NIGHTWATCH DECUPLES TURNOVER 2019
Start-up Nightwatch is a 100% natural energy drink made from guayusa, a super herb from the Ecuadorian Amazon. The five founders have in depth knowledge on product development, production and logistics, but no knowledge or experience in the field of marketing and sales. One person is available for marketing and sales during 30% of the working hours. The 2018 volume comes from festivals and trendy hotel and catering businesses in Amsterdam. It also comes from the Swiss country agent. At this point, the Swiss country agent is only active at Point Of Purchase 12 (Visits). There has also been no distribution on the grey market (for example, gas stations). Consumers and trade receive offers on an ad hoc basis. No registrations of consumers or trade are made. The effects of offers and the actions at various Points Of Purchase are also not registered.
In 2018, the brand has activated 4 out of the 20 Points Of Purchase, using up to an average of 23% of the potential. The total marketing and sales activation was 5% (90 out of 2000) in 2018.
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Of the Points Of Purchase which have been activated, POP 12 (Visits) represents 90% of the new business purchases, while POP 11 (Trade Fairs) represents the remaining 10%.
CHALLENGE FOR 2019
To increase the turnover in 2019, Nightwatch strives to:
- Increase the Nightwatch distribution in the hotel and catering business, supermarkets and the grey market.
- Gain international distribution in the hotel and catering business, food retail and the grey market. They will achieve this by appointing country agents and executing the global marketing sales strategy with the use of the FaceValue application.
STRATEGY FOR 2019
To achieve an increase in turnover in 2019, Nightwatch has devised a strategy. They have agreed to describe and inject the Nightwatch Brand (including pictures in the Brains of the FaceValue application) for a global marketing sales rollout. They will do this by:
- Activating the Nightwatch Brand at all 20 Points Of Purchase with the use of the FaceValue application.
- Rollout the global marketing sales execution in all countries (with the use of country agents) using a structured and standardized way, 24/7 transparency and accessibility to Nightwatch from anywhere in the world, and by reapplying the best practices provided by Nightwatch international.
- Continuing AB testing to generate the best practices of both Points Of Purchase and promotions, thereby increasing the effectiveness of marketing sales execution of the Points Of Purchase.
- Executing a 24/7 cost vs. revenue analysis of the execution of Points Of Purchase and promotions, in order to continuously increase their effectiveness. This is to gain turnover growth with limited resources.
- Making marketing sales (overhead) costs available and accessible 24/7. This is to keep these costs to a bare minimum.
- Increasing the number of target audiences from 0 in 2018, to 5000 in 2019.
- Activating 14 Points Of Purchase, compared to 4 in 2018, by using an average of 41% of the potential, compared to 23% in 2018, leading to an activation score of 29% (575 out of 2000), compared to 5% in 2018.
| Pop's | 2019 |
| 1. Social Media | 40% |
| 2. Ezine | 70% |
| 3. Online Market Research | 0% |
| 4. Online Event | 0% |
| 5. Newsletters | 30% |
| 6. Website | 75% |
| 7. Online Advertising | 40% |
| 8. Customer Survey | 0% |
| 9. Tele Event | 50% |
| 10. Customer Service | 50% |
| 11. Trade Fairs | 50% |
| 12. Visits | 50% |
| 13. In House Events | 20% |
| 14. Training | 0% |
| 15. Branch Organizations | 5% |
| 16. Pop Up store | 20% |
| 17. Market Place | 0% |
| 18. Credit Management | 30% |
| 19. Traditional House Syle | 10% |
| 20. PR/ Blog/ White Paper | 40% |
| Total | 580 |
RESULTS 2019 TO DATE
So far, Nightwatch has achieved multiple results:
- DECUPLELATION OF THE TURNOVER IN 2019.
- Point Of Purchase 12 (Visits) is still leading the total number of purchases.
- To date, the number of target audiences has increased to from 900 in 2018 to 6200 in 2019.
- Nightwatch is now activated at five Points Of Purchase.
- The distribution of Nightwatch in the hotel and catering business has increased to distribution at the Kweker, Sligro and Hanos.
- The first two distribution points in the grey market have now been realized. Starting in June 2019, Nightwatch will now be sold at gas stations.
- The increase in distribution at the hotel and catering business, food retailers and the grey market is currently in full development.
- Standard country agency contract, including the requirement to roll out the global marketing sale plan by using the FaceValue application, has led to contracting country agents in Switzerland, Sweden, Spain and Ukraine.
- The FaceValue application by country agents starts per June 2019.
- Standardized execution of events and trade fairs are a fact.
EXPECTATIONS FOR THE REMAINDER OF 2019
For the remainder of 2019, Nightwatch expect to:
- Increase the speed of distributions which have been built up in the Netherlands.
- Increase the speed of Nightwatch’s global roll out by appointing more country agents.
- Increase Nightwatch’s consumption through increased and better availability at all Points Of Purchase.
- Accelerate the increase in turnover by activating Points Of Purchase and meeting the strategy objectives for 2019. In 2019 to date, strategies 1 and 7 have been met and are reflected in the results. Preparations for the other strategies have been completed and the results of their activation will be reflected in the results of the second half of 2019.
EXPECTATIONS FOR 2020
For 2020, Nightwatch expects a duplication of the turnover of 2019, driven by the effect of a full year of Point Of Purchase strategy in 2019, and an increased activation of the Points Of Purchase in 2020. This is all fostered by the FaceValue application.
