Question

Topic: Strategy

Developing My Product Demands In The Usa

Posted by Anonymous on 1/12/2009 at 4:09 AM ET 250 Points
Hi
I would like to develop my products demands in the USA. The base product is a known brand cosmetic product, and its quality is well acknowledged. My idea is to start a new line with a new brand: the edge - slightly cheaper products that have a religious aspect that I cannot reveal.
It should not compete with the known brand, since it should appeal to new and different target consumers: very religious people, that don't typically spend much money on cosmetics. I assume it will require an entirely different marketing strategy - to get into the communities through religious fares, community leaders, etc.
My question: When looking for a distributor that knows how to work with these markets, and how to develop the product demands, would it be a good idea to consider a new firm (for the new line only), and to offer partnership to the distributor?
What would be the pros and cons of such a move?
(Sorry if my English is flawed)
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RESPONSES

  • Posted by CarolBlaha on 1/12/2009 at 9:37 AM Member
    Do you want a distributor, dealers or sales reps?

    I would talk to your distributor now and see if there is interest in the new line, and how they feel it would compete, fit or be a dissolution of interest for them with the established product. You have a relationship with them already-- give them at least right of first refusal. They'd add it to the mix as any other line. You can still brand it separately. That is exactly what another distributor would treat the line.

    If the customer base is very different from your established product and your established distributor does not service this market-- then yes, the business decision is to find someone familiar with this market. However, distributors usually do not work with religious fairs, etc-- unless they are wholesale and for resale-- dealers or sales reps do.

    I am always leary of establishing partnership with a firm you haven't worked with too fast. You don't know how they'll perform, if you two can even work together. You can certainly offer it as an option to the future-- with set performance goals of course.
  • Posted on 1/14/2009 at 1:23 PM Author
    Well, it is hard to give more details without revealing the actual idea, but I'll try.

    First of all let me correct the impression I gave:
    1. I am not talking about people who "do not wear makeup due to religious principles", but about people who see less importance in spending money on cosmetics, since their scale of values is different.
    2. The cosmetic products I am talking about is not lipstick or so, but creams, anti-aging formulas, etc.

    Maybe my assumption is wrong, but I believe that providing the product some religious significance, will bring more incentive to purchase it, for such people. They might start using it for its religious value, and continue, because it it good. They might even consider that it is good because of its religious quality, Which is fine by me. Sorry, but I cannot say more about it.

    I hope it helps
  • Posted on 1/14/2009 at 1:42 PM Author
    Thank you Carol
    Your answer is helpful.

    Let me be more clear in some issues.
    1. The company is not mine. I am a share holder, but this is not my company. I have an original idea that with a slight production change, and the right marketing method, should increase sales. We are talking about starting a subsidiary company, in which I'll hold more shares, and one of the options is to add a third partner that is an expert in developing product demands in Christian populations in the USA, which is the main target population

    I don't know if a distributor is the right term for what I am looking for. I am looking for someone professional that will take the whole "marketing in the USA" deal, including distributing, hiring the sales reps if needed, make connections with community leaders, etc.
  • Posted by CarolBlaha on 1/14/2009 at 4:42 PM Accepted
    First you are correct-- in the target group the religous significance is important.

    What you need is a rep group. You should find a sales manager -- they will work with distribution and manage the reps. You may be able to find one who will work on performance and small retainer. I maintain a rep agency (unrelated biz), and those type of arrangements are common.

    The sales manager will bring on the reps (again performance based) and it would be their responsibility to set up dealers. It would be a joint responsibility of dealers and reps to make those connections.

    The place to find good reps is manaonline.org. You can find them on places like rephunter etc, but the products that advertise there are not the company you'd want to keep. Call them and ask for referrals. If they don't have members that target your crowd, they might be able to refer you further. If someone has gone the route of joining this high integrity trade org, they are serious about their biz. I was a member but am established now that people find me via referral.

    Which is the 2nd way to find reps. Call the major stores selling these products-- and talk to their buyers. They will know who is good -- who they like working with. Hiring that person will let you know they already have established contact with one of your prime targets.
  • Posted on 1/15/2009 at 7:15 AM Author
    Thank you very much, Carol

    It is a great answer.

    :)
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