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MASTER CLASS case study: retail Case study: Retail How Piako Gourmet Yoghurt grew from a market stand to a partnership with Fonterra in 12 months AT PIAKO GOURMET YOGHURT we have been hugely lucky with our growth and expansion. We have experienced amazing growth, and in 2011and were named New Zealand's second fastest growing manufacturing business (Deloitte Fast 50). We can now be found on most supermarket shelves in New Zealand, and increasingly more in Asia, the United Kingdom and the United States to name a few, in fact New Zealand now accounts for 10 percent of our sales and we expect that percentage to decrease over the coming 18-24 months. Not bad for a little brand that started in mum's kitchen with orders being hand-piped into cups and dropped down to stores in the back of our car. However, the beauty of starting small and growing, as we have, is that the key principles that apply at a one-or-two-store level generally apply when also talking to companies with multiple or even hundreds of stores. When we started out a typical weekend would involve getting up at 4.00 a.m. to get a good spot in the queue for the Takapuna markets. Then from about 6.30 a.m. or so it was sell, sell, sell. We were really lucky in that the product sold like mad. That momentum and a blind fanatical belief in our product have been carried through to this day, and continues to drive our business. If we were having a good day we could be sold out by 8.30 a.m. and we were then trapped at the market until we could get our car out at midday. It was great from our point of view, but it annoyed the other stallholders to see us parked up having a nap – or worse counting the cash we had pulled in! The next stage of the day was to spend the afternoon doing tastings at one of our first retailers. Being at those few stores and getting product into consumers' mouths was, and still is, the best way to spend our marketing dollar. At that stage we didn't actually have a marketing dollar so it was also the most cost- efficient way. So that was how we started – at the coal face, approaching strategic retailers and avoiding the big players. That way, when the big players did approach us we were in a position where moving in that direction 60 | www.hermagazine.co.nz Key principals we have found that helped us grow? You are your best sales person – It would great to have 100 sales reps (or even 1!) on the road, but they are never going to have the passion and drive for the business that you have, so if it's a key retailer it should be you in that meeting. Know your numbers – for whatever industry it pertains to, rate of sales, margin, etc., for stores you are already in. If you want to convince someone to give you space in a place they have to pay rent in and get a living out of, give them an indication of the return they will get on that space. Stores exist to move product. Give them confidence it will. Contrary to popular belief 'no' does not mean 'no' in sales – There are plenty of sales studies that show the average sale is made after the prospect says 'no' six times. So plan to go to each store at least six times. If you get in on the first try – great – but the law of averages says one of the stores you target next will take you 11 visits now. Don't get despondent about it, just trust yourself and your product and stick to the process. Once you are in the store this is when the hard work really begins – It's now up to you and your retail partner to make it work for the both of you. Whatever the industry, it's about getting product off the shelf, not on to it. So work hard and always communicate with your retailers. was not vital. However, as with every FMCG brand and product we eventually pushed that as far as we could, and to keep growing it did become all about distribution. We now have a partnership with Fonterra where they manage the supermarket relationship for us and our brand will continue to grow – it will be slower as dealing with larger organisations takes a little time, however, it will also be done right. We are not claiming to be experts in this by any standard. We have made, and continue to make mistakes every day. Luckily New Zealand is probably the best place in the world to start a business. Kiwis are a pretty forgiving bunch and will always work with some one making a genuine effort. So good luck, work hard and kiss goodbye to your weekends. Kathryn Alward and Christine Jacka www.piakoyoghurt.co.nz They are actually pretty simple!