The Wooster Brush Traditional Sales and Distribution Methods to Be Used

The Wooster Brush Company basically sells its products through a national network of distributors and buying groups. It does have some direct accounts; Lowes and Home Depot, for example, are direct accounts. Most of its sales, however, go through distributors. These are typically traditional stocking distributors that take orders and then make shipments to the retailers. Very few rack jobbers are used. The Jumbo-Koter product line was to use this standard method of distribution.

Jumbo-Koter was to be sold into national distribution by the Wooster Brush Company sales force and network of service personnel. The company maintains its own staff to help retailers set stores. When a new account is established, this detail force works with the distributor and retailer to set up Woosters product lines, then trains them on how to communicate the benefits of the products to customers. This sales and servicing force is a competitive advantage for the Wooster Brush Company.

The Pricing Strategy Was to Meet the Low-Priced Imports

The Jumbo-Koter product line was set up with a different price point for each of the different products in the line. The pricing strategy was to hit the price points of the low-priced imported competition. Wooster Brush management did not feel that the company had to match competitors prices exactly because Jumbo-Koter was a different type of product with unique advantages, such as easier-turning rollers. The Jumbo-Koter rollers were also longer and larger in diameter. Management felt that if Jumbo-Koters prices were within a few pennies of those of the low-priced imports, it would have the advantage. Jumbo-Koter mini-rollers were launched at lower prices than domestic products, including other Wooster Brush mini-rollers.

When the program was launched, a 10 percent introductory allowance was offered on the entire line. The line was also launched with incentives to use a display with the Jumbo-Koter line. These discounts were to be offered at pro shows and at distributor shows. A consumer discount was also offered upon introduction of the program. A premium pack that included a frame and six roller covers in a box was to be sold during the product launch. It was to be put on a counter or on the rack. The consumer bought the six covers and got the frame free. Getting the frame into customers hands without their having to make a perceived investment was felt to be crucial, because they were likely to hang onto that frame for the next five years and keep on buying replacement covers.

A pricing contingency plan was set up in case the competition decided to lower its prices in response to this program. Wooster Brush management decided that it would not reduce the Jumbo-Koter prices if that were to happen. Management felt that by the time the competition was able to implement a price reduction, Wooster Brush would have established the Jumbo-Koter line as a viable one in the market. It felt that most customers would continue to purchase Jumbo-Koter products at the initially established price.

In-Store Displays Were Used to Attract Consumer Attention

It was felt that a key to success in getting the full Jumbo-Koter product line into retail stores was an in-store display program. The cornerstone of this program was a two- foot freestanding merchandiser that included the full Jumbo-Koter product line. Wooster Brush would give the rack free to retailers. Management felt that this would be a good way to make sure that the whole product line was displayed together. Often stores will fragment product lines and scatter the different products in the line around the store. The rack encourages stores to keep all the products in the line together. Also, once retailers get the rack in, they will tend to keep the whole product line even if some items sell better than others.

Retailers were given three display options. First, they could use the freestanding rack, which typically goes at the end of an aisle. Second, they could decide not to use the freestanding display, but take the full contents of the Jumbo-Koter rack and display them on pegboard. In this case, they would be given a detailed plan-o-gram on how the display was to be set up. All of the necessary hardware and signage would be included with the in-line display. Wooster Brush would even send out people to help retailers set up the display. The third option was for the retailer to simply buy Jumbo-Koter products without the freestanding or in-line display.

A piece of literature for the consumer was included with either display option. This was an 81/2- by 11-inch sheet of paper folded in half that described the complete program. It told the consumer what each of the different mini-rollers should be used for. It also talked about the types of paint that each of these covers was best suited for. This literature was also to be passed out at trade shows at the time the display options were being demonstrated.

The display program was primarily intended for paint and hardware stores. It was felt to be unlikely that Wooster Brush would get all twenty-six Jumbo-Koter products into a mass merchandiser such as Home Depot, as there typically is not room in these stores for the full program. It was felt that in these stores, perhaps a dozen products would be accepted into distribution upon introduction, and these products would be displayed in the stores paint applicator section. If the stores were satisfied with the initial sales of these products, they might add a few additional items.

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The Wooster Brush Traditional Sales and Distribution Methods to Be Used