Simplifying sales

I expect most people attending the California Spring Trials experience to some degree that “kid in a candy store” feeling.

David Kuack

I expect most people attending the California Spring Trials experience to some degree that “kid in a candy store” feeling. Even being a 20+ year trial veteran, I still look forward to seeing what’s new in regards to plant introductions. Prior to arriving in California I wonder if there will be at least one new variety that will cause me to say “Wow, that plant should get consumers excited.”

The other questions I usually ask myself after a week of making nearly 20 stops to view products from about 30 plant companies are, does the industry really need this many new plants every year and how many are actually going to make it onto the retail shelf?
 
In a recent article in the Globe and Mail, the Toronto newspaper reported that Walmart Canada Corp. decided to overhaul its peanut butter offerings. In order to make room for additional “spread” products, the retailer reduced the number of peanut butter lines it carried from five to three. The result was that peanut butter sales actually went up. The reduction in offerings made it easier for consumers to choose and so more peanut butter was sold.
 
I wonder the same thing about consumers and their decision to buy plants. Are they so overwhelmed by the selection that they just give up and walk out of a garden center without making a plant purchase? I expect they may make a lawn and garden purchase (i.e., fertilizer, chemicals, garden tools, etc.), but is the plant selection too extensive for them to make an “intelligent” buy? Duncan Mac Naughton, chief merchandising officer at Walmart in Mississauga, Ontario, told the newspaper that too much variety can overwhelm consumers resulting in them not buying.


Keeping it simple
A 2007 study by consulting firm Bain & Co. found that reducing product offerings reduces a company’s operating complexity. The study indicated this simplification can help companies increase revenues by 5-40 percent while cutting costs by 10-35 percent. The study indicates elimination of complexity makes it easier for companies to identify fast sellers and improve product and service quality. Companies that had the lowest complexity grew 1.7 times faster than the average competitor, according to the Bain analysis.
 
One company at this year’s Spring Trials made simplification a part of its message. Suntory Flowers, which downsized its display, promoted the fact that it made it easier for growers to choose plants by reducing the number of varieties it offers.

I’m not expecting there to be any major changes in the number of new varieties introduced during the trials. Some people feel that new varieties are one of the major drivers of our industry. But it’s the consumer who’s the ultimate driver. And if a plant doesn’t meet her performance standards once she buys it, the life expectancy of that variety is going to be shortlived.

 

July 2010
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