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Marketing in this economy
Below is a link to a good story from NPR this morning about how companies adapt their marketing to this economy.
http://www.npr.org/templates/story/story.php?storyId=99995412
The marketing experts they interviewed raised some interesting points, including cautioning folks against marketing too much on price even when you know consumers are getting price conscious.
What do you all think, particularly the garden centers? How are you adapting your marketing efforts?
http://www.npr.org/templates/story/story.php?storyId=99995412
The marketing experts they interviewed raised some interesting points, including cautioning folks against marketing too much on price even when you know consumers are getting price conscious.
What do you all think, particularly the garden centers? How are you adapting your marketing efforts?
Tags: advertising, marketing
Replies to This Discussion
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Permalink Reply by Andy Seckinger on -
Bob
Agree with your thoughts. If you don't have the low cost position, don't try to sell on low price.
Also just a thought for Garden Centers. One of the positions you may have is that of better quality, plants. If you price at the same as box stores or perhaps a competitor who is in trouble you may weaken your quality position. While this example may be rough at this time. What would you say if a Car dealer offered you a Cadillac for the price of a Chevy. Most peoples first reaction is "What's wrong with it?"
My 2 cents.
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Permalink Reply by Andy Bittner on -
Quality is the key to surviving the box stores degradation of our price point. I know and many have said that to get a quality plant from one of the box stores you have to be there when the truck pulls up to unload. It is true that some individual stores have caught on but overall this is the case. No one wants to go thru the trouble of installing a load of plants just to watch them die. If you advertise and provide a great product people will catch on. I have witnessed many grower/retailers thrive on this concept!
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Permalink Reply by Berl Thomas on -
Bob, I have the feeling that fresh flowers, pot flowers (plants with flowers) and bedding plants will do well in an economic downturn, however, landscape green plants, green trees, tropical green plants will be off significantly. In other words if it has a flower it will make people feel good and if it is only green it is not so exciting. Foliage plants or landscape plants with colorful foliage should be the best sellers when people do want to landscape, relandscape or look for that specimen plant for their yard or patio.
Consumers want to feel good and this means buy flowers or eat chocolate. It is time for growers to think color and companies like PW and Walter's Gardens have a great chance. No plant should be sold without having a large photo label of the flower the plant will produce (not a small stick tag in the pot). Reduce the risk of the plant not having a flower at the point-of-sale, use a label. Many growers make the mistake of assuming the plant will retain the flowers they see on the plant when it leaves their greenhouse, only to drop-off due to ethylene or water-stress. MasterTag does a great job in this area. More effort should be made to make customers feel good with sight, sound and smell. Consider these senses in your retail centers and I agree not to focus on price. Berl
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Permalink Reply by J. Lombardi on
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One of the advantages of not being a retailer (green or otherwise) is my point of view is always a little different. I would like to suggest that all my favorite garden centers need to rethink how they are apporaching this season. People buy the sizzle not the steak. So, sell home and hearth. Just like in the Allstate commercial, people are going to be focus on "enjoying the little things." Women like nothing better than nesting, so help them nest. Sell the things that will last, beautiful yards that show off thier homes. Don't worry about the boxes, they are having enough of their own problems. Connect with your customers based on your unique offering. You can't position yourself to be everything and since value is not the position you want to own, go for truly unique! Nesting, enjoying the little things, lasting beauty ... that's the position in your customers mind you want to own. Hope this (non-retail) point of view helps someone...J.
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Permalink Reply by Bob West on -
Interesting post this weekend by Dr. Charlie Hall at Texas A&M on this topic. By the way, if you haven't subscribed to the RSS from his blog, check it out. Charlie -- who is a new columnist to Greenhouse Grower -- offers the best analytics regarding the economy and our industry. His blog can be viewed at http://ellisonchair.blogspot.com/, and his most recent post is about Marketing in this Economy. Here's a snapshot of it...
Marketing during a recession
How should your marketing change because of the recession? Harvard professor John Quelch has eight tips for Marketing Your Way Through a Recession:
1. Research the customer. Instead of cutting the marketing budget, you need to know more than ever how consumers are redefining value and responding to the recession. Price elasticity curves are changing. Consumers take more time searching for durable goods and negotiate harder at the point of sale. They are more willing to postpone purchases, trade down, or buy less. Must-have features of yesterday are today's can-live-withouts. Trusted brands are especially valued and they can still launch new products successfully, but interest in new brands and new categories fades. Conspicuous consumption becomes less prevalent.
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Permalink Reply by Peter M. Domino on -
Shoppers will continue to "shop around" and Customers will frequent the places they "trust". I think we'll continue to hear the phrase "can you do any better" cause shoppers know you want/need their business. There's a power play here in that female shoppers know they are in control and they're not shy about expressing it. It's how you handle these shoppers that's wicked important.
I continue to use the expression "shop were you feel comfortable mam". Thereby I don't have to defend my pricing or explain differences between my product and box store product.
I have also stopped giving out information on products purchased elsewhere. My reasoning is simple: if you didn't or can't now get useful advice on the product you purchased elsewhere then you probably didn't pay for it and hence you didn't value it at your time of purchase. If I give you that advice now for free then it in turn has no value. You buy what you get and you get what you buy. I also don't wish to form a partnership with someone and their product if that product isn't mine in case the consumer fails with my advice.
I am also phasing in "dual pricing". 1 price for cash/check and another for credit/check card/debit. It is legal in MA. Too many consumers just carrying their plastic for a small convenient purchase.
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