Distributor Dialog – Published in APPMA Advisor
March/April 2003

Award Winning Secrets to Successful Distributor Relations

Everyone loves recognition for a job well done. From the gold star on a first grader’s homework paper to the Lombardi Trophy presented to the winner of the Super Bowl, we all strive for acknowledgement that our hard work and determination have created something special. Pet product manufacturers are no exception, and PIDA has been recognizing the best of them for nearly 35 years.

The PIDA awards program was created as a way for distributors to recognize suppliers who were successful at developing innovative new products, creative point of purchase displays and attractive packaging. Each year, PIDA member distributors select the best new products in three categories — aquarium, dog & cat, and bird, small animal and reptile. The best new point of purchase display is also recognized.

The awards are presented each January during the association’s annual management conference. Award winners are displayed in the Product Premiere New Product Area at the PETS Trade Show in March.

PIDA also presents a very special award each year to one manufacturer that stands above the rest in its dealings with distributors. The Manufacturer’s Wholesale Policy Award recognizes the supplier that excels at:

• Facilitating distributor handling of products by using quality packaging
• Order processing and shipping
• Providing fair allowances and terms
• Offering cooperative, promotional and advertising support
• Providing incentive programs
• Being sensitive to the wholesaler-distributor’s position in the marketplace

The 2002 Manufacturer’s Wholesale Policy Award was presented to Pets International, Ltd. of Elk Grove Village, IL. Robert Krause, president of Pets International, explains his company’s philosophy:

“It is often said that nothing happens in the pet industry until a pet is sold. This is particularly true with small animals, reptiles, birds and fish. The independent retailer is an essential part of this industry for that very reason, and strong independent retailers need strong distributors to support them. At Pets International, we do everything we can to support our distributor partners and their retail customers because we know that our success is completely dependent on their success.”

Creating a Brand
Even within the pet industry, many people may not immediately recognize the Pets International name. But mention Super Pet, and the leading brand of products for small animals is instantly recognized. Focusing on the small animal category has been a winning strategy for the company, but there is more than niche marketing behind their success.

According to Krause, much of his firm’s success is rooted in the company’s concern for and understanding of independent pet retailers. Krause owned a chain of pet stores in the Chicago area before purchasing Pets International in 1985, and many of his key personnel started their careers in pet retailing as well. “We don’t let the manufacturing process drive product development,” he explained. “Just because we have the technology to do injection molding or wire fabrication, it’s still the pet owner’s – and the pet’s – needs that determine the materials and designs that go into all of our products.”

Super Pet’s 7 Keys to Distributor Satisfaction
When asked what his company has done to be named the manufacturer that distributors cite as their favorite business partner, Krause lists seven key elements:

1. Fill Rate – “We have a very, very efficient order fulfillment system that gives us fast turnaround on orders. Customers are sometimes surprised if they place an order in the morning and call to make a change later in the day, that it has already been packed and shipped.”
2. Product Quality – The company employs as many as twelve people on its research and development staff. But the real product development stars are the more than 100 small animals that inhabit the Super Pet Pet Room. These furry forecasters determine the ultimate design of every Pets International product. "We study the animals’ behavior, develop prototypes and observe the pets as they play.”
3. Packaging – “A small animal is often a child’s first pet, so our packaging is bright and designed to appeal to moms shopping with their kids.”
4. Sales People – “Our sales people are well trained, and often have prior experience in the pet industry. We don’t send anyone out into the field until they are thoroughly trained in product knowledge and understand the pet industry.”
5. Distributor Open House and Trade Show Support – “We work very hard at distributor open houses and industry trade shows to help our distributors make sales to their customers, and we never, never sell directly to a distributor’s customers.”
6. Sampling Program – “We send new product samples and marketing materials directly to our distributors’ sales people. This is coordinated with product shipment to the distributor so that orders can be fulfilled quickly.”
7. Fair Pricing – “The consumer price for a product is part of the product development process. We conduct focus groups and other consumer research so that we know early on what a product’s price point needs to be to sell. If we can’t deliver the product to the consumer at hat price, it doesn’t go into production.”

Distributors clearly agree that Pets International goes above and beyond in its efforts to grow sales for its trading partners. Roger Johannigman, Loveland Pet Products, Mason, Ohio, was emphatic in his praise of the company’s efforts. “Their focus on the small animal niche has really helped build a category where there weren’t a lot of sales before,” noted Johannigman. “Their products are really good and very creative. Their service is excellent, very reliable with on-time shipments and fill rates. And their sales reps are very good at working with our sales people in calling on accounts, answering product questions and generating sales.”

Want to be in the running for next year’s Manufacturer’s Wholesale Policy Award? Follow Pets International’s lead and you’re sure to enhance your standing with your distributor trading partners.

Have a question on distributor relations that you would like to have addressed in a future column? E-mail questions or comments on something you’ve read in this column to Steve King at steve@ksgroup.org