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Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
Sales and marketing in a down market
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Sales and marketing in a down market

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Sales and marketing in a down market - How to sell value not price. This slide show focuses on selling the intrinsic value of niche and luxury brands rather than discounting.

Sales and marketing in a down market - How to sell value not price. This slide show focuses on selling the intrinsic value of niche and luxury brands rather than discounting.

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  • 1. Sales and Marketing in a Down Market: How to Sell Value Not Price Recession overview Understanding value Case studies Guerilla Marketing tools eMarketing tools Food trends
  • 2. Sales and Marketing in a Down Market: How to sell value not price
    • Premium and luxury brand marketers are now facing their biggest challenge in decades:
    • How to resist degrading their brand by selling price in a sustained down market
  • 3. This program was designed for premium, high value marketers
    • Passionate and firmly committed to their brand
    • Committed to maintaining their special form of brand integrity
    • Possibly benefit from the current economic “situation”
    • Sell value as a recession strategy
    • Wolfgang Puck
  • 4. About Presenters
    • David Schwartz
    • Katie Schwartz
    • SOS, a premium brand marketing company
    • Since 1984 - Branding, marketing, consulting and e-marketing premium brands
    • Clients: Godiva, Hain/Celestial, Mercedes Benz, Caffe D’Amore Whole Foods Market
  • 5. SOS at Fancy Food Show
  • 6. Recession & Price cutting
    • Market dipped September 2008
    • Current recession started December 2007
    • Credit markets dried up
  • 7. The recession
    • 11 economic recessions since 1945
    • Defined by 2 quarters of negative Gross Domestic Product
    • Average duration of a recession has been 10 months.
    • Predicted to last until early 20010
  • 8. Recession in perspective
  • 9. Price cutting in shrinking economy
    • Shrinking markets
    • Pressure on the supply chain to cut prices
    • Destructive reaction
    • No reason to cut price if value is demonstrated
    • Don’t let your pricing be a victim of a hatchet job
  • 10. Price cutting strategies
    • Revenue loss comes out of margin
    • Not sustainable for a prolonged period of time
    • Cut price: Short term sales promotions only
    • Do not lower price indefinitely, send wrong signal
  • 11. Understanding your market: Where to spend
    • Recession is a contraction of your market
    • Spend majority marketing dollars with active customers:
    • 60% Active customers
    • 30% Inactive customers
    • 10% Prospective customers
  • 12. Maintain higher margins
    • Be in high margin/medium to low volume business
    • Not in a low margin/high volume business
    • Don’t try to compete against discounters
    • Sell value, not price
  • 13. Differentiation + Reinvention
    • Customers buy price or value
    • Undifferentiated businesses fail
    • You business must be differentiated - Positioning
    • It is OK to reinvent yourself
    • Reinvented brand: IBM 1889 - Business machines 1955 – Punch card computers 1981 – PC’s 2005 – Software, consulting
  • 14. Cost cutting
    • Sharpen your pencil
    • Create and enforce efficiencies
    • Best ingredients/materials at lowest prices
    • Ask your existing vendors to help find ways to save you money
    • We should all be doing this, all the time
    • Insist on measurable marketing
    • Marketing ROI
  • 15. Understanding Value
  • 16. Value
    • “Value” is important and misunderstood
    • Definition: “The monetary worth of something”
    • Everything has a value
    • Value is relative to values of customers
    • Know your customers
    • Know what your customers value
    Rolls Royce – Aspirational value
  • 17. Core value is “Brand value” Robert Mondavi
  • 18.
    • Culture
    • Identity
    • Business Plan
    • Benefit
    • Promise
    • Quality
    • Taste
    • Performance
    • Aspiration
    Core value is “Brand value”
  • 19. Value is “Presentation”
  • 20. Value is “Presentation”
    • 85% of value
    • Packaging: “Trade Dress”
    • Point of sale
    • Location, lighting, cleanliness, orderliness
    • Customer service
    • Sales and customer service on-going training
  • 21. Value is “Benefit”
  • 22. Value is “Benefit”
    • Benefit beyond quality, taste, prestige
    • Implied health
    • Energy
    • Functional
    • Rationalizations: Organic Fair trade Natural Non-GMO Vegan No-Trans fats Gluten free
  • 23. Case Study: “Presentation”
  • 24. Selling Value: Case study Godiva – “Presentation”
    • Since 1928, Belgium
    • Founded by Master Chocolatier Joseph Draps
    • Handcrafted packaging
    • Multi-channel sales strategy
    • Positioning: Leader in premium confectionary category
    • “Taste”: Bought as “gift”
    • POS dominance
  • 25. Case Study: “Exclusivity”
  • 26. Selling Value: Case study Illy Coffee – “Exclusivity”
    • Since 1933, Trieste, Italy
    • Founded by espresso machine inventor, Francesco Illy
    • Unique espresso blend & innovative packaging
    • Positioning: Super premium espresso
    • Only sells through premium channels – “Aspirational”
    • Multi-channel sales strategy
  • 27. Case Study: “Service”
  • 28. Selling Value: Case study Zabar’s – “Service”
    • Since 1934, New York
    • “Best quality at fair price”
    • Retail, mail order – 500,000 customers
    • Family members run day-to-day business
    • Excellent customer service
    • Positioning: “Zabar’s is New York, New York is Zabar’s”
    Saul Zabar
  • 29. Break :15 Next: Value Marketing Tools Guerilla Marketing eMarketing Traditional Marketing
  • 30. Value marketing tools: High impact – Low cost
    • E-mail marketing
    • Web 2.0 Social networking
    • Guerilla marketing
    • Web optimization/SEO
    • PPC – Google AdWords
    • Traditional media
  • 31. Guerilla Marketing
    • Viral
    • Creative
    • Humor
    • Loyalty
    • Fanaticism
    • Continuity
    • Word of mouth Red Bull Flugtag
  • 32. Guerilla Marketing: SOS Case History
    • Viral marketing street “farm animals” event
    • Kickoff retail redevelopment
    • Gourmet food oriented
    • Raised awareness, investment capital, city support
  • 33. Web site optimization/SEO
    • Keywords In tag In URL Density in doc text In anchor text In headings
    • Links Anchor text in inbound Origin of inbound From similar sites From .edu & .gov Number of backlinks
    • Metatags
    • Content Unique Freq. content change
  • 34. Pay Per Click/PPC Google AdWords
    • Keyword auction
    • Scalable pricing
    • You pick demographics
    • Competitive
    • Less effective than “organic”
    • Other Google programs
    • Measurable analytics
    • Must integrate with other programs
  • 35. E-Mail marketing-Pro Active
    • E-mail promotions
    • Strategy/Objectives
    • Landing page
    • Sticky site
    • Opt-in lists
    • Affinity lists
    • Newsletters
    • Measurable Analytics
  • 36. Web 2.0
    • Cross platform Social networking
    • Customer in control Create community
    • Drive traffic to your site
    • Billions involved
    • Special interests
    • Blogs
    • Facebook
    • Twitter
    • YouTube
  • 37. Social Networking
    • Future of marketing
    • Customer driven
    • Marketer “influence”
    • Marketer becomes part of social networking fabric – or not
    • Create social network brand
    • Demographics: 12 – 45 GenX & GenY
    • Peet’s Coffee shown
  • 38. Paid links: Use sampling to build customer database #1 Gmail link
  • 39. Paid links: Use sampling to build customer database #2 Landing Page
  • 40. Paid links: Use sampling to build customer database #3 Opt-in page
  • 41. Traditional value media
    • Sales promotions Short term “2 for 1” Couponing Co-op advertising TPR’s Rebates
    • Multiple sales channels
    • Alternative sales channels
    • Trade Magazines
    • Trade shows
    • Broadcast
  • 42. Value selling
    • Consultative selling strategy
    • Guerilla selling tactics
    • Pioneering
    • Dedicated sales force
    • Reps & Brokers
    • Distributors as sales reps
    • Sales management
    • Shakti with Whole Foods
  • 43. Trends Giada De Laurentiis
  • 44. Culture: Comfort, Rewards, Frugal, Benefits, At-Home
    • Home Gourmet – Giada “Every Day Italian”
    • Traditional comfort foods – Mac & Cheese, Chocolate Chip Cookies, Meatloaf with Artisan/Exotic ingredients
    • Buy from Wal-Mart and Whole Foods Market
    • Lunch out, not dinner
    • Pre-prepared gourmet food
    • Variety, healthy, conscious
  • 45. Food: Variety, Simplicity, Frugal, Value, Benefit
    • Frozen ethnic – Indian, Asian
    • Benefit F&B – Teas, waters, foods
    • Artisan – Anything
    • Single Origin - Anything
    • Chocolate – Exotic, Stone ground
    • Noodles – Ramen, Udon, Soba
    • Smoked foods – BBQ craze
    • Regional – Produce, coffee roasters
    • Blog rated, not critic rated
  • 46. “ We cannot direct the wind, but we can adjust our sails” Bertha Calloway “We just stayed after it” Sam Walton “Sell value” SOS
  • 47. Selected Resources
    • Research
    • http://reports.mintel.com
    • http://naturalspecialtyfoodsmemo.blogspot.com
    • www.webconfs.com SEO Tools & Webmaster Utilities
    • www.specialtyfood.com
    • Web sites/Books/Magazines
    • Guerilla Marketing online/Print
    • Web Marketing for Dummies /Print
    • Positioning-The Battle For Your Mind /Print
    • Internet Retailer online/Print
    • Sam Walton – My Story /Print
  • 48. Q&A: Top 10 FAQ 2008
    • We need more sales
    • We need better quality accounts
    • We need alternative markets
    • We need to sell outside our niche (ethnic, Kosher, etc.)
    • We need to expand to foreign markets
    • We need to sell direct to stores
    • We need to sell to end user consumers
    • We need to look more premium
    • We need to get (more) distributors
    • We get lots of web traffic, little sales

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