Microfinancing Helps West Africans and American Soap Company -- Ask Lynda Resnick | Lynda Resnick's Blog

Personal-Care Products Help Clean Up Economy in Underdeveloped Countries

Ask Lynda Resnick: Business and Marketing Advice

When a former employee contacted me on advice for his new business, I just couldn’t pass up the opportunity. Not only does Michael Talve have a fabulous product, his environmental and philanthropic soaps are cleaning up this planet, one shower at a time.

Read on to hear the advice I gave to Michael on how to make his Vivo Natural Products even more desirable to customers.

Lynda Resnick: Now remind me, when did you work for us?

Michael Talve: I started after my junior year of college, which was 2006, up until the end of 2008. I was the marketing and events guy for FIJI Water. I was based in New England and bounced between the six New England states and New York quite a bit.

In the middle of my time working at FIJI Water, I came up with the idea to start this soap business, much because I spent so much time visiting different retailers like Whole Foods while I was working for FIJI and getting a better understanding for your business model. I saw an opportunity in the personal care industry, because there is such a major gap in the marketplace in terms of the price and quality.

LR: What does the average bar of soap sell for? Would Dove be considered a high price?

MT: Dove would be considered low priced. It typically retails for about a dollar and a quarter. You can buy it for as little as a dollar a bar, if you’re buying it at Sam’s Club or Costco in an 18-pack, for example. If you’re in Manhattan, like I am, you can go to a Duane Reade and it can cost as much as two dollars a bar. [Our soaps] are about 50% more than a bar of Dove in a New York City store.

LR: So, you’re about $ 3.49?

MT: Exactly.

LR: And that bar of soap will last you for about six months, won’t it?

MT: It lasts a long time. I shower two or three times a day. I’m kind of a clean freak.

LR: We better talk, because I think your problem might be bigger than the soap. You have a Lady MacBeth complex.

MT: Probably a little of that too. So, the soap is far longer lasting than the mainstream competitors, but more importantly, it’s far higher quality. The main ingredients are essentially food grade, and it’s priced closer to those guys than say companies like South of France and other high-quality bar soap lines, which typically retail for six plus dollars per bar.

LR: So, you saw an opening in the marketplace between the high-end soap and the junky soaps that are out there.

Michael Talve, Managing Director of Vivo Natural Products and former FIJI Water employee

Michael Talve, Managing Director of Vivo Natural Products and former FIJI Water employee

MT: Exactly. We’re the “affordable luxury” pricing strategy.

LR: How are you doing?

MT: We’re doing great. It’s exceeded expectations.

LR: You said that your product is good for the world and good for the environment,. Tell me where you are buying your ingredients and how it’s helping other countries.

MT: I became very interested in microfinancing as a concept, after meeting some folks who were involved with lending small amounts of money to entrepreneurs in underdeveloped countries.

LR: That’s why Muhammad Yunus won the Nobel Prize.

MT: I met Dr. Yunus during my sophomore year at college and became very interested in it, and also got a chance to meet him at the Milken Conference last year. I’m very interested in microfinance, and I believe in the concept.

After doing my research, I realized that shea butter was by far the most amazing natural skin remedy available. And the best shea butter comes from the west coast of Africa. So, rather than buying chemically-treated shea butter, I decided the best way we could make the best soap was to use natural, unrefined, handcrafted shea butter.

Vivo Natural Products' bar soap is made from West African shea butter

Vivo Natural Products' low-cost, high-quality bar soap comprises West African shea butter made in a microfinanced women's collective.

The country we buy our shea butter from is Togo. It’s a very small country with little industry at all. We found an organization that provides microfinancing to entrepreneurs – women, really – who produce their own shea butter. To me, I thought this was a more meaningful way than just donating money.

LR: It is! It’s a much more meaningful way.

MT: I thought, This is a fabulous way to help them grow their businesses, and at the same time, make our product that much better in quality, because we’re using this amazing-quality shea butter.

LR: Do you want to know what I think of the product?

MT: I really do, please.

LR: All right. I really like the experience of using your soap. I have to concentrate on the packaging a little.

MT: That’s where we are most lacking. This is my first shot at designing packaging for consumer-package goods.

LR: I also felt [the bar] was a little big, but I have very small hands. Do you think more is better?

MT: I thought 4.5 ounces for our product was reasonable. Some of the other brands – South of France or L’Occitane – their bars tend to be 8 ounces plus.

LR: Who wants that? You can’t keep your hands around it in the shower…

MT: …It drops on your foot. It’s, like, dangerous. But the mainstream soaps like Dove or Dial tend to be 3.75 ounces. So we’re a bit larger at 4.5 ounces, but not so much.

LR: Ergonomically, it’s a little hard to hold at first.

MT: I’ve heard this from other women, and women tend to be the decision makers in bar-soap purchasing. My mom thinks the same way.

LR: Go to RISD (Rhode Island School of Design) or any of the art schools in the area and have the bar soap designed ergonomically, because you could just make a mold for it. Can you get an existing mold from somebody and make a miniature version?

MT: Ah! We just ordered our first batch of amenity-sized to begin selling to hotels.

LR: Now will they be interested in buying just a soap, though?

MT: No. It’s very difficult to convince them. Only very cutting-edge, boutique-style hotels will be willing to carry just the bar soap without—

LR: The whole line to go with it.

MT: Exactly. But I was also interesting in doing this for sampling. This way I can affordably give out trial-size samples of our product and let people give it a shot at home for free.

LR: Yes, absolutely! And put it in goodie bags for events.

MT: We’re all over it.

LR: All right, I don’t have to teach you that, because you learned from the best.

MT: I did!

LR: Have your sales reached a peak, or are they still growing?

MT: Every week we see significant growth. It’s pretty amazing. Our existing customers are selling through their orders and re-ordering. It’s going quite well.

LR: I think you can take the next step to build a community around this soap: Bloggers, anyone who’s talking about Whole Foods and what’s there. You could go to “housewives” and any kind of site that talks about personal care. You can get those bloggers and you can build a relationship with them. You can send them samples. They will embrace you, they will use it – the product is excellent. How long will it last?

MT: I think it lasts about a hundred showers. That’s the most accurate take I’ve been able to come up with.

LR: “A hundred showers worth of luxury for $3.49!”

MT: Anyone can afford that.

LR: I kind of [don’t like] the packaging. It looks so institutional compared to the luxury feel of the soap. And the lettering is so small. And it doesn’t really reflect the beauty of what’s inside. I’d almost rather see you have a clear box with a solid bottom so they could see the soap.

I’ll give you an idea. Everyone loves a story, especially in times like this: Print the paper that the soap is wrapped in with your story.

MT: I think that’s a fantastic idea.

LR: I do, too. I’m going to give myself a pat on the back for that one. Tell about how you went to West Africa and you found this village, how you believe in microfinancing and how they make the shea butter, and how you get a hundred showers out of a bar of soap. All of these things comprise your unique selling proposition. The value is in the quality of your ingredients. Your unique selling proposition is the story of the way you got it.

The next step is to build the community around the story. Go to Tom’s Shoes on the Internet, see what he did. Look at what his site looks like. Look at what his packaging looks like. This is where you’ve gotta go. The problem is, this looks like private label to me.

MT: It’s not that well branded.

LR: It’s not that it’s not well branded. Your name is as big as life! But I’m not getting a story from it.

MT: This is a difficult balance for me. I think after speaking to you about it for a few minutes, you understand the meaningful social purpose is fully intertwined with the quality of the product.

LR: Absolutely. And this is the future of our planet by the way. As I said in the book, “If you can’t be a good citizen, there’s no place for you.” What you’re doing is the role model for young people to embrace. You should be speaking about what you’re doing. When I was doing research for my book, it was so hard to find someone who was doing something like this. This is it!

MT: Thank you, that’s really quite kind of you. For me, the biggest challenge is intertwining the social story with the quality-of-the-product story. It just works so well hand in hand, but it’s difficult to explain that in 15 seconds or less to a consumer on a package.

LR: But if you printed the paper, it would be there. The headline is “The Vivo Story,” and you tell them the whole story of why you did it. You need a line on the box about your social consciousness: “Social consciousness in a luxury bar of soap.” You’re clever, you’ll think of it. But you need that. And you need the “hundred showers” on there, too.

MT: Right now, the front and the back [of the package] look the same. I did this so it would be easy for people to stack it on the shelves. However, we sacrificed a lot of space, where we could be talking about the brand and really explaining the product well. Do you think it would be wise to replace one of the duplicate panels and take it up with information?

LR: Here’s the thing: I don’t know what the dynamics are of stacking soap on a shelf. It’s a great idea to use the space, but it isn’t a great idea if it looks like a mess on the shelf. If I were doing a bar of soap, I’d be all over that soap department to see what other people do. Is it printed on both sides the same? If you feel that you’ll be stacked properly, then you should definitely use the back. But if you feel that it’s going to make a problem, then you shouldn’t.

MT: Fair enough. That’s good feedback.

LR: So, those are some ideas, darling. I wish you the best, and I want you to let me know how you’re doing in six months. Did I help you a little bit?

MT: Tremendously! I’ll be in touch. Thank you again for your time.

LR: My pleasure. Bye-bye.

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10 Responses to “Personal-Care Products Help Clean Up Economy in Underdeveloped Countries”

  1. Sal Vitro Says:

    I knew Michael since he was an infant. I use to mow his lawn over in Coram. He was always very entrepreneurial. He couldn’t have been more than 6-7 years old when he opened a lemonade/cannoli stand on his street. I ended up spending more money at his house than I made when I use to cut his lawn!

    Enjoy your success Michael!

  2. Ron The Closer Says:

    I am use to work with Mike when he was working at Lend America at age 16 or so. We use to refer to him as, “The Closer.” At age 16, Mike would close more loans than the senior lenders who have been working there for 30+ years. This was a kid who was working there during his summer off from high school. He use to criticize me a bit. I remember once he told me, “I couldn’t close a window.” Yet, he took me in as his protege and trained me to learn his techniques. He also apologized to me and said the name calling was just constructive criticism. Within months, I was being called MARIANO RIVERA in the office, which then involved into my name now, “Ron The Closer.” Thanks for everything Mike. Enjoy your success.

  3. William "The Fruitster" Armenta Says:

    I went to Babson College with Mike. He always had the best business plans in all of the entrepreneurship classes. He pitched his Vivo concept during his senior year and I always thought there was a great deal of potential for it. The best part of all was his motivation and passion for the industry. I believe that the packaging is what truly makes his product. The box really resembles a stiffy. I also think it is a very classy product, perhaps the epitomy of class. I think it is classier than South of France and other leading brands you would find on the shelves of Whole Foods. Michael, if you ever come to the Boston area we should go out for flamenco dancing sometime! I don’t know why everybody above keeps saying it, but I will join in. Enjoy your success.

  4. David Lubotta Says:

    I made Michael an offer for a 90% stake in his company in the early stages. We dined at the Palm Beach Grill, indulging in a lightly breaded Dover Sole, which I never paid for. I made him an absurd offer, in his favor, and Michael still did not accept. A few months later, I met him at Neiman Marcus, when I went to pick up several $750 candle sets, and I offered him the same amount of money for a mere 50% stake in the company. He still rejected my offer. He always told me I was a big spaccone. Michael always believed in this concept, as did I, which resulted in the enjoyment of his success.

  5. Tom Crown Says:

    What can I say about Michael Talve? He use to call me to broker ski trips for him and his sausage friends when he was in high school. I always gave him three tips in order to strive in the business world.

    1) Achieve your targets
    2) Close the deal
    3) Enjoy your success

    He followed those three tips and look at him today. He told me he just leased a 2009 S550. I can’t believe he picked it up.

  6. Jimmy Guerra Says:

    Michael is a good friend of my nephew, Tony “The Spaccone” Thomas. They would often come stay at my estate in Palm Beach. I am going to be honest, I got a bad first impression of Michael. The first time he stayed at my estate, after the first night in his quarters:

    1) The water in his bathroom sink was left on
    2) The sheets were down
    3) Yet, the oddest thing of all. Was that the bracket for the bed he was using, was leaned up against the wall!

    I realized that it was not in fact his fault. It was my spaccone nephew’s fault. I would take Michael to Whole Foods to find me the finest natural products. He knew at least 100 products on the shelves, ranging from the manufacturing of the product to the distribution channels they utilize. That’s when I knew this kid was going to be somebody some day. Congrats on the S550. My buddy Vic just picked one up.

  7. Frank O Butler II Says:

    I am very exciting for Michael and his thriving business. I would play tennis and then bathe with Michael at the Bath and Tennis club in Palm Beach before eating an $18 hot dog. He would often critique the Aveda soap which was complimentary in the bathing facilities. I have never met anybody so knowledgeable about soap. He knows this industry very well and will definitely make a name for himself in the near future.

    Sincerely,
    FOB II

  8. Dean LeFenook Says:

    I use to be the concierge at Michael’s apartment complex near Captain Thebes. He would often grease my palm to walk his poodle, Willy, 2-3 times a day. I use to get frustrated with Michael because he would get 100’s of packages a day, containing soap samples from all over the world. Yet, Michael taught me a great deal about soap and I found it very interesting. Everyday, Michael would spend two hours in the pool area dipping only his piggies into the water while on the cell phone. I always thought he was on the phone with his Goomah, yet he explained to me after that he had a daily conference call with his suppliers in Togo and that was the most convenient time for them. Michael is a first class guy, all the way. Enjoy your success.

  9. Liz Fontaine Says:

    Michael, I am so proud of you! Your soap is amazing and I really enjoy using it. My skin has never felt better! In Whole Foods Union Square, the staff told me it is one of the best selling items in the department! Congratulations! Lets get together soon I want to hear about your travel plans / itinerary for Africa! Ciao! - Liz

    PS: Is this guy Todd for real??!! Since when do you like tequila??!! When I saw you last, if I remember correctly, you were into drinking Fiji Waters and healthy fresh fruit / vege juices!

  10. Susan Diaz Says:

    Hi Michael,

    We spoke at the trade show in NYC last month- you probably will remember me because I was allergic to many soaps and beauty products. Just letting you know that your VIVO soap leaves my skin feeling incredible and well nourished. It is great and I have been telling everyone about it! Best of luck to you! Sincerely, Susan

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