by: Geoff Ficke

In the 1970’s I enjoyed the great good fortune to begin my business career in the cosmetic industry. This was an electric time for the beauty industry with great entrepreneurs, amazing promotions, sizzling product launches and progressive retailers all combining to energize the business and drive unprecedented growth and excitement. As the decade unwound, I found myself in a fortunate place at a most fortunate moment: I became sales manager for Vidal Sassoon Hair Care Products. It was an invaluable learning experience.

Vidal Sassoon is the very definition of a “renaissance man”. Born into poverty in London during the depression, he apprenticed in the beauty salon of the famous Raymond of Mayfair. In 1948 he fought as a “sabra” in the Israeli war for independence. This experience triggered a lifelong devotion to philanthropy, education and activism that would benefit the Israeli nation and people everywhere and continues to this day.

The emergence of the 1960’s counter-culture, inspired in large part by the international popularity of the Beatles music and fashion, was a boon to Mr. Sassoon. His first salon on London’s Bond Street became a Mecca for hip, young trend setters seeking to replicate the bob-cut, geometric hair styles popularized by the “Fab Four” and perfected by Sassoon. Along with fashion designer Mary Quant, and Yardley Cosmetics, Vidal Sassoon became part of the beauty and style tour that accompanied Beatles concert tours. This greatly enhanced the consuming public’s awareness of the new techniques in hair design being crafted by this visionary talent.

The Vidal Sassoon salon concept was very different from the typical beauty salon of that time. The architecture, music, modernistic uniforms and styling techniques utilized in the “Sassoon Way” were standardized and taught in the new international chain of Vidal Sassoon Training Schools. The initial London salon was soon expanded into a vast group of Vida Sassoon upscale salons sprinkled around the globe. New York, Tokyo, Beverly Hills and Frankfurt were only a few of the cities that came to host Mr. Sassoon’s eponymous shops. These salons always occupied the best addresses, such as Rodeo Drive in Beverly Hills and The Water Tower in Chicago.

This visibility lead to the introduction of a line of hair care products principally sold in beauty salons. The professional products enjoyed great initial success, but Mr. Sassoon, and the executives that had been brought in to manage the rapid expansion of the Vidal Sassoon brand recognized a much larger opportunity: there was no consumer hair care line that offered a professional, designer provenance and Sassoon had the opportunity to seize this market space.

Always a visionary, the Vidal Sassoon Hair Care brand broke molds, yet resonated easily with consumers. Before the introduction of the Sassoon product line, hair care was a simple commodity business. Prell, Breck and Suave were the major brands of the day and their products were basically soapy cleansers for hair, inexpensive, elemental. Sassoon products differed in three major ways: they were packaged in solid color, starkly minimalist containers, they were marketed to be used in a 3-step regimen and they utilized a revolutionary high fashion branding statement. This was the first targeted, designer hair care program.

Rather than a simple hair cleaning product Vidal Sassoon pioneered cleansing, moisturizing and conditioning the hair follicle with three specific formulae. As the public responded ever more positively to this innovative system of hair care new, highly targeted, specifically marketed treatments and styling products were introduced. The sleek, understated packaging of the line in itself became a powerful generator of brand awareness for Vidal Sassoon Hair Care products.

Owing to the fame and legend that was attached to Mr. Sassoon, the Company did everything possible to link him and the products together as one in the public’s mind. Each commercial and print advertisement ended with the most famous beauty industry branding statement of the 1970’s and 1980’s, spoken by Vidal Sassoon, “We don’t look good, if you don’t look good”. American and worldwide product distribution channels became flush with demand for these hair care products that consumers everywhere were demanding.

Mr. Sassoon, and his actress wife Beverly Adams, became media darlings of that era. They appeared as regular guests on the most popular television talk shows of the time and gained a huge following for their views on healthy lifestyles. They co-authored several best-selling books on diet, exercise and beauty.

The demand for products that could leverage the solid gold name of Vidal Sassoon would soon lead to licensing. A number of very successful licensing contracts enabled manufacturers to brand styling tools, small electrics, hair ornaments and salon equipment with the Vidal Sassoon name. Many of these products sell successfully to this day.

As the brand and business interests of Vidal Sassoon expanded exponentially, the Company was regularly approached with offers to be purchased. This was a period when large, multi-national consumer product houses sought to build portfolios of brands across a spectrum of categories. Richardson-Vick Pharmaceuticals purchased the Vidal Sassoon Hair Care product business and they were subsequently absorbed into Proctor & Gamble.

Vidal Sassoon is recognized as one of the great beauty and fashion innovators of all time. He almost single handedly created the celebrity, fashion hair care treatment industry. From schools, to salons, to products, to licensing and as a media presence, Mr. Sassoon has pioneered the branding of himself, and his related products, as an intertwined, world- wide recognizable brand. He has been just as active and productive in the good works and causes he actively supports.

by: Geoff Ficke

In 1927 the Austrian inventor Eduard Haas introduced PEZ as an aid to curb smokers urges to engage in the unhealthy habit of smoking. Haas was an early anti-smoking crusader. Even in the early 20th century it was widely understood that smoking was a vile practice with potentially dire health consequences for users who engaged in the habit on a regular basis. Governments too, understood that smoking had dangerous long term effects on smokers health, and accordingly began to assess stiff excise taxes on sales of cigarettes.

PEZ were originally peppermint flavored. The word PEZ comes from the German word for peppermint. Mr. Haas believed that peppermint would energize the sense of taste and mute the smokers desire for smoking cigarettes as the flavor of burning tobacco smoke was believed to be unpleasant with peppermint in the body. For 25 years PEZ were sold in pharmacies in Europe and by today’s standards would be considered a modest commercial success.

The evolution of PEZ from an over the counter health aid to a candy took place before and during the World War II years. As much of Germany and the European continent lay in ruins Mr. Haas recognized that smoking was becoming more popular among many people. Smoking was one of the few relaxants readily available on the severely diminished retail marketplace of the time. Though an ardent evangelist opposed to smoking, Haas understood that his business would collapse unless he reinvented PEZ. The peppermint flavor of PEZ made the product an ideal candidate to be remarketed as a candy product.

In 1952 Eduard Haas began to export PEZ candy into the United States. Sales were initially very sluggish. American consumers did not respond to the strong, almost overwhelming peppermint flavor of PEZ candies. At this point Eduard Haas made a decision which provides an excellent teaching moment for entrepreneurs seeking to reposition their product.

Haas withdrew PEZ candy from the market, but he did not do so to close the brand down. He repackaged the candies, using new colors and fruit flavors that children especially enjoyed. The overpowering German peppermint was toned down significantly. Most importantly, the packaging of PEZ candies was reworked to possess the features of a child’s toy with cute animal heads that acted as a spring load delivery system to engage, and almost magically produce each piece of the candy. Children loved the interactivity of the packaging and the fruity treats that they delivered.

As a result of Eduard Haas reinvention of PEZ he created an iconic candy brand. The sales success and popularity of PEZ have continued unabated to this day. Very few consumers, even if they do not eat PEZ, fail to recognize PEZ when they see the cute little colored, animal inspired packages of the sweet.

Many inventors, entrepreneurs or small businesses hang their hats on a signature, “alpha” product. When or if sales lag they are flummoxed. What can be done to resurrect the brand? A new marketing strategy? New Branding? Redesigned packaging graphics? New distribution channels? These and other options must be considered. However, the Eduard Haas option, to reinvent the “alpha” product as a completely new item with fresh features and benefits is rarely considered. It should be.

by: Geoff Ficke

General Motors, Ford and Chrysler, the historic “Big 3” American automobile manufacturers are on a deathwatch. Their collective futures appear to be solely dependent on the political whims of the United States Congress. As they burn cash, are strangled by huge legacy labor obligations, confront perceived quality issues and offer cars that are out of step with consumer tastes and needs, the future looks bleak for each.

There are many reasons for the demise of these legendary manufacturing behemoths. I believe the most important cause is that for too long they did not emphasize unique, elegant design. It does not cost any more to make an ugly car than a handsome car. When I sit at a traffic light today I cannot differentiate one American model from another. As a child growing up in 1950’s America, I clearly remember going for Sunday rides and identifying every car make by the rake of the fenders, the unique headlight treatment, grille fascia and the vivid two-tone sherbet colored paint jobs specific to each model. What happened?

Design in product development is crucial to product desirability. A Krups toaster is more aesthetically pleasant than a pedestrian Emerson model. An Italian leather sofa is typically more stylized and desirable than a chain store sofa offering. Apple computers are more visibly enticing than their competitors units. Who would not rather drive a Smart car than a Geo Metro?

The most desirable design features are usually simple. In industrial design the term “elegantly simple” is used regularly to denote product improvements that are not overbearing or complex. This concept is a modern adaptation of “Occam’s Razor”, a theorem proposed by an ancient monk that the most useful solution to problems is almost always the simplest solution.

There are many wonderful examples of designers of that have enjoyed great success by employing “elegant simplicity”. One of my favorites is the classic modern jewelry designer and artist, Elsa Peretti. Her body of work is a classic collection of “less is more”.

Ms. Peretti, born in Florence, but residing in New York, has been a fixture on the international jewelry design scene for over 30 years. She became a principal designer for Tiffany in the 1970’s and famously collaborated with fashion designers Halston and Giorgio de Saint Angelo to accessorize their most famous haute couture fashion collections.

Her most recognized and lasting design is the “Peretti Floating Heart”. The simplicity of the piece is enhanced by the undulating wavy cleave that is inherent in the object. The heart seems to float and engenders a feeling of warmth that connoisseur’s have valued for decades. The “ Peretti Floating Heart” has been a mainstay in Tiffany’s stores and catalogues and been offered in dozens of styles, pieces and combinations since it’s initial presentation. The timeless influence of this design alone would insure Elsa Peretti’s place as one of the great artisan designers in history.

When Halston began work on his eponymous fragrance brand he turned to Elsa Peretti for inspiration. Her adaptation of the “Peretti Floating Heart” into the stylized sculpture that became the Halston perfume bottle is considered one of the classic designs in the history of the fragrance industry. It sells briskly to this day.

Ms. Peretti, like Raymond Loewy, Pininfarina, Felini and Erte created design, art, and fashion that is timeless. These artists realized that form and function are actually one joint element that can insure commercial success. We forget this at our peril. Just look at the current situation of the “Big 3”.

When we review new product submissions at our marketing consulting firm we apply a simple methodology to measure potential commercial success. Does the item adhere to the basic principal of “Occam’s Razor”?
Are the features and benefits inherent in the submitted item an advance over existing products in the space? Is the form and design distinctive enough to clearly differentiate the item from competition? These are only a few of the elements we review when grading opportunities.

Product designers, inventors and entrepreneurs need to study history’s successes and failures. Businesses come and go. Brands soar and decline.

You are never the greatest, only the latest. Unique design is invaluable to long-term product success. Do not dismiss this crucial product component.

Elsa Peretti has built a lasting success and legacy by focusing on design, quality and “simple elegance” that defines her work.

by: Geoff Ficke

I was most fortunate to work as an executive in the cosmetic and perfume industry in the 1970’s and 1980’s, the “Golden Years” for creativity in that wonderful business. That was the era before the immensely destructive wave of retail consolidations and corporate mergers and buyouts that has severely crimped innovation in the years since. My experience was blessedly timed to coincide with an explosion of entrepreneurial activity.

The beauty industry gave me an opportunity to work with retailers, artisan craftsman and component vendors from all over the world. One of the most rewarding and enjoyable collaborations I experienced was working with Pierre Dinand to create an original perfume flacon for a new scent I was launching.

In the world of perfumery, Pierre Dinand is a living legend. Over half of the perfume units sold around the world to this day are packaged in customized, crafted bottles designed by Mr. Dinand. He has uniquely sculpted over 500 flacons for some of the most successful and famous perfume brands in the world. Opium (Yves St. Laurent), Eternity (Calvin Klein), Fendi, Valentino, Azzaro Pour Homme, Rochas, Armani, Guerlain and Givenchy are only a tiny sample of the brands he has designed for.

Pierre Dinand works in a light, airy atelier in Paris. When Mr. Dinand accepts a commission to create an original flacon he initially receives a sample of the scent to be contained in his creation. He interviews the perfumer, seeking to ascertain the notes and moods the perfume is meant to convey to the consumer. Dinand lives with the scent until his mood has been piqued and he forms a creative template for the initial silhouette he imagines.

Mr. Dinand is an internationally acclaimed sculptor. He uses favored sculpting techniques to generate initial concept pieces. The production of molding tools for the glass and the manufacturing process must be considered when crafting the prototypes. After drawings, clay models and initial acrylic pieces are sculpted the client is brought in to critique and review the early prototypes.
The process is continued until all issues regarding aesthetics, design, tooling, production and breakage are satisfactorily addressed. The closure is often the most difficult, detailed component in a perfume flacon. The closure must have the most exact tolerance to contain the liquid (which is prone to leakage) and can add significant costs to the bill of materials.

Mr. Dinand remains involved in all aspects of the packaging of the scent until the product is on counter. He appears at press presentations, will attend key trade shows for launch purposes, meet with major buyers and lend his considerable personal network of associations whenever necessary to assist a brands success in the international marketplace. He is a true professional and the roster of hugely successful brands he has creatively inspired is testament to his genius.

Pierre Dinand has also enjoyed great success as a mainstream, consumer product container designer. One of the most famous packages he crafted is the world famous orb bottle for the popular soft drink Orangina. The ubiquitous Orangina shape is renowned around the world and is further proof that this design giant digs deep to understand the needs of every client he services.

The world of high-end perfume is populated with artisans that demand the highest levels of quality, craftsmanship and creativity. Corners are never cut in the pursuit of delivery of the perfect scent. Closure, bottle, box and coffret graphics, tester units, sales collateral, sampling and signage are all absolutely essential elements necessary to present the scent in the most exclusive presentation possible.

I have launched a number of fragrances, skin care lines, hair care programs, color cosmetics, bath and body ranges, nail care, hand and foot care brands over the years. Collaborating with top craftsman is essential in order to properly position and differentiate new products. Working with an old-world artisan such as Pierre Dinand is rewarding, and refreshing in a modern world where attention to luxury, detail and styling is almost a lost art.

by: Geoff Ficke

The stunning growth of the high-end luxury perfume business in the last two decades has been centered in the celebrity endorser, designer category. Actresses, athletes, models and fashion designers have introduced dozens of new scents; each seeking to lure consumers based on the aura created by the endorsing personality.

Whether you admire Michael Jordan’s basketball skills, Narciso Rodriguez’ modernist Spanish designs or Jennifer Lopez’ singing or acting talents, the marketers of these fragrance brands seek to profit from the perceived lifestyle allure of their licensee’s. What very few people realize is that branded fragrances are rarely, if ever, actually created by the endorser.

The perfume industry is a multi-billion dollar international enterprise. The marketers of branded fragrance products, however, rarely, if ever, develop and produce their own scents. This is a specialty business handled by large essential oil houses like IFF, Robertet, and Givaudan. These companies not only formulate scents, but they harvest and source the flora, fauna and the exotic natural ingredients that provide the base for their fragrances. Many of these biologically diverse plants and animal by-products are rare, expensive and fragile, requiring a great deal of special handling and knowledge.

An example is the whale by-product ambergris. Whales are not harvested to obtain ambergris. This is skimmed from the surface of the ocean, above swimming pods of whales, Ambergris is simply whale vomit. It is exceedingly valuable and crucial as a component in many exotic scent bases.

The high cost of perfume is attributed to the expense of obtaining essential oils from rare and expensive plants. Rare orchids can yield only a few drops of oil per plant harvested and processed. The processing of essential oils is its own industry.

Companies like Estee Lauder, Elizabeth Arden and Lancome do not produce any of their own fragrances. They typically meet with perfume houses such as Givaudan, provide guidance as to their desired scent direction, and then await and evaluate submissions from the integrated houses chosen to bid on the project. Once a favored prototype scent is chosen then the perfume house is contracted to perfect the scent and produce the oils.

The creation of perfume is part science, part marketing, part branding, and a whole lot of art. The art of designing unique, commercial fragrances is entrusted to the “nose” retained by the perfume house. “Noses” are rare, coddled, gifted and possess a talent so unusual that there are only a few recognized “noses” in the world at any given time.

I have had the good fortune to work with one of the greatest, most successful “noses” of the second half of the 20th century. Francis Camail is a legend in the world of creative perfumery. The list of his achievements is stunning. Watching and experiencing his work is to view the efforts of a “master”.

Mr. Camail, working from his laboratory in Grasse, France has been the creative genius behind Annick Goutal, Revlon’s Charlie (at one time the most popular scent in the world), Giorgio (the most profitable brand of the 1980’s), Estee Lauder’s Aliage, Eternity (Calvin Klein), Ivoire (Pierre Balmain) and Bond #9. These are only a few of the brands that have germinated from his ability to create scents that consumer’s desire and loyally purchase on a repeat basis.

Mr. Camail is unique in that he is an independent contractor hired out by large, international perfume houses on a per job contract basis. His reputation is so powerful that he has the ability to be exceedingly selective in the clients he chooses to work with. To view the process he utilizes to layer, build and nurture various top notes, dry notes and a final bouquet is to experience a true artisan master at work.

The creative process necessary to produce luxury perfumery is an old-world, artisan craftsman skill that can not be taught. Francis Camail does employ assistants and interns, as do most other “noses”. However, very few of them, if any, ever go on to successfully conquer the mystical world of exotic fragrance. His skills are apparently God given.

In a world of mass production and industrialization, it is reassuring to know that skills such as those provided by perfumery “noses” are still extant, and essential. The world still has nooks and crannies that appreciate and value craft and artisan skills and abilities.

by: Geoff Ficke
I grew up in the 1950’s playing basketball hour after hour on city playgrounds. The public courts of the day were nothing like those found today in most American towns. There were no lights, a steel, kidney-shaped backboard (ugh!) with bent rims, occasionally a steel chain net and no lines painted to properly delineate the free throw line and out of bounds. The surface was often rough and cracked. You had to know where the ball would give a true bounce and where you could lose control because of the uneven surface.

But we played on for endless hours in all weather. The worst nights were when there was no moon to play by. We had to quit play early on those nights. Every Christmas I would find a new Voit basketball under the tree. It was a glorious site, sparkling, hard, looking just like a ball you would see the pros play with on television. I could not wait to get the presents unwrapped, finish the never ending holiday breakfast, get to Mass and, then, finally, get my new Voit to the courts.

The only other sporting good product that came remotely close to the joy of seeing my new ball every year was when I bought a new pair of Chuck Taylor Converse All Star shoes. Back in that day, Chuck’s as they were universally called, were the gold standard of sports shoe. You could buy black or white Chuck’s. There were cheaper knock off brands of athletic shoes, but though we were poor, no kid in our neighborhood would hit the court in anything but a pair of Chuck’s.

Chuck Taylor Converse All Star’s were a pretty basic affair. The shoes had a cloth, flexible, soft upper construction. The upper was glued to a layered rubberized sole. There was an iconic round logo glued to the outside of the shoes letting everyone rest assured that these were real Chuck’s. The designer of the shoes was the former star basketball player and coach, Chuck Taylor.

Until the mid-1960’s Chuck’s remained the shoe of choice for all levels of basketball players from Pee Wee to professional. At about this time a new development in the evolution of athletic performance enhancement came to market. This new product changed the way athletes train and play, the way sports were funded and athletes were paid and revolutionized modern personal care and entertainment habits.

Bill Bowerman was a decorated World War II hero. After the war he returned to his native Oregon where he became one of the great track coaches of all time at the University of Oregon. His squads won national championships, his athletes won numerous national and Olympic championships. Bowerman created numerous training techniques that he utilized to pull more speed, endurance and confidence out of his athletes. He always was looking for an edge.

In 1962 Bill Bowerman took a trip to New Zealand, and almost unbelievably, was introduced to jogging which was popular in that island nation. Before this time, jogging as part of a healthy exercise regimen was virtually unknown in America. He returned home and published a small 100 page book titled “Jogging”. It sold over one million copies and started the jogging craze in the United States.

In any endeavor where achieving great speed is the goal of the activity, the enemy of maximum performance is weight. Race cars go faster if they can be made lighter. Bowerman was passionate about improving athletic performance. It was this passion that pushed him to design and launch one of the great consumer products, and brands, of all times.

In his home workshop, Bill Bowerman was a constant tinkerer. While seeking to craft a novel performance running shoe, he had the idea to impound his wife’s waffle iron and use the griddle to score the soles of prototype training shoes he was experimenting with. He seared the rubberized soles with the waffle iron and found that by removing sections of the rubber, the shoes were more aerodynamic, lighter weight and provided substantially more grip than the available shoes of that day.

The iconic Cortez running shoe, still popular to this day, was born. Athletes were ecstatic with the fit, comfort and added speed that the Cortez shoes provided.
Coach Bowerman approached a former runner athlete of his, Phil Knight, with a proposition. He would design and test the shoes, if Knight would handle the business side of a new enterprise. They sealed their deal with a handshake and Nike was born.

For many years the Nike brand has been synonymous with the growth and commercialization of sport at all levels, internationally, domestically, amateur and professional. Athletes, coaches, professional teams and universities sign multi-million dollar contracts to wear Nike gear and display the famous “swoosh” branding logo on their uniforms, footwear, balls and sport bags. Nike retail stores are in most shopping malls.

Sponsorships pioneered by Nike have resulted in the explosion of televised sporting events. New sports such as beach volleyball and extreme sports have boomed and penetrated sports fans consciousness. Basketball has spread from an American centered game to enjoying huge international growth largely because of Nike sponsorship deals and in country marketing. Almost inevitability, when sporting history is made, or records broken, Nike is involved either in marketing the event or providing athletic enhancement products.

Nike is a multi-billion dollar corporate success. There is almost no sport, organized or recreational, that does not feel the tentacles of the Nike reach. The brand is one of the most recognizable in the world. For years the Company has been considered one of America’s best employers in annual worker surveys. The State of Oregon and the University of Oregon have received munificent benefits from the generosity and immense profitability of Nike.

Bill Bowerman was not seeking to build a financial fortune when he inadvertently did so by achieving his real goal of seeking more speed for his athletes. His Cortez shoes were the “alpha” product that became the cornerstone for building one of the world’s great brands. He died in 1999.

Coach Bowerman was a war hero, athlete, coach and teacher, beloved by each of the students and athletes that came under his sway. His legacy is burnished every time a recreational jogger dons Nike shoes and shorts to make a run, or the University of Kentucky basketball team takes to the court in Nike uniforms. The benefits that society continues to enjoy from his creativity and passion will make each of our lives richer for as long as Nike successfully expands sporting opportunities and seeks more performance benefits for its products.

by: Geoff Ficke

Many of the inventors and entrepreneurs we deal with in our consumer product marketing business approach us with dreams of selling product to the masses. This can be lucrative and a proper launch strategy in cases where all of the stars in the galaxy line up properly. How often does that happen?

Mass marketing success is contingent on economies of scale, production advantages and large budgets for penetrating a clamorous commercial environment. Large, established companies, think Procter & Gamble, Unilever, Rubbermaid, have all of the tools needed to launch products into this maelstrom. Most small entities and individuals do not.

Our preferred strategy is often to create a branding strategy based on exclusivity. When a product is sold in a limited distribution basis, available in select stores, and usually at a higher price than similar products, consumers tend to attach a higher perceived value to these items.

There are numerous examples of exclusivity that can be used as a template when considering the proper strategy to utilize for a new consumer product launch. Retailers that sell high-end limited distribution products are very profitable and enjoy exceedingly high profiles. Bloomingdales, Tourneau, Neiman Marcus, Harvery Nichols, Harrod’s, and Ralph Lauren are just a few of the stores that appeal to the “carriage trade”. These stores seek goods of high quality, that can be priced at a premium, and that are not available from competitive outlets. This creates a loyal customer for the types of merchandise that can only be found in these doors.

Automobiles, jewelry, ready-to-wear, cosmetics, watches and home décor are only a few product categories where exclusivity is validated as a marketing and branding strategy.

Ferrarri, Mercedes-Benz, Porsche and Jaguar are world famous automobiles franchises. Ferrarri has created a worldwide thirst for these sleek, super fast, super priced sports cars with the “Prancing Horse” on the hood. There are only a handful of authorized Ferrarri dealers in the United States. Production is kept very small and all cars are typically sold two years before they are produced. This insures that value for used vehicles remains very high. Indeed, many old Ferrarri’s appreciate in value, something that can be said of very automobile brands.

Rolex, Baume Mercier, Audemars Piguet, Chopard and Patek Phillippe are a smattering of the very expensive watch brands that are considered to be prized for their exclusivity, beauty, artisan craftsmanship and perceived value. They are sold in very few retail stores. The very fact that they are hard to find, expensive to buy and limited production makes each of these watches highly desirable.

Cosmetics houses at the highest end of the market differentiate themselves by limiting distribution to a select few stores in any given trading area. Clarins, La Prarie, Guerlain, Crème de la Mer, and Estee Lauder are very choosy about where their products are placed. This insures that consumers recognize that by their very lack of availability these products are special, and therefore, justify higher retail price points.

We look at hundreds of new products each year. A select few offer that unique blend of novel consumer features and performance benefits that insure success. A strategy we often use to launch such products is built on exclusivity, at least initially. It is very easy to “knock yourself off” and replicate high-end success with less expensive mass-market versions of your product. If you do not secure this space, competitors certainly will.

Alfred Sloan, the business and organizational genius that created General Motors in the 1920’s, crafted the multi-price point strategy of offering something for everyone. Cadillac was exclusively for the rich. Buick and Oldsmobile were positioned for the middle class, older customers, seeking unobtrusive styling and soft rides. Pontiac was sportier and Chevrolet was the mass market, entry level brand. Sloan recognized that today’s Chevy driver, as they prospered and aged, would move up the GM food chain.

Charles Revson adapted this multi-level channel distribution strategy with Revlon cosmetics. Etherea was his very exclusive carriage trade brand. Ultima II was for fine department stores. For broader distribution in general department stores and boutiques Revson sold his Revlon brand. These Revlon corporate lines were each differentiated by price point, packaging, product claims and performance. He offered something for every range of consumer.

There are a number of advantages to an exclusivity strategy. Typically initial inventory build out is mitigated, freeing up capital for sales promotion. Limited distribution means that the entrepreneur can be more attentive to each individual door carrying their items. Fewer doors can mean that product features and benefits can be demonstrated to individual consumers. This creates word of mouth and referrals. It minimizes the need for expensive media advertising. In-store merchandising is more manageable when distribution is limited. The opportunity to grow organically, the turtle approach; often enables the new company to establish a much more stable foundation from which to expand.

A type of exclusivity strategy can be constructed for products in virtually any category. From liquor, to beer, to hardware, to foodstuff, to lingerie, to pet products, the list goes on endlessly, there are opportunities to successfully commercialize ideas and make them successful using limited distribution techniques. This tried and true methodology is under-utilized, but often the best way to penetrate a very tough marketplace.

by: Geoff Ficke

Their Successors Often Lose Focus