The Association of Retail Environments recently surveyed its members, mostly designers and producers of store fixtures, to learn about how 2009 went and how these members see 2010 unfolding. They found that, among the 90 companies that responded, the median sales decline in 2009 was 25%. On the flip side, these same respondents expressed a median expectation that sales will increase 10% in 2010. More detailed analysis will be forthcoming in the May/June issue of Retail Environments magazine.
Tusco Display participated in this survey and doesn't find the results surprising. Companies across all industries have shrunk and feel chastened by the depths of our experiences. Today's Wall Street Journal (3/2/10) highlights some of the facts concerning larger companies. If it's true for them, it's even truer for us smaller enterprises. Politicians, pundits and our own people eagerly want us to rehire and get growing but most business owners and managers will go slow, letting our clients and markets drive us to increase capacity.
Brand marketers like The Hershey Co aren't going slow - thankfully - as they gear up for Easter season and the blooming of increasing demand. They are putting their marketing money where consumers spend theirs: in the store. Armed with new insights into shopper behavior and new tools to reach shoppers where they make most of their buying decisions, they are investing a sizable chunk of their $300 million budget to remake their in-store presence.
As shoppers return to stores and increase their buying, brands and retailers will be there to meet them at the point of decision. And that should make the anticipated 10% increase in store fixtures and point-of-purchase displays look wildly conservative a year from now.
Tuesday, March 2, 2010
Tuesday, February 23, 2010
The Medium Is the Message
Back in 1964, Marshall McLuhan famously told the marketing community what we always knew but never fully faced: the media we employ influence how our messages are received. The tools we choose influence the message our audiences receive.
One of the most popular tools these days is "mobile marketing." How do I get my product on your phone? Will consumers allow me to text them cool things about my products that may interest them? Do I email them electronic coupons? How do I connect? Mobile is de rigeur today.
As much time as I spend on my phone, I find such attempts often clumsy and irritating. Do you? Even products I buy, enjoy and admire feel like clutter when they're hitting my smartphone. "Don't call/text/email me; I'll contact you, thank you very much."
By contrast, when I go into a store, I expect - even demand - that I be given valid, timely information by the store staff, point-of-purchase displays, graphics and product packaging. I'm geared up to shop and to potentially buy when I cross that store threshold. I expect to connect with product messages when I'm in a store. When it comes to buying products, my message as a shopper is: the store is the right medium.
One of the most popular tools these days is "mobile marketing." How do I get my product on your phone? Will consumers allow me to text them cool things about my products that may interest them? Do I email them electronic coupons? How do I connect? Mobile is de rigeur today.
As much time as I spend on my phone, I find such attempts often clumsy and irritating. Do you? Even products I buy, enjoy and admire feel like clutter when they're hitting my smartphone. "Don't call/text/email me; I'll contact you, thank you very much."
By contrast, when I go into a store, I expect - even demand - that I be given valid, timely information by the store staff, point-of-purchase displays, graphics and product packaging. I'm geared up to shop and to potentially buy when I cross that store threshold. I expect to connect with product messages when I'm in a store. When it comes to buying products, my message as a shopper is: the store is the right medium.
Monday, February 1, 2010
The Last Three Feet
Have you seen one of the latest Allstate TV commercials? The spokesman asks how the viewer will look back on the Great Recovery. I like it because it recognizes that a recovery is underway and encourages us to think about putting the Great Recession behind us. Who's ready to see better times? Say "Aye."
Ad Age magazine talks about this and other ads (http://adage.com/article?article_id=141846#comments) today. It led me to ask a slightly different question: How will MARKETERS look back on the Great Recovery? Did they ramp up their promotion of their brands in time to speak effectively to customers when they started feeling better about their lives? Were they ready to go when the shopper returned to the store?
Many marketers and CPG companies are scrambling today to redefine their value propositions. As they do so across a range of marketing platforms, e.g., TV, print, mobile, out-of-home, they must execute superbly at-retail. If your product isn't found interesting - or found at all - when and where the shopper visits the store, you're out of the game. With 95% of all purchases made in a store, getting the last three feet of the marketing plan right remains essential.
Ad Age magazine talks about this and other ads (http://adage.com/article?article_id=141846#comments) today. It led me to ask a slightly different question: How will MARKETERS look back on the Great Recovery? Did they ramp up their promotion of their brands in time to speak effectively to customers when they started feeling better about their lives? Were they ready to go when the shopper returned to the store?
Many marketers and CPG companies are scrambling today to redefine their value propositions. As they do so across a range of marketing platforms, e.g., TV, print, mobile, out-of-home, they must execute superbly at-retail. If your product isn't found interesting - or found at all - when and where the shopper visits the store, you're out of the game. With 95% of all purchases made in a store, getting the last three feet of the marketing plan right remains essential.
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