linked in facebook twitter rss

  • Interbrand
  • Brandchannel

your chance!
your chance!
leatherman brand
 

Leatherman


  Leatherman
sharp
by Ron Irwin
April 29, 2002

Open a bottle of wine, spread some cheese, cut your fishing line, hotwire your radio, snip the fuel line on your boat motor… The only thing you can’t do with a Leatherman is call in to work to say you’ll be out for the day.

What is a Leatherman? It’s the sort of rogue brother of the Swiss Army knife.

 
 

In 1975, an Oregon-based engineer named Tim Leatherman took a road trip through Europe in an ill-fated Fiat. The engine went awry and he couldn't find pliers (or a spanner, for that matter) to fix the seven-year-old hatchback. Most of us would have left it at that, but instead Leatherman returned to the US and spent seven years developing a pocket-sized multi-tool that could be used anywhere for a myriad of tasks. By 1983, he founded the Leatherman Tool Group, which according to the company is "one of the most successful garage start-ups in the history of garage start-ups."

To date that successful start-up has grown to 450 employees and sells over a million units per year, enjoying a +55 percent share of its market. The Leatherman product extends to 15,000 multi-tools for customers in over 80 countries. These customers range from plumbers to mountain climbers, performing such essential tasks from cracking open a leaky pipe's inspection valve to twisting open a bottle of cabernet. Leathermans have been carried to the top of Mt. Everest, traveled across the Atlantic by dory in the 2001 Atlantic Rowing Challenge (which Leatherman sponsors), and gifted to presenters at this year’s Academy Awards ceremony in the US.

In 1989, Canadian Bruce Tretheway and his family went to South Africa hoping to import Leatherman tools to African shores. The brand, and the product itself, was unknown in Africa at the time, and its relative expense meant that Tretheway had to single-handedly create a brand niche for his product. Today, over 45,000 Leatherman tools are sold per year to buyers throughout Sub-Saharan Africa in South Africa, Namibia, Botswana and Swaziland.

In South Africa, Leatherman prevails over its market segment almost unchallenged despite the relatively recent proliferation of competing, well-known overseas brands such as Buck, Bear, Victorinox, Stanley and Gerber, as well as a plethora of cheap Asian knock-offs.

Leatherman tools have engendered a wide and loyal following here, where Tretheway and his team have deployed what they call an "educated, passionate salesforce, rather than uneducated, uncaring discounters." South African game rangers, contractors, outdoor enthusiasts and do-it-yourselfers swear by their Leatherman tools and daily put them through their paces in one of the most rugged regions in the world. One South African farmer in the outback wrote to the International Leatherman Newsletter that, "without [Leatherman tools], living here seems inconceivable."

Part of Leatherman’s differentiation from its competition is to introduce absolute support to not only its customers, but also the stores that promote its products. The Leatherman tool is meant for daily use and customers who have managed to break or damage theirs have been encouraged to bring it back to the point of sale, where store managers send the tool to Tretheway’s Cape Town office for free repair.

Tretheway’s offices include a workshop where hard-wearing Leatherman tools from across the country are repaired, re-tooled or replaced free of charge. "Customers [in South Africa] were not used to free service," says Tretheway, “and we improve and fix their Leatherman tools so they work longer and better." This personal support has resulted in a loyal following: one retailer contacted as research for this article stated flatly that representatives from Leatherman's competitors "are not allowed in my shop."

Indeed, this feature of customer support has created an emotional bond with Leatherman customers here in South Africa. Tretheway and his team, all wearing distinctive yellow Leatherman T-shirts, routinely set up Leatherman booths at local trade shows where people can bring in their tools for on-the-spot repair jobs. These mobile fix-it booths are an important sales vehicle for Tretheway, enabling potential Leatherman customers to see just how far the company goes to support its product. "[The booths are] a way people can see the product is for real," Tretheway says. "Customers are not used to actually seeing people care about something that does not make money."

The effort that it takes to ensure that every single Southern African Leatherman owner has a tip-top product has created what Bruce calls "A long term winning situation, where people care about the Leatherman tools." Tretheway claims that this is crucial, as South African retailers now offer a bigger variety of multi-tools than is available anywhere else in the world except for, possibly – and surprisingly – Finland. Big discount chain stores in the US, he posits, offer only a few multi-tool brands, whereas smaller regions, like South Africa and Finland, are not hamstrung by franchising demands.

Things may look rosy now, but when Tretheway arrived In South Africa in 1989, he discovered that getting people to "realize [the Leatherman tool’s] value was difficult." He sold his first consignment of 1000 tools by literally going to farm shows in the agricultural heartland of South Africa and pushing them one by one to gadget minded planters and ranchers. Tretheway initially captured a position for the Leatherman through "over-advertising" and "overwhelming the customer with support." His goal from the start was to "create a position for Leatherman as the ultimate multi-tool in South Africa," and he immediately began investing over ten percent of his net revenue in magazine advertising.

After three years of effort – and only a few thousand sales – Tretheway found that the Leatherman brand name started to find its place among farmers and outdoorsmen who could use Leatherman multi-tools to do everything from fixing hunting rifles to gutting fish. Tretheway and his son Chris had also made the crucial decision to form meaningful, personal relationships with every shop owner that sold Leatherman products. These retailers he refers to as "partners," and he and his salespeople routinely pop into their sales establishments for a visit, listening to what the retailers have to say about Leatherman products, buttonholing customers and collecting Leatherman tools that need repair.

In this way, the Tretheways and the rest of the sales force have differentiated their brand from the others – so much so that most Leatherman retailers report that the tools, despite costing as much as three or four times that of the competition, dominate multi-tool sales throughout the region. Tretheway's philosophy has been that "the customer is not wrong, regardless, and this is a winning formula if you have a winning product that will sustain their interest."

As far as advertising is South Africa is concerned, Nicole Meiring, Tretheway's marketing coordinator and office manager says "We targeted the prime magazines in a specific market and spent a lot of money to break into that market." After advertising in magazines like Getaway, the Outdoorsman, and Farm Market, sales have developed a "momentum." Now, she points out, the focus is on the promotional market. "We do laser engraving right here, so the client gets the complete product." From a marketing perspective, Nicole feels the "support Leatherman gives is key. “We try to get our retailers to follow suit and realize the [25 year] guarantee is for real."

Since 1989, Tretheway's sales have escalated. In 2000 he racked up 56,000 sales, though 2001 saw a slight drop off to about 45,000, thanks to the sudden decline of the local currency against the dollar. Despite these numbers, Tretheway feels that perhaps only two percent of his market has been tapped. He points out that most Leatherman tool owners have more than one, meaning that repeat business from established customers ought to help expand South African sales.

 
     
  

Ron Irwin is an American freelance writer based in Cape Town, South Africa. His work has appeared in National Geographic Online, Soul Gear and South African print editions of Men’s Health, Style and FHM.

  
     
 commenting closed Add Social Bookmark bookmark  print
 suggest topic  recommend ( 4 )  email

  brandchannel profile archive   2011  |  2010  |  2009  |  2008  |  2007  |  2006  |  2005  |  2004  |  2003  | 2002  |  2001
 
 
Dec 30, 2002 Opera - rising star -- Sultan Omar
  Opera stages a dramatic performance against Microsoft's Internet Explorer.
   
 
Dec 16, 2002 The Lord of the Rings - towers -- Brad Cook
  The Lord of the Rings brand is as snug as a hobbit in a hobbit hole, but will the brand survive beyond the box office?
   
 
Dec 9, 2002 UNICEF - unites -- Robin D. Rusch
  Global non-profit UNICEF marks its birthday with a revised and defined brand roll out.
   
 
Dec 2, 2002 Coca-Cola - a classic -- Brad Cook
  How did Coca-Cola manage to get the whole world in its hand?
   
 
Nov 25, 2002 Pep - recharged -- Ron Irwin
  Retail chain store Pep celebrates a half-century in Africa.
   
 
Nov 18, 2002 Royal Selangor - breaking the mold -- D. Sauer
  Malaysian brand Royal Selangor shows slow but steady progress as it occupies the top shelf along with other top Asian brands.
   
 
Nov 11, 2002 WWE - get the 'F' out -- Dave Liss
  World Wrestling Entertainment gets smacked down but remains in the ring.
   
 
Nov 4, 2002 Benihana - chop chop -- Randall Frost
  Benihana tries to appeal to a western palate.
   
 
Oct 28, 2002 Maruti - driving a nation -- Sultan Omar
  What drives Maruti’s success in India?
   
 
Oct 21, 2002 Star Trek - lost in space -- Brad Cook
  Star Trek drifts in and out of a black hole.
   
 
Oct 14, 2002 Blekkulf - eco ink -- Michael Standaert
  Norway's Blekkulf swims south where European children embrace the eco-brand.
   
 
Oct 7, 2002 San Miguel - hops -- Abram D. Sauer
  Tap into the incredible success behind Filipino brand San Miguel.
   
 
Sep 30, 2002 Nintendo - leaps and bounds -- Brad Cook
  Can cartoon characters carry the Nintendo brand through the 21st century?
   
 
Sep 23, 2002 Nautica - sea worthy -- Abram D. Sauer
  Lifestyle brand Nautica sails on.
   
 
Sep 16, 2002 Emmperative - imperative? -- Fiona Harvey
  How did P&G’s enterprise marketing management software Emmperative fail?
   
 
Sep 9, 2002 EV Global Motors - stalled -- Randall Frost
  Has EV Global Motors lost its power?
   
 
Sep 2, 2002 Elidel - covers the globe -- Edwin Colyer
  Novartis hits the global stage with a one-identity-fits-all approach for Elidel.
   
 
Aug 26, 2002 Kreepy Krauly - sucks -- Ron Irwin
  The deeper Kreepy Krauly sinks, the stronger the brand emerges.
   
 
Aug 19, 2002 Callaway - driving the market -- Randall Frost
  How did Callaway link its name with respectability in such a relatively short period of time?
   
 
Aug 12, 2002 Game - leads the pack -- Ron Irwin
  Can Game win in its expansion plans across Africa?
   
 
Aug 5, 2002 Presto - huh? -- Evelyn Hafferty
  Nike attempts intrigue to attract the Gen Y crowd to its Presto launch. But is it ingenuous or just insipid?
   
 
Jul 29, 2002 Warner Bros. - what's up Doc? -- Brad Cook
  Now that Warner Bros. has passed into the AOL Time Warner conglomerate, is th-th-th-that all folks?
   
 
Jul 22, 2002 Famous Amos - making dough -- Randall Frost
  A lot of companies have stuck their hands in the cookie jar of Famous Amos and changed the brand formula from a gourmet cookie for the jet set to a commodity.
   
 
Jul 15, 2002 Electronic Arts - amazin' -- Brad Cook
  Through a new name, new competition, and new concepts, Electronic Arts remains MVP of the gaming world.
   
 
Jul 8, 2002 Cell C - connected -- Ron Irwin
  Cell C attempts to connect with the wireless market in South Africa.
   
 
Jul 1, 2002 Amazon.com - stacked -- Brad Cook
  Amazon.com transformed itself from the little bookstore on the corner to the mega-super-duper-full-of-stuff store that squats at the end of a monstrous parking lot.
   
 
Jun 24, 2002 Consignia - royal f *%# up -- Abram D. Sauer
  When the Post Office tried to cram Consignia through the traditional letterbox, Brits protested and sent the dogs to stamp it out.
   
 
Jun 17, 2002 Weber - smokin’ -- Ron Irwin
  With nearly 365 days of grilling weather per year, every day is Sunday for Weber Grills in South Africa.
   
 
Jun 10, 2002 ALDI - preiswert -- John Karolefski
  German retail chain ALDI keeps prices low to generate high revenue.
   
 
Jun 3, 2002 FIFA - goooal! -- Abram D. Sauer
  Will FIFA suffer from the same brand-destroying scandal that rocked the Olympic committee?
   
 
May 27, 2002 adidas - contender -- Vivian Manning-Schaffel
  German sporting goods brand, adidas, laces up its sneaks and gets out on the court to take on Nike.
   
 
May 20, 2002 Lustucru - saucy -- Jocelyne Henri
  French pasta brand Lustucru takes on Barilla and Panzani in a saucy cook off.
   
 
May 13, 2002 Star Wars - universal force -- Brad Cook
  As audiences queue worldwide to watch the next episode of Star Wars, we ask, What’s the big deal?
   
 
May 6, 2002 Gatorade - endures -- Brad Cook
  The Gatorade team has managed to rule the sports drink market for decades -- perhaps there’s something in their drink?
   
 
Apr 22, 2002 Napster - 9 lives -- Fred Burt
  Napster ruled because it broke the rules. How can Bertelsmann credibly own this brand?
   
 
Apr 15, 2002 Marvel Comics - super -- Brad Cook
  Holy history, Batman! Marvel Comics is in its sixth decade of performing superheroic feats.
   
 
Apr 8, 2002 Planet Hollywood - lost in space -- Abram D. Sauer
  Where does celebrity go to die? Planet Hollywood perhaps.
   
 
Apr 1, 2002 Atari - bonus round -- Brad Cook
  Atari loads up on quarters and heads back to the arcade to win our hearts all over again. Game over? Hardly.
   
 
Mar 25, 2002 Petit Bateau - full sails -- Jocelyne Henri
  Take a peek beneath the strategy at Petit Bateau to see how they managed to rescue the brand and attract an older generation.
   
 
Mar 18, 2002 Vertu - Upwardly mobile -- Patricia Tan
  Nokia’s new luxury phone, Vertu, is part Rolex, part BMW, part Jeeves. But can a handset brand support an $18,000 price tag?
   
 
Mar 11, 2002 Absolut - brilliance -- Ian Cocoran
  Absolut keeps on top of new media to continue its smart dialogue with the drinking public.
   
 
Mar 4, 2002 Mrs. Fields - cookin' -- John Karolefski
  Mrs. Fields has been cookin’ for 25 years; we sample her goods.
   
 
Feb 25, 2002 Vivian Lives - virtually -- Vivian Manning-Schaffel
  Looking for the perfect spokesperson to promote your brand to Gen Y? Why not create one out of thin air and call her Vivian Livingston?
   
 
Feb 18, 2002 ABSA bank - gaining interest -- Ron Irwin
  The Amalgamated Banks of South Africa (Absa) is investing in its brand to retain and attract both groups.
   
 
Feb 11, 2002 Ministry of Sound - still spinning -- Abram D. Sauer
  The UK’s Ministry of Sound takes on an MTV-like status as it moves from a club scene to a multimillion-pound brand.
   
 
Feb 4, 2002 Marmite - my mate -- Edward Young
  One man’s food is another’s axle grease. As Marmite celebrates its anniversary, we ask is the world ready for another 100 years?
   
 
Jan 28, 2002 Environ - wrinkle free -- Ron Irwin
  Environ projects an image as an exclusive product whose demand far outweighs its supply.
   
 
Jan 21, 2002 Just Born - a born sucker -- Abram D. Sauer
  After nearly a century of making candy, Just Born reaps over $100M a year and yet still promotes itself as a mom & pop brand.
   
 
Jan 14, 2002 H&M - Hot & Mod -- Abram D. Sauer
  H&M is hot, but focusing loyalty on price not product, forces the brand to compete with both low-end discount chains and chic designers.
   
 
Jan 7, 2002 Topps - trading on its heritage -- John Karolefski
  From penny gum sales to e-merchandising, we profile Topps Company, with over 60 years of delighting kids, big and small.