Incentive - April 2008 - (Page 61) THE INCENTIVE MERCHANDISE BUYER’S HANDBOOK CHAPTER 5 Findng the Right Partner branded merchandise, also referred to as advertising specialties, which can include everything from pens, T-shirts, and sports equipment to food gifts and When Kitchen Aid wanted to pump up its fourth quarter sales, it turned to manufacturer’s high-tech gadgets. Promotional prodrep firm Design Incentives/Promotivators in Livonia, Michigan. The Benton, ucts professionals have access to extenMichigan–based kitchen appliance manufacturer needed the help of Design Incentives sive product resources and can work President Barbara Hendrickson to design a program that would reach a diverse group. Retail sales associates and KitchenAid account managers—men and women representing with buyers to enhance an overall proa wide array of income levels, personal interests, and geographic locations—all needed gram. to be motivated to move KitchenAid’s refrigerators, mixers, and other appliances off the Promotional products professionals shelves. will work with corporate clients to creDesign Incentives created a Western-themed promotion, the “KitchenAid Round-Up,” ate customized merchandise solutions, incorporating Omaha Steaks dinners and leather products such as brief cases, jackets, and shoes as the rewards. helping them to narrow down colors, All sales associates received a brochure promotsizes, materials, and other imporing the Round-Up and explaining how they would tant product factors. For buyers earn points for their sales. Included with the who are concerned with corporate brochure for this straightforward, easy-to-underidentity, promotional products prostand incentive was a form for tracking their sales and one for redeeming the awards. Certain fessionals are experts when it products that KitchenAid wanted to target for comes to imprinting. Instead of increased turnover received extra point value. just placing a corporate logo or To get regional managers to support the program an art graphic on a product, most across all of their stores and encourage their promotional products specialists sales associates to participate, the program offered a merchandise bonus based on the sales will give their recommendations volume achieved in their region. for the best printing process, The promotion garnered high participation: placement, and ensure accurate 97 percent of retailers got involved, and award redemption rates transfer of artwork. were 25 percent higher than for the prior year’s program. The efforts In addition, promotional products showed up on the bottom line as well: KitchenAid sales increased by 16 percent over the same two-month period in the previous year. distributors can secure favorable Thanks to the help of a dedicated and experienced manufacturer’s pricing for their product selection, rep, Kitchen Aid was able to inspire a diverse group of sales profesand like manufacturer’s representasionals to move the products that it especially wanted to sell, and to boost tives, they are often on top of product its sales in the key fourth quarter period. trends and are full of creative ideas. But for those who prefer branded, higher-end merchandise awards, a promotional products professional might not be the best partner for your next incentive and recognition solution in addition to merchandise awards, a full-service incenprogram. tive company might be the way to go. CASE STUDY The Right Rep Premium jobber/distributors Also known as an incentive reseller, this is a company that typically buys premium merchandise from various manufacturers, often warehouses the product then sells the items to users of incentive programs. For the most part, they simply provide products and leave the program design and execution to others. READY TO PARTNER While manufacturers, independent representatives, full-service incentive companies, premium jobbers, and promotional products distributors all provide merchandise, corporate planners are ultimately partnering with these firms for their unique services. With a clearer understanding of the different channels of distribution for merchandise in the incentive industry, the next step is to select the right partner. However, before you place that phone call or send out that initial e-mail and RFP, answer a few April 2008 | Promotional products consultants These independent professionals or employees of a promotional products company generally work with non- SPECIAL SECTION 61
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