Expert: Eric Hofer - 4/29/2010

Question
QUESTION: Hi,

I am currently in Lima Peru looking to intoduce a specific brand of achohol into the US.



thanks.

ANSWER: Luis, there's no direct question here.  Should I infer that you're asking how to go about finding a company to take up your product and distribute it in the US?

If so, please give me an idea of:-
- type of alcohol (is it a liquor, beer, apertif, etc.)
- target market
- comparative products locally and internationally
- presence in its home market; other markets
- level of marketing support available from the manufacturer
- pricing point
- shelf life, special handling, etc.

Is there some sort of issue such that you are bringing up being in Lima?  Export issues to the US?  Transport?  

Also, give me an idea of your background and what you can bring to the table (both personally and with others that you'd work).

Awaiting an update,

Eric

---------- FOLLOW-UP ----------

QUESTION: Ok,

I am working with an Import/Export company In NY/Lima,  After talking with a producer of Pisco (Peruvian liquor distilled from grapes.) Together we would both like to know the proper channels in order to get the product on to the store shelves.

I had in mind to contact distributers in the Tri-State area with a description of the product and a sample, something along those lines.


Hope this helps.

Your feedback is greatly  appreciated.

Luis

ANSWER: Number 1, change the name of the company.  You're not going to get very far with that name in America.

Effectively either you have to sell your idea to a company in the US that will invest in the brand, and/or you must be willing to underwrite and promote the brand yourself.  You're going to be expected to come up with a marketing story that develops the brand.  In the US, the shelves are crowded with competitive product; what will make your product stand out?

By all means, you should see out distributors in a target market.  Could you connect with the ex-pat community?  Work through a trade delegation to the US?  Are there peruvian entities that might see this as a chance to export local traditions and culture.

Generally, companies are going to want a marketing plan pre-built.  Is there something that you can leverage from Peru?  Would it translate to the US?

Were it me, I'd put together a campaign and walk around the distributors in New York looking for a bite.  You're going to be expected to provide a budget, fund promos, pay for shelves, etc.  You'll need to run a test, trial marketing materials, bottling, artwork, etc.  Do some sampling and identify whether you can reach the right market.  You'll also need to determine a price point that you can work with and that gives your distributor sufficient incentive to promote your brand.

Should you start to look at market the product yourselves, take a look at www.salessuite.net; as they offer a low cost sales-to-cash system and they also offer brand building and coaching.

---------- FOLLOW-UP ----------

QUESTION: The product already has a name, and currently is on shelves in Peru.

I was thinking more like a wholesale directlty to distributers in the NY area. Is there a way with out going from store to store, distributor to distributer by foot?

Our fuction in this transaction is finding buyers and handling the shipping issues.

thanks again.

Answer
If it were me, I'd select a single distributor with reasonable presence offering a longer term deal should s/he meet certain sales parameters.  The distributor is going to have to work the brand somewhat, and there's no value if you're giving it to several.

As to recommending somebody, that's not something I can do.  I'm not based in that market and even so, your product is specialist so what and who works for your product could be difficult to determine.  

You're going to have to visit the local market and identify the distributors.  Walk through the outlets that match those that reach your customer profile; and determine who they buy from, who stacks the shelves well, etc.  That should identify 3 or 4 distribs that would work for you. Yes, it requires some investment, but at the end of the day, free lunches are rare.

Eric