Other Recent Articles
Yes, Virginia, There is a Santa Claus
Nearly every forecast on retail spending for the current holiday season is negative. Consumers routinely say they are going to spend less and the recently released numbers for October’s retail sales certainly support the claims. But a review of specific spending plans points to a few bright spots and the potential for increased marketing. Britt Beemer of America’s Research Group reports that nearly half of parents will try to spend a ‘normal’ amount on Christmas presents for their children.
Here are a few other trends Beemer’s research has revealed:
- The shopping season will be later than usual this year as consumers wait for bargains.
- At least half of consumers will be scanning newspaper inserts in their search for reduced prices.
- Stand-alone stores may see more business than mall-based stores.
Share this data with your locally-owned toy retailers and remind them that a great ad campaign run in early December could bring traffic through their doors.
[Source: Bleak Christmas 2008 Forecast, America's Research Group, 11.12.08]
Preparing for a Drug Shift from Rx to OTC
If you work with pharmaceutical firms that sell prescription drugs which will soon be sold over the counter (OTC), the news may not be all bad. A Nielsen Healthscape Consumer report on consumer behavior during Zyrtec’s transition from prescription to OTC drug status revealed three important trends:
- Consumers who take a specific medication under prescription may not buy the medication when it is available as an OTC drug and in Zyrtec’s case, the percentage of existing users who stayed with the drug after conversion was lower than expected.
- Consumers who take other OTC drugs may switch to a drug that comes out of the prescription market because they perceive it as being more powerful or effective.
- Some consumers who believe a prescription drug is relieving their symptoms will continue to purchase the drug as an OTC product despite higher costs. A significant percentage of  Zyrtec users did not change to a less expensive alternative.
The study indicates that consumer behavior is not easy to predict, however, specific marketing campaigns to address major consumer concerns could help a drug maintain or increase market share. The Healthscape Consumer report indicates that several prescription drugs will shift to OTC status in the next few years so now may be a good time to review drug status with your pharmaceutical clients.
[Source: Consumer Behavior, Managed Care and RX/OTC Switch, Nielsen Whitepaper, November 2008]
Interest in Alternative Workspace Strategies Means Growth for Mobile Technology Vendors
As more companies turn to distributed operations, the demand for alternative workspace strategies (AWS) is expected to grow. This shift should be accompanied by higher demand for products and services that increase efficiency and improve communications abilities for mobile workers. A recent study by Microsoft reveals that nearly 75% of corporate real estate professionals believe the demand for flexible office space will grow significantly in the next three years. While the flexible office space trend will impact commercial realtors, it will also require IT service firm expertise.
Mobile and remote workers will need to access the corporate campus in the following ways:
- Web conferencing
- Voice over IP
- Video conferencing
Remind your technology services clients to market the solutions they can provide to local businesses who commit to implementing successful alternative workspace strategies.
[Source: Core Net Global Release, November 10, 2008]
Changes Could Bring Growth to Package Supply Industry
Packaging supply firms may be feeling the pinch of a slowing economy, but recent changes could give the industry reason to feel optimistic and to increase B to B marketing.
Food manufacturers have been shrinking the product sizes they are producing in lieu of raising prices to cover their higher costs. This shift means package suppliers need to resize and in some cases, redesign packaging. New packaging could call attention to product features and benefits and distract consumers from the manufacturer strategy of reduced volume.
In an effort to observe greener practices and reduce waste, Amazon is changing the type of packaging it uses in an initiative labeled Frustration Free Packaging. Amazon officials reason that the expensive clamshell and related packaging that encase products in a typical bricks and mortar store are primarily meant to deter shoplifters. This type of packaging is unnecessary in a warehouse and distribution business model. The firm plans to ship products with more environmentally friendly packaging throughout its system by the end of next year.
Both of these trends mean it could be the right time for packaging supply firms to win new clients by emphasizing their ability to quickly modify existing practices and to introduce innovative, green friendly materials. Remind your clients that marketing in trade publications or via a personalized e-mail campaign could open the door to new business.
[Sources: "Valliant, Melissa, food Manufacturers Shrink Containers Instead of Raising Prices, DrugStoreNews, 11.11.08; Amazon Plans to Deep Six Clamshell Packaging," Internet Retailer, 11.05.08]
Help Your Confectioners Find a Market this Holiday Season
As we move into the holiday season, confectioners will be ramping up their marketing campaigns. At the manufacturer level, confectioners represent a diverse group when it comes to food production. While most food production segments are dominated by a few large companies, at least 300 firms share the 30% of the candy production market not controlled by the top contenders such as Mars and Hershey’s. This tiered structure means smaller producers generate $8.46 billion in sales at the retail level and many of these producers sell directly to consumers. Over half of the candy and gum market is dedicated to chocolate and nearly 25% of candy sales occur at ‘other’ outlets meaning a strong business exists both online and in gift shops.
Remind your specialty confectioners about the latest trends:
- Sales of dark chocolate rose over 50% in 2007.
- Chocolate manufacturers have begun marketing tasting events that combine chocolate with wine.
- To boost sales, manufacturers are also using urban names for upscale chocolates or producing event-specific merchandising items. This trend could be particularly important in the B to B gift market - for example, favors to be handed out at this year’s scaled down company parties.
Review the rest of the details outlined in the Annual Review produced by the National Confectioners Association and then work with your local chocolate manufacturers to develop a marketing program for the upcoming holiday season.
[Source: 2007 Annual Review, National Confectioners Association]
