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Consumer Product Retailing & Category Management. Presented by: Dan Jones. JOHN FRIEDA. Consumer Product Sales Career. Career Experience. McNeil Consumer Products Division of Johnson & Johnson Inc. Territory Manager Sales Trainer District Manager. Career Experience. - PowerPoint PPT Presentation
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Consumer Product Retailing& Category Management
Presented by:
Dan Jones
Career Experience
McNeil Consumer ProductsDivision of Johnson & Johnson Inc.
• Territory Manager
• Sales Trainer
• District Manager
Career Experience
Helene Curtis Industries Inc.Division of Unilever Corp.
• National Account Manager
• Regional Retail Sales Manager
• West Coast Director of Customer Business
Career Experience
Marketing Specialists Inc..
Specialty Food
Regional Business Manager
Career Experience
John Frieda Hair Care Inc.
Western Regional Sales Manager
JOHN FRIEDAJOHN FRIEDA
Retail Sales & Marketing Strategy
“Category Management”
The 4 P’s Still Work!
• PRICE – Hi/ Low or EDLP
• PROMOTION – Feature Ads, Displays
• PLACE – Shelf Placement
• PRODUCT– Gain New Item Distribution
All Impact Brand Sales & Performance
Quadrant Analysis
Winners- % + %
Losers Opportunity
Volume
Retailer's Fair Share of Market (% ACV)
JOHN FRIEDAJOHN FRIEDAlondon london € paris € new york
Safeway CorporateMarket Share Quadrant
John Frieda & Physique are the only clear Winners in the category.Source: AC Nielsen “Account Planner” 52 Weeks Ending 1/26/02
$0
$10
$20
$30
$40
$50
$60
$70
1995 1996 1997 1998 1999 2000 *EST**2001*Calendar Years
-$5
$15
$35
$55
$75
$95
$115
Hair Spray Conditioner Shampoo
Hair Styling Total JF Sales
John Frieda US Sales Estimated to Continue at a Growth Rate of
22%!
Do
llar
Sal
es(M
M)
Do
llar
Sal
es(M
M)
Source: IRI; Total US FDM, 52 Wks Ending Sept. 2001
JOHN FRIEDA is a major JOHN FRIEDA is a major contributor to the positive contributor to the positive growth Dollars!!growth Dollars!!
Major Brands are showing negative growth.Source: AC Nielsen “Account Planner” 52 Weeks Ending 1/26/02
129
155 154 154
80
90
100
110
120
130
140
150
160
Hair Care John Frieda JF Sheer Blonde JF Frizz Ease
Category / Brand Development Category / Brand Development IndexesIndexes
Safeway Comparative Market - FoodSafeway Comparative Market - Food
Source: IRI
Hair Care Section
Before
After
New Alpha Hydrox
“…still the one that works…”
Anti-Aging Skin Care is the Fastest Growing Segment in the Total Skin Care Category
28.0%16.0%
17.2%
26.0%
2.6%3.4%7.3%
Anti-Aging Skin CareFacial CleanserFacial MoisturizersAcneDepilatoiresFade CrèmesBody Anti-Aging
+23.4%change
- .3%change
+2.2%
change
+5.3%change
-.3% change
-.3% C
han
ge
Source: IRI 26 week US Food, Drug, & Mass – period ending 12/26/04
Skin Care Category % Share
and (+/- ) % Change
Skin Care Category % Share
and (+/- ) % Change
-.3% C
han
ge
New Alpha Hydrox Will Outsell the Category Average & Grow Your Skin Care Category
26 Week Average $ Sales Index Per SKU
0
50
100
150
200
250
AlphaHydrox
Projected
Neutrogena Loreal Oil of Olay CategoryAverage
$ S
ales
In
dex
Alpha Hydrox Neutrogena Loreal Oil of Olay Category Average
Source: IRI US Drug 26 week- period ending- 12/26/04
Note: New Alpha Hydrox Sales per SKU based on historical sales data and & current category trends
Description UPC Unit CostSuggested
RetailProjected
UnitsProjected Sales $ Profit % Profit
New Alpha Hydrox Nourishing Cleanser
7 35379 15150 2 $5.20 $8.99 10000 $89,900 $37,900 42%
New Alpha Hydrox 12% AHA Moisturizer
7 35379 15130 4 $10.39 $15.99 10000 $159,900 $56,000 35%
New Alpha Hydrox 12% AHA Soufflé
7 35379 15140 3 $10.39 $15.99 10000 $159,900 $56,000 35%
New Alpha Hydrox 14% AHA Masks
7 35379 15160 1 $10.39 $15.99 10000 $159,900 $56,000 35%
Total New Alpha Hydrox 40,000 $569,600 $205,900 36%
Annual Sales & Profits Projection
Annual Sales & Marketing Funds Projected
Program OfferAverage Value per
Unit
Projected Unit Movement
Projected Value
2005 Total $12,000
10,000
Note: Scan down allowance per unit available only during retail promotional period
$8,000
2005 Incremental TPR or Feature Ad Scan Downs
$2.00 Scan $2.00 2,000 $4,000
2005 Co-Op Advertising 10% Accrual $0.80
Sales ProjectionsNew Alpha Hydrox
Nourishing Cleanser
Product Cost $ 5.20$ Store count 1000Sales/total/week/U 500Sales/store/week/U 0.50Sales/store/month/U 2.17Retail Price $ 7.99$ Profit $ 2.79$ GM% 35%Sales/total/year/U 26,000 Sales/total/year/$ 207,740$ Profit/total/year/$ 72,540$ Inventory/store/U 3
GMROI $ return per $1 invested $4.65
Financial ImpactFinancial ImpactAlpha Hydrox Nourishing CleanserVitamin A & E Micro beads & AHA
• Soap-free, fragrance-free• Gently & effectively removes all makeup• Rinses Clean• Vitamins A & E micro beads to cleanse and nourish
Specially formulated to maximize the effectiveness of the entire Alpha Hydrox skincare line by prepping the skin with a proper pH levelSupported by:
Aggressive Marketing Campaign
Upscale Eye-Catching Packaging
Unique Formulas for Specific Needs
Strong Impulse Sales & Profits
Strong $ Profits with High GMROI
New Alpha Hydrox Introductory Success!
TOP NATIONAL CUSTOMERS
IN 1ST 4 MONTHS OF INTRODUCTION:
Walgreen’s End Display
with $3.00 Off Promotional Offer
Keys of Effective Retail Marketing• Know Your Retail Customer – business model, goals, key business drivers,
marketing plan (4 P’s), merchandising process
• Practice Effective Presentation & Communication Skills
• Know Your Products Features/ Benefits > Important to Retailer
• Understand “Fact Based” Category Management & Analysis
• Know Your Product’s Features & Benefits > Key to Retailer
• Plan Your Business & Work Your Plan
• Prioritize Your Efforts for Successful Results!
Speaking of Successful Results …
“ A Prediction”
2006 Civil War Prediction …
VS