:  Home Improvement  (PG)

(48)  Results:  Big Results On Small Budget.  Earned $800,000 in 17 weeks in First to Market Launch of Fat Free Pringles.  Gained a 32% market share with a company that typically earned 9%.

Retailer:  National Drug Company

Problem: Proctor and Gamble was launching a new Elestra product with Pringles and needed retail merchandising. 

Solution Notes: Provided a complete new launch program for logistics, marketing, in-store programs, advertising and merchandising with a limited budget,  Worked with all aspects of the company to ensure product was in-stock and displayed for success. Developed a competitive program in-store, at distribution center and by operations to incent for high sales and margins.

Category: Drug   (PG)

 

(49) Results: $0 to $70 Million Year Sales in One Year – Just In Wal*Mart!  Got to 90% ACV Distribution in 3 days in Wal*Mart and in 5 days nationwide!

Manufacturer:  Fortune 25 HBC Firm

Problem: Normal product launches were taking 8-10 weeks to get 90% ACV distribution.  In addition to delayed sales, slow launches waste TV ad dollars and waste inventory dollars because product is just sitting.  This was launch of new men’s body spray / cleansing gel line.  New product line had “no functional value – all about belief in self.” 

Solutions Notes:   Used little advertising – went to viral marketing instead.  Launched in Men’s Clothing department, near Skateboards, and near Computer Games.  Went to entirely new launch program based on quality improvement and other cycle time reduction techniques 

Category:  HBC  (PP)

 

(50)  Results: Consolidating 45 SKUs to 12 and Regional / Seasonal Focus Results in Significant Sales Lift – 3 Times per Year!

Manufacturer:  Fortune 25 HBC Firm

Problem: Lagging sales in Skin Care product line

Solutions Notes: Went from 45 SKUs down to 12.  Reduced to just the fundamentals of what the end customers wanted.  Went to a very strong balance between Headquarter Sales side and Retail Execution / Merchandising.  Regional focus during the Sun Care Season

Category:  Skin Care  (PP)

 

(51)  Results: Combined Three Sales Organizations, 1,000+ People, Reduced Headcount to 400, Brought Cost of Sales Down From 5% to 2.2%, Reduced Trade Funds (Promotion Expense) From 18% of Sales (Some Categories at 24%+) Down to 12% of Sales While Simultaneously Growing the Business 4.5% in Year One and 3% in Year Two.  (Market was growing at only 2%).

Manufacturer:  Fortune 25 HBC Firm

Problem: Merger of three organizations created redundancies, waste.  Promotions were consuming 80%+ of time and money, only producing 25% of the sales.

Solutions Notes: "Stopped the Promotion Madness".

Category:  HBC  (PP)

 

(52)  Results: New Major Product Launches Achieving 85% ACV Distribution In Two Weeks Instead Of The Normal  8-10 Weeks

1.    Toothpaste launch - $0 to over $100 million in one year

2.    Shampoo launch - $0 to over $100 million in one year

3.    4+ other product launches - $0 to over $100 million in one year

4.    8+ product launches from $0 to between $20 million and $100 million in one year

5.    A Key Additional Benefit:  Success or failure information is available in 2 Weeks – instead of 2 Months!  Allows manufacturer to pull the plug, invest more or redirect immediately – rather than after million have been wasted

Manufacturer:  Fortune 25 HBC Firm  (PP)

Problem: Normal product launches were taking 8-10 weeks to get 85% ACV distribution.  In addition to delayed sales, slow launches waste TV ad dollars and waste inventory dollars because product is just sitting. 

Additional Results Notes:  Benefits:  Product selling immediately instead of sitting in the warehouse, Forecasting improves, Inventory and Return is substantially better.  You know your product’s success or failure in 2 weeks.  Two examples of success:  Both a Specialty Toothpaste and a new Shampoo reached $100 Million plus in Year 1.

Solutions Notes: Since 2000, Associate has led approximately two dozen Major Product Launches which have reached 85% ACV distribution in two weeks (some in one week) versus the previous 8-10 weeks to get to 85% ACV distribution. 

Category:  HBC  (PP)

 

(53) Sold $2 Million in Incremental Project Work Beyond Existing Continuity  Work to Baby Food Manufacturer  Work Was Extremely Profitable Because Fixed Costs Had Been Covered*.  Associate led effort based on “fact based selling”, using analysis to show manufacturer best place to put their money.    (ML)  Category:  Baby Food

(54) Renegotiated National Contract for Merchandising Services with Fortune 500 Manufacturer.  Persuaded Manufacturer That Their Payment Structure and It Was in Their Interest to Pay a Rate at Which Merchandiser Could Make a Profit*.  Associate led effort based on “fact based selling”.    (ML)    Category:  Merchandising Leadership

(55) Helped Fortune 500 Manufacturer Penetrate Drug Channel and Mass Merchandising / Wal*Mart Channel.  Manufacturer Had Been Unable to Penetrate On Their Own*.  Associate led effort based on existing relationships,  “fact based selling” and showing retailer how shelf space could be better used.    (ML)    Category:  Drug, Wal*Mart

(56) Helped Fortune 500 Manufacturer Penetrate Convenience Store Channel and Military Channel.  Helped Manufacturer Improve Their Relationship and Penetrate the Channels *.  Associate led effort based on existing relationships,  “fact based selling” and increasing category depth for manufacturer.    (ML)    Category:  Military, Convenience

(57) Persuaded Fortune 500 Manufacturer to Outsource Merchandising Work to the Merchandising Organization (Rather Than Use In-House Personnel).* (ML)    Category:  Outsource Merchandising

(58) Increased Purchase of Servicing Secondary Displays By 300% in One Year for Fortune 500 Manufacturer.  Example:  One 50 Store Chain Bought 5,000 Displays!*.  (ML)    Category:  Secondary Displays

(59) Outsourcing In-house Merchandising Team

  • Phase 1 Cost Savings of $1,700,000 Savings Per Year (Approx.)
  • Reduced Average Hourly Cost (including overhead) from $38 per hour to $26 per hour for 76 people.
  • RIGHT FIELD MERCHANDISER IN RIGHT PLACE, WHEN NEEDED:  Increased Store Visits by 25% for Same Budget Dollars (Approx.)
  • BIG BENEFITS FROM LONG TERM PROGRAM:  Manufacturer Was Acquired, but Director of Retail Merchandising Continued Running Program for Acquirer, Continuously Improving Results Over the Years.  See additional success stories for same program:
  • Comprehensive Training Makes The Difference.
  • Ultimately Reduced Full Time Staff by 50%. (DY MH)

Details http://www.tomingraminc.com/OutsourcingInHouseMerchTeam1.pdf

 

(60) Outsourcing In-house Merchandising Team

  • Cost Savings of $7,000,000+ Per Year (Approx.)**
  • $38.5 Million Sales Increase Per Year from 5.5% Market Share Gain (Taken from #1 Competitor! – Approx.**)
  • New Product Cut-In Rate Raised from 70% to 99%+
  • Fixed Costs Moved to Variable Costs, Shared With Other Manufacturers
  • 65% Full Time / 35% Part Time Work Force Changed to 30% Full Time / 70% Part Time  (DY MH)

Details http://www.tomingraminc.com/OutsourcingInHouseMerchTeam2.pdf

 

(61) Results: Sales up 30%, Returns down by 26%, Out Of Stocks down from 35% to 10% in 8 months.

Retailer:  Llewellyn Publications – Books-A-Million

Problem: Returns – 35-40%.  Out of Stocks – 30-40%.  Sales down 26-30%.

Solutions Notes: Met with buyer, brought category expertise, reprioritized, advertising, merchandising mix, data-driven merchandising.  Became “Category Captain”.

Category:  Publications (SH)

 

(62) Results:  Increased product on shelf from 50% of stores to 100% of stores

Retailer:  Conagra, Target, Pemmican Beef Jerky

Problem: New product cut in to 1250 stores, big coop dollars, on 50% stores on shelf after 30 days.

Solutions Notes: Met with broker, buyer, manufacturer – created program, pricing, made managers aware. 

Category:   Snack (SH)

 

(63) Results:  26% Increase in Sales on Accessory Category

Retailer:  Family Dollar, Jewelry

Problem: Wanted Merchandising Program as effective as Target’s.

Sales Cycle Notes:  Required to do test head-to-head with competitor.  Test including set, training, merchandising.  Studied buyer’s data and surveys, reported on success.  

Solutions Notes: Designed schematic flow, merchandising program solution. 

Category:  Jewelry (SH)

 

(64) Results: Achieved 96% compliance in use of bumpers to protect fixtures during remodels.  Prevented millions of dollars of waste

Manufacturer:  McCue Corp (manufacturer of store asset protection devices, e.g. bumpers for appliance corners.)

Problem: Stores were not installing protective devices.  $1.6 billion being spent for store remodels, but non-compliance caused stores to look bad in 90 days.

Sales Cycle Notes:  Large effort with Safeway

Solutions Notes: Tracked store orders for compliance, found preventive solution, personally visited 300 stores. 

Category:   Remodels, Fixtures (SH)

 

(65)  Time Study Determined that 65% - 70% of Manufacturer’s Sales Time is Spent on Promotions – Which Only Account for a Small Percent of Sales and Profits.  Study covered 10 sales executives.  Note that much of the promotion activity has to be matched on the Retailer's side, creating significant duplication of effort.  (JM)

 

(66.1)  Outsourcing Cost Savings – Where to Look

Details  (DY MH) http://www.tomingraminc.com/OutsourcingCostSavingsWhereToLook.pdf

 

(67)  Major Program Success - Drive Sales - All Facets

  • Sales Increase of 14.6% vs. Previous Down Year

  • $426,816 in Incremental Sales from 544 Rolling Rack Displays at NO ADDITIONAL COST

  • 34,397 Out Of Stocks Corrected In Two Months

  • Placed 1,573 Additional Fixtures In Photo. 

  • Kept 800 Pinwheel Fixtures In Place For 6 Months Beyond Store Guaranteed Promotion Period Due to In-Store Relationships

  • Store Manager Ordered 1,000 Units On The Spot, When Field Personnel Illustrated Need, Despite Policy That Automatic Replenishment was Retailer’s Main Method of Ordering

  • 454 Displays Still In Place One Year After Retailer Discontinued Program

  • Weekend Sales Push Results In Share Increase Of Three Share Points

  • 208 Sidecaps Placed Incremental of Modular Locations in Category Where Manufacturer Was Authorized By Retailer at Store Level Through Relationships

  • Buyer Agreed To Place 1,751 Permanent Secondary Displays After REPS Showed That Manufacturer Did Not Have All Promised Display Space

Details http://www.tomingraminc.com/MajorProgramSuccessGeneric.pdf  (DY)

(68)  Major Program Success - Penetrate and Grow, Custom Inventory Replenishment

  • Sales increased from $0 to $27 million in less than a year

  • Helped client earn distribution in five more categories

  • Warehouse sold out within 30 days, accessories selling at a 50% increase over the previous year

  • Results and trust built with “challenging” retail environment

  • Merchandiser’s reps trusted to place orders in the stores, resulting in nearly 100% of stores placing a weekly order. 

  • Merchandising problems decreased at same time as sales expanded rapidly

  • Custom inventory replenishment system made all this possible

  • Distribution up from 240 to 290 stores due to expansion

Details http://www.tomingraminc.com/TravelConvenienceCenterSuccessv1.pdf  (DY)

 

(69)  17% increase in sales over the past 4 weeks...

  • “Compliance on Holiday displays has been outstanding. This is the best I have seen in my 5 years on the team.  Wave 2 is 18 percent ahead of last year at this time.” 

  • No doubt this compliance is responsible for the 17% increase in sales over the past 4 weeks.
    Congratulations to … and the REPS merchandising team!”

  • We really appreciate your support and partnership!”

  • … thanks to your team and the folks at REPS for another stellar year!”

  • …as I told you before,  REPS results in WM is best in class!”  

Details:  http://www.tomingraminc.com/HolidayCompliance17PerIncrSalesv2.pdf  (DY)

 

(70)  Number One Selling Product in Wal*Mart for Our Manufacturer in December, 2007

  • “…terrific job by the entire REPS organization … - your results were a critical enabler … and made a big difference in driving  our performance.”

  • “For the first time, we are actually growing sales faster than [our #1 Competitor] …  In the latest month, we have finally a higher share than [our #1 Competitor] in total [product]!!”

  • the six weeks ending in December [one major product] total unit sales +40.8% vs. same event 2006

  • 89% of all stores reported [New Product] on shelf. 19% improvement vs. October.

Details http://www.tomingraminc.com/NoOneSelleratWalMartv3.pdf  (DY)

 

(71)  Secondary Displays Drive Sales and Market Share

  • Displayer promotion during holiday season notorious for being difficult to maintain compliance and floor space
  • 98.75% compliance rate of displayer promotion within two days of arrival
  • Compliance rate remained above 80% for six weeks as sell-off increased
  • Promotional stores outperformed their share of the chain by 7% for Christmas music
  • Key selling locations and duration credited for success of promotion

Details http://www.tomingraminc.com/DisplayerCompliance.pdf  (DY)

 

(72)  Aggressive Selling, Increase Sales Through Store Relationships

  • Sales Increase by over $1 million dollars per year

  • Sales Increase averaging 100 pallets per month

  • Worked Around Low Inventory Buying Decisions

  • Made it Easy for Store Managers to Order Product

Details http://www.tomingraminc.com/AggressiveSellingPalletManualOrders.pdf  (DY)

 

(73)  Promotion Coordination, Secondary Displays Increase Market Share and Sales:

  • REPS conducted a temporary promotion blitz across an entire chain of stores

  • Nielsen share increased from 59.9% to 62.3% for the customer, the first share increase in three years

  • Sales increased by 3% as a result of the promotion

Details http://www.tomingraminc.com/PromotionCoordination2ndbatterydisplays.pdf (DY)

 

(74)  Secondary Displays Drive Sales and Market Share

  • 17,150 total displays were blitzed with temporary promotion
  • All 1,450 stores were serviced for the promotion
  • Market share increased from 59.9% to 62.3% for the customer, the first share increase in three years (2.4% increase)
  • Sales increased by 3% as a result of the promotion

Details http://www.tomingraminc.com/SecondaryDisplays.pdf  (DY)

 

(75)  New Item Speed to Shelf

  • Over 1,100 stores have “Super Tuesday” merchandising blitz
  • Compliance rate of almost 100% reached in last six months
  • Surveying and reporting done each week to explain any deviations in execution across the chain
  • Successful weekly new release execution due to diligence and superior merchandising skills

Details http://www.tomingraminc.com/NewProductLaunchesMusic.pdf  (DY)

 

(76)  How to Get 90%+ of Secondary Display Space...

  • Aggressive Selling – Tips from Merchandisers That Really Know What They Are Doing!

·         Notice That 90% of This 4-Way Christmas Display is Devoted to REPS' Manufacturer - Only 10% to The Next Largest Competitor

Details http://www.tomingraminc.com/AggressiveSellingTipsFromBest.pdf   (DY)

 

(77)  Waterheater Unit Sales At This Retailer Are 28% Greater Per Store Per Year than Its Larger Competitor.

  • Waterheater Manufacturer Sales Up More Than 300% Over Eight Years through a Single Retailer.

  • Manufacturer Survives Industry Consolidation,

  • Becomes the #1 Waterheater Manufacturer in U.S.

  • Returns Down From Near 10% To 5%

  • AMS Provides Better Merchandising Work Than The Manufacturer's In-House Staff, At A Substantial Cost Savings.  

  • Emergency Regulatory Recall Handled in 72 Hours While Some Competitor’s Waterheater Departments Were Shut Down for a Month.

  • Helped Manufacturer And Retailer Conduct First Effective Line Reviews, Resulting In Not Stocking Gas Water Heaters In Electric Water Heater Markets.

Details:  http://www.tomingraminc.com/AMSWaterheaterSuccessStoryv2.pdf  (AMS)

 

(78)  $1.2 Billion Increase in Retail Sales of Major Appliances (estimated: 2003 to 2006)

  • Retailer’s Market Share of