Why Have A Winning SKU / Brand ?


Strategic Objectives:

Financial Perspective

F1. Your brands in Category A will meet your shareholder objectives of growth
F2. Your brands in Category C will meet your shareholder objectives of bottom line growth which is profit
F3. Your brands in Category A will make your customers pay you on time – because they need your wine, spirit, beer or the beverage brand that is moving well

Customer Perspective

C1. Your customer who is a retailer or distributor has confidence in you as your brands in Cateogry A are moving
C2. They will give your B and C category brands a chance
C3. You can use your A Category brands to open new accounts (who are price sensitive – like any new customers).
C4. Your customer’s customer will also know you. Nothing is as important as your customer’s customer asking for your brand.

Sales Perspective

S1. Your sales people, your distributor’s sales people will like you because the A Category brands are moving
S2. We just mentioned the most important point of all (S1). It is important that the people selling to the retailers pitch your brands. They will pitch other wines from your portfolio if you have a brand they like (usually).
S3. You need the C Category brands to provide programming and incentives for the entire portfolio





Business owners often measure their top line brands as ‘loss leaders’ as they directly try and see their gross profit contribution. Measuring how those brands help you sell other profitable brands is also just as important.


-Reputation: Reputation is everything in the beverage business if you are here for the long term. Distributors, brokers and retailers should see you as a preferred choice of supplier. Reputation comes when you prove that your brands work.


-Payments/ Accounts Receivable: Believe it or not, if you have a leading brand which your customer needs on a regular basis, your accountant will like you and so will your admin person who is chasing up on payments.


-B and C brands will come and go, but as long as you have your main brand working for you, you will sustain and grow your business. It is very hard to keep finding new distributors as after some time, you will run into them again. (After a few years with your brand in the market you will soon notice that it is a small world and reputation maters).


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