Marketing Forecast from Ad-ology

Candy manufacturers are continuing to find innovative ways to convince consumers to purchase more sweet treats. Last spring I blogged about how wedding planners were using candy buffet stations as a wedding accessory. Now, even powerhouse companies like Mars are selling directly to consumers, via www.mymms.com who want to purchase personalized m&m’s for special celebrations and to businesses who are looking for a unique marketing tool.

Ad-ology Research recently updated their Industry Marketing Insights report for Tutoring Services. The following are the predicted Top 5 Opportunities/Challenges from the report for this industry for the upcoming 12 months:

* Mandated state-competency testing is influencing more parents to get tutoring for their children.
* Due to more overloaded classes, students are getting tutors for more tailored teaching.
* Tutor and learning centers are increasingly in demand by community college students who want to transition to a four-year college.

You know it’s bad when consumers cut back spending on Fluffy and Fido. In 2009, fewer consumers shelled out fewer dollars for toys, collars and grooming products. After surging over 17.6% between 2005 and 2009, the growth rate last year slowed to 2.5%. Many industries would have been happy with a 2.5% growth rate in 2009 but pet supply vendors have long been accustomed to a rosier picture and they are also laying the groundwork to entice consumers to open their wallets again as the economy recovers.

More motor oil buyers than ever before reported making their purchase at a special discount price, according to The NPD Group. NPD’s research also reveals motor oil category discounts seemed to be an effective purchase behavior driver. Eighty-one percent who bought motor oil on deal said they specifically went to the store for that motor oil purchase. In addition, those shoppers were more likely to say they would have made no purchase if their preferred brand were not available (15% compared to 11%). These shoppers were five times as likely to say they chose the brand purchased based on an advertisement. Deal shoppers are also likely to be higher volume purchasers – 78% who bought on deal reported buying five quarts or more, compared to only 53% who paid regular price.

Licensing continues to be a marketing workhorse for many companies. Retailers typically purchase licensed products from a wholesaler which may already have an agreement in place with the licensing company. As sales occur, the licensing company gets both an upfront royalty and an ongoing percentage of sales, not unlike a business franchise. Products that displayed or represented licensed characters or ‘entertainment properties’ generated $11.12 billion in 2009 sales.

According to The NPD Group, Inc., the U.S. apparel market while still in negative territory for 2009 is showing some signs of life. In the fourth quarter of 2009, the women’s market slowed its decline and bucked the total apparel trend with only a 3% decline in that quarter. While still not positive growth, it is a sign that momentum is shifting. There are some important apparel categories that performed well in 2009. Those are: jeans +3.5%, dresses +2.3%, bras +1.1%, tights +2.4%, and men’s underwear tops +11%.