Electronic Retailer - January 2012 - 38

There is a reason why the best companies have hit after hit: It’s because they look at the long-term big picture of their relationships and manage their product programs accordingly. Take my company, for example; if we walk into a meeting with a top retailer, they are going to listen to our pitch and usually follow our recommendations because we have a proven track record of successful products and working with retailers through product markdowns or RTVs once the product is on the downswing.

You can work with distributors to manage your retail program; these distributors will take all the risk at the retail level and make sure that the program is managed appropriately. If you’re managing the program yourself, understand that the relationship with the retailer has become more one-sided over the last decade. I am not saying to let the retailer take advantage of you, but you need to know that retailers are the ones paying your bills, so you have to treat them ethically and openly. As

Guthy-Renker would like to thank the Electronic Retailing Association for its gracious acknowledgment at the 2011 ERA Moxie Awards.
A special thanks for recognizing WEN® by Chaz Dean as Best Long Form of the Year (Over 250k)

mentioned above, retailers have long memories, so don’t lie to them. If you are honest in presenting your sales projections for your program, then you can manage their expectations and create a partnership where both sides are happy. Lastly, delve into the estimated Sales Per Door Per Week (SPDPW), and be honest with your advertising budget; don’t just tell your retailers what they want to hear. Act ethically and think long-term when things start to turn downward. Help your retailers manage their inventory levels. They won’t catch the decrease in SPDPW until it is too late, and they will come back asking for your help. If you want to be around long-term, be prepared to offer markdown assistance on your item to decrease the price to move through inventory or take the product back and refund customers their money. Obviously, this gets extremely expensive as you are giving back money, but if you manage the program right from the beginning, you will not encounter as many refunds.

Deliver on Results
Retail exposure is important, but you need to ensure it is done smartly and without compromising brand integrity or business profitability. To deliver these results, keep these key deliverables top of mind: • Develop a clear and concise launch and exit strategy from the beginning. • Create a retail plan that fits your business; don’t try to fit direct response into a retail model. • Don’t lie to yourself – or the retailer. • Watch trends weekly and react accordingly. Remember, not every product is going to be a grand slam at the end of the day, but retailers need those singles, doubles and triples. Just remember that if you want to be around long-term, don’t get in over your head your first time at bat. Adam Schumacher is president and CEO of Pivotal 5, Inc., a company specializes in taking product to market via cross-retail avenues including mass, drug, club, specialty fitness, military, natural and grocery.
11/16/11 10:08:11 AM

Best Short Form, Beauty – Proactiv® Solution: Justin Bieber Best Long Form, Beauty – Meaningful Beauty® Best Celebrity Presenter – Alyssa Milano for WEN® by Chaz Dean Best Short Form, International – Proactiv® Solution: Japan Best DR Website Design – Proactiv® Solution Best Use of Online Video – Proactiv® Solution

We are truly honored.

Meaningful Beauty Cindy Crawford

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electronicRETAILER | January 2012

Electronic Retailer - January 2012

Table of Contents for the Digital Edition of Electronic Retailer - January 2012