Editor's
Note: As part of our continuing commitment to industry
education at the Fiery-Foods & Barbecue SuperSite, we are pleased
to present a new, three-part article for our College of Chile Knowledge
e-zine. Here are the techniques that a former newbie to the industry used
to put her gourmet products into stores all over the country.
As
those of us who have taken the leap and established our own companies
know, there really isn’t a formal course you can take to learn how
to most effectively move your product from the warehouse to the consumer’s
table. While our industry can sometimes be difficult to navigate, I’ve
found that the basic life lessons I learned way back in elementary school
can make the twists and turns of our business a little less daunting while
delivering the marketing successes for which we all strive.
Here
then, are the things I’ve learned that have helped d’Oni Enterprises
pave its own road to success:
Be
Like the Little Engine That Could
I guess you could say I am lucky. I've picked my projects carefully and
can honestly say I haven't failed. Not to say that breaking into the gourmet
foods industry has been easy -- it hasn't. As with everything, the ebbs
and flows of small business are filled with mountains and valleys. In
the end, it's really how you climb or cross them that means the difference
between success and failure.
I
started my company with no formal sales experience to speak of. I suppose
you could count my years as a darned good cocktail waitress; I could upgrade
anyone from Smirnoff to Absolut or from Moet to Cristal in a moment, but
that really is the extent of it. In my last job, I'd attended Tom Hopkins
and Zig Ziglar sales training seminars, but that really didn't translate
well to the realities of the gourmet foods industry (wait, you want me
to break down the cost of my Burning Desire Habanero Hot Sauce to the
ridiculous? Why?)So
what helped us put d’Oni products on shelves throughout the United
States and Canada? Tenacity, that’s what. I know I have a good product
and I know that if given the opportunity, others will come to know that,
too. Like that little train we all read about as children, "I think
I can." And as a result, I have. Sure, it takes time. And yes, it
takes effort. But oh, how good it feels when that train finally pulls
into the station and you get to put your feet up and celebrate your success.Do
Your Homework
Arming yourself with market stats, your company's stats, and offering
them up with a dose of personal sincerity is going to take you a lot further
than quoting Dale Carnegie to a buyer who may have already read the same
books you did. As a result, I quickly formulated my own personal theory
about sales: a buyer's job is to buy, but they don't necessarily want
to be sold. They want to see products that have merit, either through
quality, niche market--or in a lot of cases, products that will make their
stores turn their real estate into a profit. Talk may be cheap. But numbers
provide actual proof.Preaching
the importance of market analysis seems silly because it’s so basic.
But I’ll say it again -- break down your market to numbers that
tell your story beyond the usual sales buzzwords that buyers hear ad nauseum.
In my case, it was easy. I was my own market. I led an active, busy life.
I worked full-time. I didn’t have hours to spend preparing meals
yet I wanted the food I ate to be something better than the relatively
unhealthy and bland prepared foods that busy people often pick up on the
fly. In a nutshell, I wanted healthy food with a gourmet flavor but without
the time and effort that goes into preparing a gourmet meal. And if I
wanted that, I was willing to bet that others did, too. From there, I
just had to find the numbers to justify the notion. And lo and behold,
when I did the research, they were there.Bottom
line: numbers don’t lie. And the marriage of solid marketing data
and a quality product makes your pitch stronger and increases the likelihood
that the busy buyers you’re contacting will put your products on
more shelves.
Get
That Gold Star
We really began our business by entering contests. Our Burning Desire
Habanero Hot Sauce and Moondance Marinade won a contest put on by Hot
Licks in 1996. A first place ribbon let me know that more than just my
mother would like our sauces. Since our launch in March, 2000, our products
have won three Scovie Awards, one Chile Pepper Fiery Foods Challenge,
and one Texas Fiery Foods Shootout award.
In fact, our most recent Scovie was awarded to d’Oni’s newest
product: VIBE Grill/Glaze/Dip, which won’t hit the marketplace until
the next National Fiery Foods & Barbecue Show in March, 2002. But
having that award under our belt is a powerful selling tool, not to mention
a strong motivator.
But you can’t win unless you’re in the game. So find the right
contests for your products and start submitting those entry forms. And
remember: everybody loves a winner.
Pick
the Right Playground
Remember that old Sesame Street song that went "One of these things
is not like the others?" The same holds true within our industry.
We
might use the same ingredients as you do. We might even use the same bottles.
But if your product label shows a flaming body part and features a name
that would make your grandmother blush, we’re probably not meant
to sit next to each other on the shelf.
d’Oni
products were created for the gourmet hot sauce and condiment market niche.
That’s not to say that we think there isn’t a place for those
bold and bawdy products that so many consumers love; it’s a wide-open
industry and there’s plenty of room for everyone. But our product
labeling, sales materials, marketing collateral, and our selling technique
all clearly indicate that our products are targeted to a very specific
audience. And while gourmet products can be called fiery, not all fiery
products should be thought of as gourmet.
Because
we have a very clear picture of what our products are, who they are targeted
to, and where those people shop, it’s easy for us to devise a marketing
strategy that successfully delivers those products to the end user. We
don’t aspire to placing d’Oni products on every shelf in the
world because we want to stay true to the niche market we identified when
we went into business. But that’s OUR plan. YOUR plan may be entirely
different. And that’s as it should be. You’ve got to pick
the placements that are right for you and in alignment with your corporate
goals.
An
unforeseen benefit of staying true to our plan has been the interest we’ve
received from well-known corporate entities who want to private label
our products for wide-scale distribution. Despite our short business tenure,
the d’Oni label has already become known for its quality because
of its strong orientation as a gourmet product line. And while we feel
products carrying the d’Oni name will always belong in carefully
selected retail settings, private labeling will deliver the broader distribution
and sales volume that all small businesses dream of achieving some day.
It’s really the ultimate win-win for everyone involved.
Play
Nicely with the Other Kids
It’s easy to look at other companies as simply the competition.
We’re all marketers and we know that identifying the other players
within the marketplace is a key component of business success. But we’ve
found that also going a step farther and taking the time to look at other
companies as potential allies may be infinitely wiser over the long haul.
When
we began seriously thinking about starting our company, we had millions
of questions about just about every part of the process. And who better
to answer them than someone that has already been down that road? We were
blessed with wonderful advisors, some of whom we now consider dear and
lifelong friends, who graciously shared their successes and steered us
away from possible failures. As a result, I can’t emphasize enough
the importance of and the long-term benefits that can result from establishing
a professional network among your industry colleagues.
My most valued networking relationships don’t necessarily have the
same market niches than our company’s. We often bounce ideas off
each other and find not only solutions to the challenges at hand, but
identify new ideas, markets and resources that create entirely new opportunities
for success. d’Oni products might not sit next to yours on the shelf,
but our business approaches might be found side by side much of the time.
One
of my fondest memories since the inception of d’Oni Enterprises
was an out-of-town contest featuring the winning products of each category.
The contest was a competition where the number one's competed. You would
think that this type of competition could get ugly. Not in our industry.
Together
we prepared, we partied, we cheered, we congratulated. And I hope in my
lifetime I don't forget the kindness, camaraderie and friendship I felt
those few cold NYC days. It's not every day a person can say that they
are friends with a Gecko, a hurtin' heini, a big pepper guy, a CaJohn
and some after death people.
Learn
to Share
Networking just makes good business sense. Having someone to talk to who
understands the industry, its challenges, and its rewards is both therapeutic
and can often be profitable in ways that neither party ever expected.
Because other companies were so helpful to us when we were just starting
out, we feel it’s our duty to return the favor by sharing the knowledge
we’ve gained with others who are new to the industry. At industry
trade shows and contests, we seek out people and products we’ve
read about and have
profiled them on SauceMall.com, the first portal featuring gourmet and
heated sauces. We’ve partnered with other companies to minimize
shipping costs, gain entry into key markets, and strategize ways to address
industry-wide challenges and opportunities. We’ve collaborated on
the production of gift baskets and initiated discussions about other ways
to maximize exposure while minimizing costs, such as sharing booth space
at key industry events and co-marketing complementary products.
On
a strictly personal level, it’s also great to know you will be bumping
into familiar faces when business takes you into unfamiliar places. Over
the years, we’ve had some terrific times hanging out with our industry
friends at the National Fiery Foods & Barbecue Show and other events.
And as with all of our friendships, we apply the Golden Rule to our business
relationships, too. We treat others as we would like to be treated. We
never speak badly of another company or their products. We offer support
to others when needed and celebrate others’ successes as if they
were our own. We recognize that the industry is made up of thousands of
different products because consumers seek a variety of different tastes.
We’re part of an exciting, growing industry, and that means there
is plenty of opportunity for all of us who seek it.
Know
Who the Bullies Are
Sometimes, despite your best efforts, not everyone is going to be your
friend. Every playground has its bullies, and it’s better to figure
out ways to navigate around them than spend wasted hours trying to get
them to look at life from your point of view. This rings especially true
when you’re trying to get your products into very targeted retail
environments. Some of you may not see placement or slotting fees as a
hurdle, but our small company has to be very careful about how it manages
its financial resources during this growth phase. We have to really think
about whether paying marketing fees to our retailers of choice is going
to have the impact we’re looking for as we try to grow our business
within our market segment. And sometimes, that means making some hard
choices about where our marketing budgets should be allocated. Like all
of you, we want our business to grow. But sometimes, we have to face the
reality that we can’t make it grow as quickly as we’d like.
The
other thing we hate to think about (but know we have to address) is the
fact that bullies aren’t known for playing by the rules. We’ve
all had experience with deadbeat accounts, who show plenty of excitement
about our products and their ability to move them at the time they place
their orders, but drag their feet and don’t return our calls when
it comes time to pay the bills. And because most of us are nice people,
we don’t like having to be the bad guy and go chasing after them.
But it’s something we need to make time for amidst all the other
things we do to keep our companies moving forward.
We
want to be accommodating. We want to understand. We want to be flexible.
But we also want to be profitable, and we can’t be if we don’t
collect on accounts receivable.
We
also need to realize that time is money, and sometimes the smartest thing
to do is give up the chase. If you’ve been calling the same distributor
once a week for six months and he still hasn’t agreed to handle
your product, maybe it’s time to give it a rest and spend that time
on your best customers. It’s just a sad fact of our business life
that some prospects aren’t ever going to give you the chance to
make the sale. And the smartest kids know that the wise thing to do in
such cases is look for a different challenge with a greater potential
for success.
Clean
Your Room
Many of our companies are home-based. But even if you’re operating
from a spare bedroom-turned corporate office, it’s important to
be as organized as possible. Small business is still business and as management
gurus will tell you, the most efficient companies have defined roles,
responsibilities, and systems in place at all times.
The
time and money spent to implement operating systems for your company will
more than justify itself in the end. And believe it or not, it’ll
help keep you focused and motivated if you know exactly what you need
to do and how you need to do it. There are lots of great computer programs
that will help you to get and stay organized. Being a bit of a computer
geek myself, I’ve saved our company lots of money by learning how
to use graphic and website design programs, databases and financial management
software to full efficiency.
Because
I’m able to manage all these key business functions myself, I don’t
ever have to relinquish control of them to others, which allows me to
hit my company’s deadlines and deliver the highest quality services
possible to my customers.
In the same vein, I can’t stress enough the importance of maintaining
up-to-date records about your prospects and accounts. Notetaking and filing
may seem like the last thing you want to do when you have ten million
other things to do, but careful recordkeeping delivers the kind of historic
data that will see your company through your customers’ corporate
mergers and acquisitions, personnel changes, new pricing structures, etc.
And as your company grows, and you’re able to hire others to take
some tasks off your plate, you’ll be able to provide your employees
with tangible materials that will help them help you to take your company
to the next level. The goal is to work smarter rather than harder. And
organization makes that truly possible. The bottom line is this: our corporate
operations and systems should reflect the same level of quality as the
products we produce.
Sing
your ABCs
Some people feel funny bragging about their products. I’m not one
of them. If I didn’t believe d’Oni’s line was something
special, I’d have never gone into business in the first place. But
winning that first contest ignited my passion about fiery and heated foods
and it’s still burning bright. I’m proud of our products and
I’m proud of what our company has accomplished and
I’m not afraid to shout it out to the masses. None of us should
expect others to believe in our products unless we clearly demonstrate
our own belief in them.
Every
time we win another award, we work to make our prospects and customers
aware of it. We've placed the most marketable award logos on our letterhead
and tagged our website with logos identifying us as contest winners. Our
own post-contest publicity efforts piggybacked upon those of the contest
organizers create synergy within the marketplace and more than justify
the time and expense. Plus every contest win provides a new hook to cast
to prospective and existing buyers. And marketplace recognition certainly
can provide a worn-out sauce mogul with a well-needed shot in the arm
when the market is flat and motivation is in short supply.
We
have to be comfortable with singing our own praises. If we do a good job
of it, others are sure to join the chorus.
Imagine
What It's Like to Be in the First Grade
d’Oni Enterprises may be a small company. But it is also a company
with big dreams. We have accomplished an awful lot since we started our
company. But we never rest on our laurels. We’re always looking
to the future, keeping abreast of industry trends and the way that they
might impact our business, brainstorming new product ideas, thinking about
establishing partnerships with likeminded individuals and organizations,
seeking out ways to expand our reach and increase our profitability. Our
marketing materials, product packaging and collateral materials are high-quality
and as professional-looking as those of much larger companies. In fact,
since we began in business, many people in the industry have been surprised
to learn how small our company actually is in terms of staffing. And that’s
as it should be. One of our primary objectives was to create a professional
image that positions our company and our products amongst the entire roster
of players in the marketplace. And we did. Small doesn’t mean unprofessional
or unsophisticated. Small just means you’ve got plenty of room to
grow.
When
it comes right down to it, small businesses really don’t operate
all that differently than the big boys. Sure, they have a lot more hands
on deck than we do, but the operating philosophies are very often the
same. I think sometimes it’s easy to forget that the companies we
look to as the most successful all began as small businesses like us.
I
began my professional career working in a company that was started with
a $700 investment and a handful of employees. Today that same company
is a multi-million dollar enterprise and a leader in its field. And while
I’m still not sure what I want d’Oni Enterprises to be when
it grows up, I have never stopped thinking about the possibilities. You
shouldn’t, either.
Bring the
Teacher an Apple
None of us lives in a vacuum. Our success depends on a team of people,
each doing their part and doing it well. So it’s important to remember
to make people feel good about their contributions to the process and
to recognize their efforts.
Phone calls, handwritten thank you notes and prompt follow-up are three
keys to establishing positive and lasting relationships with your vendors,
customers and prospects. In a world where email has replaced office visits,
anything you can do to put a friendly and personal face on your interactions
will make them more memorable and more likely to deliver positive results.
People
just prefer doing business with people they know and like. Trust develops
more easily among friends. Vendors are more likely to go the extra mile
for people that are easy to work with, treat them with kindness and respect,
and pay their bills on time.
Think about how YOU like to be treated by people. Then make sure you treat
the people in your business circle the same way (or better). I guarantee
you’ll see dividends from giving the gift of thanks.
Practice
Good Citizenship
In the current economy, more and more business decisions are being made
based on ROI (return on investment) outcomes. Lots of marketing tactics
have merit but increasingly, when budgets are tight and things have to
be trimmed, the first things to go are the ones with the lowest ROI. These
often include "feel good" tactics like cause-related activities.
d’Oni
Enterprises believes that being a good corporate citizen is an important
part of its mission as a company, not only because it’s the right
thing to do, but because it makes us feel good to do it. We look for tie-in
activities with organizations, causes that we believe in, and feel close
to. Sometimes the ROI is a little bit harder to measure, but we know our
company will benefit from the positive public relations that come from
affiliating with well-respected organizations. We’re currently supporting
selected charities that are so diligently working on behalf of those affected
by the September 11 tragedies. Some of those who lost their lives may
have even been our customers, so it makes us feel good to know our company
can do something to help.
d’Oni’s
good corporate citizenship also extends to our industry colleagues. We
always try to provide assistance to other companies where we can, offering
our expertise and contacts to those who ask for our help. After all, we
might need to ask them for help someday.
Our
company likes to think that we’re not only putting good products
out into the marketplace - we’re putting positive energy out there,
too. And we’ve always found that caring about the world and being
kind to the people in it carries its own reward. Our business success
to date is proof of that.
Take
Naps
Like many of us, my specialty sauce company is not my only focus. I have
a wonderfully supportive employer who understands my dream and has helped
me work out a flexible schedule that gives me time to make that dream
reality. Some of you may have full-time jobs or children that also place
demands on your time. It is very easy to become overwhelmed, especially
when the unexpected happens like the events of September 11, which have
affected American businesses large and small in similar ways.
People in our industry are, for the most part, passionate, driven people.
We like challenges. We enjoy selling and the art of making the deal. We
work hard and when the time comes, we play hard, too. We’re high
achievers and sometimes, that can take a toll.
Sometimes we forget that we’re only human and that as humans, we
need to take care of ourselves. It’s easy to believe that every
free moment we have should be spent on the business at hand. But as the
business community continues to feel the effects of that sad day in September,
it’s never been more apparent to me that sometimes, things are just
out of our control. And it’s at those times that we have choices
to make.
Sure,
I could spend more hours at the phone making calls to try to make up for
the business I’ve lost because fourth quarter plans were suddenly
cancelled as American business watches to see what’s going to happen
next. But if I’ve made ten calls and everyone
is telling me the same thing, making ten more calls may not be the wisest
way for me to spend my time. I’ll probably get bummed out and it’s
hard to make a good impression on anyone when you’re feeling deflated.
That’s
when it’s time for all of us to do something else. Playing with
my new puppy, Chai, for a little while makes me happy and energizes me
to come back to the tasks at hand with a renewed spirit. I used to feel
guilty if I didn’t spend every free moment trying to build my company.
But then I remembered that corporate America pioneered the two-hour "business
lunch" as a way of breaking the monotony of a busy or stressful workday.
I've also learned to make choices in my self-imposed downtime; I don't
have the time to choose all that I would like. Instead, like everything,
I weigh options. In the same two-hour time frame that lunch takes, you
could go for a run, take a dance class, get a massage and facial or simply
watch a television. The bottom line is: I’ve learned that I’m
one of my company’s most valuable corporate assets, and certainly
one that should be nurtured and protected.
