Today’s Discussion
• Informal Discussion Regarding:
– Size and Scope of Industry
– The Power of Promotional Products
– Promotional Products Awareness and Usage Study
– Creating Value and Differentiation
• Product Safety
• PPAI Benefits and Ways to Use Them
Who is PPAI
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10,700 members
6 dues-paying categories
$15,000 – $400,000,000
1 – 1,000 of workers
Varied go-to-market strategies
28 decorating/imprinting methods
Make, decorate or sell or help make,
decorate or sell
Visibility
Viability
Credibility
Community
The Trends
• Industry growth
Revenue in $ Billions
– Good news | bad news
2003
2004
– 3 years growth
– 2010 = $16.5 billion
– 2011 = $17.7 billion
– 2012 = $18.5 billion
2005
2006
2007
2008
2009
– 23,096 distributor companies
• 96% at $9 billion
• 4% at $9 billion
2010
2011
2012
0
10
20
2011 Supplier Revenue
Revenue in $ Billions
• 76% report less than $1 million
2003
–
–
–
–
2004
2005
2006
2007
2008
49% less than $250,000
26% between $250k – $1 million
20 % between $1 – $10 million
Only 5% more than $10 million
2009
2010
2011
0
10
20
– 96% of all supplier members report
less than $15 million dollars
– 4% report 38% of the industry
revenue
2011 Distributor Revenue
Revenue in $ Billions
• 91% report less than $1 million
2003
–
–
–
–
2004
2005
2006
2007
2008
2009
2010
2011
0
10
20
81% less than $250,000
14% between $250k – $1 million
4 % between $1 – $10 million
Only 1% report more than $10
million
The Trends
• Products
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Wearables rule 29%
Bags 8.73%
Writing instruments 8.63%
Drinkware 7%
Calendars 3.5%
– Computer products and
accessories
The Trends
• Programs
1.
2.
3.
4.
5.
6.
Brand awareness (2)
New customer generation (1)
Trade shows (4)
Public Relations (3)
Dealer/distributor programs (8)
Employee relations/events (5)
All between 12% - 9%
The Trends
• Top Buyers
– Education: schools, seminars
– Financial: banks, brokers
– Not for profit: charities,
churches
– Healthcare: hospitals, clinics
– Construction: building trades
Other Media
• Promotional Products Work!
– Growing faster than 11 of 14
other competitive media
• Cable TV
• Mobile Phone
• Internet
Media Method
2011
2012
% Chg
Direct Mail
50.0
51.1
2.2
Television
45.2
49.7
10.0
Newspaper
20.7
18.9
-8.5
Internet
31.7
36.6
15.0
Point-of-Purchase*
28.5
30.5
7.0
Cable TV
23.5
24.4
3.4
Consumer Magazines
21.7
21.1
-2.9
Promotional Products
17.7
18.5
4.4
Radio
14.1
14.3
1.5
Sports Marketing
12.2
13.0
6.0
Business Magazines
7.9
7.6
-4.8
Billboards
6.4
6.7
4.6
Product Placement
4.3
4.8
11.4
Mobile Phone Advertising
1.6
3.4
111.0
304.3
320.3
11.9
Total
* Estimated
PPW! Week 2014 - April 21 – 25
The Power of
Promotional Products
• 2012 ‘airport’ intercept study
– Follow-up to 1992, 1999,
2004
– Adult travelers at LaGuardia
– Own one promotional product
received in past 12 months
The Power of Promotional Products
2012 ‘Airport’ Intercept Study
– Promotional Product Recall
• Types and number of promotional products
recalled
– Promotional Products Usage
• Number of promotional products owned
• Why, how long and where and how often
– Relationship to Advertiser & Business
Impact
• How are promotional product received
• Impressions about advertisers before and
after receipt of promotional products
Frequency of Use
53% use
promotional
products once
a week or
more often
Length of Use
Time Among Those Keeping Promo Products for Up 2
Years
23%
For about a
month
29%
16%
For about six
months
13%
18%
7 to 12 months For more than a At least 2 years
year
60% keep
promotional
products for
up to two
years
Where They’re Kept
One in four
walk around
with a
promotional
product on
or with
themselves
Frequently Used
35% have
referred to
promotional
products for
contact
information
This is in addition to 100%
Brand Awareness
Impact on Perception
59% had a more favorable impression
of the advertiser after receiving a
promotional item
22%
37%
Significantly
More Favorable
Somewhat
More Favorable
37%
Neutral
1%
0.4%
Significantly
Somewhat
Less Favorable Less Favorable
Business Impact
55%
45%
Had done business
with the advertiser
BEFORE receiving
promo item
Had NOT done
business with the
advertiser BEFORE
receiving promo
item
of
these
of
these
85%
11%
Have done business
with the advertiser
AFTER receiving
promo item
Have done business
with the advertiser
AFTER receiving
promo item
Promotional
products have
a positive
correlation
with customer
retention and
acquisition
Value vs. Price
• Control the conversation
– Price should only be the
deciding factor when risk is
equal to ZERO
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Program design
Effectiveness
Safety
Delivery
Product quality
1. Preparation: Do your homework. They
resent questions that can easily be found
on the web
2. Simplicity: Make buying simple without
Contrary to popular belief,
customers are less interested in
price than in these six things.
B2B customers want the following
six things from the people who sell
to them:
being simplistic
3. Creativity: They have their own ideas.
They want new ideas that don’t exist in their
world
4. Loyalty: They risk their companies by
doing business with you. They want you
vested in success
5. Accessibility: They want you to get back
with them immediately
6. Accountability: The buck starts and
stops with you
Product Responsibility In the
Promotional Products Supply Chain
• This information is being furnished for
educational and informational purposes only.
The Promotional Products Association
International makes no warranties or
representations about specific dates, coverage
or application. Consult with appropriate legal
counsel about the specific application of the
law to your business and products.
Why should you embrace product
responsibility?
• We are in the brand protection business
• Compliance with Federal and state regulations
is not optional
• It can be a strategic advantage and increase
your value to your customer
When distributors become suppliers…
• A distributor who sources direct is considered
a manufacturer
• A distributor uses a contract decorator would
also be considered a manufacturer
“All substances are
poisons—the
difference is in the
dose.”
Paracelsus (1493-1541),
a Swiss alchemist
2007: Big problem with the dose
To protect the children and
control the dose…
• In 2008, Congress
passed the Consumer
Product Safety
Improvement Act
(CPSIA)
Know the Basics of the CPSIA
• Mainly Pertains to
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Children’s Products
Children Toys
Child Care Articles
Know the Basics of the CPSIA
• All children’s products need third party testing
for:
– Lead in substrate
– Lead in paint and surface coating
Know the Basics of the CPSIA
• For children’s toys and child care articles
– Six phthalates regulated
– Toy Safety Standard now mandatory
Know the Basics of the CPSIA
• A Children’s Product Certificate (CPC) is
required for all children’s products and must
be created by the manufacturer or importer
Know the Basics of the CPSIA
• Permanent Tracking Labels
– Mandatory for all children’s products
– Children’s apparel requires two if decoration done
at different time or by a different vendor
– Distributors responsible under CPSIA for same
requirements and obligations as “manufacturer” if
they purchase blank garments and have them
imprinted.
Compliance beyond CPSIA
• Federal regulations:
– FDA (particularly drinkware)
• California Proposition 65
• State regulations
– Cadmium
– Packaging
• International standards
• And more…
Product Responsibility
Product Responsibility
•No drawstrings
on children’s
upper outerwear!
•When you work
with a contract
decorator, you
become a
manufacturer – ask
the right questions!
•Think before you include a picture of a child
interacting with the item on your website or in your
advertising
•Even if the item is a general
use item, there may be
regulations beyond CPSIA
Resources
• PPAI: www.ppai.org
• Product Safety powered by PPAI:
http://www.ppai.org/insideppai/product-safety/
• Consumer Product Safety
Commission: www.cpsc.gov;
www.recalls.gov
• PPAI contact: Anne LardnerStone, AnneL@ppai.org
What We’re All About
PPAI is the industry’s preeminent not-for-profit
trade association
Our focus is on the strength of suppliers and
distributors, their interest, and the overall
health of the industry
Our goal is to help you grow your business,
expand your knowledge, and provide you with
the opportunities to be a part of the bigger
picture
We’re About Growing Your Business
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PPAI Research - Distributor and Industry Sales
PPAI Publications
Professional Development and Certifications
Industry Events
Savings on Business Services
PPAI Research
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Industry Sales Information
Business Practices within the Industry
Buyers of Promotional Products
Research Videos and Flyers You Can Use
End-Buyer Initiatives at www.Promoideas.org
PPAI Publications
• PPB Magazine – The Industry Magazine
• PPB Newslink – Weekly Electronic Newsletter
• Promotional Consultant Today – Daily
Electronic Newsletter Geared for distributors
• PPAI Navigator – Digital Industry Directory
including a Value Book of Supplier Coupons
PPAI Certification (at a glance)
Designation
Experience
Required
Points
Required
Exam
Recertification Designation
Required Required
Awarded
TAS
(Trained Advertising
Specialist)
<3 Years
25
N
N
Certificate of
Completion
CAS (Certified
Advertising
Specialist)
=3+ Years
75
Y
Y
Certification
MAS (Master
Advertising
Specialist)
=5+ Years
175
Y
Y
Certification
MAS+
(Master Advertising
Specialist Plus
=7+ Years
225
N
N
Certification
PPAI AllStar Lineup
More PPAI Events
NALC–North American Leadership Conference
Chicago, IL - August 11-13, 2013
PPAI Product Safety Summit
Chicago, IL - August 14-15, 2013
WLC–Women’s Leadership Conference
San Diego, CA - July 8-10, 2013
PPAI Business Partner Programs
Spend less-Save More!
Average distributor-savings of $3,200 per
year!
Visit www.ppai.org for a full listing
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Shipping Services
Artwork Services
Travel Services
Healthcare
•
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Financial Services
Office Services
Marketing Services
Product Testing
Power of Two – Power to You
PPAI Members get a $495 credit to access SAGE
Online and other SAGE products
Best part…it’s every year!
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Online or other SAGE products
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Seminar Series Special
3 for Free
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PPAI will pay for your first year’s membership with
your Regional Association
Questions
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