All fired up: with the right marketing plan, your product will blaze trails across the globe

Entrepreneur, July, 2004 by Don Debelak

THE ENTREPRENEURS: Joanne Johnson, 34; Marcel Sbrollini, 42; and Rod Sprules, 33; founders of Robustion Products Inc. in St. Laurent, Quebec

THE PRODUCT: The Java-Log is a fireplace log made primarily from recycled coffee grounds. Sprules, a mechanical engineer, first learned of the high heat capacity of coffee grounds while working on a heated cold weather suit for his former employer. When coffee-houses became popular, he thought of converting used coffee grounds into the Java-Log. Today, the product, which retails for about $2.50 per log and bums hotter than traditional firewood, is sold through Home Hardware, a major Canadian hardware chain; Home Depot In Canada; grocery stores; and a variety of smaller stores in Canada and the United States. Product sales via the company's Web site (www. robustion.ca) are also growing.

STARTUP: $38,000

SALES: More than $1 million in 2003

THE CHALLENGE: Turning an unknown niche product into a national and international bestseller

ROD SPRULES' JAVA-LOG DIFferentiates itself from traditional firewood in a number of ways: It burns with brighter flames, emits less carbon dioxide and is made from a waste product. And although this engineer-turned-entrepreneur developed the environmentally friendly product on his own, he needed help when it came to generating interest among retailers and customers. Despite the challenges, Sprules was able to turn his product into a million-dollar success story.

Steps to Success

1. MAKE SOME PROGRESS ON YOUR OWN. In 1997, Sprules developed the idea, and experimental logs were tested in his garage. "The procedure to make a log includes separating the grounds, drying [and] mixing them, then extruding the finished product," says Sprules. "It took 10 minutes to make a log. By 1999, I had the equipment improved to the point where I could make a log in 25 seconds. I started selling them at the local farmers' market and to family and friends."

2. CHOOSE A PARTNER WHO COMPLEMENTS YOUR EXPERIENCE. Though Sprules and his wife, Joanne Johnson, had done well on their own, they jumped at the chance to take on a partner with marketing experience. "In 2000, we tried licensing the product. We had some offers, but they were not adequate," says Sprules. "Through a friend of a friend, we met Marcel, who has years of consumer marketing experience at Procter & Gamble and then at PepsiCo. Marcel was the perfect complement to our skills."

Sbrollini explains the situation from his point of view: "When I left PepsiCo., I was looking for a small to midsize company where I could develop autonomy within the organization and make a difference. I was with several other small ventures first but found the ideal situation at Robustion Products."

3. SET UP A TEST MARKET TO GENERATE THE FINANCING YOU NEED TO EXPAND. Investors will scrutinize you before investing and they like to see that you have the skills to expand. When the time came for a full market test, which was funded by an additional investment from family and friends, Sbrollini helped Sprules set up a test market in Ottawa according to standards for consumer products. "We sold the product in our test market to grocery stores, hardware stores, a coffee shop, an art store and auto supply stores," says Sprules. "We wanted to [sell] to a full cross section of stores to understand how the product could be sold."

"The results of the test were among the best I've ever seen," Sbrollini adds. As a result, Sprules was able to land a Canadian investor to expand sales for the 2001-02 winter season.

4. FIND A CREATIVE WAY TO GET MARKET EXPOSURE. Though his company was growing at a rate of 400 percent per year, Sprules still didn't have the money needed for a big advertising campaign. So Sprules and Sbrollini came up with a strategy. "We approached a major chain of hardware stores in Ontario for a one-season exclusive," says Sprules. "In return for the exclusive, [they] gave us a big beginning order and had an advertising campaign on the Java-Log, which included TV spots. The deal turned the Java-Log into a national product."

5. CASH IN ON EARLY SUCCESS. During the 2002-03 season, Sprules and Sbrollini rolled out the product throughout Canada to a variety of stores, including Home Depot, Home Hardware, and other hardware and grocery stores. Sbrollini used past success as a sales tool: "We were able to use the success in the Ottawa test market to create traction. Our success provided leverage, [which] made the product sell."

A successful 2002-03 season helped Sprules and Sbrollini raise additional money from private Canadian investors, which they needed to approach the U.S. market for the 2003-04 season. The campaign was a success: "We were just planning on selling in the Northeast United States, but we received so much publicity that we were selling across the entire Northeast and Midwest. By December 2003, we had sold most of our entire production for the season."

Lessons Learned

1. BUSINESS SAVVY COUNTS. It makes sense to partner with a pro who makes great presentations to customers, gives investors confidence, knows the best deal you are likely to get, and understands how to close the deal. You want customers to deal with you, but that can be a hard sell without a knowledgeable person involved on your end. If you're ready to find potential partners, try networking at entrepreneur clubs in your area or contacting your local SBDC (www.sba.gov/sbdc). You can also place an ad for a partner in the "businesses for sale" ads in your local paper.