Branded Merchandise Proves Profitable for Brands

Posted Friday, December 05, 2014

PHOTO: Stihl Outfitters branded cap
PHOTO: Stihl Outfitters branded cap

What do tractors, soft drinks, power tools, candy and motorcycles have in common -- besides being products manufactured for consumers (CPGs)?

Answer: John Deere, Coca-Cola, Stihl, Hershey’s and Harley Davidson all offer their loyal fans branded promotional products, merchandise and apparel for purchase.

Fueled by sales of t-shirts, caps and pens, branded promotional products, also known as ad specialties, make up a nearly a $20 billion dollar industry and are used by virtually every business in America. Promotional product sales have been rising for 5 years in a row, according to ASI (Advertising Specialty Institute) supplier and distributor sales reports.  The industry is growing at over twice the rate of the US economy, says ASI.

The value they bring to brands includes increased brand recognition and reach, all at a cost per impression of $.006, a rate lower than the cost of advertising on TV, in magazines or newspapers.

Beyond advertising, some retailers and CPG’s

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Tags: Coca-Cola , CPG , eCommerce , KDM Branding Solutions

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Is Showrooming an Insurmountable Threat to Retailers?

Posted Friday, September 27, 2013

KDM custom merchandising display
KDM custom merchandising display

Have you ever visited a store and saw a product you liked, but then purchased it online (usually at a lower price) instead of from the store? That’s called "showrooming". With 106 million people in the U.S. owning a smartphone, consumers can now shop in a brick-and-mortar store with the internet immediately accessible. As a result, retailers are concerned that showrooming will drive more and more customers to leave stores without a trip to the cash register.

A study on the subject released this month by Columbia Business School and Aimia, a company that builds retail loyalty programs, sheds light on how consumers are actually using their mobile devices in-store, and what strategies retailers should consider to engage these mobile-assisted shoppers (M-Shoppers). The study examined 3,000 consumers in the US, UK and Canada.

Sample findings from the study:

  • 21% of all consumers are M-Shoppers, using their mobile device to help them with their purchase decision
  • Only

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Tags: eCommerce , interactive marketing , KDM Merchandising Solutions , KDM POP Print Solutions , KDM Retail , Kroger , showrooming , Walmart

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Small Retailers Have Big Opportunities

Posted Tuesday, July 23, 2013

To learn more about how KDM can help you succeed at retail, contact us today!

While big retailers get the lion’s share of the industry’s attention, it’s the individual mom and pop stores that drive much of the U.S. economy’s retail sector. According to the 2007 economic census, only roughly 550 retailers had revenues over $250 million. The vast majority of retailers (over 475,000) had revenues under $5 million, which is the revenue threshold the Small Business Association considers “small business.” Beyond revenue, close to 80% of all retailers have less than ten employees and over half have less than four, making them a significant source of jobs in the U.S.

While their individual contributions to the economy might be marginal, as a group, small retailers have a big impact on the retail industry at large. They also have a significant impact on local economies. Sage North America, a provider of software to small businesses recently found that 68% of

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Tags: eCommerce , KDM Branding Solutions , KDM POP Print Solutions , KDM Retail , KDM Technology Solutions , specialty retail

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Branded Items Popular With Consumers

Posted Tuesday, May 28, 2013

Next time you walk in a store, take a look around. Where do you see the retailer’s logo and other brand marks? Signage obviously, but where else? Uniforms, name tags, floor mats, decorative items and shopping bags are common opportunities for branding. Once you leave the store, you might even feel like the retailer has followed you home. You may feel that way because retailers and their consumer packaged goods (CPG) suppliers go beyond their merchandise real estate by giving branded ad specialty or promotional items, such as pens, magnets, and keychains, to their customers. For most, it’s about mind-share, but for some, these types of programs have been so successful that consumers are literally willing to pay for products that advertise the brand.

A recent study conducted by Relevant Insights, on behalf of Promotional Products Association International (PPAI) found that eight out of 10 consumers own between one and 10 promotional products, six in 10 keep them for up to two years, and

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Tags: ad specialty , ASI , eCommerce , KDM Branding Solutions , market-wise , PPAI

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Key Trends for Grocery Retailers & Wholesalers

Posted Wednesday, May 08, 2013

submitted by Barry Hogan, Retail Specialist, KDM POP Solutions Group ~ 

We serve some of the nation’s largest supermarket and grocery retailers. We like to keep a finger on the pulse of this industry and often ask what our clients see as emerging trends. While there is a lot of variance in the responses, many can be bucketed into four common themes: grocery customers want value and they use technology to find it. On top of that, competition is evolving and capturing market share - both online and via their own brick-and-mortar stores.

Consumers Want Value
Since the recession of 2008, shoppers have become more price conscious. They’re working harder for less money and are focused on stretching every dollar to the max. Low price is important, but it’s not the end of the value conversation. Consumers are also looking for more variety and placing increased emphasis on locally-sourced items. They want better quality, including items that are more organic and healthy. They&

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Tags: eCommerce , grocery , interactive marketing , KDM , KDM POP Print Solutions , market-wise , millennials , private label , supermarket , Trouble in Aisle 5 , Walmart

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