Watkins Multi-Channel Strategy

Watkins and Change

They'll both be around a long time!

Change is Good

Watkins has a long and storied history, beginning back in 1868. As any company that has survived through the cultural and technological changes of almost a century and a half, many, many adjustments have had to be made over those years.

Yes, Watkins will be here for decades ahead, and it is beneficial for changes to continue all along the way. That's the only way for Watkins to keep up with the times while also honoring the company's proud heritage. If there were no changes, the company would stagnate and die.

When we think about Watkins today, with natural-based products and an old-time look to the labels, it's easy to imagine that the company and products have been exactly the same since the beginning. But let's take a look at the changes that have occurred during the past 150 years, and it becomes easier to understand that we should not be afraid of changes that Watkins makes today or that may occur in the future.

Watkins History Includes Constant Changes

While a few products have remained for 100 years, the rest of the line has constantly changed and transformed. Watkins has strived to always be on the cutting edge of consumer trends, and the focus on natural products in recent years has been spot on. As consultants, we can rest assured that Watkins will continue to strive to be at the forefront of product technology.

 

Do we really wish that things never changed? Sewing machine oil—yeah, we'd sell a lot of that! Cough Cure with some very interesting ingredients—boy, times sure have changed! And when was the last time you heard someone say, "Gee, I sure wish I could find some good fruit pectin"? And how nice that our bottles now have screw-on caps instead of corks—change is good!
 

Similarly, Watkins products have been available and sold through many different selling channels through the years. First from only J.R. Watkins himself, to a band of horse and buggy salesmen, to counter stores all across the United States and the world. It evolved just as selling has evolved, from door-to-door to the Internet, and currently is distributed through a multi-channel approach with all channels complimenting each other.

 

Yep, it all started with a horse-and-buggy... but isn't it nice that we've progressed today? Sure we can still do face-to-face selling at fairs and parties, but we also have the option of the high-tech computer age. Sweet!
 

For a company to grow and remain healthy, it is absolutely imperative that they constantly evaluate and adjust their business model and distribution methods. No one can predict the future, but what can be guaranteed is that things will continue to change.

In the 1930s and 1940s, Watkins was only sold by men, and through assigned territories. Because no efficient means of shipping and distribution existed, warehouses of products were located all across the United States and Canada. In addition, each territorial distributor had to maintain a large inventory for their dealers and most of them also maintained a counter store to directly serve the public.

Of course, for Watkins to survive, both the territorial restrictions and the men-only sales teams had to change.

In the late 1970s, Watkins changed it's marketing and compensation plan to multi-level marketing, and reduced the number of salaried sales managers to only a handful. An MLM form of compensation was far more fair and equitable and those who took the leadership roles were rewarded handsomely. The change in the compensation plan, along with a change in ownership of the company to the Jacob's family, saved the company from bankruptcy and liquidation.

In 1990, Watkins introduced Quick-Serve, which set up a distribution system that no longer required products to flow through a stocking distributor. The rise of small parcel delivery services that reached every address in the US and Canada greatly reduced the busywork of the distributor, freeing him or her up to lead a growing network of dealers. Leaders and top sellers were recognized at annual conferences.

 

Recognition of achievements plays an important role in today's world.
 

In 1999, Watkins improved the compensation plan to make even larger incomes available to those who focused on building leaders, in addition to sponsoring salespeople. They offered luxury vacations as incentives to those who worked hard to help the business grow. Again, Watkins adjusted to adapt to a changing marketplace and workforce.

 

Luxury vacations to fun destinations (including Mexico and Ireland shown above) were not part of the compensation plan back in horse-and-buggy days!
 

In the early 2000s, the company took additional steps to make "Watkins" more of a household name. They arranged for an increased presence of Watkins products in national and regional chains where most families routinely shop. That strategy continues today, with the purpose being to increase the awareness for the brand, to improve efficiencies in manufacturing, and to create another profitable sales channel.

With the explosion of the Internet, Watkins took steps to protect the brand online. They have continued to explore other sales channels to be able to expand the product line and further increase the awareness in the marketplace. Products have been featured on home shopping channels, in major national magazines, in celebrity give-a-way bags, and much more. In addition, Watkins also made various moves to try to market some of the products into foreign markets, through strategic partnerships with local companies in those foreign markets. This, too, would help with economies of scale and to make the company more profitable, and thus, more secure.

 

Components of the multi-channel strategy include things like: having a company-run flagship Watkins store in the Irvine, California mall; getting featured on home shopping programs, the "Today" show, and "Let's Make a Deal"; having some products available on store shelves; and partnering with Kemp's dairy to feature the flavor of Watkins Vanilla in some of their seasonal products. All of this helps our customers be more receptive when we talk to them about Watkins.
 

 

Watkins products have been featured in hundreds of magazines, often as a "top pick" of editors or as a celebrity endorsement (like the mention above of Mary-Kate Olson purchasing a Watkins product in Target). This kind of exposure gives a huge boost to making the Watkins brand name popular, which helps each of us consultants.
 

Watkins Today

As you can see, there have been many changes for Watkins since 1868. And there are sure to be more changes coming in the future, because changes will always be necessary to keep any company alive and growing.

But some things have been consistent: Watkins unending quest for quality, making great natural products, and providing a totally-flexible work-from-home business opportunity.

At this point, Watkins has a 150-year track record as an excellent earnings opportuntiy for any hard-working person who is able to adapt to changes along the way. We know that our team members have what it takes to succeed to great levels. And that's why we are so excited about the future for all Watkins consultants.

 
Read the Next Article: Fact Sheet for Watkins Multi-Channel Strategy