Physician, first do no harm!
A craft distiller was upset with the lack of progress his new spirits product had achieved in the U.S. They asked the Aged Whiskey Man to develop a plan to increase their distribution in the on-premise channel. They thought if they increased distribution, that would equal increased sales — resulting in a “problem solved” check mark on their scorecard.
How Aged Whiskey Man helped
I believe that, to solve any problem, one must master the metrics surrounding that opportunity. So, we dived into the data.
What surfaced was inconsistent with the client’s claims. Their distribution was excellent in their targeted accounts, but their velocity of sales per point of distribution (PoD) was terrible. In fact, it was dead last among seven targeted category competitors!
Seeking more distribution was harmful to the brand’s image within the channel and a misapplication of the three “Ts”: time, talent, and treasure.
We focused on the major issue blocking the product’s success. The distiller redirected their spending and programming elements at increasing sales at bellwether accounts capturing consumer adaption and usage. Within six months, sales increased substantially throughout the marketplace and product distribution became organic.
An “ounce of prevention” was worth more than a “pound of dollars.”