Business SMART:

Why SMART Teams Work
 

By: Dennis A. Conforto
A-Z Media Group

One of the most successful tools available to scrapbooking retailers throughout North America are the Regional SMART Co-op teams. Several of these teams are already up and running; there are SMART Co-op teams in Utah, Southern California, Arizona, Indiana, Ohio, Ontario, Canada and Vancouver, Canada.

For many retailers this is the first time working with fellow retailers that they once viewed as their major competition. Slowly The SMART Group is breaking down many of the myths that have plagued the industry for nearly a decade.

Let’s talk about the two great myths that have damaged the industry and what SMART retailers are doing to break down the myths and reveal to the industry the new truth about what is real and possible for independent scrapbooking retailers.

The first myth that did great damage to the industry is that one in every four households in North America is a scrapbooker. Nothing could be further from the truth. The truth is that only 4.5% of women between the ages of 16 and 64 are scrapbookers. The good news is that we grew to an industry that does over two billion dollars in sales with just 4.5% of a total demographic.

Because of this myth major investors came into the industry and overspent based on information that was neither real nor accurate. Those investors are tied closely to the other big investors who have great influence over how the stock market will view the category. Overstating anything in the stock market is bad news because any negative stories will affect the view those investors have about the scrapbooking category. While you might not think it will have an impact, stories in Time or Fortune magazine can really affect consumer confidence in our industry.

Another result of this misinformation was that the industry halted its marketing efforts. Many thought we had so much market penetration that we couldn’t sustain any more real growth. The truth is that the industry has just scratched the surface, but for many reasons the industry simply is not yet willing to work together. While we have learned how to compete, we have not been willing to cooperate for the good of the industry.

The second myth was that another scrapbooking retailer within your market was the biggest competitor you could have. Some groups even go so far as to say that anyone within 25 miles of your store is a competitor and therefore you need market protection from them. Again, this view has served to do more harm than good and did nothing to protect the category or grow the industry.
If you think about what the number one problem is for the industry today it is simply doing more volume. So, many problems would be solved if we really did have a market penetration of one in every four homes. Instead we spend all of our time on new products rather than on new consumers for our industry.

Now with SMART Co-op Marketing Teams, retailers are breaking down the myths by working together like never before. They are advertising together and working with local publications to help the local news outlets understand why people really scrapbook.

They are, in effect, doing what the car industry learned over 60 years ago; that first you must cooperate before you compete. Bad habits are hard to break, but every time another SMART Co-op Marketing Team is put together, the myths are done away with in that marketplace and real progress starts to take place.

Think about local retailers that do work together. Theaters, grocery stores, car dealerships and real estate companies all have their own sections of the newspaper. They are all interested in growing their category and they work hard to make sure it happens. They cut through the myths to get to the truth and work on growth and profits.

Right now regional SMART Co-op Committees are working on plans for 2007. They are working on how to get scrapbooking newsfeeds into the local press, cross promoting events and the list goes on and on.

For the first time these retailers are working with manufacturers on true partnership programs. One of the most exciting programs to come from the SMART Co-op Marketing Teams is advertising inserts that allow independents to compete with Michaels head on and win. The great news is that as more retailers join The SMART Group, the more the costs are driven down on the inserts or tabloids for each retailer. It is the very best way for independents to get their message out to millions of new consumers without breaking the bank.

In the next issue, we will reveal in more detail the best marketing program yet for independent stores so they can reach more newbies than ever before. That is what being business SMART is all about.