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Convenience, Value, Inspiration
Published: 20 Feb, 2009
The last five to ten years have seen a dramatic shift in market share in gardening, away from the traditional garden centre, to hardware and mass merchandise stores, and to landscapers.
This shift has been driven by several factors; changes in lifestyle; less free time; greater choice in leisure time activities; customer segmentation; and the main consumer motivators of convenience, value and inspiration.
Traditionally, garden centres have focused their business on the knowledgeable, keen gardener, a customer segment that is declining in numbers. Garden centres have not recognized the rise of other customer groups, or changed to meet the needs of these groups. Garden centres have not readily re-invested in their businesses. How many successful businesses today do you see still using the same methods and premises they were using in the 70’s and 80’s?
There has also been a growth in the demand for services.
Trends in gardening have shifted. The focus today is more on the aesthetic and decorative aspects of gardening, the outdoor room. As well as plants, gardening today is all about structures, paving, furniture, water features and garden art. Easy care and low maintenance are the catch cries of today’s consumers!
So, who are today’s customers? What are these customer segments we see and hear so much about?
Simply put, customers have split themselves into 4 main groups – Knowledgeable, Lifestylers, Beginners, and Reluctant. These groups have the following characteristics:
Knowledgeable:-Mostly 55 years +, enjoy gardening as a hobby; gardening is their primary leisure activity; they make small but frequent purchases; they are driven by plants, range, quality, value.They represent 15 – 25% of customers.
Lifestyler :- In the 35 -55 year age group, lead busy, active lifestyles; often money rich, time poor; into fashions, styles, colours and makeovers; have little or no gardening knowledge; don’t spend their leisure time working; are driven by convenience, inspiration and value. They represent 35 – 45% of customers.
Beginners: - Can be any age; no knowledge; need simple advice; buy small grades; need inspiration. They are driven by convenience, simplicity, and value. They represent 15 – 20% of customers.
Reluctant: - All ages; have established, but minimal, gardens; prefer TV, sport, fishing; spend as little as possible on gardening. They are driven by value; they represent 15-20% of customers.
While these four groups have different needs and wants , when it comes to making gardening purchases there are three common threads which link them together – convenience, value and inspiration.
Historically, garden centres have (and some still do) regarded their major points of difference, as range, quality, service, knowledge and advice. For today’s consumers these things are expected, a given. They are not in themselves point of difference drivers of consumer behavior. They are the start point. The major drivers around which a point of difference must be established are convenience, value and inspiration.If we look at the various retail channels we will see that each is famous for something; - Hardware stores for convenience and value; Discount / Variety stores for value; Landscapers for convenience and inspiration; Garden Centres for range, quality and advice.
Successful garden centres today are leading the change to convenience, inspiration and value.
What does this mean, and how are they doing it?
Convenience
Convenience is a contributing factor to why consumers prefer to spend their discretionary income in other areas – gardening is too difficult.
Convenience means different things to different people. In its broadest sense it is making gardening easy, from perception, through purchasing, to implementation.
- Easy to find the garden centre
- Easy to find the garden centre
- Easy to park.
- Easy to walk around and shop.
- Making gardening sound easy with simple, customer friendly information.
- Ideas and solutions based layout for easy decision making.
- Fast friendly check out
- Plants on ‘Appro’ to make decision making even easier.
- ‘Deliver and place’ service to make it easy.
- Delivery service to make it easier to get the product home.
- Planting service.
- Design service.
- Make-overs
- Landscaping service.
Convenience is removing all barriers to gardening, and to shopping for gardening.
Garden retailers who have implemented the above appear to be the ones achieving growth against the trend.
Value
Value is becoming an increasingly important part of the buying decision. This is evident by the success and increasing market share of value end retailers in all retail segments.
Garden centres have historically positioned themselves in the upper market positions to differentiate from Hardware Stores and Mass Merchandisers who also sell plants and garden products.
They are often perceived as expensive, whereas Hardware and Mass Merchandisers are perceived as best for convenience and value.
It is important to state here that ‘Value’ is perceived, not necessarily real.
Hardware and Mass Merchandisers continually ‘Shout’ that they have lower prices.
They usually do have a few lower prices and seasonal specials, but are not necessarily cheap across the range.
Garden centres have not joined the ‘value’ price offer or, if they have, it has been low key. They have not believed they could win against the buying power and deep pockets of the large Mass Merchandisers. They also felt they did not want to lower their market image.
In today’s market however, Value is an important factor, which garden retailers must address.
Success in the Value market position is much easier to achieve, by implementing the following steps:
1. Identify and select high volume, known value items, and apply the principle of ‘Value’/Price Led promotion.
2. Promote the above aggressively through: -
- Value displays
- Value price (e.g. half normal margin)
- Multibuy price
- Price Signage (Large Red Price)
- Comparative Pricing (‘Cheapest in town)
3. Communicate/Advertise Value Price offers
- Roadside sign / or Fence Banners
- Mail to data base.
- Bag stuffers
- Advertising
4. Plan regular weekly / 2 weekly Value promotions
5. Hold several Sales during the year
All of the above will go a long way to changing the customer’s perception from that of garden centres being expensive, to one of Value. In addition it will drive customer count up, leading to higher sales of value products, increasing sales VOLUME and thus Gross Profit in dollar terms
Inspiration
Many garden centres promote ‘Inspiration’ as a point of difference or reason to shop at their garden centre. However in most cases ‘Inspiration’ to the customer’s expectation is lacking.
Inspiration means displaying plants and/or products together in a manner that the customer can see a ‘picture’, get an ‘idea’ or ‘solution’ that they are inspired to do in their garden.
There are many ways of implementing inspiration in the garden centre. They range from small, little concepts to large display gardens. The important aspects of implementation are:-
- Have inspirational product – new, different, leading edge, wacky.
- Have lots of inspirational concepts/displays.
- Focus on decorating the outdoor room – the patio/deck/balcony.
- Make it bold, striking and simple
- Use coloured backdrops.
- Use props
- Keep it easy care.
- Change regularly (monthly).
Garden retailers can compete successfully in today’s market –
- By offering convenience better than DIY stores.
- By offering perceived value to match DIY stores
- By offering inspiration as outlined above, which DIY stores have difficulty doing.
This combination of Convenience – Value - Inspiration will go a long way to combating the DIY / Mass Merchandisers at the convenience / value end of the market, and Landscapers at the convenience / inspiration end.
Some leading garden centres are achieving success with this strategy.
Remember, Convenience, Value and Inspiration, are more important than horticultural excellence!
- By John Russell with information extracted from Brett & Associate's Business Planning Manual
