Understanding the rationale
SHS Sales & Marketing (GB)
Farmlea House, 2 & 3 Oriel Villas
Oriel Road, Cheltenham
Gloucestershire GL50 1XN
Tel: 01242 570288
Fax: 01242 221119
E-mail: sales@shs-sales-mkting.co.uk
KEY personnel
Group chairman
Joe Sloan
Group chief executive
Geoff Salters
Group managing director
Michael Howard
Managing director (GB)
John Black
Sales director (GB)
Peter Butler
OnTrade director (GB)
Stephen Grove
Commercial manager (GB)
Marcus Freer
Key brands
Askeys, Caledonian Clear, Two Dogs , VR, WKD , Woody's , Woody's Cocktails , Woody's Ice
, Clausthaler, ConAgra, Douwe Egberts, Farmlea, Gatorade, Highland Spring, Lang Brothers, Merrydown, Langs Supreme Blended Whisky, Giengoyne Unpeated Single Malt, Merrydown Classic Cider, Merrydown Vintage Cider, Pulse White Cider, Shloer Original, Shloer 2go, Mitsukan, Primula ,Punjana Tea, Snapple/Whipper Snapple, Snack-a-Dip, Tayto
The next five years will be crucial to the development of brokerage in the UK, according to John Black, managing director (GB) at SHS.
"As trade becomes more competitive with margins squeezed, the major blue chip companies will have to look at ways of reducing their costs; 80% of their business normally comes from some 10 accounts and outsourcing the rest of their business to a broker will become key to future growth."
SHS is already positioning itself for the challenge and points to the success of its partnership with Highland Spring as an example of how brokerage can build a brand.
"It has achieved massive volume increases in the cash and carries, impulse and convenience sectors over the past five years," says Black, who believes the competitive nature of the marketplace will accelerate over the coming year leaving manufacturers with few options in terms of costs.
"Brokerage can play a vital role in the future as an efficient sales and marketing operation does not add cost, it adds value and services to a viable brand."
Black has restructured SHS's commercial department to work with each principal in order to implement their brand plan and give the sales team all the ammunition they need to maximise every opportunity in each account in all sectors.
"Once the product is listed, the support services click in, which keeps a brand on shelf and moves it quickly off shelf, which is vital for brand success."
Sales coverage of each trade sector includes marketing, brand plan coordination, advertising, public relations and promotions, and the whole gamut of purchase and order systems, forecasts and monitoring on behalf of clients.
Going for growth
From a small operation set up in 1975, SHS now has bases in Cheltenham, Dublin and Belfast with a turnover of £180 million.
Joe Sloan, SHS group chairman and this year's president of the European Sales and Marketing Association (ESMA), says: "SHS has evolved over the past 25 years from a simple distribution service to encompass the full range of sales and marketing functions that our principals and our own brands expect to find in a complex marketplace.
"Today, SHS successfully builds brands with multiples, has the highest coverage in C&Cs and specialises in working with the impulse and convenience sectors. In addition, it is the only sales and marketing company to offer full coverage of the ontrade and comprehensive coverage of the British Isles.
"Our aim is to build the best infrastructure in the country, and to invest in the best people in the industry, because all the technology in the world cannot replace the positive effect of good team work between SHS and our principals."
SHS Sales & Marketing (GB) increased sales in 1999 by 40% and is forecasting a further 20% increase in the year 2000.
Black believes that specialisation in each market sector, brand partnerships and 100% service levels are what sets the company apart.
"Since the SHS Group are brand owners as well as brokers it means that multiples will always be an important part of our business," he says.
"But as they move to reduce the number of suppliers, it is becoming more and more difficult for small manufacturers (£25 million and below) and overseas manufacturers to be listed. This is where a broker can really add value through consolidation."
Know your customer
SHS also specialises in the convenience and impulse areas which require a special infrastructure to penetrate every level of the sector, says Black.
In addition, it services over 500 cash and carry outlets every month, tied to regular call frequencies. "Portfolio is the key to success in this sector. We consolidate 10 or more principals' ranges with one invoice and one delivery. It's also important to understand how C&Cs work. SHS prepares carefully targeted brand plans that appeal to the sector and its customers. These include smaller pack sizes, mixed cases, tailored promotional activity and category guidance. Take WKD (Flavoured Alcoholic Beverages) for example. By using just such an approach it is now brand leader in most major C&Cs groups, ahead of the national brand leaders."
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