Personalized products can eliminate swag an iPersonalyze Whitepaper: The Coming Transformation of the Promotional Products Industry Overview: The 17 billion dollar promotional products industry has an image problem. When you ask someone if they know about the promo industry they will inevitably respond with ....oh yea....giveaways....cotchkies.....swag....trinkets and trash...that junk? This is a real kick in the teeth for an industry who primary reason for existence is the building up of brand equity. Institutionalized Problems: In addition to reputation issues as wasteful purveyors of junk the industry has core structural problems hanging over from outdated 20th century business model thinking. 1. A fragmented, leaderless industry. The largest companies have less than 2%. 2. Eroding Margins. With commodity pricing as office products companies have come into the industry and the number of distributors has increased gross margin have eroded. 3. Declining ROI. As margins decline capital investments in mass production equipment inhibits new investment in digital decoration technologies that offer new opportunities. 4. Rising Cost Per Impression. All advertising is about the number of positive impressions obtained from the dollar expended. As the desirability and reputation of promo merchandise has declined the resulting cost to the corporate buyer per positive impression rises. 5. Management Brain Drain. With a dubious industry reputation, commodity minded pricing, low compensation has driven away the creative talent needed to differentiate customized products. 6. Social Media Introverts. Always slow to adopt emerging technologies the industrys baby boomer management is confused and befuddled by new social media and mobile trends. 7. B2B Programs Take Forever to Set-UP. The bread and butter corporate program business is burdened with dated legacy software of a different era. A typical big program takes 12 weeks to setup. This is far too long. One to One Marketing Strategies could be the solution.
Posted on: Fri, 14 Mar 2014 19:17:24 +0000
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