Businesses Rethinking Trade Shows, Marketing Efforts
February 5th, 2009
What do you think the economy is going to do in 2009? At the recent Fancy Food Show, everyone was talking about the economy, and everyone had a different perspective. I heard horror stories, and I heard stories that give me hope. The heartbreaking stories include one about a confectioner who landed a large account from a national retailer to produce a unique item for them in their packaging. He went into production, and then the retailer cut the purchase order in half. By that time, however, the product was produced.
The retailer refused to honor the original purchase order, and the manufacturer shipped what he could, but was stuck with the rest. He hopes to sell the rest to the retailer at some point because it is in their packaging, but it was a holiday item, and he might be stuck with it ‘til Christmas. Assuming the retailer takes it then. I hope they do.
Another company owner told me they had a great year until October. Then the orders dried up. As a chocolate manufacturer, 60 percent of their business is holiday business. They had geared up and added a second shift to gear up production. As soon as sales tanked, they were forced to lay off the second shift. They ended up doing OK for the year, but they are concerned about what this year holds. The CEO feels badly for those he had to lay off and hopes that business will pick up, but so far he isn’t optimistic.
Everyone realizes that companies are cutting back. A common theme at the show was that businesses are spending much less to do trade shows. Although the booths at the Fancy Food Show are not that elaborate compared to other shows such as the National Restaurant Association, I noticed that some of the companies had cut back on size of their booths and staff. One friend told me that they cut back on their large, elaborate booth and with the savings in set up, tear down, and drayage, could afford to bring more people. Smart marketing.
Another peer said he will cut down on the dozen or so shows he does annually to focus on those that deliver a solid return. Gone are the days of doing trade shows that might merely support a branding message.
In this economy, shows have to deliver real, tangible, bottom line results.
Chocolatier Michael Szyliowicz is an innovator who crafts quality syrups in his Denver lab. Michael's adventurous spirit takes him around the globe in search of trends and best practices. He shares his musings, observations and experiences.
