OPPORTUNITIES IN
THE RETAIL MARKET
A vertical focus for approaching new clients
2015
Companies you interact with
The Market Defined
Retailers sell merchandise, generally without altering
it and deliver servi...
Top Trends For This Market
• Retail companies have more customer data than ever before
• Mall attendance is in decline…ret...
4
Channels Used in Direct Marketing
Retail has been quick to embrace
using multiple channels in their
direct marketing eff...
5
Cost:
Provide alternatives to
show flexibility
Multiple Channels:
Are they being used as
effectively as they can?
Did you know that the average
annual external print spend in
the retail segment equals
$28,000?
6
According to InfoTrends…...
Retail organizations have a wide
variety of marketing
communications needs. All of
these needs provide a tangible
opportun...
Bringing More Value
One way to differentiate your
company is to provide unique
materials that enable higher value
printed ...
Hair Care Salon:
Build rewards programs to
reduce guest churn
9
Campaign Results
• Response rates between 14% - 20 % depending on segment
• Advertising to sales ratio: 6 to 14 pieces for...
The retail market provides many
revenue opportunities for you as a
print service provider. The
opportunities include these...
Mohawk MakeReady provides
practical tools and actionable
information for digital printers
like you.
12
We can help…
Visit:...
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Opportunities in the Retail Market

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For most print service providers, their biggest challenge is identifying and capturing new clients--especially in this highly competitive marketplace. One often overlooked strategy is looking to vertical markets for new revenue opportunities. To better assess your capabilities to serve vertical markets, you need to first understand their behaviors and service needs.

This presentation on the Retail Market is part of a series of PowerPoints created to help you better understand, and target, six of the highest value verticals according to InfoTrends.

Let’s get started. Do you have any retail clients in your portfolio? If not, you may be missing out. The retail industry consists of over 725,500 firms employing more than 15 million people, according to US Census data.

Brought to you by Mohawk MakeReady, this presentation can be used for your internal training purposes.

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  • For most print service providers, their biggest challenge is identifying and capturing new clients--especially in this highly competitive marketplace. One often overlooked strategy is looking to vertical markets for new revenue opportunities. To better assess your capabilities to serve vertical markets, you need to first understand their behaviors and service needs.

    This presentation on the Retail Market is part of a series of PowerPoints created to help you better understand, and target, six of the highest value verticals.

    Let’s get started. Do you have any retail clients in your portfolio? If not, you may be missing out. The retail industry consists of over 725,500 firms employing more than 15 million people, according to US Census data.

    Brought to you by Mohawk MakeReady, this presentation can be used for your internal training purposes.
  • Retailers sell merchandise, generally without altering it and deliver services related to the sale of those products. Retailers fall into two categories: store retailers and non-store retailers.

    Store Retailers
    Fixed point-of-sale locations designed to attract a high volume of walk-in customers. In general, retail stores have extensive displays of merchandise and use mass-media advertising to attract customers.

    Non-Store Retailers
    Organized to serve the general public, but their retailing methods differ. The establishments in this group reach customers and market merchandise with methods including e-commerce, “infomercials,” direct-response advertising, paper and electronic catalogs, door-to-door solicitations, in-home demonstrations, portable stalls (street vendors, except food), and vending machines.

    NAICS 44/45: Retail Trade

    MakeReady Tip: Both segments of this industry rely heavily on marketing communications to entice buyers. Could you improve on what they’re currently doing? Could you create a more compelling offer that would have enticed you to make a purchase?

  • Understanding the current and upcoming trends for a particular market can help give you insight on activities that may influence their decision to bring on a new vendor. According to a recent study by InfoTrends, these are four main trends for the retail market. Any one of these could affect a client’s buying process. For instance, this industry has an immense amount of customer data and needs ways to effectively target consumers through multiple channels including print, web, and mobile. Hello, personalization. Meet immense opportunity.

    MakeReady Tip: This market understands the importance of a good marketing mix and the value of print. Use this to sell not only high quality digital print, but also multi-channel services such as PURLs, QR Codes, and E-mail.
  • When the retail industry was asked by InfoTrends what the average number of media types used in direct marketing campaign, the response was overwhelming. Over 81% of respondents indicated they use multiple channels to target their audience. And just under over half indicate they use 3-4 channels, on average. The market understands the need for multiple touch points over different mediums. Think about how many things you receive from your favorite retailer. Maybe a coupon in the mail, or an email advertising an upcoming sale. Take advantage of this opportunity to sell your capabilities.

    MakeReady Tip: If you have the capability to provide product or services other than print, the retail market would be an excellent market to approach. A majority have come to expect that a good, integrated marketing campaign will incorporate print with other channels.
  • The retail segment faces many challenges that can ultimately provide opportunities for print service providers. Two of these primary marketing-related challenges include: a lack of understanding about marketing channels (not to be confused with the awareness that a majority of them have), and, realistic campaign costs.

    As far as marketing channels, position your company as the organization’s outsourced marketing partner to help alleviate this challenge. Explain the advantages of a good marketing mix—including print, online and email. Think about what you can offer. Can your company provide managed campaign services? Project Management? Targeted e-mail?

    Who isn’t challenged by managing cost? You can illustrate your value by showing them how they can shift dollars around a campaign to different channels. Some of these may reduce the overall cost, and thus your revenue, but you’d be surprised what a corporation would pay for a good idea. It doesn’t always mean it will be the least expensive.

    MakeReady Tip: Show them the value of a targeted, consistent message spread across multiple channels. Explain the benefits of each channel and how a good mix can help mitigate risk when testing a new channel.
  • Did you know that the average annual external print spend in the retail segment is $28,000? This could be annual revenue coming into your business.

    Where is this revenue going now? A recent InfoTrends study indicates that 50% of the business is going to commercial printers, 33% to Office Super Stores, and 20% to franchise printers and graphic design firms, and 50% to self-serve copying and printing services. Two takeaways from these numbers: 1) retail companies are using different vendors for different types of jobs, and 2) all of these types of print providers utilize digital equipment.

    Of those surveyed, 36% expect to increase external print spending on promotional material. This could be more potential revenue in your pocket once you demonstrate the value your company would bring to the table.

    MakeReady Tip: Sell the value of personalization for the retail industry’s target market. Since a buying decision is ultimately the end goal, someone is more likely to respond to marketing communications if they are tailored to them rather than mass market.
  • Retail organizations have a wide variety of marketing communications needs. All of these needs provide a tangible opportunity for your company’s services. Here is a list of some of the most common uses as determined by a recent InfoTrends study.

    Top 5 Marketing Communications
    Signage and point-of-sale Advertising (65.4%)
    e-Mail marketing (65.3%)
    Printed directory, such as Yellow Pages (62.6%)
    Printed direct mail (57.4%)
    Newspaper advertising (55%)


  • How can your printing business capture some of this business? You need to bring something more than just your capabilities. You need to bring value. One way to differentiate your company is to provide unique materials that enable higher value printed products to be created. Let’s take a look at how Mohawk Specialty Digital Substrates can help you provide this value to your retail customers.

    We discussed printed direct mail and signage as a type of print collateral being produced by some retail organizations. Here are some specific examples of how new Mohawk Specialty Digital Substrates can be used for this type of application and environment.

    Synthetic Materials
    - Choose any of the moisture, wear resistant PVC or Polyester sheets for durable hang tags or shelf talkers.

    Pressure Sensitive Materials
    - Use Pressure Sensitive materials to create personalized window signage or sale tags.

    Magnetic Materials
    - Get a charge out of magnetic materials! Create calendars, shelf talkers, or brand magnets.

    Embedded Card Materials
    - Use these materials for customer appreciation cards, gift cards, or retailer network correspondence.

    Mohawk Specialty Digital Substrates are designed for the entire range of digital color production presses including those using high heat to fuse toner as well as HP Indigo ElectroInk.

    For more information, visit www.mohawkconnects.com/products/digital
  • Now that we’ve discussed tangible applications you could sell into this market, let’s take a look at customer case study for selling printing and ancillary services.

    Fantastic Sams is the largest full service, value-priced hair care salon chain in North America. They needed a way to support the direct marketing needs of their franchise owners to reduce guest churn and increase business. Two loyalty program initiatives were developed to communicate with customers through direct mail postcards and email. The first program was designed to influence buying behavior of new, active, and lost guests. The second program was designed to impact retention by providing rewards. The postcards are highly personalized with 27 variables including name, images, offer, salon location, reward status and copy.

    (This full case study can be found at www.PODi.org.)
  • The ability to target segments through variable data helped play a role in making this campaign a success. They experienced a high response rate of 14%-20% (depending on the market segment) and strong up-sell performance, particularly with female guests who never had a color service. Members using Fantastic Rewards spent almost 33% more than an average transaction during their visit! Overall, their objective was satisfied by their efforts.

    Customer satisfaction not only makes it easier to gain repeat business, but it can help you win similar business from new clients. Explain the potential ROI of a project to help sell. Use data and real examples to demonstrate how you have helped your clients achieve their marketing goals.

    MakeReady Tip: Use case studies of your existing clients to help win similar business from new clients, particularly if they are in the same vertical.
  • If you’re not already pursuing it, the retail market provides numerous revenue opportunities for you to capture. It really boils down into these main opportunities for this market that your company can address:

    It’s the second largest market in the United States. You probably have daily interaction with a retail business of some size.

    Franchise operations (like Fantastic Sams) need centralized procurement and fulfillment solutions. Enables national control of local initiatives.

    Retail stores have excellent data on their customers. I’m sorry, did you say data? Personalize me, please!

    Consumers are reducing their time spent window shopping at malls.

    Retail marketers understand that they need to leverage numerous media channels and over 50% of marketing spend is used for print.


  • Digital printing is changing…and fast. That’s why we created Mohawk MakeReady. A go-to place for guidance, insights and tools to keep you prepared for what’s next.

    There’s a reason we named this service MakeReady … a little irony, too. Taking a familiar industry term in a new direction, Mohawk MakeReady offers ways for you to make more efficient use of your time, material, people and entrepreneurial energy. To grow your digital printing business, you need to be prepared — with actionable information and tools — so your team can implement best business practices, craft effective sales strategies, and create opportunities to use and promote new high-value products.

    That’s what you’ll find here: an ever-expanding site, rich with content built on the experiences of digital printers like you.

    As a leading manufacturer of digital substrates, Mohawk brings you practical wisdom gained from our experience in sales, marketing, production, and operations. With how-to articles on marketing your business, videos on topics like precision sheeting, and PowerPoint presentations showcasing how to identify sales opportunities. All strategies you can put to work today.

    Talk to us. Let us know what’s on your mind. Mohawk MakeReady. Dedicated to making you ready for the exciting future ahead.
  • Opportunities in the Retail Market

    1. 1. OPPORTUNITIES IN THE RETAIL MARKET A vertical focus for approaching new clients 2015
    2. 2. Companies you interact with The Market Defined Retailers sell merchandise, generally without altering it and deliver services related to the sale of those products. Retailers fall into two categories: store retailers and non-store retailers. 2 Source: InfoTrends 2011
    3. 3. Top Trends For This Market • Retail companies have more customer data than ever before • Mall attendance is in decline…retail business need to be mobile, social and engage in precision marketing • Increased number of media channels used to reach customers • More than half of the marketing spend is allocated to print 3 Source: InfoTrends Capturing the Cross Media Direct Marketing Opportunity 2010
    4. 4. 4 Channels Used in Direct Marketing Retail has been quick to embrace using multiple channels in their direct marketing efforts. If you’re company can provide more than print, there’s definitely opportunity to grab a piece of the pie (or donut, rather). One, 9.4% Two, 29.2% Three, 43.3% Four, 8.3% Unsure, 9.4% Source: InfoTrends Capturing the Cross Media Direct Marketing Opportunity 2010
    5. 5. 5 Cost: Provide alternatives to show flexibility Multiple Channels: Are they being used as effectively as they can?
    6. 6. Did you know that the average annual external print spend in the retail segment equals $28,000? 6 According to InfoTrends… Source: InfoTrends’ Capturing the SMB Communication Services Opportunity 2009
    7. 7. Retail organizations have a wide variety of marketing communications needs. All of these needs provide a tangible opportunity for your company’s services. So, what are they producing? • Signage • Point of sale advertising • E-Mail marketing • Print directories • Printed direct mail • Newspaper advertising 7
    8. 8. Bringing More Value One way to differentiate your company is to provide unique materials that enable higher value printed products to be created. Let’s take a look at how Mohawk Specialty Digital Substrates can help you provide this value to your retail customers. 8
    9. 9. Hair Care Salon: Build rewards programs to reduce guest churn 9
    10. 10. Campaign Results • Response rates between 14% - 20 % depending on segment • Advertising to sales ratio: 6 to 14 pieces for one sale • Members using Fantastic Rewards spent almost 33% more than an average transaction • Strong up-sell performance, particularly with female guests who never had a color service 10 Source: PODi.org
    11. 11. The retail market provides many revenue opportunities for you as a print service provider. The opportunities include these key products and services: Why You Should Consider Pursuing this Market • Campaign management • Database management • Data-driven personalization • Cross media services • High-quality digital print • Mailing & Fulfillment 11
    12. 12. Mohawk MakeReady provides practical tools and actionable information for digital printers like you. 12 We can help… Visit: www.MohawkMakeReady.com for more tools, to request a meeting, or to join the community.

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