New product rollout strategy

[<H2GO>]

Hello all! I am having a difficult time projecting a rollout strategy with limited resources. I was just wondering if any one has some gut instinct or typical expectations I should plan on for entering the market with a new product. I am starting a "grass-roots" strategy but would like to grow into tier 2 cities by the end of year 1. What is the best projection (best/average/worst) I can use for a "rule of thumb" after I have determined my target market specifics? In other words is it predictable to empty 100,000 single units or 1,000,000 units in the first year with grass roots marketing and lots of hours by myself and my team of 5? Also, we have substantial funding and want to give away as much product as possible, does anyone have a recommendation for promos (quantities and channels......end users or industry customers?) Thanks for any leads. I can definitely use some third party advice because it is scary to put 100% faith into my projections?

[ResQ Rob]

What kind of drink are you?

[<i d bevcomp>]

We are a "Coffee" product that is actually coffee rather than 80% cream and a shot of coffee. We will be sold on a grass roots strategy through the first year, attempting to enter local c-stores, grocers and outdoor shops. We really think we are on to something if we get the image right and our test marketing has been promising. All in all, I am trying to project a volume order to give investors more concrete numbers. The first six months we will sell only in the front-range of colorado and along the I-70 corridor, then move to the west coast? We really want to learn the most predictable calculations historically. Thanks for the reply and if you have any suggestions or leads we can definitely use them!

[target]

I work for an agency located in Minneapolis, we just completed a sucessful summer roll-out strategy for a new sports and energy drink in Minneapolis, St. Louis and Des Moines. We have some great ideas on how to utilize value added radio to get the product on the shelf and to the streets. We obtained 80% distribution in Minneapolis becuse of our strategy. A few questions, what type of beverage is it, have you decided areas of growth? Any interest in hearing our story in depth?

[<id beverage group>]

i would be interest in hearing how you projected your numbers. what assumptions you used and how they filtered out in the end. i am scheduled to present my business model to investors in two weeks and i am still looking for comparable information to back up my assumptions. Currently i have my own formula but desperately want to compare it to someone else's. also, if you have an successful ideas to promote the brand with minimal resources and are willing to share the knowledge, it is greatly welcomed. we are working with a marketing firm that specializes in brand development and they have shed many ideas but all others are welcome. (our product is the coffee beverage mentioned above.) Thanks for the reply.

[Inko]

How can you project with any certainty? Is your drink unique? If so, then you have nothing to project against.

If your product is competitive with others, then you still can't accurately project because you don't have any distribution yet (the X factor).

Any investor worth their salt will know this and then go on their gut (Taste, look, marketing plan, "aha" factor) of your product and take it from there.

My point is, don't rely on projections because investor's don't. If you must, project very modestly, say 100,000 cases in the first year, then surprise.

Have a marketing strategy, a product that tastes good, catch a few breaks and take it to em.

I am also a startup. However, I have no cash to waste on marketing companies and industry advisors. I'm just goin with my gut and relying on the intelligence of my consumer (read: no b.s. claims from my company). It's working.
Best,
Inko (The white tea guy)

[<Jon>]

Costco has a Roadshow/Special Event program that is wonderful to test new items. (My Department) Here is a cut and paste from a trade show letter we had at the last show we attended: Jon
-------------------------------------------------
ROADSHOWS
SAN DIEGO REGIONAL FOOD & SUNDRIES

The Costco Wholesale San Diego Regional Buying Office now has a dedicated buyer exclusively for Roadshows. Roadshows allow the flexibility to find and test new products with little commitment. Gain instant member feedback for the purpose of research and development. Increased sales due to limited show dates and no special packaging, as well as, Vendor brand recognition.

· Create Member Awareness
· Boost In Line Items
· Immediate Market Initiation

Roadshows travel from warehouse to warehouse spending anywhere from 4-10 days at a given location with the “trade show” look. The vendor is responsible for shipping all merchandise in and out, show set up / breakdown. Costco pays daily according to terms on a consignment basis. Our automated Roadshow system sends a daily fax of prior days sales, auto receives and is auto paid by accounts payable. No need to invoice.

ROADSHOW CONTACTS

Tony Rizzo – Buyer Jon Perz – Assistant
Phone: 858-490-5446 Phone: 858-490-5615
Fax: 858-490-5508 Fax: 858-490-5508
Email trizzo@costco.com Email jperz@costco.com

Costco Wholesale San Diego Regional Office–Food & Sundries
4455 Morena Blvd. San Diego, Calif. 92117

[boilermaker]

Roadshows are a great way to go with new products. Sam's Club does them, too.

I've done a few, so contact me direct if you have questions.

[Nickens]

Originally posted by &lt;H2GO&gt;:
Hello all! I am having a difficult time projecting a rollout strategy with limited resources. I was just wondering if any one has some gut instinct or typical expectations I should plan on for entering the market with a new product. I am starting a "grass-roots" strategy but would like to grow into tier 2 cities by the end of year 1. What is the best projection (best/average/worst) I can use for a "rule of thumb" after I have determined my target market specifics? In other words is it predictable to empty 100,000 single units or 1,000,000 units in the first year with grass roots marketing and lots of hours by myself and my team of 5? Also, we have substantial funding and want to give away as much product as possible, does anyone have a recommendation for promos (quantities and channels......end users or industry customers?) Thanks for any leads. I can definitely use some third party advice because it is scary to put 100% faith into my projections?

Hi there, my name is Lance Nickens and I am with a multi-lingual broadcast ad agency. We have just become affiliated with BevNET and noticed your response on the message board. Check out the Featured Story "Succeeding with Advertising" on the BevNET site. It might give you some insight and could be very helpful. We also have a banner ad on the BevNET's home page.

We are currently searching for a beverage company that we can help brand and ad drive sales. I encourage you to review our exclusive BevNET offer for new accounts.

Thanks for your time.

Best Wishes,

Lance Nickens
Vice President
The Brunson Agency
www.tvandradiospots.com/offer.htm

[ 03-25-2003, 01:00 PM: Message edited by: Lance Nickens ]