|
|
|
|
|
|
|
SUCCESS STORY: PETER THOMAS ROTH LABS, LLC
Company Profile: Peter Thomas Roth Labs, LLC is one of the pioneers of the clinical skin care category. Founded in 1993 by Peter Thomas Roth and June Jacobs, the company offers two product lines:
1. Peter Thomas Roth Clinical Skin Care which is sold in specialty retail and spa accounts
2. June Jacobs Spa Collection which is available only in leading resorts and spas
Situation: The company growth was fueled by increasing the number of doors its products were sold in. By 2005, it had maxed out its distribution options. As a result, the founders were faced with sales and profit declines for the first time since the company’s inception.
“Since we started, we always had someone who was willing to write us a check [to open business],” said co-founder and CEO, Peter Roth. “In 2005, this dried up.”
Given this situation, the company needed to switch from its organic evolution to a more planned model. They required a growth strategy and the ability to quickly implement this plan in order to increase productivity in existing distribution channels and protect profitability.
Solution: The Pao Principle created, developed and worked with the company’s internal team to provide a solution that would immediately reverse the company’s declining sales and profitability and put them on a path for double-digit growth:
| • | Clarified and refined brand strategies and positioning for both product lines to insure their point of difference in a highly competitive market. |
| • | Developed and led implementation for first ever marketing/promotional brand calendars, innovation plan, and sales and training materials. |
| • | Trained and worked with existing team members and identified and hired new team members to fill necessary gaps to insure flawless implementation and continued execution of the strategies needed to bring the company to the next level. |
| • | Identified, initiated, and led their Asian distributor strategy which included leveraging existing accounts and identifying new opportunities |
Results: After one month, the Pao Principle was able to reverse the sales and profitability declines.
Importantly, the Pao Principle was able to develop and implement a sales and marketing plan that firmly established the company on a path to double its sales by the end of 2006. The company has consistently met or exceeded its sales and profitability targets over the past five months.
“The Pao Principle is like a Hollywood movie producer,” said Roth. “They develop and produce the first movie. It becomes a hit. Two years later, they come back for the sequel. We were extremely pleased with Patti’s contributions and look forward to working with her when our company reaches the next growth phase.”
Copyright 2009