FUTURE PROOFING:A Roscommon company founded during the last recession has gone from strength to strength and is now one of the biggest employers in the county
LIKE MANY of the best business ideas, P&G cards had its genesis in a recession. Run by the Naughton family, and now one of the biggest employers in Co Roscommon, it was founded in the 1980s.
Founder Pauline Naughton was working as a nurse but, following cutbacks in the health service, she began helping out in a newsagents run by her sister. It was here that she spotted a business opening. “I had always loved greeting cards, and could see they were a strong seller. I began to ask where these greeting cards came from and realised there was an opening for a wholesaler in Ireland,” she says.
P&G cards was set up in 1988, from a small warehouse on the family farm in Athleague, with the help of a £2,000 loan from AIB. The company began importing cards from Britain and bought a van for distribution. One of its first contracts was with the local supermarket and the company was soon supplying 100 small shops along the western seaboard.
A major break was securing a listing with Musgraves in the early 1990s. “Musgraves were the up-and-coming multiple in Ireland,” says Pauline. “Getting a contract was a huge boost for us.” Following the contract, PG implemented a number of changes, including a computerised distribution system, and extended its existing facility at Athleague. The company also took on its first employee, a trainee from Fás, who still works there.
A business course with Roscommon Enterprise Board followed. “I had come from a non-business background, and had no specific experience or training in business, so the course was hugely beneficial,” explains Pauline.
The company also received business advice on scaling and soon signed a contract with BWG, the owners of Spar and Mace.
Over the ensuing years, Pauline’s two daughters, Aisling and Michelle, joined the business. Michelle, who has a degree in marketing and French, set about finding new business for PG, eventually securing a contract with Dunnes Stores, where PG is now the premium card supplier.
“It took eight months of me ringing every day for them just to speak to me,” she recalls.
Over the past five years, P&G cards has undergone significant reinvention, helped in part by business advice from Pat Sutton of Kildare-based O’Kelly Sutton, which specialises in helping SMEs scale up. A major turning point was the decision to introduce in-house design.
“Five years ago, we made the decision to design our own cards, rather than buy them wholesale,” says Pauline. “It was a major departure for us.” The company opened a design centre, hiring a creative director with 25 years’ experience. The design part of the business now employs seven people, designing and distributing P&G’s own product.
It also began to move into export markets. “Around two years ago, when the recession struck, we had to look at our business model,” says Michelle. The company presented at a key export retailer event at Islington Design Centre in London, where it met a number of buyers from around the globe, including an Australian who is now a major distributor of PG products down under.
P&G also exports into the UK, Malaysia, Portugal and South Africa. “Essentially we changed from being an importer to an exporter,” says Michelle.
Today, P&G is one of the biggest employers in Roscommon, with about 60 people, a figure which doubles to 120 at peak times. While most of the product is sourced in Asia, the company is looking at getting product from printers in Ireland, as business costs continue to fall here.
According to Michelle, one of PG’s key advantages is the quality of product, and the company places a strong emphasis on design. “The card industry is closely connected to fashion. Some of the trends or colours that are prevalent in fashion or household products come through in cards.” PG has a bank of 3,000 designs, about half of which are replenished each year. “Like fashion, you have to be fresh, and on trend, or customers just won’t buy.”
The company also has a sophisticated supply-chain system which can identify the rate at which cards are sold in different retailers. “It means we know what’s in every pocket in every stand, and can analyse regional variances and demographics.”
After that, it’s about looking after the customer. “Personal contact is what distinguishes us from global competitors,” says Pauline. “Yesterday, we were up at 5.30am to drive to Tralee to a customer, and our international customers know they can speak to us directly on the mobile at any time. Having the personal touch is crucial.”
