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COMPANY PROFILE 2013

COMPANY PROFILE 2013. WHO WE ARE.

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COMPANY PROFILE 2013

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  1. COMPANY PROFILE 2013

  2. WHO WE ARE • Brand Developers Ltd and Brand Developers Aust Pty Ltd have been operating for 10 years and 8 years respectively. We predominantly focus on developing brands, with launch and build through infomercials and DRTV, then multi-channel growth through retail distribution. • During this period we have successfully launched several US Brands, i.e. Shark, AhhBra, Instyler, iRoomba Robotic Vacuums. • We have also had significant success developing several of our own in-house brands, the largest being Thin Lizzy, a range of colour cosmetics and shapewear, Stonedine cookware and The Renovator, a range of power tools.

  3. STRUCTURE • At Brand Developers we have a staff of 630 and are completely vertically integrated business unit Reception Call Centre • We have staff of 280 in our call centre 24/7, an in-house 30 seat customer service team, and 30 collection department agents.

  4. STRUCTURE • We operate in-house fulfilment and distribution warehouses in Port Melbourne, Australia and Auckland, New Zealand. • All distribution centres are 100% owned by Brand Developers, shipping orders in excess 9000 per week in Australia and 4500 per week in NZ. Port Melbourne, Australia 13,000 m² warehouse 2,880 m² office Auckland, New Zealand 7,450 m² warehouse 3,300 m² office

  5. MARKETING SUPPORT • Brand Developers have a complete in house design and development department and a TV commercial production department. • We have post production department with 7 professional editing suitesand 2 sound studios. • Our animation department has 5 artists creating and developing animated content. • Our Design Department has 4 graphic design artists that handle retail packaging, art and design, new brand and product promotional literature, retail product displays as well as new product design and development. • Packaging is designed and developed specifically for the needs and requirements of our local markets.

  6. RETAIL • Brand Developers have initiated and created a wholesale division focused on developing retail sales. • This area has grown rapidly and has positioned BDL in over 4900 store fronts, including 2200 pharmacy outlets with the balance being general merchandise and department stores. • Our retail accounts are ordering a full range of brands with our products being stocked in 10 categories across department stores. • We have placed over 3000 In Store 19” video screens so far and have a realistic goal of getting 5000 screens positioned in stores across Australia and New Zealand during the next 2 years.

  7. RETAIL CONTINUED • The retail division of our business is growing rapidly and sustainably. • Brand Developers has developed strong trading relationships with the most dominant retailers in both Australia and New Zealand. Our reputation for introducing fast moving, high revenue sought after products has preceded us. We strive for and deliver success to our trading partners. We have created a well-structured, symbiotic relationship between successful DRTV product launches and the traditional retail environment. • The BDL retail model is based on providing a consumer based marketing link between the products offered in store and the awareness created through a strong DRTV presence. • Retailers are provided with well-designed highly visible POS product displays. The displays are furnished with TV monitors and strong promotional graphics.

  8. RETAIL CONTINUED • Cut down versions of our DRTV campaign advertisements run on the TV monitors provided. These are triggered by motion sensors so instantly target potential consumers. These in store advertisements deliver recognition of product and a link between what has been viewed previously on television and the product displayed. This re-affirms the message and enhances strength of product and brand. • At Brand Developers we structure our business through strong channel management. We align with one retail partner in each identified predominant retail channel. This alignment is strategic and provides both margin and price point protection for all parties.

  9. RETAIL CONTINUED • We focus first on developing the brand position, visibility and presence on TV through infomercials. Once proven and established through DRTV we then proceed with initiating retail distribution through a planned roll out and coordinated launch. • After launch we focus on getting our brands into the store planograms. • Brand Developers manages a professional team of In Store demonstrators and product champions that rotate through our retail partners outlets providing training whilst demonstrating, promoting and supporting our products. Retail Floor Display Examples

  10. RETAIL CONTINUED Supplier of the Year 2012 Brand Developers Australia Category: Leisure products After only 15 months of supplying Big W, Australia, BDA was awarded Supplier of the Year: Leisure Products. Note: BDA was also mentioned as a Finalist in the Apparel division.

  11. A BRAND IS BORN! IN 9 MONTHS • Phase 1 – trial a high quality 30 minute infomercial launched 12 months ago. • Spend at this Phase - $50,000 per week. • Phase 2 – distribute via DRTV and run advertorial,120/180 second short form. • Spend at this phase - $100,000 per week. • Phase 3 – distribute via retail and run 30 second retail campaign. • Spend at Phase 3 - $110,000 per week. • Phase 4 – Launch line extensions • From $50,000 to $270,000 media spend per week in 12 months – A Brand is Born! • Within 12 months sales exceed 120,000 units. • Annual brand advertising spend is now forecast at $18,478,000 • The Shark brand has previously been marketed by 3 different companies in Australasia, • Brand Developers has since turned it around to become a house-hold brand name. With various line extensions including a full steam range. • Shark Navigator is now the No.#1 selling vacuum in Australia

  12. DRTV • Our Call Centre specializes in Soft Offers and Free Trials we have worked, coordinated and honed this approach successfully for the last 10 years. • Our success with this sales delivery is exceptional and this is precisely why we do not have transactional websites for many of our products. • We have championed and maintained the position of always preferring to talk to our clients. • Our closing sale success rates and retention, approximately 60% for both, are much higher than can be achieved through ecommerce.

  13. DRTV • We build and manage static websites for certain products. This provides an online presence, acting as a point of contact and reference that directs customers back to the Call Centre. • Brand Developers focus and specialise in high quality, higher dollar value products currently up to as much as $3,000 per product. • At any one point in time, Brand Developers carry as much as $US28,000,000 in time planned payments, internally with our customers.

  14. MEDIA SUPPORT We currently run - • 28.30 min Infomercials • 4 min advertorials • 5min, 3 min and 2 min spots • Plus 30sec support advertising for retail Advertising is spread across all major networks within Australia and New Zealand

  15. MEDIA SUPPORT We now have complete and majority control over inventory across the following channels: Capital Cities Australia 24 Hours a day 100% control over all inventory Capital Cities Australia 24 hours a day 100 % control over all inventory Regional Australia 24 hours a day 100 % control over all inventory Regional Australia 24 hours a day 100 % control over all inventory Regional Australia 24 hours a day 100 % control over all inventory National Australia 340 minutes of airtime per day 66% control over all infomercial inventory from 2pm to 10.30pm National Australia 530 minutes of airtime per day 55% control over all infomercial inventory from 8am to 12pm Regional Australia 350 minutes of airtime per day 42% control over all infomercial inventory from 6am to 12pm

  16. MEDIA SUPPORT Australia – average weekly media coverage Average spend of $A1.5mil per week across Australian Media

  17. MEDIA SUPPORT New Zealand – average weekly media coverage media coverage • media coverage Average spend of $A311k per week across NZ Media

  18. MEDIA SUPPORT • We currently run 7482mins(Australia) and 1951 mins(NZ) of commercials - everyday. • Our current annual media spend is in excess of $US96mil. • The majority of our advertising spend is purchased through long term 1-2 years contracts with media providers • Our annual sales revenues are in excess of $US250mil with a sales split of 80% Australia and 20% New Zealand.

  19. CONTACTS Chris Dickins General Manager Australia chrisd@branddevelopers.com.au Darryl Jhinku Chief Financial Officer darrylj@branddevelopers.co.nz Brendan Catchpole Partner PricewaterhouseCoopers NZ brendan.catchpole@nz.pwc.com Paul Meier CEO paulm@branddevelopers.co.nz DDI +64 9 306 8200 Mobile +64 21 943999 Private Bag 93204 Parnell, Auckland, 1151 New Zealand

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