DIAL BRINGS TEAM PLAY TO PRODUCT EXPANSION

JOHN KAROLEFSKI

NEW YORK -- Dial Corp. is now launching line extensions of its popular anti-bacterial liquid soap that were created by a multifunctional brand team.

Liquid Dial, the category's leading brand, now comes with moisturizers and vitamin E. Later in the year, a version for sensitive skin will be available.

Dial formed the multifunctional team behind this brand three months ago, according to John Teets, chairman and chief executive officer of the Phoenix-based company. It was the latest step in expanding the strategy at Dial.

He discussed Dial's multifunctional teams at a conference here sponsored by the American Marketing Association.

Teets said that the multifunctional brand team consists of executives from research, packaging, finance, trade marketing, consumer marketing and the product supply system.

The team for Liquid Dial is the latest one in a strategy that began five years ago with meat products, according to Teets. The multifunctional team for laundry products was created 18 months ago. This group has launched nearly 20 line extensions.

"We have not had any failures in any line extensions that we have put out with this team," said Teets.

"The team strategy started with the meat group and moved over to the laundry group. Now we're getting it fully assembled in the soap group."

In general, Teets said he is pleased with the strategy and so are the team members.

"We're finding out that we have more team cooperation," he said. "The attitude's better. They feel like they're working together.

"The team is different for each brand. They cross-mingle, but they're all accountable," he said.

Teets acknowledged that it took a while to achieve such a level of comradery.

"It's easier said than done," he said. "Everyone's got their turf they step on every day, and they make sure nobody crosses it."

But with the team concept, "research is now interfacing with the management people," he said.

In addition, "we know exactly what is going on in research, and where they're going," he said.

The realities of the 1990s make such teamwork especially important according to Teets.

"It is more difficult in marketing and sales today than it has ever been in my career," he said, citing private-label competition, new products and line extensions among the challenges.

"It's also more difficult because our customers, the grocery stores, have overwhelming new information available that they didn't have even two years ago," he said.

Teets said that maintaining shelf space is going to be more critical. "Retailers can tell you -- by the inch -- whether that space is making money," he said. "We're constantly evaluating how we can compete for that space. It's a challenge."

In response to a question on how Dial determines the best mix between trade and consumer marketing, Teets said, "No one has [the best mix] today. Everybody is searching for it."