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We enhance the quality of life…period.

July 26, 2011 by Charlie

The plethora of benefits provided by flowers, shrubs, and trees is not common knowledge, let alone ingrained in modern day American culture. Humans often have difficulty in even seeing flowers or plants in their own environment, much less connecting plants to tangible benefits – a phenomenon called plant blindness. For most people, flowers and other plants are a part of the subconscious sector of mental life, perceived as the backdrop, not the main actors in the playing out of our everyday lives.

All industry firms need to emphasize these types of “benefits” messages in the marketing efforts of their individual companies. A new publication that summarizes these benefits is entitled Economic, Environmental, and Health/Well-Being Benefits Associated with Green Industry Products and Services: A Review and was published in the Journal of Environmental Horticulture (Issue 29(2):96-103) thanks to the Horticultural Research Institute. Since previous efforts on the part of the industry to provide a united voice through a generic advertising campaign (e.g. Got Milk) have been met with a less-than-enthusiastic response, firm-level marketing of these benefits may be the best alternative (in the short run) to propagate the quality of life value proposition.

Of course, one industry-wide effort that is already in place that has shown to be quite effective in conveying this message is America in Bloom (AIB). Now in its tenth anniversary, the program has countered early naysayers by effectively not only conveying the industry’s message of beautification, but one of economic development, provision of environmental amenities, and enhancement of health and well-being as well. Almost 200 cities and several million citizens have been exposed to AIB’s message; undoubtedly benefiting the countless local businesses in those trade areas. One such business owner stated publicly at this year’s OFA Short Course that they had experienced an 8 percent increase in business during the period their city had participated in America in Bloom. While this alone is impressive, it is exciting to consider that as AIB continues to expand, even more synergistic benefits will likely result.

There is an old adage that says: “If you always do what you’ve always done, you’ll always get what you’ve always gotten.” This latest economic downturn has certainly caused us all to do some things differently than we had been doing them previously. We’re doing more with fewer people and in some cases, fewer resources. But as we move into the future, even more aggressive marketing will be needed to ensure that we are considered as necessities in our consumers’ lives and not mere luxuries. Now is exactly the time to make those strategic marketing investments both as individual firms and through industry-wide efforts.

Filed Under: Uncategorized Tagged With: America in Bloom, benefits of plants, differentiation, value of landscaping, value proposition

Super Bowls ads disappoint

February 10, 2011 by Charlie

This pretty well sums it up:

“The sorry state of advertising affairs was certainly on display at the Super Bowl ad fest. The few commercials that worked were simple and straightforward. They started with a basic premise about the product and they drove it home in a compelling and uncomplicated way. But way too many ads were so complicated and elaborate that I couldn’t tell what the product was trying to get across.”

Missed the commercials or just want to find out about which ones were the most liked and which ones had the best best brand recall (hint: they don’t always match up)…click here for the analysis from Advertising Age. Probably a few implications for the green industry, huh?  Also interesting is the use of social media to pre-release the ads and also in measuring effectiveness.

Filed Under: Uncategorized Tagged With: differentiation, market research

Who will survive the downsizing?

August 4, 2010 by Charlie

Click here to see a short (02:13 min) video clip regarding the downsizing we’ve seen in recent years in the green industry.

Filed Under: News Tagged With: differentiation, trends, value proposition

America in Bloom receives award

June 24, 2010 by Charlie

America in Bloom has been named to the 2010 Associations Advance America Honor Roll, a national awards program sponsored by the American Society of Association Executives & The Center for Association Leadership in Washington, D.C.

The prestigious awards program recognizes associations that propel America forward – with innovative projects in education, skills training, standards setting, business and social innovation, knowledge creation, citizenship, and community service. Although association activities have a powerful impact on everyday life, they often go unnoticed by the general public.

“America in Bloom’s program truly embodies the spirit of the Associations Advance America campaign. It is an honor and an inspiration to showcase this activity as an example of the many contributions associations are making to advance American society,” remarked Associations Advance America Committee Chair Ping Wei.

If folks in the industry would like to support AIB financially, now is the time to do it. Between now and the OFA Shortcourse, AIB is conducting one of their main fundraising events of the year — the AIB Raffle. Proceeds from the raffle and other fundraising events help America in Bloom fund numerous projects for communities and their citizens such as—webinars on plant varieties that perform well in the landscape, an annual educational symposium, and community awards.

Wouldn’t it feel good to put $5,000; $1,000, or even $500 in your pocket? If you purchase an AIB raffle ticket you just might be one of the lucky cash prize winners! The 2009 raffle generated over $30,000 in funding for America in Bloom. Buy your raffle tickets online using their secure form today!

Filed Under: News Tagged With: America in Bloom, differentiation, education, value of landscaping

Spring Pack Trials Excursion for Greenhouse Growers

November 13, 2009 by Charlie

A bus trip for greenhouse growers is being planned to next year’s California Spring Pack Trials from April 9 -13, 2010. Dr. Mark Bridgen of Cornell University, along with Dr. Brian Krug of the University of New Hampshire, Dr. Roberto Lopez of Purdue University, and Dr. Neil Mattson of Cornell University, have organized an intense, educational trip to several of the key Spring Trial locations. The trip is designed specifically for greenhouse growers and other horticulture professionals.

The trip itinerary is jam-packed; the days begin early and continue at a fast pace late into the evening. Attendees should plan to arrive on Friday, April 9 and will stay at a designated hotel near the San Jose Airport. The journey begins at 7 a.m. on Saturday, April 10, when the bus departs from the hotel. That first day, the group will visit Golden State Bulb Growers in Watsonville, Syngenta Flowers/Goldsmith Seeds in Gilroy, Speedling (along with exhibitors Thompson & Morgan, GreenNex USA, Hem Genetics, MasterTag, Plant Source International, and Schoneveld Twello) in San Juan Batista, and Sakata Seed in Salinas. Participants will stay in Salinas on Saturday night.

On Sunday, April 11, the day will begin with a 2 hour bus drive to San Luis Obispo, where the first stop will be Dummen USA. After a short drive to Arroyo Grande, the group will visit Greenheart Farms. The last stop of the day will be in Santa Barbara where the participants will visit Jiffy along with their exhibitors Northern Innovators, Skagit Gardens, and Florist de Kwakel.

Monday, April 12, will be a busy day beginning with the bus departing at 7 a.m. and driving for an hour to PlantHaven. Following this stop, the group will arrive at Ball Horticultural Co. in Santa Paula where displays of PanAmerican, Ball FloraPlant, Kieft Seeds, and Selecta varieties will be featured. Lunch will be hosted by Ball. In the afternoon, Green Fuse Botanicals in Oxnard will be visited along with GroLink. If time allows, the last stop of the day will be in Somis, CA to visit Suntory.

Participants will spend Monday night at a hotel in West Hollywood, CA. This hotel is conveniently located midway between the Los Angeles (LAX) airport and the Burbank Airport. There is a shuttle service and taxi service to both of these airports from the hotel.

This package trip includes the cost of first class hotel accommodations for four nights from April 9-12, bus transportation from San Jose on the first day to West Hollywood on the last day, lunches for 3 days, and experienced guides. Participants need to arrange their own transportation into San Jose on April 9 and out of West Hollywood on April 12, and cover their own dinner costs. A travel agency is available to assist with these reservations (go to the website listed below). The cost of the trip will be $450 per person in a double room or $720 per person for a single room. These rates are based on 47 participants and will be adjusted slightly if minimum capacity is not met. The trip is subject to change and may be canceled if minimum capacity is not met.

**Space is limited** Register by January 29, 2010 to reserve a seat on this trip. For on-line reservation, go to www.concepts.us.com and click on Event Registration at the bottom left of the site. Be sure to go to the site labeled: Greenhouse Growers Spring Trials 2010. If you have questions, contact Dr. Mark Bridgen at mpb27@cornell.edu or at 631-727-3595.

This group trip to the 2010 California Spring Pack Trials is a new, one-of-a-kind venture for growers! All greenhouse growers and floriculture professionals are invited to attend. It is an opportunity to meet fellow growers, breeders, and other plant company representatives to share ideas, update your understanding of what’s happening in our industry, and travel with trained professionals.

Filed Under: News Tagged With: differentiation, growers, promotions

What a difference a value proposition makes!

September 9, 2009 by Charlie

From today’s Harvard Business Daily Stat:

76% of frequent fliers would switch airlines in order to have Wi-Fi access in the air, according to a new survey by Wakefield Research and the Wi-Fi Alliance. 71% would prefer Wi-Fi over a meal, and 55% would change their travel plans by a day to avoid being out of touch during the flight. 94% say Wi-Fi is “the best thing airlines have done” in the last three years.

OK, admittedly these are stated versus revealed preferences, but obviously, such behavioral change in a relatively short period of time requires a value proposition that is compelling and relevant.

Makes me wonder what value propositions we are putting forth in the green industry that would cause similarly stark behavioral change??? Could it be emphasizing the quality of life enhancements that we offer???

As usual, feel free to weigh in with your own thoughts…comments welcomed.

Filed Under: News Tagged With: differentiation, strategy, trends

Retail Holiday Outlook

October 22, 2008 by Charlie

Two independent surveys project the troublesome holiday outlook for retailers:

  1. According to the National Retail Federation’s (NRF) 2008 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch, U.S. consumers plan to spend an average of $832.36 on holiday-related shopping, up a paltry 1.9 percent over last year’s $816.69. This represents the lowest increase in planned consumer spending since the survey began in 2002.
  2. A Deloitte survey released Wednesday was a bit more bleak in its findings. Almost six in 10 consumers said they would reduce spending this holiday season. Shoppers plan to spend about $532 on gifts, down 6.5 percent from last year, and buy fewer items. Nearly seven in 10 consumers said they would wait for store sales, cut back on shopping trips to save gasoline and use more store coupons.

From an earlier post, I quoted BusinessWeek.com saying:

“Call it a customer service Christmas. Consumers are expected to rein in spending this year, and the retail climate favors big-box stores that can offer bargains. But because small retailers can’t win price wars, experts say independents need to leverage their biggest advantage over the chains: personal relationships with customers and the ability to deliver superior service. With some economists predicting one of the weakest Decembers since 1991, retailers that falter could face a cold winter.” For the entire story, click here.

Another good quote I came across today:

“In the current economic environment, consumers are looking for value,” said Stacy Janiak, Deloitte’s U.S. Retail leader. “Heading into the holiday season, retailers will be well-positioned by emphasizing their unique value propositions, whether that means price, customer service, loyalty programs, or some other metric important to their customer base. In addition, given the current credit situation, retailers should take a close look at their financing options and conduct scenario planning, particularly with respect to liquidity issues.”

Since retail firms in the Green Industry should NEVER compete solely on price, they MUST differentiate their product and service offerings. Refer back to previous posts on differentiation strategies (click on the differentiation link on the right-hand side of this page) as a reminder of why this is so important!

Filed Under: News Tagged With: differentiation, retail, retail sector

Starbucks vs The Little Guy

August 30, 2008 by Charlie

As anti-corporate crusaders are now discovering, instead of advocating for legal prohibitions on chain stores or attempting to zone the offending businesses off of Main Street USA, mom-and-pop shops can successfully combat the coffee behemoth by using old-fashioned market competition.

Click here to view the ReasonTV video called “Starbucks vs the Little Guy“

Filed Under: News Tagged With: differentiation

Solving the cost-price squeeze

August 29, 2008 by Charlie

According to Table 10 in today’s BEA report, real disposable personal income increased in July by 1.2% compared to July last year, following a 3.4% annual increase in June and 6.3% increase in May. Both growth rates (May and June) were above the 2.6% average growth in real disposable income since 2001, following 7 months (October 2007 to April 2008) of below-average growth.

Although real disposable income growth showed weakness in the last quarter of 2007 (0.6%) and the first quarter of 2008 (-0.7%), the above-average, year-to-year growth rates of 6.3% (May) and 3.4% (June) contributed to an 11.4% increase in real disposable income during the second quarter 2008 (see Table 6), one of the biggest quarterly increases in history, largely due to the Economic Stimulus Act of 2008.

Couple this increase in real disposable income with the core inflation rate holding relatively steady (see 8/15/08 post) and this means that [a sizable portion of] our end consumer in the green industry has the means with which to purchase our products and services, but do they have the desire — particularly at the prices we must charge in order to cover our current cost-price squeeze?

My friend, Lloyd Traven of Peace Tree Farm, just reiterated to me of how tough it is for growers right now given the “20% increases in pots, film, chemicals, and 30+% for fertilizers, soil, etc—and don’t forget to add energy, labor, etc. BTW, medical just went up again, and let’s not forget tuition.” The recent news of Hines Nursery’s bankruptcy (and the rumors of others pending) also reminds us that no one is immune from the effects of this cost-price squeeze.

But the key question is what to do about it? Logic would tell us there are only two options — either (1) employ the supply side strategy of continuing to shave costs out of the value chain internally or (2) opt for the demand side strategy of increasing price. Anyone who has been reading Making Cents for a while will readily know that I have been pushing for growers to embrace both strategies, but particularly option #2 (click on the differentiation tab on the right hand side of the page to view relevant posts).

On the flip side, however, never underestimate the value of a regimen of lean flow analyses on your value chain activities. Several growers at the Seeley Conference related some impressive cost savings testimonials to the rest of the group. You might want to give Gary Hudson a call if you’re interested in finding out more about lean flow. Also check out recent issues of Greenhouse Grower and GMPro for lean-related articles.

Stay tuned on more on the cost-price squeeze topic later…

Filed Under: News Tagged With: costs, differentiation, pricing, Seeley Conference

Seeley Conference Begins Today

June 22, 2008 by Charlie

For the next several days, I will be participating in the Seeley Conference here at Cornell University (for more info, see www.hort.cornell.edu/seeleyconference). The topic of the day? One of my favorites, of course, differentiation in the marketplace!

As you have heard me say in previous posts many times, in a time of heightened rivalry resulting from a maturing marketplace, firms need to differentiate themselves from the competition. This year’s topic — “Profit Squeeze: Is Differentiation the Solution?” — addresses changes in the industry’s marketplace, focusing on differentiation and innovation as ways to achieve success.

Stay tuned for insights gleaned from the conference!

Filed Under: News Tagged With: differentiation, Seeley Conference

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