Try these promotional ideas to knock your customer dead.

by Rich Vurva

Sure, these are difficult times. Competition is tougher than ever and increased sales are hard to come by.

But even if sales are down 50 percent in your market, it means five out of 10 people are still buying. Your job is to find ways to reach them to generate more sales for your company.

One way is to develop promotions designed to grab the customer’s attention.

Most manufacturers are eager to work with distributors in their promotional efforts and some will do the lion’s share of the planning. Distributors and manufacturers agree that successful promotions involve both channel partners early in the planning process.

“When I think of killer sales promotions, I think of a promotion that incorporates the outside sales organization of both manufacturers and distributors. You set out common goals — whether it’s a new product introduction or increased sales with a particular product — that incorporates both the manufacturer and the distributor. Everybody must win, and there’s agreement over whatever the measuring criteria might be,” says Rich Poole, vice president of marketing for the distributor buying and marketing group IBC based in Hartford, Conn.

Promotions should be a key part of any marketing mix, according to Larry Davis, vice president of marketing for wholesale distributor ORS Nasco in Muskogee, Okla.

“The marketing mix consists of four key areas: product, price, distribution and promotion,” Davis says. “Each of these areas influences the purchaser’s final buying decision.”

Davis says the product is the primary driver and must solve a buyer’s need or want in order for the buyer to start the purchasing cycle. Even if the product is a great fit, price must be competitive or the buyer will go elsewhere or find a substitute. Product availability is another key factor in the purchasing cycle, because there must be a distribution network that enables customers to get the product when they need it.

Promotional activity completes the marketing mix, Davis says.

“Visibility is extremely important,” he says. “If a customer doesn’t know about a product or how to obtain it, they can’t consider buying it. Promotions give the product the market exposure it needs to be considered during the purchasing cycle.”

The best promotional efforts involve more than simply printing flyers advertising a discounted price, according to Dave Thompson, president of Kennedy Manufacturing Company in Van Wert, Ohio. While such a promotional effort might briefly increase mind share with distributor salespeople and end-user customers, that’s not an effective way to generate profitable sales.

“We prefer to start off the promotion with a sales meeting where we can explain the features and benefits of the new product to distributor salespeople,” Thompson says. Kennedy then helps salespeople target end-users most likely to use the product, suggests places where they might find prospects, followed by joint sales calls with Kennedy salespeople and the distributor salespeople.

“When we follow this approach, we tend to be a lot more successful. A promotional program has to hit on all cylinders or it won’t be effective. Otherwise, it’s just another flyer,” he says.

Focus on the customer
Promotions don’t have to be product oriented to be successful. In fact, promotions focused on helping end-user customers achieve their objectives will likely gain better results than a traditional product-centered effort.

For example, Kennedy’s first-quarter promotional program in 2004 focuses on the lean manufacturing concept that is growing in popularity with manufacturers. It includes a flyer distributors can customize that briefly explains the lean manufacturing concept, which is the process of reducing all activities on the shop floor that do not add value.

The flyer also explains 5-S, a Japan-based lean manufacturing housekeeping methodology to clean and organize the work place, and demonstrates how Kennedy tool storage products can help companies maintain a clutter-free workplace.

“The 5-S manufacturing initiative is a strong vehicle for us right now to get on the plant floor,” Thompson says. “Anything that you do that doesn’t add value is wasted. Any time that you spend looking for the right tool is wasted. With this flyer, we’re trying to help the distributor salesperson be more comfortable with opening the conversation about lean manufacturing.”

Demonstrate your value
Tom Aldridge, senior vice president of Industrial Distribution Group (IDG) in Atlanta, agrees that effective promotions should do more than simply offer customers a product at a cheap price. Done well, they can position your company as a valuable resource for customers.

“When you look at lean manufacturing and the downsizing that’s taken place in plants, people don’t want to be sold things today. They want you to tell them how you’re going to save them money,” says Aldridge.

“Promotional pieces that we’ve done — and we plan to do more — position us as the company that can help customers reduce their costs, improve their business and their productivity. That’s more in sync with what the industry is looking for,” he says.

For example, IDG recently developed one safety-related print promotional piece. While it included a smattering of safety products, the piece focused heavily on safety seminars and training IDG offers customers.

“Rather than taking the approach that we have a special on respirators or eye wear or some other safety product, it was a positioning piece to get the customer thinking that when they need safety, IDG is the place to go. It was meant to reinforce that we are experts in safety.”

Keep it simple
Promotions don’t have to be complicated. Some, like Ridge Tool Company’s Pole Position contest, generate excitement and enthusiasm with minimal commitment from distributors.

The contest offers winning contestants a free trip to Florida to experience a one-day class at one of the nation’s premier auto racing schools. Using the theme “Satisfy your need for speed,” it also highlights the launch of the company’s newly redesigned family of fast-acting RapidGrip pipe wrenches. There is no purchase required to enter the contest. End-users register online at www.rapidgrip.com.

Ridge provides distributors with posters and counter mats to promote the contest and also puts promotional stickers on point-of-purchase tool packaging. The RapidGrip Web site lists participating stocking distributors to drive end-users to their specific locations.

“We designed the promotion in such a way to impose as little as possible on the distributor and their staff,” says David Schramm, Ridge Tool’s hand tool product manager. “There are no forms to fill out or long, drawn-out sales pitches or speeches needed to assist the end-users. There is nothing for the distributor to keep track of or record. Hopefully, we’ve created a win-win situation for all sides.”

Make it fun
Hirsch Pipe & Supply Co. in San Juan Capistrano, Calif., is a promotions and marketing machine. Director of marketing Bob Berumen and his assistant are constantly on the lookout for new ideas for promotions.

Its latest promotion, called Crack the Code, was designed to draw customers into its newest location in San Marcos, Calif. By making a purchase at the store during a limited timeframe, customers earn a chance to enter a six-digit code in a display box decorated to look like it is filled with cash. Multiple purchases and invoices of more than $100 earn additional chances. By entering the pre-programmed code numbers in the proper sequence, the customer wins $25,000.

Other promotions, like its recent Hooked on Hirsch effort, involve a dozen or more suppliers. When customers purchase products from a sponsoring supplier, they earn points toward events such as a fishing expedition off the coast of Southern California, tickets to NASCAR racing events or the chance to compete in indoor go-cart race competitions.

Each year, the company also gives away free trips to an exotic vacation spot. Last year, 181 customers accumulated enough points to earn a trip to Costa Rica; this year, Hirsch Pipe & Supply will take customers on an outing to the Fiji Islands.

Berumen uses direct mail to promote programs to targeted customers and carefully tracks month-to-month and year-over-year sales results by product, by customer segment and other categories to determine the success of each effort.

In simpler promotional programs, Hirsch may award T-shirts or sweatshirts to customers who purchase products from a designated supplier.

“We see a value in these prizes. We’ll always develop some type of program behind each prize, even a T-shirt. If you just give someone a free gift, there’s no value behind it,” says Berumen.

Whether you follow a traditional product-focused approach to promotional activity, or promote your services and capabilities in more creative ways, one thing is certain. Devoting time and money to developing promotions that draw attention to your company can help you gain sales at the expense of your competition.

This article originally appeared in the January/February 2004 issue of Progressive Distributor magazine. Copyright 2004.

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