Zowie (A) Warner Davies Davies Chemical Company was founded in 1965, when Warner Davies, then a 40 old ‘cinta Oxford Unversity, developed liquid cleaning product for medial equipment. The product, called 2192, was designed to meet the scl hyglnic standards of insitonal customers ch 28 hospitals, university labs, and medical equipment companies. When 2192 dé not catch on wit these customers, Davies gave ita new name (Zowie) and packaged th an eye-catching purple ‘and yellow botle forsale to cnsumer households, Afler much til and er, Daves developed a formula that made Zowie a mul-purpose “miracle produc" or cleaning oor, kchan counters, ‘windows, clothes. and uoholstry in homes and cars, al toa medical standard of hyolene, Davies began the operation with a three-person san a one-oom rented warehouse. He mined ‘the chemicals himself and koted the nal product inthe warehouse, He and his staff old Zowie from the back of an old Votkewagen van, Zowie was inexpensive to make —the only inputs were distied \waler and commodity chemicels~ and priced near the tp ofthe marke, By 1975, Davies had seven ‘employees who helped him make and dsibute the product through Oxferdshire grocery markets and ‘general merchandise stores. feature rice inthe Oxford Times extolled Davie’ energy and personal charisma, and his passion fr producing quay produc: a former Oxford colleague called him Yan absolute gens ofa chemist” In the meantime, Davies hed not given up on his origina ison ~ sling to hospitals, universities ‘and medical equipment companies ~ and he was making small inroads in these markets. He developed a new cleaning formula fr medical devices, and in 1975 abet 20% of sales were ‘dectors and hospitals in Oxfords, Bung these relations was time-consuming for Davies, but he was convinced it would eventually pay of, He algo explored other markets, euch as epecialized leaning produits for area engines and electronics components In 1975 the popularity of Zewie Household Cleaner was bolstered by a supice product ‘endorsement rom former Engish footballer Bobby Chatto, who in & BBC TV interview jokingly called Zowi "the real heroin ny house” Ale tha, sales of Zone grew exponential, rm £80,000 in 1975 o £400,000 in 1960, and £2,000,000in 1964 The Situation in 1985 In 1985 Zowie was avalal in 20% ofthe UK touch grocery, hardware, and general rmarchandise stores. Surveys showed hal brand recognition for Zonie was tong inthe Onfordahire es, but vualy il elsewhere. The product was offered in smal, medium and large bottles. For ‘marketing, the company relied mainly on foe samples, rade shows, and magazine adverteements Production, betting and warehousing were based in a rented fait in rural Oxfordshire, and products were dlstbuted crect to reales by company-owned trucks.Davies served as Preidentof Daves Chemica, and oversaw every aspect ofthe business. The company's 15 employees wore engaged In marketing, accountng, production, detrbution, and retail ‘elatons. The company was profitable encuah io alow Davies to work on new projects, such a niche cleaning products forthe medial, scat, and electonkes markets, which he regarded asthe most promising commercial segmerts. In 1664, 90% of Davies Company ales came from Zowe and 10% ‘rom commercial products. So far, no compettors had emerged to pose a direc challenge 1 Davies Chemicals ints premium-prcod niche of "hygienic miracle cleaning product" Davie fl that his chemical formula was impossible oreplcate and didnot need tobe patented. However, wih @ potential UK market perhaps as large as £30 to £56 miion, Davies were that lage payer ike Uniever could develop 8 diferent formula and use is scale and dstributon muscle fo div out the competion. He heard rumors that Unilever might evertual bid on his compary, but he had no interest in seling, He said his goals were to secure the longterm future of Caves Chemical as an independent company, ta become the largest leaning product company inthe UK, tobe an ethical medel forall companies in ‘he management of chemical waste, and for his products tobe known al ove the wot ‘According to the companys best forecasts, 1885 sale for Davies Company woul grow 20% to £26 rion, wit net earnings of £300,000, The company was beginning fo take of, but growth was becoming had to manage and everyone was overworked. A Setback in 1986 In ate 1885, Warner Daves had a severe heart attack and lef he busines to recover at home. He called @ meating wih Oona LaRoche his wiles sister, who had formerly served as UK marketing ‘manager forthe pharmaceutical company Johnsen & Johnson a that meeting, Daves asked Me LaRoche if she would manage the company In his absence, and she agreed Wo do 80, Tree months later, Mr. Davies had another her attack and died, leaving Ms. LaRoche as Managing Director ofthe company.Ms. LaRoche's Strategy in 1885, \Winin a few days of taking over, Ms. LaRoche realized thal Davies Chemical Company was completly disorganized ith no proper strategie planning or management processes. The company had succeeded inept of tse, rlyng entirely on the chemical experti¢e and personal dynamism of Me Davies. ‘After afl tratagic analy of the company and industy, Ms, LaRoche decided fo focus the company on Zowie leaning roduc for consumer householis,eisontinuing lefts to serve the commercial secter. In an early meeting wih empioyees, she declared, "We are @ one-product company and our futures Zovie” To emphasize the change she changed the name of the company {fom Davies Chemical Company to Zowio Lt, ‘Ms, LaRoche's strategy ha te planks: (4) Grout: Expand Zone to the rest the UK. (2) People: Bult a formal organizational structure and hire qualified peopl of key postions. (©) Processes: Establish aroper operating processes and nancial controls ‘Topenetrae markets uc, Ms, LaRoche developed new marketing programs aimed at customers beyond the local eon. She hired tp people to head the areas of Marketing, Finance and Production. In Marketing, she dlsbanded the drect-to-retal sales fore and hired wholesale listributrs with nts reaching throughout the UK. Results: 1985 to 2000 Zoi’ sols neal pled trom 1985 to 1988, despite a global econamic downturn in 1967. When the company ran short on captato fel its investments la marketing, inastructure and people, Ms LaRoche took the company pel, raising £500,00 in an rial pubc fering in 1988. Ths capital Infusion enabied further growt for Zou, wih sles ring fom £5.7 millon in 1988 to €25.1 milion in 1993, Sales in 1997 were £453 millon and in 2000 reached £57.3 milion. By 2000, Zowie was sod throughout the UK, had @ 25% marketshare in clearing products, and 100% marketshare ins rche ‘of hygiene miracle cleaning products" In 1998 Financial Times named Zowie "Britain's best consumer product” By 2000, ater 15 years a Managing Decor, Mo, LaRoche hed schioved many of hor goals. The ‘company had a dominant market positon and song bxand recognition, «qualified manageme team, and superior operational expertise.