Whether you're a seasoned beverage industry professional or an entrepreneur with an idea for a beverage company you will need a business plan or a marketing plan for the advancement of your go to market strategy.
The distinct differences of the two are, mainly:
-Business plans are for banks, lenders, and borrowing money.
-Marketing plans are for suppliers, retailers, and making more money.
These plans are also fundamentally different, in that:
-Business plans should be based on factual data that embody your entire business architecture or conception yielding precise information about your company or proposition.
-Marketing plans should pertain to certain areas of focus of an existing brand or package, new product agreements and rollouts, and new ideas to help secure business alliances.
But, they both contain similar and essential components:
1.Pre-planning...information and fact gathering time.
2.You, your skills, and your company...remember you are selling yourself.
3.Historical data...anything pertinent to past performance.
4.Sales figures, projections, and trends...everyone wants to know what you've done, what you think you are going to do, and how you think you're going to do it.
4.Geographics...know the territory and the accounts inside and out.
5.Competition...the more you know about them the better.
6.Demographics...what the population looks like in detail.
7.Estimates...tell them how much money you are going to make them.
8.Responsibilities...who is charge of what.
9.Organizational...job titles and functions.
10.Funds...everyone is all about cash flow.
11.References...throw some names around.
Now you know the difference about beverage company business plans and beverage company marketing plans.
I've been getting many emails about starting new beverage companies and beer distributors lately, so I wrote down some new ideas about business plans for some of you budding beverage entrepreneurs out there. I've helped a few guys and gals get started in the beverage business, so if you want to pick my brain feel free to send me an email.
If you need some business plan and marketing plan examples about starting your own beverage business, please take a look at the Total Beverage Package.
Tuesday, August 05, 2008
Build a Marketing Plan or a Business Plan for a Beverage Company
Monday, March 10, 2008
100 Resources Needed to Start Your Own Soft Drink Beverage Company
I am compiling a checklist for aspiring beverage company distributors. Included in the checklist is everything you will need, in the form of resources, to start your own soft drink, new age, beer, or energy drink beverage distributorship:
1. Warehouse/Storage 51. Cell Phone
2. Van/Delivery Truck 52. Voice Mail
3. Uniforms 53. Route Book
4. Two Wheeler 54. Distribution Channels
5. First Aid Kit 55. Company Policy
6. Route Accounting 56. Employee Policy
7. Point of Sale 57. Fuel Supplier
8. Route Sheets 58. Electricity
9. Tape Gun 59. Gas/Water
10. Build To Lists 60. Blade Cutter
11. Pricing/Label Gun 61. Tape Strips
12. Products 62. Cleaning Supplies
13. Shelf Strips 63. Breakeven Analysis
14. Customers 64. Receiving
15. Insurance 65. Legal Ownership
16. Cash Flow 66. Organizational Chart
17. Glide Racks 67. Filing Cabinet
18. Imagination 68. Stapler
19. Patience 69. Security
20. Health 70. Inventory Controls
21. Banker 71. CMA Programs
22. Calculator 72. Discounting
23. Invoices 73. Rebate/Return Policy
24. Fork Lift 74. Promotions
25. Static Stickers 75. Damaged Product Procedure
26. Pallet Jack 76. Forecasting
27. Computer 77. Ledger
28. Suppliers 78. Petty Cash
29. Street Sheets 79. Budget
30. Presentations 80. Long Term Plan
31. Wallet Chain 81. Margins
32. Honesty 82. Laid Ins
33. Internet 83. FOB’s
34. Pen/Pencil 84. Order Staging
35. Notepad 85. UPC’s
36. Printer 86. COD or Credit Terms
37. Humor 87. Rotation
38. Mission Statement 88. OSHA Guidelines
39. Goals 89. CDL
40. Business Plan 90. Balance Sheet
41. Excel Spreadsheet 91. Franchise/Contract
42. Fire Extinguisher 92. Brand Programming
43. EDI Capabilities 93. Merchandising skills and Tools
44. Word 94. Dependability
45. Power Point 95. Versatility
46. Space Management 96. Laptop Computer
47. Enthusiasm 97. Briefcase
48. Comfortable Shoes 98. Business Cards
49. Samples 99. Back Brace
50. Dealer Loaders 100. TIME
Please let me know what I've left out!
Monday, March 03, 2008
Calculating Gross Profit per Case
An excellent, straightforward reference for checking the health of your beverage business is calculating your gross profit per case. Many route accounting systems have report functions that will give you an estimate of this figure, but route accounting systems don't take into consideration all of the outside influences; such as samples, free cases, breakage, discounts, promotions, or theft. I use a simple spreadsheet program that will give you the exact figure once you have entered the neccessary sales information. At the end of the month, I enter my individual case sales, gross dollars by individual case, any promotional dollars and then, in a flash, I get my figure. It stands at $4.65 a case at present, which is up substantially from three years ago, when it was a stagnant $3.87. In fact, my margins have also increased a nice 3 percentage points to 26.4%.
Analyzing your gross profit per case will undeniably impact your margins and profits in a positive manner. This simple report will also give you needed guidance in reducing unneccessary discounts, rationalization or elimination of unprofitable SKU's, monthly forecasting and ordering, and a wealth of data about your portfolio.
This program is built using simple excel formulas that you can develop very easily. If you want an example of mine, you can download it here.
Tuesday, February 26, 2008
Building a Foundation for the Distribution of New Beverages
When expanding your portfolio in the beverage distribution business, a distributor must understand and follow certain guidelines that affect the rollout of a new beverage line. I believe that additional groundwork, preparation, and sales presentation tailored locally for a new beverage introduction will pay considerable dividends in the establishment of new brands in your market. Many distributors assume the brand programming developed by the supplier will be automatically successful in their local market. Many times this is not the case. A one-size-fits-all approach will not always work. Exceptional distributors that build brands will take the brand programming and revise it with their local intricacies, pricing influences, and vernacular to help establish an enduring foundation for the brand.
An example: My company focused on initial Red Bull distribution in the on-premise on our own at our own expense, not only for its undeniable reputation as a mixer, but because all the support we received from Red Bull NA for the first year was product. We supplied the bars with personalized point of sale that we did in house and sampled it extensively. In fact, we didn’t even try to place it in the off-premise for the first two months. I firmly believe that a beverage consumed and asked for in social situations will translate to acceptance on a convenience store shelf and floor. I also believe that Red Bull has created a bureaucracy it doesn’t need. The brand’s mystique and distributor network should’ve been sufficient. An arrogant sales force will be its demise.
There are three parameters a beverage wholesaler should abide by when establishing a foundation for new product distribution:
1.Product and Supplier Knowledge. Extensive research must be conducted on the product and supplier by the distributor. Know every ingredient. Have a list of benefits, nutritional information, and product specifications. Know company contacts, advertising slogans, and all of its uses. Its imperative to know what the supplier’s mission is, what it stands for, and its beliefs. Due diligence is an absolute must before you sign the contract.
2.Local Geographic Brand Programming. You will always receive a new brand or package introduction sales presentation from a supplier. If you don’t, be worried. Anyway, once you get this ask your supplier representative to help you tailor it to your local market, if he doesn’t ask you first. Always ask for extra funding for incentives. When building your local programming, build it in language your sales force will understand and give them the tools they need for the rollout to be successful. Train them extensively. Have signage already produced, sufficient inventory of glide racks and ice bins, street sheets printed and ready to go, plenty of product, iced down samples, straightforward objectives that are not overcomplicated and confusing, and an attainable incentive that creates excitement. Try to design and convey to your sales force the exact message and look you want to see in every account. Make your employees compete…track sales, distribution, and display execution. A cookie cutter approach that designates the slightest details in the introduction is the optimum tool for a successful product rollout.
3.Convince the Retailer Beforehand. People love to buy and shop, but they hate to be sold. I am a salesman, but I hate to be sold something. I can’t stand a cold call. I want my retailers to be convinced that they need my products. I want my customers to shop from me. I want my products to be the retailer’s idea. I want my retailers to be creative with my products. A soft sell where the retailer is convinced in the product’s benefits and contributions to his own business is wonderful. Start a campaign a month before the rollout. Gain placement of teaser point of sale. Give away samples and merchandise. Talk to your customers early and tell them what you need for the brand to be a success. Make people want and ask for the product before the introduction.
Following these three brand programming guidelines for beverage distributors when introducing new beverage products will help you in building an informed and knowledgeable sales force, retailer and customer satisfaction, and trust and dependence from your suppliers.
Wednesday, February 13, 2008
Conceptualization of New Beverages at Retail
With a new beverage product introduction, you must establish your presence at retail by using imaginative and ingenious methods that focus on key attributes of your product. This should be easy, one would think, for large companies with seemingly unlimited capital (i.e. Coke, Pepsi, AB, or Miller), but I write this from the outlook of a small emerging beverage company. A company that may have one new, niche beverage in the process of building their brand from the ground up, market by market.
As a wholesaler, I am inundated with new beverage opportunities. Many of these brands are viable, great tasting products that could contend in my market. Many are concoctions thrown together with a high margin. Some even have great POS and beautiful packaging. Most all miss the boat on the conceptualization of their new product in go-to-market retail strategies.
The definition of conceptualization when applied to a new beverage is complex. The term loosely means to form by concept, which, for us, is very broad and vague. I define beverage conceptualization as the formation of beverage strategies through the consideration of multiple economic impressions. These economic impressions include, but are not limited to: originality, accessibility, availability, acceptability, dependability, positioning, and marketability.
Now when brainstorming and building your beverage concept you have an outline to help build your go-to-market strategy. Ask yourself questions based on all the economic impressions I have listed above. Some example questions are:
1.Is my product original? Is there a need for it? Has it been done before? Am I jumping on the bandwagon?
2.Is my beverage easy to use? For anyone?
3.Where do you find my beverage? Can it be bought in retail easily?
4.Is my product worth buying? Why does anyone buy it? Is it beneficial to the consumer?
5.Is it a quality product? Can you guarantee its proclaimed virtues? What about imperfections in manufacturing?
6.Do the wholesaler and retailer understand my market blueprint? Is my plan too ambitious? Do I have set, easy to achieve distribution objectives?
7.Can my product be sold profitably for everyone involved?
If you can answer these questions easily and positively, you are well on your way to marketing a successful beverage. You have an outstanding product that fulfills a need in the marketplace. But don’t start having dreams of huge wealth and success. History is cluttered with beverage companies that developed unique products and then squandered their opportunity with arrogant management, excessive spending, and idiotic policy. Many of these companies believed that the retail tier is where their fortunes laid. When in fact it is the wholesale tier. First and foremost, you must take advantage and develop good relations with wholesalers. Build your programming with language the distributor and his sales force can understand. Give equal incentives to all distributors, big and small. Never, ever penalize a distributor because his market isn’t very large, you must understand he is just as important as the largest. Treat the wholesaler as you would your best customer. Once distributors believe and trust in you and your product, you will find your beverage in the cooler and on the shelf everywhere.
Tuesday, January 29, 2008
Setting Monthly Objectives for Pre-Sell Route Salesmen
- Use historical data with trends broken down by daily, weekly, and monthly sales figures. A rule of thumb is to use your top ten packages. A true salesman needs to know how many cases he needs to sell on a particular day to hit his goals.
- Always include a distribution drive on packages that need placement.
- A list of displayable accounts, the ones that have a display and the ones that need a display.
- A few gimmies. For example: a clean vehicle, participation in company directives, fraternizing with fellow employees, community service, and night calls.
- Build a pull up schedule and include it in the objectives.
- Tie in no more than two supplier incentives, one major and one minor, per month. And always include your largest supplier. Trust me.
- Target 10-20 accounts for needed POS merchandising and cleaning, broken down by class of trade or volume. Example: five large accounts, 10 medium, and 5 small.
- It is imperative that you tie a salesman's compensation to attaining monthly goals. This way the real salesman step up and you find out who the order takers are.
- Always, always, always give weekly projections to let them no how they stand and calculate the exact results to give to the salesman at the next monthly meeting.
- Repeat every month. Once you've made it through a year, you just refresh the sales data and make any needed changes.
Congratulations, you have a working document saturated with much needed information on sales trends, distribution, retail initiatives, and incentive quotas. It is the only way I know how to keep my score in this "game".
