The economic waters are turbulent and difficult to navigate.

IMPACT OF CURRENT ECONOMIC ENVIRONMENT

Despite the sales increases of 2006 and 2007, in 2008 the economy effected the industry's sales growth.  The 2008 economic downturn resulted in business and consumer spending decreases causing declines in most major promotional products end-buyer markets which will no doubt be reflected in 2008 promotional product sales. While the numbers are not all in yet, more than 1.5% sales declines have been reported already in some quarters.

The turbulent economic environment and eventual economic tsunami in the final months of 2008 will also result in an even more competitve market with the residual surplus of suppliers and products from the 2006 and 2007 industry boom all competing for the shrinking number of potential sales dollars.

The promotional products market today is crowded and noisy.

Key Industry Trends have caused both mass and targeted marketing to become increasingly difficult for promotional product companies of all sizes.

INDUSTRY LANDSCAPE

In this market where 3,500 suppliers are offering over 750,000 products to 21,000 distributors and their 130,000 sales reps, the job of “standing out and being heard“ without spending a fortune is complicated.

The promotional products industry has been described by market analysts as "highly fragmented." As a result, mass marketing has become more challenging and less effective and targeted marketing has become more essential.

SALES TRENDS

Due to the difficulty companies have today in reaching consumers through traditional advertising means, awareness of and demand for non-traditional advertising vehicles resulted in record promotional product sales in 2006 and 2007. As promotional products gained consistent favor over or for inclusion in the marketing mix alongside traditional communication vehicles, the industry attracted new competitors and the market experienced an explosion in product offerings.

FIVE INDUSTRY TRENDS

1.       Escalating Competition - Escalating numbers of products and a rapidly growing number of suppliers entering the market to compete against.

2.       More Distributors to Reach and Tradeshows to Attend - Growing numbers of distributors now have more options for National, Regional, Traveling and Local trade shows they can choose to attend.

3.       Sharply Expanded Marketing Communication Options - Greatly increased types of marketing communication vehicles and advertising media to choose from to reach distributors, such as websites, e-blasts, webinars and videos, magazines, end-user catalogs and more.

4.       Increased Product Development Pressure - With many product categories saturated, growth also relies heavily on a supplier's ability to deliver something new and innovative each year. With so much competition and so many communication avenues, developing and promoting that "next big seller" has become a seemingly elusive goal.

5.       Rising Costs Forcing Increases in a Price Sensitive Economic Environment -
During an economic downturn, when suppliers may have been inclined to use limited time sales and price decreases to compete in the industry, rising costs have virtually eliminated price promotion as a viable marketing strategy.

How do you stand out in the promotional product crowd?

OUR UNCOMMON PHILOSOPHY

UncommonQuest! Marketing™ philosophy is simple: Be uncommon. Our ability to deliver uncommonly good outcomes and the highest return on our clients' marketing dollar is based on our quest to uncover companies' unique benefits and to communicate those benefits in memorable ways to targeted key customers through the most cost-effective means.