Special Report: Montgomery’s Spring Recap & Analysis (Part 3)

Retail is where we find the most valuable information relative to industry trends because the trends are dictated by what happens here, not in the greenhouse or the nursery as it was in the past. The era of “grower in charge” has long passed, and we now reside in the era of “retailer in charge,” dramatically changing the market dynamics.

Click here to view marketing consultant Jerry Montgomery’s full spring recap and analysis as a whitepaper.

At retail you can see grower performance, retailer performance, price trends, size trends, the impact of marketing programs, brand activity, as well as the impact or lack of impact driven by grower performance.

To this end, I visited 972 retailers in 2008 and 494 since April 1, 2009, covering 20 markets in most regions of the country, including the West Coast, Northwest, Midwest, Northeast, Mid-Atlantic, and Southeast. The only major area we missed in 2009 was the Southwest.

The purpose of these visits is to gather information regarding retailer performance, vendor performance, price trends, size trends, merchandising, new products, marketing programs, brand activity and packaging. Vendor performance is broken into a number of categories, including, merchandising, plant size, amount of color, packaging, branded programs and product assortment.

Summary

This was a year in which the industry clearly exceeded expectations, signaling that consumers with less money will still buy green goods. Consumers seem to have shopped harder for value than in the past, but unit volume was clearly above most industry expectations. A retail price above $25 was the area of resistance, but items priced below that level had good sales velocity. Many have said they sold more seed-grown annuals that were in the consumer’s price/value “wheelhouse.”

Although bedding plants and perennials sold well this spring, there is increasing competition from roses, especially the Knockout series, hydrangeas and flowering tropicals. Led by the extreme growth of the Suntory mandevillas, these categories are competing for traditional bedding plant shelf space.

In some of the older store formats at the national retailers the garden center footprint is small and cannot accommodate the inventory needed in the prime selling seasons, so traditional grow carts become selling platforms. They offer the flexibility of being mobile and can create huge increases in available store inventory. We have seen a number of carts that have POS materials installed to draw the consumer’s attention. Sometimes, they are product oriented and in other instances they are lifestyle oriented. Both methods seem to be very effective. Some the most attractive cart POS were from Ivy Acres, Bell Nursery and the Burpee Home Garden vegetable brand.

We see many “wow” products, and some very interesting marketing programs. But in some cases, they are negated by how they are merchandised. The real game changer is great merchandising, and if this element is not well executed, everyone loses. Merchandising can drastically change the sales volume and profitability of any given retailer that it has become so clear it is major element of success or failure. We believe the best merchandisers are generally the most successful growers. It is just as important as putting plants that say “wow” on the retail shelves.

As we consider our plans for 2010, considering growing great plants is only a “ticket to play.” Being a great grower won’t cut it anymore. Those who are flourishing and will continue to flourish are above-average business people who just happen to produce great plants.

About the author: Jerry Montgomery is a 40-year veteran of the floriculture industry and has worked for distributor companies, breeders and large growers specializing with a focus on sales and marketing. As an industry consultant, he works for large growers, distributors and breeder/producers. His focus is to understand the market dynamics from breeder to consumer through intense retail travel, visiting almost 1,500 stores since January 2008.

Leave a Reply

More From Marketing...
Gaillardia x grandiflora 'Arizona Apricot'

February 25, 2015

National Garden Bureau Designates 2015 As Year Of The Gaillardia

Gaillardia, also known as the blanket flower, is a member of the sunflower family (Asteraceae) and a long-blooming pollinator plant. It is fitting that the National Garden Bureau has specified 2015 as The Year of the Gaillardia.

Read More
IPPS Sharing Plant Production Knowledge Globally Logo

February 25, 2015

International Plant Propagators Western Region Sets Annual Meeting Date

The annual meet for the International Plant Propagators' Society (IPPS) Western Region has been set for this September. It will take place September 23 to 26 in Modesto, Calif., and will include learning sessions, tours to local nurseries, a research poster display and poster presentations, various networking opportunities and an awards banquet to close the event.

Read More
Evolvulus Blue My Mind

February 24, 2015

Blue Ribbon Bloomers For Greenhouse Production

Grow what consumers want! Surveys show that blue is one of the top preferred colors of today’s consumers. Here are twelve top recommended blue-flowering Proven Winners annuals and perennials to suit your spring production cycle.

Read More
Latest Stories

February 18, 2015

Range Of Nursery Inspections To Protect Patented Plants…

Plant patents are under protection, and breeders are fighting for their rights to keep growers from illegally propagating protected varieties. It's something you don't want to take a chance on, because the risk is far higher than the reward. More than 300 inspections were carried out last year from New York to British Columbia and from Ontario to Florida to protect plant patents, Plant Breeders’ Rights (PBR) and branded programs.

Read More

February 4, 2015

TPIE 2015: An Electrified Industry Vibe Boosts Cool New…

The general feeling at the Florida Nursery Growers and Landscape Association's 2015 Tropical Industry Exhibition (TPIE) was upbeat and positive. Attendees were inspired by exciting new products and varieties, as well as creative new displays and innovative ideas and left energized for the season ahead.

Read More
Costa Farms Website

January 21, 2015

Costa Farms’ Launches New Interactive Website

Costa Farms is making efforts to educate consumers while pushing horticultural digital marketing forward with the re-design of its website. The new website features a fresh design and improved navigation, as well as a plant finder that gives gardeners easy access to plant information.

Read More

January 5, 2015

Growers Are Successfully Marketing The Benefits Of Pla…

Growers who are already marketing plant benefits and gardening as a lifestyle say they think this could be the best angle for the floriculture industry to promote our products.

Read More

January 5, 2015

Plants Love You Campaign Raises Plant Benefits To Foref…

Plants make us feel good. It’s a no-brainer, backed by numerous studies, but there’s more to the story. And it’s one the Canadian Ornamental Horticulture Alliance (COHA) hopes its Plants Love You campaign will tell in such a way that it will inspire people to make plants a part of their life, and on a bigger scale. COHA is an alliance between the Canadian Nursery Landscape Association (CNLA), the Fédération Interdisciplinaire De L’Horticulture Ornementqale Du Québec (FIHOQ) and Flowers Canada Growers (FCG). Inspiration for The Plants Love You campaign came from COHA’s research, which revealed that 96 percent of consumers surveyed have a favorable attitude toward plants. When COHA delved deeper into the numbers, one thing stood out loud and clear. “It quickly became apparent that while consumers like plants because they are pretty and make them feel good, few understood the environmental and health benefits plants offer.” says Frank […]

Read More

December 9, 2014

New Website For PanAmerican Seed

PanAmerican Seed's new website is mobile-friendly and has a fresh look and enhanced navigation.

Read More
What’s a pumpulent? It’s a pumpkin planted with succulents, and it’s also one of the ways Altum’s is catching customers’ attention with new products and modern marketing.

December 1, 2014

9 Digital Marketing Resolutions For 2015

Whatever your experience with digital marketing, here’s some advice for keeping your business progressing into the new year.

Read More

November 25, 2014

Conley’s Launches New Website

Conley’s Manufacturing and Sales recently launched its newly designed website, which was redesigned to create a user-friendly digital environment for customers to explore Conley's products.

Read More

November 17, 2014

Canada’s Plants Love You Campaign Educates Consum…

In a cooperative effort to promote the benefits of plants to consumers, the Canadian Ornamental Horticulture Alliance (COHA) recently launched its Plants Love You campaign to make consumers more aware of the health, environmental and economic benefits of plants.

Read More
Supertunia® Vista Bubblegum™ Petunia from Proven Winners

November 11, 2014

Plantbid Offers New Tool For Growers, Plant Buyers

Plantbid is touted as a revolutionary new tool that allows plant buyers to purchase their whole plant list at one time, from growers who provide their complete availability online. According to the company, this new offering could change the way growers and landscapers do business.

Read More
Dahlia Dahlinova Temptation Lavender from Dummen Fides Oro

November 10, 2014

Bas Pellenaars Takes On New Role As Brand Manager For D…

Dümmen group announces the transition of Bas Pellenaars from area manager to brand manager.

Read More

October 28, 2014

Zombie Adventures Are Back: GGS Releases Premiere Of Ne…

What's good for plants, but bad for zombies? GGS structures. The company released a new promotional video to get growers in the spirit of Halloween. GGS Structures ran a series of zombie movies last year, and this year, something new was released October 24.

Read More
Suzanne McKee

October 27, 2014

Use Your Data To Make Smarter Marketing Decisions

Learn which marketing metrics are important to your business, measure successes and learn where changes are needed.

Read More
Sara Tambascio

October 2, 2014

How To Measure The Success Of Your Digital Marketing

Take a look at these metrics in your digital marketing to see if you’re connecting with your audience or just adding to the clutter.

Read More

September 26, 2014

How To Get The Digital Generation Into The Garden: Gard…

Capture millennials’ gardening interests with these marketing tips.

Read More
The Joseph Shinoda Memorial Scholarship Foundation

September 9, 2014

Shinoda Foundation Contributes Nearly $15,000 In Schola…

Based in California, the Joseph Shinoda Memorial Foundation's mission is to encourage educational opportunities for young people interested in entering the industry. Since 1965, the foundation has awarded $790,000 to more than 660 undergraduate floriculture students.

Read More
Salvia 'Playin the Blues' from Proven Winners

September 9, 2014

Grand Gardening Show On Mackinac Island Draws Huge Audi…

Dates are already set for Proven Winners' 2015 Grand Garden Show after the great response the 2014 show received in late August.

Read More

August 27, 2014

New Gardening App GrowIt Connects Community Of Gardener…

Thanks to Ball Horticultural Co.’s Mason Day and Seth Reed, gardeners can now share photos of their plants, interact with other growers and learn about what grows best in their area with the duos new app, GrowIt!

Read More