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What to do When a Big Box Store Moves to Town Marketing Strategies Lawrence S. Martin & Dr. Robin G. Brumfield. National Farm Management Conference Rochester, Minnesota June 12-14, 2007. A Tale of Two Cities.... Both Have:.
National Farm Management Conference
June 12-14, 2007
A New Big Box Two Established Greenhouse/Nurseries
Two years after Home Depot comes to town.....
Not just surviving,
How are greenhouses
(wholesale and/or retail)
changing customer preferences
while at the same time
competing with and/or profitably
selling to the Big Boxes?
Our work is meant to help growers formulate their own:
...to not only SURVIVE; but, to THRIVE in the current, competitive market.
Determine how the Green Industry is responding to current trends & changing customer preferences.
What can producers learn from our research results?
How can they incorporate these results into their existing marketing programs?
FACT: The Big Boxes are here to stay!
Big Boxes are Price Setters & Push Prices Down
elimination or winnowing out of some competing businesses as a result of intense competition.
A bankrupt business is one which has been legally declared financially insolvent.
The merger of two or more commercial interests or corporations.
are sometimes BELOW
When a Big Box store moves into town most reactive/resulting strategies boiled down to:
Qualified as “Easy Prey” for Big Boxes”
Former Frank’s Nursery to sell at but 40 of its former garden centers.
The Troy, Michigan company began as a roadside fruit stand in 1949.
At the time ofFrank’s first Chapter ll petition it had 257 stores in 15 states.
In a market where customers patronize:
Frank’s retail operations had neither the cheapest prices nor the best quality product: a death sentence in today’s competitive Marketplace.
Make Lemonade out of Lemons:
Frank’s retail garden center in Allentown, PA was purchased by Dan Schantz Greenhouses. Dan Schantz (owner/operator of a local established and very successful garden center) added the his former competitor’s Allentown facility to his nursery business. In the same garden center where Frank’s withered on the vine, Dan Schantz increased his annual sales by 30%.
Both nurseries operated in the shadow of Home Depot (less than ½ mile away)!
Dan sells retail/wholesale in his greenhouse/nursery and has managed to wholesale to his Home Depot neighbor!!
Dan’s antidotal response to his successful conversion of the former bankrupt Frank’s Garden Center? How was he able to make lemonade from lemons?
“Marketing is everything; and, everything is marketing!!”
WhereFrank’s marketing plan could not compete, Dan Schantz thrived, expanded, and filled the void created by the Frank Bankruptcy. in a changing marketplace where customers patronized:
The Best Offense is a Good Defense
Dr. Robin G. Brumfield
Professor and Extension Specialist
55 Dudley Road
New Brunswick, NJ 08901-8520
Phone: 732-932-9171 ext. 253
Home page: http://aesop.rutgers.edu/~farmmgmt
Thanks to USDA CSREES for research funding.