COMPETITION - Original Works
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Transcript COMPETITION - Original Works
COMPETITION 2012
Lori Cotillo
Spring 2012
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TRAINING OUTLINE
• Introduce key competitors
• Outline their backgrounds
• Discuss strengths and weaknesses
• Review Original Works strengths and unique
selling proposition
• Present methods of reducing competition impact
on your business
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Competitive Profile: Art To Remember
Established player, in business for approximately 15 years
Based in Indianapolis, IN. Always had a strong presence in the mid-west
but have expanded their geographic reach
Mimics Original Works. Programs are an exact knockoff of ours
OP program – theirs is called Preview Art
SBYB program – theirs is called Preview Magnet
Tile Wall
Magnet Wall - OWY will be discontinuing this program effective FA12 but ATR
still advertises it
Sales Model: Direct mail, telemarketing & trade shows
www.arttoremember.com
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Art To Remember: Strengths
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Paper provided. Size for both programs is
the same: 8 x 10.5”
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Free S/H on wholesale orders of $300 or
more
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SRP provides 33% profit margin; also
offers custom pricing option
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Identification labels for artwork/order
packets
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Free sample products, posters and flyers
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Pre-stuffed parent envelope – preprinted
to write name, teacher, order deadline
date.
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Appealing features with some products:
– Placemat
– For horizontal artwork, one
large picture
– For vertical artwork, 2 sideby-side images
– Ceramic tile – comes w/display stand
– Mug – larger image with year
– Magnet – although not laminated,
theirs is a thicker mil
– Choice of 3 ornaments
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Provides $25 gift certificate
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Says direct billing – no money up front.
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Extensive Product Line – 33 products
Lesson plans
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Art To Remember: Weaknesses
Product Quality
Magnet is not laminated
Placemat is simply laminated artwork
Artwork does need to be sent back in for the order phase with their
magnet program.
Longer turnaround time
Do not know if they actually scan artwork. If so, how long they keep
scanned images?
They don’t have you!
Limited field sales, service or support. This is a tremendous competitive
advantage for us.
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Competitive Profile: Square 1 Art
• Based in Atlanta, GA, this competitor was formed in 1999 by
two former Original Works employees. Their current
programs include:
• Free Product program with free page of ‘squickers’
• Great Wall of Art - tile wall
• Great Quilt Wall – quilt blocks – “a mobile option”
• Their sales model is direct mail, telemarketing, trade shows.
Limited sales force, though attempting to expand.
www.Square1art.com
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Square 1 Art: Strengths
Market knowledge & experience
Prepaid UPS shipping labels
Well developed selling
proposition:
Offered free s/h of products to
school this Spring if school had a
minimum of 150 pieces of
artwork (normally, they charge
to ship products to school)
Free product with each child’s order
Squickers – page of stickers
Free personalization on select products
Custom catalog with child’s name and
artwork
Broad product line - 33 products
Provide 20% overage on art
paper
Offer 33% profit margins on all products
Achieve 45% participation and earn 38%
profit margin
Offers custom pricing option
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Square 1 Art: Weaknesses
Free product hurts overall program participation & profits
The customer generally pays all freight charges (SQ1 did run a special this
Spring to offset that)
Program reservation form ask school if they want to charge parent a small amount
to their orders to defray shipping costs of their products. State that most schools
ask from $1 - $3; any amount over actual shipping costs is additional profit
Paper size (8.5” x 8.5”) limits creativity
Open-ended delivery dates. Dates to receive take home packets and
products are noted as ‘approximate’ dates.
Turnaround time is almost double OWY
Limited field representation and customer service support
Product quality
Does not allow additional/late orders
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Competitive Profile: Silver Graphics
• Established in 1995, Silver Graphics is a regional
competitor based in upstate New York
• Women-owned. Believe they operate with a
small staff.
• Significantly increased their selling efforts in the
school marketplace in the last few years
• Company literature states they donate portion of
profits to The Conservation Fund
www.silvergraphics.com
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Silver Graphics: Strengths
• Large product line –
approximately 34 products in all.
• SRP offers 33% profit margin
• Provides free shipping on
programs with 100+ students
(required)
• Individualized order form with
student’s name and artwork
• Accept artwork in sizes up to 12” x
16”
• Teacher receives free CD of
student’s art
• Scanned artwork back to 2005
• Online Gallery – password
protected
• Tile Walls have a variety of tile
finishes and sizes to choose
from
• Offers school two free 3.5” x 4”
prints of each child’s artwork
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Silver Graphics: Weaknesses
• Paper is not provided
• Accepting multiple sized artworks likely may not be
producing the best quality image
• Product quality has been an issue
• No local sales representation
• Limited customer service staff
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Original Works: Competitive
Advantages
• Leadership Position
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Most experienced
Largest provider
Proven track record
First rate customer service
High level of product quality
Nationwide presence
• Strong infrastructure - seasoned team of sales,
marketing, customer service, manufacturing and
finance professionals
• Product satisfaction guarantee
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Original Works: Competitive Advantages
Two large scale manufacturing facilities to efficiently handle the volume of
business we receive
12-day processing! Fastest turnaround time in the industry with no
‘approximate’ ship dates
Local representation
Product line that is wanted and popular – no fillers
Competitive profit margins
Free materials, samples, paper, lesson plans, pre-stuffed parent packs
Industry knowledge
The Art Room
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Beating the Competition Starts with You
• Appreciate your schools
• A note, a phone call, $5 gift card
• Follow-up
• Email, newsletter, what’s new
• Sign repeat schools quickly
• Sign early, secure your business!
• Stay in touch
• Don’t let the competition get there first!
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Know Your Customer & What Makes Them Buy
ASK QUESTIONS! – open-ended questions
What is going on in their school?
You are on the front lines
Who are the current contacts?
Keep in touch, follow-up, district/in-service meetings
What are their needs? Have they changed? Pay
attention to clues!
Just a little bit of effort!
Reveals changes, needs, competitors that have surfaced
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Learn Your Business Well
• Knowledge is a competitive edge
• Know your products and programs
• Understand how they apply to your prospect’s needs
• Collect as much information as you can on your
competition:
- Programs
- Products
- Service
- Price
- Location
- Promotion
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SUMMARY
• Competition is part of our business. It justifies the market and
makes us stronger
• You have more control over competition than you think. Know
your customer and understand what makes them buy
• Leverage the competition and make the presence of competition
work for you
• Understand your competitor’s strengths and weaknesses. Look at
them objectively – through the eyes of a customer
• Exploit weakness in a strategic fashion
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