keys to success in marketing in today’s landscape market
TRANSCRIPT
Shake the Eight BallA candid look at the state of the landscape and lawn care industry.
Chuck BowenEditor and Associate PublisherLawn & Landscape
What we’ll cover today• The ‘average’ landscaper
• The state of the lawn and landscape industry nationwide
• Mobile and social trends
• Specific segment trends for the rest of 2015 and beyond
The ‘average’ landscaper• (Caveat: This person doesn’t exist.)
• But, in 2014 the average landscaper:• Employs 15 people (seasonal and year-round) • Pays himself $68,414• Pulls in net profit of 11 percent
• Does full service landscaping for mostly residential accounts
• The owner is the primary salesman, especially in a design/build business
• He’s also still working in a production capacity during the day and doing back-office work in the evenings and weekends
Impact of the Great Recession• Leaner (and meaner)
landscapers
• High profits and high stress
• More focus on the business
• Consolidation of the market
Landscapers go mobile• 8 out of 10 contractors use a smartphone for
work.
• About 60% of landscapers are on Facebook. The next biggest platform is Linkedin, and then Twitter.
• They’re using these devices to take photos and text with their employees and customers, as well as to access urgent information like the weather reports on the go.
6 key trends for 2015 and beyond1. Water, water, water
2. Labor challenges (H-2B vs. domestic)
3. Stress
4. Business systems/technology
5. M&A/private equity investment
6. Fuel (alternatives, ethanol and cost)
Trend #1 – water• Rates are going up
• It’s only getting drier
• Infrastructure is crumbling
• This is an opportunity
Source: 2015 Circle of Blue research
Trend #2 – labor
Trend #2 – labor• You need a recruiting and
retention program
• This requires investment of money and time for training
• What’s going on with H-2B? That’s a great question. Let me know if you have the answer.
Trend #3 – stress• Not new, but more openness to discuss it
• “My truck feels more like a prison every day.”
• Aging owners stuck with no place to turn
Trend #4 – technology• Software systems
• Taylor Milliken
• Cub Cadet and Bluetooth
• Exmark and Red technology
• Mowz/Plowz/Pros.com
Trend #5 – M&A• KKR is not LandCare by a long shot
• John Deere Landscapes on the move
• Opportunity for regionals to grow
Segment trends• Lawn Care
• Continued impact of Imprelis on branded product purchases
• Regulations (Clean Water Act, pollinators)• Adoption of other services/move away from pure
chemical apps• Contractors’ top concern: Price of inputs
Segment trends• Irrigation
• Drought challenges and opportunities• Smarter and smarter technology in the field• Influx of capital to renovate and update systems• Contractors’ top concern: Communication of value
of water management
Segment trends• Maintenance
• Propane/alternative fuels• Turf conversions in west • Commercial market coming back • Contractors’ top concern: productivity and uptime
Segment trends• Hardscapes
• Outdoor living spending growth• Patios, walls, pathways, fire pits • Great backlog numbers • Contractors’ top concern: Keeping up with demand
Marketing trends• Integration & Multiplatform approach
• Use print for branding and credibility• Use web display ads for branding and site traffic
(call to action)• Use digital direct (eblasts and enewsletters) for
specific messaging, data-gathering, targeting and measurability
• Use social to “echo” your program
Marketing trends• Brand alignment
• Align your display/messaging with content that creates awareness of your category
• Print alignment = adjacency or sponsorship• Digital alignment = sponsorship or content
marketing• Social alignment = collaborative programs
Marketing trends• Brand alignment
• Align your display/messaging with content that creates awareness of your category
• Print alignment = adjacency or sponsorship• Digital alignment = sponsorship or content
marketing• Social alignment = collaborative programs
Marketing trends• Examples
• Partnering to develop a campaign around a particular topic
• Category e-newsletters• Sponsored content series• Sponsored research programs• Cooperative social media initiatives• EOP programs
2016 Planning Tips• Multiplatform
• Mobile
• Print for branding, digital for messaging
• Collaborate
• Measure
Questions, comments, concerns? • Chuck Bowen
• 216-393-0227
• Pat Jones
• 216-393-0293