Saturday 28 March 2009

E-Marketing for Garden Retailers

E-marketing makes reference to one of the many methods of advertising your business (i.e. selling of goods and services), specifically through digital forms of communication. This may include email newsletters, websites and online advertising through search engines and/or banner/link advertising. E-marketing is a growth area with online social networks such as Facebook demonstrating targeted advertisements based on user’s personal information. You also see these ‘personal recommendations’ on websites such as Amazon, where user targeted marketing techniques are heavily put into practice. E-marketing eliminates the downtime in spreading your message to the consumer who is increasingly short of time. This means the consumer must have buying decisions made as easy as possible for them. In addition to your normal marketing techniques, e-marketing should be an enhancing supplement to your regular marketing strategies with the aim of reaching a larger target area.

In considering the benefits of e-marketing and whether you think it will be of benefit to you, it is important to sit down and develop a plan.

Characterising the Consumer

To begin with, if we think about the varying demographics of our customers, we can come to some immediate conclusions that certain generations are most likely going to be influenced by varying marketing techniques. Therefore, by characterising your consumers and determining what drives sales of that area, you will be able to see which methods of marketing are likely to be most effective for your nursery. How many people don’t have an email address that they check regularly? Most do, and as such there is huge potential for e-mail newsletters to be a regular cost effective form of regular communication with a vast number of potential customers. So, ask yourself – Is there potential to tap into a growing market (such as the Generation X with their love for home grown produce or the young families who want to enjoy their ‘outdoor room’)?

Planning for Positive Growth and Return

Addition of e-marketing to your existing marketing plan/budget will enable you to effectively develop a holistic approach to advertising that has a positive return to your business. There are a number of steps in developing an e-marketing plan:

1 – Ensure you have the expertise on hand. Basic email knowledge is bare minimum, with other specialised requirements such as construction of a web page easily contracted out.
2 – Define your objectives and ultimate goals. Here you will be specifically targeting the audience which you have determined will bring most value in return. In doing so, specifically defining your set objectives and outcomes will help you lay out your plan of attack. Do you want to increase your footfall? Or are you aiming to improve exposure? Are you looking at developing a loyalty program of sorts? Is the primary goal dissemination of information, with the aim of increasing professional profile? All of these objectives will no doubt need to have an effect on the bottom line, but you do need to think about it strategically to get the most out of your e-marketing campaign. Sending a clear consistent message is important.
3 - Include the costs of e-marketing into a budget – This includes the skills required and potential ongoing contracting costs of maintenance.

Monitoring the Method

Having the ability to monitor your methods of e-marketing will give you the ability to critically assess the return on investment. Realistically, you are making sure that the electronic form of marketing is worthwhile – is it working to your advantage? If not, is there potential for it to work to your advantage?

There are numerous ways in which people monitor such systems. For example, with an e-newsletter you might include a redeemable coupon in each mailout. This is a very simple form of monitoring, but will give you accurate results by determining the amount of repeat custom you are receiving.

So ask yourself – What techniques can I implement to monitor the effectiveness of the method? And how can I use these findings to my advantage?

Practical Application

It is a good idea that retail nurseries in Victoria have at least:

1 A basic website
- This will be a point of reference with photos of your business offerings and contact details as bare minimum. A sign up to your e-newsletter would also be of benefit.
- Don’t put unnecessary information online, it should send a clear message and not be weighed down with too much text.
2 An email newsletter
- As above, develop a set of objectives.
- Be consistent – make sure the content is clear and the message you are sending across is simple. Most people will flick their eye over an email, so don’t bog it down with too much fanciful text.
- Understanding technical issues such as bandwidth and the range of issues involved in sending an email to multiple people is important at set up. For example, each email is a particular size, and with the addition of images to an email, you will quickly eat up bandwidth which your service provider might not support, or at the least increase your costs substantially.

Combined, these two e-marketing methods offer the online consumer an insight into your business 24 hours a day, 7 days a week - and also a point of contact.

The Next Step

1 – Most importantly, do your research.

2 – You may have seen that the NGIV and the Garden Gurus have partnered together and have begun to build an online Virtual Tour database of independent retail garden centres. The idea behind this is to promote independent retailers by offering consumers an online experience.

In joining the programme, you will have your business’ virtual tour made available to you. Imagine a virtual tour (video) of your garden centre on the front page of your website. This would be an unrivalled experience for the consumer and the first step to opening your doors to their custom.

To view the Virtual Garden Centre Tours, logon to www.ngiv.com.au and click on the banner on the front page. For further information, contact Glenn Thomson (e - glenn@thegardengurus.com, m – 0438 584 816).

Resources:

There are many excellent resources online, but one of the best which I came across was this online tutorial by the Small Business Development Corporation
http://www.e-com.sbdc.com.au/e-marketing/one/index.htm
The second is a Training Module produced by Multimedia Victoria (Victorian Government)
http://www.mmv.vic.gov.au/Assets/220/1/eMarketing.pdf

Generation X, Generation Y - the Nextgen Employee

The National Conferences topic of ‘Ingredients for a Brighter Future’ yielded a variety of discussions and references to the younger generation of the industry. The terms Generation X and Generation Y were coined loosely as those in the age group from apprentice level up to roughly 35 years of age. This group encompasses a large proportion of our industry. Therefore when it was noted the limited numbers of young people in attendance at conference, there was an evident issue at hand regarding the potential ‘brighter future’ which the conference aimed to assess.

There were a number of key questions addressed by a panel of distinguished guests including Brian MerrickCNP (Gardens R Us), Andrew White (Oasis), Anthony Kachenko CNP (NGIA) , Ross Wilson CNP (2008 Young Leader), Kate Malfoy CNP (Jambaroo Native Nursery). Participation from business owners in attendance also formed a significant part of the debate. In addition to these discussions, I recently spoke with Glenn Fenton (Nationwide Trees Pty. Ltd.) to further grasp his thoughts on this issue.

Generally, apprentices were considered to be a difficult group of young people to retain and train, with a number of business owners raising the issue of neediness. It was nearly stated that a level of ‘mothering’ is expected particularly from this level. This was disputed by a number of people including Mr Fenton who strongly believes that you must take your employees on a journey. You are investing in them as long term candidates of your business. A level of support, not mothering, is a critical part of the development of your employees, and inevitably the business.

In addition, Ross Wilson CNP (Young Leader 2008) characterised this by offering his personal time to those younger members by assisting with such aspects like personal budgets. This is something a young person with limited life experience has little to no exposure to, and with an increasing number of pathways to the work place, it is inevitable that you will encounter a diverse range of people with significantly varying backgrounds, skills and knowledge. With this in mind, offering support builds trust, and in turn, a level of commitment from the employee.

So ultimately, how do we retain those young people with potential in industry? The suggestion was made to figure out ways to increase your margins and essentially pay above award rate with the aim of resulting in a higher retention rate. This was just one method of retention as it was obvious that remuneration is not the sole motivator for the next generation.

The key issues raised formed a consensus that it is difficult to motivate the younger generation. In contrast to this, Mr Fenton clearly stated that it was not as difficult as was being suggested with opportunities for development and a career pathway as key drivers for the younger generation. It was noted that remuneration of a fair wage was also essential in attracting and retaining employees. By offering such opportunities, you should as a result be left with a committed staff with skills which are retained in house. In going forward with this, those particular skills will be shared into the future as they are honed and developed with the guidance of the business owner.

With such a diverse group of people, motivations will inevitably vary. With some young people, a desire for vocational education through schemes such as the Australian Apprenticeships programme offers young people an opportunity to not only earn a wage, but learn on the job in a manner which suits their style of learning.

It was suggested by Mr Fenton that there really is little difference between the generations and the most important issue with many current business owners is that ‘they manage, they don’t lead.’ The call for change appears to need to come from the business owners and managers themselves. This concept is one which has been exhausted by many business gurus, and a trip to your local bookshop will demonstrate this with piles of literature on the topic. In addition to reading literature, networking with others who are seen to be leaders is an excellent means of building and developing the skills of leadership which have a positive effect on business and industry growth.

So what practical measures can we begin to adopt as we start learning to lead?

Common tasks like weeding are essentially highly rated tasks by necessity but which holds with it a low ranking credibility for skill base required to undertake. With this in mind, it is a perfect exercise to team build. Once a week instead of delegating tasks, get out there alongside your staff as a group and knock over those sorts of tasks no-one enjoys doing together. By leading in this manner, you will not only finish the common tasks quickly but it gives you regular opportunity to interact with your staff. Again this builds trust by interacting on a more sociable level, which will be seen by employees as supportive to their needs.

Listening too, can be a simple yet very effective tool. By listening and engaging you learn about your staffs interests – this is something which you will do while weeding alongside staff. In turn this gives you the knowledge you need to harness their capabilities and get the best out of them. In doing so you will provide them with the opportunities they need to excel both in the workplace, as valuable members of the industry, and finally throughout their professional careers.

Finally, in training the younger generation to be valuable members of staff, it is important to trust them and offer them ownership of their position in the business. In doing so, let them make mistakes which they will potentially learn from. This can be sometimes at a minimal cost to the business, but all in all your investment and trust in them will build a solid foundation for the future. In addition to this, by allowing your staff to be accountable and have a sense of ownership, you as a business owner will be able to step back a little and take the breaks that you deserve and have worked so hard for.

So what can we take from all this? Essentially young people ‘want to work for good people who lead them well’ (Fenton).

A table characterising the various generations is available at:
http://www.leadership.org.au/briefs/GenYEmployees.pdf

Botanical Splatter Merchandising

anthonycurnow.com
In the past month of my starting at the NGIV, I have been getting out on the road and visiting a range of retailers to see what is happening out there. Responses have been positive and it sounds as if the prolonged seasonal spring like weather which brought cooler temperatures and a bit of rain over December, has spurred positive sales forward into the New Year. At the essence of this good trading, is having the quality stock on hand to meet demand. Fantastic merchandising (making stock available for sale in an appealing fashion, as opposed to simply ‘displaying’) of this stock will no doubt have played a key factor in your sales figures and having been out and about, it is clear many of you are proactively tackling consumer demands.

Consumer interest in growing their own fruit and vegetables is being met by many of you. Kuranga Nursery is targeting a specific native bush food market linking live stock to products within their café. They are finding that they are gaining repeat custom through their marketing of traditional Bush Foods, firstly by sparking interest with edible products in the shop with people returning in the hope of growing their own Kunzea pomifera!

Botanical Creations on the other hand are targeting the newcomers (and the old) to gardening who are horrified with increasing prices in the supermarkets. They have created an edibles area with an emphasis on providing the customer ideas through inspirational living displays (such as herb and vegetable patches, which were also viewed at Bay Road and Gills of Beaumaris). Botanical Creations however appear to have taken this to the next level by not only including vegetable and herb seedlings, but cross merchandising this with many edible plants and related products to create a very effective new age department of the nursery. Not only will you find vegetable seedlings, but with this you will find potting mix, fertiliser, instant vege gardens, pick and eat herbs, containers and more.

As a retailer, it is safe to say that it is a common misperception amongst the public that natives can be ‘dull and boring’, but this is far from what I experienced at Kuranga Nursery. Their bold use of seasonal stock such as bright pink flowering grafted gums (Corymbia sp.), dusty pink Ptilotus intermingled with yellow wildflowers and orange Anigozanthos is a striking flowering colour combination which one might never normally think to use. But through effective merchandising with the use of inorganic props like large stones, old wooden wagon wheels and birdbaths, combined with its impulse location, this ‘botanical splatter’ creates a highly stimulating display that paints a desirable representation of what the impulse buying shoppers garden could look like.

Another common method of merchandising stock which is a technique used most commonly by supermarkets is that of mass numbers. Like the large quantities of single item stock on the ends of isles at supermarkets, a lot can be said about the similar use of single variety displays in garden centres – they tend to sell themselves through impact and impulse. Kuranga Nursery, producing much of their own stock have the market ability to display large numbers of seasonal (often flowery) stock in hot impulse locations around their nurseries creating a grab and go scenario for the consumer. Bay Road on the other hand is enticing consumers with large instant colour displays on the main street. This not only creates a show stopping display, but will no doubt trigger impulse purchases too. Be aware though of the cost involved in buying large numbers - understanding stock turns and discounting will aid in maximising your gross profit.

Room sets were also a fantastic way of selling an idea (and all associated components) to a customer. Bay road for example have a number of thematically schemed room sets which reflect various styles of outdoor living, bringing ideas to life. With their latest booming sector of the business, a landscape construction department, they now can actually guide the customer through all steps of the process from the in store idea to construction.

In passing through these businesses, I believe it is important to note that paying attention to fine detail is a must. Increased temperatures and potential dwindling footfall gives you good opportunity to do those ‘Summer Cleaning’ duties (cobwebs/painting benches/general housekeeping – and need I mention stay on top of weeds during their peak period) in preparation for the upcoming Autumn months. One method I’ve found and seen to be most successful in maintaining these standards is ‘the walk around’. By this I simply mean each morning walking around your plant centre and taking note of the detail (perhaps create a departmental checklist addressing housekeeping issues, faded/out of date P.O.S, quality control and OHS) – put yourself in the customers shoes.

So what have I learnt from the first few weeks? Firstly it’s an exciting time to be retailing in such a diverse industry! Secondly, assessing your hotspots within your garden centre and cross-merchandising your quality stock in an attractive manner may increase your overall margins. I encourage you to do as I do, and get out and visit some other retailers as a means of building ideas and positive industry relationships and developing your garden centre and the industry as a whole to the next level.